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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
July 31, 2026
Date of Report (date of earliest event reported)
___________________________________
Chime Financial, Inc.
(Exact name of registrant as specified in its charter)
___________________________________
| | | | | | | | |
Delaware (State or other jurisdiction of incorporation or organization) | 001-42693 (Commission File Number) | 46-0925388 (I.R.S. Employer Identification Number) |
101 California Street, Suite 500 San Francisco, CA 94111 |
(Address of principal executive offices and zip code) |
(844) 244-6363 |
(Registrant's telephone number, including area code) |
Not Applicable |
(Former name or former address, if changed since last report) |
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| | | | | |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| | | | | | | | |
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Class A common stock, par value $0.0001 | CHYM | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Item 2.02 – Results of Operations and Financial Condition.
Financial Results for the Second Quarter of 2026
On August 5, 2026, Chime Financial, Inc. (“Chime”, "the Company" "we", "us") issued a press release regarding its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report. As previously announced, Chime will host an earnings call on August 5, 2026 at 3:00 p.m. PT/6:00 p.m. ET.
The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 2.05 - Costs Associated with Exit or Disposal Activities.
On July 31, 2026, the Company committed to a reorganization (the “Plan”) to better align the Company’s personnel with its strategic priorities, improve operational efficiency, and position the Company for continued growth.
The Plan involves the reduction of approximately 10% of the Company’s total workforce. The Company estimates that it will incur approximately $16 million to $20 million in net cash restructuring charges in the third quarter of 2026, partially offset by a reversal of approximately $9 million to $12 million in non-cash stock-based compensation expense as discussed below, resulting in an expected impact to net income of $6 million to $9 million. The Company expects that most cash payments and expenses related to the reduction in personnel will be incurred by the end of the third quarter of 2026, and that the implementation of the Plan will be substantially complete by the end of the third quarter of 2026.
With respect to stock-based compensation, also as part of the Plan, the Company allowed a portion of the affected employees’ stock awards to vest that otherwise would have required continued service. However, as a result of the reversal of stock-based compensation expense that had been previously recognized (under the accelerated attribution method, generally) for the forfeited portions of the impacted employees’ stock awards, the Company expects the Plan will result in a net reduction to stock-based compensation expense of approximately $9 million to $12 million, most of which will be recognized in the third quarter of 2026.
The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the implementation of the Plan. The Company intends to exclude the net impact of the Plan from its non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA margin.
Item 5.02 - Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Agreements of Certain Officers.
On August 5, 2026, the Company announced that Matthew Newcomb will step down from his position as the Company’s Chief Financial Officer, effective August 7, 2026. Mr. Newcomb’s resignation is not due to any disagreement regarding the Company or any matter related to the Company’s operations, policies or practices. Mark Troughton, the Company’s President, has been appointed as the Company’s President & Interim Chief Financial Officer, effective August 7, 2026. The Company has initiated an executive search for a permanent Chief Financial Officer.
In connection with Mr. Newcomb’s resignation, the Company and Mr. Newcomb entered into a transition agreement on August 2, 2026 (the “Transition Agreement”) pursuant to which he will continue to serve the Company as an advisor through December 31, 2027 or such earlier date as determined by the Company or Mr. Newcomb (the “Separation Date”) to assist with the orderly transition of his duties and responsibilities (the “Transition Period”). During the Transition Period, Mr. Newcomb will (i) be paid his current base salary of $45,833.33 per month; (ii) be paid 100% of his on-target bonus for fiscal year 2026; and (iii) continue to be eligible for benefits and vest into Company equity awards in accordance with their terms, provided that Mr. Newcomb will not be eligible for any bonus with respect to fiscal year 2027. In consideration of Mr. Newcomb’s timely delivery of an effective release of claims in favor of the Company (the “Confirmatory Release”), his
outstanding vested nonstatutory stock options (“NSOs”) shall be amended such that the NSOs will be exercisable for a total of six (6) months after the Separation Date, provided that no NSO shall be exercisable beyond its original expiration date.
