Why Shares of Dave Are Surging This Week

By Bram Berkowitz – Mar 6, 2026 at 12:46PM ESTKey PointsDave reported strong fourth-quarter 2025 earnings and expects solid revenue growth over the next few years.The stock has been volatile since going public via a special purpose acquisition company.The company's ExtraCash product extends short-term credit of $500 to consumers, which is typically repaid in a week or two.Since the close of trading last week, shares of the neobank Dave (DAVE 4.34%) traded roughly 7.2% higher, as of 12:46 p.m. ET Friday. Shares had risen as much as 11% on Thursday amid a packed week for the company, during which it reported earnings and announced a convertible debt raise. Nearly a full round trip Since going public through a special purpose acquisition company (SPAC) at the very start of 2022, Dave has seen its shares crushed, only to have made a strong comeback that began in 2024. The stock is still down 33% since its original SPAC days, but investors who bought in mid-2022 or 2023 have made incredible gains. Image source: Getty Images. The company, which primarily issues small-dollar, short-term loans of $500 or less, typically repaid within a few weeks, reported fourth-quarter and full-year earnings on Monday. In 2025, Dave grew revenue 60%, net income by 238%, and adjusted EBITDA by 162% year over year. In 2026, Dave is guiding to $700 million in operating revenue at the midpoint of guidance, which implies about 26.5% growth. The company is also guiding for about 10% growth in adjusted diluted earnings per share in 2026. ExpandNASDAQ: DAVEDaveToday's Change(-4.34%) $-9.47Current Price$208.74Key Data PointsMarket Cap$2.9BDay's Range$204.34 - $214.9152wk Range$65.46 - $286.45Volume13KAvg Vol529KGross Margin72.60% On Dave's earnings call, management also said it believes the 2026 revenue growth projections are sustainable over the next few years, with an opportunity to outperform. Finally, Dave also announced this week that it plans to raise $150 million through convertible senior notes due in 2031. Part of the proceeds will be used to buy back stock. Much improvement, but some cyclical risks Previously, I was not a big fan of Dave's model, which relied on voluntary tips from customers, who used its much cheaper alternative to traditional bank overdrafts. However, this new ExtraCash product is much more interesting. The company examines real-time customer cash flow data to underwrite and can likely adjust criteria much more quickly because of the extremely short-term nature of its loans. Loss rates are quite low for this product category. Trading at about 14 times forward earnings, the valuation is quite reasonable if the company can generate the growth it claims. But the business is likely somewhat cyclical, as its customer base could struggle in a recession. I think customers can buy the stock, but should start by nibbling and monitoring progress for a few quarters before taking a larger position.Read NextFeb 6, 2026 •By Joe TenebrusoWhy Dave Stock Jumped TodayFeb 7, 2022 •By Bram BerkowitzShares of Dave Have Surged 17% This Year. Here's Why I Don't Think the Surge Will LastJan 19, 2022 •By Bram BerkowitzWhy I'm Taking Goliath Over the Digital Banking App DaveJan 13, 2022 •By Bram BerkowitzWhy Shares of Dave Exploded TodayJan 12, 2022 •By Bram Berkowitz3 Things to Know About the Mark Cuban-Backed Fintech DaveAbout the AuthorBram Berkowitz is a contributing Motley Fool stock market analyst covering financials, technology, consumer goods, and macroeconomic trends.

Before The Motley Fool, Bram worked in equity research covering bank stocks and as a reporter for local publications. He holds FINRA Series 7 and 66 licenses, as well as a bachelor’s degree in business with a minor in economics from Syracuse University.TMFBramX@BramBerkoStocks MentionedDaveNASDAQ: DAVE$208.74(-4.34%)-$9.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.