Dave Inc. (DAVE): A Bull Case Theory

We came across a bullish thesis on Dave Inc. on X.com by The Brilliant Budget. In this article, we will summarize the bulls’ thesis on DAVE. Dave Inc.'s share was trading at $217.16 as of September 9th. DAVE’s trailing and forward P/E were 51.64 and 18.83 respectively according to Yahoo Finance.

$DAVE (ticker: $DAVE) was founded by CEO Jason Wilk out of frustration with traditional bank overdraft fees, creating an app that offers small, interest-free cash advances while using AI to predict cash flow shortfalls. Targeting underserved and underbanked Americans, the platform has expanded its offerings over time to include credit-building tools, job-finding services, and fee-free checking accounts with debit cards, attracting investors such as Mark Cuban who resonate with its mission. $DAVE generates revenue primarily through three streams: subscription fees, service fees, and interchange revenue.

Its $1/month subscription provides access to budgeting and credit-building tools, showing 14% year-over-year member growth and offering stable, recurring income. The core service, ExtraCash, allows advances up to $500 with fees between $5–$15, supported by AI-driven underwriting. Despite serving higher-risk members, $DAVE maintains low delinquency rates—2.40% for 28-day delinquencies versus 3.49% for comparable unsecured borrowers—demonstrating strong credit management. Interchange revenue grows as members use $DAVE cards, creating synergy with ExtraCash usage. The business model deepens relationships with members, positioning $DAVE as a primary financial institution and enabling strong per-member profitability.

Margins are increasing as fixed costs decline relative to revenue, and the addressable market continues to expand with financially stressed Americans. While competition exists from platforms like $CHYM and Cash App, $DAVE’s niche, combined with AI-driven risk management and growing adoption, positions it for continued growth. Risks remain from unsecured lending and macroeconomic pressures, but strong member engagement, traction, and recent guidance increases underscore a compelling opportunity for both investors and users, balancing growth potential with manageable downside.

Previously we covered a bullish thesis on Dave Inc. (DAVE) by Next 100 Baggers in May 2025, which highlighted its niche serving underserved Americans, AI-driven underwriting, and strong unit economics. The company's stock price has appreciated approximately 12% since our coverage as growth and monetization trends played out. The Brilliant Budget shares a similar thesis but emphasizes revenue streams and per-member profitability.

Dave Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held DAVE at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the potential of DAVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.