The Transition Agreement also provides that in the event Mr. Newcomb is terminated without “Cause” (as such term is defined in the Company’s Officer Severance Plan) prior to the Separation Date, the Company shall provide Mr. Newcomb with the following benefits: (i) payment of cash severance equal to the total salary he would have received for the remainder of the Transition Period; (ii) subject to Mr. Newcomb timely electing for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), payment of his COBRA premiums through December 2027; and (iii) acceleration of vesting of any stock options and restricted stock units that would have otherwise vested under the applicable equity agreements as if Mr. Newcomb remained employed through the end of the Transition Period.
The foregoing description of the material terms of the Transition Agreement with Mr. Newcomb is qualified in their entirety by reference to the full text of the Transition Agreement, which is filed as Exhibit 10.1 hereto.
Mr. Troughton, age 58, has served as the Company’s President since December 2025. He previously served as the Company’s Chief Operating Officer from November 2019 to December 2025 and as Chief Business Officer from September 2019 to November 2019. Prior to joining the Company, Mr. Troughton served as President at Ring.com from 2016 through its acquisition by Amazon in 2018, as President at Whisper from 2015 to 2016, and as President, Americas of Wonga.com from 2012 to 2013. Before that, Mr. Troughton held various senior positions at Green Dot Corporation from 2003 to 2012, including as President, Cards & Network from 2007 to 2012. Mr. Troughton is a Chartered Accountant and holds a BCom, a BCom (Hons), and an MCom, each in finance, accounting, or related subjects, from the University of Cape Town (South Africa).
In connection with his appointment as interim Chief Financial Officer, Mr. Troughton was granted restricted stock units covering 1,340,034 shares of the Company’s Class A common stock, which will vest quarterly over a four-year period. No other changes were made to the compensation of Mr. Troughton in connection with this appointment.
There are no arrangements or understandings between Mr. Troughton and any other persons, pursuant to which he was appointed as interim Chief Financial Officer, no family relationships among any of the Company’s directors or executive officers and Mr. Troughton, and Mr. Troughton has no direct or indirect interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Forward Looking Statements
This Current Report on Form 8-K (“Current Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” "aim", "try", “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements in this Current Report include, but are not limited to, statements regarding expectations related to the costs, timing, financial, strategic, and operational impacts of the Plan.
The Company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include the possibility that: there are impediments to the Company’s ability to execute the Plan or related initiatives as currently contemplated; the actual charges in implementing the Plan or related initiatives are higher than anticipated; there are changes to the assumptions on which the estimated charges associated with the Plan or related initiatives are based; the Company is unable to achieve projected cost savings in connection with the Plan or related initiatives; there are unintended consequences from the Plan or related initiatives that impact the business; there are changes in the macroeconomic environment that impact the business; or we are unable to make accurate predictions about the Company’s future performance due to its limited operating history. The forward-looking statements contained in this Current
Report are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q. All forward-looking statements in this Current Report are based on information available to Chime and assumptions and beliefs as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, except as required by law.
Item 9.01 - Financial Statements and Exhibits.
Exhibits
| | | | | | | | |
Exhibit No. | | Description |
10.1 | | Transition Agreement between Mr. Newcomb and the Company |
99.1 | | Press release dated August 5, 2026 |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | | | | |
| | Chime Financial, Inc. |
| | | |
August 5, 2026 | | By: | /s/ Adam Frankel |
| | Name: | Adam Frankel |
| | Title: | General Counsel and Corporate Secretary |
Chime Reports Second Quarter 2026 Financial Results
27% year-over-year revenue growth exceeds guidance
Chime Prime™ launch fuels accelerating growth in Active Members, Purchase Volume, and ARPAM
Achieves second consecutive quarter of GAAP profitability and raises full-year outlook
SAN FRANCISCO – (BUSINESS WIRE) – Aug. 5, 2026 – Chime® (Nasdaq: CHYM) today reported financial results for the quarter ended June 30, 2026.
"We delivered another strong quarter, with accelerating revenue growth, expanding margins, and a second consecutive quarter of GAAP profitability," said Chris Britt, CEO and Co-founder of Chime. "The strong adoption of Chime Prime, continued momentum across our liquidity products, and major new Chime Enterprise employer partnerships show that our strategy is working. As we continue to expand our product portfolio and deepen member engagement, we believe we are well positioned to achieve our ambition to be the market leader in primary bank account relationships in the U.S."
