Strong Member Growth
Added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million (19% year-over-year growth in active members).
Chime Financial, Inc. Class A
· CHYM
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- -20.02%
- Next Earnings Date:
- 2026-08-06
Earnings Call Sentiment
PositiveThe call conveyed strong, broad-based positive momentum: record active member growth, double-digit revenue growth (25% YoY), first quarter of GAAP profitability, sizable adjusted EBITDA and transaction profit expansion, and powerful unit economics supported by MyPay and Chime Card adoption. Management is investing in Chime Prime, AI-driven product velocity, and enterprise growth—moves expected to deepen member relationships but which introduce near-term seasonality and investment-driven margin headwinds. Overall the positives (growth, profitability, product traction, and operating leverage) materially outweigh the early-stage risks and seasonal/near-term investments.
Company Guidance
Chime provided Q2 guidance for revenue of $633–$643 million (up 20%–22% year‑over‑year) and adjusted EBITDA of $72–$77 million (adjusted EBITDA margin 11%–12%), noting Q2 incremental adjusted EBITDA margins in the low‑50s as they ramp investments for Chime Prime; for full‑year 2026 they now expect revenue of $2.66–$2.69 billion (up 22%–23% YoY), adjusted EBITDA of $416–$431 million (adjusted EBITDA margin ~16%) and an incremental adjusted EBITDA margin of approximately 60% for the year. Management also said transaction margin should normalize from Q1’s 76% to roughly 70%–72% for the rest of the year, highlighted typical Q1 tax‑refund seasonality (higher Q1 net adds, lower Q2 net adds), and flagged planned Q2 investments in sales/marketing and member support for Prime.
Revenue and Profitability Milestones
Revenue grew 25% year-over-year in Q1, exceeding the high end of guidance. Delivered first quarter of positive GAAP EPS with GAAP net income of $53 million and adjusted EBITDA of $119 million (adjusted EBITDA margin 18%, up ~1,300 basis points year-over-year).
Raised Full-Year Guidance and Share Buyback
Raised full-year revenue guidance to $2.66B–$2.69B (22%–23% growth) and full-year adjusted EBITDA to $416M–$431M (16% adj. EBITDA margin). Authorized an additional $200 million share repurchase program.
Improving Unit Economics and Transaction Profit
Transaction margin improved to 76% (up 9 percentage points year-over-year) and transaction profit grew 41% year-over-year to $491 million. Incremental adjusted EBITDA margin in Q1 was 73% (company now expects ~60% incremental margin for full year).
ARPAM and Payments Momentum
Average revenue per active member (ARPAM) increased 5% year-over-year to $263. Combined payments and other transaction (OIT) revenue increased 19% year-over-year; PV and OIT volumes grew 15%.
MyPay Performance
MyPay reached a $400M+ run-rate with transaction margin ~62% and MyPay transaction profit of $64 million (up over 10x year-over-year). Loss rates held near the steady-state target of 1%; MyPay yield increased ~35% year-over-year after variable pricing rollout.
Chime Card & Credit Mix Gains
Chime Card adoption rose to nearly 50% of members as of March (from just over one-third in September). Purchase volume on credit rose to ~25% in March from 16% in September, improving take rates.
Product Velocity and AI Adoption
AI is accelerating development: 84% of code shipped in March was developed with AI (up from 29% four months earlier). Rolling out Archimedes (AI-native software factory) and Jade (AI copilot) to speed product delivery and member-facing automation.
Platform Revenue and Lending Progress
Platform-related revenue grew 50% year-over-year. Instant loans originated $180 million in Q1, doubled origination for 9- and 12-month loans quarter-over-quarter, and repeat-borrower loss rates improved as much as 50% vs. first-time borrowers.
Strong Unit Economics and Retention
Cohort dynamics show durable engagement: 15% of active members use 6+ products with ARPAM north of $500, cohorts double ARPAM as they age, dollar-based transaction profit retention over 100% net of churn, and LTV:CAC above 8x with payback periods of ~5–6 quarters.
Operator
Good afternoon, and welcome to Chime's First Quarter Fiscal 2026 Earnings Call. Following the speakers' remarks, we will open the line for your questions. As a reminder, this conference is being recorded, and a replay of this call will be available on our Investor Relations website for a reasonable period of time after the call. I'd like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you. You may begin.
Peter Stabler
Good afternoon, everyone, and thank you for joining us for Chime's First Quarter 2026 Earnings Conference Call. Joining me today are Chris Britt, our Co-Founder and CEO; and Matt Newcomb, our CFO. Mark Troughton, our President, will participate in Q&A. As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and our earnings presentation posted on our IR website at investors.chime.com. We will also make forward-looking statements on this call, including statements about our business, future outlook and goals. Such 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 our SEC filings, including our Form 10-K filed on March 6, 2026.
Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We disclaim any obligation to update any forward-looking statements, except as required by law. With that, I'll hand it over to Chris.
Christopher Britt
Than...
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