What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-03-04 · 349 added, 159 removed, 182 unchanged (74% of the section changed)

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Risk Factors” and elsewhere in this Annual Report on Form 10-K.

On January 5, 2023, the Board of Directors approved an amendment to the Company’s certificate of incorporation to complete a 1-for-32 reverse stock split effective January 5, 2023.

The effects of the reverse stock split have been reflected in the consolidated financial statements and the footnotes.

Company Overview

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.

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.

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, more than 16 million Members have signed up for the Dave app, with over 12 million having used at least one of our products.

We have provided Members with more than $15 billion in ExtraCash, offering critical liquidity when they need it most.

To further support our communities, we have donated approximately $23 million to charity and important causes since inception.

Customers value our products, as demonstrated by more than 700,000 App Store reviews with an average 4.8-star rating as of February 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.

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.

Since inception, over 19 million Members have signed up for the Dave app, with over 14 million having used at least one of our products.

We have provided Members with over $22 billion in ExtraCash, offering critical liquidity when they need it most, and have donated over $25 million to charity and important causes.

Customers value our products, as demonstrated by more than 750,000 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.

Market Opportunity

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 2024, approximately 180 million Americans are classified as financially “coping” or “vulnerable” representing over 70% of the U.S.

population, up from 66% in 2021.

A December 2024 report by PYMNTS also found that 65% of U.S.

consumers were living paycheck to paycheck, up from 60% 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 $38 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 $200 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 $350-$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 180 million Americans that do not have access to affordable and effective banking solutions.

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.

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 December 2025 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.

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.

Comparability of Financial Information

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Key Factors Affecting Operating Results

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.

Member Growth and Activity

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.

Product Expansion

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.

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.

Concentration

We rely on agreements with Evolve, currently our only active bank partner, 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.

Given the size and consistent growth of our Member base as well as how our product capabilities have been expanding, we recently announced an additional financial institution with which we will partner.

Industry Trends/General Economic Conditions

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, unemployment rates, and consumer sentiment may impact consumer spending behavior and consumer demand for financial products.

Although the Company’s 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.

Our future operating results and cash flows depend on Member growth and activity, product expansion, competition, industry trends, and general economic conditions.

Member Acquisition and Engagement

Revenue growth depends on efficiently acquiring new Members and driving product cross-sell.

In fiscal year 2025, customer acquisition cost remained stable at approximately $19 while payback periods have improved to under four months, our fastest on record, reflecting our focus on directing acquisition spend toward the highest return opportunities.

ARPU expansion is primarily driven by ExtraCash volume and the adoption of Dave Checking by Members.

Dave Debit Card actives generate approximately 1.7x 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 reached $534 million in the fourth quarter of 2025, a 17% increase year-over-year.

Our mid-2025 subscription fee increase from $1 to $3 improved customer lifetime value without materially affecting conversion or retention.

Subscription revenue grew 92% year-over-year in the fourth quarter of 2025.

Credit Performance

ExtraCash profitability depends on approving creditworthy Members while maintaining disciplined delinquency and write-off rates.

In fiscal year 2025, approval rates reached all-time highs, improving conversion efficiency.

In February 2025, we completed the transition to a simplified fee structure with a mandatory 5% overdraft service fee (including a $5 minimum), enhancing unit economics and monetization.

In September 2025, we deployed CashAI v5.5, which nearly doubles the feature set of prior versions.

Early results demonstrate improved risk ranking, higher average approval amounts, and lower delinquency rates.

CashAI has leveraged insights from over 180 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 11 days) creates rapid feedback loops, enabling iterative model refinement.

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.

Funding and Interest Rate Sensitivity

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.

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 retains interest in an amount equal to a variable rate based on the Fed Funds Rate plus a margin while such receivables are on Coastal's balance sheet.

Elevated rates have increased borrowing costs, reducing ExtraCash unit economics.

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.

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.

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.

Competitive pressures could increase marketing spend or reduce competitive positioning.

Our long-term success depends on continued product differentiation and technological leadership.

Business" and "Item 1A.

Risk Factors" for additional information.

Macroeconomic Conditions

Our business is sensitive to macroeconomic conditions.

Interest rate changes directly impact funding costs and Members' settlement capacity.

Unemployment affects Members' ability to repay ExtraCash.

Consumer spending patterns and inflation influence cash flow and credit demand.

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.

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.

Regulatory Environment

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.

Business—Regulatory Environment" and "Item 1A.

Risk Factors" for additional discussion.

Recent Developments

On February 25, 2026, the Company’s Board of Directors authorized a new share repurchase program to buy back up to $300 million of its outstanding Class A common stock.

The new program replaces the existing share repurchase program, which provided for up to $125 million repurchasing authority.

As of February 25, 2026, approximately $113.2 million remained available under the existing program.

Key Components of Statements of Operations

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For more information about our basis of presentation, refer to Note 2 in the accompanying consolidated financial statements of Dave included in this report.

During the second quarter of 2025, we revised the presentation of certain items within our 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.

Specifically:

• Financial network and transaction costs now appear as a separate line item within operating expenses (formerly included in other operating expenses).

• Advertising and marketing is now presented as advertising and activation under operating expenses and includes Member activation costs (activation costs were formerly included in processing and servicing costs and other operating expenses).

• Technology and infrastructure costs now appear as a separate line item within operating expenses (formerly included in other operating expenses).

Operating Revenues

Service based revenue, net

Service based revenue, net primarily consists of optional express 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 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.

Transaction based revenue, net

Transaction based revenue, net primarily consists of interchange and ATM revenues from our Checking Product, net of interchange and ATM-related fees, fees earned from funding and withdrawal-related transactions, volume support from a certain co-branded agreement, fees earned related to the Rewards Product for Members who make debit card spending transactions at participating merchants and deposit referral fees and are recognized at the point in time the transactions occur, as the performance obligations are satisfied and the variable consideration is not constrained.

Transaction based revenue, net primarily consists of interchange and ATM revenues from our Checking Products, net of interchange fees, ATM-related fees and interest earned by Members.

Also included in transaction based revenue are fees earned from funding and withdrawal-related transactions, maintenance fees on inactive accounts, volume support from a certain co-branded agreement and deposit referral fees that are recognized at the point in time the transactions occur, as the performance obligations are satisfied and the variable consideration is not constrained.

Operating Expenses

We classify our operating expenses into the following five categories:

We classify our operating expenses into the following six categories:

Provision for credit losses

The provision for credit losses primarily consists of an allowance for expected credit losses at a level estimated to be adequate to absorb credit losses inherent in the outstanding ExtraCash receivables, inclusive of outstanding processing fees and tips along with outstanding amounts aged over 120 days or which become uncollectible based on information available to us during the period.

The provision for credit losses primarily consists of an allowance for expected credit losses at a level estimated to be adequate to absorb credit losses inherent in the outstanding ExtraCash receivables, inclusive of outstanding processing and overdraft service fees and tips, along with outstanding amounts aged over 120 days or which become uncollectible based on information available to us during the period.

We currently estimate the allowance balance required using historical loss and collections experience, and, if relevant, the nature and volume of the portfolio, economic conditions, and other factors such as collections trends and cash collections received subsequent to the balance sheet date.

Changes to the allowance have a direct impact on the provision for credit losses in the consolidated statement

of operations.

Changes to the allowance have a direct impact on the provision for credit losses in the consolidated statement of operations.

We consider ExtraCash receivables aged more than 120 days or which become uncollectible based on information available to us as impaired.

All impaired ExtraCash receivables are deemed uncollectible and subsequently written off and are a direct reduction to the allowance for credit losses.

Subsequent recoveries, if any, of Member ExtraCash receivables, written-off are recorded as a reduction to ExtraCash receivables, resulting in a reduction to the allowance for credit losses and a corresponding reduction to the provision for credit losses in the consolidated statements of operations when collected.

Subsequent recoveries, if any, of ExtraCash receivables written-off are recorded as a reduction to the provision for credit losses in the consolidated statements of operations when collected.

Processing and servicing costs

Processing and servicing fees consist of fees paid to our processing partners for the recovery of ExtraCash, optional tips, optional express processing fees, overdraft service fees and subscriptions.

These expenses also include fees paid for services to connect Members’ bank accounts to our application.

Except for processing and servicing fees associated with ExtraCash originations which are recorded net against revenue, all other processing and service fees are expensed as incurred.

Advertising and Marketing

Advertising and marketing expenses consist primarily of fees we pay to our advertising and marketing platform partners.

We incur advertising, marketing and production-related expenses for online, social media and television advertising and for partnerships and promotional advertising.

Advertising and marketing expenses are expensed as incurred although they typically deliver a benefit over an extended period.

Processing and servicing costs consist of fees paid to our processing partners for the recovery of ExtraCash, optional processing fees, optional tips, overdraft service fees and subscriptions.

These expenses also include costs paid for services to connect Members’ bank accounts to our application.

Except for processing and servicing costs associated with ExtraCash originations which are recorded net against revenue, all other processing and service costs are expensed as incurred.

Financial network and transaction costs

Financial network and transaction costs primarily consist of program management fees, card network association fees, payment processing costs, losses related to Member-disputed transactions, bank card fees and fraud-related losses.

Advertising and activation costs

Advertising and activation expenses primarily consist of fees paid to our advertising and marketing platform partners for online, social media, and television campaigns, as well as promotional partnerships.

These expenses also include activation-related costs, such as third-party fees (e.g., Plaid) incurred to onboard new Members to our platform.

Advertising and activation costs are expensed as incurred, even though they may provide benefits over an extended period.

Compensation and benefits

Compensation and benefits expenses represent the compensation, inclusive of stock-based compensation and benefits, that we provide to our employees and the payments we make to third-party contractors.

While we have an in-house customer service function, we employ third-party contractors to conduct call center operations and handle routine customer service inquiries and support.

While we have an in-house customer service function, we employ third-party contractors to conduct call center operations and manage routine customer service inquiries and support.

Technology and infrastructure

Technology and infrastructure costs are associated with third-party Software-as-a-Service (“SaaS”) solutions, including cloud-based platforms that support the development, maintenance, scalability, and security of our products and internal systems.

Other Operating Expenses

Other operating expenses consist primarily of technology and infrastructure (third-party Software as a Service or “SaaS”), commitments to charity, checking product costs (program expenses, association fees, processor fees, losses from Member-disputed transactions, bank card fees and fraud), depreciation and amortization of property and equipment and intangible assets, legal fees, rent, certain sales tax related costs, office related expenses, public relations costs, professional services fees, travel and entertainment, and insurance.

Costs associated with technology and infrastructure (third-party SaaS), depreciation and amortization of property and equipment and intangible assets, legal fees, rent, office related expenses, public relations costs, professional services fees, travel and entertainment, and insurance vary based upon our investment in infrastructure, business development, risk management and internal controls and are generally not correlated with our operating revenues or other transaction metrics.

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.

Other (Income) Expenses

Other (income) expenses consist of interest income, interest expense, gain on extinguishment of convertible debt, earnout liabilities fair value adjustments and changes in fair value of warrant liabilities.

Provision for income taxes

Provision for income taxes consists of the federal and state corporate income taxes accrued on income resulting from the sale of our services.

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.

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes reflects federal and state income taxes and changes in our valuation allowance against deferred tax assets.

The benefit for the year ended December 31, 2025 includes the full release of our valuation allowance due to improved expectations of future taxable income.

Results of Operations

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Service based revenue, net

Processing and overdraft service fees, net

Subscriptions

Transaction based revenue, net

Service based revenue, net—

Processing fees, net

Processing fees, net of processor costs associated with ExtraCash originations, for the year ended December 31, 2025 were $466.8 million, an increase of $248.0 million, or 113%, from $218.8 million for the year ended December 31, 2024.

The increase was primarily driven by an approximately 17% increase in average monthly transacting Members, an increase in total ExtraCash origination volume from approximately $5.1 billion to approximately $7.6 billion, a rise in the average ExtraCash amounts that increased from $170 to $205 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.

Tips for the year ended December 31, 2025 were $7.5 million, a decrease of $60.1 million, or 89%, from $67.6 million for the year ended December 31, 2024.

