Dave Inc./DE
For the period ended Mar 31, 2026. Filed May 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
DAVE$278.59+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001193125-25-264819
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001193125-26-206446
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 184 current paragraphs.
61 unchanged; 45 reworded; 78 added; 63 removed; 11 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (78)
Current report
Customers value our products, as demonstrated by more than 800,000 App Store reviews with an average 4.8-star rating. Dave has earned multiple Best Place to Work recognitions from Built In over the past several years, reflecting our ongoing investment in becoming an exceptional workplace.
Current report
Member Acquisition and Engagement
Current report
Revenue growth depends on efficiently acquiring new Members and driving product cross-sell. During the three months ended March 31, 2026, customer acquisition cost improved to approximately $18 while payback periods have improved to nearly three months, our fastest on record, reflecting our focus on directing acquisition spend toward the highest return opportunities.
Current report
ARPU expansion is primarily driven by ExtraCash volume and the adoption of Dave Checking by Members. Dave Debit Card actives generate approximately 1.8x higher monthly ARPU than non-card users and 11 times the average monthly transaction volume, indicating materially higher engagement and lifetime value. Dave Debit Card spend was $534 million in the first quarter of 2026, a 9% increase year-over-year. Our mid-2025 subscription fee increase from $1 to $3 for new members improved customer lifetime value without materially affecting conversion or retention. Subscription revenue grew 105% year-over-year in the first quarter of 2026.
Current report
Credit Performance
Current report
ExtraCash profitability depends on approving creditworthy Members while maintaining disciplined delinquency and write-off rates. In September 2025, we deployed CashAI v5.5, which nearly doubles the feature set of prior versions. Thus far, results demonstrate improved risk ranking, higher average approval amounts, and lower delinquency rates. CashAI has leveraged insights from over 200 million ExtraCash originations, a proprietary cash flow dataset that we believe provides a structural advantage in real-time credit decisioning. The short average term of ExtraCash (approximately 12 days) creates rapid feedback loops, enabling iterative model refinement.
Current report
Economic conditions, particularly unemployment and consumer spending, materially influence Members' settlement capacity. Our real-time underwriting continuously evaluates transaction-level data to detect changes in income, spending, and employment. However, severe economic deterioration could materially increase delinquencies and write-offs despite model refinements.
Current report
Funding and Interest Rate Sensitivity
Current report
ExtraCash receivables funding costs are a material operating expense. Our variable-rate Debt Facility exposes us to interest rate risk, and elevated rates have increased borrowing costs, reducing ExtraCash unit economics.
Current report
In March 2025, we entered into the Program Agreement with Coastal under which Coastal issues and maintains deposit accounts and sponsors access to debit and ACH networks. As of the fourth quarter of 2025, all new Members are being onboarded to Coastal, and we expect the transition of existing Members to be substantially finalized by the end of 2026. This partnership is expected to reduce our funding obligations and free up capital as we transition ExtraCash receivables to an off-balance-sheet structure. Coastal will earn an amount equal to a variable rate based on the federal funds rate plus a margin while such receivables are on Coastal's balance sheet. Elevated rates have increased borrowing costs, which will reduce ExtraCash unit economics.
Current report
Higher interest rates create dual impacts: increased funding costs reduce gross margins, while elevated rates may increase Member demand for supplemental liquidity but simultaneously reduce settlement capacity. We actively manage funding costs through bank partner relationships and debt facility negotiations.
Current report
We compete with traditional banks and credit unions, neobanks such as Chime and Varo Bank, short-term credit and earned wage access providers such as Earnin, MoneyLion, and Brigit, and broader fintech platforms such as Affirm, Cash App, and Venmo. Many competitors possess greater financial resources, longer operating histories, and larger customer bases.
Current report
We believe we compete effectively based on: our superior value proposition of providing up to $500 in short-term credit (in the form of discretionary overdraft through a bank partner) with no interest, late fees, or credit check; proprietary underwriting technology through CashAI; strong customer satisfaction reflected in our App Store rating; an integrated product ecosystem driving higher engagement and lifetime value; and structural cost advantages through efficient, technology-driven operations.
Current report
Competitive pressures could increase marketing spend or reduce competitive positioning. Our long-term success depends on continued product differentiation and technological leadership. See "Item 1. Business" and "Item 1A. Risk Factors" included in our Annual Report for additional information.
Current report
Macroeconomic Conditions
Current report
Our business is sensitive to macroeconomic conditions. Interest rate changes directly impact funding costs and Members' settlement capacity.
Current report
Unemployment affects Members' ability to repay ExtraCash. Consumer spending patterns and inflation influence cash flow and credit demand.
Current report
Our real-time underwriting adapts to changing conditions through continuous transaction-level analysis. However, severe macroeconomic deterioration, including recession, significant unemployment increases, or persistent inflation, could materially impact our business, financial condition, and results of operations.
Current report
Our business is subject to moderate seasonal trends, with ExtraCash demand and Dave Checking transaction volumes generally correlating to consumer spending cycles, including increased activity during the holiday season and around tax refund periods. These seasonal patterns may result in fluctuations in our quarterly and annual results of operations.
Current report
Regulatory Environment
Current report
We operate in a complex and evolving regulatory environment. Regulatory developments and increased supervisory scrutiny of bank-fintech partnerships could result in changes to our product structures, increased compliance costs, or new operational requirements. We continue to monitor these developments. See "Item 1. Business—Regulatory Environment" and "Item 1A. Risk Factors" for additional discussion.
Current report
Recent Developments
Current report
On April 9, 2026 we reached a significant product development milestone with a controlled market launch of Dave Flex, a general purpose credit card integrating buy-now-pay-later functionality. The initial release has been extended to a limited subset of members to establish a foundational dataset spanning card usage and transaction volume, credit quality and delinquency trends, repayment behavior, and overall member satisfaction and engagement. This data-driven approach reflects management's commitment to disciplined product scaling. We expect to leverage performance data from this phase to validate key economic assumptions, refine risk management frameworks, and determine the appropriate pace of subsequent expansion. Dave Flex remains in an early stage, and future results will depend on, among other factors, the outcomes observed during this initial testing period.
Current report
Transaction based revenue, net
Current report
Operating Expenses
Current report
Other (Income) Expenses
Current report
Provision for Income Taxes
Current report
Provision for income taxes reflects federal and state income taxes and changes in our valuation allowance against deferred tax assets.
