Shares tumbled 14.9% following earnings as investors rejected the company’s overly optimistic outlook and signs of margin pressure despite solid growth in revenues and user acquisition.
- Revenue grew 30% year-over-year to $171 million, continuing a strong topline trajectory.
- Adjusted EBITDA rose 48% to $76 million with a 44% margin, though market reaction suggests concerns over margin sustainability.
- Member additions accelerated 32% year-over-year with 951,000 new members; customer acquisition cost (CAC) held steady at $19.
- ExtraCash originations increased 27% to $2.3 billion, with average loan size reaching $215 amid recent fee cap removals.
- The market likely discounted the positive results due to cautious outlook on new product monetization timelines and possible pressure from recent pricing changes affecting long-term margins.
Community Discussion