Key Highlights

  • Third quarter Revenue was USD 197.7 million against an estimate of USD 191.89 million and USD 150.7 million last year.
  • Diluted EPS was USD 3.30 against an estimate of USD 4.09, and Net Income was USD 63.8 million.
  • Adjusted EBITDA was USD 81.5 million against USD 58.6 million; subscription revenue was USD 17.3 million.
  • Cash, investments and restricted cash totaled USD 315.1 million, and the USD 75.0 million Debt Facility was repaid October 8.

Dave (NASDAQ:DAVE) reported third quarter revenue of USD 197.7 million. Processing and overdraft service fees, net, were USD 168.9 million, subscriptions were USD 17.3 million and transaction based revenue was USD 11.4 million. Diluted EPS was USD 3.30 against an estimate of USD 4.09, compared with USD 6.34 in the third quarter of 2025, when it recorded an income tax benefit.

Members, ExtraCash and Revenue Mix

The company attributed the growth in service fees to an approximate 18% increase in average monthly transacting Members, ExtraCash originations of approximately USD 2.5 billion against approximately USD 2.0 billion, and an average ExtraCash amount of USD 218 against USD 207. It also cited changes to its fee structure and the removal of the maximum overdraft service fee for certain Member cohorts in the second quarter. Subscription revenue rose 74%, which management linked to more paying Members and the June 2025 fee increase for new Members.

Customer Acquisition cost was approximately USD 22, up 14%, with payback periods under four months. Dave Debit Card spend was USD 533 million, a 5% increase.

Costs, Credit and Funding Changes

Operating expenses were USD 149.7 million against USD 104.8 million. The provision for credit losses was USD 36.5 million against USD 29.8 million, which the company tied to Volume growth rather than a significant change in underlying credit quality. Compensation and benefits were USD 43.3 million against USD 24.8 million, with stock-based compensation of USD 22.0 million against USD 7.2 million.

Net income was USD 63.8 million against USD 92.1 million, with an income tax provision of USD 10.7 million against a benefit of USD 33.6 million. The company deployed its CashAI v6.0 Underwriting model across all ExtraCash originations by quarter end.

Since June 1, ExtraCash receivables are originated and retained on Coastal's balance sheet, with Dave holding a commitment to purchase them and providing a financial guarantee. On November 3, a second amendment allowed up to USD 325 million of ExtraCash receivables and USD 25 million of credit card receivables to be held on Coastal's balance sheet.

Cash, Notes and Repurchases

Cash and cash equivalents were USD 269.9 million, investments were USD 43.3 million and restricted cash was USD 1.8 million, for a total of USD 315.1 million against USD 123.2 million at year end 2025. The March offering of USD 200.0 million of 0% convertible senior notes due April 1, 2031 provided net proceeds of USD 192.7 million.

The company repurchased 1,010,312 shares for approximately USD 211.9 million in the nine months, including 18,080 shares for about USD 6.0 million in the third quarter. About USD 88.1 million remained under the USD 300.0 million repurchase program authorized in February. It repaid the USD 75.0 million debt facility on October 8 from cash on hand and terminated it.

Figures Worth Comparing

Revenue of USD 197.7 million sits alongside diluted EPS of USD 3.30, adjusted EBITDA of USD 81.5 million and total cash, investments and restricted cash of USD 315.1 million.

Management named the completed debt facility repayment, the transition of existing Members to Coastal that it said would be substantially completed in early 2027, and the November amendment to the program agreement. It also noted that the 2031 Notes were not convertible at the holders' option during the third quarter and are not convertible during the fourth quarter.