Current report
Transaction based revenue, net
Current report
Operating expenses
Current report
Advertising and activation costs—Advertising and activation costs totaled $14.3 million for the three months ended March 31, 2026, compared to $11.9 million for the three months ended March 31, 2025. The increase of $2.3 million, or 20%, was primarily driven by our continued investment in Member acquisition and engagement, with spend refined to capitalize on seasonal trends and high-return opportunities. Customer acquisition cost improved to approximately $18 while payback periods improved to nearly three months, reflecting disciplined allocation of marketing resources toward efficient growth.
Current report
an increase in salaries, bonuses, benefits and insurance, and employer taxes of $0.1 million; offset by
Current report
an increase in legal expenses of $2.9 million, primarily attributable to higher litigation and settlement-related costs compared to the prior period; and
Current report
Other (income) expenses
Current report
Provision for income taxes
Current report
Provision for income taxes for the three months ended March 31, 2026 increased by approximately $7.2 million, or 142%, compared to the three months ended March 31, 2025. The increase was primarily due to higher income reported for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current report
We have historically financed our operations through cash generated from operations, equity financings, borrowings under our credit facility, and proceeds from the Business Combination. In March 2026, we completed the private offering of the 2031 Notes, which significantly increased our available liquidity. Throughout 2025 and the three months ended March 31, 2026, we achieved consistent profitability and positive operating cash flow, which has strengthened our liquidity position and reduced our reliance on external financing.
Current report
As of March 31, 2026, our cash and cash equivalents, investments, and restricted cash totaled $177.8 million, compared to $123.2 million as of December 31, 2025. The increase was primarily driven by net proceeds received from the 2031 Notes offering and cash generated from operations, partially offset by $186.7 million in share repurchases, $17.3 million used to purchase capped call transactions, and $7.4 million in debt issuance costs.
Current report
Sources and Uses of Cash
Current report
Our primary sources of liquidity include:
Showing the first 40 of 78 passages. Open the source sections for the rest.
Removed paragraphs (63)
Previous report
Customers value our products, as demonstrated by more than 744,000 App Store reviews with an average 4.8-star rating as of October 2025. Our business model is built on transparency and customer alignment and building relationships with our Members that drive positive outcomes for both them and our business.
Previous report
At the core of our success is a world-class team dedicated to delivering on our mission. Dave has been recognized by Built In as a Best Place to Work for five consecutive years, reinforcing our commitment to both our Members and employees.
Previous report
Comparability of Financial Information
Previous report
Our future results of operations and financial position may not be comparable to historical results as a result of the consummation of the Business Combination.
Previous report
Member Growth and Activity
Previous report
We have made significant investments in our platform, and our business is dependent on continued Member growth, as well as our ability to offer new products and services and generate additional revenues from our existing Members using such additional products and services. Member growth and activity are critical to our ability to increase our scale, capture market share and earn an attractive return on our technology, product and marketing investments. Growth in Members and Member activity will depend heavily on our ability to continue to offer attractive products and services and the success of our marketing and Member acquisition efforts.
Previous report
Product Expansion
Previous report
We aim to develop and offer a best-in-class financial services platform with integrated products and services that improve the financial well-being of our Members. We have invested and continue to make significant investments in the development, improvement and marketing of our financial products and are focused on continual growth in the number of products we offer that are utilized by our Members.
Previous report
We face competition from several financial services-oriented institutions. In our reportable segment, as well as in potential new lines of business, we may compete with more established institutions, some of which have more financial resources. We compete at multiple levels, including competition among other financial institutions and lenders in our ExtraCash business, competition for deposits in and debit card spending from our Dave Banking product from traditional banks and digital banking products and competition for subscribers to our personal financial management tools. Some of our competitors may at times seek to increase their market share by undercutting pricing terms prevalent in that market, which could adversely affect our market share for any of our products and services or require us to incur higher member acquisition costs.
Previous report
Concentration
Previous report
We rely on agreements with Evolve Bank & Trust, our primary bank partner, and Coastal Community Bank to provide ExtraCash and other deposit accounts, debit card services and other transaction services to us and our Members. See Part II, Item 1A. “Risk Factors” for additional information.
Previous report
Industry Trends/General Economic Conditions
Previous report
We expect economic cycles to affect our business, financial performance, and financial condition. Macroeconomic conditions, including, but not limited to, regulatory uncertainty, fluctuating interest rates, inflation, tariffs, unemployment rates, consumer sentiment and market volatility may impact consumer spending behavior and consumer demand for financial products. Although business operations have not been materially impacted as of the date of this report, our business, financial condition, results of operations and prospects may be adversely affected due to the ongoing nature of these macroeconomic factors. Interest rates have remained elevated over the last two years, which has increased the costs of borrowing on our Debt Facility. Higher interest rates also often lead to higher payment obligations, which may reduce the ability of Members to repay their ExtraCash and, therefore, lead to increased delinquencies, write-offs and decreased recoveries. We also believe that higher interest rates may increase demand for ExtraCash as consumers seek additional sources of liquidity to help them fund higher costs of living. Additionally, higher levels of unemployment could adversely impact Members’ income levels and, hence, the ability of Members to repay, which could lead to deterioration in credit performance. We believe that our underwriting engine is well positioned to evaluate credit risk in a higher unemployment environment as it analyzes bank account transaction data to assess, nearly in real-time, changes in Members’ income, spending, savings, and employment status. We also believe that demand for ExtraCash may increase in periods of higher unemployment as consumers seek additional sources of liquidity to help them meet their financial obligations.
Previous report
Provision (benefit) for income taxes consists of the federal and state corporate income taxes accrued on income resulting from the sale of our services.
Previous report
Historical loss rates used in provision assumptions increased moderately for the three months ended September 30, 2025, reflecting expected shifts in collection performance and higher realized loss rates during the period compared to the prior year quarter. Changes in these historical loss rates, as well as actual collection metrics, directly affect both the allowance for credit losses and the corresponding provision. All uncollectible ExtraCash receivables are written off against the allowance for credit losses, reducing the allowance accordingly.
Previous report
Advertising and activation costs—Advertising and activation costs totaled $18.9 million for the three months ended September 30, 2025, compared to $14.9 million for the three months ended September 30, 2024. The increase of $4.0 million, or 27%, was primarily driven by strategic marketing investments aimed at efficiently acquiring and engaging new Members, supported by increased seasonal activity during the quarter. Spending levels increased from the summer marketing period, reflecting sustained campaign momentum into early fall. We continued to emphasize performance-driven marketing execution, utilizing advanced measurement and attribution tools to optimize budget allocation. Enhanced channel optimization, creative testing, and real-time performance monitoring supported disciplined resource deployment focused on maintaining efficiency and maximizing return on marketing investment.