The decline was primarily due to the elimination of the Member tipping option in February 2025.

Subscriptions

Subscriptions for the year ended December 31, 2025 were $37.2 million, an increase of $12.6 million, or 51%, from $24.6 million for the year ended December 31, 2024.

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.

Transaction based revenue, net

Transaction based revenue, net for the year ended December 31, 2025 was $42.3 million, an increase of $6.6 million, or 19%, from $35.7 million, for the year ended December 31, 2024.

The increase was primarily driven by higher interchange revenue, resulting from the growth in Members engaging with our Checking Products, as well as increased card spend and transaction volume, which rose approximately 23% 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.

Operating expenses

For the Year Ended

(in thousands, except for percentages)

Provision for credit losses

Processing and servicing costs

Financial network and transaction costs

Advertising and activation costs

Compensation and benefits

Technology and infrastructure

Other operating expenses

Provision for credit losses —The provision for credit losses totaled $91.0 million for the year ended December 31, 2025, compared to $54.6 million for the year ended December 31, 2024, resulting in an increase of $36.4 million, or 67%.

This increase reflects year-over-year 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.

The year-over-year increase in provision for credit losses comprises two principal drivers aligned with management's expectations and historical seasonality.

The provision for credit losses for ExtraCash receivables aged over 120 days and those deemed uncollectible increased by $23.9 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 $12.5 million, reflecting increased outstanding balances and anticipated loss patterns characteristic of the period.

In aggregate, these factors reflect the impact of portfolio expansion, average ExtraCash balance increasing from $170 to $205, and the rise in total ExtraCash origination volume from $5.1 billion to $7.6 billion for the years ended December 31, 2024 and 2025, respectively.

Management regularly updates ExtraCash eligibility requirements, new Member conversion processes, and risk detection capabilities to align with expected loss emergence patterns and to respond to economic conditions and seasonal shifts in Member activity.

Under the current expected credit loss ("CECL") model, management estimates lifetime expected credit losses based on historical experience, current conditions, and reasonable and supportable

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 economic trends, including anticipated seasonal effects.

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.

Historical loss rates utilized in our allowance for credit losses for the year ended December 31, 2025 remained relatively stable compared to the prior year, 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.

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.

Processing and servicing costs —Processing and servicing costs totaled $33.5 million for the year ended December 31, 2025, compared to $29.4 million for the year ended December 31, 2024.

The increase of $4.1 million, or 14%, was primarily driven by increases in ExtraCash origination volume from $5.1 billion to approximately $7.6 billion, partially offset by cost savings due to price reductions from our processors and rebates from our card network partners.

Financial network and transaction costs —Financial network and transaction costs totaled $28.2 million for the year ended December 31, 2025, compared to $24.7 million for the year ended December 31, 2024.

The increase of $3.5 million, or 14%, was primarily driven by increases in debit card network fees and debit card processing costs due to a 23% increase in transaction volume period over period, partially offset by decreases in negative balance expenses due to continued fraud mitigation efforts.

Advertising and activation costs —Advertising and activation costs totaled $66.0 million for the year ended December 31, 2025, compared to $53.4 million for the year ended December 31, 2024.

The increase of $12.5 million, or 23%, was primarily driven by higher media spend to support Member acquisition and engagement, consistent with the growth in ExtraCash origination volume from $5.1 billion to $7.6 billion year over year.

Spending was weighted toward the second half of the year to align with seasonal demand patterns around the holiday period.

Customer acquisition cost remained stable at approximately $19 while payback periods have improved to under four months, reflecting continued focus on directing spend toward the highest return opportunities.

Compensation and benefits —Compensation and benefits expenses totaled $103.4 million for the year ended December 31, 2025, compared to $105.8 million for the year ended December 31, 2024.

The decrease of $2.4 million, or 2%, was primarily attributable to the following:

• a decrease in stock-based compensation of $7.4 million, primarily due to the vesting of certain performance-based restricted stock units, restricted stock units and stock options during the year ended December 31, 2025 compared to the year ended December 31, 2024;

• an increase in payroll and related costs of $3.8 million, primarily due to increased compensation, employer related taxes and performance bonuses;

• an increase in contractor and consulting fees of $1.2 million, as we continued to leverage specialized skills and flexible workforce arrangements to support key operating initiatives and capacity needs.

Technology and infrastructure —Technology and infrastructure expenses totaled $12.1 million for the year ended December 31, 2025, compared to $11.0 million for the year ended December 31, 2024.

The increase of $1.1 million, or 10%, 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 Members' needs.

Other operating expenses —Other operating expenses totaled $33.4 million for the year ended December 31, 2025, compared to $33.5 million for the year ended December 31, 2024.

Although the total remained relatively flat year over year, the underlying composition shifted due to the following:

• an increase in legal fees of $0.9 million primarily due to ongoing litigation, settlement, compliance, employment and general corporate related matters;

• an increase in professional services of $1.1 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.

• an increase in general and administrative expenses of $0.5 million primarily due to state sales tax expenses and company travel;

• a decrease in charitable contribution expenses of $2.0 million, primarily due to decreased amounts pledged to charitable meal donations related to Members' tips;

• a decrease in depreciation and amortization of $0.6 million, primarily due to certain previously capitalized internally developed software and leasehold improvement assets becoming fully amortized or depreciated during the prior year, partially offset by amortization of new internally developed software placed into service during the current year.

Other (income) expense

For the Year Ended

(in thousands, except for percentages)

Interest income

Interest expense

Gain on extinguishment of convertible debt

Changes in fair value of earnout liabilities

Changes in fair value of public and private warrant liabilities

Interest income — Interest income totaled $1.6 million for the year ended December 31, 2025, compared to $3.0 million for the year ended December 31, 2024.

The decrease of $1.4 million, or 47%, was primarily attributable to lower average investment balances and declining interest rates during 2025.

Interest expense — Interest expense totaled $7.0 million for the year ended December 31, 2025, compared to $8.0 million for the year ended December 31, 2024.

The decrease of $0.9 million, or 12%, was primarily attributable to lower prevailing interest rates during 2025, as well as the elimination of interest expense associated with the convertible note held by FTX Ventures Ltd., which was repurchased in January 2024.

