Here's How Dave's Ecosystem Strategy Supports Robust User Engagement

Dave Inc. DAVE ended the third quarter of 2025 with 13.5 million members, representing 17% year-over-year growth. It acquired 843,000 members in this quarter. The company registered a 17% year-over-year increase in monthly transacting members to 2.8 million. This customer retention was primarily due to rising Dave Card spend, which rallied 25% year over year to $510 million.This lofty growth in customers did not deteriorate the company’s customer acquisition (CAC), and it was at $19 flat with the preceding quarter. Despite a 22.3% sequential increase in advertising and activation costs, an unchanged CAC reflects an improved conversion rate, alluding to an effective marketing strategy. A 49% year-over-year increase in ExtraCash origination highlights the success of DAVE’s marketing campaigns.CashAI v5.5, Dave’s proprietary underwriting engine, had a significant share in the 20% upsurge in average ExtraCash size. It successfully improved wallet share without compromising its credit quality. By facilitating the rise in ExtraCash originations, CashAI v5.5 was able draw in reliable users, in turn, driving higher retention and conversion.Behind this excellent growth narrative lies DAVE’s new fee model, which consists of a flat 5% fee on all ExtraCash transactions, with a minimum $5 fee and a $15 cap. This is not only a simplified fee model but also cheaper than legacy banks. This new fee model makes it easier and cheaper for the underbanked/underserved population to access credit, thus improving customer tenure.DAVE’s Price Performance, Valuation & EstimatesThe stock has skyrocketed 146.4% in the past year, significantly outperforming its peers, AppLovin APP and Coherent Corp. COHR, and the industry as a whole. The industry has gained 14%. AppLovin and Coherent have surged 92.2% and 73.7%, respectively.1-Year Share Price Performance Image Source: Zacks Investment Research From a valuation standpoint, DAVE trades at a 12-month forward price-to-earnings ratio of 17.07, lower than AppLovin’s 72.08 and Coherent’s 32.19.P/E - F12M Image Source: Zacks Investment Research DAVE and Coherent have a Value Scoreof D, while AppLovin carries an F.The Zacks Consensus Estimate for FUTU’s earnings for 2025 and 2026 has increased 24.6% and 11.4%, respectively, over the past 60 days. Image Source: Zacks Investment Research DAVE currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE): Free Stock Analysis Report Coherent Corp. (COHR): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks