When Mark Cuban backs an investment, people take notice. The self-made billionaire has a track record of successful investments, so when he endorses a company, it usually makes headlines.
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One of Cuban’s investments, Dave Inc. (DAVE), has generated buzz in the markets, helping propel the stock to big gains thus far in 2025. But will stock market momentum and the backing of a high-profile investor continue to drive shares of Dave higher, or do the risks outweigh the potential upside? Here are some things to consider.
The backing of Cuban has no doubt brought investor attention to Dave, but that’s not enough to sustain a high share price. What investors are really betting on with Dave is skyrocketing growth.
Dave is a banking app that is “designed to make finances easier,” in the words of the company. The app’s main attraction for those strapped for money is the ability to get up to $500 in five minutes or less through a feature known as “ExtraCash.” Essentially, it’s an interest-free short-term loan designed to help people living paycheck to paycheck.
Whatever the app is doing seems to be popular. Revenues are booming, as are originations of the company’s featured “ExtraCash” product. Perhaps even more impressive is that the rapidly growing company is already demonstratively profitable, and its cash balances are actually rising.
Here are some specific data points from the company’s second quarter earnings release on Aug. 6, all on a year-over-year basis.
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Revenue grew 64%, to $131.7 million
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Net income rose 42%, to $9.1 million
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Adjusted net income jumped 233%, to $45.7 million
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Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) skyrocketed 236%, to $50.9 million
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GAAP earnings per share (diluted) increased 32%, to $0.62
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Adjusted EPS (diluted) was up 210%, to $3.14
Additionally, the company raised its 2025 revenue and adjusted EBITDA guidance to $505 million to $515 million and $180 million to $190 million, respectively.
All of these factors are signs of a rapidly growing company, something that makes market participants willing to pay a premium.
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For momentum investors, Dave remains a Wall Street darling. As of Nov. 14, the stock is up about 138% on a year-to-date basis, even though it remains below its high set in early July.
