Chime Q2 2026 Earnings: Revenue Grows 27% as GAAP Profitability Continues

Chime (Nasdaq: CHYM) reported Q2 2026 revenue of $669.8 million, up 27% year over year from $528.1 million, while diluted EPS was $0.07 versus a loss of $7.29 a year earlier. Net income reached $27.9 million and adjusted EBITDA was $102 million, supported by member growth, higher purchase volume, and faster growth in platform-related revenue. The results cover the quarter ended June 30, 2026, and were released on August 5, 2026.

Core financial results

The quarter combined double-digit revenue growth with Chime’s second consecutive quarter of positive GAAP net income. Gross profit grew faster than revenue, while non-GAAP transaction profit increased 36% and adjusted EBITDA margin expanded by more than 12 percentage points.

The year-over-year GAAP comparison was also heavily affected by stock-based compensation and related payroll tax, which fell to $71.2 million from $928.1 million.

Business and product performance

Payments revenue increased 17% to $430 million. When Outbound Instant Transfer revenue was included, the growth rate was 21%. Platform-related revenue grew considerably faster, rising 48% to $240 million and providing another major source of growth beyond card payments.

Chime Prime increased engagement and monetization

Active Members rose 20% to 10.4 million. Chime added approximately 200,000 net new Active Members from the first quarter, twice the number it typically adds during seasonally slower second quarters. Over the preceding 12 months, the company added 1.7 million net new Active Members.

Annualized average revenue per Active Member, or ARPAM, increased 6% to $260. Purchase Volume rose 17% to $38 billion, or 20% to $39.4 billion when Outbound Instant Transfer volume was included.

Management attributed the acceleration in member, Purchase Volume, and ARPAM growth partly to Chime Prime, the membership tier for customers making at least $3,000 in qualifying monthly direct deposits. Prime members generated more than twice the ARPAM of the average Active Member. Chime Card credit transactions also reached 27% of total Purchase Volume, supporting higher interchange rates net of rewards.

MyPay and Instant Loans expanded

MyPay origination volume reached $4.5 billion, while its loss rate improved to 0.9%. The combination of higher originations and lower losses lifted MyPay transaction profit to $73 million, more than three times the year-earlier amount.

Instant Loans originations increased nearly 70% from the first quarter to $300 million. Chime said repeat borrowers had loss rates up to 50% lower, although the company did not disclose the overall Instant Loans loss rate. It plans to expand eligibility, limits, and loan duration and expects the product to exit Q3 at an annualized revenue run rate above $100 million.

Chime Enterprise also signed two employer partners that collectively employ more than 350,000 people in the United States. Separately, the company launched Chime Invest, but it did not disclose any financial contribution from the new investing product.

Lower stock compensation amplified underlying margin gains

Total GAAP operating expenses fell to $573.6 million from $1.39 billion. The largest factor affecting this comparison was the decline in stock-based compensation and related payroll tax to $71.2 million from $928.1 million. Technology and development expense fell to $112.1 million from $621.8 million, while general and administrative expense declined to $80.1 million from $279.7 million; both prior-year categories included substantial stock-based compensation.

The improvement was not limited to the GAAP accounting comparison. Transaction profit grew 36%, faster than revenue, and transaction margin reached 73%. Adjusted EBITDA margin increased to 15%, with Chime reporting a 60% incremental adjusted EBITDA margin. These non-GAAP measures indicate that higher transaction volume and operating leverage also contributed to the quarter’s profitability.

On the balance sheet, cash and cash equivalents increased to $536.0 million at June 30 from $466.3 million at December 31, 2025, while marketable securities declined to $527.4 million from $587.8 million. Combined cash and marketable securities were therefore approximately $1.06 billion at both dates. Loans held for investment increased to $97.4 million from $71.6 million, alongside a new $50 million warehouse facility as Chime expanded its lending products.

Earnings guidance

Chime raised its full-year 2026 outlook following the second-quarter results, although the release did not include the prior guidance ranges. The latest outlook calls for 25% to 26% annual revenue growth and a 17% adjusted EBITDA margin.

CFO transition

Matt Newcomb will step down as chief financial officer effective August 7, 2026. Chime President Mark Troughton was appointed interim CFO, and the company initiated a search for a permanent successor. Newcomb will remain an adviser during the search and transition.

Recent insider transactions

The supplied insider data showed 1,201,300 shares purchased and 41,000 shares sold during the preceding six months, for net purchases of 1,160,300 shares. That represented 4.4% of the 27.3 million shares reported as held by insiders. The latest cash transactions with reported values were two sales by General Counsel Adam B. Frankel.

The transaction data alone does not establish insiders’ views about Chime’s valuation or future performance.

Risks investors need to watch

• Payments and interchange exposure: Payments revenue was approximately 64% of total revenue. Changes involving interchange rates, card-network fees, or bank-partner relationships could affect revenue and transaction margins.
• Credit performance as lending scales: MyPay and Instant Loans originations are expanding, while transaction and risk losses increased to $103.3 million from $98.2 million. Higher future loss rates could offset the benefits of additional lending volume.
• Member engagement and monetization: The raised outlook depends on Chime sustaining growth in Active Members, Purchase Volume, and ARPAM. Slower adoption or engagement, including within Chime Prime, would pressure both payments and platform-related revenue.
• Profitability comparability: The prior-year GAAP loss included unusually high stock-based compensation. Future GAAP improvement will depend more on revenue growth, transaction economics, and ongoing expense discipline than on repeating that year-over-year cost reset.
• Finance leadership transition: Chime is entering the second half of 2026 with an interim CFO while conducting an executive search, creating an additional execution consideration as the company scales and works toward its raised outlook.

Summary

Chime’s second quarter showed growth across members, purchase activity, and monetization, with platform-related revenue and liquidity products expanding faster than the core payments business. Lower stock-based compensation produced a large GAAP improvement, while higher transaction profit and adjusted EBITDA margins provided evidence of underlying operating leverage. The main issues to monitor are the durability of Chime Prime engagement, credit losses as originations expand, execution against the raised full-year outlook, and the CFO transition.