Regulatory bark is louder than the bite

Research evidence excerpt

Regulatory bark is louder than the bite

Flash Note Technology | Payments, Processors & IT Services

June 11, 2026

Dave Inc. Adam Frisch Connor O'Brien 212-812-2933 212-653-9009

DAVE | $270.90 Adam.Frisch@evercoreisi.com connor.obrien@evercoreisi.com

In Line | Target Price/Base Case: $260.00 Deniz Gasimli

Commentary 212-446-9447

Deniz.Gasimli@evercoreISI.com

Quick Take: The potential impact of Dave's pending legal activity has been a frequent investor question since we launched a few

weeks ago, so we spoke with an EWA / micro-duration credit regulatory expert to help assess the risk to the company. Our

overarching take: near-term risk appears low, with civil settlements and/or minor marketing changes the most likely outcome. Over

time and in the more extreme scenarios, an active but fragmented regulatory backdrop driven by a more Democratic administration

could pressure Dave's monetization model if they win in 2028.

Whom we spoke to:

• Former regulatory and product counsel at a D2C micro-duration credit platform

Which legal proceedings are in focus?

• Russell v. Dave/Evolve: Filed April 2025, this putative class action alleges ExtraCash violates the Military Lending Act

(MLA) and Truth in Lending Act (TILA), with a later amendment adding a Georgia Payday Loan Act claim. In our view, it

is the clearest test of whether Dave's overdraft-style advance product could be recharacterized as credit, but it remains a

private civil case and is currently stayed pending the Ninth Circuit appeal.

• Mayor and City Council of Baltimore v. Dave, Inc.: Filed in December 2025, Baltimore alleges unfair and deceptive

trade practices tied to ExtraCash under the city's consumer protection ordinance. The case appears aimed more at