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Chime Financial, Inc. (CHYM)·Q3 2025 Earnings Summary

Executive Summary

  • Strong quarter with broad beats and raised outlook: Revenue grew 29% YoY to $543.5M (vs S&P Consensus $531.3M)* and Primary EPS (S&P definition) was $0.084 (vs -$0.242 consensus)*; Adjusted EBITDA was $28.8M with 5% margin, up 9ppt YoY .
  • Mix shift lifts monetization: Outbound Instant Transfers (OIT) scaled to $640M volume in Q3; combined with debit, this supported 20% YoY growth for payments+OIT revenue and 87% gross margin, with MyPay loss rates improving below 120 bps and MyPay transaction margin >45% .
  • Guidance raised and buyback announced: Q4 revenue guided to $572–$582M and Adj. EBITDA to $43–$48M; full-year revenue raised to $2.163–$2.173B and Adj. EBITDA to $113–$118M; $200M share repurchase authorization established .
  • Structural margin catalysts into Q4/2026: ChimeCore migration completed ahead of schedule; management expects Q4 gross margin “close to 90%” and Q4 incremental Adj. EBITDA margin in the mid‑50s, above prior mid‑40s outlook .

What Went Well and What Went Wrong

  • What Went Well

    • Beat and raise quarter: “We delivered another outstanding quarter, exceeding guidance, expanding margins, and raising our full-year outlook.” — CEO Chris Britt .
    • Product monetization tailwinds: OIT hit $640M volume and earns a 1.75% fee; shift from payments to platform increases take rate; MyPay transaction margin >45% with loss rates <120 bps .
    • Cost and platform execution: ChimeCore migration finished ahead of schedule; Q4 gross margin expected near 90%; non‑GAAP OpEx grew just 7% YoY in Q3 with broad operating leverage .

  • What Went Wrong

    • Transaction margin mix headwind: Transaction margin remained 69% vs 74% in Q3’24, as newer credit/liquidity products (MyPay) carry lower initial margin while maturing .
    • GAAP profitability remains negative: Net loss of $(54.7)M (−10% net margin), though significantly less severe than Q2’s IPO‑driven stock comp distortion .
    • One‑time Q4 expense: ~$(33)M contract termination charge from third‑party processor to be recognized in Q4 (excluded from Adj. EBITDA), a non‑cash but headline headwind .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Thousands)$421,871 $528,149 $543,519
Gross Profit ($USD Thousands)$368,355 $461,029 $474,118
Gross Margin %87% 87% 87%
Net Income (Loss) ($USD Thousands)$(22,026) $(923,376) $(54,722)
Net Margin %(5)% (175)% (10)%
Adjusted EBITDA ($USD Thousands)$(13,613) $16,003 $28,757
Adjusted EBITDA Margin %(3)% 3% 5%
Transaction Profit ($USD Thousands)$313,196 $362,782 $377,065
Transaction Margin %74% 69% 69%

Results vs S&P Global consensus (Q3 2025):

  • Revenue: $543.5M vs $531.3M consensus → Beat by ~2.3%*
  • Primary EPS (S&P definition): $0.084 vs −$0.242 consensus → Beat by $0.3255*
  • EBITDA (S&P definition): $39.9M vs $15.1M consensus → Beat*
    Values retrieved from S&P Global.*

Segment and monetization

  • Payments revenue: $366M (Q2’25) → $363M (Q3’25); Platform-related revenue: $162M (Q2’25) → $180M (Q3’25) .
  • Purchase Volume (PV): $32.4B (Q2’25) → $32.3B (Q3’25); OIT volume scaled to $0.64B in Q3 .

KPIs

KPIQ2 2025Q3 2025
Active Members (Millions)8.7 9.1
ARPAM ($)245 245
Purchase Volume ($B)32.4 32.3
OIT Volume ($B)—0.64
MyPay Loss Rate (bps)~140 <120
MyPay Transaction MarginTripled QoQ (Q2) >45%

Notes:

  • Company GAAP diluted loss/share was $(0.15) in Q3 despite positive “Primary EPS (S&P)” actual; definitions differ (S&P vs GAAP) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q4 2025—572–582 New
Adjusted EBITDA ($M)Q4 2025—43–48 New
Adjusted EBITDA Margin %Q4 2025—8% New
One-time Expense (excl. from Adj. EBITDA) ($M)Q4 2025—~33 (Galileo termination) New
Revenue ($B)FY 20252.135–2.155 2.163–2.173 Raised
Adjusted EBITDA ($M)FY 202584–94 113–118 Raised
Incremental Adj. EBITDA MarginQ4 2025Mid‑40s (by Q4) Mid‑50s Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
AI/cost-to-serveGenAI voicebot more than doubled satisfaction; AI handles majority of support interactions, enabling scale and lower cost .Cost-to-serve advantage; headcount expected flat; continued AI leverage to curb OpEx growth .Improving efficiency
ChimeCore migrationMigrated all new accounts; full migration expected over next few quarters .Migration completed ahead of schedule; Q4 gross margin expected close to 90% .Accelerating impact
MyPay economicsTripled transaction margin QoQ; loss rate ~140 bps with target ~1% .Loss rate <120 bps; transaction margin >45%; target ~1% “in coming quarters” .Improving faster than plan
OIT (instant transfers)Early disclosure of platform growth; no specific OIT volume disclosed.OIT volume $640M; 1.75% fee; mix shift from payments to platform lifts take rate .Positive monetization mix
Chime Card (secured credit)Scaling credit builder; higher interchange than debit .Rolled out to new members; 80% of spend among adopters on credit; plan to roll to existing base .Early traction
Enterprise (Workplace)Launch progressing; pipeline building; low-CAC channel .Strategic partnerships (Workday, UKG); early employer launches with strong DD adoption .Building momentum
Consumer health/macroStable spend; resilient non-discretionary exposure .Healthy spend, balances up; no unemployment pressure observed .Stable

