Dave Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Dave's financial results for the first quarter ended March 31st, 2026. Joining us today are Dave's CEO, Mr. Jason Wilk, and the company's CFO and COO, Mr. Kyle Bauman. By now, everyone should have access to the first quarter, 2026 earnings press release, which was issued today after the market closed. The release is available in the investor relations section of Dave's website at investors.dave.com. This call will also be available for webcast replay on the company's website. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Certain comments made during this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. The company undertakes no obligation to revise or update any forward-looking statements except as required by law. The company's presentation also includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, non-GAAP gross profit, non-GAAP gross margin, adjusted earnings per share, and compensation expense excluding stock-based compensation as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You will find reconciliation tables and other important information in the earnings press release and Form 8K furnished with the SEC. I would now like to turn the call over to Dave's CEO, Mr. Jason Wilk. Please go ahead.

Good afternoon and thank you all for joining us.

2026 is off to a strong start at Dave. Revenue grew 47% year over year to $158.4 million and adjusted EBITDA grew 57% to $69.3 million at a 44% margin. On the strength of this print and what we're seeing thus far in Q2, we are raising full year guidance across all three dimensions. There are three key takeaways I want every investor to take away from this call. The first is credit performance resulting from Cash AI v5.5 drove our lowest Q1 loss rate on record. Our 28 days past due metric, which we believe investors should use to assess true credit performance at Dave, is down to 1.69%, marking a one basis point improvement year on year and down 85 basis points from three years ago. This result underscores how much control we have over our credit outcomes as a result of years of significant investment and training in our models. The second is we once again demonstrated the durability of our growth algorithm to sustain mid-teens member growth and low double-digit ARPU growth. Despite the usual Q1 seasonal tax refund season and expanded refunds compared to years past, we were still able to grow ARPU 24% year-over-year and multi-transacting members by 18%. We now have a total of 2.99 million MPMs, which is still a small fraction of the overall 185 million customer TAM and we believe we're still early in our journey to drive incremental ARPU. Lastly, we launched our new pay-in-for-credit product. We officially put our newest product in the hands of a small group of members to trial. I want to congratulate the team on their hard work for reaching this milestone. Turning to our growth pillars, starting with member acquisition, we added 695,000 new members in Q1, up 22% year-over-year, at a customer acquisition cost of $18. That CAC is flat year over year and improved 11% sequentially, which is better than expected given Q1 is typically our most challenging quarter for marketing efficiency due to tax refund dynamics reducing credit demand. Our gross profit payback period improved in nearly three months in Q1, which gives us increasing confidence to continue scaling member acquisition throughout 2026. Moving to our second pillar, engagement through extra cash. Originations reached $2.1 billion, up 37% year-over-year, driven by growth in MTMs and average origination size. MTMs grew 18% as a result of improving conversion and reactivation alongside strong retention rates. Average extra cash size increased 10% due largely to impacts from Cashier ID 5.5, which was deployed in late Q3 of last year. Sequentially, origination size was moderately lower at 212, reflecting the impact of higher tax refunds late in the quarter. That dynamic has already begun to reverse. Average size rebounded to 214 in April. We expect origination sizes to improve with continued V5.5 model optimizations and the forthcoming V6 model that we expect to begin testing within the next couple of months. Moving to our third pillar, deepening engagement. Dave's debit card spend was $534 million in Q1, up 9%. Growth here continues to be attributed to the natural synergy of Extra Cash and DaveCard, as there have been no new initiatives aimed at debit volume growth, while we focus our efforts on new credit products to drive deeper engagement. Before turning it over to Kyle, I want to provide a few strategic updates, starting off with our new Pay-In-For card product, which we're officially calling DaveFlex. DaveFlex is designed as a responsible alternative to traditional credit cards, with balances paid back in up to four simple installments aligned with your paycheck date. No compound interest, no late fees, and no credit check. We believe this product is competitively positioned against the predatory fees of subprime credit cards and the heavy friction associated with BNPL since DaveFlex can be used at any online or offline merchant without the need to reapply with each use. DaveFlex supports each element of our growth pillars as we expect it to be a driver of customer acquisition, expand our credit capabilities, and deepen engagement of existing members. Importantly, DaveFlex uses Cash AI to power 100% of the underwriting, giving us a meaningful edge over incumbent credit card products that rely on FICO, which we believe will lead to greater customer access and superior credit performance. As promised, we began testing DaveFlex with existing members last month. Early engagement has been encouraging, and we plan to share more once we have more data on performance. We do not expect DaveFlex to contribute meaningful revenue in 2026, and it is not embedded in our guidance. Our focus this year is to test, learn, and optimize member lifetime value before scaling in 2027. We believe products like Extra Cash and Dayflex, which leverage short-duration credit to drive share of wallet, is what really differentiates Dayflex from our scaled neobank competitors. The bulk of our roadmap is stacked on our responsible short-duration credit initiatives, which we believe will further enable us to achieve our medium-term growth algorithm. As such, we have updated our strategic statement to better capture our focus. which is the day of the U.S. Neobank pioneering innovative credit products for everyday Americans. Next, regarding our partnership with Coastal Community Bank, which remain on track to begin transitioning extra cash receivables to the new off-balance sheet funding structure this summer, which will begin unlocking meaningful liquidity and reduce our cost of capital. Lastly, on the DOJ matter, we have no material update and continue to vigorously defend our position. In closing, 2026 is off to a tremendous start, We are executing well against our stated growth algorithm and credit performance is excelling. I want to thank our team who make all this possible. With that, I will turn the call to Kyle.