Chime Financial, Inc 10-Q for FY2026 Q1

Chime Financial, Inc. (CHYM)

10-Q 2026-05-07 For: 2026-03-31

Added on May 07, 2026

About this 10-Q

Chime Financial, Inc filed this 10-Q on May 7, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $647.39M; up 24.8% from $518.74M a year earlier
Net income: $53.46M; up 313.1% from net income of $12.94M a year earlier
Diluted EPS: $0.13; compared with $0.00 a year earlier

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Delaware						46-0925388
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

101 California Street, Suite 500 San Francisco, CA						94111
(Address of Principal Executive Offices)						(Zip Code)


Part 1- Financial Statements			4
Item 1. Financial Statements (unaudited)			4
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Operations			5
Condensed Consolidated Statements of Comprehensive Income			6
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)			7
Condensed Consolidated Statements of Cash Flows			8
Notes to Unaudited Condensed Consolidated Financial Statements			9
Note 1 - Organization and Description of Business			9
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies			9
Note 3 - Revenue			11
Note 4 - Fair Value Measurement			11
Note 5 - Marketable Securities			13
Note 6 - Accounts Receivable, Net			14
Note 7 - Loans Held For Investment, Net			15
Note 8 - Credit Obligations			15
Note 9 - Property, Equipment, and Software, Net			17
Note 10 - Significant Balance Sheet Components			17
Note 1 1 - Indebtedness			18
Note 1 2 - Common Stock and Stockholders’ Equity			18
Note 1 3 - Stock-Based Compensation			19
Note 1 4 - Net Income Per Share			22
Note 1 5 - Related Party Transactions			24
Note 1 6 - Income Taxes			24
Note 1 7 - Commitments and Contingencies			24
Note 18 - Subsequent Events			25
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			40
Item 4. Controls and Procedures			40

Part II - Other Information			42
Item 1. Legal Proceedings.			42
Item 1A. Risk Factors			43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			91
Item 3. Defaults Upon Senior Securities			92
Item 4. Mine Safety Disclosures			92
Item 5. Other Information			92
Item 6. Exhibits			94
Signatures			95


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	607,677	$	466,252
Restricted cash	14,510		14,508
Marketable securities	403,605		587,828
Product collateral	231,477		251,204
Accounts receivable, net	294,338		257,884
Loans held for investment, net	105,815		71,581
Prepaid expenses and other current assets	86,839		106,753
Total current assets	1,744,261		1,756,010
Property, equipment and software, net	94,636		94,320
Operating lease right of use assets, net	81,078		83,429
Other assets	30,408		30,846
Total assets	$	1,950,383	$	1,964,605
Liabilities and stockholders❜ equity
Current liabilities:
Accounts payable	$	37,920	$	38,680
Accrued and other current liabilities	185,038		201,862
Product obligation	121,141		147,382
Total current liabilities	344,099		387,924
Operating lease liabilities, net of current portion	120,614		123,284
Other non-current liabilities	44,228		51,691
Total liabilities	508,941		562,899
Commitments and contingencies (Note 17)

Stockholders’ equity:
Preferred stock, $0.0001 par value: 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025.	—		—
Class A common stock, $0.0001 par value: 5,000,000,000 shares authorized, 350,471,830 shares issued and outstanding as of March 31, 2026. 5,000,000,000 shares authorized, 347,751,083 issued and outstanding as of December 31, 2025.	28		28
Class B common stock, $0.0001 par value: 65,000,000 shares authorized, 32,132,289 shares issued and outstanding as of March 31, 2026. 65,000,000 shares authorized, 32,182,289 issued and outstanding as of December 31, 2025.	3		3
Class C common stock, $0.0001 par value: 500,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025.	—		—
Additional paid-in capital	4,763,006		4,775,607
Accumulated other comprehensive income (loss)	(947)		172
Accumulated deficit	(3,320,648)		(3,374,104)
Total stockholders’ equity	1,441,442		1,401,706
Total liabilities and stockholders’ equity	$	1,950,383	$	1,964,605


	Three Months Ended March 31,
		2026		2025
Revenue		$	647,387	$	518,744
Cost of revenue		67,074		60,418
Gross profit		580,313		458,326
Operating expenses:
Transaction and risk losses		88,905		109,145
Member support and operations		95,399		78,609
Sales and marketing		165,431		132,573
Technology and development		109,780		77,882
General and administrative		70,467		47,173
Depreciation and amortization		4,168		3,807
Total operating expenses		534,150		449,189
Income from operations		46,163		9,137
Other income, net		7,748		5,354
Income before income taxes		53,911		14,491
Provision for income taxes		455		1,552
Net income		53,456		12,939
Undistributed earnings attributable to preferred stockholders		—		(12,939)
Net income attributable to common stockholders		$	53,456	$	—
Net income per share attributable to common stockholders:
Basic		$	0.14	$	—
Diluted		$	0.13	$	—
Weighted average number of common shares outstanding used to compute net income per share attributable to common stockholders:
Basic		381,636,920		65,868,810
Diluted		400,476,567		65,868,810


