Chime Raises 2026 Outlook as Q3 Revenue Grows 32%

Chime (NASDAQ: CHYM) raised its full-year 2026 revenue and adjusted EBITDA outlook after third-quarter revenue climbed 32% year over year and stronger transaction economics helped produce a third consecutive quarter of GAAP profitability.

Revenue reached $718 million for the quarter ended September 30, up from $543.5 million a year earlier. Net income was $43.7 million, representing a 6% net margin, compared with a net loss of $54.7 million in the prior-year period. Adjusted EBITDA rose to $137.3 million from $28.8 million, while adjusted EBITDA margin expanded 14 percentage points to 19%.

The financial technology company attributed the revenue performance to faster growth in both payments and platform-related revenue. Chime generates payments revenue from interchange fees on transactions made with its branded debit and credit cards, while platform-related revenue includes products and services such as MyPay, SpotMe, ATM access, high-yield savings, cash deposits, third-party partnerships and outbound instant transfers.

Member Growth and Deeper Engagement

Active Members increased 20% year over year to 10.9 million, with Chime adding 1.8 million over the preceding 12 months. Annualized average revenue per Active Member, or ARPAM, rose 10% to $270, supported by Chime Prime, Chime Card and liquidity products.

Purchase volume increased 19% to $38.5 billion. Including $1.6 billion of outbound instant transfers, combined volume reached $40 billion, up 22%. Payments and outbound instant transfer revenue grew 26%, compared with 21% growth in the year-earlier quarter.

Chime said its Prime offering is broadening the income range of members it serves and deepening product use. Prime members generate more than twice the ARPAM of the average Active Member because they deposit and spend more and use more products, according to the presentation. Enrollments among people earning at least $75,000 represent the offering’s fastest-growing income segment, while Chime said it is reaching earners with annual income of up to $200,000.

Across the platform, 17% of Active Members use at least six products per month and generate ARPAM of about $600. Chime estimated its overall lifetime-value-to-customer-acquisition-cost ratio at nearly 10 times, compared with about eight times when it became publicly traded.

Transaction Profit and Liquidity Products

Gross profit rose 36% to $646.1 million, with gross margin reaching 90%. Non-GAAP transaction profit increased 41% to $530.5 million, and transaction margin expanded five percentage points to 74%. Chime cited its proprietary ChimeCore processing platform and direct-deposit-based underwriting as contributors to transaction-margin expansion.

The company originated more than $50 billion on an annualized basis across SpotMe, MyPay and Instant Loans during the quarter. These products involve relatively small balances and short repayment periods, although their risk profiles differ.

MyPay originations reached a record $5.3 billion after Chime increased limits to $1,000. The product generated $136 million of revenue and $80 million of transaction profit, nearly double the prior-year transaction-profit level. Its loss rate was 1.1%, while transaction margin was 58%.

SpotMe recorded $6.9 billion of quarterly originations with a loss rate below 0.4%. Instant Loans generated $400 million of originations at a 6.3% loss rate. Chime said Instant Loans had an annualized revenue run rate above $115 million and were used by more than 20% of Active Members.

Operating Leverage Supports Higher Outlook

Non-GAAP operating expenses increased 13% to $396.4 million, substantially below the 32% growth in revenue. As a share of revenue, those expenses declined by 10 percentage points to 55%. Chime reported a 62% incremental adjusted EBITDA margin for the quarter.

For the fourth quarter, the company expects revenue of $757 million to $767 million, representing growth of 27% to 29%. Adjusted EBITDA is projected at $161 million to $166 million, with a margin of 21% to 22%. Management also expects a fourth consecutive quarter of GAAP net income.

Chime now forecasts full-year revenue of $2.792 billion to $2.802 billion, up from its prior range of $2.76 billion to $2.77 billion. The new range implies 28% growth. Full-year adjusted EBITDA is expected to be $519 million to $524 million, compared with the previous forecast of $481 million to $489 million, for an adjusted EBITDA margin of 19%.

The outlook excludes any contribution from Chime’s proposed acquisition of Stride Bank.

Stride Bank Deal and Product Roadmap

Chime expects to acquire Stride Bank for $590 million in cash, funded with cash on hand, with closing anticipated in the first half of 2027 subject to regulatory approval. The company expects the transaction to be accretive from closing and to generate more than $100 million of annual net after-tax synergies, with the full run rate anticipated 12 to 18 months after completion. Chime also expects one-time integration costs in 2027.

The acquisition would give Chime a national bank charter and direct control from its ChimeCore ledger through the member experience. The company said it plans to remain payments-led and asset-light, with about $6.5 billion in pro forma assets as of September 30 and total assets expected to remain below $10 billion for the foreseeable future.

Chime is also developing products including self-directed brokerage, expert-managed portfolios, an AI copilot, Visa Flex, spending insights and an unsecured credit card. Recent launches include Chime Invest beta, Joint Accounts, subscription management and budgeting tools.

The company cautioned that its outlook and acquisition plans remain subject to substantial uncertainty. Identified risks include its ability to attract and retain Active Members, dependence on bank partners and other third parties, changes in interchange and card-network fees, credit and transaction losses, evolving financial regulation, product execution and the receipt of approvals needed to complete the Stride transaction. Chime is currently a technology company rather than a bank, and banking services are provided through partner institutions.