Chime Financial (CHYM) Q2 2025 earnings summary

Executive summary

• Achieved 37% year-over-year revenue growth in Q2 2025, with revenue reaching $528 million and adjusted EBITDA margin expanding to 3%, an 18 percentage point improvement over two years.

• Active Members grew 23% year-over-year to 8.7 million, with customer acquisition cost declining by over 10% and over half of new members acquired through organic and referral channels.

• MyPay, the earned wage access product, reached a $300 million annual revenue run-rate, tripled its transaction margin quarter-over-quarter, and drove significant ARPAM and margin improvements.

• Product innovation included launches like Chime+, Instant Loans, and the GenAI voicebot, which doubled satisfaction scores and reduced support costs.

• Brand awareness rose from 30% to 40% over two years, now rivaling the two largest U.S. banks.

Financial highlights

• Q2 2025 revenue was $528 million, up 37% year-over-year; payments revenue was $366 million (+19%), platform revenue $162 million (+113%).

• Gross profit was $461 million (87% margin); transaction profit $363 million (69% margin), aided by improved MyPay loss rates.

• Adjusted EBITDA was $16 million (3% margin), a 417% increase year-over-year.

• ARPAM grew 12% year-over-year to $245; Purchase Volume reached $32.4 billion in Q2, up 18% year-over-year.

• Net loss was $923 million, primarily due to $928 million in stock-based compensation tied to the IPO.

Outlook and guidance

• Q3 2025 revenue expected between $525–$535 million (24–27% growth), adjusted EBITDA $12–$17 million (2–3% margin).

• Full-year 2025 revenue guidance raised to $2.135–$2.155 billion (28–29% growth), adjusted EBITDA $84–$94 million (4% margin).

• Incremental adjusted EBITDA margin expected to return to mid-40% or higher by Q4 2025.

• Long-term adjusted EBITDA margin target remains 35% or higher.

• Outlook for Q3 and full year exceeds prior internal expectations.