	Three Months Ended March 31,
		2026		2025
Net income		$	53,456	$	12,939
Other comprehensive income (loss):
Net unrealized gain (loss) on marketable securities, net of tax		(987)		82
Foreign currency translation adjustments		(132)		9
Total comprehensive income		$	52,337	$	13,030


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Redeemable Convertible Preferred Stock			Common Stock(1)			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance as of December 31, 2025	—	$	—	379,933,372	$	31	$	4,775,607	$	(3,374,104)	$	172	$	1,401,706
Net income	—	—		—	—		—		53,456		—		53,456
Issuance of common stock upon exercise of stock options	—	—		4,880,740	—		13,923		—		—		13,923
Issuance of common stock upon settlement of restricted stock units, net of shares withheld	—	—		1,871,134	—		(1,540)		—		—		(1,540)
Repurchases of common stock	—	—		(4,081,127)	—		(85,740)		—		—		(85,740)
Stock-based compensation	—	—		—	—		60,756		—		—		60,756
Change in accumulated other comprehensive income (loss), net of tax	—	—		—	—		—		—		(1,119)		(1,119)
Balance as of March 31, 2026	—	$	—	382,604,119	$	31	$	4,763,006	$	(3,320,648)	$	(947)	$	1,441,442


	Redeemable Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance as of December 31, 2024	258,464,156	$	2,890,121	66,950,736	$	2	$	433,363	$	(2,364,168)	$	203	$	(1,930,600)
Net income	—	—		—	—		—		12,939		—		12,939
Issuance of common stock upon exercise of stock options	—	—		636,796	—		717		—		—		717
Stock-based compensation	—	—		—	—		8,749		—		—		8,749
Change in accumulated other comprehensive income (loss), net of tax	—	—		—	—		—		—		91		91
Balance as of March 31, 2025	258,464,156	$	2,890,121	67,587,532	$	2	$	442,829	$	(2,351,229)	$	294	$	(1,908,104)


Balance as of December 31, 2025	$	4,818
Balance as of March 31, 2026	4,900
Increase in deferred revenue during the period	$	82


	March 31, 2026
	Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	499,848	$	—	$	—

Marketable securities:
U.S. government securities	384,526		—		—
U.S. agency securities	—		19,079		—
Total assets	$	884,374	$	19,079	$	—
Liabilities
Product obligation	$	—	$	—	$	121,141
Total liabilities	$	—	$	—	$	121,141


	December 31, 2025
	Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	349,860	$	—	$	—
Marketable securities:
U.S. government securities	563,594		—		—
U.S. agency securities	—		24,234		—
Total assets	$	913,454	$	24,234	$	—
Liabilities
Product obligation	$	—	$	—	$	147,382
Total liabilities	$	—	$	—	$	147,382


March 31, 2026
Significant Unobservable Inputs	Range	Weighted Average Rate
Discount rate	3.68% - 4.81%	3.70	%
Expected loss rate	0.27% -100%	6.40	%


	March 31, 2026
	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses		Total Estimated Fair Value
Marketable securities:
U.S. government securities	$	384,320	$	306	$	(100)	384,526
U.S. agency securities	19,125		—		(46)		19,079




Total marketable securities	$	403,445	$	306	$	(146)	$	403,605


	As of March 31, 2026
	Less than 12 months				Greater than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Marketable securities:
U.S. government securities	$	86,147	$	(100)	$	—	$	—	$	86,147	$	(100)
U.S. agency securities	19,079		(46)		—		—		19,079		(46)


Total	$	105,226	$	(146)	$	—	$	—	$	105,226	$	(146)


	Three Months Ended March 31,
	2026		2025
Operating activities:
Net income	$	53,456	$	12,939
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,665		7,258
Non-cash lease expense	2,351		1,534
Stock-based compensation	60,652		8,696

Provision for transaction dispute losses	22,327		17,971
Change in fair value of product obligation	(26,547)		28,751
Provision for credit losses	14,534		23,549