Previous report
a decrease in legal expenses of $1.3 million primarily attributable to $2.5 million in lower settlement-related expenses, partially offset by an increase in general legal and litigation expenses of $1.2 million compared to the prior period. The current period includes approximately $10.9 million in litigation and settlement-related expenses, which were partially offset by approximately $5.0 million in related insurance receivables; and
Previous report
a decrease in charitable contributions of $1.3 million due to the elimination of the Member tipping option during February 2025; offset by
Previous report
Interest expense—Interest expense totaled $1.8 million for the three months ended September 30, 2025, compared to $2.0 million for the three months ended September 30, 2024. The decrease of $0.2 million, or 9%, was primarily driven by an overall decline in interest rates.
Previous report
Provision (benefit) for income taxes for the three months ended September 30, 2025 decreased by approximately $34.0 million, or (9,119)%, compared to the three months ended September 30, 2024. The decrease was primarily due to the release of $27.4 million of our valuation allowance on deferred tax assets, as a discrete tax benefit during the three months ended September 30, 2025, and the increase in stock-based compensation deductions as a result of our Company’s appreciated stock price.
Previous report
Results of Operations
Previous report
Comparison of the nine months ended September 30, 2025 and 2024
Previous report
Operating revenues
Previous report
Service based revenue, net—
Previous report
Tips
Previous report
Tips totaled $7.5 million for the nine months ended September 30, 2025, representing a decrease of $41.8 million, or 85%, compared to $49.3 million for the nine months ended September 30, 2024. The decline was primarily due to the elimination of the Member tipping option in February 2025.
Previous report
Subscriptions
Previous report
Subscription revenue totaled $24.8 million for the nine months ended September 30, 2025, an increase of $6.7 million, or 37%, compared to $18.1 million for the nine months ended September 30, 2024. The increase was primarily attributable to the growth in the number of paying Members on our platform, in addition to subscription fee increases that took place during June 2025.
Previous report
Provision for credit losses—The provision for credit losses was $65.7 million for the nine months ended September 30, 2025, compared to $38.0 million for the nine months ended September 30, 2024, resulting in an increase of $27.8 million, or 73%. This increase reflects the anticipated impact of year-over-year growth in ExtraCash volume, continued expansion of our Member base, and credit performance trends consistent with the portfolio’s expected maturation. Loss rates during the quarter increased moderately, consistent with expectations given portfolio maturation, growth dynamics, and our strategic emphasis on gross profit optimization.
Previous report
The period-over-period increase in provision expense comprises two principal drivers aligned with management’s expectations and historical seasonality. Provision expense for ExtraCash receivables aged over 120 days and those deemed uncollectible increased by $11.0 million, attributable to higher receivable volumes and loss timing consistent with a growing Member base and maturing loan portfolio. Provision expense related to ExtraCash receivables aged 120 days and under increased $16.7 million, reflecting increased outstanding balances and periodic elevation in loss rates that occur seasonally. In aggregate, these factors reflect the anticipated impact of portfolio expansion, the weighted average ExtraCash balance increasing from $166 to $202, and the rise in total ExtraCash origination volume from $3.6 billion to $5.3 billion for the nine months ended September 30, 2024 and 2025, respectively.
Previous report
Processing and service costs—Processing and service costs totaled $23.6 million for the nine months ended September 30, 2025 compared to $23.4 million for the nine months ended September 30, 2024. The increase of $0.2 million, or 1%, was primarily driven by increases in ExtraCash origination volume from $3.6 billion to approximately $5.3 billion, partially offset by cost savings due to price reductions from our processors and rebates from our card network partners.
Previous report
Advertising and activation costs—Advertising and activation expenses totaled $46.3 million for the nine months ended September 30, 2025, compared to $38.7 million for the nine months ended September 30, 2024. The increase of $7.6 million, or 19%, was primarily driven by continued investment in marketing initiatives designed to efficiently acquire and engage new Members, combined with planned spending adjustments reflecting seasonal demand patterns across the year. In particular, advertising outlays continued to increase into the early fall compared to the summer periods to capture heightened customer activity for ExtraCash and other growth products, supported by tailored campaign timing and channel optimization strategies. Marketing deployment remained data-driven and responsive to seasonal shifts in consumer engagement, with resource allocation guided by real-time performance insights and evolving demand trends. We continue to focus on balancing marketing intensity in high-demand periods with disciplined cost management during lower-activity intervals in an effort to maximize efficiency and return on investment.
Previous report
Compensation and benefits—Compensation and benefits expenses totaled $78.5 million for the nine months ended September 30, 2025, compared to $79.0 million for the nine months ended September 30, 2024. The decrease of $0.5 million, or 1%, was primarily attributable to the following:
Previous report
a decrease in stock-based compensation of $4.2 million, primarily due to the vesting of certain performance-based restricted stock units during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2025, in addition to reductions in stock-based compensation expense related to restricted stock units and stock options granted in prior years that have fully vested; offset by
Previous report
an increase in payroll related costs of $2.9 million, primarily due to increased compensation, employer related taxes and performance bonuses during the nine months ended September 30, 2025; and
Previous report
Technology and infrastructure—Technology and infrastructure expenses totaled $8.8 million for the nine months ended September 30, 2025, compared to $8.4 million for the nine months ended September 30, 2024. The increase of $0.4 million, or 6%, was primarily driven by increased investment levels in supporting the reliability, security, and scalability of our systems. Management continues to focus on efficiency and operational resilience in technology-related spend, ensuring that resources are aligned with business growth, cybersecurity, and customer needs.
Previous report
Other operating expenses—Other operating expenses totaled $23.8 million for the nine months ended September 30, 2025, compared to $26.1 million for the nine months ended September 30, 2024. The decrease of $2.3 million, or 9%, was primarily attributable to the following:
Previous report
a decrease in charitable contributions of $2.7 million due to the elimination of the Member tipping option during February 2025; and
Previous report
a decrease in amortization expenses of $0.3 million related to increases in capitalized costs relating to internally developed software; offset by
Previous report
an increase in legal expenses of $0.1 million primarily attributable to a $2.3 million increase in general legal and litigation expenses, partially offset by $2.2 million in lower settlement-related expenses compared to the prior period. The current period includes approximately $12.8 million in litigation and settlement-related expenses, which were partially offset by approximately $5.0 million in related insurance receivables.
Showing the first 40 of 63 passages. Open the source sections for the rest.
Reworded paragraphs (45)
Previous wording
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the notes related thereto which are included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q. Certain information contained in the discussion and analysis set forth below includes forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2025 (the “Annual Report”), our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the notes related thereto which are included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q. Certain information contained in the discussion and analysis set forth below includes forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on March 2, 2026 (the “Annual Report”), and this Quarterly Report on Form 10-Q.