Gain on extinguishment of convertible debt — The gain on extinguishment of convertible debt totaled $0 for the year ended December 31, 2025, compared to $33.4 million for the year ended December 31, 2024.

The decrease was attributable to the repurchase of the $105.7 million outstanding balance of the convertible note with FTX Ventures Ltd.

for $71.0 million in January 2024.

The gain was reduced by unamortized debt issuance costs of $0.03 million at

the extinguishment date and third-party costs totaling $1.3 million in conjunction with the settlement of the convertible note.

Changes in fair value of earnout liability —Changes in fair value of earnout liabilities totaled an expense of $3.3 million for the year ended December 31, 2025, compared to an expense of $1.0 million for the year ended December 31, 2024.

The increase of $2.3 million, or 240%, 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 price has generally appreciated over the last 24 months, the increase in our Class A common stock price during the year ended December 31, 2025 as compared to the increase during the year ended December 31, 2024 led to a larger remeasurement of the liability at a higher fair value, resulting in the higher expense recognized year over year.

Changes in fair value of warrant liability —Changes in fair value of our warrant liability resulted in an expense of $9.9 million for the year ended December 31, 2025, compared to an expense of $1.7 million for the year ended December 31, 2024.

The increase of $8.2 million, or 471%, 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 year ended December 31, 2025 due to a significant increase in the DAVEW warrant price and our Class A common stock price during the year ended December 31, 2025 as compared to the year ended December 31, 2024, which led to a remeasurement of the liability at a higher fair value, resulting in the higher expense recognized year over year.

Provision (benefit) for income taxes

For the Year Ended

(in thousands, except for percentages)

Provision (benefit) for income taxes

Benefit for income taxes for the year ended December 31, 2025 increased by approximately $30.3 million, or 1,222%, compared to the provision for income taxes for the year ended December 31, 2024.

The increase was primarily due to the release of $58.7 million of our valuation allowance on deferred tax assets as a discrete tax benefit during the year ended December 31, 2025, and the increase in stock-based compensation deductions as a result of our Company’s appreciated stock price.

Comparison of the Years Ended December 31, 2024 and 2023

Operating revenues

For the Year Ended

(in thousands, except for percentages)

Service based revenue, net

Processing and service fees, net

Subscriptions

Transaction based revenue, net

Service based revenue, net—

Processing fees, net

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Transaction based revenue, net for the year ended December 31, 2024 was $35.7 million, an increase of $8.8 million, or 33%, from $26.9 million, for the year ended December 31, 2023.

The increase was primarily attributable to interchange revenue earned from the growth in Members engaging with our Checking Product and card spend of $1.9 billion for the year ended December 31, 2024, an increase of 40%, from $1.4 billion for the year ended December 31, 2023, in addition to increases in fees earned from Members' funding and withdrawal-related transactions, offset by an increase of $1.2 million in interest due to Members.

The increase was primarily attributable to interchange revenue earned from the growth in Members engaging with our Checking Products and card spend of $1.9 billion for the year ended December 31, 2024, an increase of 40%, from $1.4 billion for the year ended December 31, 2023, in addition to increases in fees earned from Members' funding and withdrawal-related transactions, offset by an increase of $1.2 million in interest due to Members.

Operating expenses

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Processing and servicing costs

Advertising and marketing

Financial network and transaction costs

Advertising and activation costs

Compensation and benefits

Technology and infrastructure

Other operating expenses

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Historical loss and collections rates utilized in the calculation of the provision for credit losses improved slightly as compared to historical rates due to continued improvement in historical collections performance.

Any changes to our historical loss and collections experience directly affect the historical loss rates utilized in the calculation of the

allowance for credit losses.

Any changes to our historical loss and collections experience directly affect the historical loss rates utilized in the calculation of the allowance for credit losses.

The changes in the allowance for credit losses, period over period, have a direct impact on the provision for credit losses.

For information on the aging of ExtraCash receivables and a roll-forward of the allowance for credit losses, refer to the tables in Note 5 ExtraCash Receivables, Net in the accompanying consolidated financial statements of Dave included in this report.

Processing and service costs —Processing and servicing costs totaled $30.4 million for the year ended December 31, 2024, compared to $28.9 million for the year ended December 31, 2023.

Processing and servicing costs —Processing and servicing costs totaled $29.4 million for the year ended December 31, 2024, compared to $28.1 million for the year ended December 31, 2023.

The increase of $1.2 million, or 4%, was primarily driven by an increase in process transaction volume year over year, offset by technology enhancements made to our ExtraCash payments structure along with discounts and cost savings due to rebates and price reductions from our processors.

Advertising and marketing —Advertising and marketing expenses totaled $44.9 million for the year ended December 31, 2024, compared to $48.4 million for the year ended December 31, 2023.

Financial network and transaction costs —Financial network and transaction costs totaled $24.7 million for the year ended December 31, 2024, compared to $22.7 million for the year ended December 31, 2023.

The increase of $2.0

million, or 9%, was primarily driven by an increase in certain expenses related to our Checking Products primarily attributable to processing fees, card fees and fraud related costs associated with the growth in Members and the number of transactions processed.

Advertising and activation costs —Advertising and activation costs totaled $53.4 million for the year ended December 31, 2024, compared to $56.7 million for the year ended December 31, 2023.

The decrease of $3.2 million, or 6%, was primarily attributable to reductions in our non-media marketing spend including our brand refresh, efficiencies achieved by partnering with new marketing agencies, and optimizing our promotion strategy.

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• an increase in payroll and related costs of $1.8 million, primarily due to average headcount and salary increases and bonuses.

• a decrease in contractor and consulting fees of $0.4 million due to the average increase in employee headcount and corresponding reduction in external support for IT security, finance, marketing, design and customer service resources.

Technology and infrastructure —Technology and infrastructure expenses totaled $11.0 million for the year ended December 31, 2024, compared to $10.6 million for the year ended December 31, 2023.

The increase of $0.4 million, or 4%, was primarily due to increased costs to support the growth of our business and development of new products and features.

Other operating expenses —Other operating expenses totaled $33.5 million for the year ended December 31, 2024, compared to $31.5 million for the year ended December 31, 2023.

