Chime Financial, Inc. Class A Common Stock (CHYM) Earnings

Management highlights

- 2026 started strongly with strong active member growth, taking share from large banks, achieving gap profitability, and accelerating product velocity. - Launched Chime Prime, a new premium membership tier with early encouraging signs. - Added nearly 700,000 active members in Q1, total active members reached 10.2 million. - Revenue grew 25% year over year, adjusted EBITDA margin expanded over 13 points year over year, and achieved positive gap EPS for the first time. - Extended QIIME Enterprise, signed four new employer partners in Q1 including First Student. - Deeply embedded AI across Chime, with 84% of code shipped in March developed with AI, driving increased velocity.

Guidance

- Second quarter: Expected revenue between $633 and $642 million, resulting in year - over - year revenue growth between 20 and 22 percent. Expected adjusted EBITDA between 72 and 77 million, and an adjusted EBITDA margin between 11 and 12 percent. - Full year: Expected revenue between $2.66 and $2.69 billion, year - over - year revenue growth between 22 and 23 percent. Expected full - year adjusted EBITDA of between $416 and $431 million, and an adjusted EBITDA margin of 16%. Expect an incremental adjusted EBITDA margin of approximately 60% for 2026.

Segment performance

In Q1 2026, revenue grew 25% year over year, exceeding the high end of the guidance range. Adjusted EBITDA margin expanded by over 13 percentage points year over year. Net new active members added nearly 700,000, bringing total active members to a record 10.2 million. MyPay, a short - term liquidity product, has a run rate of over $400 million, and its transaction profit was up over tenfold year over year. Instant loans saw $180 million originated in Q1, with scaling access and potential to contribute to transaction profit growth in the coming quarters.

Risks & headwinds

Forward - looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described. Many of those risks and uncertainties are described in the SEC filings, including the Form 10 - K filed on March 6, 2026.

Analyst Q&A

• Q: Really great results here, guys. Just thinking about drafting off of this strong tax rebate season and some of the initiatives you guys have put in as you're thinking around additions and how it's going to track for the rest of the year, has that changed at all? And how impactful might the instant loans be as we recast our forecast for the rest of the year.

  A: We're really pleased with the continued momentum on our actives growth. Our overall growth algorithm remains strong. Top of funnel remains very healthy. Our brand awareness continues to grow. On instant loans, we've been very pleased with the progress there. We originated $180 million in the quarter of instant loans. We expect that to accelerate going forward. -

• Q: You mentioned that the above $75,000 income cohort was kind of your fastest growing segment. Can you just help us understand how you think about segmentation? And as part of that, what is their attached rate or pacing compared to maybe the rest of the customer base as a whole?

  A: We're really excited about the progress that we're making across really a wide range of segments that we serve. We see retention rates that are similar to or right at the same level as the rest of the portfolio. And we see very high levels of product attached that are similar to all of our cohorts as they continue to age. -

• Q: The fiscal year guide was increased more than the 1QB, which is great to see. So the business momentum is pretty obvious. Now, was the second quarter guide more conservatism given the seasonality there and not a read on decelerated momentum in the business or anything like that into the second half? And for Chime Prime, what are the early adoption eligibility or activation rates?

  A: As it relates to the guide, on the top line, we do face a more difficult year - over - year growth comparable in Q2. On bottom line, we do expect to see our normal step down from Q1 seasonally high transaction margin and we expect to invest behind our Chime Prime launch in Q2. It's really early days on Chime Prime, but we are seeing already that it is demonstrated to be effective in driving higher levels of direct deposits and higher levels of direct deposit retention and increased adoption of Chime Card. -

• Q: On Chime Prime, how are you thinking about the impact of that push as it relates to net ads specifically? And particularly in 2Q, is there any expectation of an offset to some of the seasonal weakness that you alluded to earlier in the second quarter? And just more broadly, what are you looking at to gauge success? And then on the Chime Prime net interchange.

  A: As we discussed, we're really excited about this launch. We are ramping up a bit of investment behind the launch. The best baseline expectation is to take a look at the cadence of seasonal net new ads that we've seen over the last few years. As it relates to take rates, on our Plus offering for take rates to be in that 175 basis point zone, whereas Chime Prime will be slightly below that. -

• Q: I wanted to ask a little bit about learnings from variable pricing in MyPay. And if that's sort of a lever you can pull to drive monetization.

  A: At a high level, we've been very pleased with my pay performance. $400 billion business now, 62% transaction profit margins, and still operating at a 1% loss rate here inside a product that's really been out for less than two years. We've been very pleased with my pay performance. $400 billion business now, 62% transaction profit margins, and still operating at a 1% loss rate here inside a product that's really been out for less than two years. -

• Q: On Chime Prime, I know the overall paybacks are very attractive. Five to six quarters, the LTV to CAG is eight or higher. Those are great numbers. For Chime Prime, I was wondering if you could talk a little bit about that CAC.

  A: It's very early days here. We've just started to roll this out. It is too early to give you a sense specifically on, you know, sort of what the unit economic equation specific to Chime Prime looks like. But again, we think this is a great add to our overall product mix and value props. And we're excited to keep you posted in the coming quarters. -

• Q: As it relates to Chime Enterprise, are you thinking about any sort of future percentage of total member ads coming from the segment? And what's the CAC relative to other traditional channels for member acquisition?

  A: Enterprise is progressing really well. It is still early days for us. We're not giving specific guidance with respect to enterprises' contribution to net ads. The CAC our enterprise is materially lower. But really, the CAC there really is a fixed cost of the enterprise division and the sales cycle rather than a sort of variable CAC. -

• Q: Hi, guys. More questions, maybe two, if I can squeeze a second one in. First, I'm primed for Chris. I'm curious, when we think about the the ramp of this offering and some of the forthcoming products or features that you mentioned outside of the really strong initial offering. How do you think about the catalyst that those forthcoming products represent. And then maybe if I could squeeze one in just on underwriting.

  A: We think that the progress we've made year - to - date has been great. We want to create an even broader set of products for our members to engage with us. On underwriting, we, as a primary account, we have a lot of unique data. Secondly, we're actually underwriting against a recurring direct deposit, so we sit top of the repayment stack. Those are two very, very significant advantages that we leverage. In addition to that, we obviously continue to use those data signals through increasingly sophisticated models.