Previous wording
Dave was launched in 2017 to provide a faster, more transparent, and lower-cost alternative to traditional financial institutions, particularly for those living paycheck to paycheck. Inspired by the story of David vs. Goliath, we set out to challenge legacy banking by leveraging technology to expand financial access and improve consumer financial health. Through our mobile-first platform, we deliver innovative financial products designed to help underserved consumers manage their money more effectively. Our mission is to level the financial playing field by providing intuitive, transparent, and accessible solutions that empower our Members to navigate life’s financial challenges with confidence.
Current wording
Dave was founded in 2017 to provide a faster, more transparent, and lower-cost alternative to traditional financial institutions for Americans living paycheck to paycheck. Through our mobile-first platform, we deliver innovative financial products designed to help underserved consumers manage their money more effectively. Our mission is to level the financial playing field by providing intuitive, transparent, and accessible solutions that empower our Members to navigate life's financial challenges with confidence.
Previous wording
We have engineered a purpose-driven platform designed to deliver on our mission, making a significant impact across the stakeholder groups we serve. Since our inception, over 18 million Members have signed up for the Dave app, with nearly 14 million having used at least one of our products. We have provided Members with nearly $20 billion in ExtraCash, offering critical liquidity when they need it most. To further support our communities, we have donated over $23 million to charity and important causes since inception.
Current wording
Since inception, over 20 million Members have signed up for the Dave app, with nearly 15 million having used at least one of our products. We have provided Members with over $24 billion in ExtraCash, offering critical liquidity when they need it most, and have donated over $25 million to charity and important causes.
Previous wording
The U.S. financial system has historically failed to address the needs of the millions of Americans who are living paycheck to paycheck. According to the Financial Health Network (“FHN”) in 2025, approximately 185 million Americans are classified as financially “coping” or “vulnerable” representing 69% of the U.S. population, up from 66% in 2021. An October 2025 report by PYMNTS also found that 69% of U.S. consumers were living paycheck to paycheck, up from 66% a year earlier. This market includes both young and financially challenged individuals who have trouble managing cash flow, have minimal savings, regularly overdraft, and pay high fees for access to financial services. FHN research estimates there is approximately $43 billion of fees paid annually for access to basic checking services, including account maintenance fees, overdraft fees and ATM fees and that financially vulnerable and coping populations pay over $225 billion in annual fees and interest for short-term credit. We believe these insights are supported by a Dave study of our Members which reveals that traditional financial institutions charge consumers between $300-$400 of fees annually for access to basic checking services. We also believe these trends underscore a growing need for better financial solutions and illustrate the depth of our total addressable market (“TAM”), which we estimate to be approximately 185 million Americans that do not have access to affordable and effective banking solutions.
Current wording
According to the Financial Health Network in 2025, approximately 185 million Americans, representing 69% of the U.S. population, are classified as financially "coping" or "vulnerable," up from 66% in 2021. A February 2026 PYMNTS report found that 67% of U.S. consumers were living paycheck to paycheck, up from 57% in 2021. This population pays approximately $43 billion annually in basic checking fees and over $225 billion in annual fees and interest for short-term credit, according to FHN research. We estimate our total addressable market to be approximately 185 million Americans who do not have access to affordable and effective banking solutions.
Previous wording
We believe that these high costs are the result of the cost structure of incumbents. With expensive brick-and-mortar bank branch networks, antiquated technology, large employee bases, and inefficient customer acquisition strategies, legacy institutions have significant costs to serve their customers, which drives the high price that customers have to pay for access to their services. By leveraging world-class technology and harnessing the power of data and artificial intelligence, we believe that we have dramatically reduced the costs to serve customers in this market. Through this structural advantage, we are able to provide increased access to banking and credit products at lower costs, resulting in a much stronger value proposition to our Members.
Current wording
We believe these high costs reflect the cost structure of incumbents. Legacy institutions with brick-and-mortar networks, antiquated technology, and inefficient customer acquisition strategies have significant costs to serve, which they pass on to customers. By leveraging technology and AI, we have dramatically reduced our cost to serve, enabling us to provide banking and credit products at lower costs with a stronger value proposition.
Previous wording
Our future operating results and cash flows are dependent upon a number of opportunities, challenges and other factors, including Member growth and activity, product expansion, competition, industry trends and general economic conditions.
Current wording
Our future operating results and cash flows depend on Member growth and activity, product expansion, competition, industry trends, and general economic conditions.
Previous wording
During the three months ended June 30, 2025, we revised the presentation of certain items within its condensed consolidated statement of operations. These changes have been applied retrospectively to all periods presented and did not impact previously reported net income or earnings per share.
Current wording
During the second quarter of 2025, we revised the presentation of certain items within our condensed consolidated statement of operations. These changes have been applied retrospectively to all periods presented and did not impact previously reported net income or earnings per share.
Previous wording
Service based revenue, net primarily consists of optional processing fees, optional tips, overdraft service fees and subscriptions charged to Members, net of processor-related costs associated with ExtraCash disbursements. Service based revenue, net also consists of lead generation fees from our Side Hustle advertising partners and revenue share from our surveys partner. We discontinued optional tips from our business model in February 2025.
Current wording
Service based revenue, net primarily consists of processing fees, optional tips, overdraft service fees and subscriptions charged to Members, net of processor-related costs associated with ExtraCash disbursements. Service based revenue, net also consists of lead generation fees from our Side Hustle advertising partners and revenue share from our surveys partner. We discontinued optional tips and optional processing fees from our business model in February 2025.
Previous wording
We classify our operating expenses into the following seven categories:
Current wording
We classify our operating expenses into the following six categories:
Previous wording
Other operating expenses primarily include charitable commitments, depreciation and amortization of property and equipment and intangible assets, legal fees and settlements, rent, sales tax-related costs, office expenses, public relations, professional services, travel and entertainment, and insurance. These costs generally reflect our investments in infrastructure, business development, risk management, and internal controls. As such, they may fluctuate based on strategic priorities and are not always directly correlated with revenue or transaction volume.
Current wording
Other operating expenses primarily include legal fees and settlements, depreciation and amortization of property and equipment and internally developed software, charitable contributions, travel and entertainment, office and occupancy costs, insurance, sales tax and other taxes, computer expenses, licenses and fees, dues and subscriptions, and other general and administrative costs. These costs generally reflect our investments in infrastructure, business development, risk management, and administrative operations, and may vary period to period based on operational needs and strategic initiatives.
Previous wording
Other (income) expenses consist of interest income, interest expense, gain on extinguishment of debt, changes in fair value of earnout liabilities and changes in fair value of warrant liabilities.