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• an increase in depreciation and amortization of $2.1 million, primarily due to increased internally developed capitalized costs, and depreciation related to leasehold improvements and equipment purchases;

• an increase in certain expenses related to our checking product of $1.8 million, primarily attributable to processing fees, card fees and fraud related costs associated with the growth in Members and the number of transactions processed;

• an increase in technology & infrastructure expenses of $0.5 million, primarily due to increased costs to support the growth of our business and development of new products and features;

• an increase in administrative expenses of $0.2 million, primarily due to higher sales tax expense;

• a decrease in contractor and consulting fees of $1.8 million due to the average increase in employee headcount and corresponding reduction in external support for IT security, finance, marketing, design and customer service resources;

• a decrease in insurance related costs of $1.1 million, primarily related to reductions in director and officer insurance premiums;

• a decrease in charitable contribution expenses of $0.9 million, primarily due to decreased amounts pledged to charitable meal donations related to Members' tips.

• a decrease in administrative expenses of $1.1 million, primarily due to reductions in investor and public relations fees, accounting related fees, bank service charges and other administrative expenses.

Other (income) expense

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for $71.0 million in January 2024.

The gain was reduced by unamortized debt issuance costs of $0.03 million at the extinguishment date and third-party costs totaling $1.3 million in conjunction with the settlement of the convertible note.

The gain was reduced by third-party and unamortized debt issuance costs totaling $1.3 million in conjunction with the settlement of the convertible note.

Changes in fair value of earnout liability —Changes in fair value of earnout liabilities totaled an expense of $1.0 million for the year ended December 31, 2024, compared to a benefit of $0.02 million for the year ended December 31, 2023.

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Provision for income taxes

Provision for income taxes for the year ended December 31, 2024 increased by approximately $2.4 million compared to the year ended December 31, 2023.

This increase was primarily due to a significant increase in income for the year ended December 31, 2024 compared to the year ended December 31, 2023, including a nonrecurring gain on extinguishment of convertible debt of $33.4 million.

Comparison of Years Ended December 31, 2023 and 2022

A discussion regarding our results of operations for the year ended December 31, 2023 compared to the results for the year ended December 31, 2022 can be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Dave – Results of Operations” in our Form 10-K filed with the SEC on March 5, 2024, which is available on the SEC’s website at www.sec.gov .

Provision for income taxes for the year ended December 31, 2024 increased by approximately $2.4 million, or 1,968%, compared to the year ended December 31, 2023.

This increase was primarily due to a significant increase in income for the year ended December 31, 2024 compared to the year ended December 31, 2023, including a non-recurring gain on extinguishment of convertible debt of $33.4 million.

Non-GAAP Financial Measures

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The non-GAAP financial measure is not, and should not be viewed as, a substitute for GAAP reporting measures.

Adjusted EBITDA

“Adjusted EBITDA” is defined as net income (loss) adjusted for interest expense, net, provision for income taxes, depreciation and amortization, stock-based compensation and other discretionary 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.

We believe that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors.

However, you should be aware that, when evaluating Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures.

In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Adjusted EBITDA in the same fashion.

Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA on a supplemental basis.

The reconciliation of net income (loss) to Adjusted EBITDA below should be reviewed, and no single financial measure should be relied upon to evaluate our business.

The following table reconciles net income (loss) to Adjusted EBITDA for the years ended December 31, 2024 and 2023:

Adjusted EBITDA (Loss)

"Adjusted EBITDA (loss)" is defined as net income (loss) adjusted for interest income or expense, provision (benefit) for income taxes, depreciation and amortization, stock-based compensation, dormant account fees, legal settlement and litigation expenses, gain on extinguishment of convertible debt, 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 (loss) is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP.

We believe that the use of Adjusted EBITDA (loss) provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors.

However, you should be aware that when evaluating Adjusted EBITDA (loss), we may incur future expenses similar to those excluded when calculating this measure.

In addition, our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Our computation of Adjusted EBITDA (loss) may not be comparable to other similarly titled measures computed by other companies, because not all companies calculate Adjusted EBITDA (loss) in the same fashion.

Because of these limitations, Adjusted EBITDA (loss) should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA (loss) on a supplemental basis.

You should review the reconciliation of net income to Adjusted EBITDA (loss) below, and no single financial measure should be relied upon to evaluate our business.

The following table reconciles net income (loss) to Adjusted EBITDA (loss) for the years ended December 31, 2025, 2024 and 2023:

For the Year Ended

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Interest expense, net

Provision for income taxes

Provision (benefit) for income taxes

Depreciation and amortization

Stock-based compensation

Legal settlement and litigation accrual

Discretionary income

Legal settlement and litigation expenses

Gain on extinguishment of convertible debt

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Liquidity and Capital Resources

In the past, we have financed our operations primarily from cash receipts from service and transaction-based revenues, equity financings, borrowings under the Debt Facility, issuances of convertible notes and funds received as a result of the business combination.

As of December 31, 2024 and 2023, our cash and cash equivalents, marketable securities and investments balance was $90.3 million and $155.9 million, respectively.

As an early-stage company, the expenses we have incurred since inception are consistent with our strategy and approach to capital allocation.

We expect to incur significant expenses in accordance with our operating plan as we continue to expand and improve upon our financial platform.

Our ability to access capital when needed is not assured and, if capital is not available to us when, and in the amounts needed, we could be required to delay, scale back or abandon some or all of our development programs and other operations, which could materially harm our business, prospects, financial condition and operating results.

We believe that our cash on hand should be sufficient to meet our working capital and capital expenditure requirements and fund our operations for a period of at least 12 months from the date of this report.

We may raise additional capital through private or public equity or debt financings.

The amount and timing of our future funding requirements, if any, will depend on many factors, including the pace and results of our product development efforts.

No assurances can be provided that additional funding will be available at terms acceptable to us, if at all.

If we are unable to raise additional capital, we may significantly curtail our operations, modify existing strategic plans and/or dispose of certain operations or assets.

As of December 31, 2024, we were not in compliance with a specific debt covenant under our existing Debt Facility with Victory Park Management, LLC (“Agent”).

