Q3 2025 Chime Financial Inc Earnings Call

November 5, 2025

Toward it and a replay of this call will be available on our Investor Relations web site for a reasonable period of time after the call.

I'd like to turn the call over to David Pearce, Vice President of Investor Relations and capital markets. Thank you you may begin.

Good afternoon, everyone and thank you for joining us for <unk> third quarter 2025 earnings Conference call. Joining me today are Chris Britt co founder and CEO and Matt <unk>, our CFO, Mark <unk>, our CFO, who will participate in Q&A.

As a reminder, we will disclose non-GAAP financial measures on this call definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and our earnings presentation posted on our IR website at investors Dot time Dot Com. We will also make forward looking statements on this call, including statements about our business future outlook Ingalls.

Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described.

Any of those risks and uncertainties are described in our SEC filings, including our Form 10-Q filed on August 11 2025.

Forward looking statements represent our beliefs and assumptions only as of the date such statements are made.

We disclaim any obligation to update any forward looking statements, except as required by law with that I'll hand, it over to Chris.

Thanks, David and thank you all for joining us.

Q3 was another strong quarter for us and I am so proud to lead this talented team that has made chime and industry leader in banking mainstream America.

Month after month more everyday people are choosing to move their banking relationship to chime than any other fintech or bank. In fact, just last month J D power reported that in Q3 more people open a checking account at schein than any other U S companies.

And we're still just getting started.

We're up to $9 1 million active members in our market of nearly 200 million people, earning up to a $100000 per year. We're at a $2 billion revenue run rate in an over $400 billion market.

There is a secular shift happening in mainstream America towards digital banking, that's helpful easy and fruit and China is leading the way.

Our strong Q3 financial and operating results demonstrate our progress.

We delivered 29% year over year revenue growth. Despite lapping the initial launch of our blockbuster new product my pay.

We also improved our adjusted EBITDA margin by nine points year over year, both revenue and adjusted EBITDA exceeded guidance for the quarter.

Driving this growth was a 21% year over year increase in active members to $9 1 million a sequential increase of approximately 400000 from Q2.

Given this momentum we are raising our Q4 and full year guidance for revenue and adjusted EBITDA.

Despite the headlines about macro risks in consumer health, we see continued resilience among our members our business is powered by long lasting primary account relationships, we maintain low credit risk through our short duration liquidity products underwritten by recurring direct deposits.

Over the last decade, our business has proven to be resilient across macro cycles.

In fact, China can shine most when times are tough.

In softer macro environments consumers often become more value conscious and we believe that China offers the most compelling banking experience and the best value.

Our members continue to show strong financial health with steady growth in spending among tenured cohorts higher average deposit balances and consistent use of our liquidity products with lower loss rates.

Importantly, we're not seeing any signs of unemployment pressure within our member base.

Today I'll share some highlights from Q3, and what continues to set China part <unk>.

Putting our category, leading products trusted brand and cost to serve advantage.

Starting with product in September we launched our new China carbon our latest innovation to make <unk> the best checking account for mainstream America.

This new car makes fee free banking with chime even more rewarding.

With one 5% cashback on everyday spend categories for direct depositors.

And a titanium card option, we're now delivering an even more premium banking experience for our members.

Chime card builds on the strength of China, plus which offers our direct deposit members of three 5% interest rate on savings eight times the national average.

It also offers fee free overdrafts access to your paycheck on demand with my pay free credit building and priority member support.

We don't believe any incumbent offers consumers anywhere near this level of utility and value, including higher earners.

In fact in Q3 members, making 75 or more annually were our fastest growing consumer segment.

The new China card is a secured credit card that helps our members earn rewards while improving their credit score.

Because it's a credit card, we earned 175 basis points of interchange, which is over 50% higher than our average Q3 take rate.

The results in the first two months are promising new members, who adopted chime card are already using it for 80% of their spend.

Portfolio wide spend on our credit card products represents only 16% of total purchase volume as of Q3. So we're very excited about the growth potential as volume shifts to credit spin.

We've also enhanced our short term liquidity products, including methane.

In the year since we first rolled out this product <unk> has proven to be another essential feature that's loved by our members squirts convenience and low cost.

<unk> is now in over $350 million annual run rate product with a transaction margin of over 45%.

We've more than quadrupled my pay transaction margin and just the last two quarters.

These results are a case study in product innovation only possible due to China's primary direct deposit relationships.

In terms of our brand leadership chime continues to gain momentum setting us apart from both legacy players and potential new entrants.

In Q3, our unaided awareness in the online banking category reached 41%.

12 points since 2023 with the fastest growth among Americans, earning 50 to $100000 annually.

Now only trails, the two largest banks in unaided awareness for online banking and is ahead of Wells Fargo Citi and every other national Bank.

And just last month.

<unk> released their latest National survey and ranking of the top U S brands by category for the first time, China was ranked the number one banking brand in the U S. According to consumers for 2025 ahead of all major banks and Fintech and we're not even a bank.

The final advantage I want to recap is the significant progress we've made in our cost to serve.

China cost to serve is roughly one third to one fifth of an incumbent bank and this advantage continues to improve over the last two years, we've reduced our cost to serve by 20% while growing our Pam by 18%.

Our continued operating Leverages clear in our Q3 financials, which Matt will discuss.

With our scaled model and the growing benefits. We're realizing from AI. We don't believe we need to grow opex nearly as fast as we have historically to fuel our growth.

In fact, we expect to keep head count flat over the next year.

This should translate to significantly slower opex growth in 2026 versus 2025.

A major contributor to our cost to serve improvement has been our investment in China core our proprietary transaction processing core in ledger.

I'm excited to announce today that we've completed our migration ahead of schedule.

And we are now 100% on our own technology stack.

China core sets us apart from both traditional banks and syntax that rely on costly and often in flexible third party solutions.

Not only does schein provide efficiency gains that Matt will share, but it will continue to accelerate shipping velocity proprietary innovation and our AI advantage.

China <unk> allowed us to launch our new China part a key driver of growth for 2026 and beyond.

And with China core fully live it unleashes the next era of innovation for China to extend our lead as the go to banking platform for everyday Americans.

Our near term product roadmap includes a new more premium memberships here that will launch to reward our most engaged and higher earning members.

Joining accounts.

Studio accounts and investment products and Thats, just some of what we have on the docket for 2026.

These new innovations will give our members even more reasons to rely on China for all aspects of their financial lives across spending savings borrowing investing and more.

I also want to share a few updates on other emerging growth areas, including our early engagement programs and chime enterprise.

Our early engagement strategy is all about making it easier to use chime right out of the gate and it's helping US drive strong member acquisition at increasingly attractive unit economics.

We've updated our credit building features added more deposit options like inbound instant transfers and funding with Apple pay.

We continue to experiment with offering my paid before members direct deposit and it made it easier to transfer money from chime with outbound instant transfers or <unk>.

In Q3, the combination of these new initiatives helped reduce CAC, while allowing us to monetize relationships earlier and in new ways. There is more work to do but we're also encouraged by the early signs of success converting these new chime members to direct depositors over time, especially those who want to try before they buy.

Lastly, on China Enterprise I'm incredibly bullish about the impact of this new business unit will have on our growth. We're seeing early traction in the employer channel, bringing shine solutions to employees of our enterprise partners.

We recently announced partnerships with both workday and UK G. Two of the largest global human capital management platforms.

These integrations allow their employer customers to seamlessly offer time workplace to their employees.

And in Q3, we signed several new employer partners, including Maxwell Group Ubiquity and E Tech.

While still early days for China enterprise employee adoption rates of direct deposit has far exceeded our expectations.

<unk> sales cycles can be long, but I am excited by the momentum in our pipeline.

Our business continues to fire on all cylinders and is poised to deliver an exceptional 2026 that said, we do not believe our current stock price reflects the strength of our business. So today, we're announcing a $200 million share repurchase authorization, which we expect to implement in the coming months, we continue to have a.

<unk> cash position and a strong outlook on free cash flow generation, putting us in a great position to buy back shares at attractive values, while continuing to invest in the growth of our business.

We are well on our way to deliver on our vision to transform the way mainstream Americans bank, helping millions achieve lasting financial progress.

I am deeply proud of this generational company. We are building, we are a branded clubs and already rivals the largest banks in the world with more consumers choosing us than any other institution the future of banking belongs to China with that I will turn it over to Matt.

Thanks, Chris Good afternoon, everyone. Thank you all for joining us today I'm excited to discuss our strong third quarter results and outlook.

In Q3, we delivered 29% year over year revenue growth and our adjusted EBITDA margin rose to 5% up nine percentage points year over year.

These results exceeded our previous guidance and with this momentum we're raising guidance for Q4 and full year 2025.

The platform, we're building at Cheyenne and gives us multiple ways to win in the large market research.

I'd like to provide a few highlights about our strong performance across actives purchase volume, our Pam and transaction margin in Q3.

First we continue to see strong new active member growth at attractive and improving unit economics.

In Q3, thanks in part to our early engagement initiatives. We grew active members by 21% year over year, approximately 400000 sequentially, while reducing capped by over 10% year over year for the third consecutive quarter.

This has resulted in faster paybacks.

Recent cohorts are trending to a five to six quarter transaction profit payback a reduction from the seven quarter payback, we'd seen previously.

Of course, the real magic in our business is the stickiness of our cohorts for years and years beyond CAC payback.

Operator: As a reminder, this conference call is being recorded, and a replay of this call will be available on our Investor Relations website for a reasonable period of time after the call. I would like to turn the call over to David Pearce, Vice President of Investor Relations and Capital Markets. Thank you. You may begin.

We're well on our way to deliver on our vision to transform the way mainstream Americans bank, helping millions achieve lasting financial progress.

What's driving the LTV to CAC profile of eight X or higher powered by the consistent recurring engagement of our primary account relationships industry.

I am deeply proud of this generational company we're building with.

Industry data suggests the average life of a checking account is over 15 years.

We are a branded clubs and already rivals the largest banks in the world with more consumers choosing us in any other institution.

Our oldest cohorts are now nearly a decade old and showing no signs of slowing down.

David Pearce: Good afternoon, everyone, and thank you for joining us for Chime's third quarter 2025 earnings conference call. Joining me today are Chris Britt, our Co-founder and CEO, and Matt Newcomb, our CFO. Mark Trotton, our COO, will participate in Q&A. As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and our earnings presentation posted on our IR website at investors.chime.com. We will also make forward-looking statements on this call, including statements about our business, future outlook, and goals. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described. Many of those risks and uncertainties are described in our SEC filings, including our Form 10Q filed on 11 August 2025. Forward-looking statements represent our beliefs and assumptions.

The future of banking belongs to China with that I'll turn it over to Matt.

Second purchase volume we.

A resilient payments based revenue model driven by our members top of wallet recurring and largely non discretionary spend.

Thanks, Chris Good afternoon, everyone. Thank you all for joining us today I'm excited to discuss our strong third quarter results and outlook.

Like Chris mentioned, despite the concerns of our macro we're seeing very consistent spend trends among our tenured cohorts.

In Q3, we delivered 29% year over year revenue growth and our adjusted EBITDA margin rose to 5% up nine percentage points year over year.

I wanted to quickly highlight our product enhancement that is having a positive impact on the business.

These results exceeded our previous guidance and with this momentum we are raising guidance for Q4 and full year 2025.

<unk> instant transfers or <unk>.

While the majority of our members use China as their primary account. Some also maintained secondary accounts for activities like investing or peer to peer payments, especially those who are new to China.

The platform, we're building at Cheyenne gives us multiple ways to win in the large market we serve.

I'd like to provide a few highlights about our strong performance across actives purchase volume, our Pam and transaction margin in Q3.

Historically funding those accounts back and visiting these other apps and pulling funds using their <unk> cards.

First we continue to see strong new active member growth at attractive and improving unit economics.

These transactions are included in our purchase volume for PV.

With ore at <unk>.

David Pearce: Only as of the date such statements are made, we disclaim any obligation to update any forward-looking statements except as required by law. With that, I'll hand it over to Chris.

Members can now push money instantly to external accounts directly from China.

In Q3, thanks in part to our early engagement initiatives. We grew active members by 21% year over year, approximately 400000 sequentially, while reducing CAC by over 10% year over year for the third consecutive quarter.

<unk> a faster more convenient member experience.

<unk> volume is not included in PV.

Chris Britt: Thanks, David, and thank you all for joining us. Q3 was another strong quarter for us, and I'm so proud to lead this talented team that has made Chime an industry leader in banking mainstream America. Month after month, more everyday people are choosing to move their banking relationship to Chime than any other fintech or bank. In fact, just last month, J.D. Power reported that in Q3, more people opened a checking account at Chime than any other US company. We're still just getting started. We're up to 9.1 million active members in a market of nearly 200 million people earning up to $100,000 per year. We're at a $2 billion revenue run rate in an over $400 billion market. There's a secular shift happening in mainstream America towards digital banking that's helpful, easy, and free, and Chime is leading the way.