Current wording
Other (income) expenses consist of interest income, interest expense, changes in fair value of earnout liabilities and changes in fair value of warrant liabilities.
Previous wording
Processing and overdraft service fees, net of processing and servicing costs associated with ExtraCash originations, totaled $129.2 million for the three months ended September 30, 2025, representing an increase of $70.5 million, or 120%, compared to $58.7 million for the three months ended September 30, 2024. The increase was primarily driven by an approximate 17% increase in average monthly transacting Members, an increase in total ExtraCash origination volume from approximately $1.4 billion to approximately $2.0 billion, a rise in the average ExtraCash amounts that increased from $172 to $207 period over period, and increases to our fee structure that took place during February 2025. In addition, both the average processing and overdraft service fees and percentage of Members who elected to expedite ExtraCash disbursements increased modestly during the current period. We expect processing and overdraft service fees to continue to increase in line with growth in ExtraCash volume and Member engagement.
Current wording
Processing and overdraft service fees, net of processing and servicing costs associated with ExtraCash originations, totaled $133.6 million for the three months ended March 31, 2026, representing an increase of $50.1 million, or 60%, compared to $83.4 million for the three months ended March 31, 2025. The increase was primarily driven by an approximate 18% increase in average monthly transacting Members, an increase in total ExtraCash origination volume from approximately $1.5 billion to approximately $2.1 billion, a rise in the average ExtraCash amounts that increased from $192 to $212 period over period and increases to our fee structure that took place during February 2025. In addition, both the average processing and overdraft service fees increased modestly during the current period. We expect processing and overdraft service fees to continue to increase in line with growth in ExtraCash volume and Member engagement.
Previous wording
Tips decreased $18.3 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the elimination of the Member tipping option in February 2025.
Current wording
Tips decreased $7.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the elimination of the Member tipping option in February 2025.
Previous wording
Subscription revenue totaled $10.0 million for the three months ended September 30, 2025, an increase of $3.6 million, or 57%, compared to $6.3 million for the three months ended September 30, 2024. The increase was primarily attributable to the growth in the number of paying Members on our platform, in addition to subscription fee increases that took place during June 2025.
Current wording
Subscription revenue totaled $13.9 million for the three months ended March 31, 2026, an increase of $7.1 million, or 105%, compared to $6.8 million for the three months ended March 31, 2025. The increase was primarily attributable to the growth in the number of paying Members on our platform, in addition to subscription fee increases for new Members that took place during June 2025.
Previous wording
Transaction based revenue, net, was $31.8 million for the nine months ended September 30, 2025 an increase of $6.2 million, or 24%, compared to $25.6 million for the nine months ended September 30, 2024. The increase was primarily driven by higher interchange revenue, resulting from the growth in Members engaging with our Checking Product, as well as increased card spend and transaction volume, which rose approximately 25% period over period. Additionally, transaction based revenue, net increased due to maintenance fees on inactive accounts and fees earned from higher Members' funding and withdrawal-related transactions. These increases were partially offset by a $0.2 million increase in interest due to Members.
Current wording
Transaction based revenue, net, was $10.8 million for the three months ended March 31, 2026, an increase of $0.7 million, or 7%, compared to $10.1 million for the three months ended March 31, 2025. The increase was primarily driven by interchange revenue resulting from the growth in Members engaging with our Checking Product and increased card spend and transaction volume, which rose approximately 9% period over period. Additionally, transaction based revenue, net increased primarily due to fees earned from higher Members' funding and withdrawal-related transactions, maintenance fees on inactive accounts, and volume incentives from our card network partners. These increases were partially offset by a slight decrease in ATM revenue due to temporarily reduced fee rates, as well as a slight increase in interest due to Members.
Previous wording
Provision for credit losses—The provision for credit losses was $29.8 million for the three months ended September 30, 2025, compared to $13.7 million for the three months ended September 30, 2024, resulting in an increase of $16.2 million, or 118%. This increase reflects expected growth in ExtraCash volume, continued expansion of the Member base, and credit performance trends aligned with the portfolio's maturation. Loss rates during the quarter increased moderately, consistent with expectations given portfolio maturation, growth dynamics, and our strategic emphasis on gross profit optimization.
Current wording
Provision for credit losses—The provision for credit losses was $26.6 million for the three months ended March 31, 2026, compared to $10.6 million for the three months ended March 31, 2025, resulting in an increase of $16.0 million, or 151%. This increase reflects period-over-period growth in ExtraCash volume, continued expansion of our Member base, and credit performance trends consistent with the portfolio's expected maturation and our strategic emphasis on optimizing unit-level profitability.
Previous wording
The period-over-period increase in provision expense comprises two principal drivers consistent with anticipated portfolio dynamics. Provision expense for ExtraCash receivables aged over 120 days and those deemed uncollectible increased by $9.1 million, reflecting higher receivable volumes and loss timing in line with a growing Member base and the expected seasoning of the receivables portfolio. Provision expense related to ExtraCash receivables aged 120 days and under increased $7.1 million, driven primarily by higher outstanding balances and the anticipated loss patterns characteristic of the quarter. These increases correspond to a 17% rise in average transacting Members, an increase in average ExtraCash amounts from $172 to $207, and growth in total ExtraCash origination volume from approximately $1.4 billion to $2.0 billion for the three months ended September 30, 2024 and 2025, respectively.
Current wording
The year-over-year increase comprises two principal drivers. The provision for ExtraCash receivables aged over 120 days and those deemed uncollectible increased by $13.0 million, driven by higher receivable volumes and loss timing consistent with a growing Member base and maturing loan portfolio. Provision expense for ExtraCash receivables aged 120 days and under increased by $3.0 million, reflecting increased outstanding balances. In aggregate, these drivers reflect the impact of portfolio expansion, including an 18% increase in average transacting Members, an increase in average ExtraCash advance amounts from $192 to $212, and growth in total ExtraCash origination volume from approximately $1.5 billion to $2.1 billion for the three months ended March 31, 2025 and 2026, respectively.
Previous wording
The outstanding balance of ExtraCash receivables is subject to variability based on seasonal differences in Member activity across the trailing 120-day measurement period. Additionally, the calendar day on which a quarter ends can materially affect provision expense due to intra-week fluctuations in outstanding balances. This inherent timing effect, together with the seasonal pattern of origination and loss emergence, contributes to variability in our quarterly provision for credit losses.
Current wording
The outstanding balance of ExtraCash receivables is subject to variability based on seasonal differences in Member activity across the trailing 120-day measurement period. Additionally, the calendar day on which a period ends can materially affect provision expense due to intra-week fluctuations in outstanding balances. This inherent timing effect, together with the seasonal pattern of origination and loss emergence, contributes to variability in our period-end provision for credit losses.
