Dave Inc shares plummeted 21.66% in after-hours trading on Wednesday, following the release of its second-quarter 2026 financial results. The sharp decline came after the company reported revenue of $170.8 million, slightly below the consensus estimate of $171 million, along with adjusted EBITDA of $75.5 million and net income of $6.7 million.

The sell-off reflects a classic "buy the rumor, sell the news" scenario. Ahead of the earnings release, multiple investment banks had aggressively raised their price targets — Barrington Research lifted its target from $310 to a $420-$440 range with an Outperform rating, while UBS raised its target from $300 to $470 with a Buy rating. These upgrades drove the stock to approximately $424 before earnings, fully pricing in highly optimistic expectations for continued outperformance.

Dave had consistently beaten estimates in prior quarters, with Q1 adjusted EPS of $3.64 topping estimates by 26.83% and Q4 adjusted EPS of $3.69 beating by 15.6%. This set an increasingly high bar for the company, and the latest results or forward guidance failed to satisfy the elevated expectations already embedded in the stock price, triggering the sharp after-hours retreat.