Amortization of premium on marketable securities	(162)		(1,627)
Other	965		441
Changes in operating assets and liabilities:
Product collateral	19,727		4,151
Accounts receivable, net	(37,679)		(26,155)
Prepaid expenses and other assets	19,972		(8,680)
Accounts payable	(760)		1,768
Accrued and other liabilities	(47,399)		(73,954)
Operating lease liabilities	(1,929)		(3,937)
Settlements of the product obligation	306		(18,456)
Cash flows (used in) provided by operating activities	87,479		(25,751)
Investing activities:
Purchase of marketable securities	—		(38,502)

Proceeds from maturities of marketable securities	182,300		72,201
Purchases of loans held for investment	(1,296,434)		(1,139,723)
Repayments of loans held for investment	1,248,891		1,117,516
Purchase of property, equipment and software	(6,621)		(1,593)
Capitalization of internal-use software	(831)		(3,198)

Cash flows provided by investing activities	127,305		6,701
Financing activities:
Payment of debt issuance costs related to credit facilities	—		(843)

Taxes paid related to net share settlement of restricted stock units	(1,540)		—
Proceeds from exercise of stock options	13,923		717


	March 31, 2026		December 31, 2025
Receivables due from bank partners(1)	$	142,940	$	116,217
Network incentive receivable	140,397		130,962
Other receivables	11,001		10,705
Accounts receivable, net	$	294,338	$	257,884



Days from origination	March 31, 2026		December 31, 2025
1 - 30	$	105,315	$	64,779
31 - 60	6,540		9,456
61 - 90	5,987		9,794
91 - 120	6,275		7,982
121 - 180	14,731		15,353
181 - 270	20,342		21,783
Greater than 270	20,346		19,074
Total	$	179,536	$	148,221


	Three Months Ended March 31,
	2026		2025
Balance, beginning of the period	$	76,640	$	30,649
Provision for expected credit losses	13,309		21,900
Amounts written off	(17,705)		—
Recoveries collected	1,477		—
Balance, end of the period	$	73,721	$	52,549


	As of March 31, 2026
	Amortized Cost		Fair Value
Within one year	$	356,489	$	356,765
After one year to five years	46,956		46,840
Total	$	403,445	$	403,605



	March 31, 2026		December 31, 2025
Loans held for investment	$	179,536	$	148,221
Less: allowance for expected credit losses	(73,721)		(76,640)
Total loans held for investment, net	$	105,815	$	71,581


	March 31, 2026		December 31, 2025
Computer equipment and purchased software	$	4,956	$	4,301
Furniture and fixtures	12,379		10,752
Leasehold improvements	83,769		79,429
Capitalized internal-use software	74,605		73,669
Total property, equipment, and software	175,709		168,151
Less: accumulated depreciation and amortization	(81,073)		(73,831)
Property, equipment, and software, net	$	94,636	$	94,320


	March 31, 2026		December 31, 2025
Goodwill	$	27,492	$	27,492
Other assets	2,916		3,354
Total other assets	$	30,408	$	30,846


	March 31, 2026		December 31, 2025
Accrued expenses	$	93,698	$	81,437
Accrued bonus	11,728		52,860
Current portion of lease liability	12,122		11,381
Accrued transaction dispute losses(1)	14,817		10,497
Network incentive obligation, current portion	27,272		12,522
Other current liabilities	25,401		33,165
Total accrued and other current liabilities	$	185,038	$	201,862


	March 31, 2026		December 31, 2025
Network incentive obligation, net of current portion	$	41,299	$	48,804
Other non-current liabilities	2,929		2,887
Total other non-current liabilities	$	44,228	$	51,691


	Outstanding Stock Options	Weighted average exercise price ($)		Weighted-average remaining contractual life (years)	Aggregate intrinsic value
Balance as of December 31, 2025	25,280,942	$	10.86	5.48	$	368,580
Granted	3,881,437	21.62
Exercised	(4,880,740)	2.85
Forfeited/Cancelled	(22,553)	13.89

Balance as of March 31, 2026	24,259,086	$	14.19	6.51	$	149,172
Vested and expected to vest as of March 31, 2026	24,259,086	$	14.19	6.51	$	149,172
Exercisable as of March 31, 2026	14,852,628	$	9.57	4.94	$	142,116


	Number of Shares of Restricted Stock	Weighted-average grant date fair value per share
Balance as of December 31, 2025	498,722	$	23.25
Granted	—	—
Vested	(78,935)	23.25
Forfeited/Cancelled	—	—
Balance as of March 31, 2026	419,787	$	23.25


	Number of Restricted Stock Units	Weighted-average grant date fair value per share
Unvested as of December 31, 2025	20,874,834	$	24.43
Granted	9,582,480	20.76
Vested	(317,083)	22.82
Vested and settled (1)	(1,949,321)	23.55
Forfeited/Cancelled	(1,376,628)	23.55
Unvested as of March 31, 2026	26,814,282	$	24.43