Second Quarter 2026 Financial Highlights
We reported strong top-line and bottom-line growth in the second quarter, exceeding our guidance. These results build on our seasonally strong first quarter, when tax refund activity drives seasonally high transaction volumes and pulls forward member acquisition and reengagement.
•Revenue was $670 million, up 27% year over year.
◦Payments revenue grew 17% year over year to $430 million, and 21% year over year when combined with Outbound Instant Transfer (OIT) revenue. The launch of Chime Prime, our membership tier for members making qualifying direct deposits of $3,000 or more per month, contributed to an acceleration in Purchase Volume (PV) growth and, in turn, payments revenue growth.
◦Platform-related revenue grew 48% year over year to $240 million.
•Gross profit was $595 million, yielding an 89% gross margin.
•Transaction profit (non-GAAP) grew 36% year over year to $492 million, yielding a 73% transaction margin.
•Net income was $28 million and net margin was 4%, delivering our second consecutive quarter of positive GAAP net income.
•Adjusted EBITDA (non-GAAP) was $102 million. Adjusted EBITDA margin of 15% expanded more than 12 percentage points year over year, translating to a 60% incremental adjusted EBITDA margin.
•Active Members grew 20% year over year to 10.4 million. Over the last year, we added 1.7 million net new Active Members, more than any consecutive 12-month period in our history. In Q2, we added approximately 200,000 net new Active Members quarter over quarter, twice as many as we typically add in seasonally slower second quarters.
•Average Revenue per Active Member (ARPAM) grew 6% year over year to $260.
•PV growth accelerated to 17% year over year to $38 billion and 20% year over year to $39.4 billion when including OIT volume.
Business Highlights
•Chime Prime accelerates member engagement: In Q2, Chime Prime fueled the acceleration in Active Member, PV, and ARPAM growth. We added more members who deposit at least $3,000 per month than ever before. Our fastest-growing segment continues to be members making $75,000 and more annually, who are increasingly depositing more of their income to Chime. Chime Prime is also driving Chime Card
adoption, which earns higher interchange rates, net of rewards, and credit mix is now at 27% of total PV. Chime Prime members generated more than double the ARPAM of the average Active Member.
•MyPay® transaction profit dollars more than tripled: MyPay origination volume grew to $4.5 billion in Q2, while the loss rate improved to 0.9%. Strong origination volume and a lower loss rate drove MyPay transaction profit dollars to $73 million, more than tripling the amount in one year.
•Instant Loans expansion: Instant Loans originations grew nearly 70% quarter over quarter to $300 million, while loss rate performance remained strong, with up to 50% lower loss rates for repeat borrowers. We see significant growth potential as we expand loan eligibility, increase limits and duration, and serve higher-income segments with greater liquidity needs. Based on this momentum, we expect Instant Loans to exit Q3 with an annualized revenue run rate of more than $100 million.
•Chime Enterprise continued momentum: Chime Enterprise recently signed two major new employer partners, including Allied Universal, one of the largest employers in the U.S., and a large national retailer. Together, these companies employ more than 350,000 people across the U.S.
•Chime Invest™ launches: We expanded our product portfolio with the launch of Chime Invest, bringing commission-free investing and expert-managed portfolios with no account minimums1 into the Chime app. By adding investing to where members already get paid, spend, save, and build credit, we're strengthening Chime's role as their primary financial relationship and expanding our ability to serve more Americans across every stage of their financial journey.
Third Quarter and Full-Year 2026 Outlook
We are raising our full-year 2026 guidance based on second-quarter performance. For the full year of 2026, we now expect:
•Revenue between $2.725 and $2.745 billion, representing year-over-year revenue growth between 25% and 26%.
•Adjusted EBITDA between $465 and $475 million, with an adjusted EBITDA margin of 17%, representing an incremental adjusted EBITDA margin of approximately 63%.
For the third quarter of 2026, we expect:
•Revenue between $680 and $690 million, resulting in year-over-year revenue growth between 25% and 27%.