In particular, a breach existed relating to the Minimum Receivable Loan-to-Value ("LTV Ratio"), which exceeded the allowable limits set forth in the covenant.

The Agent, on behalf of its lenders, provided a one-time limited waiver of this covenant, effective from October 18, 2024 until June 30, 2025.

This waiver is solely for that period and for addressing this specific breach, and does not constitute a waiver of any default or event of default under the Debt Facility.

Material Cash Requirements

In the normal course of business, we enter into various agreements with our vendors that may subject us to minimum annual requirements.

While our contractual commitments will have an impact on our future liquidity, we believe that we will be able to adequately fulfill these obligations through cash generated from operations and from

our existing cash balances.

Dave does not have any “off-balance sheet arrangements,” as defined by the SEC regulations.

Although we have fully implemented our remote employee workforce strategy in the U.S., we have not closed our leased office locations.

We are required to continue making our contractual payments until our operating leases are formally terminated or expire.

Our remaining leases have terms of approximately 1 to 4 years as of December 31, 2024, and we had a total lease liability of $0.6 million.

See Note 13, Leases in the notes to our consolidated financial statements for additional information regarding our lease liabilities as of December 31, 2024.

In the near term, we expect to continue to generate ExtraCash originations relying primarily on our balance sheet cash and Debt Facility, as needed.

Interest payments on term loan borrowings under the Debt Facility are required to be made on a monthly basis.

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 2025, we achieved consistent profitability

and positive operating cash flow, which has strengthened our liquidity position and reduced our reliance on external financing.

As of December 31, 2025 and 2024, our cash and cash equivalents, marketable securities, investments and restricted cash totaled $123.2 million and $91.9 million, respectively.

The increase in cash and cash equivalents, investments and restricted cash was primarily driven by the following:

Sources and Uses of Cash

Our primary sources of liquidity include:

• Cash generated from operations, including processing and overdraft service fees, subscription revenue, and transaction based revenue;

• Borrowings available under our Debt Facility with Victory Park Management, LLC;

Our primary uses of cash include:

• Funding ExtraCash originations;

• Operating expenses, including processing and servicing costs, financial network and transaction costs, advertising and activation costs, compensation and benefits, technology infrastructure, and other operating expenses;

• Share repurchases under our authorized repurchase program;

• Interest related to our debt obligations.

Debt Facility

We maintain a credit facility (the "Debt Facility") with Victory Park Management, LLC ("VPC" or "Agent").

At December 31, 2025, $75.0 million of term loans under the Debt Facility were outstanding.

See Note 11, Debt Facility in the notes to our consolidated financial statements in this report.

Additionally, we also had certain contractual payment obligations for interest owed under the $100.0 million Note we issued and sold pursuant to the Note Purchase Agreement entered into with FTX Ventures.

Interest payments relating to the Note were required to be made or added to the outstanding principal on a semi-annual basis.

On January 29, 2024, we repurchased the $105.5 million outstanding balance of the Note as of December 31, 2023 for $71.0 million.

For more information on the Note Purchase Agreement with FTX Ventures, see Note 9, Convertible Note.

We may use cash to acquire businesses and technologies.

Interest payments on term loan borrowings are required on a monthly basis.

See Note 11, Debt Facility, in the notes to our consolidated financial statements for additional information regarding the terms of the Debt Facility.

As of June 30, 2025, we were not in compliance with the Minimum Receivable Loan-to-Value ratio covenant under the Debt Facility.

The Agent provided a limited waiver of this covenant for that period.

On July 14, 2025, we entered into the Fifth Amendment to the Financing Agreement, which, among other updates, removed the Loan-to-Value ratio covenant from the agreement entirely.

As of December 31, 2025, we were in compliance with all covenants under the Debt Facility.

The Debt Facility matures in December 2026, at which time the full $75.0 million outstanding principal balance will become due.

No principal repayments have been made since inception of the facility.

We are evaluating our alternatives with respect to the Debt Facility, which may include refinancing, extending the maturity, repaying the balance in full from available cash and operating cash flows, or a combination thereof.

As of December 31, 2025, our cash and cash equivalents, investments, and restricted cash totaled $123.2 million, and we generated $290.0 million of cash from operations during the year ended December 31, 2025.

We believe we have sufficient liquidity to satisfy the obligation at maturity;

however, there can be no assurance that refinancing or replacement financing, if pursued, will be available on acceptable terms or at all.

See Note 11, Debt Facility, in the notes to our consolidated financial statements for additional information regarding the terms of the Debt Facility.

Share Repurchase Program

In March 2025, our Board of Directors authorized a share repurchase program of up to $50.0 million (the "March Repurchase Plan").

Through August 2025, we repurchased 213,525 shares of our Class A common stock for approximately $31.9 million under the March Repurchase Plan.

In August 2025, the Board authorized a new share repurchase program of up to $125.0 million, which replaced the March Repurchase Plan (the "August Repurchase Plan").

During the fourth quarter of 2025, we repurchased an additional 60,965 shares of our Class A common stock for approximately $11.8 million.

As of December 31, 2025, approximately $113.2 million remained available under the repurchase authorization.

The timing and amount of future repurchases, if any, will depend on market conditions, share price, and other factors.

See Note 21, Treasury Shares, for additional information.

Convertible Note Repurchase

In January 2024, we repurchased the $105.7 million outstanding balance of the convertible note issued to FTX Ventures Ltd.

for $71.0 million, representing a discount of approximately $34.7 million.

This transaction eliminated future interest obligations and reduced our overall debt burden.

See Note 9, Convertible Note, in the notes to our consolidated financial statements for additional information.

Assessment of Liquidity

We believe that our existing cash and cash equivalents, together with cash generated from operations and available borrowings under the Debt Facility, will be sufficient to meet our working capital requirements, capital expenditure needs, and fund our operations for at least twelve months from the date of this Annual Report on Form 10-K and for the foreseeable future.

The amount and timing of any future funding requirements will depend on many factors, including operating performance, growth initiatives, and market conditions.

We may from time to time seek to raise additional capital through equity or debt financings.

There can be no assurance that additional financing will be available on terms acceptable to us, or at all.

