Dave Inc. Rides AI Wave: CashAI Fuels Record Profitability Surge in 2025

Dave Inc. (DAVE) has delivered impressive financial results in the third quarter of 2025, with adjusted net income surging 193% year-over-year and revenues reaching $150.8 million—a 63% jump from the same period last year. Behind this momentum lies CashAI, the company’s AI-powered credit assessment engine that’s reshaping how the fintech giant evaluates borrower eligibility and manages risk exposure.

The Technology Driving Growth

CashAI’s latest iteration, v5.5, has proven instrumental in enhancing ExtraCash originations while simultaneously lowering delinquency metrics. The platform’s AI-backed framework assesses credit risk with greater precision, enabling Dave to scale its lending operations without compromising asset quality. This balance between growth and risk management has been the company’s competitive edge.

ExtraCash originations reached $2 billion in Q3 2025, representing 49% year-over-year growth—continuing a streak of consistent expansion. The first and second quarters of 2025 recorded 46% and 51% YoY growth respectively, demonstrating sustained momentum in the core business.

Delinquency Improvements Signal Operational Excellence

The updated CashAI v5.5 has delivered tangible improvements in credit quality metrics. Dave’s average 28-day delinquency rate declined 7 basis points sequentially to 2.33% in Q3 2025. By September alone, this metric had improved further to 2.19%, showcasing the algorithm’s enhanced ability to identify and approve lower-risk borrowers.

Management also introduced a new 28-day days past due metric during the latest earnings call, which dropped 11 basis points sequentially to 2.15% and stood at 2.04% in September. These figures underscore CashAI’s effectiveness in filtering credit risk before it materializes into delinquencies.

Customer Economics and Path to Profitability

Improved conversion rates enabled by CashAI’s intelligent underwriting have kept customer acquisition costs steady at $19 over the past two quarters—a notable achievement in a competitive fintech landscape. This operational leverage, combined with higher origination volumes, has translated into adjusted EBITDA expansion.

For the full year 2025, Dave projects adjusted EBITDA of $215-$218 million compared to the previous guidance of $180-$190 million, signaling management’s confidence in the company’s profitability trajectory.

Stock Performance and Valuation Metrics

DAVE’s stock has rallied 131% over the past 12 months, substantially outpacing the industry’s 7.9% gain. The stock has also outperformed comparable companies like First Advantage (down 31.7%) and Futu Holdings (up 101.3%) during the same period.

From a valuation perspective, Dave trades at a 12-month forward P/E of 14.56, below the broader industry average of 25.27. While this multiple appears reasonable compared to Futu Holdings’ 17.15, Dave commands a premium versus First Advantage’s 10.75. The company’s Value Score rating of D reflects growth expectations embedded in its current valuation.

Forward Outlook and Analyst Sentiment

The Zacks Consensus Estimate for Dave’s 2025 and 2026 earnings has been raised 24.7% and 12% respectively over the past two months, signaling analyst optimism. Revenue guidance for the current quarter has been raised to $544-$547 million from the prior view of $505-$515 million, indicating strong near-term momentum.

With CashAI v5.5 delivering early evidence of risk mitigation success and supporting customer acquisition efficiency, Dave appears positioned to sustain its financial trajectory. The company currently carries a Zacks Rank of #1 (Strong Buy), reflecting the research community’s positive stance on the stock’s near-term prospects.