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    CHYM
    Earnings call· Jun 2026(Q2 FY26)

    Chime Financial Q2 FY26 earnings call CHYM

    Aug 5, 2026 Source

    Executive summary

    Chime Financial Q2 FY26 — Strong Growth and Profitability Driven by Chime Prime

    Chime Financial delivered a robust second quarter, marked by accelerated revenue and active member growth, driven significantly by the successful launch of Chime Prime. The company demonstrated strong operating leverage, achieving its second consecutive quarter of GAAP net income and a substantial increase in adjusted EBITDA margin. Strategic product expansions like Chime Invest and a new revolving credit product aim to attract higher-income segments and deepen member engagement, while enterprise partnerships are poised to contribute meaningfully to future growth.

    Highlights

    9

    • Active members grew 20% year-over-year, reaching 10.4 million.

    • Revenue increased 27% year-over-year.

    • Adjusted EBITDA margin expanded to 15%, up 12 points year-over-year.

    • The company posted its second consecutive quarter of positive GAAP net income ($28 million).

    • MyPay transaction profit tripled year-over-year to $73 million.

    • Instant Loans originations grew nearly 70% quarter-over-quarter to $300 million.

    • Secured a new $500 million warehouse facility with Goldman Sachs to fund liquidity products.

    • Transaction margin grew 4 percentage points year-over-year to 73%.

    • Raised full-year FY26 revenue guidance to $2.725B-$2.745B and adjusted EBITDA to $465M-$475M.

    Concerns

    3

    • Workforce reduction of approximately 10% was announced to create a flatter organization.

    • Modestly higher contra-revenue rewards costs in Q2 due to Chime Prime's 5% cash-back offer, particularly in the gas category.

    • CFO Matt Newcomb announced his decision to step down after a decade with the company.

    Guidance & targets

    11
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $680 million and $690 million
    high materiality
    High
    Q3 FY26 Adjusted EBITDA
    $105 million and $110 million
    high materiality
    High
    Full-year FY26 Revenue
    $2.725 billion and $2.745 billion
    high materiality
    High
    Full-year FY26 Adjusted EBITDA
    $465 million and $475 million
    high materiality
    High
    Full-year FY26 Incremental Adjusted EBITDA Margin
    north of 60%
    medium materiality
    High
    Chime Enterprise member growth contribution
    meaningful contributor to direct to positive growth
    medium materiality
    Medium
    Instant Loans Annualized Revenue Run Rate
    more than $100 million
    medium materiality
    High
    Full-year FY26 Net New Active Members
    1.8 million
    high materiality
    High
    Payroll costs
    flat relative to 2026
    medium materiality
    High
    MyPay loss rates
    slight increase
    medium materiality
    High
    Payments revenue net take rates
    grow 2 basis points year-over-year
    medium materiality
    High

    Operational metrics

    27
    Revenue growth
    27%YoY
    Q2 FY26

    Accelerated growth on a year-over-year basis.

    Adjusted EBITDA margin
    15%up 12 points YoY
    Q2 FY26

    Demonstrating structural operating leverage.

    GAAP Net Income
    positivesecond consecutive quarter
    Q2 FY26

    The company posted positive GAAP net income.

    ARPAM
    $260up 6% YoY
    Q2 FY26

    Accelerated ARPAM growth concurrently with active member growth.

    Chime Prime ARPAM vs Average
    more than doublevs average Chime member
    Q2 FY26

    Prime members spend more, have higher product attach rates, and are more likely to adopt Chime card.

    Purchase and OIT volume growth
    20%YoY
    Q2 FY26

    Accelerated by Chime Prime. Broad-based growth, not just from higher gasoline prices.

    Purchase and OIT volume growth (ex-gasoline)
    19%YoY
    Q2 FY26

    Growth in transaction volumes excluding gasoline sales.

    Credit mix of total purchase volume
    27%up from 23% in Q1
    Q2 FY26

    Chime Prime is driving Chime card adoption, which earns higher interchange rates.

