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Neobank Dave's Q3 revenue jumps on new member acquisition

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$198 mln

Q3 Net Income

$64 mln

Q3 Adjusted EBITDA

$82 mln


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


Reuters Recommended Reads

  • Nov 3 - Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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