We're seeing members shifted volumes through this new experience since launching in January or at volume has scaled rapidly to $640 million in Q3.

This has resulted in faster paybacks.

Recent cohorts are trending to a five to six quarter transaction profit payback a reduction from the seven quarter payback, we'd seen previously.

This mix shift it tempers, our reported PD growth, but actually serves as a tailwind for our overall business. We are in a 175% fee on these transactions far higher than our take rate on capex purchase volume transactions.

Of course, the real magic in our business is the stickiness of our cohorts for years and years beyond CAC payback.

Which drives an LTV to CAC profile of eight X or higher powered by the consistent recurring engagement of our primary account relationships industry.

In Q3 purchase volume totaled $32 3 billion up 15% year over year, and $32 9 billion up 18% year over year when combined with volume.

Industry data suggests the average life of the checking account is over 15 years.

Our oldest cohorts are now nearly a decade old and showing no signs of slowing down.

This drove payments revenue growth of 16% year over year in Q3, and 20% when combined with <unk> revenue, which is included in platform revenue a very consistent pace of growth with the first half of the year.

Second purchase volume.

Have a resilient payments based revenue model driven by our members top of wallet recurring and largely non discretionary spend.

Like Chris mentioned, despite the concerns of our macro we're seeing very consistent spend trends among our tenured cohorts.

Third average revenue per active member or RPM.

Chris Britt: Our strong Q3 financials and operating results demonstrate our progress. We delivered 29% year-over-year revenue growth despite lapping the initial launch of our blockbuster new product, MyPay. We also improved our adjusted EBITDA margin by 9 points year-over-year. Both revenue and adjusted EBITDA exceeded guidance for the quarter. Driving this growth was a 21% year-over-year increase in active members to 9.1 million, a sequential increase of approximately 400,000 from Q2. Given this momentum, we're raising our Q4 and full-year guidance for revenue and adjusted EBITDA. Despite the headlines about macro risk and consumer health, we see continued resilience among our members. Our business is powered by long-lasting primary account relationships. We maintain low credit risk through our short-duration liquidity products underwritten by recurring direct deposits. Over the last decade, our business has proven to be resilient across macro cycles. In fact, Chime can shine most when times are tough.

Primary account relationships drive our already strong RPM and it continues to power higher alongside increasing levels of product attach.

I want to quickly highlight our product enhancement that is having a positive impact on the business.

Outbound instant transfers or <unk>.

In Q3, our Perm grew 6% year over year to 245, and we continue to see growth across every cohort with our Stephen cohort now at over 350 RPM.

While the majority of our members use China as their primary account. Some also maintained secondary accounts for activities like investing or Peter peer payments, especially those who are new to China.

This growth coincides with continued growth in attach rates across our expanding product ecosystem.

Historically funding those accounts back and visiting these other apps and pulling funds using their <unk> cards.

These transactions are included in our purchase volume or PV.

In Q3, 13% of our active members use six or more products on a monthly basis up from 5% two years ago.

With <unk>.

Members can now push money instantly to external accounts directly from the China offering a faster more convenient member experience.

This segment of members has an RPM of 466, nearly double our average active member and up 15% over the last few years.

<unk> volume is not included in PV.

We're seeing members shifted volumes through this new experience since launching in January <unk> volume has scaled rapidly to $640 million in Q3.

Said another way not only is the breadth of times opportunity massive with $9 1 million actives among $200 million everyday Americans.

This mix shift to <unk> tempers, our reported PV growth, but actually serves as a tailwind for our overall business.

So as the depth.

We're serving our members across multiple areas of their financial lives and there are so many more areas left to go.

We are in a 175% fee on these transactions far higher than our take rate on debit purchase volume transactions.

Finally, we continue to make progress on transaction margin a few highlights to call out on those fronts.

Chris Britt: In softer macro environments, consumers often become more value conscious, and we believe that Chime offers the most compelling banking experience and the best value. Our members continue to show strong financial health with steady growth in spending among tenured cohorts, higher average deposit balances, and consistent use of our liquidity products with lower loss rates. Importantly, we're not seeing any signs of unemployment pressure within our member base. Today, I'll share some highlights from Q3 and what continues to set Chime apart, including our category-leading products, trusted brand, and cost-to-serve advantage. Starting with product. In September, we launched our new Chime Card, our latest innovation to make Chime the best checking account for mainstream America. This new card makes fee-free banking with Chime even more rewarding.

First as Chris mentioned, we completed our migration to China, CT a massive unlock for future product velocity and continued cost efficiency.

In Q3 purchase volume totaled $32 3 billion up 15% year over year, and $32 9 billion up 18% year over year, when combined with <unk> volume.

We expect this final step of our migration to increase our gross margin to close to 90% in Q4.

Second might pay loss rate fell below 120 basis points from Q3.

Our more than 20 basis point sequential improvement from Q2, representing continued faster than planned progress toward our 1% loss rate target.

Third average revenue per active member or RPM <unk>.

<unk> transaction margin is now over 45%.

Primary account relationships drive our already strong RPM and it continues to power higher alongside increasing levels of product attach and.

Moving to the rest of our P&L, we continue to drive strong operating leverage in our business.

In Q3, our Perm grew 6% year over year to 245, and we continue to see growth across every cohort with our season cohort now at over 350 RPM.

In Q3, non-GAAP Opex grew just 7% year over year down from 14% growth in each one and the slowest rate in years, even as we continue to put substantial growth capital to work at apex LTV to CAC.

Chris Britt: With 1.5% cashback on everyday spend categories for direct depositors and a titanium card option, we're now delivering an even more premium banking experience for our members. Chime Card builds on the strength of Chime Plus, which offers our direct deposit members a 3.5% interest rate on savings, eight times the national average. It also offers fee-free overdrafts, access to your paycheck on demand with MyPay, free credit building, and priority member support. We don't believe any incumbent offers consumers anywhere near this level of utility and value, including higher earners. In fact, in Q3, members making $75,000 or more annually were our fastest-growing consumer segment. The new Chime Card is a secured credit card that helps our members earn rewards while improving their credit score. Because it's a credit card, we earn 175 basis points of interchange, which is over 50% higher than our average Q3 take rate.

This growth coincides with continued growth in attach rates across our expanding product ecosystem.

As a percentage of revenue non-GAAP opex fell by 14 percentage points year over year in Q3 with continued operating leverage across every opex category.

In Q3, 13% of our active members use six or more products on a monthly basis up from 5% two years ago.

This segment of members has an RPM of 466, nearly double our average active member and up 15% over the last two years.

Along with our progress on my pay transaction margin. This translated to a significant acceleration of our adjusted EBITDA margin growth improving nine percentage points year over year in Q3, well ahead of what we delivered in each one.

Said another way not only is the breadth of times opportunity massive with $9 1 million actives among $200 million everyday Americans, but so is the depth.

And we expect this trend to continue in Q4, where we now expect 11 percentage points improvement to our adjusted EBITDA margin year over year, and an incremental margin in the mid fifties, even higher than the mid fourteens, we guided to last quarter.

We're serving our members across multiple areas of their financial lives and there are so many more areas left to go.

Finally, we continue to make progress on transaction margin a few highlights to call out on those fronts.

More specifically on our outlook, we're pleased to raise our fourth quarter and full year guidance driven by continued broad based strength in the business.

First as Chris mentioned, we completed our migration to China quarter.

Massive unlock for future product velocity and continued cost efficiency.

In the fourth quarter, we expect revenue between 572 and $582 million, resulting in year over year revenue growth between 20 and 23%.

We expect this final step of our migration to increase our gross margin to close to 90% in Q4.

Chris Britt: The results in the first two months are promising. New members who've adopted Chime Card are already using it for 80% of their spend. Portfolio-wide, spend on our credit card products represents only 16% of total purchase volume as of Q3, so we're very excited about the growth potential as volume shifts to credit spend. We've also enhanced our short-term liquidity products, including MyPay. In the year since we first rolled out this product, MyPay has proven to be another essential feature that's loved by our members for its convenience and low cost. MyPay is now an over $350 million annual run rate product with a transaction margin of over 45%. We've more than quadrupled MyPay transaction margin in just the last two quarters. These results are a case study in product innovation, only possible due to Chime's primary direct deposit relationships.

This exceeds our previous guidance, which forecast 20% growth at the midpoint.

Second my pay loss rate fell below 120 basis points from Q3 of.

We expect adjusted EBITDA between 43% and $48 million and.

For more than 20 basis point sequential improvement from Q2, representing continued faster than planned progress toward our 1% loss rate target.

And an adjusted EBITDA margin of 8%. This also exceeds our previous guidance of 6% margin at the midpoint.

<unk> transaction margin is now over 45%.

There are a few things to keep in mind about Q4.

Moving to the rest of our P&L, we continue to drive strong operating leverage in our business.

First we expect to see steady progress on active member growth at attractive ROI with continued positive results from our early engagement strategies.

In Q3, non-GAAP Opex grew just 7% year over year down from 14% growth in each one and the slowest rate in years, even as we continue to put substantial growth capital work at apex LTV to CAC.

We expect to continue to see strong growth in AUM and therefore, a continued mix shift of revenue from payments to platform in Q4.

As a percentage of revenue non-GAAP opex fell by 14 percentage points year over year in Q3 with continued operating leverage across every opex category.

This of course is a positive for our financials given the higher take rates on OE volume.

As Youll recall, we are now lapping last year's launch of my pay which began ramping in Q3 24.

Chris Britt: In terms of our brand leadership, Chime continues to gain momentum, setting us apart from both legacy players and potential new entrants. In Q3, our unaided awareness in the online banking category reached 41%, up 12 points since 2023, with the fastest growth among Americans earning $50,000 to $100,000 annually. Chime now only trails the two largest banks in unaided awareness for online banking and is ahead of Wells Fargo, Citi, and every other national bank. Just last month, Chime released their latest national survey and ranking of the top US brands by category. For the first time, Chime was ranked the number one banking brand in the US according to consumers for 2025, ahead of all major banks and fintechs, and we're not even a bank. The final advantage I want to recap is the significant progress we've made in our cost-to-serve.

We will fully lap the launch in Q4, 25, which is what is driving some further normalization of our topline growth rate in our Q4 guidance.

Finally, as part of our termination agreement with our third party processor Galileo we will incur a onetime expense of approximately $33 million excluded from adjusted EBITDA.

We originally expected to recognize this expense in Q1, 'twenty six but with our China core migration to including ahead of schedule. We now expect to recognize this in Q4.

More specifically on our outlook, we're pleased to raise our fourth quarter and full year guidance driven by continued broad based strength in the business.

We will maintain our contractual relationship with Galileo through March 2026.

For the full year, we expect revenue of $2 163 to $2 173 billion and adjusted EBITDA of $113 million to $118 million above our prior guidance.

In the fourth quarter, we expect revenue between 572% and $582 million, resulting in year over year revenue growth between 20% and 23%.

This exceeds our previous guidance, which forecast 20% growth at the midpoint.

So we're pleased with our strong Q3 results and outlook for Q4, but we're even more optimistic about 2026 and beyond.

We expect adjusted EBITDA between 43% and $48 million and.

Chris Britt: Chime's cost-to-serve is roughly 1/3 to 1/5 of an incumbent bank, and this advantage continues to improve. Over the last two years, we've reduced our cost-to-serve by 20% while growing our PAM by 18%. Our continued operating leverage is clear in our Q3 financials, which Matt will discuss. With our scaled model, and the growing benefits we're realizing from AI, we don't believe we need to grow OPEX nearly as fast as we have historically to fuel our growth. In fact, we expect to keep headcount flat over the next year. This should translate to significantly slower OPEX growth in 2026 versus 2025. A major contributor to our cost-to-serve improvement has been our investment in Chime Core, our proprietary transaction processing core and ledger. I'm excited to announce today that we've completed our migration ahead of schedule, and we're now 100% on our own technology stack.

And an adjusted EBITDA margin of 8%. This also exceeds our previous guidance of 6% margin at the midpoint.

While we won't give formal guidance for 2026 until our next earnings call. We believe the strong progress we're seeing across the business is setting the stage for continued strong topline growth additional transaction margin expansion and substantially slower opex growth.

There are a few things to keep in mind about Q4.

First we expect to see steady progress on active member growth at attractive ROI with continued positive results from our early engagement strategies.

Resulting in a step up in our adjusted EBITDA margin that is above our previous expectations.

We expect to continue to see strong growth in <unk> and therefore, a continued mix shift of revenue from payments to platform in Q4.