Previous wording
Historical loss rates used in provision assumptions increased marginally for the nine months ended September 30, 2025, reflecting expected shifts in collection performance and higher realized loss rates compared to the prior period. Changes in these historical loss rates directly affect both the allowance for credit losses and the corresponding provision. All uncollectible ExtraCash receivables are written off against the allowance for credit losses, reducing the allowance accordingly.
Current wording
Historical loss rates utilized in our allowance for credit losses for the period ended March 31, 2026 remained relatively stable compared to the prior period, reflecting expected shifts in overall collections performance. These loss rates may be influenced by the timing of collections activity relative to period-end measurement dates and the composition of aged receivables outstanding at any given reporting date. Changes in these historical loss rates directly affect both the allowance for credit losses and the corresponding provision for credit losses. All uncollectible ExtraCash receivables are written off against the allowance for credit losses, reducing the allowance accordingly.
Previous wording
For additional details regarding the aging composition of ExtraCash receivables and a complete roll-forward analysis of the allowance for credit losses, refer to the detailed tables presented in Note 6 — ExtraCash Receivables, Net in the accompanying condensed consolidated financial statements.
Current wording
For additional details regarding the aging composition of ExtraCash receivables and a complete roll-forward analysis of the allowance for credit losses, refer to the detailed tables presented in Note 5 — ExtraCash Receivables, Net in the accompanying consolidated financial statements.
Previous wording
Processing and service costs—Processing and servicing costs totaled $9.4 million for the three months ended September 30, 2025, compared to $8.4 million for the three months ended September 30, 2024. The increase of $1.0 million, or 12%, was primarily driven by cost increases from ExtraCash origination volume from $1.4 billion to approximately $2.0 billion for the three months ended September 30, 2024 and 2025, respectively, offset by cost savings due to price reductions and rebates from our processors and card network partners.
Current wording
Processing and service costs—Processing and servicing costs totaled $9.6 million for the three months ended March 31, 2026, compared to $7.0 million for the three months ended March 31, 2025. The increase of $2.6 million, or 37%, was primarily driven by cost increases from ExtraCash origination volume from approximately $1.5 billion to $2.1 billion for the three months ended March 31, 2025 and 2026, respectively.
Previous wording
Financial network and transaction costs—Financial network and transaction costs totaled $7.4 million for the three months ended September 30, 2025, compared to $6.2 million for the three months ended September 30, 2024. The increase of $1.1 million, or 18%, was primarily driven by increases in debit card network fees and debit card processing costs due to a 25% increase in spend-related transaction volume period over period, partially offset by decreases in negative balance expenses due to continued fraud mitigation efforts.
Current wording
Financial network and transaction costs—Financial network and transaction costs totaled $7.8 million for the three months ended March 31, 2026, compared to $7.0 million for the three months ended March 31, 2025. The increase of $0.7 million, or 10%, was primarily driven by increases in debit card network fees and debit card processing costs due to a 9% increase in transaction volume period over period, partially offset by decreases in ATM network fees.
Previous wording
Compensation and benefits—Compensation and benefits expenses totaled $24.8 million for the three months ended September 30, 2025, compared to $30.4 million for the three months ended September 30, 2024. The decrease of $5.6 million, or 18%, was primarily attributable to the following:
Current wording
Compensation and benefits—Compensation and benefits expenses totaled $27.6 million for the three months ended March 31, 2026, compared to $27.3 million for the three months ended March 31, 2025. The increase of $0.3 million, or 1%, was primarily attributable to the following:
Previous wording
an increase in temporary labor and contractor costs of $0.5 million, as we continued to leverage specialized skills and flexible workforce arrangements to support key operating initiatives and capacity needs during the three months ended September 30, 2025.
Current wording
an increase in temporary labor and contractor costs of $0.6 million, as we continued to leverage specialized skills and flexible workforce arrangements to support key operating initiatives and capacity needs during the three months ended March 31, 2026.
Previous wording
a decrease in stock-based compensation of $6.2 million, primarily due to the vesting of certain performance based restricted stock units during the three months ended September 30, 2024, compared to the three months ended September 30, 2025, in addition to reductions in stock-based compensation expense related to restricted stock units and stock options granted in prior years that have fully vested; offset by
Current wording
a decrease in stock-based compensation of $0.4 million, primarily due to reductions in stock-based compensation expense related to stock options and restricted stock units granted in prior years that have fully vested during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, partially offset by an increase in stock-based compensation expense related to performance-based restricted stock units granted during the period; and
Previous wording
Technology and infrastructure—Technology and infrastructure expenses totaled $3.2 million for the three months ended September 30, 2025, compared to $2.9 million for the three months ended September 30, 2024. The increase of $0.3 million, or 12%, was primarily driven by increased investment levels in supporting the reliability, security, and scalability of our systems. Management continues to focus on efficiency and operational resilience in technology-related spend, ensuring that resources are aligned with business growth, cybersecurity, and customer needs.
Current wording
Technology and infrastructure—Technology and infrastructure expenses totaled $3.4 million for the three months ended March 31, 2026, compared to $2.7 million for the three months ended March 31, 2025. The increase of $0.7 million, or 25%, was primarily driven by continued investment in the reliability, security, and scalability of our systems. Management remains focused on balancing operational efficiency with infrastructure resilience, directing technology-related spend toward initiatives that support business growth, cybersecurity, and the evolving needs of our Members.
Previous wording
Other operating expenses—Other operating expenses totaled $11.3 million for the three months ended September 30, 2025, compared to $13.4 million for the three months ended September 30, 2024. The decrease of $2.1 million, or 16%, was primarily attributable to the following:
Current wording
Other operating expenses—Other operating expenses totaled $9.7 million for the three months ended March 31, 2026, compared to $6.3 million for the three months ended March 31, 2025. The increase of $3.4 million, or 54%, was primarily attributable to the following:
Previous wording
an increase in professional service fees of $0.3 million related to expenditures for external consulting and compliance-related services resulting from our ongoing initiatives to support key operational and regulatory priorities, including enhancement of processes, internal controls, and adherence to applicable reporting standards.
Current wording
an increase in professional service fees of $0.6 million related to expenditures for external consulting and compliance-related services in support of key operational and regulatory priorities, including the enhancement of internal controls, processes, and adherence to applicable reporting standards.
Previous wording
Interest income—Interest income totaled $0.3 million for the three months ended September 30, 2025, compared to $0.4 million for the three months ended September 30, 2024. The decrease of $0.1 million, or 33%, was primarily driven by an overall decline in interest rates.
