Neobank Dave's Q3 revenue jumps on new member acquisition

Overview

• US neobank's Q3 revenue rose 31% yr/yr, driven by new member acquisition and ARPU growth

• Adjusted EBITDA for Q3 increased 39% yr/yr, with margin at 41%

• Company raised 2026 revenue, adjusted EBITDA and adjusted diluted EPS guidance

Outlook

• Dave raises 2026 revenue guidance to $746-$750 mln from $725-$735 mln

• Company lifts 2026 adj EBITDA forecast to $327-$330 mln from $315-$325 mln

• Dave expects 2026 adj diluted EPS of $17.45-$17.65, up from $17.00-$17.50

Result Drivers

• NEW MEMBER ACQUISITION - Co said record new member acquisition drove Q3 revenue growth

• ARPU EXPANSION - Co attributed revenue growth to continued expansion in average revenue per user

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Dave Inc. is $449.00, about 42.7% above its November 3 closing price of $314.72

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)