DAVE

Dave has crossed from a cash-burning SPAC story into a genuinely high-quality compounder, and the inflection is unambiguous in the numbers. Revenue marched 153→205→259→347→$554M while net income flipped from a -$129M loss in FY2022 to +$196M in FY2025 (+238% YoY), and diluted EPS hit $13.53 (+223%). This isn't accounting-driven: operating cash flow was $290M (+132%) against just $317K of capex, so the business is almost pure free cash flow. The balance sheet is pristine — zero long-term debt (down from prior-year), $80.5M cash, liabilities/equity of only 0.38x, and stockholders' equity up 93% to $353M. A 55.5% ROE on a debt-free book is exceptional and signals real operating leverage in the ExtraCash + Checking interchange model.

The valuation is the crux of the bullish call. At $371.62 the stock trades at 27.5x trailing EPS and 9.0x sales — rich on an absolute P/S basis, but against 60% revenue and triple-digit EPS growth the PEG is well below 1. You rarely get a 35% net-margin, zero-debt, 55% ROE business at sub-30x earnings; the market is still pricing skepticism that the growth and margins persist. The newly authorized $300M buyback (replacing $125M, ~$113M was left) is ~6% of the $4.97B cap and a credible signal management sees the stock as cheap and intends to offset the modest 6.8% share-count creep.