•Adjusted EBITDA between $105 and $110 million, with an adjusted EBITDA margin between 15% and 16%.
The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and is subject to a number of risks. See the cautionary note regarding “Forward-Looking Statements” below.
CFO Transition
Chime today also announced that Matt Newcomb is stepping down as Chief Financial Officer, effective Friday, August 7, 2026. Mark Troughton, Chime's President, has been appointed President & Interim Chief Financial Officer. Mr. Troughton is a seasoned public company executive and Chartered Accountant with deep knowledge of
1 Investment advisory services provided by Atomic Invest LLC (“Atomic”), an SEC registered investment adviser. Chime is a paid promoter of Atomic and receives compensation based on the assets of referred clients, which creates an incentive for Chime to refer clients to Atomic. See the Atomic Invest Promoter Disclosure Statement for more information. Members can buy stocks and ETFs commission-free; other fees and expenses may apply. Investments in securities: Not FDIC Insured, Not Bank Guaranteed, May Lose Value. Investing involves risks, including the possible loss of principal.
Chime's business. In his current role, he oversees Operations, Risk, Lending, Corporate Development, and Strategy, and has been instrumental in shaping the company's growth and operating model. The Company has initiated an executive search for a permanent Chief Financial Officer. To ensure a seamless transition, Mr. Newcomb will remain with Chime as an advisor during the search and leadership transition period.
“Over his 10-year tenure, Matt has been instrumental to the success of Chime. He drove our financial and investment strategy as we pioneered a new category and scaled our business through multiple private financing rounds, and guided us through our IPO and transition to a public company. His impact on Chime extended well beyond his role as CFO and, while we will all miss Matt, he has earned a well-deserved break,” said Mr. Britt. “Mark is one of Chime’s most seasoned executives with deep knowledge of our business and financials. Having worked alongside Mark for more than 20 years, I know he has the experience to lead our finance team through this transition to a new CFO.”
Conference Call Information
Chime will host a conference call to discuss its second quarter 2026 financial results and financial outlook at 3 p.m. Pacific Time (6 p.m. Eastern Time) today. A live webcast of the earnings conference call will be accessible on the Events & Presentations section of Chime's Investor Relations website at investors.chime.com. A replay will be available on the website following the call.
An investor presentation, including supplemental financial information and reconciliation of certain non-GAAP financial measures to their nearest comparable GAAP measures, will be available through Chime's Investor Relations website at investors.chime.com.
About Chime
Chime (Nasdaq: CHYM) is a financial technology company founded on the premise that core banking services should be helpful, easy, and free. We offer a broad range of low-cost banking, payments, lending, and investing products that address the most critical financial needs of everyday people. Our member-aligned business model has helped millions of people to unlock financial progress™. Funds in Chime deposit accounts are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits*.
*Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. FDIC deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category.
Contacts
Investors and Analysts:
ir@chime.com
Press:
press@chime.com
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “goal,” “objective,” “seek,” or “continue,” or the negative of these words or other similar terms or expressions that concern Chime’s expectations, strategy, plans, or intentions.
Forward-looking statements in this release may include, among others, statements relating to our future results of operations or financial performance; expectations regarding certain of our key financial and operating metrics; our business and growth strategy, including future product development plans; our ability to attract and retain Active
Members and develop primary account relationships; our market opportunity; the performance of newly launched products and innovations; our technological capabilities; the demand for Chime’s products and services; our expectations and management of future growth and acceleration; and our expectations regarding our industry and traditional banks. Investors should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at the time those statements are made or on management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. These risks and uncertainties include risks related to our ability to attract and retain Active Members; our relationships with our bank partners; changes in rules and practices concerning interchange fees, card network fees, and other fees and assessments; our ability to maintain and protect our brand; our ability to maintain member satisfaction and provide reliable member support; our ability to develop new products and enhancements for existing products; our reliance on third parties and their systems; our history of net losses and ability to achieve and maintain profitability; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our most recent Quarterly Report on Form 10-Q. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. Except as required by law, Chime does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Non-GAAP Financial Measures
To supplement our consolidated financial information prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use certain financial measures that are not prepared in accordance with GAAP, including transaction profit, transaction margin, adjusted EBITDA, and adjusted EBITDA margin, to facilitate analysis of our financial trends and for internal planning and forecasting purposes. We use these non-GAAP financial measures in conjunction with GAAP measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-GAAP financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected on our consolidated statements of operations. Accordingly, our non-GAAP financial measures are presented for supplemental purposes only and should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this release.