    Payments and OIT revenue growth
    21%YoY
    Q2 FY26

    Effectively traded 1 basis point of take rates for 5 points of volume growth acceleration.

    Platform revenue growth
    48%YoY
    Q2 FY26

    Driven by Chime Prime members being prequalified for instant loans.

    Instant Loans origination volume
    $300 millionup nearly 70% QoQ
    Q2 FY26

    Strong loss rate performance seen across cohorts, particularly among repeat borrowers.

    MyPay origination volumes
    $4.5 billion
    Q2 FY26

    At loss rates of 90 basis points.

    MyPay transaction profit dollars
    $73 millionmore than tripled YoY
    Q2 FY26

    Result of strong originations and low loss rates.

    Transaction margin
    73%grew 4 percentage points YoY
    Q2 FY26

    Driven by strong loss rate performance.

    Overall transaction profit growth
    36%YoY
    Q2 FY26

    Along with growth in actives and ARPAM.

    Dollar-based transaction profit retention
    over 100%net of churn
    cohorts

    Cohorts nearly triple in RPM as they mature.

    LTV to CAC
    up to 9x
    recent cohorts

    Strengthened by Prime, indicating attractive unit economics.

    Adjusted EBITDA
    $102 million
    Q2 FY26

    Achieved in Q2 FY26.

    Net Income
    $28 million
    Q2 FY26

    GAAP net income for the quarter.

    Restructuring charges (net cash)
    $16 million to $20 million
    Q3 FY26

    Expected to be recognized in Q3 FY26, partially offset by $9 million to $12 million reversal in noncash stock-based compensation.

    Net income impact from restructuring
    $6 million to $9 million
    Q3 FY26

    Expected impact to net income in Q3 FY26.

    Cost to serve reduction
    10%average
    each of the last 4 years

    A reflection of digital-first model, enhanced by AI.

    MyPay loss rates
    90 basis points
    Q2 FY26

    Loss rates for MyPay originations, below 1%.

    MyPay revenue growth
    47%YoY
    Q2 FY26

    Strong revenue growth for MyPay.

    MyPay transaction profit margin
    64%
    Q2 FY26

    Transaction profit margin for MyPay.

    Instant Loans repeat borrower loss rates
    50% lowervs first-time borrowers
    Q2 FY26

    Strong loss rate performance for repeat borrowers, contributing to overall improvement.

    Payments revenue blended take rates
    2 bpsYoY expansion
    Q3 FY26

    Pacing to grow based on July results, after Q2 saw a 1 bps trade-off for volume growth.

    Industry KPIs

    3
    MetricValueDetails
    Active consumers10.4 millionmembers
    Client incentives rebatesmodestly higher
    Net revenue yield take rate1 basis pointbps

    Product announcements

    4
    ProductTypeDetails
    Chime Primelaunch
    Chime Investlaunch
    Revolving unsecured line of creditlaunch
    MyPay limitsupdate

    Deals & partnerships

    3
    Goldman SachsNew warehouse facility to fund growth of liquidity products.$500 million

    A testament to strong progress scaling liquidity products at low loss rates.

    Allied UniversalSigned on to offer Chime Workplace, an employee financial wellness suite featuring MyPay at work.

    Allied Universal is one of the largest employers in the U.S. with approximately 320,000 North American-based employees.

    National RetailerSigned a partnership to offer Chime Workplace.

    Has about 35,000 employees. More details to be shared upon launch.

    Risks & headwinds

    3
    Workforce reductionQ3 FY26

    approximately 10% of workforce

    Mitigation: Creates a flatter and faster organization, drives further operating leverage, particularly into 2027. Payroll costs expected to be flat relative to 2026.

    CFO transitionnext few months

    Matt Newcomb stepping down

    Mitigation: Matt Newcomb will support through search and transition. President Mark Troughton will serve as Interim CFO.

