The news: Dave reported $150.8 million in revenue in Q3 2025, up 63% YoY, and a net income of $92 million. It broke even for Q3 2024, with net income of $0.5 million.

The neobank reported 843,000 new members, a 25% increase in debit card spend to $510 million, short-term advance loan originations of $2 billion, and a customer acquisition cost (CAC) of $19. (The marketwide target CAC for a new checking account is $175—more than nine times higher.)

How we got here: Dave is an app-only neobank targeting consumers who have been poorly served by traditional banks and have short-term cash flow needs. It offers a checking account (no minimum balance or overdraft fees), a debit card, budgeting tools, and interest-free cash advances. Dave generates revenue from interchange fees and miscellaneous charges and competes directly with neobank peers like Chime.

Our take: Neobanks’ original positioning as scrappy underdogs fighting the good fight against banks has transformed. It is now a story about how neobanks carved out a new niche catering to underserved customers, mostly competing with other neobanks.

While erstwhile challengers to banking’s status quo have not upended the industry, bankers shouldn’t be complacent. After a collapse in fintech funding in 2022 stamped out neobanks that didn’t have robust business models, the remaining neobanks evolved from money-losing, single-product apps into viable businesses via product diversification and growth.

The long-term impact may outweigh the near-term risks, while the biggest threat stays out of the headlines. Customers may adopt products at banks and fintechs other than their primary financial institutions, building relationships with other providers when a bank thought they would be customers for life.