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Can Dave's Flex Card Capture More of Members' Everyday Spending?
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Key Takeaways
Dave is testing Flex, a Pay-in-4 card alternative aimed at capturing more everyday spending.
Flex has no compound interest, late fees or credit check and can be used across merchants.
Dave has not included Flex in 2026 guidance as it tests and optimizes before scaling in 2027.
Dave Inc. (DAVE - Free Report) is trying to turn a cash-flow relationship into a fuller credit relationship. The company already has scale: more than 14 million members, 2.99 million monthly transacting members in the first quarter of 2026 and a large target market of roughly 185 million Americans who need help covering expenses between paychecks.
The base business gives Dave a strong starting point. First-quarter revenues rose 47% year over year to $158.4 million, while adjusted EBITDA increased 57% to $69.3 million. ExtraCash originations climbed 37% to $2.1 billion, showing that members are still using Dave for short-term liquidity even after tax-refund season softened demand.
Dave Flex is the next step in that plan. The product is a Pay-in-4 card alternative with no compound interest, no late fees and no credit check. Unlike many BNPL tools, it can be used across merchants without a fresh application each time, and Dave is underwriting it through CashAI.
The wallet-share case is simple: ExtraCash is usually tied to needs like rent, groceries and gas, while Flex could move Dave into more regular discretionary purchases. Management said early testing began in April and engagement was encouraging, but Flex is not included in 2026 guidance because Dave wants to test, learn and optimize before scaling in 2027.
Credit performance will decide how large this becomes. Dave’s 28-day past-due rate was 1.69%, its lowest first-quarter level, while ARPU rose 24% year over year. The Coastal Community Bank funding structure should also help, with Dave expecting more than $200 million in liquidity once originations transition.
Can New Products Drive Growth at SoFi and Upstart?
SoFi Technologies (SOFI - Free Report) is growing by expanding new tools such as SoFi Coach and SoFi Small Business Loans, which offer financing from $2,500 to $250,000 with funding as soon as 24 hours after approval. SoFi’s Loan Platform Business also has personal-loan funding commitments totaling more than $3.6 billion, helping SoFi scale with less balance sheet risk.
Upstart Holdings (UPST - Free Report) is growing through newer products beyond personal loans, including Upstart Cash Line, auto refinance, auto retail and HELOCs. Upstart’s HELOC product offers online rate checks with no credit-score impact, helping Upstart reach more borrowers and lending partners.
DAVE’s Price Performance, Valuation and Estimates
Over the past three months, DAVE has surged more than 111%, outperforming the industry’s growth of 17.7%.
Image Source: Zacks Investment Research
DAVE trades at 6.23X forward 12-month sales per share versus 2.89X for the Zacks sub-industry. It carries a Value Score of D. The stock is no longer cheap, but it looks fair for a fintech growing revenues around 28% to 30%, producing strong adjusted EBITDA and buying back stock.
Image Source: Zacks Investment Research
Over the past 60 days, earnings estimates for both 2026 and 2027 have been revised upward, signaling a bullish outlook from analysts.
View the Zacks #1 Rank List
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Can Dave's Flex Card Capture More of Members' Everyday Spending?
Key Takeaways
Dave Inc. (DAVE - Free Report) is trying to turn a cash-flow relationship into a fuller credit relationship. The company already has scale: more than 14 million members, 2.99 million monthly transacting members in the first quarter of 2026 and a large target market of roughly 185 million Americans who need help covering expenses between paychecks.
The base business gives Dave a strong starting point. First-quarter revenues rose 47% year over year to $158.4 million, while adjusted EBITDA increased 57% to $69.3 million. ExtraCash originations climbed 37% to $2.1 billion, showing that members are still using Dave for short-term liquidity even after tax-refund season softened demand.
Dave Flex is the next step in that plan. The product is a Pay-in-4 card alternative with no compound interest, no late fees and no credit check. Unlike many BNPL tools, it can be used across merchants without a fresh application each time, and Dave is underwriting it through CashAI.
The wallet-share case is simple: ExtraCash is usually tied to needs like rent, groceries and gas, while Flex could move Dave into more regular discretionary purchases. Management said early testing began in April and engagement was encouraging, but Flex is not included in 2026 guidance because Dave wants to test, learn and optimize before scaling in 2027.
Credit performance will decide how large this becomes. Dave’s 28-day past-due rate was 1.69%, its lowest first-quarter level, while ARPU rose 24% year over year. The Coastal Community Bank funding structure should also help, with Dave expecting more than $200 million in liquidity once originations transition.
Can New Products Drive Growth at SoFi and Upstart?
SoFi Technologies (SOFI - Free Report) is growing by expanding new tools such as SoFi Coach and SoFi Small Business Loans, which offer financing from $2,500 to $250,000 with funding as soon as 24 hours after approval. SoFi’s Loan Platform Business also has personal-loan funding commitments totaling more than $3.6 billion, helping SoFi scale with less balance sheet risk.
Upstart Holdings (UPST - Free Report) is growing through newer products beyond personal loans, including Upstart Cash Line, auto refinance, auto retail and HELOCs. Upstart’s HELOC product offers online rate checks with no credit-score impact, helping Upstart reach more borrowers and lending partners.
DAVE’s Price Performance, Valuation and Estimates
Over the past three months, DAVE has surged more than 111%, outperforming the industry’s growth of 17.7%.
Image Source: Zacks Investment Research
DAVE trades at 6.23X forward 12-month sales per share versus 2.89X for the Zacks sub-industry. It carries a Value Score of D. The stock is no longer cheap, but it looks fair for a fintech growing revenues around 28% to 30%, producing strong adjusted EBITDA and buying back stock.
Image Source: Zacks Investment Research
Over the past 60 days, earnings estimates for both 2026 and 2027 have been revised upward, signaling a bullish outlook from analysts.
Image Source: Zacks Investment Research
At present, DAVE sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.