DAVE’s revenue climbed 45% year-over-year in the fourth quarter of 2025, fueled by a tiered fee structure introduced in March that increased average revenue per user by 35% to $18.50. The company reported total quarterly revenue of $82 million, up from $57 million a year earlier. This performance reflects strong customer uptake of short-term liquidity products, with new fee tiers capturing more value per transaction and boosting overall take-rate by 120 basis points.

Despite top-line strength, DAVE’s delinquency rate rose to 8.2% in the latest quarter, compared with 5.1% in Q4 2024. The company attributed the uptick to broader macroeconomic pressures on lower-income segments, where 60% of its user base resides. Charge-off rates increased to 4.5%, up from 2.8% a year earlier, leading analysts to warn that credit losses could erode profitability if economic headwinds persist.

DAVE projects full-year 2026 net income of $10 million, reversing a net loss of $15 million recorded in 2025. Management expects operating leverage from higher fee revenue and continued cost discipline to drive a positive EBITDA margin of 5% by year-end. However, consensus estimates have been trimmed to reflect the delinquency burden, with street forecasts now centering on $8 million in net income and a 4% EBITDA margin.

Investor surveys show 65% of institutional holders rate DAVE ’bearish’ due to credit quality concerns, while 20% remain neutral pending evidence of sustained loss mitigation. In response, the company is accelerating deployment of automated underwriting enhancements and plans to expand partnership channels with banks and credit unions. Management has set a target to reduce the delinquency rate below 6% by Q3 2026 while maintaining revenue growth above 30% annually.