Specifically, we expect our 26 incremental adjusted EBITDA margin to be above the mid fifties, we're guiding to for Q4 of this year.

This of course is a positive for our financials given the higher take rates on OE volume.

Finally, as a reminder, our full IPO lockup ends on Friday morning, the beginning of the second full trading days following today's earning announcement.

As you'll recall, we are now lapping last year's launch of <unk>, which began ramping in Q3 24.

With that I will open it up to Q&A.

We will fully lap the launch in Q4, 25, which is what is driving some further normalization of our topline growth rate in our Q4 guidance.

Thank you.

I would like to ask a question press star one on your keypad Televisa queue at any time press star two once again that is star and wanted to ask a question and we'll take our first question from King Senior Hong from Jpmorgan. Your line is now open.

Finally, as part of our termination agreement with our third party processor Galileo we will incur a onetime expense of approximately $33 million excluded from adjusted EBITDA.

Chris Britt: Chime Core sets us apart from both traditional banks and fintechs that rely on costly and often inflexible third-party solutions. Not only does Chime Core provide efficiency gains that Matt will share, but it will continue to accelerate shipping velocity, proprietary innovation, and our AI advantage. Chime Core allowed us to launch our new Chime Card, a key driver of growth for 2026 and beyond. With Chime Core fully live, it unleashes the next era of innovation for Chime to extend our lead as the go-to banking platform for everyday Americans. Our near-term product roadmap includes a new, more premium membership tier that we'll launch to reward our most engaged and higher-earning members: joint accounts, custodial accounts, and investment products. That's just some of what we have on the docket for 2026.

We originally expected to recognize this expense in Q1, 'twenty six but with our China core migration to including ahead of schedule. We now expect to recognize this in Q4.

Thanks, So much really nice results guys happy to see it on the.

Member growth wanted to ask about that and what youre seeing competitively there.

We will maintain our contractual relationship with Galileo through March 2026.

Any change in competitive competitiveness it sounds like cap was still an improvement there, but I'm curious what you're seeing on the ground and any learnings from widening the funnel that kind of thing. Thank you.

For the full year, we expect revenue of $2 163 to $2 173 billion and adjusted EBITDA of $113 million to $118 million above our prior guidance.

Hey, Tien tsin, thanks for the question.

Yes look we continue to see really strong momentum and we feel good about our competitive position as you heard in the opening statement. We are the number one destination for people that are switching their direct deposits should be able to make up to about $100000 a year in.

So we're pleased with our strong Q3 results and outlook for Q4, but we're even more optimistic about 2026 and beyond.

Chris Britt: These new innovations will give our members even more reasons to rely on Chime for all aspects of their financial lives across spending, savings, borrowing, investing, and more. I also want to share a few updates on other emerging growth areas, including our early engagement programs and Chime Enterprise. Our early engagement strategy is all about making it easier to use Chime right out of the gate and is helping us drive strong member acquisition at increasingly attractive unit economics. We've ungated our credit-building features, added more deposit options like inbound instant transfers and funding with Apple Pay. We continue to experiment with offering MyPay before members direct deposit, and have made it easier to transfer money from Chime without outbound instant transfers or our OIT service. In Q3, the combination of these new initiatives helped reduce CAC while allowing us to monetize relationships earlier and in new ways.

And just in the past couple of weeks J D power reaffirmed our leadership in that area. So.

I think it's fair to say that we've broken out as a top brand in banking and that caused a lot of our growth in business, including a referral channel our organic channel, which continue to power over 50% of our new active member growth.

Resulting in a step up in our adjusted EBITDA margin that is above our previous expectations.

Specifically, we expect our 26 incremental adjusted EBITDA margin to be above the mid fifties, we're guiding to for Q4 of this year.

Finally, as a reminder, our full IPO lockup ends on Friday morning, the beginning of the second full trading days following today's earning announcement.

The opening statement, we talked about 21% growth in our active members, but if you look at.

At the last 12 months.

We've added $1 6 million actives, and that's an acceleration from the $1 2 million active that we delivered in the 12 months trailing Q3 24 so.

With that I will open it up to Q&A.

Thank you.

I would like to ask a question press star one on your keypad to leave the queue at any time press star two once again that is star and wanted to ask a question and we'll take our first question from King Senior Hong from JP Morgan. Your line is now open.

<unk>.

So good top of the funnel growth and we're continuing to see strong conversion rates under direct deposit right out of the gate, which of course is what we're always optimizing for but at the same time, we're seeing positive impact from our early engagement strategy, which makes it easier for people to start using chime, even if youre not ready to direct deposit on day one.

Chris Britt: There's more work to do, but we're also encouraged by the early signs of success converting these new Chime members to direct depositors over time, especially those who want to try before they buy. Lastly, on Chime Enterprise, I'm incredibly bullish about the impact this new business unit will have on our growth. We're seeing early traction in the employer channel, bringing Chime solutions to employees of our enterprise partners. We recently announced partnerships with both Workday, and UKG, two of the largest global human capital management platforms. These integrations allow their employer customers to seamlessly offer Chime Workplace to their employees. In Q3, we signed several new employer partners, including Maxwell Group, Ubiquiti, and Etech. While still early days for Chime Enterprise, employee adoption rates of direct deposit have far exceeded our expectations. Enterprise sales cycles can be long, but I'm excited by the momentum in our pipeline.

Thanks, So much really nice results guys happy to see it on the.

Member growth wanted to ask about that and what youre seeing competitively there.

<unk> for example, things like making it easier to fund to build your credit and even user version of my pay.

Any change in competitive as its competitiveness it sounds like <unk> was still an improvement there, but I'm curious what you're seeing on the ground and any learnings from widening the funnel.

Before you start to indirect deposit so we're feeling good about the results from these initiatives and maybe Matt can share any color on that.

Sure thing thank you.

Some of those results, yes, I think thanks, Christy the high level here is that the combination of these early engagement initiatives.

Hey, Tien tsin, thanks for the question.

Yes look we continue to see really strong momentum and we feel good about our competitive position as you heard in the opening statement. We are the number one destination for people that are switching their direct deposit should be able to make up to about $100000 a year.

Really already having a positive impact on the business.

We're seeing.

Among new checking account openings a record number of people activating with us out of the gate, we're seeing lower CAC as Chris mentioned.

And just in the past couple of weeks JD power reaffirmed our leadership in that area. So.

Down 10% over 10% year over year for the third consecutive quarter.

I think it's fair to say that we've broken out as a top brand in banking and that fuels a lot of our growth in business, including a referral channel our organic channel, which continue to power over 50% of our new active member growth.

At the same time, we're monetizing at higher rates. So a recent cohorts continue to engage with us in new ways. They are attaching to more products earlier in their tenure, thank you, Steve and the overall growth of our RPM.

Chris Britt: Our business continues to fire on all cylinders and is poised to deliver an exceptional 2026. That said, we do not believe our current stock price reflects the strength of our business. Today, we're announcing a $200 million share repurchase authorization, which we expect to implement in the coming months. We continue to have a robust cash position and a strong outlook on free cash flow generation, putting us in a great position to buy back shares at attractive values while continuing to invest in the growth of our business. We are well on our way to deliver on our vision to transform the way mainstream Americans bank, helping millions achieve lasting financial progress. I'm deeply proud of this generational company we're building. We have a brand that's loved, and already rivals the largest banks in the world, with more consumers choosing us than any other institution.

But we're also seeing specifically.

The opening statement, we talked about 21% growth in our active members, but if you look at.

For those members, who havent, yet engaged with us and our direct deposit capacity, we're seeing for that segment of members. Their average transaction profit is up about 20% versus last year.

At the last 12 months.

We've added $1 6 million actives, and that's an acceleration from the $1 2 million active that we delivered in the 12 months trailing Q3 'twenty four so.

So combined with what Chris mentioned, which is continued strong conversion to direct deposit among those people that are ready to do so right out of the gate.

<unk>.

The result of all of that has actually been an improvement to our cohort performance and more specifically that our most recent quarterly cohorts are tracking to closer to a five to six quarter transaction profit CAC payback compared to closer to seven quarters previous cohorts.

Got it thanks for your company.

For example, things like making it easier to fund to build your credit and even user version of my pay.

Chris Britt: The future of banking belongs to Chime. With that, I'll turn it over to Matt. Thanks, Chris. Good afternoon, everyone. Thank you all for joining us today. I'm excited to discuss our strong third-quarter results and outlook. In Q3, we delivered 29% year-over-year revenue growth, and our adjusted EBITDA margin rose to 5%, up 9 percentage points year-over-year. These results exceeded our previous guidance, and with this momentum, we're raising guidance for Q4 and full year 2025. The platform we're building at Chime gives us multiple ways to win in the large market we serve. I'd like to provide a few highlights about our strong performance across actives, purchase volume, our RPAM, and transaction margin in Q3. First, we continue to see strong new active member growth at attractive and improving unit economics.

Thank you guys.

Thank you we'll take our next question from James Faucette with Morgan Stanley. Please go ahead. Your line is now open.

Before you start to indirect deposit so we're feeling good about the results from these initiatives and maybe Matt can share any color on that.

Thanks wanted to ask.

Some of those results yet I think thanks, Chris the high level here is that the combination of these early engagement initiatives.

Couple of follow up questions to that it seems like.

Payment volume per per users is downward a little bit, but we haven't really seen a big increase in the pace of quarterly user quarterly ads.

Really already having a positive impact on the business.

We're seeing.

Among new checking account openings a record number of people activating with us out of the gate, we're seeing lower CAC as Chris mentioned.

Some of that softness seems to be or some of that like kind of sequential change seems to be.

Down 10% over 10% year over year for the third consecutive quarter.

<unk> perhaps.

Yes.

At the same time, we're monetizing at higher rates. So our recent cohorts continue to engage with us in new ways. They are attaching to more products earlier in their tenure, thank you, Steve and the overall growth of our RPM.

At least that's what it was previously is that still the primary dynamic or any other nuance around consumer health within the base that we should be sensitive to.

Chris Britt: In Q3, thanks in part to our early engagement initiatives, we grew active members by 21% year-over-year, approximately 400,000 sequentially, while reducing CAC by over 10% year-over-year for the third consecutive quarter. This has resulted in faster paybacks. Recent cohorts have trended into a five-to-six-quarter transaction profit payback, a reduction from the seven-quarter payback we had seen previously. Of course, the real magic in our business is the stickiness of our cohorts for years and years beyond CAC payback, which drives an LTV to CAC profile of 8x or higher, powered by the consistent, recurring engagement of our primary account relationships. Industry data suggests the average life of a checking account is over 15 years. Our oldest cohorts are now nearly a decade old and showing no signs of slowing down. Second, purchase volume. We have a resilient payments-based revenue model driven by our members' top-of-wallet, recurring, and largely non-discretionary spend.

Yes, let me let me touch on that thanks for the question James.

But we're also seeing specifically.

I think the.

The other point too.

For those members, who havent, yet engaged with us and our direct deposit capacity, we're seeing for that segment of members there.

Callout here is number one we're actually seeing very consistent overall transaction volumes year to date. The one thing that is a newer trend.

Their average transaction profit is up about 20% versus last year.

The very fast adoption of outbound instant transfers for ROIC. This is what.

So combined with what Chris mentioned, which is continued strong conversion to direct deposit among those people that are ready to do so right out of the day.

We talked about in the prepared remarks, a little bit a little bit earlier, this has grown even faster than our own internal expectations.

The result of all of this has actually been an improvement to our cohort performance and more specifically our most recent quarterly cohorts are tracking to closer to a five to six quarter transaction profit CAC payback compared to closer to seven quarters in previous cohorts.

So as we mentioned earlier.

<unk> enables members to instantly push money to secondary accounts directly from China.

Historically, the only way to move from instantly was for our members to go to the secondary accounts and pull money using their <unk> cards.

Got it thanks for your question.

Thank you guys.

Our transaction is very similar to a purchase transaction and it earns us interchange.

Thank you we'll take our next question from James Faucette with Morgan Stanley. Please go ahead. Your line is now open.

The result of this.

As a mixed shift from payments to platform revenue and Thats because the volume from the historical way to make instant transfers is included in purchase volume.

Chris Britt: Like Chris mentioned, despite the concerns over macro, we're seeing very consistent spend trends among our tenured cohorts. I want to quickly highlight a product enhancement that is having a positive impact on the business. Outbound instant transfers, or OIT. While the majority of our members use Chime as their primary account, some also maintain secondary accounts for activities like investing or peer-to-peer payments, especially those who are new to Chime. Historically, funding those accounts meant visiting these other apps and pulling funds using their Chime cards. These transactions are included in our purchase volume, or PV. With OIT, members can now push money instantly to external accounts directly from the Chime app, offering a faster, more convenient member experience. OIT volume is not included in PV. We're seeing members shift volumes to this new experience. Since launching in January, OIT volume has scaled rapidly to $640 million in Q3.