We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures included in this release, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these forward-looking non-GAAP metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results.
Adjusted EBITDA
We define adjusted EBITDA as net income (loss), adjusted for (i) depreciation and amortization expense, (ii) other income (expense), net, (iii) provision (benefit) for income taxes, (iv) stock-based compensation expense including related payroll tax, and (v) certain expenses that do not reflect our core operations and may vary significantly from period to period, including restructuring charges, impairment charges, stock-based charitable expense, and certain legal and regulatory charges, as applicable.
Adjusted EBITDA Margin
We define adjusted EBITDA margin as adjusted EBITDA divided by revenue.
We believe that adjusted EBITDA and adjusted EBITDA margin are key measures of our operating performance, and management uses these measures to formulate business plans, prepare budgets and forecasts, and make strategic decisions.
Transaction Profit
We define transaction profit as gross profit less transaction and risk losses.
Transaction Margin
We define transaction margin as transaction profit divided by revenue.
We believe that transaction profit and transaction margin are key measures of the incremental profit generated by member transactions.
Key Metrics Definitions
We use the following key metrics to help us evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies.
Active Members
We define an Active Member as a member who has initiated a money movement transaction on our platform in the last calendar month of the applicable period. Member-initiated money movement transactions include, but are not limited to, purchases with Chime-branded debit or credit cards, funding a member account, withdrawing funds from an ATM, sending or receiving funds with Pay Anyone, or taking or repaying a MyPay advance or an Instant Loan. Active Members are a key indicator of the scale of our engaged member base.
Average Revenue Per Active Member (“ARPAM”)
We define Average Revenue per Active Member (“ARPAM”) as revenue generated in the calendar quarter multiplied by four and divided by the average of the number of Active Members at the end of the prior quarter and the end of the current quarter. ARPAM is a key indicator of our ability to monetize member engagement, as it captures both the impact of payments revenue from Purchase Volume as well as the monetization of products that contribute to platform-related revenue.
Purchase Volume
We define Purchase Volume as the total dollar value of member purchase transactions using Chime-branded debit or credit cards during a given period, net of any adjustments or refunds. Purchase Volume is a key driver of payments revenue, because the interchange fees upon which our payments revenue is based are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card
networks. Purchase Volume is also a key indicator of aggregate member engagement. Purchase Volume does not include other types of transaction volumes such as deposits, ATM withdrawals, SpotMe and MyPay advances, Instant Loans, sending or receiving funds with Pay Anyone, outbound instant transfers, and other types of ACH or direct debit transfers.