Current wording
Interest income—Interest income totaled $0.8 million for the three months ended March 31, 2026, compared to $0.4 million for the three months ended March 31, 2025. The increase of $0.4 million, or 91%, was primarily driven by higher average cash balances held in interest-bearing accounts, partially offset by an overall decline in interest rates period over period.
Previous wording
Changes in fair value of earnout liability—Changes in fair value of earnout liabilities resulted in benefit of $4.8 million for three months ended September 30, 2025, compared to a benefit of $0.02 million for the three months ended September 30, 2024. The increase of $4.8 million was primarily driven by a fair value adjustment related to the earnout shares liability, which is sensitive to fluctuations in our Class A common stock price. While our stock has generally appreciated over the last 12 months, a decrease in the price during the three months ended September 30, 2025 led to a remeasurement of the liability at a lower fair value, resulting in a benefit recognized during the period.
Current wording
Changes in fair value of earnout liability—Changes in fair value of earnout liabilities resulted in benefit of $3.2 million for three months ended March 31, 2026, compared to a benefit of $0.4 million for the three months ended March 31, 2025. The increase of $2.8 million was primarily driven by a fair value adjustment related to the earnout shares liability, which is sensitive to fluctuations in our Class A common stock price. While our stock has generally appreciated over the last 12 months, a decrease in the price during the three months ended March 31, 2026 led to a remeasurement of the liability at a lower fair value, resulting in a benefit recognized during the period.
Previous wording
Changes in fair value of warrant liability—Changes in the fair value of our warrant liability resulted in a benefit of $9.2 million for the three months ended September 30, 2025, compared to an expense of $0.2 million for the three months ended September 30, 2024. The decrease of $9.4 million was primarily driven by fair value adjustments related to our public and private warrant liabilities, which are remeasured each period based on changes in the DAVEW warrant price and our Class A common stock price. The warrant liability decreased in value during the current quarter due to a significant decrease in the DAVEW warrant price and our Class A common stock price during the third quarter of 2025, which led to a remeasurement of the liability at a lower fair value, resulting in a significant benefit recognized during the period.
Current wording
Changes in fair value of warrant liability—Changes in the fair value of our warrant liability resulted in a benefit of $8.3 million for the three months ended March 31, 2026, compared to a loss of $0.4 million for the three months ended March 31, 2025. The decrease of $8.7 million was primarily driven by fair value adjustments related to our public and private warrant liabilities, which are remeasured each period based on changes in the DAVEW warrant price and our Class A common stock price. The warrant liability decreased in value during the current quarter due to a decrease in the DAVEW warrant price and our Class A common stock price during the first quarter of 2026, which led to a remeasurement of the liability at a lower fair value, resulting in a significant benefit recognized during the period.
Previous wording
"Adjusted EBITDA" is defined as net income adjusted for interest income or expense, provision (benefit) for income taxes, depreciation and amortization, stock-based compensation, dormant account fees, gain on extinguishment of convertible debt, changes in fair value of earnout liabilities, changes in fair value of public and private warrant liabilities, legal settlement and litigation expenses, and other non-recurring items determined by management. Adjusted EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP.
Current wording
"Adjusted EBITDA" is defined as net income adjusted for interest income or expense, provision for income taxes, depreciation and amortization, stock-based compensation, dormant account fees, legal settlement and litigation expenses, changes in fair value of earnout liabilities, changes in fair value of public and private warrant liabilities, and other discretionary or non-recurring items determined by management. Adjusted EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP.
Previous wording
The following table reconciles net income to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024, respectively:
Current wording
The following table reconciles net income to Adjusted EBITDA for the three months ended March 31, 2026 and 2025:
Previous wording
In the normal course of business, we enter into various agreements with vendors that may subject us to minimum annual requirements. We believe we will be able to adequately fulfill these obligations through cash generated from operations and existing cash balances. We do not have any "off-balance sheet arrangements," as defined by SEC regulations.
Current wording
In the normal course of business, we enter into agreements with vendors and service providers that may include minimum purchase commitments or other payment obligations. We believe we will be able to fulfill these obligations through cash generated from operations and existing cash balances.
Previous wording
We may use cash to acquire businesses and technologies. The nature of these transactions makes it difficult to predict the amount and timing of such cash requirements.
Current wording
Additionally, we may use cash to acquire businesses and technologies. The nature of these potential transactions, however, makes it difficult to predict the amount and timing of such cash requirements.
Previous wording
During the nine months ended September 30, 2025, net cash provided by operating activities increased compared to the nine months ended September 30, 2024 due to increases in operating revenues and a reduction in various operating expenses across the organization. Net cash provided by operating activities for the nine months ended September 30, 2025 included net income of $129.9 million, and excluding non-cash impacts, included an increase in legal settlement accruals of $9.0 million, an increase in other non-current liabilities of $2.1 million, an increase in accounts payable of $1.1 million, and an increase in other current liabilities of $0.5 million. These changes were offset by an increase in ExtraCash receivables, service based revenue of $12.6 million, an increase in prepaid expenses and other current assets of $9.8 million, and a decrease in accrued expenses of $1.4 million.
Current wording
During the three months ended March 31, 2026, net cash provided by operating activities was $82.0 million, an increase of $36.8 million compared to $45.2 million for the three months ended March 31, 2025, primarily due to increases in operating revenues. Net cash provided by operating activities included net income of $57.9 million, adjusted for significant noncash items including provision for credit losses of $26.6 million, stock-based compensation of $7.1 million, and depreciation and amortization of $1.6 million, partially offset by changes in fair value of earnout and warrant liabilities of $11.5 million. Changes in operating assets and liabilities increased cash by $0.2 million, primarily driven by an increase in income taxes payable of $10.1 million and increase in non-current liabilities of $0.5 million, partially offset by an increase in prepaid expenses and other current assets of $6.5 million, an increase in ExtraCash receivables, service-based revenue of $1.7 million, a decrease in accounts payable of $1.6 million, and a decrease in other current liabilities of $0.4 million.
Previous wording
During the nine months ended September 30, 2024, net cash provided by operating activities increased compared to the nine months ended September 30, 2023 due to increases in operating revenues and a reduction in various operating expenses across the organization. Net cash provided by operating activities for the nine months ended September 30, 2024 included net income of $41.1 million, and excluding non-cash impacts, included an increase in legal settlement accruals of $3.8 million, an increase in accounts payable of $2.9 million, an increase in other non-current liabilities of $2.8 million, an increase in accrued expenses of $4.5 million, and a decrease in prepaid income taxes of $0.1 million. These changes were offset by an increase in prepaid expenses and other current assets of $6.0 million and an increase in ExtraCash receivables, service based revenue of $3.7 million.