Thanks wanted to ask.

Couple of follow up questions to that it seems like.

Payment volume per per users is down a little bit, but we haven't really seen a big increase in the pace of quarterly user quarterly ads.

Whereas <unk> is separate from purchase volume and captured in platform revenue. So.

The much better and far more like for like way to look at this is to.

Take a look at combined purchase volume and volume and when you do that what you see is that while payments revenue grew 16% year over year in Q3 paint.

Some of that softness seems to be or some of that like kind of sequential change seems to be.

<unk> perhaps.

At least that's what it was previously is that still the primary dynamic or any other nuance around consumer health, what's in the base that we should be sensitive to.

Payments on Platte.

Platform revenue combined grew 20% year over year in Q3, and Thats been a very consistent pace of growth.

Compared with what we saw in Q1, and Q2 and they will have to correct to talk about a little bit what we're seeing on the consumer yes, I mean that consistent growth.

Yeah, Let me, let me touch on that thanks for the question James.

I think the.

The other point too.

Matt mentioned I think.

Call out here is number one we're actually seeing very consistent overall transaction volumes year to date. The one thing that is a newer trend.

As it relates to broader consumer health I think despite what you hear in the in the headlines around macro risks and.

In health of consumers among our members we're seeing.

The very fast adoption of outbound instant transfers or <unk>. This is what.

Chris Britt: This mixed shift to OIT tempers our reported PV growth, but actually serves as a tailwind for our overall business. We earn a 1.75% fee on these OIT transactions, far higher than our take rate on debit purchase volume transactions. In Q3, purchase volume totaled $32.3 billion, up 15% year-over-year, and $32.9 billion, up 18% year-over-year when combined with OIT volume. This drove payments revenue growth of 16% year-over-year in Q3, and 20% when combined with OIT revenue, which is included in platform revenue, a very consistent pace of growth with the first half of the year. Third, average revenue per active member, or RPAM. Primary account relationships drive our already strong RPAM, and it continues to power higher alongside increasing levels of product attach.

And this is obviously a very mainstream consumer.

We talked about in the prepared remarks, a little bit a little bit earlier, this has grown even faster than our own internal expectations.

We're seeing spending thats remaining robust and we're not seeing signs of a pullback.

As you all know about 70% of our members' purchase volume goes to everyday essential purchases and when we look at our most tenured members the growth in their discretionary spending is actually outpacing the growth in their essential spending. So we think that that suggests a healthy consumer someone who is confident.

So as we mentioned earlier.

<unk> enables members to instantly push money to secondary accounts directly from the China.

Historically, the only way to move funds instantly was for our members to go to their secondary accounts and pull money using their <unk> cards.

The transaction is very similar to a purchase transaction and it earns us interchange.

To spend on those non essential items.

We're seeing year over year increases in categories, like restaurants, and door dash and <unk>.

The result of this is as a mix shift from payments to <unk>.

<unk> our members are.

<unk> revenue and Thats, because the volume from the historical way to make instant transfers is included in purchase volume.

Are willing to pay to order in but Theyre also going out there using lifts using ubers, we're seeing double digit growth in <unk>.

Whereas <unk> is separate from purchase volume and captured in platform revenue. So.

Places like Amazon Costco triple digit growth in newer entrants like tick tock shop.

The much better and far more like for like way to look at this is to take a look at combined purchase volume and volume and when you do that what you see is that while payments revenue grew 16% year over year in Q3 payment.

Chris Britt: In Q3, RPAM grew 6% year-over-year to 245, and we continue to see growth across every cohort, with our season cohorts now at over 350 RPAM. This growth coincides with continued growth in attach rates across our expanding product ecosystem. In Q3, 13% of our active members use six or more products on a monthly basis, up from 5% two years ago. This segment of members has an RPAM of 466, nearly double our average active member, and up 15% over the last two years. Said another way, not only is the breadth of Chime's opportunity massive, with 9.1 million actives among 200 million everyday Americans, but so is the depth. We're serving our members across multiple areas of their financial lives, and there are so many more areas left to go. Finally, we continue to make progress on transaction margin. A few highlights to call out on this front.

And at the same time, we're seeing continued increases in our members average balances which were up nearly double digits.

Year after year, so I think despite all the noise.

Our data suggests that consumers are healthy consumers are remaining employed.

Payments in.

Platform revenue combined grew 20% year over year in Q3, and Thats been a very consistent pace of growth.

And in general appear to be on pretty steady ground.

Alright, I appreciate that Chris Matt.

Compared with what we saw in Q1 and Q2, you'll have to correct to talk about a little bit what we're seeing on the consumer yes, I mean that consistent growth.

Quick question the margin improvement was really impressive and it looks like some of that is coming from improved loss rates on my pay but can you give us some updated thinking on how we should be anticipating the path to margin expansion from here.

Matt mentioned I think.

As it relates to broader consumer health I think despite what you hear in the in the headlines around macro risks and.

In health of consumers you know among our members we're seeing.

You also highlighted kind of changing and the move to chime courts that are also contributing but just.

And this is obviously a very mainstream consumer.

We're seeing spending thats remaining robust and we're not seeing signs of a pullback.

Trying to contextualize and what that means on a go forward basis.

Yeah. Thanks James.

So as I mentioned earlier I think one of the.

Chris Britt: First, as Chris mentioned, we completed our migration to Chime Core, a massive unlock for future product velocity and continued cost efficiency. We expect this final step of our migration to increase our gross margin to close to 90% in Q4. Second, MyPay loss rates fell below 120 basis points in Q3, a more than 20 basis point sequential improvement from Q2, representing continued faster-than-planned progress toward our 1% loss rate target. MyPay transaction margin is now over 45%. Moving to the rest of our P&L, we continue to drive strong operating leverage in our business. In Q3, non-GAAP OPEX grew just 7% year-over-year, down from 14% growth in H1 and the slowest rate in years, even as we continue to put substantial growth capital to work at 8x LTV to CAC.

Nearest term highlights from a margin perspective is going to be the uplift that we expect to see in our gross margin as a result of the migration of <unk> core and again more specifically there what we expect.

Our gross margin.

To spend on those non essential items.

To get to right close to 90% here in Q4 and of course that flows through to transaction margin as well.

We're seeing year over year increases in categories, like restaurants, and door dash and <unk>.

<unk> our members are.

I might pay loss rates.

Are willing to pay to order in but Theyre also going out there using lifts, they're using ubers, we're seeing double digit growth in <unk>.

We are thrilled with the progress that we're making there as we mentioned earlier the trajectory. We've been on here is certainly faster than we planned we went from.

Places like Amazon Costco triple digit growth in newer entrants like Tictoc shop.

Close to one 7% loss rate in Q1 to one 4% loss rate in Q2.

And at the same time, we're seeing continued increases in our members average balances which were up nearly double digit year.

And in Q3 that fell below one 2% loss rate so great progress.

Year after year, so I think despite all the noise.

Our data suggests that consumers are healthy consumers are remaining employed.

And we expect more progress from here, we've talked about a 1%.

Chris Britt: As a percentage of revenue, non-GAAP OPEX fell by 14 percentage points year-over-year in Q3, with continued operating leverage across every OPEX category. Along with our progress on MyPay transaction margin, this translated to a significant acceleration of our adjusted EBITDA margin growth, improving 9 percentage points year-over-year in Q3, well ahead of what we delivered in H1 2024. We expect this trend to continue in Q4, where we now expect 11 percentage points improvement to our adjusted EBITDA margin year-over-year and an incremental margin in the mid-50s, even higher than the mid-40s we guided to last quarter. More specifically on our outlook, we're pleased to raise our fourth-quarter and full-year guidance, driven by continued broad-based strength in the business. In the fourth quarter, we expect revenue between $572 and 582 million, resulting in year-over-year revenue growth between 20% and 23%.

More steady state loss rate for four for this product we are well on our way to that and expect that to hit that here.

And in general appear to be on pretty steady.

Alright, I appreciate that Chris Matt.

Quick question the margin improvement was really impressive and it looks like some of that is coming from the improved loss rates on my pay but can you give us some updated thinking on how we should be anticipating the path to margin expansion from here.

Coming few quarters.

Thank you we'll take our next question from Andrew Jeffrey with William Blair. Your line is now open.

Thank you I appreciate it great progress on my pay a couple of questions on that product as well as instant loans.

You also highlighted kind of change in <unk> and the move to China.

I guess, Matt where do you think transaction margin at 1% is in my pay.

China core et cetera, also contributing but just.

And I guess as kind of a follow up on that.

Trying to contextualize and what that means on a go forward basis.

If you get there quickly and it seems like you are on that trajectory then do you kind of say hey look.

Yeah. Thanks James.

So as I mentioned earlier I think one of the.

We're not growing this business fast enough and review sort of the underwriting criteria.

Nearest term highlights from a margin perspective is going to be the uplift that we expect to see in our gross margin as a result of the migration to <unk> core and again more specifically there, but we expect as our gross margin.

Is the dynamic in your view as you look out on the future of my pay and then I just wanted to get an update on the <unk>.

<unk>.

In the short term loan product.

Chris Britt: This exceeds our previous guidance, which forecasts 20% growth at the midpoint. We expect adjusted EBITDA between $43 and 48 million, and an adjusted EBITDA margin of 8%. This also exceeds our previous guidance of 6% margin at the midpoint. There are a few things to keep in mind about Q4. First, we expect to see steady progress on active member growth at attractive ROI, with continued positive results from our early engagement strategies. We expect to continue to see strong growth in OIT, and therefore a continued mixed shift of revenue from payments to platform in Q4. This, of course, is a positive for our financials given the higher take rates on OIT volume. As you'll recall, we are now lapping last year's launch of MyPay, which began ramping in Q3 2024.

Yes.

Two right close to 90% here in Q4 and of course that flows through to transaction margin as well.

Yes, so I'll pick up the.

This was part of that I think.

What happens when you launched your new lending product is typically youll close cohorts as you think through your underwriting <unk> tend to have higher loss rates.

I might say loss rates.

We are thrilled with the progress that we're making there as we mentioned earlier the trajectory. We've been on here is certainly faster than we planned we went from.

A couple of dynamics, you're seeing with respect to Mark. The first one is obviously as these cohorts season.

Close to one 7% loss rate in Q1 to one 4% loss rate in Q2.

And we have more loss performance data on my pay reaching a natural reduction in loss rate.

I think secondly.

And in Q3 that fell below one 2% loss rate so great progress.

As you've indicated.

Luke does put us just over a year and we continue to iterate on those underwriting models to make to make.

And we expect more progress from here, we talked about a 1%.

More steady state loss rate for four for this product we are well on our way to that and expect that to hit that year.

To make better and better loss decision. So I think those are two of the things.

That are driving.

Coming few quarters.

Improvement on the on the loss rate.

Thank you we'll take our next question from Andrew Jeffrey with William Blair. Your line is now open.

Chris Britt: We'll fully lap the launch in Q4 2025, which is what is driving some further normalization of our top-line growth rate in our Q4 guide. Finally, as part of our termination agreement with our third-party processor Galileo, we will incur a one-time expense of approximately $33 million, excluded from adjusted EBITDA. We originally expected to recognize this expense in Q1 2026, but with our Chime Core migration concluding ahead of schedule, we now expect to recognize this in Q4. We will maintain a contractual relationship with Galileo through March 2026. For the full year, we expect revenue of $2.163 to 2.173 billion and adjusted EBITDA of $113 to 118 million, above our prior guidance. We're pleased with our strong Q3 results and outlook for Q4, but we're even more optimistic about 2026 and beyond.

<unk>.

We don't.

Expecting to start to go in.

Thank you I appreciate it great progress on my pay a couple of questions on that product as well as instant loans.

Also this more broadly in a way that would actually start.

Start to compromise those gross margins I think that's fair, that's really really important point yet.

I guess, Matt where do you think transaction margin at 1% is in my pay.

In fact, we actually see opportunities to continue to expand those.

Those gross margins overtime.

And I guess as kind of a follow up on that.

Maybe I'll pass it over to Matt.

If you get there quickly and it seems like you are on that trajectory. Then do you kind of say Hey look maybe were not growing this business fast enough and review through the underwriting criteria.

With respect to the 1%.

The 1% target.

We obviously that represents continued.

And margin expansion, our transaction margin expansion on that where we are given a specific target there just yet and of course the transaction margin also.

Is the dynamic in your view as you look out on the future of my pay and then I just wanted to get an update on the on the.

Pending on.

On the short term loan products.

The usage of the product and.

Yeah.

And of course, the top line as well so we're going to continue to look to make improvements to this.