	Three Months Ended March 31,
	2026						2025
	Class A		Class B		Consolidated		Common Stock
Basic EPS:
Numerator:
Net income	$	48,955	$	4,501	$	53,456	$	12,939
Undistributed earnings attributable to preferred stockholders	—		—		—		(12,939)
Net income attributable to common stockholders	$	48,955	$	4,501	$	53,456	$	—
Denominator:
Basic weighted-average common shares outstanding	349,500,187		32,136,733		381,636,920		65,868,810
Basic EPS	$	0.14	$	0.14	$	0.14	$	—

Diluted EPS:
Numerator:
Net income attributable to common stockholders	$	48,955	$	4,501	$	53,456	$	—
Reallocation of net income to Class B common stock	4,501		(211)		—		—
Net income for diluted EPS	$	53,456	$	4,290	$	53,456	$	—
Denominator:
Basic weighted-average common shares outstanding	349,500,187		32,136,733		381,636,920		65,868,810
Dilutive effect of potentially dilutive securities	18,839,647		—		18,839,647		—
Conversion of Class B to Class A common stock	32,136,733		—		—		—
Diluted weighted-average common shares outstanding	400,476,567		32,136,733		400,476,567		65,868,810
Diluted EPS	$	0.13	$	0.13	$	0.13	$	—


	Three Months Ended March 31,
(in millions, except for Average Revenue per Active Member)		2026		2025
Purchase Volume		$	38,709	$	34,540
Active Members		10.2		8.6
Average Revenue per Active Member (ARPAM)		$	263	$	251


	Three Months Ended March 31,
(in thousands, except percentages)		2026			2025
Gross profit		$	580,313		$	458,326
Gross margin		90		%	88		%
Adjusted for: Transaction and risk losses		88,905			109,145
Transaction profit		$	491,408		$	349,181
Transaction margin		76		%	67		%


	Three Months Ended March 31,
(in thousands, except share and per share amounts)		2026		2025
Revenue		$	647,387	$	518,744
Cost of revenue(1)		67,074		60,418
Gross profit		580,313		458,326
Operating expenses:
Transaction and risk losses		88,905		109,145
Member support and operations(2)		95,399		78,609
Sales and marketing(2)		165,431		132,573
Technology and development(2)		109,780		77,882
General and administrative(2)		70,467		47,173
Depreciation and amortization(1)		4,168		3,807
Total operating expenses		534,150		449,189
Income from operations		46,163		9,137
Other income, net		7,748		5,354
Income before income taxes		53,911		14,491
Provision for income taxes		455		1,552
Net income		53,456		12,939
Undistributed earnings attributable to preferred stockholders		—		(12,939)
Net income attributable to common stockholders		$	53,456	$	—
Net income per share attributable to common stockholders:
Basic		$	0.14	$	—
Diluted		$	0.13	$	—
Weighted average number of common shares outstanding used to compute net income per share attributable to common stockholders:
Basic		381,636,920		65,868,810
Diluted		400,476,567		65,868,810


	Three Months Ended March 31,
(in thousands)		2026		2025
Depreciation and amortization recorded in cost of revenue		$	3,497	$	3,451
Depreciation and amortization recorded as operating expense		4,168		3,807
Total depreciation and amortization		$	7,665	$	7,258


	Three Months Ended March 31,			Change		Change
(in thousands, except percentages)		2026		2025		($)		%
Payments revenue		$	432,644	$	375,312	$	57,332	15	%
Platform-related revenue		214,743		143,432		71,311		50	%
Total revenue		$	647,387	$	518,744	$	128,643	25	%


Class A and B common stock issued and outstanding			382,604,119
Stock options outstanding			24,659,086
Service-based RSUs outstanding			27,131,365
PSUs outstanding			8,203,929
Shares reserved for charitable donations			2,889,173
Total fully diluted share count			445,487,672


	Total Number of Shares Repurchased(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program (1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (1)
					(in millions)
January 1, 2026 to January 31, 2026	586,864	$	26.22	586,864	$	107
February 1, 2026 to February 28, 2026	816,771	$	21.65	816,771	$	89
March 1, 2026 to March 31, 2026	2,677,492	$	19.67	2,677,492	$	37
Total	4,081,127	$	21.01	4,081,127	$	37


	CHIME FINANCIAL, INC.

May 7, 2026	By:	/s/ Christopher Britt
		Christopher Britt
		Chief Executive Officer and Chairman

May 7, 2026	By:	/s/ Matthew Newcomb
		Matthew Newcomb
		Chief Financial Officer