CHIME FINANCIAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(unaudited)
| | | | | | | | | | | |
| June 30, 2026 | | December 31, 2025 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 536,045 | | | $ | 466,252 | |
| Restricted cash | 65,014 | | | 14,508 | |
| Marketable securities | 527,380 | | | 587,828 | |
| Product collateral | 204,823 | | | 251,204 | |
| Accounts receivable, net | 287,773 | | | 257,884 | |
| Loans held for investment, net | 97,398 | | | 71,581 | |
| Prepaid expenses and other current assets | 71,083 | | | 106,753 | |
| Total current assets | 1,789,516 | | | 1,756,010 | |
| Property, equipment and software, net | 97,429 | | | 94,320 | |
| Operating lease right of use assets, net | 78,864 | | | 83,429 | |
| Other assets | 30,840 | | | 30,846 | |
| Total assets | $ | 1,996,649 | | | $ | 1,964,605 | |
| Liabilities and stockholders’ equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 36,255 | | | $ | 38,680 | |
| Accrued and other current liabilities | 216,638 | | | 201,862 | |
| Product obligation | 134,324 | | | 147,382 | |
| Total current liabilities | 387,217 | | | 387,924 | |
| Operating lease liabilities, net of current portion | 117,847 | | | 123,284 | |
| Warehouse facility | 50,000 | | | — | |
| Other non-current liabilities | 36,763 | | | 51,691 | |
| Total liabilities | 591,827 | | | 562,899 | |
Stockholders’ equity: | | | |
| Preferred stock, $0.0001 par value: 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2026 and December 31, 2025. | — | | | — | |
Class A common stock, $0.0001 par value: 5,000,000,000 shares authorized, 347,106,501 shares issued and outstanding as of June 30, 2026. 5,000,000,000 shares authorized, 347,751,083 issued and outstanding as of December 31, 2025. | 28 | | | 28 | |
Class B common stock, $0.0001 par value: 65,000,000 shares authorized, 31,565,259 shares issued and outstanding as of June 30, 2026. 65,000,000 shares authorized, 32,182,289 issued and outstanding as of December 31, 2025. | 3 | | | 3 | |
Class C common stock, $0.0001 par value: 500,000,000 shares authorized, no shares issued and outstanding as of June 30, 2026 and December 31, 2025. | — | | | — | |
| Additional paid-in capital | 4,698,137 | | | 4,775,607 | |
Accumulated other comprehensive income (loss) | (548) | | | 172 | |
| Accumulated deficit | (3,292,798) | | | (3,374,104) | |
Total stockholders’ equity | 1,404,822 | | | 1,401,706 | |
Total liabilities and stockholders’ equity | $ | 1,996,649 | | | $ | 1,964,605 | |
CHIME FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, | |
| 2026 | | 2025 | | 2026 | | 2025 | | | |
| Revenue | $ | 669,768 | | | $ | 528,149 | | | $ | 1,317,155 | | | $ | 1,046,893 | | | | |
Cost of revenue(1) | 74,895 | | | 67,120 | | | 141,969 | | | 127,538 | | | | |
| Gross profit | 594,873 | | | 461,029 | | | 1,175,186 | | | 919,355 | | | | |
| Operating expenses: | | | | | | | | | | |
Transaction and risk losses | 103,287 | | | 98,247 | | | 192,192 | | | 207,392 | | | | |
Member support and operations(2) | 109,555 | | | 203,097 | | | 204,954 | | | 281,706 | | | | |
Sales and marketing(2) | 164,159 | | | 185,006 | | | 329,590 | | | 317,579 | | | | |
Technology and development(2) | 112,111 | | | 621,754 | | | 221,891 | | | 699,636 | | | | |
General and administrative(2) | 80,142 | | | 279,667 | | | 150,609 | | | 326,840 | | | | |
Depreciation and amortization(1) | 4,297 | | | 3,896 | | | 8,465 | | | 7,703 | | | | |
| Total operating expenses | 573,551 | | | 1,391,667 | | | 1,107,701 | | | 1,840,856 | | | | |
| Income (loss) from operations | 21,322 | | | (930,638) | | | 67,485 | | | (921,501) | | | | |
| Other income, net | 6,741 | | | 6,215 | | | 14,489 | | | 11,569 | | | | |
| Net income (loss) before income taxes | 28,063 | | | (924,423) | | | 81,974 | | | (909,932) | | | | |
| Provision (benefit) for income taxes | 213 | | | (1,047) | | | 668 | | | 505 | | | | |
| Net income (loss) | $ | 27,850 | | | $ | (923,376) | | | $ | 81,306 | | | $ | (910,437) | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net income (loss) per share attributable to common stockholders: | | | | | | | | | | |