Yes, so I'll pick up the.

First part of that I think.

Randy loves loves product for us and I think the message we're trying to deliver today is that we're really pleased with the unit economic performance.

What happens when you launched new lending products is typically youll close cohorts as you think through your underwriting <unk> tend to have higher loss rates. So there's a couple of dynamics youre seeing with respect to Mark. The first one is obviously as these cohorts season.

Chris Britt: While we won't give formal guidance for 2026 until our next earnings call, we believe the strong progress we're seeing across the business is setting the stage for continued strong top-line growth, additional transaction margin expansion, and substantially slower OPEX growth, resulting in a step-up in our adjusted EBITDA margin that is above our previous expectations. Specifically, we expect our 2026 incremental adjusted EBITDA margin to be above the mid-50s we're guiding to for Q4 this year. Finally, as a reminder, our full IPO lockup ends on Friday morning, the beginning of the second full trading day following today's earnings announcement. With that, I will open it up to Q&A. Thank you. If you'd like to ask a question, press Star 1 on your keypad. To leave the queue at any time, press Star 2. Once again, that is Star and 1 to ask a question.

Expecting even.

More to come yes at $350 million run rate product and just the year, great margins and we've done this while being the lowest cost product in the market with lots of daylight.

And we have more loss performance data on <unk>, we're seeing a natural reduction in loss rates.

Calite between us and the pricing of other offerings. So really excited about this one.

I think secondly.

Okay, and then the interest and loan product short term loan product is that should we expect to hear more about that next year.

As you've indicated.

Luke.

This put us been us for just over a year and we continue to iterate on those underwriting models to make to make.

Okay.

Sure.

Yes, I think.

But in better loss decision. So I think those are two of the things.

Instead loans I think as we've indicated before.

Something we've been working on helpful.

That are driving.

12 to 18 months and it's something we've rolled out on a conservative on a conservative basis.

Improvement on the on the loss rate.

Yeah.

We don't.

Expecting to start to go in.

We've been very excited about the progress with that with that product.

Also this more broadly in a way that would actually start to compromise those gross margins I think that's a really really important point yet in.

Our highest NPS.

Product today in fact, our NPS on the loans is around 80.

Chris Britt: We'll take our first question from Ting Sing Kong from JPMorgan. Your line is now open. Thanks so much. Really nice results, guys. So happy to see it. On the member growth, I want to ask about that and what you're seeing competitively there. Any change in competitiveness? It sounds like CAC was still an improvement there, but I'm curious what you're seeing on the ground and any learnings from widening the funnel, that kind of thing. Thank you. Hey, Ting, thanks for the question. Yeah, look, we continue to see really strong momentum, and we feel good about our competitive position. As you heard in the opening statement, we are the number one destination for people that are switching their direct deposits, for people that make up to about $100,000 a year. Just in the past couple of weeks, J.D. Power reaffirmed our leadership in that area.

80% 80 points so.

In fact, we actually see opportunities for us to continue to expand those.

All members our members love it.

Those gross margins over time.

I think that that is something that we will continue to rollout and expand.

Maybe I'll pass it over to Matt.

With respect to the 1%.

The 1% target.

So that's something that we're giving.

Separate guidance on <unk>.

Yes, obviously that represents continued.

At this stage.

Thank you we'll take our next question from Adam <unk> with Evercore ISI. Please go ahead. Your line is open.

Margin expansion, our transaction margin expansion on that.

Given a specific target there just yet and of course the transaction margin also.

Thanks, Scott, Thanks, guys really nice job on the quarter here.

Pending on.

Some encouraging nuggets in the press release about enterprise showing direct deposit levels above expectations. It's obviously something that can drive a whole lot of goodness on the other side of that.

The usage of the product and.

At a corporate top line as well so we're going to continue to look to make improvements to this.

Already loved loved product for us and I think the message we're trying to deliver today is that we're really pleased with the unit economic performance and expected even.

I know, it's still early days, but can you provide some color on the Tam from the two partnerships mentioned, maybe some color on the sales pipeline and any initial revenue and profit indications of members coming in from this channel.

More to come yes, $350 million run rate product in just a year great margins and we've done this while being the lowest cost product in the market with lots of daylight.

Yes, Mark oversees the enterprise channel So Mark let me take that one.

Chris Britt: I think it's fair to say that we've broken out as a top brand in banking, and that fuels a lot of our growth in business, including our referral channel, our organic channel, which continue to power over 50% of our new active member growth. In the opening statement, we talked about 21% growth in our active members. If you look at the last 12 months, we've added 1.6 million actives, and that's an acceleration from the 1.2 million actives that we delivered in the 12 months trailing Q3 2024. Good top-of-the-funnel growth, and we're continuing to see strong conversion rates onto direct deposit right out of the gate, which, of course, is what we're always optimizing for.

Hey, Ed.

Daylight between us and the pricing of other offerings. So really excited about this one.

Adam I think as Chris indicated in the prepared remarks.

We continue to be really excited about the progress broadly within the enterprise.

Okay, and then the instant loan products short term loan product is that should we expect to hear more about that next year.

Just to just for some context, we launched the product.

Okay.

At the end of April beginning beginning of May so.

Sure.

Yes, I think.

Relatively new products I think the way this is a <unk> motion so the way we've rolled that product out.

Instead loans I think as we've indicated before.

Something we've been working on helpful.

12 to 18 months and it's something we've rolled out on a conservative on a conservative basis.

We've really started with some smaller.

Employers just to keep the adoption model and make sure that.

We've been very excited about about the progress with that with that product.

And so the go to market motion of employee engagement and all those sort of things are working really really well.

Ill highest NPS.

Product today in fact, our NTS on loans is around 80.

Thank you.

I think we've succeeded in that.

80% 80 points so.

I think what we're seeing here really is.

All members our members love it.

Chris Britt: At the same time, we're seeing positive impact from our early engagement strategy, which makes it easier for people to start using Chime even if you're not ready to direct deposit on day one. For example, things like making it easier to fund, to build your credit, and even use a version of MyPay before you start doing direct deposit. We're feeling good about the results from these initiatives. Maybe, Matt, I don't know if you want to share any color on some of those results. Yeah, I think thanks, Chris. The high level here is that the combination of these early engagement initiatives is really already having a positive impact on the business. We're seeing, among new checking account openings, a record number of people activating with us out of the gate.

Across these three employers were seeing adoption rates that exceed.

I think that is something that we will continue.

Two rollout and expand.

What we would expect on what Youre seeing other providers in the market. We think that we can pull that is because because of the competitive advantages we have here.

It's not something that we're giving.

Separate guidance on that.

At this stage.

Thank you we'll take our next question from Adam <unk> with Evercore ISI. Please go ahead. Your line is open.

We then to market with a <unk>.

So the value prop around financial wellness not just around.

Thanks, Scott, Thanks, guys really nice job on the quarter here.

DTE.

<unk> our product.

Some encouraging nuggets in the press release about enterprise selling direct deposit levels above expectations. It's obviously something that can drive a whole lot of goodness on the other side of that.

I think so.

In addition to those three partners of course, we will.

Just signed the strategic partnerships with workday and <unk>.

And we think that.

These are important partnerships as we look to access employer payroll data and this is going to be important partners for us in terms of actually accessing.

Chris Britt: We're seeing lower CAC, as Chris mentioned, down 10%, over 10% year-over-year for the third consecutive quarter. At the same time, we're monetizing at higher rates. Our recent cohorts continue to engage with us in new ways. They're attaching to more products earlier in their tenure. I think you see this in the overall growth of our RPAM. We're also seeing, specifically for those members who haven't yet engaged with us in a direct deposit capacity, that for that segment of members, their average transaction profit is up about 20% versus last year. Combined with what Chris mentioned, which is continued strong conversion to direct deposit among those people that are ready to do so right out of the gate, the result of all of this has actually been an improvement to our cohort performance.

New employer relationships. So we're excited about those two.

Yeah, Mark oversees the enterprise channel So Mark let me take that one.

Yes.

The pipeline looks good at this stage and the value prop we have.

I don't know think as Chris indicated in the prepared remarks.

We continue to be really excited about the progress broadly within the enterprise.

Just to be resonating really well with market. So I think that's what's continuing to give us.

Just to just for some context, we launched the product.

And so the channel.

At the end of April beginning beginning of May So, it's a relatively new products I think the way. We've this is a <unk> motion. So the way we rolled that product out.

We're not at the point, where we're ready to give separate guidance related to two enter plus this is DDB, we sell cycles along in particular with the bigger enterprises, who are the ones that you would likely have.

We've really started with some smaller.

The more material impact on the outcome, but we do think medium medium to long term this will be a material driver.

Employers just to keep the adoption model.

And make sure that.

And so the go to market motion and employee engagement and all those sort of things are working really really well.

Ill give you a growth for us and we expect to see that that's coming in.

Thank you.

Difficult to lower tax than we have in our consumer channel.

I think we've succeeded in that.

I think what we're seeing here really is.

Chris Britt: More specifically, our most recent quarterly cohorts are tracking to closer to a five to six-quarter transaction profit CAC payback compared to closer to seven quarters in previous cohorts. Got it. No, thanks for the complete answer. No, thank you, guys. Thank you. We'll take our next question from James Fawcett with Morgan Stanley. Please go ahead. Your line is now open. Thanks. I wanted to ask a couple of follow-up questions to that. It seems like payment volume per user is down a little bit, but we haven't really seen a big increase in the pace of quarterly ads. Some of that softness seems to be—or some of that kind of sequential change seems to be ungating perhaps. Or at least that's what it was previously. Is that still the primary dynamic, or any other nuance around consumer health within the base that we should be sensitive to?

Okay Awesome and then if I could just throw in one addendum here congrats.

Across these three employers were seeing adoption rates that exceed.

Congrats on getting time core out.

And then production ahead of schedule.

What we would expect on what Youre seeing other providers in the market. We think that the reason for that is because because of the competitive advantages we have here.

Good stuff.

Matt if you could just provide some color on where you think the margin impact will be as soon as it's been a little bit in the previous quarters as you've rolled some things over but how does it progressed through the following quarters and then really looking forward to our.

We then to market with a <unk>.

So the value prop around financial wellness not just around.

The GTE.

Future.

<unk> product.

Conversations like this where we can talk about time core and you went through a bigger or smarter because here you have their proprietary platform. So again congrats on that.

I think so.

In addition to those three partners of course, we will.

Just signed the strategic partnerships with workday and <unk>.

Yes. Thanks.

And we think that.

We're thrilled to have this enormous milestone behind us with <unk> core.

These are important partnerships as we look to access employer payroll data and this is going to be important partners for us in terms of actually accessing.

And as I mentioned earlier.

New employer relationships. So we're excited about those two.

This is really setting the stage for kind of the next.

He is really the next generation of product development for us.

The pipeline looks good at this stage and the value prop we have.

Which we're thrilled about and of course also cost efficiency on the cost efficiency side.

Just to be resonating really well with market. So I think that's what's continuing to give us.

While we expect now.

Chris Britt: Yeah, let me touch on that. Thanks for the question, James. I think the other point to call out here is, first, number one, we're actually seeing very consistent overall transaction volumes year-to-date. The one thing that is a newer trend is the very fast adoption of outbound instant transfers for OIT. This is what we talked about in the prepared remarks a little bit earlier. This has grown even faster than our own internal expectations. As we mentioned earlier, OIT enables members to instantly push money to secondary accounts directly from the Chime app. Historically, the only way to move funds instantly was for our members to go to their secondary accounts and pull money using their Chime cards. That's a transaction that's very similar to a purchase transaction, and it earns us interchange. The result of this is a mix shift from payments to platform revenue.

Sure.

So the channel.

The uplift to our gross profit margin.

We're not at the point, where we're ready to give separate guidance related to two enterprise. This is <unk>, we sell cycles along in particular with the bigger enterprises, who are the ones that you'd like to have.

Close to 90% now starting in Q4 as a result of migrate into China, CT and lower in our transaction processing cost, which is a key part of our cost of revenue why don't I pass it to Chris to talk a little bit more about.

No material impact on the outcome, but we do think medium medium to long term this will be a material driver.

<unk> Ah marks for us on a new product development side as well.

Thanks, Yes.

I really believe that chime core when you look.

Ill give you a growth for us and we expect to see that that's coming in.

When we look back a few years down the line here Youre going to look at <unk> core is being.

Difficult to lower tax than we have in our consumer channel.

Okay Awesome and then if I could just throw in one addendum here congrats.

Key element of what has set us apart from a lot of the traditional incumbents as well as some of the other fintech.

Congrats on getting time core out.

And then production ahead of schedule, but that's really good stuff.

<unk>.

