AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue grew 30% YoY to $170.8M, driven by 28% growth in processing and overdraft service fees on 17% higher transacting Members and $2.3B ExtraCash originations; net income declined to $6.7M from $9.0M due to $25.6M loss on warrant fair value changes.
Biggest Revenue Drivers
Service based revenue, net$160.0M+32% YoY
Processing and overdraft service fees ($144.9M, +28% YoY) benefited from 17% higher transacting Members, $2.3B ExtraCash volume, and removal of fee cap for certain cohorts; subscriptions surged 87% YoY to $15.1M on higher paying Members and June 2025 fee increase.
Transaction based revenue, net$10.7M+6% YoY
Driven by higher funding/withdrawal transaction fees and co-branded volume incentives; net interchange flat as card spend growth offset by interchange cost increases.
Biggest Revenue Drivers
Total revenue: $170.8M+30% YoY
Service based revenue, net$160.0M+32% YoY
Processing and overdraft service fees ($144.9M, +28% YoY) benefited from 17% higher transacting Members, $2.3B ExtraCash volume, and removal of fee cap for certain cohorts; subscriptions surged 87% YoY to $15.1M on higher paying Members and June 2025 fee increase.
Transaction based revenue, net$10.7M+6% YoY
Driven by higher funding/withdrawal transaction fees and co-branded volume incentives; net interchange flat as card spend growth offset by interchange cost increases.
Largest Expense Items
Provision for credit losses$28.8M+14% YoY
Increased by $3.5M on 17% higher transacting Members and $2.3B ExtraCash volume; underlying loss rates stable, now includes off-balance-sheet guarantee liability for Coastal-held receivables effective June 1, 2026.
Compensation and benefits$35.7M+35% YoY
Increase of $9.3M primarily from $8.1M higher stock-based compensation on performance-based RSU grants; includes salary, bonus, and benefits increases.
Advertising and activation costs$20.4M+32% YoY
Increased spend on Member acquisition and engagement; customer acquisition cost held flat at ~$19 while payback periods improved to under four months.
Processing and servicing costs$10.3M+44% YoY
Increased $3.1M primarily from cost increases on higher ExtraCash volume ($2.3B vs. $1.8B).
Margins: Gross margins compressed due to higher provision for credit losses (+14% YoY) and processing costs (+44%) scaling with volume. Operating expense growth of 31% outpaced revenue growth of 30%, with advertising up 32% and stock-based comp up 35%, demonstrating increased investment in Member acquisition and talent retention as company scales.
Watch Items from the Filing
DOJ litigation seeking injunctive relief and monetary damages for alleged FTC Act and ROSCA violations; motion to dismiss denied September 2025; company answered amended complaint October 2025. Accrual of $9.7M recorded as of June 30, 2026 for probable and estimable litigation contingencies.
Effective June 1, 2026, Coastal Community Bank originates and retains ~$93M ExtraCash receivables; company provides financial guarantee and purchases receivables >60 days past origination. Creates off-balance-sheet credit exposure and new funding cost structure via federal funds rate-based margin, increasing reliance on single bank partner.
Debt Facility ($75M outstanding at 8.9%) matures December 2026; no principal repayments made to date. Company is evaluating refinancing, extension, or repayment from available cash and operating cash flows. Refinancing uncertainty and potential rate increases on renewal.
Ongoing regulatory inquiries and subpoenas from Connecticut, Maryland, New York, and California regarding licensing, earned wage access product compliance, and marketing practices. DFPI in California has indicated intent to supervise the company as a 'covered person' under CCFPL, enabling examinations and potential enforcement action.
Provision for credit losses increased 54% YoY to $55.4M (H1 2026); provision as % of operating revenues grew despite stable underlying loss rates due to portfolio expansion and June 1 Coastal guarantee inclusion. Allowance for credit losses balance $40.9M reflects 12-day average ExtraCash term and seasonal/timing volatility.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Dave Inc./DE (DAVE): stock profile, AI score and financials
Dave Inc./DE (DAVE) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores DAVE at 79.9/100 on a composite quality score built from its SEC filings, placing it at rank #29 of 2,925 stocks — the top 1% of the AI-ranked universe. DAVE scores in the top quartile across balance sheet strength (99.3), institutional flow (95.3), free cash flow (95.2). Shareholder dilution risk is elevated at 23.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Dave Inc./DE reports quarterly revenue of $170.8M, net income of $6.7M, an operating margin of 8.6%. Top institutional holders of DAVE by reported 13-F value include BlackRock, Hood River Capital Management, Divisadero Street Capital Management, based on the most recent SEC filings. DAVE trades on the Nasdaq exchange and files with the SEC under CIK 1841408. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate DAVE daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Dave Inc./DE directly from SEC EDGAR.