CHYM 10-K & 10-Q changes, risk factors and insider trading
Chime Financial, Inc. · Nasdaq · Finance Services · CIK 1795586 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Comparison not available: Not available: fewer than two 10-K filings on EDGAR to compare (only one so far)..
What changed in the latest 10-Q
Risk Factors
New heading “We rely on a variety of funding sources to support our business model. If our existing funding arrangements are not renewed or replaced or our existing funding sources are unwilling or unable to provide funding to us on terms acceptable to us, or at all, it could have a material adverse effect on our business, results of operations, financial condition, cash flows, and future prospects.”
Largest changes
“The agreements governing the Warehouse Facility require the Trust to comply with certain covenants, including covenants tied to the performance of the underlying receivables. A breach of these covenants, or other events of default under the Warehouse Facility, could result in a reduction or termination of our access to the funding available thereunder, an increase in our cost of funding, or require us to repay outstanding amounts prior to their scheduled maturity. …”see in full comparison
“We rely on a variety of funding sources to support our business model. If our existing funding arrangements are not renewed or replaced or our existing funding sources are unwilling or unable to provide funding to us on terms acceptable to us, or at all, it could have a material adverse effect on our business, results of operations, financial condition, cash flows, and future prospects.”see in full comparison
“In addition to our credit facility, we maintain a variety of funding arrangements, including the Warehouse Facility, with a diverse set of funding sources. The availability and diversity of our funding arrangements depends on various factors and are subject to numerous risks, many of which are outside of our control. Disruptions in the credit markets or other factors, such as the current inflationary environment and rising interest rates, could adversely affect the availability, diversity, cost, and terms of our funding arrangements. …”see in full comparison
“In the future, we may seek to further access the capital markets to obtain capital to finance growth. However, our future access to the capital markets could be restricted due to a variety of factors, including a deterioration of our earnings, cash flows, balance sheet quality, or overall business or industry prospects, adverse regulatory changes, a disruption to or volatility or deterioration in the state of the capital markets, or a negative bias toward our industry by market participants. …”see in full comparison
“We cannot guarantee that any facility will continue to be available to us on favorable terms, or at all, or that our lenders will continue to extend credit to us. Our funding sources may reassess their exposure to us or our products at any time, and may decline to extend uncommitted financing capacity, decline to renew or replace a facility upon its scheduled maturity, or impose higher costs or more restrictive terms as a condition to continued funding. …”see in full comparison
Further, there are a number of third parties involved in processing transactions, including card networks, which subjects us and our members to risks related to the vulnerabilities of those third parties. Our brand may be harmed by a single significant incident of fraud or increases in the overall level of fraud involving our products, bank partners, and service providers, or those of others in our industry. Elevated levels of fraud, or a significant fraud incident, involving our products could also lead our bank partners to impose additional restrictions on our programs, require enhanced controls or remediation measures, or, in more severe cases, limit, suspend, or terminate their relationships with us, any of which could disrupt our operations and adversely affect our business. Such damage may reduce the use and acceptance of our products or lead to greater regulatory scrutiny that would increase our compliance costs. Fraudulent activity may also result in business interruption, litigation, governmental investigations, financial losses, and the imposition of regulatory penalties and significant monetary fines, which may adversely affect our business, financial condition, and results of operations.see in full comparison
Full comparison: every changed paragraph (14)
•Our business depends on our strong and trusted brand,brand and related marketing, and we may fail to maintain and protect our brand, which may adversely affect our business, financial condition, and results of operations.
A number of factors may negatively affect Active Member growth and their use and adoption of our products, including if we are unable to introduce compelling products. Active Member growth and their use and adoption of our products may also be negatively affected by changes to our systems, processes, or other technical or operational requirements that impact how members access or use our products, technical or other problems that affect member experience, changes in the regulatory environment or regulations applicable to us, increased competition from traditional, online-only, or emerging financial services or financial technology companies, and harm to our brand. In addition, some products and features, including Get Paid Early, SpotMe, MyPay, Instant Loans, and Chime+, Plus, are currently available only to members who make qualifying direct deposits, such as direct depositing their paychecks, through Chime, which may limit our ability to grow these products and increase the revenue we generate from them.
Our business depends on our strong and trusted brand,brand and related marketing, and we may fail to maintain and protect our brand, which may adversely affect our business, financial condition, and results of operations.
For 2025, 2024 and 2023, we incurred net losses of $1,009.9 million, $25.3 million and $203.2 million. Although we incurred net income of $53.5$27.9 million and $81.3 million during the three and six months ended MarchJune 31,30, 2026, we intend to continue making investments in our business, including with respect to our employee base, sales and marketing, technology infrastructure, development of new products and features, acquisitions and other strategic transactions, infrastructure, expansion of operations, and general administration, including legal, regulatory, compliance, security, and accounting expenses related to our business. These investments may not result in increased revenue or growth in our business and may contribute to future losses. We have incurred, and may incur in the future, losses for a number of reasons, including further investments in our business, vesting and settlement of equity awards, unexpected expenditures or costs, and the other risks described in this “Risk Factors” section. If we are unable to successfully address these risks as we encounter them, our business, financial condition, and results of operations may be adversely affected.