Having full control over our tech stack is something that's really differentiated and allows us to launch exciting new products. The first of which is this chime card product, which we've rolled out to new members and are now in the process of rolling out across our existing member base and the potential impact of that over the course of this year.

If you could just provide some color on where you think the margin impact will be I assume that it's been a little bit in the previous quarters as you've rolled some things over but how does it progressed through the following quarters and then really looking forward to.

Future.

Conversations like this where we can talk about time core and you went through a bigger or smarter because here you have the proprietary platform. So again congrats on that thanks.

Chris Britt: That's because the volume from the historical way to make instant transfers is included in purchase volume, whereas OIT is separate from purchase volume and captured in platform revenue. The much better and far more like-for-like way to look at this is to take a look at combined purchase volume and OIT volume. When you do that, what you see is that while payments revenue grew 16% year-over-year in Q3, payments and OIT platform revenue combined grew 20% year-over-year in Q3. That's been a very consistent pace of growth compared to what we saw in Q1 and Q2. Maybe I'll pass it to Chris to talk about a little bit what we're seeing on the consumer. Yeah, I mean, that consistent growth that Matt mentioned, I think.

<unk> and going into 'twenty six we think is.

Is really exciting when you think about the opportunity to move more of our spend from debit onto this secured credit product that not only helps people build their credit but also it gives them great reward. So we really believe that <unk> is going to unlock.

Yes. Thanks.

We're thrilled to have this enormous milestone behind us with <unk> core.

And as I mentioned earlier.

Even more rapid.

Launch of new products and services and things like even more premium membership tiers. So that we are.

This is really setting the stage for kind of the next.

Providing even more value to consumers that can give us more of their paycheck and give us more of their spend we're going to reward them with that with the new premium tier we were going to launch joint accounts custodial accounts investment services. These are all things that can be enabled from this.

He is really the next generation of product development for us, which we're thrilled about and of course also cost efficiency on the cost efficiency side.

While we expect now is for.

An uplift to our gross profit margin.

Core platform that we now own and so we think the future is bright on the product side as a result of this.

Close to 90% now starting in Q4 as a result of migrate into China, CT and lower in our transaction processing costs, which is a key part of our cost of revenue why don't I pass it to Chris to talk a little bit more about what <unk> core our marks for us on a new product development side as well.

Chris Britt: As it relates to broader consumer health, I think despite what you hear in the headlines around macro risk and the health of consumers, among our members, we're seeing—this is obviously a very mainstream consumer—we're seeing spending that's remaining robust, and we're not seeing signs of a pullback. As you all know, about 70% of our members' purchase volume goes to everyday essential purchases. When we look at our most tenured members, the growth in their discretionary spending is actually outpacing the growth in their essential spending. We think that suggests a healthy consumer, someone who's confident to spend on those non-essential items. We're seeing year-over-year increases in categories like restaurants, DoorDash, and Uber Eats. Our members are willing to pay to order in, but they're also going out. They're using Lyfts, they're using Ubers. We're seeing double-digit growth in.

This investment we've made.

Thank you we'll take our next question from Timothy Chiodo with UBS. Your line is now open.

Great. Thank you for taking the question. This is actually a little bit related there to Adam's question and the way around.

Thanks, Yes.

I really believe that China core when you look.

When we look back a few years down the line here Youre going to look at <unk> as being a key element of what has set us apart from a lot of the traditional incumbents as well as some of the other fintech. It's.

Once we get to the chime card. So the secured credit card offering you mentioned the higher interchange you mentioned.

Allowing to your members to improve their credit score and Theres. Some stats on the website around that's pretty impressive. So it seems like a great win win products for both the members and four chime.

Having full control over our tech stack is something that's really differentiated and allows us to launch exciting new products. The first of which is this chime card product, which we rolled out to new members and are now in the process of rolling out across our existing member base and the potential impact of that over the course of.

As we've talked about in the past Theres always this concept of the graduation, so someone comes on the credit builder great customer.

Improve their credit score and now Theyre scores higher and they might want to move on to a traditional credit card offering.

This year and going into 'twenty six we think is.

And.

I'm not asking you to pre announce future products, but to the extent you could just talk about maybe chime core can enable a traditional credit card or other concerns or.

Is really exciting when you think about the opportunity to move more of our spend from debit onto the secured credit product that not only helps people build their credit but also it gives them great reward. So we really believe that <unk> is going to unlock.

Chris Britt: Places like Amazon, Costco, triple-digit growth in newer entrants like TikTok Shop. At the same time, we're seeing continued increases in our members' average balances, which are up nearly double-digit year after year. I think despite all the noise, our data suggests that consumers are healthy, consumers are remaining employed, and, in general, appear to be on pretty steady ground. Great. Appreciate that, Chris and Matt. Just a quick question. The margin improvement was really impressive. It looks like some of that is coming from the improved loss rates on MyPay. Can you give us some updated thinking on how we should be anticipating the path of margin expansion from here? You also highlighted kind of change in the move to Chime Core, etc., also contributing. I'm trying to contextualize on what that means on a go-forward basis. Yeah, thanks, James.

Reasons, why you would or would not want to offer a traditional credit card to the members.

Even more rapid.

Yes sure.

Launch of new products and services and things like even more premium membership tiers. So that we are.

And be able to fill it up.

As Chris indicated all first party really is getting.

Many of our members as we can't answer the China cord, because we see that as a significant opportunity.

<unk>.

Having said that.

We know today that there is significant demand amongst our member base or a multinational clinical it one that offers high levels of.

Investment services. These are all things that can be enabled from this.

Our platform that we now own and so we think the future is bright on the product side as a result of.

Our liquidity and rewards.

This investment we've made.

Number one number two.

We believe that with.

Thank you we'll take our next question from Timothy <unk>.

The superior transaction data, we have on our members, where we see all the inflows in all the outflows.

Joe with UBS. Your line is now open.

We get we got a really unique underwriting.

Great. Thank you for taking the question. This is actually a little bit related there to Adam's question in a way around.

Opportunity and a lot of unique underwriting data and.

First we get to the chime card. So the secured credit card offering you mentioned the higher interchange you mentioned.

And because we sit at the top.

Just using direct deposit into our comps we also talked to the repayments that we think these two factors that should give us a significant advantage to also have a really compelling.

Chris Britt: As I mentioned earlier, I think one of the nearest-term highlights from a margin perspective is going to be the uplift that we expect to see in our gross margin as a result of the migration to Chime Core. Again, more specifically there, what we expect is our gross margin to get to right close to 90% here in Q4. Of course, that flows through to transaction margin as well. On MyPay loss rates, we are thrilled with the progress that we're making there. As we mentioned earlier, the trajectory we've been on here is certainly faster than we planned. We went from close to 1.7% loss rate in Q1 to 1.4% loss rate in Q2. In Q3, that fell below 1.2% loss rate. Great progress, and we expect more progress from here. We talked about a 1% more steady-state loss rate for.

Allowing to your members to improve their credit score and Theres. Some stats on the website around that's pretty impressive. So it seems like a great win win products for both members and four time.

Credit card members. So this is something that I think.

John will do.

As we've talked about in the past there is always this concept of the graduation, so someone comes on the credit builder great customer improve.

Overtime.

But it is not something that we should be indexing on is a material contributor to 2026.

Improve their credit score and now Theyre scores higher and they might want to move on to a traditional credit card offering.

I would also say that.

As we've indicated in the past, we intend to stay a payments business. So.

And.

As we do this we will do this in an asset light way.

Not asking you to pre announce future products, but to the extent you can just talk about maybe chime core can enable a traditional credit card or other concerns or <unk>.

In a way that doesn't.

It doesn't take a lot of.

On the balance sheet.

Excellent. Thank you very clear.

Maybe I'll just one last point on that is you talked about gratulation risks one of the.

Reasons, why you would or would not want to offer a traditional credit card to their members.

We wanted to highlight is that when you look at.

Yes sure Tim.

Timna I'll pick that one up.

Our newest active member cohorts, we're actually seeing the fastest growth among consumers in the 75 to 100 K, earning segment. So we think that the product today continues to get better and better especially for those that.

As Chris indicated all first party really is getting at.

Many of our members as we can't answer the China cord, because we see that as a significant opportunity.

<unk>.

Having said that.

Chris Britt: This product. We're well on our way to that and expect to hit that here in the coming few quarters. Thank you. We'll take our next question from Andrew Jeffrey with William Blair. Your line is now open. Thank you. Appreciate it. Great progress on MyPay. A couple of questions on that product as well as instant loans. I guess, Matt, where do you think transaction margin at 1% is in MyPay? I guess as kind of a follow-up on that, if you get there quickly and it seems like you're on that trajectory, then do you kind of say, hey, look, maybe we're not growing this business fast enough, and review sort of the underwriting criteria? What is the dynamic in your view as you look out on the future of MyPay? I just wanted to get an update on the short-term loan product. Yeah, sure.

We know today.

Have more transaction activity and more deposit activity. They can do with us. So we'll keep pushing on that and think about.

Significant demand amongst our member base or.

The more traditional clinical it one that offers high levels of.

Future more longer term products like Mark just highlighted.

Our liquidity and rewards.

Excellent. Thank you.

And number one number two we believe that with the superior transaction data we have on our members where we see all the inflows in all the outflows.

Thank you we'll take our next question from will Nance. Please go ahead with Goldman Sachs. Please go ahead. Your line is open.

Hey, guys. Thank you for taking the question I also wanted to ask on the time card product rollout I was wondering if you could talk a little bit about too.

We get we got a really unique underwriting.

Opportunity and a lot of unique underwriting data.

And because we sit at the top.

Two things you mentioned that you mentioned some of the early progress in rolling that out I'm wondering if you could speak to just expectations for attach rates on new cohorts and just the prioritization of chime hard for new customers.

Receiving direct deposit into our comps we also talked with the repayments that we think these two factors that should give us a significant advantage to also have a really compelling.

Credit card members. So this is something that I think.

Is it at.

I understand that you're you're expecting that attach rate to be relatively high on new cohorts that this is sort of the primary experience that you want to put in front of customers. I was just wondering if you could confirm that.

We will do.

Overtime.

But it is not something that we should be indexing on is a material contributor to 2026.

Chris Britt: I'll pick up the first part of that. I think what happens when you launch a new lending product is typically your first cohorts, as you're going through your underwriting criteria, tend to have higher loss rates. There are a couple of dynamics we're seeing with respect to MyPay. The first one is, obviously, as these cohorts season, and we have more loss performance data on MyPay, we're seeing a natural reduction in loss rates. I think, secondly, as you've indicated, this product's been out for just over a year, and we continue to iterate on those underwriting models to make better and better loss decisions. I think those are two of the things that are driving improvement on the loss rates. I think we're not expecting to start to go and offer this more broadly in a way that would actually start to compromise those gross margins.

I would also say that.

Talk about weather attach rates are there and then you mentioned 175 basis points on the card for interchange was very helpful. I'm. Just wondering if you could share just a ballpark estimate of where you think the rewards cost could shake out for the direct deposit customers.

As we've indicated in the past, we intend to stay a payments business. So.

As we do this we will do this on an asset light way.

In a way that doesn't.

It doesn't create a lot of.

Over here on the balance sheet.

Excellent. Thank you very clear.

Just clarify the reward is going to be booked as part of transaction margin.

Maybe I'll just one last point on that is you talked about gratulation risks.

Or would that be like a sales and marketing line. Thank you.

The point that we wanted to highlight is that when you look at.

Thanks, Bill I'll start.

Yes, we started by rolling this out just to new members and we're really encouraged for the folks that select the chime card the new chime card, we're seeing 80% of their purchase volume within the Chinese ecosystem coming off as credit spend so that's obviously.

More transaction activity and more deposit activity. They can do with us So we'll keep pushing on that and think about.

Really exciting development for us and we have.

Rewards and more premium versions of the actual physical card as well that I think are a pretty compelling as well. It's still very early days in terms of rolling this out across our existing member base, but that's something that we're pushing hard.

Future more longer term products like Mark just highlighted.

Excellent. Thank you.

Thank you and we'll take our next question from will Nance. Please go ahead with Goldman Sachs. Please go ahead. Your line is open.

Chris Britt: I think that's a really important point here. In fact, we actually see opportunity for us to continue to expand those gross margins over time. Maybe I'll pass it over to Matt just with respect to that 1% target. Yeah, obviously, that represents continued margin expansion, transaction margin expansion on MyPay. We aren't giving a specific target there just yet. Of course, transaction margin also is dependent on the usage of the product and, of course, the top line as well. We're going to continue to look to make improvements to this really already loved product for us. I think the message we're trying to deliver today is that we're really pleased with the unit economic performance and expect even more to come. Yeah, it's a $350 million run-rate product in just a year, great margins.

