On May 26, 2026, investment firm UBS initiated coverage on Dave (NASDAQ: DAVE) with a "Buy" rating when the fintech stock was priced at $228.46. Dave is a financial technology (fintech) company that provides banking services and cash advances. It competes with other fintech firms like Sezzle for customers needing short-term financial solutions.
The positive rating is supported by Dave's significant user growth. In its first-quarter 2026 results, the company reported a 22% year-over-year increase in new members, reaching 695 thousand. Its base of monthly transacting members also grew by 18%, indicating that more users are actively using its services.
Financially, Dave demonstrated strong performance with a 47% rise in revenues and a 57% increase in adjusted EBITDA. Adjusted EBITDA is a metric used to measure a company's operating profitability. This growth suggests the company's core business is becoming more efficient and profitable, as highlighted by Zacks.
The company also improved its risk management. Its 28-day delinquency rate, which tracks late payments on advances, fell to a record low of 1.69%. This occurred even as its ExtraCash originations grew by 37% year-over-year. This performance is credited to its CashAI v5.5 technology, leading Dave to raise its 2026 revenue guidance.
Confidence in Dave is also seen from large investors. According to a recent SEC filing, hedge fund Divisadero Street Capital Management increased its investment by purchasing an additional 379,232 shares. This transaction made Dave the fund's fourth-largest holding, with a total value of $111.56 million.