| Basic | $ | 0.07 | | | $ | (7.29) | | | $ | 0.21 | | | $ | (9.44) | | | | |
| Diluted | $ | 0.07 | | | $ | (7.29) | | | $ | 0.20 | | | $ | (9.44) | | | | |
| Weighted average number of common shares outstanding used to compute net income (loss) per share attributable to common stockholders: | | | | | | | | | | |
| Basic | 379,820,643 | | | 126,620,499 | | | 380,723,765 | | | 96,412,477 | | | | |
| Diluted | 393,420,014 | | | 126,620,499 | | | 396,943,274 | | | 96,412,477 | | | | |
__________________(1)Total depreciation and amortization includes amounts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, | | |
| (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | | |
| Depreciation and amortization recorded in cost of revenue | $ | 3,260 | | | $ | 3,515 | | | $ | 6,757 | | | $ | 6,966 | | | |
| Depreciation and amortization recorded as operating expense | 4,297 | | | 3,896 | | | 8,465 | | | 7,703 | | | |
Total depreciation and amortization | $ | 7,557 | | | $ | 7,411 | | | $ | 15,222 | | | $ | 14,669 | | | |
(2)Amounts include stock-based compensation and related payroll tax as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, | | |
| (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | | |
| Member support and operations | $ | 9,515 | | | $ | 122,586 | | | $ | 18,451 | | | $ | 123,710 | | | |
| Sales and marketing | 4,521 | | | 43,403 | | | 9,114 | | | 43,886 | | | |
| Technology and development | 29,140 | | | 540,216 | | | 56,565 | | | 543,919 | | | |
| General and administrative | 28,022 | | | 221,857 | | | 51,884 | | | 225,243 | | | |
Total stock-based compensation expense and related payroll tax | $ | 71,198 | | | $ | 928,062 | | | $ | 136,014 | | | $ | 936,758 | | | |
CHIME FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
| | | | | | | | | | | | | | | | | |
| Six Months Ended
June 30, | | | | |
| 2026 | | 2025 | | | | | | |
| Operating activities: | | | | | | | | | |
| Net income (loss) | $ | 81,306 | | | $ | (910,437) | | | | | | | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | |
| Depreciation and amortization | 15,222 | | | 14,669 | | | | | | | |
| Non-cash lease expense | 4,565 | | | 3,058 | | | | | | | |
| Stock-based compensation | 130,052 | | | 918,843 | | | | | | | |
| Stock-based charitable contribution | 1,495 | | | 11,168 | | | | | | | |
| Provision for transaction dispute losses | 43,725 | | | 31,045 | | | | | | | |
| Change in fair value of product obligation | (52,282) | | | 43,579 | | | | | | | |
| Provision for credit losses | 29,362 | | | 44,096 | | | | | | | |
| | | | | | | | | |
| Amortization of premium on marketable securities | (129) | | | (2,365) | | | | | | | |
| Other | 3,197 | | | 208 | | | | | | | |
| Changes in operating assets and liabilities: | | | | | | | | | |
| Product collateral | 46,381 | | | (31,260) | | | | | | | |
| Accounts receivable, net | (31,170) | | | (14,342) | | | | | | | |
| Prepaid expenses and other assets | 35,831 | | | (1,432) | | | | | | | |
| Accounts payable | (2,425) | | | 15,954 | | | | | | | |
| Accrued and other liabilities | (45,614) | | | (93,291) | | | | | | | |
| Operating lease liabilities | (3,784) | | | (7,773) | | | | | | | |
| Settlements of the product obligation | 39,224 | | | (18,977) | | | | | | | |
| Cash flows provided by operating activities | 294,956 | | | 2,743 | | | | | | | |
| Investing activities: | | | | | | | | | |
| Purchase of marketable securities | (235,641) | | | (234,050) | | | | | | | |
| Proceeds from sales of marketable securities | — | | | 256,514 | | | | | | | |
| Proceeds from maturities of marketable securities | 292,300 | | | 123,200 | | | | | | | |
| Purchases of loans held for investment | (2,706,364) | | | (2,368,152) | | | | | | | |
| Repayments of loans held for investment | 2,652,466 | | | 2,311,634 | | | | | | | |
| Purchase of property, equipment and software | (16,560) | | | (3,631) | | | | | | | |
| Capitalization of internal-use software | (832) | | | (6,389) | | | | | | | |
| | | | | | | | | |
