Chime Financial (CHYM) Q1 2026 earnings summary

Executive summary

• Achieved 25% year-over-year revenue growth in Q1 2026, reaching $647 million, and delivered first GAAP profitable quarter post-IPO with net income of $53 million, driven by record active member growth to 10.2 million and strong momentum in higher-income segments.

• Launched Chime Prime, a premium membership tier, and expanded offerings like MyPay and Instant Loans, driving deeper member engagement, higher monetization, and improved retention.

• Raised full-year 2026 revenue and adjusted EBITDA guidance, with continued investment in AI-driven product development and marketing, and announced a new $200 million share repurchase authorization.

• Demonstrated significant operating leverage and innovation, with 84% of shipped code in March developed with AI and migration to proprietary ChimeCore platform improving transaction margin.

Financial highlights

• Q1 2026 revenue was $647 million, up 25% year-over-year, with gross profit of $580 million (90% margin) and adjusted EBITDA of $119 million (18% margin, up 13 percentage points year-over-year).

• Net income reached $53 million (8% net margin), up from $12.9 million a year ago.

• Transaction profit increased 41% year-over-year to $491 million (76% margin, up 9 percentage points year-over-year).

• Payments revenue grew 15% year-over-year to $433 million; platform-related revenue rose 50% to $215 million.

• Average Revenue per Active Member (ARPAM) increased 5% year-over-year to $263.

Outlook and guidance

• Full-year 2026 revenue expected between $2.66 billion and $2.69 billion (22–23% growth); adjusted EBITDA projected at $416–$431 million (16% margin, incremental margin ~60%).

• Q2 2026 revenue guidance is $633–$643 million (20–22% year-over-year growth), with adjusted EBITDA margin of 11–12%.

• Transaction margin expected to normalize from 76% in Q1 to 70–72% for the remainder of the year due to seasonality and increased rewards costs.

• Expecting to exceed the original goal of 1.4 million net new actives for 2026.