Right now I don't know how much more detail you im sure in terms of expectations as.

Hey, guys. Thank you for taking the question I also wanted to ask on the time card product rollout I was wondering if you could talk a little bit about two two things you mentioned that you mentioned some of the early progress in rolling that out I'm wondering if you could speak to just expectations for attach rates on new cohorts.

As it relates to your second question around.

And rewards expense.

The awards actually Contra revenue.

So the 175 interchange rate that we were referencing earlier, it's actually already net of our rewards expense, that's the sort of all intake.

And just the prioritization of chime hard for new customers.

Oh, that's awesome, that's great. Okay, and then I guess I have a follow up really appreciate the disclosures around or.

Is it it's our understanding that you're you're expecting that attach rate to be relatively high on new cohorts that this is sort of the primary experience that you wanted to put in front of customers. I was just wondering if you could confirm that.

I'm just wondering if you could talk a little bit around I guess attach on adoption rate I guess it seems like we should be thinking about this.

Mix shift dynamic continuing in thinking about the payment volume per active inclusive of this number. So just wondering is that are you seeing that substitution effect level out somewhere.

Secondly, the what was previously Paul is now fully migrated over to push.

Chris Britt: We've done this while being the lowest-cost product in the market, with lots of daylight between us and the pricing of other offerings. Really excited about this one. Okay. The instant loan product, short-term loan product, should we expect to hear more about that next year? Yes. I think instant loans, as we've indicated before, is something we've been working on here for 12 to 18 months, and it's something we've rolled out on a conservative basis. We've been very excited about the progress with that product. It's actually our highest NPS product today. In fact, our NPS on instant loans is around 80%, 80 points. Our members love it. I think that is something that we will continue to roll out and expand. It's not something that we're giving separate guidance on yet at this stage. Thank you.

Or would you expect that to be something that grows.

Pretty fast and faster than kind of sequential changes in payment volume for the next couple of quarters.

Or would that be like a sales and marketing line. Thank you.

Thanks, Phil I'll start.

Yeah. The short story here is we do expect us to grow faster.

For the next few quarters said another way, we do expect that sort of mix shift from payments to platform to continue.

This isn't a product that's okay.

Used by the majority of our of our customers at all.

Credit spend so thats obviously.

Really exciting development for us and we have.

In any way, but it is.

It is by a smaller set of our members.

And of course, it has grown fast and so when you take a look at the impact on overall purchase volume rates. We felt it was very important too.

Clarify this.

Seeing that some of our newer cohorts are adopting this at higher rates than.

Right now if you want to.

How much more detail you im sure in terms of expectations as well as.

And our existing members and so as that continues.

It relates to your second question around.

Rewards expense.

That's why we expect this mix shift again to continue here for the next few quarters.

The awards actually Contra revenue.

So the 175 interchange rate that we were referencing earlier, it's actually already net of our rewards expects that that's the sort of all intake.

Got it that's super helpful. I appreciate you guys lagging that and thanks for taking the questions.

Thank you we'll take our next question from Darrin Peller with Wolfe Research. Please go ahead. Your line is open.

Chris Britt: We'll take our next question from Adam Freish with Evercore ISI. Please go ahead. Your line is open. Thanks, guys. Really nice job on the quarter here. Some encouraging nuggets in the press release about enterprise showing direct deposit levels above expectations. It's obviously something that can drive a whole lot of goodness on the other side of that. I know it's still early days, but can you provide some color from the two partnerships mentioned, maybe some color on the sales pipeline, and any initial revenue and profit indications of members coming in from this channel? Thanks. Yeah, Mark oversees the enterprise channel. Mark, why don't you take that one? Thanks, Chris. Hey, Adam. Adam, I think, as Chris indicated in the prepared remarks, we continue to be really excited about the progress broadly within enterprise.

Oh, that's awesome, that's great. Okay, and then I guess as a follow up really appreciate the disclosures around or.

Alright, Thanks, guys nice job on the quarter when I think about as a follow up to attach rates and thinking about RPM for a moment I mean now that you're like you said I mean youre anniversarying the rollout of the initial rollout of <unk> just help us understand how to think about growth in our Pam going forward in Europe from your perspective, both from a financial modeling perspective would be helpful. But also.

I'm just wondering if you could talk a little bit around I guess attach on adoption rate I guess it sounds like we should be thinking about this.

Mix shift dynamic continuing in thinking about the payment volume proactive inclusive of this number. So I'm. Just wondering is that are you seeing that substitution effect level out to where.

So.

Really thinking about it from a perspective of the different products that can help drive it.

Actively the what was previously Paul is now fully migrated over to push.

And those that you are most excited about going forward in the next year or so.

Or would you expect that to be something that grows.

Okay.

Yes, maybe I'll touch very briefly on sort of a near term trajectory in our Pam and then I'll hand, it over to Chris to talk about.

Pretty fast and faster than kind of sequential changes in payment volume for the next couple of quarters.

Yeah. The short story here is we do expect this to grow faster.

Some of the opportunities to continue to grow our Pam overtime.

For the next few quarters said another way, we do expect a sort of a mix shift from payments chief platform to continue.

So the first thing I'd say is.

Chris Britt: Just for some context, we launched the product at the end of April, beginning of May. It's a relatively new product. I think the way we've—this is a B2B motion. The way we've rolled that product out is we've really started with some smaller employers just to prove the adoption model and make sure that the go-to-market motion, employee engagement, and all those sort of things are working really, really well. I think we've succeeded in that. I think what we're seeing here really is, across these three employers, we're seeing adoption rates that exceed what we would expect and what you're seeing other providers in the market have. We think that the reason for that is because of the competitive advantages we have here. We've entered the market with a broader value prop around financial wellness and not just around a certain VTE.

As we mentioned we are lapping the initial rollout of our.

This isn't a product that's.

Really blockbuster product Mitek this quarter.

Used by the majority of our of our customers at all.

You should think about.

In any way, but it is.

Q3 is sort of a partial lapping.

It is by a smaller set of our members.

Again rolling out <unk> in Q3 of last year, whereas Q4 is.

And of course, it has grown fast and so when you take a look at the impact on overall purchase volume rates. We felt it was very important too.

When we fully lap the launch and as a result of that you should expect RPM growth.

Clarify this.

Are seeing that some of our newer cohorts are adopting this at higher rates than.

Just to moderate a bit in Q4 relative to Q3, I would say, though overall at the cohort level, we continue to see very strong RPM growth.

And our existing members and so as that continues.

That's why we expect this mix shift to continue here for the next few quarters.

Our members are continuing to attach to more products over time that coincides with continued growth in our Pam <unk>.

Got it that's super helpful. I appreciate you guys lagging that and thanks for taking the questions.

<unk> cohorts across every cohort with our most tenured cohorts now.

Thank you we'll take our next question from Darrin Peller with Wolfe Research. Please go ahead. Your line is open.

At over $350, let me pass across to talk about some of the other product opportunities. We're excited about yes.

Chris Britt: EWA product. I think in addition to those three partners, of course, we've just signed the strategic partnerships with Workday and UKG. We think that these are important partnerships as we look to access employer and payroll data. These are going to be important partners for us in terms of actually accessing new employer relationships. We're excited about those too. The pipeline looks good at this stage, and the value prop we have appears to be resonating really well with the market. I think that's what's continuing to give us excitement for the channel. We're not at the point here where we're ready to give separate guidance related to enterprise. This is B2B. These sales cycles are long, in particular with the bigger enterprises who are the ones that would likely have the more material impact on our outcome.

I think naturally as we show in our supplemental.

Pack you can see consistently that as.

As our cohorts age the RPM increases.

And one of the things that we love about how that RPM increases is that it increases as a result of just more engagement more spend capturing more deposits over time, capturing more spend over time and now with higher monetizing car transactions. We think there is an opportunity for that to continue to go.

So really thinking about it from a perspective of the different products that can help drive it.

And those that you are most excited about going forward in the next year or so.

Okay.

Yes, maybe I'll touch very briefly on sort of a near term trajectory in our Pam and then I'll hand, it over to Chris to talk about.

Even even higher.

Look across the board.

One of the things we talked about on the Roadshow is not only do we have the best suite of products, we believe for the mainstream everyday consumer.

Some of the opportunities to continue to grow RPM over time.

So the first thing I'd say is.

As we mentioned we are lapping the initial rollout of our.

But we also have the lowest cost product. So there is lots of opportunity for us on on that side as well because we think that there is there's still quite a bit of room between the way many competitors price their products and are so we're.

Really blockbuster product.

Quarter.

You should think about.

Q3 is sort of a partial lapping.

Dan Rolling out <unk> in Q3 of last year, whereas Q4 is.

We're going to continue to add new products to drive more attach and we think that's going to drive more engagement and.

Chris Britt: We do think medium to long term, this would be a material driver of TDO growth for us. We expect to see that coming in at significantly lower CACs than we have in our consumer channel. Okay. Awesome. If I could just throw in one addendum here. Congrats on getting Chime Core out and in production ahead of schedule. That's really good stuff. Matt, if you could just provide some color on where you think the margin impact will be. I assume it's been a little bit in the previous quarters as you've rolled some things over, but how does it progress through the following quarters? Really looking forward to future conversations like this where we can talk about Chime Core and you went faster, or bigger, or smarter because you have that proprietary platform. So again, congrats on that. Thanks. Yeah, thanks.

As when we fully lap the launch and as a result of that you should expect RPM growth.

We will launch new products.

With prices that will continue to be market, leading and.

To moderate a bit in Q4 relative to Q3, I would say, though overall at the cohort level, we continue to see very strong RPM growth.

Really excited about the opportunity to drive more engagement and revenue overtime.

What's the latest on my pay day, one just a quick update if you don't mind and then we'll turn it back to the queue.

Our members.

Members are continuing to attached to more products over time that coincides with continued growth in our Pam <unk>.

Sure.

My pay day one is.

<unk> cohorts across every cohort with our most tenured cohorts now.

Is really one piece of this early engagement strategy that.

At over $350, let me pass across to talk about some of the other product opportunities. We're excited about yes.

We've highlighted around making it easier to use us right out of the gate.

I I wouldn't sort of over rotate on on that opportunity, but early results are promising, albeit on a fairly small scale at this point in time, we really think that there is.

I think naturally as we show in our supplemental.

Pack you can see consistently that as.

As our cohorts age the RPM increases.

This combination of being able to fund your account easily being able to and have multiple ways to fund your account to move money out of the account with <unk>.

And one of the things that we love about how that RPM increases is that it increases as a result of just more engagement more spend capturing more deposits over time.

Chris Britt: We're thrilled to have this enormous milestone behind us with Chime Core. As I mentioned earlier, this is really setting the stage for kind of the next generation of product development for us, which we're thrilled about, and of course, also cost efficiency. On the cost efficiency side, what we expect now is for an uplift to our gross profit margin to close to 90%, now starting in Q4 as a result of migrating to Chime Core and lowering our transaction processing costs, which is a key part of our cost of revenue. Why don't I pass it to Chris to talk a little bit more about what Chime Core unlocks for us on the new product development side as well? Thanks. Yeah. I really believe that Chime Core, when you look.

To use our PDP service to get.

Bring more spend over time and now with higher monetizing car transactions, we think theres an opportunity for that to continue to go.

The more we can give people access to trial of our product we think the better chance, we have overtime that convert them to long lasting primary accounts. So we're going to continue to.

Even even higher.

Look across the board.

One of the things we talked about on the Roadshow is not only do we have the best suite of products, we believe for the mainstream everyday consumer.

Trial that experience of my pay day, one for people, who don't yet have a direct deposit relationship.

But we also the lowest cost product. So there is lots of opportunity for us on on that side as well because we think that there's there's still quite a bit of room between.

And we'll also be adding other trial experiences as well but.

No major update to provide on that it's still new.

Small scale.

The way many competitors price their products and are so we're going to continue to add new products to drive more attach and we think thats going to drive more engagement and.

Okay. Okay. Thanks, guys.

Thank you we'll take our next question from Sanjay <unk> with <unk>. Your line is now open.

We will launch new products.

With prices that will continue to be market, leading and.

Chris Britt: When we look back a few years down the line here, you're going to look at Chime Core as being a key element of what has set us apart from a lot of the traditional incumbents, as well as some of the other fintechs. Having full control over our tech stack is something that's really differentiated and allows us to launch exciting new products. The first of which is this Chime Card product, which we've rolled out to new members and are now in the process of rolling out across our existing member base. The potential impact of that over the course of this year and going into 2026, we think, is really exciting when you think about the opportunity to move more of our spend from debit onto this secured credit product that not only helps people build their credit, but also gives them great rewards.

Hi, This is <unk> first Andreas thanks for taking our question.

Really excited about the opportunity to drive more engagement and revenue over time.

