DAVE is Set to Report Q4 Earnings: Buy, Sell or Hold the Stock?

Dave Inc. DAVE will report fourth-quarter 2025 results on March 2, after market close.

The consensus estimate for total earnings is pinned at $3.5 per share, a 71.6% upsurge from the year-ago quarter’s actual.

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $164 million, hinting at 62.5% growth on a year-over-year basis. One estimate for the quarter has moved upward in the past 60 days, with no southward revision.

DAVE has an impressive earnings surprise history. In the four trailing quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 74.7%.

Dave Showcases Higher Chances of Posting Q4 Earnings Beat

Our model predicts an earnings beat for Dave this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

DAVE has an Earnings ESP of +9.07% and flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DAVE’s Q4 Driver: Effective Customer Centric Strategy

Dave witnessed continuous growth in its membership, reaching 843,000 in the third quarter of 2025. The ability to attract customers is heavily dependent on its simplified fee model and strong credit risk management tool, CashAI v5.5. The company has logged consistent enhancements in monetization and conversion rates, ensuring that member retention is high. Driven by a streamlined customer-first strategy, we expect the company to have experienced strong growth in the fourth quarter of 2025.

Dave Stock Beats Industry & S&P500, Valuation Impressive

Over the past year, Dave shares have surged 66.5%, outperforming the industry’s 7% return and the Zacks S&P 500 composite’s 20% rally. It has outperformed its industry peers, LiveRamp Holdings, Inc. RAMP and Agora, Inc. API. LiveRamp and Agora have lost 11.9% and 26.3%, respectively.

1-Year Share Price Performance

In terms of valuation, Dave trades at a trailing 12-month price-to-earnings ratio of 11.81X, which is significantly lower than its industry’s 21.95X. While the company is priced at a premium relative to LiveRamp’s 9.16X, it is inexpensive compared with Agora’s 29.85X.

P/E F12M

DAVE’s Investment Considerations

Dave targets the underbanked or underserved population, facing difficulty in operating under the traditional banking system. The expansion of the neobank market and the surge in popularity of mobile banking have provided DAVE a path to capture a larger chunk of the market pie if it plays its cards right.

The company has enhanced its credit risk machinery by implementing CashAI v5.5. In doing so, customer engagement has improved, as evidenced by a lofty 49% year-over-year increment in ExtraCash origination in the third quarter of 2025, leading to a 63% hike in its top line. It is impressive how the company managed to maintain high credit quality despite a hike in ExtraCash origination, compelling management to raise the top and bottom-line growth expectations on the back of CashAI v5.5.

DAVE’s impressive growth trajectory raised its profitability standard. In the third quarter of 2025, the company’s return on equity stood at 77.7%, significantly above the industry average of 15.6%. Similarly, Dave’s 48.8% return on invested capital surpassed the industry average of 7.7%.

This outstanding performance was further enhanced by a strong balance sheet, which held $92 million in cash as of the end of September 2025 against no current debt. It provided strength to its liquidity position as evidenced by a current ratio of 8.7 that surpassed the industry average of 1.6.

Add DAVE to Your Portfolio This Earnings Season

Dave’s staggering growth trajectory, disciplined risk management and attractive valuation provide a compelling case for “Strong Buy” before its earnings release. The company displays a higher chance of earnings beat, which is firmly grounded on the fact that it averages an earnings surprise of 74.7% over the last four quarters.

The company's superior efficiency is reflected in the form of higher ROE and ROIC than the industry, vital to high-growth fintechs. CashAI v5.5, which is the fuel behind the credit risk mitigation engine, hints at sustained scalability of its model.

DAVE remains underpriced compared with the industry despite its stock rallying past it over the past year. An undervalued stock with a solid balance sheet presents a high-conviction play for investors seeking to test the waters of the fintech domain.

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This article originally published on Zacks Investment Research (zacks.com).

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