Following the completion of our IPO, stock-based compensation expense related to existing RSUs and other outstanding equity awards, and those to be awarded in the future has resulted in and will continue to result in increases in our expenses in future periods. As of MarchJune 31,30, 2026, we had $626.0$550.8 million of unrecognized stock-based compensation expense related to RSUs and other outstanding equity awards expected to vest.
Further, there are a number of third parties involved in processing transactions, including card networks, which subjects us and our members to risks related to the vulnerabilities of those third parties. Our brand may be harmed by a single significant incident of fraud or increases in the overall level of fraud involving our products, bank partners, and service providers, or those of others in our industry. Elevated levels of fraud, or a significant fraud incident, involving our products could also lead our bank partners to impose additional restrictions on our programs, require enhanced controls or remediation measures, or, in more severe cases, limit, suspend, or terminate their relationships with us, any of which could disrupt our operations and adversely affect our business. Such damage may reduce the use and acceptance of our products or lead to greater regulatory scrutiny that would increase our compliance costs. Fraudulent activity may also result in business interruption, litigation, governmental investigations, financial losses, and the imposition of regulatory penalties and significant monetary fines, which may adversely affect our business, financial condition, and results of operations.
We have been, and may in the future be, subject to intellectual property rights claims by third parties, which are extremely costly to defend, may require us to pay significant damages and may limit our ability to use certain technologies,technologies or other intellectual property, which may adversely affect our business, financial condition, and results of operations.
We rely on a variety of funding sources to support our business model. If our existing funding arrangements are not renewed or replaced or our existing funding sources are unwilling or unable to provide funding to us on terms acceptable to us, or at all, it could have a material adverse effect on our business, results of operations, financial condition, cash flows, and future prospects.
In addition to our credit facility, we maintain a variety of funding arrangements, including the Warehouse Facility, with a diverse set of funding sources. The availability and diversity of our funding arrangements depends on various factors and are subject to numerous risks, many of which are outside of our control. Disruptions in the credit markets or other factors, such as the current inflationary environment and rising interest rates, could adversely affect the availability, diversity, cost, and terms of our funding arrangements. If we are unable to maintain access to, or to expand, our network and diversity of funding arrangements, our business, results of operations, financial condition, and future prospects could be materially and adversely affected.
We cannot guarantee that any facility will continue to be available to us on favorable terms, or at all, or that our lenders will continue to extend credit to us. Our funding sources may reassess their exposure to us or our products at any time, and may decline to extend uncommitted financing capacity, decline to renew or replace a facility upon its scheduled maturity, or impose higher costs or more restrictive terms as a condition to continued funding. If we are unable to maintain, renew, expand, or replace one or more of our funding arrangements on acceptable terms to us, or at all, our business, financial condition, and results of operations, including our ability to fund and grow the MyPay product, could be adversely affected.
The agreements governing the Warehouse Facility require the Trust to comply with certain covenants, including covenants tied to the performance of the underlying receivables. A breach of these covenants, or other events of default under the Warehouse Facility, could result in a reduction or termination of our access to the funding available thereunder, an increase in our cost of funding, or require us to repay outstanding amounts prior to their scheduled maturity. We have also agreed to indemnify the lenders under the Warehouse Facility against certain losses, which means that we could be required to make payments to the lenders under the Warehouse Facility under certain circumstances.
In the future, we may seek to further access the capital markets to obtain capital to finance growth. However, our future access to the capital markets could be restricted due to a variety of factors, including a deterioration of our earnings, cash flows, balance sheet quality, or overall business or industry prospects, adverse regulatory changes, a disruption to or volatility or deterioration in the state of the capital markets, or a negative bias toward our industry by market participants. Future prevailing capital market conditions and potential disruptions in the capital markets may adversely affect our efforts to arrange additional financing on terms that are satisfactory to us, if at all. If adequate funds are not available, or are not available on acceptable terms, we may not have sufficient liquidity to fund our operations, make future investments, take advantage of acquisitions or other opportunities, or respond to competitive challenges and this, in turn, could adversely affect our ability to advance our strategic plans. In addition, if the capital and credit markets experience volatility, and the availability of funds is limited, third-parties with whom we do business may incur increased costs or business disruption and this could adversely affect our business relationships with such third-parties, which in turn could have a material adverse effect on our business, results of operations, financial condition, cash flows, and future prospects.
Our Class A common stock has one vote per share, our Class B common stock has 20 votes per share, and our Class C common stock has no voting rights, except as otherwise required by law. Our Co-Founders beneficially own all of the outstanding shares of our Class B common stock. As of MarchJune 31,30, 2026, Christopher Britt, our Co-Founder, Chairman, and Chief Executive Officer, held approximately 34.0%34.5% of the voting power of our outstanding capital stock; and Ryan King, our Co-Founder and a member of our board of directors, held approximately 30.8%30.1% of the voting power of our outstanding capital stock, which voting power may increase over time as our Co-Founders exercise or vest and settle in equity awards (including in connection with the rights we granted each of our Co-Founders, pursuant to equity exchange right agreements we entered into with them, to require us to exchange any shares of Class A common stock received upon the exercise of options to purchase shares of Class A common stock or upon vesting and settlement of restricted stock units, in each case for an equivalent number of shares of Class B common stock (the “Equity Award Exchange”) outstanding at the time of the completion of the IPO. If all such equity awards held by our Co-Founders (including the RSUs granted to our Co-Founders pursuant to the 2025 Co-Founder Special Awards that vest upon the satisfaction of a service condition and achievement of certain stock price goals (the “2025 Co-Founder Special Awards”)) had been exercised or had vested and been settled, as applicable, and the resulting shares of Class A common stock had been exchanged for shares of Class B common stock pursuant to the Equity Award Exchange, in each case as of MarchJune 31,30, 2026, Messrs. Britt and King would hold approximately 39.5%40.0% and 34.0%33.5% of the voting power of our outstanding capital stock. These future issuances of our Class B common stock will further dilute the voting power of our Class A common stock.