Q1 references not available in our document set.

Management Commentary

  • “We delivered another outstanding quarter, exceeding guidance, expanding margins, and raising our full-year outlook.” — Chris Britt, CEO .
  • “We expect [ChimeCore] to increase our gross margin to close to 90% in Q4.” — Matt Newcomb, CFO .
  • “OIT…offers a faster, more convenient member experience…We earn a 1.75% fee…far higher than our take rate on debit purchase volume.” — CFO .
  • “MyPay loss rates fell below 120 basis points in Q3…We’re well on our way to [~1%] in the coming few quarters.” — CFO .
  • “We’re announcing a $200 million share repurchase authorization…” — CEO ; authorization details disclosed in 8‑K .

Q&A Highlights

  • Acquisition funnel and CAC: New cohort paybacks improved to 5–6 quarters from ~7; CAC down >10% YoY for third straight quarter; organic/referrals >50% of new actives .
  • PV per user and OIT mix: Combined PV+OIT grew ~20% YoY; OIT is shifting monetization to higher take-rate platform revenue, tempering reported PV growth .
  • Margin outlook: Q4 gross margin near 90% post-ChimeCore; Q4 incremental Adj. EBITDA margin expected mid‑50s; MyPay loss rates tracking toward ~1% .
  • Enterprise channel: Early adoption above expectations; partnerships with Workday/UKG to unlock access and data; seen as meaningful medium‑term DD driver at lower CAC .
  • Chime Card expansion: 80% of spend among adopters is credit; 175 bps interchange net of rewards; broader rollout planned .

Estimates Context

  • Q3 2025 vs S&P Global consensus: Revenue $543.5M vs $531.3M; Primary EPS $0.084 vs −$0.242; EBITDA $39.9M vs $15.1M — broad beats likely to drive upward revisions to margin trajectories and validate higher Q4 incremental margins.*
  • Q4 2025 consensus: Revenue $577.9M; EBITDA $46.5M, broadly consistent with company guidance (revenue $572–$582M; Adj. EBITDA $43–$48M), suggesting limited change near-term but greater confidence in margin conversion.*
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Beat-and-raise with improving unit economics: Revenue and EPS (S&P definition) beat, FY revenue and Adj. EBITDA raised; structural margin catalysts from ChimeCore and MyPay improvement .
  • Monetization improving via mix: OIT’s 1.75% fee and credit attach (Chime Card) are increasing take rates, even as reported PV is tempered by OIT substitution .
  • Profit trajectory strengthening: Q4 gross margin near 90% and mid‑50s incremental Adj. EBITDA margin support accelerating operating leverage into 2026 .
  • Demand/brand resilient: Actives up 21% YoY to 9.1M with CAC down >10% YoY; higher‑income segment ($75k+) is fastest-growing; consumer health within base looks solid .
  • Enterprise as new low‑CAC pipe: Workday/UKG partnerships, strong early adoption; a medium‑term driver of direct deposit adoption .
  • Capital return supports valuation: $200M buyback authorization adds downside support while growth investments continue .
  • Watch Q4 one‑time charge: ~$33M Galileo termination expense (excluded from Adj. EBITDA) is a non‑cash optical headwind in Q4 .

Appendix: Results vs S&P Consensus (Q3 2025)

MetricConsensusActualSurprise
Revenue ($M)531.3*543.5 +2.3%*
Primary EPS (S&P) ($)-0.242*0.084*+0.326*
EBITDA ($M, S&P)15.1*39.9*Beat*
Values retrieved from S&P Global.*

Appendix: Segments and KPIs (detail)

MetricQ2 2025Q3 2025
Payments Revenue ($M)366 363
Platform-related Revenue ($M)162 180
Purchase Volume ($B)32.4 32.3
OIT Volume ($B)—0.64
Active Members (M)8.7 9.1
ARPAM ($)245 245

Non-GAAP definitions and reconciliations are provided in the 8‑K press releases and include Transaction Profit/Margin and Adjusted EBITDA/Margin .