    Higher rewards costsQ2 FY26

    modestly higher than anticipated

    Mitigation: Expected to settle lower going forward; Q3 payments revenue net take rates pacing to grow 2 bps YoY. Believed to be a one-off due to gas category spending.

    What to watch in Q3 FY26

    5

    MyPay loss rates

    Q3 and Q4 FY26
    Current90 basis points
    Targetslight increase

    Why it matters

    Management expects a slight increase in MyPay loss rates due to higher limits, but anticipates it will be more than offset by increased transaction profit. Verifying this balance is key to assessing the profitability of expanded liquidity offerings.

    So you will likely see a slight increase in my pay loss rates for Q3 and Q4, but that will be much more than compensated for by increases in higher transaction profit.

    Q&A highlights

    6

    Why now, what outcomes are you solving for (product velocity, investment, earnings), and how should we think about it?

    Chris Britt stated the action is taken from a position of strength to position for the next chapter of growth, emphasizing the benefits of smaller, flatter teams using AI for faster execution and reduced bureaucracy. Matt Newcomb added that it drives operating leverage, with payroll costs expected to be flat in FY27 relative to FY26.

    “we want to make sure that we are well positioned for this next chapter of growth. And I think we always need to be willing to evolve the organization and be willing to make changes to stay lean to be flat flatter and to be more effective.”

    asked by Tien-Tsin Huang · answered by Christopher Britt

    2 min read6 chapters

    Detailed Narrative

    01

    Chime Prime Membership Success

    The newly launched Chime Prime membership tier, available to members with $3,000+ monthly direct deposits, has been a significant growth driver. It offers 5% cash back, 3.75% savings APY, higher MyPay limits, instant loan qualification, and lifestyle perks like Priority Pass lounge access. This tier is attracting higher-income consumers (fastest-growing segment is $75,000+ annual income) and deepening engagement, with Prime members generating more than double the average ARPAM.

    02

    Expansion into Wealth Management with Chime Invest

    Chime launched Chime Invest, marking its entry into long-term wealth building. This product offers managed portfolios and free self-directed investing for individual equities and ETFs, seamlessly integrated into the existing banking app. The initiative aims to help more Americans participate in equity ownership and attract a broader consumer segment, leveraging the high adoption of Chime's high-yield savings product.

    03

    Chime Enterprise Momentum

    The enterprise segment secured a transformative partnership with Allied Universal, a major U.S. employer with 320,000 North American employees, to offer Chime Workplace. Another national retailer with 35,000 employees was also signed. This growing pipeline is expected to make Chime Enterprise a meaningful contributor to direct depositor growth in FY27, with early partners showing strong adoption and outperforming consumer channel customers.

    04

    Liquidity Product Performance and Expansion

    Chime's liquidity products, MyPay and Instant Loans, continue to perform strongly. MyPay transaction profit tripled year-over-year, driven by $4.5 billion in originations and improved loss rates. Instant Loans originations grew nearly 70% QoQ to $300 million, with strong loss rate performance, particularly for repeat borrowers. The company plans to expand loan eligibility, limits, and duration, including a new revolving unsecured line of credit for Prime members, supported by a new $500 million warehouse facility with Goldman Sachs.

    05

    AI Integration and Efficiency Gains

    Chime continues to scale its AI financial partner, Jade, which provides personalized advice and actions based on primary bank account data, such as spending pattern alerts. AI is also driving significant efficiency gains, contributing to a 10% average annual reduction in cost-to-serve over the last four years, enhancing the company's digital-first model and structural operating leverage.

    06

    Workforce Reorganization and Operating Leverage

    Chime announced an internal reorganization, reducing its workforce by approximately 10%. While difficult, this move is intended to create a flatter, faster organization, leveraging smaller teams and AI for increased product velocity. The restructuring is expected to drive further operating leverage, with payroll costs anticipated to remain flat in FY27 relative to FY26, despite some reinvestment of savings.

    AI-generated summary of the company’s earnings call. Not investment advice.