Investing
Dave Stock Falls 17.6% After Q3 Earnings and Higher Outlook
Dave stock fell 17.6% on November 5, 2026 after Q3 revenue rose 31% to $198 million and guidance was raised, as adjusted EPS slipped and credit costs rose.
Dave stock (NASDAQ: DAVE) fell 17.6% in early trading on November 5, 2026, the day after the US neobank reported third quarter 2026 results. Revenue rose 31% from a year earlier to $197.7 million, and the company raised its full-year outlook.
What Dave reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Revenue | $197.7M | $150.8M | +31% |
| Adjusted EBITDA | $81.5M | $58.7M | +39% |
| Net income | $63.8M | $92.0M | -31% |
| Adjusted EPS | $4.39 | $4.45 | -1% |
| Provision for credit losses | $36.6M | $29.9M | +22% |
Adjusted EBITDA is profit before interest, taxes, depreciation and some non-cash or one-off items. Adjusted EPS is profit per share after similar exclusions. Dave raised its 2026 guidance (its own forecast): revenue to $746 million to $750 million from $725 million to $735 million, adjusted EBITDA to $327 million to $330 million from $315 million to $325 million, and adjusted EPS to $17.45 to $17.65 from $17.00 to $17.50.
Non-GAAP gross margin, revenue minus credit losses and transaction costs as a share of revenue, was 70%, up from 69% a year earlier but down from 72% in the second quarter. CFO Kyle Beilman said faster-than-expected funding costs with Coastal Community Bank explained about 100 basis points (one percentage point) of that drop, with credit-loss provisions accounting for most of the rest. New members rose 35% to 1,135,000.
Why the stock fell 17.6%
The drop was about three and a half times a typical day's swing for the stock. Two details in the filings stand out against the headline growth. Adjusted net income fell 7% to $60 million, and Dave said it had recalibrated its credit-loss forecast because loss rates had not improved as much as its earlier forecast assumed. The top of the adjusted EPS guidance range also rose by only 15 cents.
What to watch next for Dave stock
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Whether the fourth quarter 28-day past due rate comes in below 2.00%, as the CFO expects.
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Whether fourth quarter non-GAAP gross margin lands above second quarter levels, as guided.
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The broader rollout of Dave Flex, its Pay in Four credit card, planned for 2027.
FAQ
Why did Dave's net income fall when revenue grew 31%?
The year-earlier quarter included a $33.6 million income tax benefit, while this quarter carried a $10.7 million tax charge. Stock-based compensation also rose to $22.0 million from $7.2 million.
How much cash does Dave have?
Dave held $315 million in cash, investments and restricted cash at September 30, 2026, up from $254 million at June 30. In early October it repaid the $75 million owed under its Victory Park Management debt facility.
Sources
This article is for information only and is not investment advice.