DAVE update on Credit Risk

I posted about DAVE a while ago https://www.reddit.com/r/ValueInvesting/comments/1oohvtt/dave_q3_outperformed/ and I have position in this company. I was optimistic that time, but I missed significant factor: credit risk. Some comments pointed this out.

I also was inspired by Steve Eisman comment on some of his videos, where he described in general how Buy Now Pay Later business model works and where is the weakest point usually. It appears the company can agree to postpone payment if customer cannot pay in time. Company also can split the payment in multiple smaller parts. So instead of write off loan once delinquent, the company postpones the decision and attempts to collect later. This seems reasonable approach for both company and customer, until postponed amount is too high and business cannot compensate losses from earnings.

I decided to address this and want to share the outcome. First, I found the DAVE indeed letting customers to play later: https://support.dave.com/hc/en-us/articles/34766172134157-Can-I-have-an-extension-I-m-not-able-to-pay-what-I-owe-right-now . Quote from the url:

Can I have an extension? I’m not able to pay what I owe right now.

If on your settlement date you don't have the full amount, Dave will automatically try to take a smaller partial amount to help you chip away at the ExtraCash balance.

But what is the amount of postponed payments?

DAVE just announced in Q4 they will have 28+Days Past Due rate below 2%. Surprisingly, I not found how it calculated and did not not find it in Q3 10-Q report too. Perhaps, I will find out later. What I was able to find is the vintage analysis on the Q3 2024 and Q3 2025 10-Q reports. Basically, vintage analysis means we putting loans to buckets and each bucket represent the number of days after loan initiated. I use the word "loan" instead of "ExtraCash Receivables" often.

In table above, I see the amount of loans with age 1-10 days grown 41% year over year. This seems inline with 43% of growth in loans origination volume. All buckets with loans older than that are grown much faster. The 11-30 bucket grown 201%! Total loans amount is 62% higher.

The amount of bad loans growing much faster. This does not mean all of those loans will be not paid back to company, but this is something to be concerned about.

Just for context the amount of loans in 11-30 days bucket is larger than I would expect quarterly net income from organic operation.

I did not close my position and not jumping to conclusions yet. Company growing quite fast after all.

What do you think? Is credit risk looks like something to worry about or it is tolerable in this situation?