CHYM

Overall Business Performance

• Q2 2026 delivered exceptionally strong results with outperformance across all key metrics, including 27% YoY revenue growth, 20% YoY active member growth, and accelerating card purchase volume and payment revenue growth.
• Posted the second consecutive quarter of positive GAAP net income. Adjusted EBITDA margin expanded 12 percentage points YoY to 15%, with 60% incremental margin. LTV to CAC is now 9x for recent cohorts, with payback periods of 5-6 quarters.
• CHIME has a 3-5x cost to serve advantage over legacy incumbent banks, and has reduced average cost to serve by 10% annually for the last four years, driven by its digital-first model enhanced by AI.

Product Development

• Chime Prime (launched early April 2026 for members with ≥$3,000 in monthly qualifying direct deposits) offers 5% cashback on a member-selected category, 3.75% APY on savings, higher MyPay limits, automatic instant loan qualification, credit building, and lifestyle perks. Early adoption exceeds expectations, driving both deeper engagement with existing members and acquisition of higher-income new members. A beta launch of a revolving unsecured line of credit for Prime members is planned for Q3 2026.
• QIIME Invest, launched June 2026, expands the platform beyond day-to-day banking to help members build long-term wealth, with seamless integration with the core Chime banking app. The offering includes both managed portfolios for new investors and individual securities for self-directed investors, with no minimum investment requirements.
• Jade, the AI-powered personalized financial assistant, is being scaled to all members, providing personalized spending alerts and advice that leverages data from the primary checking account to drive better member financial outcomes.
• Liquidity product origination and performance remains strong: MyPay transaction profit grew 3x YoY, and Instant Loan originations grew nearly 70% QoQ, with Instant Loans expected to exit Q3 with an annualized revenue run rate over $100 million.

Strategic Initiatives

• A 10% workforce reduction was announced as part of an internal reorganization to create a flatter, faster organization that leverages AI efficiency. The action was taken from a position of strength, to reduce bureaucracy and position the company for the next phase of growth.
• QIIME Enterprise won transformative large employer partnerships, proving the market demand for its fee-free employee financial wellness offering. Enterprise is expected to become a meaningful contributor to member growth in 2027.
• Consumer health across the member base remains strong: inflation-adjusted direct deposit income, account balances, and both discretionary and non-discretionary spending are growing, with no signs of broad consumer stress observed in lending product performance.

• Full year 2026 guidance was raised from original levels: full-year 2026 revenue is now guided to $2.725-$2.745 billion (25-26% YoY growth), and adjusted EBITDA is guided to $465-$475 billion with a 17% adjusted EBITDA margin and an incremental adjusted EBITDA margin above 60%.
• Full year 2026 net new active member guidance was raised to 1.8 million, from the original target of 1.4 million (which would be the largest annual cohort in company history).
• Q3 2026 guidance: revenue of $680-$690 million (25-27% YoY growth), adjusted EBITDA of $105-$110 million, with an adjusted EBITDA margin of 15-16%.
• Q3 2026 will recognize $16-$20 million in net cash restructuring charges from the recent workforce reorganization, with an expected $6-$9 million impact to net income, partially offset by a non-cash stock-based compensation reversal of $9-$12 million.
• Payroll costs are expected to remain flat in 2027 compared to 2026, driving additional operating leverage from the restructuring.
• Management expects net payments revenue take rates to expand 2 basis points YoY in Q3 2026, after a modest Q2 overrun in rewards costs.

