What Chime Financial (CHYM) Said on Its Q3 Earnings Call

Key Points

• Growth and profitability accelerated: Q3 revenue rose 32% year over year to $718 million, and Chime posted its third consecutive quarter of GAAP net income, at $44 million. Adjusted EBITDA was $137 million, or 19% of revenue.
• Prime and lending products boosted member economics: Active members grew 20% to 10.9 million, while annualized revenue per active member increased 10% to $270; Prime members generated more than twice the revenue of the average member. MyPay and Instant Loans drove platform revenue up 52% to $274 million.
• Chime raised its Q4 outlook and sees further gains from Stride: It forecast Q4 revenue of $757 million to $767 million and adjusted EBITDA of $161 million to $166 million. The proposed Stride Bank acquisition, pending regulatory approval and expected to close in H1 2027, is projected to deliver more than $100 million in annual after-tax synergies.

Chime Financial NASDAQ: CHYM reported accelerating revenue growth and its third consecutive quarter of GAAP net income in the third quarter of 2026, as its Prime membership tier and lending products helped lift revenue per active member.

Revenue rose 32% from a year earlier to $718 million, compared with growth of 27% in the second quarter. Net income was $44 million, while adjusted EBITDA reached $137 million, or 19% of revenue, up 14 percentage points from a year earlier.

The financial technology company raised its fourth-quarter outlook. It expects revenue of $757 million to $767 million, representing growth of 27% to 29%, and adjusted EBITDA of $161 million to $166 million. For the full year, Chime projects revenue of $2.792 billion to $2.802 billion and adjusted EBITDA of $519 million to $524 million.

Prime helps lift member revenue

Chime added about 500,000 net active members during the quarter, ending September with 10.9 million, up 20% year over year. It added 1.8 million net active members over the preceding 12 months, a company record.

Annualized revenue per active member, or ARPAM, increased 10% to $270. President and Interim Chief Financial Officer Mark Troughton said Prime was an important contributor, with Prime members generating more than twice the ARPAM of the average active member.

Co-founder and Chief Executive Officer Chris Britt said consumers earning at least $75,000 remained Chime’s fastest-growing group of new enrollees. Prime qualification requires deposits of at least $3,000 a month, and Britt said a greater proportion of higher-income members were meeting that threshold.

Chime is using Prime and new products to expand its addressable market to Americans earning up to $200,000, Britt said. The company is testing an unsecured line of credit and expects to roll out an unsecured credit card next year.

Purchase and other interchange transaction volume rose 22%, while payments and other interchange transaction revenue increased 26%. Credit accounted for 29% of purchase volume, nearly twice its share a year earlier, Troughton said.

Lending growth drives platform revenue

Platform revenue rose 52% to $274 million, led by MyPay and Instant Loans. Chime originated $5.3 billion through MyPay during the quarter after doubling the product’s maximum limit to $1,000. MyPay revenue increased 54%, and transaction profit reached $80 million, nearly double the year-earlier level.

Troughton said the MyPay loss rate was 1.1%, within the company’s stated operating range, while transaction margin fell to 58%. He said Chime had chosen to accept a modestly higher loss rate in exchange for more transaction profit dollars.

Instant Loans generated $381 million in third-quarter originations and more than $115 million in annualized revenue, ahead of the company’s expectations. More than 20% of active members were using the product, Britt said.

Troughton said Instant Loans’ loss rate rose slightly from the second quarter as more first-time borrowers joined through Prime, and it could increase modestly again in the fourth quarter. Annualized loss rates for repeat borrowers were up to 50% lower than for first-time borrowers, he said.

Stride acquisition and profitability outlook

Chime’s planned acquisition of Stride Bank remains subject to regulatory approval and is expected to close in the first half of 2027. Troughton said Chime expects more than $100 million in annual net after-tax synergies, reaching the full run rate within 12 to 18 months after closing.

Management expects lower funding costs and bank partner fees, as well as the ability to offer lending products nationwide. Troughton said MyPay is currently available to 85% of Chime’s member base.

The combined company would have had approximately $6.5 billion in assets at the end of September across Chime and its bank partners, Troughton said. Chime expects to remain below $10 billion in assets for the foreseeable future and maintain an asset-light, payments-led model.

Management also expects higher profitability over time, but Troughton cautioned against projecting incremental adjusted EBITDA margins in the 60% range seen this year. A favorable comparison with MyPay results from the prior year contributed to that performance, he said. Chime plans to provide 2027 guidance on its fourth-quarter call.

Among other growth initiatives, Britt highlighted Jade, Chime’s personal finance AI agent, which he said is available to millions of members. The company also expects its enterprise business to become a meaningful contributor to new member growth in 2027 and beyond.

About Chime Financial (NASDAQ:CHYM)

Chime Financial, Inc is a financial technology company that provides digital banking services through its Chime platform. The company offers consumer-focused spending, saving and credit products designed to be accessed primarily through mobile applications rather than traditional branch locations.

Chime's products include spending accounts with debit cards, savings accounts, direct-deposit services, early access to qualifying paychecks, fee-free overdraft protection through SpotMe, and credit-building products.

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