Material Cash Requirements

The following summarizes our material cash requirements as of December 31, 2025:

We fund ExtraCash originations primarily through operating cash flow and, as needed, borrowings under the Debt Facility.

In connection with our partnership with Coastal, we expect to transition a portion of ExtraCash receivables to an off-balance sheet structure, which is expected to reduce our funding obligations and improve capital efficiency over time.

See "Bank and Processing Partners" in Item 1 for additional information.

Contractual Obligations

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.

Debt Obligations

As of December 31, 2025, we had $75.0 million of term loans outstanding under the Debt Facility.

Interest payments are due monthly, and principal repayment is subject to the terms of the facility agreement.

See Note 11, Debt Facility, for additional information regarding repayment terms and maturities.

Off-Balance Sheet Arrangements

As of December 31, 2025, we did not have any off-balance sheet arrangements, as defined by SEC regulations, that have or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

As described in "Item 1.

Business—Bank Partners," under our Program Agreement with Coastal, we expect to transition ExtraCash receivables to an off-balance sheet structure as existing Members migrate to Coastal, which we anticipate will be substantially finalized by the end of 2026.

Once receivables are originated and retained on Coastal's balance sheet, this arrangement may constitute an off-balance sheet arrangement in future periods.

We will continue to evaluate and disclose the nature and impact of this arrangement as the transition progresses.

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.

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(in thousands)

For the Year Ended December 31,

For the Years Ended December 31,

Total cash provided by (used in):

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Cash Flows From Operating Activities

We recorded net income of $57.9 million for the year ended December 31, 2024, and a net loss of $48.5 million for the year ended December 31, 2023.

We reported cash flows provided by operating activities of $125.1 million for the year ended December 31, 2024 and cash flows provided by operating activities of $33.8 million for the year ended December 31, 2023.

During the year ended December 31, 2024, cash provided by operating activities increased compared to the year ended December 31, 2023 due to decreases in the provision for credit losses, processing costs, marketing and compensation and benefits across the organization.

Net cash provided by operating activities for the year ended December 31, 2024 included net income of $57.9 million, and excluding non-cash impacts, included an increase in prepaid expenses and other current assets of $8.2 million and an increase in receivables related to revenue from ExtraCash of $6.2 million.

These changes were offset by an increase in accrued expenses of $4.1 million, an increase in legal settlement accrual of $3.8 million, an increase in non-current liabilities of $2.9 million, an increase in accounts payable of $1.3 million, an increase in other current liabilities of $0.3 million and a decrease in prepaid income taxes of $0.1 million.

During the year ended December 31, 2023, cash provided by operating activities increased compared to the year ended December 31, 2022 due to decreases in the provision for credit losses, processing costs, marketing and compensation and benefits across the organization.

Excluding non-cash impacts, changes in cash flows from operations included an increase in receivables related to revenue from ExtraCash receivables of $4.1 million, a decrease in accounts payable of $5.9 million, a decrease in legal settlement accrual of $6.1 million, and a decrease in other current liabilities of $0.5 million.

These changes were offset primarily by a decrease in prepaid income taxes of 0.7 million, a decrease in prepaid expenses and other current assets of $3.3 million and an increase in accrued expenses of $1.7 million.

We recorded net income of $195.9 million for the year ended December 31, 2025, net income of $57.9 million for the year ended December 31, 2024 and a net loss of $48.5 million for the year ended December 31, 2023.

We reported cash flows provided by operating activities of $290.0 million for the year ended December 31, 2025, cash flows provided by operating activities of $125.1 million for the year ended December 31, 2024 and cash flows provided by operating activities of $33.8 million for the year ended December 31, 2023.

During the year ended December 31, 2025, net cash provided by operating activities was $290.0 million, an increase of $164.9 million compared to $125.1 million for the year ended December 31, 2024.

The increase was primarily driven by higher net income, which grew from $57.9 million to $195.9 million year over year, reflecting continued growth in ExtraCash origination volume and Member engagement, the transition to our simplified fee structure, and the $58.7 million income tax benefit from the release of our deferred tax asset valuation allowance.

Excluding non-cash items, changes in operating assets and liabilities were a net use of cash, driven by an increase in receivables related to revenue from ExtraCash of $16.7 million, a decrease in accrued expenses of $2.0 million, and an increase in prepaid expenses and other current assets of $1.9 million.

These uses were partially offset by an increase in other current liabilities of $3.9 million, an increase in accounts payable of $1.6 million, an increase in other non-current liabilities of $1.4 million, and an increase in legal settlement accrual of $0.7 million.

During the year ended December 31, 2024, net cash provided by operating activities was $125.1 million, an increase of $91.3 million compared to $33.8 million for the year ended December 31, 2023.

The increase was primarily driven by higher net income of $57.9 million compared to a net loss of $48.5 million in the prior year, reflecting improved operating performance across the business, including lower provision for credit losses, reduced marketing spend, and continued growth in service based and transaction based revenues.

Excluding non-cash items, changes in operating assets and liabilities were a net use of cash, driven by an increase in prepaid expenses and other current assets of $8.2 million and an increase in receivables related to revenue from ExtraCash of $6.2 million.

These uses were partially offset by an increase in accrued expenses of $4.1 million, an increase in legal settlement accrual of $3.8 million, an increase in non-current liabilities of $2.9 million, an increase in accounts payable of $1.3 million, an increase in other current liabilities of $0.3 million, and a decrease in prepaid income taxes of $0.1 million.

During the year ended December 31, 2023, net cash provided by operating activities was $33.8 million, an increase compared to the year ended December 31, 2022, primarily driven by improved operating results, including a lower net loss, reduced provision for credit losses, and decreases in processing costs, marketing expenses, and compensation and benefits.

Excluding non-cash items, changes in operating assets and liabilities included net uses of cash from an increase in receivables related to revenue from ExtraCash of $4.1 million, a decrease in accounts payable of $5.9 million, a decrease in legal settlement accrual of $6.1 million, and a decrease in other current liabilities of $0.5 million.

These uses were partially offset by a decrease in prepaid income taxes of $0.7 million, a decrease in prepaid expenses and other current assets of $3.3 million, and an increase in accrued expenses of $1.7 million.

