Dave Inc. (DAVE) Cash Flow Statement

The OCF/NI ratio of 10.23 in 2026Q2 is extreme, driven by a modest net income of $6.7M against $68.4M operating cash flow, indicating that earnings understate cash generation. However, the 2026Q1 ratio of 1.42 and 2025Q3's 0.90 show inconsistency, suggesting that net income is not a reliable predictor of cash flow. The large SBC ($16.3M in 2026Q2) and working capital changes (negative $22.5M) are key non-cash and timing factors, implying that investors should focus on operating cash flow rather than net income for valuation.

The FCF margin has more than doubled over the past two years, from 22.7% in 2024Q1 to 39.9% in 2026Q2, indicating that the business is converting revenue into cash at an accelerating rate. This trend is supported by consistent FCF generation, with 2026Q2 FCF of $68.1M, and is particularly notable given the company's high revenue growth. The minimal capex (0.1% of revenue) suggests that the asset-light model allows for nearly all operating cash flow to flow through to FCF, a key differentiator versus traditional lenders.

Capex has remained negligible, with the highest quarterly spend at $232K in 2026Q2, representing less than 0.2% of revenue. This suggests that the company's technology platform requires minimal fixed asset investment, allowing for high cash conversion. The low capital intensity is a structural advantage, as it enables Dave to scale without significant reinvestment, but it also implies that growth is dependent on variable costs like marketing and credit provisioning rather than fixed asset expansion.

The working capital changes are volatile, with a significant negative swing in 2026Q2, which may indicate an increase in outstanding advances or a timing mismatch between disbursements and repayments. This is consistent with the company's core product, where advances are made and repaid within short cycles. The negative working capital change in 2026Q2 reduced operating cash flow by $22.5M, but the overall OCF remained strong, suggesting that the company can manage these fluctuations. Investors should monitor this metric as it directly impacts cash flow and may signal changes in credit risk or seasonality.

The company has not paid dividends, but it has engaged in significant share repurchases, with $204.1M in 2026Q1 and smaller amounts in other quarters. This suggests that management views the stock as undervalued and is returning capital to shareholders, which is notable given the company's low debt-to-equity ratio of 0.21%. The buyback activity may also be a signal of confidence in future cash flows, but it also reduces cash reserves, so investors should assess the sustainability of such repurchases given the company's growth needs.

The cumulative operating cash flow of $565.3M is significantly higher than cumulative net income of $318.4M, a gap of $246.9M. This divergence suggests that the company's earnings are conservative, possibly due to non-cash charges like SBC and depreciation, or that working capital changes are favorable. The consistent OCF/NI ratios above 1 in most quarters support this, but the 2025Q3 ratio of 0.90 shows that the relationship is not always positive. This cumulative cash generation provides a cushion for growth and capital returns, but investors should be aware that the gap may narrow if working capital dynamics shift.