Dave vs. SoFi: Which Fintech Stock Reigns Supreme?

Dave, a fintech company, has outperformed the market in recent years and is expected to continue growing. The stock has crushed the market, and the company's growth is attributed to its innovative approach to personal finance management. As a finance expert, I would recommend considering Dave as a potential investment option, but it's essential to do your own research and consult with a financial advisor before making any investment decisions.

In the rapidly evolving fintech landscape, two prominent players have emerged as leaders: Dave (DAVE) and SoFi Technologies (SOFI). Both companies have demonstrated impressive growth, but Dave has been particularly notable for its market outperformance. This article aims to compare the two companies, focusing on their recent financial performance and growth potential.

Dave Inc. (DAVE) has been a standout performer in the fintech sector, delivering strong financial results and impressive stock growth. The company offers short-term, interest-free cash advances and budgeting tools through its mobile-first platform. According to recent data, Dave's stock has been growing due to its innovative services and robust financial performance [3].

In the second quarter of 2025, Dave reported adjusted earnings of 8 cents per share, beating estimates by 33.3% and more than doubling from the same period a year earlier. Revenues reached $858.2 million, surpassing estimates by 6.6% and growing 43.4% year over year. The company added a record 850,000 new members during the quarter, taking total membership to 11.7 million, a 34% annual increase. Notably, 35% of new products were opened by existing members, underscoring effective cross-selling strategies [3].

Dave's fee-based revenue reached $378 million, up 72% year over year, driven by origination fees, referral fees, interchange revenues, and brokerage fees. Annualized, Dave now generates more than $1.5 billion in fee-based income, reducing reliance on interest-based earnings and aligning with a capital-light growth model. Adjusted EBITDA climbed 80.6% year over year to $249.1 million, representing a 29% margin, an improvement of 600 basis points [3].

SoFi Technologies (SOFI) is another successful fintech company, known for its digital financial services and lending platforms. The company has experienced a meteoric rise, with its stock surging over 222% in a year [1]. This growth is attributed to SoFi's ability to deliver strong financial results, diversify its revenue streams, and manage credit risk effectively.

In the second quarter of 2025, SoFi reported record revenue of $854.9 million, representing a 44% increase from the same period last year. Adjusted EBITDA climbed 84% to $249.1 million, representing a healthy 29% margin. Net income came in at $97 million, translating to an 11% margin, while earnings per share increased to $0.08 from just $0.01 a year earlier [1].

A significant part of SoFi's growth stems from its expansion beyond its traditional lending business. Non-lending operations, which include fee-based services, generated $472 million in revenue, representing a 74% year-over-year increase. Fee-based income alone hit a record $378 million, climbing 72% [1].

SoFi's Financial Services segment performed well, with second-quarter net revenue more than doubling to $363 million, while contribution profit nearly tripled to $188 million, with margins expanding to 52% from 31% a year ago. Net interest income rose 39% to $193 million, driven by a growing base of member deposits, while noninterest income jumped more than fourfold to $169 million [1].

While both Dave and SoFi have shown impressive growth and financial performance, Dave's recent market outperformance and strong stock growth make it a compelling option for investors. Dave's focus on short-term, interest-free cash advances and budgeting tools has resonated with customers, leading to significant revenue growth and a diversified revenue model.

SoFi, on the other hand, has demonstrated a strong ability to diversify its revenue streams and manage credit risk effectively. The company's expansion into non-lending operations and its focus on fee-based services have driven significant growth. However, Dave's innovative services and robust financial performance have positioned it as a more attractive buy option for investors with a long-term outlook.

References:
[1] https://finance.yahoo.com/news/222-surge-sofi-stock-headed-202648465.html
[2] https://fintech.global/2025/08/26/kira-raises-6-7m-to-power-ai-driven-fintech-products/
[3] https://www.nasdaq.com/articles/dave-vs-sofi-which-fintech-disruptor-offers-more-growth-potential-now