1. Consumer Banking (Core Checking & Savings): Total active members reached 10.4 million at quarter-end, growing 20% year-over-year (YoY). 200,000 net new active members were added quarter-over-quarter (QoQ), twice the Q2 2025 level, with 1.7 million net new active members added over the trailing 12 months (the highest in company history). Revenue per active member (RPAM) grew 6% YoY to $260. Core payment transaction profit grew 36% YoY, with a 73% transaction margin (up 4 percentage points YoY). Purchase and OIT volume grew 20% YoY, with 19% YoY growth excluding gasoline sales. Credit mix now represents 27% of total purchase volume, up from 23% QoQ. Platform revenue grew 48% YoY.
2. Liquidity Products: MyPay origination volumes were $4.5 billion in Q2 with a 90 basis point loss rate, and transaction profit tripled YoY to $73 million. Instant Loans originations grew 70% QoQ to $300 million, with strong loss rate performance (repeat borrowers have 50% lower loss rates than first-time borrowers).
3. New Products (Chime Prime, QIIME Invest): Chime Prime (launched April 2026) is the fastest growing segment among consumers with >$75,000 annual income. Prime members generate more than double the RPAM of average members. QIIME Invest launched in June 2026, with early adoption driven by existing high savings product engagement (80% of members use Chime savings).
4. QIIME Enterprise: The segment secured two major new partnerships in Q2: Allied Universal (320,000 North American employees) and a national retailer (35,000 employees). Early enterprise-acquired direct depositors outperform consumer channel acquired members in monetization. The segment is not yet contributing meaningfully to overall revenue as of Q2 2026.

• Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from guidance, including macroeconomic risks that could impact consumer financial health, spending levels, and credit loss rates.
• Higher limits for MyPay, rolled out in Q3 2026, are expected to result in a modest increase in MyPay loss rates, though management expects this to be more than offset by higher transaction profit.
• The company relies on continued adoption of new products and member engagement to meet growth targets, and new product launches may underperform expectations.
• The CFO transition creates near-term executive leadership uncertainty while a permanent replacement is hired, though management has outlined a structured transition plan with the company's president serving as interim CFO.

Q: Why is CHIME implementing a 10% workforce reduction now, and what outcomes is management targeting? / A: Management emphasized the reorganization is being done from a position of strength, not weakness, to position CHIME for its next phase of growth. Smaller, flatter teams with fewer layers leverage AI capabilities to ship product faster, reduce natural bureaucracy that comes with company growth, and increase accountability. While the reorganization generates payroll savings, a portion of those savings will be reinvested into future growth, and it will drive additional operating leverage starting in 2027, when payroll is expected to be flat year-over-year.

Q: What is driving faster growth among higher-income (over $75,000 annual income) members, and what is the strategic opportunity for the upcoming revolving credit product? / A: Growth in higher-income members is driven by the combination of Chime Prime's compelling benefits (5% cashback, 3.75% APY, lounge access, guaranteed instant loan access) plus the recent launch of QIIME Invest, which expands CHIME's product suite to serve the needs of higher-income consumers. The revolving unsecured line of credit will be exclusively available to Chime Prime members, meeting demand for flexible liquidity from higher-income members who prefer a revolving facility over installment loans. It will be integrated directly with the Chime checking account for on-demand access, and will leverage CHIME's unique primary account data for advantaged underwriting and repayment.

Q: What does the strong consumer spending data CHIME is observing signal about overall consumer health across the member base? / A: Management noted that while consumer sentiment surveys show caution, actual observed behavior shows broad-based, resilient strength across all income segments. Overall spending, discretionary spending (entertainment, food delivery, online shopping), and savings balances are all up. While growth is faster among higher-income segments, there are no signs of stress in lower-income segments or across lending product performance. As a primary account provider, CHIME would see early signs of consumer stress, and no such signs are evident as of Q2 2026.

Q: What has Chime Prime learned from its first full quarter post-launch, and what is the mix of growth from new members versus existing member wallet share expansion? / A: Chime Prime is driving meaningful wallet share expansion among existing members, with many existing members adding more direct deposits to Chime to qualify for Prime benefits. It is also still early days for Prime as a top-of-funnel customer acquisition tool, but the early results are very strong, with more new members than ever qualifying for Prime at sign-up. Management will continue adding new features to Prime to increase its appeal for both new and existing members, particularly higher-income consumers.

Q: How is CHIME achieving such strong member growth momentum, and what is the quality of the new members being added? / A: Member growth acceleration is driven by strong unaided brand awareness, leading NPS, the introduction of Chime Prime, and improved early engagement initiatives that make it easier for new members to join. The growth is not just high quantity but also high quality: Q2 2026 saw a record number of new members qualifying for Chime Prime (≥$3,000 monthly direct deposits), and Chime Prime improves retention for existing members. The business maintains strong unit economics with 5-6 quarter payback periods and 9x LTV to CAC, justifying the raised full-year net new member target.