| Cash flows provided by (used in) investing activities | (14,631) | | | 79,126 | | | | | | | |
| Financing activities: | | | | | | | | | |
| Payment of debt issuance costs | (905) | | | (1,134) | | | | | | | |
| Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts and offering costs paid | — | | | 772,556 | | | | | | | |
| Taxes paid related to net share settlement of restricted stock units | (3,007) | | | (322,619) | | | | | | | |
| Proceeds from borrowings under the warehouse facility | 50,000 | | | — | | | | | | | |
| Proceeds from exercise of stock options | 15,960 | | | 1,127 | | | | | | | |
| Repurchases of common stock | (222,074) | | | — | | | | | | | |
| Cash flows provided by (used in) financing activities | (160,026) | | | 449,930 | | | | | | | |
| Net increase in cash and cash equivalents and restricted cash | 120,299 | | | 531,799 | | | | | | | |
| Cash, cash equivalents, and restricted cash, beginning of period | 480,760 | | | 350,000 | | | | | | | |
| Cash, cash equivalents, and restricted cash, end of period | $ | 601,059 | | | $ | 881,799 | | | | | | | |
| Cash and cash equivalents, end of the period | $ | 536,045 | | | $ | 868,284 | | | | | | | |
| Restricted cash, end of the period | 65,014 | | | 13,515 | | | | | | | |
| Cash, cash equivalents, and restricted cash, end of the period | $ | 601,059 | | | $ | 881,799 | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
CHIME FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
| | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Supplementary cash flow disclosure: | | | | | | | | | |
| Cash paid for interest | $ | 246 | | | $ | 140 | | | | | | | |
Cash paid for income taxes, net of refunds received | $ | 1,020 | | | $ | 1,043 | | | | | | | |
| Supplemental disclosures of noncash investing and financing activities: | | | | | | | | | |
| | | | | | | | | |
| Deferred offering costs not yet paid | $ | — | | | $ | 1,968 | | | | | | | |
| Reclassification of deferred offering costs to additional paid-in capital upon initial public offering | $ | — | | | $ | 14,815 | | | | | | | |
| Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | $ | — | | | $ | 2,890,121 | | | | | | | |
| Purchases of property, equipment and software in accounts payable | $ | — | | | $ | 294 | | | | | | | |
| | | | | | | | | |
Reconciliation of GAAP to Non-GAAP Results
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, | | |
| (in thousands, except percentages) | 2026 | | 2025 | | 2026 | | 2025 | | |
| Gross profit | $ | 594,873 | | | $ | 461,029 | | | $ | 1,175,186 | | | $ | 919,355 | | | |
| Gross margin | 89 | % | | 87 | % | | 89 | % | | 88 | % | | |
| Adjusted for: Transaction and risk losses | 103,287 | | | 98,247 | | | 192,192 | | | 207,392 | | | |
| Transaction profit | $ | 491,586 | | | $ | 362,782 | | | $ | 982,994 | | | $ | 711,963 | | | |
| Transaction margin | 73 | % | | 69 | % | | 75 | % | | 68 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, | | |
| (in thousands, except percentages) | | 2026 | | 2025 | | 2026 | | 2025 | | |
| Net income (loss) | | $ | 27,850 | | | $ | (923,376) | | | $ | 81,306 | | | $ | (910,437) | | | |
| Net margin | | 4 | % | | (175) | % | | 6 | % | | (87) | % | | |
| Adjusted for: | | | | | | | | | | |
| Depreciation and amortization expense | | 7,557 | | | 7,411 | | | 15,222 | | | 14,669 | | | |
Other (income) expense, net(1) | | (6,741) | | | (6,215) | | | (14,489) | | | (11,569) | | | |
| Provision (benefit) for income taxes | | 213 | | | (1,047) | | | 668 | | | 505 | | | |
Stock-based compensation expense and related payroll tax | | 71,198 | | | 928,062 | | | 136,014 | | | 936,758 | | | |
Stock-based charitable contribution expense | | 1,495 | | | 11,168 | | | 1,495 | | | 11,168 | | | |
| Adjusted EBITDA | | $ | 101,572 | | | $ | 16,003 | | | $ | 220,216 | | | $ | 41,094 | | | |
| Adjusted EBITDA margin | | 15 | % | | 3 | % | | 17 | % | | 4 | % | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
__________________
(1)Relates primarily to interest income, which consists of interest and dividends earned on our cash and cash equivalents and marketable securities.
