Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 10 Jun 2026
DAVE· Technology
Dave
Dave Inc. shows strong margins but lacks a durable competitive advantage and has inconsistent profitability metrics, raising red flags for long-term investment.
Buffett fit
Weak fit
Owner
30
Durability
27
Management
42
Price
68
Score updated 27 Oct 2026 · analysis from 10 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Dave Inc., I'd focus on improving the , which sits at a mere 4.9%.
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The 10-year test raises concerns, as Dave has not been profitable in every year over the last 5 years.
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Management's share count has grown at a CAGR of 3.55%, indicating dilution rather than value creation.
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The current yield of 8.98% is decent, but the of 14.3 suggests the market is pricing in growth that may not materialize.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 81.5% is well above the sector top-quintile cutoff of 72.1%.
- 2Net margin of 40.8% ranks in the top quintile of the sector.
- 3 (FCF) of $289.71M indicates positive cash generation.
- 4Current ratio of 3.86 shows strong short-term liquidity.
Concerns
5- 1 of 5.6% is below the sector top-quintile cutoff of 11.9%, indicating weak returns on capital.
- 2 of 4.9% is significantly below the sector top-quintile cutoff of 14.7%, raising profitability concerns.
- 3The company has not been profitable in every year over the last 5 years, with at least one loss year.
- 4Share count CAGR of 3.55% suggests potential dilution of shareholder value.
Price history
$323+1.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Dave Inc. operates a financial service platform offering products like personal finance management tools and overdraft alternatives. With $511.91M in revenue, the company serves a growing customer base. However, the lack of consistent profitability, evidenced by a net income margin of 40.81%, raises questions about sustainable cash flows.
What other investors would say
The same company, judged by three other documented playbooks.
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