Current wording
During the three months ended March 31, 2025, net cash provided by operating activities increased compared to the three months ended March 31, 2024 due to increases in operating revenues and a reduction in various operating expenses across the organization. Net cash provided by operating activities for the three months ended March 31, 2025 included net income of $28.8 million, and excluding non-cash impacts, included an increase in ExtraCash receivables, service based revenue of $3.3 million and a decrease in accrued expenses of $4.5 million. These changes were offset by an increase in income taxes payable of $4.7 million and an increase in other non-current liabilities of $0.3 million.
Previous wording
During the nine months ended September 30, 2024, net cash used in investing activities was $19.0 million. This included the purchases of investments of $74.8 million, purchases of marketable securities of $59.3 million, net ExtraCash originations and collections of $87.0 million and payments related to internally developed software costs and property and equipment of $5.5 million. These changes were offset by the sale and maturity of investments of $147.7 million and sale of marketable securities of $60.1 million.
Current wording
During the three months ended March 31, 2026, net cash used in investing activities was $10.1 million, primarily consisting of $26.0 million in purchases of investments, $6.7 million in net ExtraCash originations and collections, and $1.5 million in payments for internally developed software costs, partially offset by $24.1 million from the sale and maturity of investments.
Previous wording
During the nine months ended September 30, 2025, net cash used in investing activities was $151.9 million. This included the purchases of investments of $169.7 million, net ExtraCash originations and collections of $145.6 million, and payments related to internally developed software costs of $4.8 million. These changes were offset by the sale and maturity of investments of $168.3 million.
Current wording
During the three months ended March 31, 2025, net cash used in investing activities was $28.1 million, primarily consisting of purchases of investments of $37.9 million, net ExtraCash originations and collections of $26.1 million and payments related to internally developed software costs and property and equipment of $1.4 million, partially offset by the sale and maturity of investments of $37.3 million.
Previous wording
During the nine months ended September 30, 2025, net cash used in financing activities was $44.5 million, which consisted of the $13.3 million for the payment of taxes for shares withheld related to net share settlements and $31.9 million related to repurchases of Class A Common Stock, offset by $0.7 million for proceeds received for stock option exercises.
Current wording
During the three months ended March 31, 2025, net cash used in financing activities was $19.9 million, which consisted of the $13.3 million for payment for shares withheld related to net share settlements and $6.9 million related to repurchases of Class A common stock, offset by $0.3 million for proceeds received for stock option exercises.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (11)
Previous report — wording carried elsewhere
Transaction based revenue, net, was $11.5 million for the three months ended September 30, 2025, an increase of $2.4 million, or 26%, compared to $9.1 million for the three months ended September 30, 2024. The increase was primarily driven by interchange revenue resulting from the growth in Members engaging with our Checking Product and increased card spend and transaction volume, which rose approximately 25% period over period. Additionally, transaction based revenue, net increased due to maintenance fees on inactive accounts and fees earned due to Member's higher withdrawal-related transaction volume.
Previous report — wording carried elsewhere
Management continues to refine ExtraCash eligibility requirements, enhance new Member conversion processes, and strengthen risk detection capabilities to align with expected credit performance trends across varying economic and seasonal conditions. Under the current expected credit loss (CECL) model, management estimates lifetime expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. Our CECL methodology pools ExtraCash receivables based on shared risk characteristics, such as vintage and payment behavior, and applies historical loss rates adjusted for observed and forecasted trends, including quarter-specific seasonal effects.
Previous report — wording carried elsewhere
The outstanding balance of ExtraCash receivables is subject to variability based on differences in Member activity over the trailing 120-day measurement period, including intra-quarter seasonal shifts. Additionally, the calendar day on which a quarter ends materially affects provision expense due to intra-week fluctuations in outstanding balances. This inherent timing effect contributes to variability in our quarterly provision for credit losses.
Previous report — wording carried elsewhere
For additional details on the aging composition of ExtraCash receivables and a complete roll-forward analysis of the allowance for credit losses, refer to the detailed tables presented in Note 6 — ExtraCash Receivables, Net in the accompanying condensed consolidated financial statements.
Previous report — wording carried elsewhere
Processing and Overdraft Service fees, net
Previous report — wording carried elsewhere
Processing and overdraft service fees, net, which consists of processing and servicing costs associated with ExtraCash originations, totaled $326.1 million for the nine months ended September 30, 2025, representing an increase of $173.3 million, or 113%, compared to $152.9 million for the nine months ended September 30, 2024. The increase was primarily driven by an approximately 16% increase in average monthly transacting Members, an increase in total ExtraCash origination volume from approximately $3.6 billion to approximately $5.3 billion, a rise in the average ExtraCash amounts that increased from $166 to $202 period over period and increases to our fee structure that took place during February 2025. In addition, both the average processing and overdraft service fees and percentage of Members who elected to expedite ExtraCash disbursements increased modestly during the current period. We expect processing and overdraft service fees to continue to increase in line with growth in ExtraCash volume and Member engagement.
Previous report — wording carried elsewhere
Financial network and transaction costs—Financial network and transaction costs totaled $21.6 million for the nine months ended September 30, 2025, compared to $19.1 million for the nine months ended September 30, 2024. The increase of $2.6 million, or 13%, was primarily driven by increases in debit card network fees and debit card processing costs due to a 25% increase in transaction volume period over period, partially offset by decreases in negative balance expenses due to continued fraud mitigation efforts.
Previous report — wording carried elsewhere
an increase in temporary labor and contractor costs of $0.8 million, as we continued to leverage specialized skills and flexible workforce arrangements to support key operating initiatives and capacity needs.
Previous report — wording carried elsewhere
an increase in professional service fees of $0.7 million related to expenditures for external consulting and compliance-related services resulting from our ongoing initiatives to support key operational and regulatory priorities, including enhancement of processes, internal controls, and adherence to applicable reporting standards; and
Previous report — wording carried elsewhere
Changes in fair value of warrant liability—Changes in the fair value of our warrant liability resulted in an expense of $11.7 million for the nine months ended September 30, 2025, compared to an expense of $0.4 million for the nine months ended September 30, 2024. The increase of $11.2 million, or 2,757%, was primarily driven by fair value adjustments related to our public and private warrant liabilities, which are remeasured each period based on changes in the DAVEW warrant price and our Class A common stock price. The warrant liability increased in value during the first nine months of 2025 due to a significant increase in the DAVEW warrant price and our Class A common stock price during the first nine months of 2025 as compared to the first nine months of 2024, which led to a remeasurement of the liability at a higher fair value, resulting in the higher expense recognized period over period.
Previous report — wording carried elsewhere
Sources of Liquidity and Capital Resources