In November 2025, our board of directors authorized a share repurchase program to repurchase up to $200.0 million of our outstanding shares of Class A common stock. In May 2026, our board of directors approved an additional $200.0 million share repurchase authorization. Under this program, repurchases may be made from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. The share repurchase program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of Class A common stock. The timing, manner, and amount of any repurchases will depend on a variety of factors, including legal requirements, price, economic and market conditions and other considerations. In addition, the United States imposes a 1% excise tax on certain stock repurchases, which may increase the costs associated with repurchasing shares of our Class A common stock. We cannot guarantee that the share repurchase program will be fully consummated or that it will enhance long-term stockholder value. The share repurchase program could also affect the trading price of our Class A common stock and increase volatility, and any announcement of a reduction, suspension or termination of the program may result in a decrease in the trading price of our Class A common stock. In addition, repurchasing shares of our Class A common stock could diminish our cash and cash equivalents and marketable securities available to fund working capital, repayment of debt, capital expenditures, strategic acquisitions, investments, or business opportunities, and other general corporate purposes.
Management's Discussion & Analysis (MD&A)
Largest changes
“In June 2026, we established a trust to enter into a credit agreement with Goldman Sachs Lending Partners LLC as the lender which provides for a commitment amount of $200.0 million, with a total facility limit of $500.0 million, maturing on June 1, 2028 (the “Warehouse Facility”), with an intent to access additional financing in support of our MyPay product and to supplement our existing bank partner model. As of June 30, 2026, $50.0 million was outstanding under the Warehouse Facility with $150.0 million of remaining committed capacity available. …”see in full comparison
“The decrease of $889.1 million in non-cash adjustments for the six months ended June 30, 2026 compared to the prior year was primarily driven by a $788.8 million decrease in stock-based compensation as the liquidity-based vesting condition for certain equity awards was met in connection with our IPO in 2025. Additionally, the change in fair value of the product obligation was $(52.3) million in the six months ended June 30, 2026, compared to $43.6 million in the prior year. …”see in full comparison
“The decrease of $4.8 million in non-cash adjustments for the three months ended March 31, 2026 compared to the prior year was primarily driven by a $55.3 million decrease in change in fair value of program obligation attributable to the growth of MyPay and Instant Loan revenue, improved MyPay loss rates, and decrease in SpotMe and other negative balances transaction and risk losses. …”see in full comparison
Member support and operations expenses for the three and six months endedsee in full comparisonMarchJune31,30, 2026increaseddecreased by$16.8$93.5 million or 46% and $76.8 million, or21%,27%, year over year driven byanaincreasedecrease in stock-based compensation and related payroll tax of$7.8$113.1 million and $105.3 million asthe liquidity-based vesting condition for certainhigher stock-basedawardscompensationwasexpensesmetwereuponrecognized as a result of our IPO in the second quarter of 2025.Additionally, thereThis wasanpartially offset by a $10.0 million and $12.7 million increaseof $5.4 millioninthird-partymembersupport and loss preventiononboarding costs in the three and six months endedMarchJune31,30,2026,2026 attributable to activation expenses associated withanChimeincrease in Active Members.Prime.
“Our transaction and risk losses will be impacted by the expansion of existing liquidity products and the introduction of new liquidity products offered through our platform. In absolute dollars, we expect that transaction and risk losses will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that transaction and risk losses will fluctuate from period to period in the near term and in the long term.”see in full comparison
Sales and marketing expenses for thesee in full comparisonthreesix months endedMarchJune31,30, 2026 increased by$32.9$12.0 million, or25%,4%, year over year driven by an increase of$25.7$42.0 million in marketing and promotional activities in thethreesix months endedMarchJune31,30, 2026 compared to the prior year.Additionally, thereThis wasanpartiallyincreaseoffset by a decrease in stock-based compensation and related payroll tax of$4.1$34.8 millionasin theliquidity-basedsixvestingmonthsconditionendedforJunecertain30, 2026 compared to the prior year as higher stock-basedawardscompensationwasexpensesmetwereuponrecognized as a result of ourIPO.IPO in the second quarter of 2025.
Full comparison: every changed paragraph (51)
This section presents management’s perspective on our financial condition and results of operations. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report on Form 10-Q,10-Q (this “Quarterly Report”), and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). This discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed elsewhere, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Financial data as of and for the three and six months ended MarchJune 31,30, 2026 and 2025 has been derived from our unaudited condensed consolidated financial statements appearing at the beginning of this Quarterly Report on Form 10-Q.Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Chime is a technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. We are not a Member of the FDIC, and FDIC-insured accounts are provided by our bank partners.