Cash Flows From Investing Activities

During the year ended December 31, 2025, net cash used in investing activities was $202.7 million.

This amount included payments for internally developed software costs of $6.5 million, the purchase of property and equipment of $0.3 million, net ExtraCash originations and collections of $195.8 million, and the purchase of investments of $190.0 million, offset by the sale of marketable securities of $0.1 million and the sale and maturity of investments of $189.8 million.

During the year ended December 31, 2024, net cash used in investing activities was $45.8 million.

This amount included payments for internally developed software costs of $7.3 million, the purchase of property and equipment of $0.3 million, net ExtraCash originations and collections of $111.5 million, the purchase of investments of $111.3 million, and the purchase of marketable securities of $59.3 million, offset by the sale of marketable securities of $60.1 million and the sale and maturity of investments of $183.7 million.

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Cash Flows From Financing Activities

During the year ended December 31, 2025, net cash used in financing activities was $56.3 million, which consisted of the $13.3 million for the payment of taxes for shares withheld related to net share settlements and $43.7 million related to repurchases of Class A Common Stock, offset by $0.8 million for proceeds received for stock option exercises.

During the year ended December 31, 2024, net cash used in financing activities was $71.0 million, which primarily consisted of the $72.3 million paydown of the convertible note with FTX Ventures Ltd.

and associated costs, offset by $1.3 million in proceeds from the issuance of common stock for stock option exercises.

During the year ended December 31, 2023, net cash provided by financing activities was $0.02 million, which primarily consisted of payments of $0.01 million for fractional shares that resulted from our reserve stock spilt and $0.03 million in proceeds from the issuance of common stock for stock option exercises.

During the year ended December 31, 2023, net cash provided by financing activities was $0.02 million, which primarily consisted of payments of $0.01 million for fractional shares that resulted from our reverse stock spilt and $0.03 million in proceeds from the issuance of common stock for stock option exercises.

Critical Accounting Estimates

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We consider whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions warrant an adjustment to our historical loss experience.

In assessing such adjustments, we primarily evaluate current economic conditions, expectations of near-term economic trends and changes in customer payment terms and collection trends.

In assessing such adjustments, we primarily

evaluate current economic conditions, expectations of near-term economic trends and changes in customer payment terms and collection trends.

For the measurement dates presented herein, given our methods of collecting funds, and that we have not observed meaningful changes in our customers’ payment behavior, we determined that our historical loss rates remained most indicative of our lifetime expected losses.

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We recognize deferred taxes for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes.

We recorded a valuation allowance against our deferred tax assets, net of deferred tax liabilities, at December 31, 2024 and December 31, 2023.

Based upon management’s assessment of all available evidence, we have concluded that it is more-likely-than-not that the deferred tax assets, net of deferred tax liabilities, will not be realized.

Emerging Growth Company Status

We are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.

We expect to remain an emerging growth company until December 31, 2025 and to continue to take advantage of the benefits of the extended transition period, although we may decide to early adopt such new or revised accounting standards to the extent permitted by such standards.

We expect to use this extended transition

period for complying with new or revised accounting standards that have different effective dates for public and non-public companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act.

This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.

See Note 2 of our accompanying consolidated financial statements included in this report for the recent accounting pronouncements adopted and the recent accounting pronouncements not yet adopted for the years ended December 31, 2024 and 2023.

In addition, we intend to rely on the other exemptions and reduced reporting requirements provided by the JOBS Act for emerging growth companies.

Subject to certain conditions set forth in the JOBS Act, if we intend to rely on such exemptions, we are not required to, among other things:

(a) provide an auditor’s attestation report on our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

(b) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd- Frank Wall Street Reform and Consumer Protection Act;

(c) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the consolidated financial statements (auditor discussion and analysis);

and (d) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive Officer’s compensation to median employee compensation.

We will remain an emerging growth company under the JOBS Act until the earliest of (1) the last day of the fiscal year (a) following March 4, 2026, (b) in which we have total annual gross revenue of at least $1.235 billion, (c) in which we are deemed to be a “large accelerated filer” under the rules of the SEC, which means the market value of our common equity that is held by non-affiliates exceeds $700 million as of the end of the prior fiscal year’s second fiscal quarter;

and (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the previous three years.

The Company regularly assesses the need for a valuation allowance against its deferred tax assets each quarter.

In making that assessment, the Company considers both positive and negative evidence in the various jurisdictions in which it operates related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized.

We recorded a valuation allowance against our deferred tax assets, net of deferred tax liabilities, at December 31, 2024.

Based upon management’s assessment of all available evidence at December 31, 2024, we concluded that it was more-likely-than-not that the deferred tax assets, net of deferred tax liabilities, will not be realized.

As of December 31, 2025, based on all available positive and negative evidence, having demonstrated sustained profitability, which is objective and verifiable, and taking into account anticipated future earnings, the Company has concluded that it is more likely than not that its U.S.

federal and state deferred tax assets will be realizable.

As such, we released $58.7 million of our valuation allowance associated with the U.S.

federal and state deferred tax assets during the year ended December 31, 2025.

On June 27, 2025, California enacted legislation requiring financial institutions to utilize a single sales factor apportionment method, effective for tax years beginning in 2025.

The new law decreased the Company's California apportioned income and state income tax expense in 2025 and was reflected in the our consolidated financial statements for the year ended December 31, 2025.

On July 4, 2025, new U.S.

tax legislation H.R.1, known as the One Big Beautiful Bill Act ("OBBBA"), was enacted.

The OBBBA introduces significant amendments to corporate taxation, including the modification of research and development (R&D) expense capitalization, additional limitations on interest expense deductions, and provisions for accelerated depreciation of fixed assets.

During the third quarter of 2025, we completed our assessment of the OBBBA and will elect to accelerate the amortization of our previously capitalized and unamortized U.S.

research and development costs over a one-year period as permitted under the new legislation.

As a result of the election, we

expect a decrease to our deferred tax assets and income tax payable resulting from the restoration of full expensing of U.S.

research and experimentation expenditures.

The impact of this election was reflected in the our consolidated financial statements for the year ended December 31, 2025, and did not have a material impact on our effective tax rate or results of operations.

Recently Issued Accounting Standards

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis