Dave Gains Buy Coverage from UBS After 47% Revenue, 57% EBITDA Growth
DAVE•Investment firm UBS initiated buy coverage on Dave after Q1 2026 revenues jumped 47% and adjusted EBITDA rose 57%, with user growth 22% year-over-year. The company posted a record-low 1.69% delinquency rate, raised 2026 revenue guidance and drew a $111.6 million stake from Divisadero Capital.
1. UBS Initiates Buy Coverage
UBS initiated buy coverage on Dave, highlighting significant revenue and profitability gains in Q1 2026 that underscore the company's robust financial health and growth prospects.
2. Strong User and Financial Growth
Dave reported Q1 2026 revenues up 47% year-over-year, with adjusted EBITDA rising 57%, driven by a 22% increase in new user sign-ups, supporting raised revenue guidance for 2026.
3. Improved Risk Management and Investor Backing
Delinquency on advances fell to a record-low 1.69% in Q1, aided by CashAI v5.5 risk management technology. Hedge fund Divisadero Capital boosted its holding by buying $111.6 million of shares, making Dave one of its top four investments.