Through our broad suite of products, we have built trusted relationships with 10.210.4 million Active Members as of MarchJune 31,30, 2026. The majority of our Active Members rely on Chime to serve as their primary financial relationship, which we believe are the most valuable relationships in consumer financial services. As our members’ central financial hub, Chime becomes the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement and exceptional member satisfaction.
The following table presents a reconciliation of net income (loss) to adjusted EBITDA for each of the periods indicated:
In the second quarter of 2026, we launched Chime Prime, our premium membership tier. Chime Prime offers members cash back on a spending category of choice, which is recorded as a reduction of revenue.
We offer our members access to overa 45,000network of fee-free ATMs. Each time members withdraw money at certain ATMs that are not in our network of fee-free ATMs, we charge them a fixed ATM fee in accordance with the terms and conditions in the member agreements. As we maintain control of the integrated transaction processing services before delivery to our members, we record revenue on a gross basis.
Our cost of revenue will be impacted by our growth as well as our ability to drive efficiencies in transaction processing and bank partner costs, as well as card and ATM costs, net of incentives. In absolute dollars, we expect that cost of revenue will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect cost of revenue will fluctuate from period to period in the near term and stabilize in the long term as we scale.
Our transaction and risk losses will be impacted by the expansion of existing liquidity products and the introduction of new liquidity products offered through our platform. In absolute dollars, we expect that transaction and risk losses will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that transaction and risk losses will fluctuate from period to period in the near term and in the long term.
Member support and operations expenses include the costs of the third-party vendors we use for certain member support and loss prevention services, the costs of physical card issuance, software to help manage member interactions, and member onboardingonboarding, activation, and account verification expenses. Member support and operations also includes personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in member support, risk, and operations functions, and allocated overhead.
In absolute dollars, we expect that member support and operations expenses will fluctuate from period to period in the near term and increase in the long term as we continue to grow our Active Member base. As a percentage of revenue, we expect that member support and operations expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
In absolute dollars, we expect that sales and marketing expenses will generally increase from period to period in the near term and increase in the long term as we continue to invest in member acquisition. As a percentage of revenue, we expect that sales and marketing expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
In absolute dollars, we expect that technology and development expenses will generally increase from period to period in the near term and increase in the long term as we continue to make investments in product innovation. As a percentage of revenue, we expect that technology and development expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
In absolute dollars, we expect that general and administrative expenses will generally increase from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that general and administrative expenses will fluctuate from period to period in the near term and decrease in the long term as we scale.
Comparison of the three and six months ended MarchJune 31,30, 2026 and 2025
Total revenue for the three and six months ended MarchJune 31,30, 2026 increased by $128.6$141.6 million or 27% and $270.3 million, or 25%,26%, year over year, primarily driven by the growth of our total Active Members and the associated increase in Purchase Volume, a continued shift in payment mix toward credit from debit,debit with the launch of Chime Prime, as well as the continued growth of MyPayMyPay, Instant Loans, and outbound instant transfers.
Payments revenue increased by $57.3$63.9 million or 17% and $121.3 million, or 15%,16%, for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025.
For the three months ended MarchJune 31,30, 2026, this increase primarily reflected a $57.6$63.7 million, or 54%,62%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2025. The increase in payments revenue was driven by a $4.25.6 billion, or 12%,17%, increase in Purchase Volume for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025. For the three months ended MarchJune 31,30, 2026 and 2025, interchange-based fees from debit card transactions represented 41%39% and 52%50% of revenue, with debit card transactions representing 77%73% and 84% of Purchase Volume. For the three months ended MarchJune 31,30, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 21%20% of revenue, with credit card transactions representing 23%27% and 16% of Purchase Volume.
For the six months ended June 30, 2026, this increase primarily reflected a $121.3 million, or 58%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2025. The increase in payments revenue was driven by a $9.8 billion, or 15%, increase in Purchase Volume for the six months ended June 30, 2026 compared to the same period in 2025. For the six months ended June 30, 2026 and 2025, interchange-based fees from debit card transactions represented 40% and 51% of revenue, with debit card transactions representing 75% and 84% of Purchase Volume. For the six months ended June 30, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 20% of revenue, with credit card transactions representing 25% and 16% of Purchase Volume.
The increase in Purchase Volume was driven, in part, by a 1.61.7 million, or 19%,20%, increase in Active Members as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025. Increasing the number of Active Members on our platform helps drive Purchase Volume, which increases the interchange-based fees generated and the payments revenue that we recognize.
Platform-related revenue for the three and six months ended MarchJune 31,30, 2026 increased $71.3$77.7 million, or 50%,48%, and $149.0 million, or 49%, year over year. For the three and six months ended MarchJune 31,30, 2026, the increase was primarily driven by a $39.5$37.1 million and $76.7 million increase year over year from MyPay driven by our new variable pricing plan adopted in the first quarter of 2026 and increased MyPay transaction volume from continued adoption. Additionally, weduring recognizedthe anthree increaseand ofsix $15.5months ended June 30, 2026, Instant Loan revenue increased $19.7 million yearand over$32.7 yearmillion in revenue forand outbound instant transfer fees,fees whichincreased launched in the first quarter of 2025. We also recognized $14.1$14.9 million inand Instant$30.5 Loanmillion revenueas duringmembers thecontinued threeto monthsadopt endedthese March 31, 2026, which launched at the end of the first quarter of 2025.products.
Cost of revenue for the three months ended MarchJune 31,30, 2026 increased $6.7$7.8 million, or 11%, year over year12%, driven by a $12.2$13.4 million increase in card and ATM network expenses, net of incentives, partially offset by a a $5.5$5.6 million decrease in transaction processing and bank partner costs. TheCost $12.2of revenue for the six months ended June 30, 2026 increased $14.4 million, or 11%, driven by a $25.6 million increase in card and ATM network expensesexpenses, wasnet drivenof incentives, partially offset by thea increase$11.2 million decrease in Activetransaction Membersprocessing and frombank Activepartner Members engaging more frequently with our products, including instant transfers.costs.
The $5.5increase millionin card and ATM network expenses in the three and six months ended June 30, 2026 compared to the prior year was driven both by the increase in Active Members and from Active Members engaging more frequently with our products, including instant transfers. The decrease in transaction processing and bank partner costs in the three and six months ended June 30, 2026 compared to the prior year was driven by cost savings following our migration from oura third-party transaction processor to ChimeCore, which occurred in the fourth quarter of 2025, partially offset by growth in Active MembersMembers, andthe related growth in Purchase Volume.Volume, and the shift in payment mix toward credit.
Operating expenses increaseddecreased by $85.0$818.1 million, or 19%,59%, and $733.2 million, or 40%, for the three and six months ended MarchJune 31,30, 2026 compared to the three and six months ended MarchJune 31,30, 2025 driven by the following changes:
Transaction and risk losses for the three months ended June 30, 2026 increased by $5.0 million, or 5%, year over year, driven by an increase of $9.9 million in transaction and risk losses related to our Instant Loans product primarily due to higher volumes, and an increase of $8.3 million in transaction dispute losses primarily attributable to the increase in Purchase Volume and increase in the rate of disputed transactions. These increases were partially offset by a decrease of $13.0 million in losses related to MyPay, primarily attributable to improved loss rates on originations made during the current period.
Transaction and risk losses for the threesix months ended MarchJune 31,30, 2026 decreased by $20.2$15.2 million, or 19%,7%, year over year, driven by a decrease of $18.4$31.4 million in losses related to MyPayMyPay, dueprimarily attributable to improvements inimproved loss rates.rates on originations made during the current period. Losses related to SpotMe and other member negative balances also decreased by $12.4$12.6 million, primarily due to isolated fraud incidents in the prior-yearfirst period.quarter of 2025. These decreases were partially offset by an increase of $7.2$16.2 million in transaction and risk losses related to our Instant Loans product,product whichprimarily fullydue launchedto higher volumes, and an increase of $12.7 million in Marchtransaction 2025.dispute losses primarily attributable to the increase in Purchase Volume and increase in the rate of disputed transactions.
Member support and operations expenses for the three and six months ended MarchJune 31,30, 2026 increaseddecreased by $16.8$93.5 million or 46% and $76.8 million, or 21%,27%, year over year driven by ana increasedecrease in stock-based compensation and related payroll tax of $7.8$113.1 million and $105.3 million as the liquidity-based vesting condition for certainhigher stock-based awardscompensation wasexpenses metwere uponrecognized as a result of our IPO in the second quarter of 2025. Additionally, thereThis was anpartially offset by a $10.0 million and $12.7 million increase of $5.4 million in third-party member support and loss preventiononboarding costs in the three and six months ended MarchJune 31,30, 2026,2026 attributable to activation expenses associated with anChime increase in Active Members.Prime.
Sales and marketing expenses for the three months ended June 30, 2026 decreased by $20.8 million, or 11%, year over year driven by a decrease in stock-based compensation and related payroll tax of $38.9 million in the three months ended June 30, 2026 compared to the prior year as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025. This was partially offset by an increase of $16.3 million in marketing and promotional activities in the three months ended June 30, 2026 compared to the prior year.
Sales and marketing expenses for the threesix months ended MarchJune 31,30, 2026 increased by $32.9$12.0 million, or 25%,4%, year over year driven by an increase of $25.7$42.0 million in marketing and promotional activities in the threesix months ended MarchJune 31,30, 2026 compared to the prior year. Additionally, thereThis was anpartially increaseoffset by a decrease in stock-based compensation and related payroll tax of $4.1$34.8 million asin the liquidity-basedsix vestingmonths conditionended forJune certain30, 2026 compared to the prior year as higher stock-based awardscompensation wasexpenses metwere uponrecognized as a result of our IPO.IPO in the second quarter of 2025.
Technology and development expenses for the three and six months ended MarchJune 31,30, 2026 increaseddecreased by $31.9$509.6 million, or 41%,82%, and $477.7 million, or 68%, year over year primarily driven by ana increasedecrease in stock-based compensation and related payroll tax of $23.7$511.1 million asand $487.4 million in the liquidity-basedthree vestingand conditionsix formonths certainended June 30, 2026 compared to the prior year as higher stock-based awardscompensation wasexpenses metwere uponrecognized as a result of our IPO in the second quarter of 2025.
General and administrative expenses for the three and six months ended MarchJune 31,30, 2026 increaseddecreased by $23.3$199.5 million, or 49%,71%, and $176.2 million, or 54%, year over year, primarily driven by ana increasedecrease in stock-based compensation and related payroll tax of $20.5$193.8 million asand $173.4 million in the liquidity-basedthree vestingand conditionsix formonths certainended June 30, 2026 compared to the prior year as higher stock-based awardscompensation wasexpenses metwere uponrecognized as a result of our IPO in the second quarter of 2025.
Other income, net for the three and six months ended MarchJune 31,30, 2026 increased by $2.4$0.5 million, or 45%,8%, and $2.9 million, or 25%, year over year, primarily attributable to an increase of $1.8 million in interest income due to higher balances on interest-bearing assets following our IPO.assets.
As of MarchJune 31,30, 2026, our principal sources of liquidity were our cash and cash equivalents of $607.7$536.0 million,million and investments in marketable securities of $403.6$527.4 million,million. andAdditionally, $443.6we have $451.8 million in borrowing capacity under our revolving credit facility and $150.0 million of remaining committed capacity under our warehouse facility.
Our bank partners also retain accounts and receivables related to Chime-branded credit and liquidity products on their balance sheet, and pursuant to the Bancorp MSA, Bancorp committed to retain certain receivables on its balance sheet in an amount, not to exceed, on an aggregate basis, 200% of its tier 1 capital, with such amount in connection with liquidity products excluding Credit Builder not to exceed 125% of its tier 1 capital (each as measured on the last day of each calendar quarter). Bancorp’s tier 1 capital includes common shareholders’ equity, certain qualifying perpetual preferred stock and minority interests in equity accounts of consolidated subsidiaries, less intangibles. Based on Bancorp’s tier 1 capital as of MarchJune 31,30, 2026, the amount of this commitment would have been approximately $1.7$1.8 billion (with such amount in connection with liquidity products excluding Credit Builder not to exceed approximately $1.1 billion.billion). Bancorp has the right to limit originations under this commitment in the event the forecasted performance of the liquidity products offered under this commitment is expected to result in significant unrecoverable losses. Specifically, Bancorp has the right to limit originations under this commitment during periods when a specified threshold is projected to be exceeded relating to the forecasted ratio of (i) projected losses less projected revenue from the liquidity products offered under this commitment to (ii) the sum of our cash, our marketable securities, and certain assets held at Bancorp.
In November 2025, our board of directors approved a share repurchase program with authorization to purchase up to $200.0 million of our Class A common stock at management’s discretion. During the three months ended March 31, 2026, we repurchased 4.1 million shares of our common stock for an aggregate purchase price of $85.7 million.
In November 2025, our board of directors approved a share repurchase program with authorization to purchase up to $200.0 million of our Class A common stock at management’s discretion, and in May 2026 we announced that our board of directors approved an additional $200.0 million share repurchase authorization pursuant to which we may repurchase up to $200.0 million of our outstanding Class A common stock.authorization. Repurchases may be made from time to time through open market purchases, privately negotiated transactions or other means, subject to market conditions, applicable legal requirements, and other relevant factors. Open market purchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The timing and actual number of shares repurchased may depend on a variety of factors, including legal requirements, price, and economic and market conditions. The program does not obligate us to repurchase any particular amount of Class A common stock and may be suspended or discontinued at any time at our discretion without prior notice, subject to all applicable securities laws. During the three and six months ended June 30, 2026, we repurchased approximately 7.3 million and 11.4 million shares of our common stock for an aggregate purchase price of $136.3 million and $222.1 million.
In June 2026, we established a trust to enter into a credit agreement with Goldman Sachs Lending Partners LLC as the lender which provides for a commitment amount of $200.0 million, with a total facility limit of $500.0 million, maturing on June 1, 2028 (the “Warehouse Facility”), with an intent to access additional financing in support of our MyPay product and to supplement our existing bank partner model. As of June 30, 2026, $50.0 million was outstanding under the Warehouse Facility with $150.0 million of remaining committed capacity available. The expected utilization of the Warehouse Facility may depend on a variety of factors, including the growth of MyPay origination volumes. We maintain a reserve account pledged as first-priority collateral to the lender which is not available for general use and may only be disbursed in accordance with the Warehouse Facility’s payment waterfall. The Warehouse Facility includes customary affirmative and negative covenants and requires us to maintain certain levels of minimum liquidity and minimum tangible net worth. We are in compliance with all covenants as of June 30, 2026. See Note 11 - Indebtedness within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
We believe that our current available cash and cash equivalents and investments in marketable securitiessecurities, together with amounts available for borrowing under the credit facility and Warehouse Facility, will be sufficient to meet our working capital needs for at least the next twelve months. Our future capital requirements and the adequacy of available funds will depend on many factors, including, but not limited to our growth, our ability to attract and retain Active Members, the timing and extent of spending to support our efforts to develop our platform, the growth of liquidity products, including MyPay, Instant Loans, and SpotMe, the expansion of sales and marketing activities, potential merger and acquisition activity, and other strategic initiatives.
Cash provided by (used in) operating activities was $87.5$295.0 million for the threesix months ended MarchJune 31,30, 2026, compared to $(25.8)$2.7 million in the threesix months ended MarchJune 31,30, 2025. The increase of $113.2$292.2 million consists of a $991.7 million increase in net income and an increase of $77.5$189.6 million in changes in working capital and a $40.5 million increase in net income,capital, partially offset by a decrease of $4.8$889.1 million in non-cash adjustments.
The increase of $77.5$189.6 million in changes in working capital for the threesix months ended MarchJune 31,30, 2026 compared to the prior year was primarily driven by ana increasedecrease of settlements related toin our product obligationcollateral requirements primarily due to theenhancements growthin ofour MyPayloss revenue,recovery processes, the timing of upfront payments received related to our network incentive obligation, and the timing of vendor payments,payments. Additionally, settlements related to our product obligation were cash inflows of $39.2 million in the six months ended June 30, 2026, compared to cash outflows of $19.0 million in the six months ended June 30, 2025, primarily due to the growth of MyPay and Instant Loans revenue and the receiptimproved unit economics of aMyPay tenantcompared improvementto allowancethe forprior ayear. newThis officefavorability leasewas partially offset by settlements related to SpotMe and other negative balances, which were elevated in the firstsix quartermonths ended June 30, 2026 due to the settlement of 2026.prior year fraud events.
The decrease of $889.1 million in non-cash adjustments for the six months ended June 30, 2026 compared to the prior year was primarily driven by a $788.8 million decrease in stock-based compensation as the liquidity-based vesting condition for certain equity awards was met in connection with our IPO in 2025. Additionally, the change in fair value of the product obligation was $(52.3) million in the six months ended June 30, 2026, compared to $43.6 million in the prior year. This change is attributable to the growth of MyPay and Instant Loans revenue, decrease in SpotMe and other negative balances transaction and risk losses, and improved MyPay loss rates and unit economics. See Note 8 - Credit Obligations within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
The decrease of $4.8 million in non-cash adjustments for the three months ended March 31, 2026 compared to the prior year was primarily driven by a $55.3 million decrease in change in fair value of program obligation attributable to the growth of MyPay and Instant Loan revenue, improved MyPay loss rates, and decrease in SpotMe and other negative balances transaction and risk losses. This was partially offset by a $52.0 million increase in stock-based compensation expense as the liquidity-based vesting condition for certain equity awards was met in connection with our IPO in the second quarter of 2025.
Cash providedused byin investing activities was $127.3$14.6 million for the threesix months ended MarchJune 31,30, 2026, primarily due to $1,248.9$2,706.4 million in purchases of loans held for investment offset by $2,652.5 million in repayments of loans held for investment and $182.3 million in proceeds from maturities of marketable securities, offset by $1,296.4 million in purchases of loans held for investment.
Cash provided by investing activities was $6.7$79.1 million for the threesix months ended MarchJune 31,30, 2025, primarily due to $1,117.5$2,311.6 million in repayments of loans held for investmentinvestment, $256.5 million from sales of marketable securities and $72.2$123.2 million in proceeds from maturities of marketable securities, offset by $1,139.7$2,368.2 million in purchases of loans held for investment and $3.2$234.1 million in capitalizationpurchases of internal-usemarketable software.securities.
For the threesix months ended MarchJune 31,30, 2026, cash used in financing activities was $73.4$160.0 million, primarily due to $85.7$222.1 million from repurchases of common stock, partially offset by $13.9$50.0 million in proceeds from borrowings under the Warehouse Facility and $16.0 million in proceeds from the exercise of stock options.
For the threesix months ended MarchJune 31,30, 2025, cash usedprovided inby financing activities was $126.0$449.9 thousand,million, consistingprimarily ofdue $0.8to $772.6 million from paymentthe issuance of debtcommon issuancestock in connection with our IPO in the second quarter of 2025, net of offering costs paid, partially offset by taxes paid related to our credit facility, nearly entirely offset by proceeds from the exercisenet share settlement of restricted stock options.units of $322.6 million.
As of MarchJune 31,30, 2026, our fully diluted share count was as follows:
For further information see Note 12,13 “- Common Stock and Stockholders’ Equity" and Note 14,15 “- Net Income (Loss) Per Share” within the notes to our condensed consolidated financial statements included in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements”.Report.
As of MarchJune 31,30, 2026, we had future minimum operating lease payments under non-cancelable leases of $168.8$165.1 million related to leases we have recognized on our condensed consolidated balance sheet which are due over a weighted average period of 8.18 years. Of the non-cancelable lease payments, $11.9$8.2 million is payable in the remainder of 2026. For additional discussion on our operating leases, see Note 1718 – Commitments and Contingencies within the notes to our condensed consolidated financial statements.statements included in this Quarterly Report.
Our non-cancellable purchase commitments are primarily related to our cloud infrastructure services and various marketing partnerships. As of MarchJune 31,30, 2026, we had non-cancellable purchase obligations of $252.1$255.1 million, of which $98.1$83.0 million is due in the remainder of 2026.
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected.
There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” in our 2025 Form 10-K.
For a discussion of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted, see Note 2 – Basis of Presentation and Summary of Significant Accounting Policies within the notes to our unaudited condensed consolidated financial statements.statements included in this Quarterly Report.
CHYM insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 36 filings (17 insiders, 26 trade dates, 35,379,012 shares, about $1.2B; 10 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -35,379,012 (purchases minus sales); net value about -$1.2B.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-16 | Feuille James |
Open-market sale | 161,437 | $32.70 | $5.3M |
| 2026-09-16 | Feuille James |
Open-market sale | 62,218 | $31.46 | $2.0M |
| 2026-09-16 | Feuille James |
Open-market sale | 33,182 | $32.19 | $1.1M |
| 2026-09-15 | Feuille James |
Open-market sale | 94,446 | $33.20 | $3.1M |
| 2026-09-15 | Feuille James |
Open-market sale | 954 | $33.95 | $32.4K |
| 2026-09-15 | Frankel Adam B |
Option exercise |
60,000 | $16.56 | $993.6K |
| 2026-09-15 | Frankel Adam B |
Open-market sale |
86,948 | $33.23 | $2.9M |
| 2026-09-15 | Frankel Adam B |
Open-market sale |
15,054 | $33.78 | $508.5K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 44,033 | $34.25 | $1.5M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 119,566 | $33.97 | $4.1M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 7,391 | $34.25 | $253.1K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 144,485 | $33.97 | $4.9M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 8,932 | $34.25 | $305.9K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 419,637 | $33.97 | $14.3M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 25,941 | $34.25 | $888.5K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 218,211 | $33.97 | $7.4M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 13,490 | $34.25 | $462.0K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 28,323 | $33.97 | $962.1K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 1,751 | $34.25 | $60.0K |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 712,293 | $33.97 | $24.2M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 1,386,429 | $33.97 | $47.1M |
| 2026-09-14 | Dst Global Advisors Ltd |
Open-market sale | 85,707 | $34.25 | $2.9M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 1,751 | $34.25 | $60.0K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 712,293 | $33.97 | $24.2M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 44,033 | $34.25 | $1.5M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 119,566 | $33.97 | $4.1M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 7,391 | $34.25 | $253.1K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 144,485 | $33.97 | $4.9M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 8,932 | $34.25 | $305.9K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 419,637 | $33.97 | $14.3M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 25,941 | $34.25 | $888.5K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 218,211 | $33.97 | $7.4M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 13,490 | $34.25 | $462.0K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 28,323 | $33.97 | $962.1K |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 1,386,429 | $33.97 | $47.1M |
| 2026-09-14 | Dstg Vi Investments-A, L.p. |
Open-market sale | 85,707 | $34.25 | $2.9M |
| 2026-09-14 | Feuille James |
Open-market sale | 93,428 | $34.08 | $3.2M |
| 2026-09-14 | Feuille James |
Open-market sale | 1,972 | $34.41 | $67.9K |
| 2026-09-13 | King Ryan A |
Option exercise | 75,000 | — | — |
| 2026-09-13 | Britt Christopher R |
Option exercise | 125,000 | — | — |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 1,940 | $33.07 | $64.2K |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 14,950 | $33.07 | $494.4K |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 28,749 | $33.07 | $950.7K |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 9,899 | $33.07 | $327.4K |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 8,191 | $33.07 | $270.9K |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 48,800 | $33.07 | $1.6M |
| 2026-09-11 | Cardew Services Ltd |
Open-market sale | 94,984 | $33.07 | $3.1M |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 48,800 | $33.07 | $1.6M |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 8,191 | $33.07 | $270.9K |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 9,899 | $33.07 | $327.4K |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 28,749 | $33.07 | $950.7K |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 14,950 | $33.07 | $494.4K |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 1,940 | $33.07 | $64.2K |
| 2026-09-11 | Dstg Vi Investments-A, L.p. |
Open-market sale | 94,984 | $33.07 | $3.1M |
| 2026-09-11 | Carolan Shawn T |
Open-market sale | 1,800 | $33.05 | $59.5K |
| 2026-09-11 | Carolan Shawn T |
Open-market sale | 2,770 | $33.05 | $91.5K |
| 2026-09-11 | Carolan Shawn T |
Open-market sale | 272,437 | $33.05 | $9.0M |
| 2026-09-11 | Feuille James |
Open-market sale | 97,308 | $33.03 | $3.2M |
| 2026-09-11 | Feuille James |
Open-market sale | 161,090 | $32.89 | $5.3M |
| 2026-09-11 | Marshall Cynthia |
Open-market sale | 20,000 | $33.09 | $661.8K |
Well-known investors holding CHYM (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Coatue Management (Philippe Laffont) | 2026-06-30 | 10,071,992 | $188.6M | — | Sold out |
| Tiger Global Management (Chase Coleman) | 2026-06-30 | 5,284,045 | $108.2M | 0.45% | Reduced 52% |
| Millennium Management (Israel Englander) | 2026-06-30 | 2,441,656 | $50.0M | 0.03% | Reduced 32% |
| Davis Selected Advisers (Chris Davis) | 2026-06-30 | 2,331,776 | $47.8M | 0.21% | Reduced 8% |
| Renaissance Technologies | 2026-06-30 | 923,600 | $18.9M | 0.03% | Added 13% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 750,530 | $15.4M | 0.01% | Reduced 74% |
| Baillie Gifford | 2026-06-30 | 678,717 | $13.9M | 0.01% | No change |
| Two Sigma Investments | 2026-06-30 | 411,743 | $8.4M | 0.01% | Added 52% |
| D. E. Shaw & Co. | 2026-06-30 | 199,387 | $4.1M | 0.0% | Added 86% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 37,931 | $776.8K | 0.0% | New position |