Maybe could you just comment on the competitive environment, a little bit I know there are number of different providers that are sort of trying to target the paycheck to paycheck consumer with short durations for customer acquisition can you <unk>. Your customers are engaging with any of these third party platforms and anything you sense in terms of change in competitive intensity in the market. Thank you.

What's the latest on my pay day, one just a quick update if you don't mind and then we'll turn it back to the queue.

Sure.

My pay day one is.

Is really one piece of this early engagement strategy that we'd.

We've highlighted around making it easier to use us.

Yeah sure happy to pick that one up I think.

Right out of the gate.

Maybe the first thing we should do to level set here.

I I wouldn't sort of over rotate on on that opportunity, but early results are promising, albeit on a fairly small scale at this point in time, we really think that there is.

Although competition no big bets.

Number one.

The vast majority of probably can't relationships and that is all part of it.

But for our part of the competition.

This combination of being able to fund your account easily being able to and have multiple ways to fund your account to move money out of the account with <unk>.

If you took all the rest of the center.

Chris Britt: We really believe that Chime Core is going to unlock an even more rapid launch of new products and services, and things like even more premium membership tiers, so that we're providing even more value to consumers that can give us more of their paycheck and give us more of their spend. We're going to reward them with that with a new premium tier. We're going to launch joint accounts, custodial accounts, investment services. These are all things that can be enabled from this core platform that we now own. We think the future is bright on the product side as a result of this investment we've made. Thank you. We'll take our next question from Timothy Teodo with UBS. Your line is now open. Great. Thank you for taking the question. This is actually a little bit related there to Adam's question in a way around.

We are much larger than all the rest in subjects combined in terms of primary account relationships today, and so I think.

To use our PDP service to get.

Number one we should you should index on the large banks.

The more we can give people access to trial of our product we think the better chance we have over time that convert them to long lasting primary accounts. So we're going to continue to.

Secondly, with 3% penetrated today.

So there's a lot of opportunities ahead of us.

We continue to obviously watch some of the some of those smaller fintech.

Trial that.

Approaching our members.

<unk> of my pay day, one for people, who don't yet have a direct deposit relationship.

There's very few if any of them that are really making much progress on the <unk> side I think to your point.

And we'll also be adding other trial experiences as well but.

Some of them are competing and offering liquidity services.

No major update.

To provide on that it's still new.

Relatively small scale.

Compete along with me or my pay.

Okay. Okay. Thanks, guys.

I think our perspective on that is.

Thank you we'll take our next question from Sanjay Zucker Hari.

If you look at the price points for these members.

<unk> Your line is now open.

Competitors are offering.

Chris Britt: As we get to the Chime Card, the secured credit card offering, you mentioned the higher interchange. You mentioned allowing your members to improve their credit score, and there's some stats on the website around that. It's pretty impressive. It seems like a great win-win product for both the members and for Chime. As we've talked about in the past, there's always this concept of the graduation. Someone comes on a Credit Builder, they're a great customer, they improve their credit score, and now their score's higher, and they might want to move on to a traditional credit card offering. Not asking you to pre-announce future products, but to the extent you could just talk about maybe Chime Core can enable a traditional credit card or other concerns or reasons why you would or would not want to offer a traditional credit card to the members.

Hi, This is Matthew global first Andreas Thanks for taking our question maybe could you just comment on that.

Foreign excess of the rates, we have for my pay until interest botany.

<unk> environment, a little bit I know there are number of different providers that are sort of trying to target the paycheck to paycheck consumer with short duration.

Having said that we do see some of our members who may be doubling up.

Using these additional services in addition to what they get from John to access higher levels of liquidity.

Customer acquisition can you tell when your customers are engaging with any of these third party platforms and anything you sense in terms of change in competitive intensity in the market. Thank you.

We like our position there because we talked to the repayments that can we get paid we can pay trust.

And we're going to continue to do very very competitive right. So.

Yes, sure happy to pick that one up I think.

Not saying.

No.

Maybe the first thing we should do to level set here.

As Chris indicated early on.

Even J D powers just confirm that.

Although competition of big bets.

More and more members of switching to time than anywhere else and that trend continues. So we don't see we don't see these these offerings impacting our acquisition department account relationships.

They have the vast majority of probably top relationships and that is all part of that.

That is part of the competition.

If you took all the rest of the center.

We are much larger than all the rest we can fix combined in terms of the primary account relationships.

Thank you for the color and then just for my follow up if I could ask on the model for <unk>, we're thinking about new account adds purchase volume going sort of anything can be mindful of from a seasonal perspective that you would like.

Chris Britt: Yeah, sure. Timothy, I'll pick that one up. As Chris indicated, our first party really is getting as many of our members as we can onto the Chime Card because we see that as a significant opportunity. Having said that, we know today that there is significant demand amongst our member base for a more traditional credit card, one that offers higher levels of liquidity and rewards. Number one. Number two, we believe that with the superior transaction data we have on our members, where we see all the inflows and all the outflows, we get a really unique underwriting opportunity and a lot of unique underwriting data. Because we sit at the top receiving direct deposit into our accounts, we also sit top of the repayment stack. We think these two factors actually give us a significant advantage to offer a really compelling.

I think number one we should you should index.

Sure.

Thanks.

Secondly, with 3% penetrated today.

So there's a lot of opportunities ahead of us.

Thank you.

We continue to obviously watch some of the some of those smaller fintech.

Q4.

When we see seasonality in our business that sort of primary quarter to.

Approaching our members.

Callout is key.

There's very few if any of them that are really making much progress on the primary side I think to your point.

Q1, and therefore Q2 right. After just from a tax refund perspective, that's really when we see the most seasonality across our metrics, including.

Some of them are all competing in offering liquidity services.

Purchase volume per active.

<unk> competes along with spot.

Me or Mark Kaye.

And clarity, including our Pam alright, including new account ads et cetera.

I think our perspective on that is.

If you look at the price points. These members this competitor's offering.

Q4, I think seasonally tends to be a little bit higher higher spend on our proactive member basis, just around the holidays, but not nearly as much as sort of a seasonally higher spend Q1.

Foreign access.

All the rates, we have for my pay antral entrance botany.

Beyond that I think Q4 is.

Having said that we do see some of our members who may be doubling up and using these additional services. In addition to what they get some time to access higher levels of liquidity.

Okay.

Had a better quarter for us so we're excited to continue to grow.

Chris Britt: Credit card to our members. This is something that I think Chime will do over time, but it is not something that we should be indexing on as a material contributor to 2026. I will also say that, as we've indicated in the past, we intend to stay a payments business. As we do this, we will do this in an asset-light way, in a way that does not create a lot of overhead on the balance sheet. Excellent, thank you. Very clear. Maybe just one last point on that is you talked about graduation risk. One of the points that we wanted to highlight is that when you look at our newest active member cohorts, we are actually seeing the fastest growth among consumers in the $75,000 to 100,000 earning segment. We think that the product today continues to get better and better, especially for those that.

Across both those metrics actives.

Hello.

We like our position there because we talked with the repayments that can we get paid we can take first.

Thank you referenced our allotted time for questions I will now turn the call back to Chris for additional or closing remarks.

And we're going to continue to do this very very competitive right. So.

We're not seeing.

Thanks, so much I really appreciate everyone.

Chris indicated early on.

Even J D powers just confirm that.

Thank you all for joining us today.

Look forward to seeing you all out on the road hopefully sometime soon.

More and more members of switching to time than anywhere else and that trend continues so we don't see.

Thank you. This does conclude today's meeting. Thank you for your time and participation you may disconnect at any time and have a wonderful day.

Don't see these these offerings impacting all acquisition department account relationships.

Yeah.

Thank you for the color and then just.

For my follow up if I could ask on the model for <unk>, we're thinking about new account purchase volume going sort of anything can be mindful of from a seasonal perspective that you would add color. Thank you.

Q4.

Chris Britt: Have more transaction activity and more deposit activity that they can do with us. We'll keep pushing on that and think about future, more longer-term products like Mark just highlighted. Excellent. Thank you. Thank you. We'll take our next question from Will Nance. Please go ahead with Goldman Sachs. Please go ahead. Your line is open. Hey, guys. Thank you for taking the question. I also wanted to ask on the Chime Card product rollout. I was wondering if you could talk a little bit about two things. You mentioned that. You mentioned some of the early progress in rolling that out. I'm wondering if you could speak to just expectations for attach rates on new cohorts and just the prioritization of Chime Card for new customers. Is it.

When we see seasonality in our business, that's sort of primary quarter to call out is key.

Q1, and therefore Q2 right. After just from a tax refund perspective, that's really when we see the most seasonality across our metrics, including.

Purchase volume per active.

And clarity, including RPM, alright, including new account ads et cetera.

Q4, I think seasonally tends to see a little bit higher higher spend on our proactive member basis, just around the holidays, but not nearly as much as sort of a seasonally higher spend in Q1.

Beyond that I think Q4 is.

Okay.

Had a better quarter for us so we're excited to continue to grow.

Across both those metrics active purchase loan.

Chris Britt: It's our understanding that you're expecting that attach rate to be relatively high on new cohorts, that this is sort of the primary experience that you want to put in front of customers. I was just wondering if you could confirm that and talk about whether attach rates are there. You mentioned the 175 basis points on the card for interchange was very helpful. I'm just wondering if you could share just a ballpark estimate of where you think the rewards cost could shake out for the direct deposit customers and just clarify the rewards going to be booked as part of transaction margin or would that be like a sales and marketing line. Thank you. Thanks, Will. I'll start. Yeah, we started by rolling this out just to new members. We're really encouraged for the folks that select the new Chime Card.

Thank you referenced our allotted time for questions I will now turn the call back to Chris for additional or closing remarks.

Thanks, so much I really appreciate everyone.

Thank you all for joining us today.

Look forward to seeing you all out on the road hopefully sometime soon.

Thank you. This does conclude today's meeting. Thank you for your time and participation you may disconnect at any time and have a wonderful day.

Goodbye.

Hum.

Chris Britt: We're seeing 80% of their purchase volume within the Chime ecosystem coming off as credit spends. That's obviously a really exciting development for us. We have rewards and more premium versions of the actual physical card as well that I think are pretty compelling as well. It's still very early days in terms of rolling this out across our existing member base, but that's something that we're pushing hard right now. I don't know if you want to, how much more detail you want to share in terms of expectations. Yeah. Well, as it relates to your second question around the rewards expense, rewards are actually contra revenue. The 1.75 interchange rate that we were referencing earlier is actually already net of our rewards expense. That's the sort of all intake. Oh, that's awesome. That's great. Okay.

Chris Britt: I guess as a follow-up, really appreciate the disclosures around OIT. Just wondering if you could talk a little bit around, I guess, attach and adoption rate. I guess it seems like we should be thinking about this makeshift dynamic continuing and thinking about the payment volume for active inclusive of this number. Just wondering, are you seeing that substitution effect level out where effectively what was previously pull is now fully migrated over to push? Would you expect that to be something that grows pretty fast and faster than kind of sequential changes in payment volume for the next couple of quarters? Yeah. The short story here is we do expect this to grow faster for the next few quarters. Said another way, we do expect this sort of makeshift from payments to platform to continue. This isn't a product that's.

Chris Britt: Used by the majority of our customers at all, in any way. It is by a smaller set of our members, and of course, it has grown fast. When you take a look at the impact on overall purchase volume rates, we felt it was very important to clarify this. We are seeing that some of our newer cohorts are adopting this at higher rates than our existing members. As that continues, that's why we expect this makeshift, again, to continue here for the next few quarters. Got it. No, that's super helpful. I appreciate you guys flagging that, and thanks for taking the questions. Thank you. We'll take our next question from Darren Peller with Wolf Research. Please go ahead. Your line is open. All right. Thanks, guys. Nice job on the quarter. When I think about.

Chris Britt: As a follow-up to attach rates and thinking about RPAM for a moment, I mean, now that you're, like you said, I mean, you're anniversarying the rollout, the initial rollout of MyPay, just help us understand how to think about growth in RPAM going forward from your perspective, both from a financial modeling perspective would be helpful, but also really thinking about it from a perspective of the different products that can help drive it, and those that you're most excited about going forward in the next year or so. Yeah. Well, maybe I'll touch just very briefly on sort of a near-term trajectory in RPAM, and then I'll hand it over to Chris to talk about some of the opportunities to continue to grow RPAM over time. The first thing I'd say is, as we mentioned, we are lapping the initial rollout of our.

Chris Britt: Really blockbuster new product, MyPay, this quarter. You should think about Q3 as sort of a partial lapping. We began rolling out MyPay in Q3 of last year, whereas Q4 is when we fully lapped the launch. As a result of that, you should expect RPAM growth just to moderate a bit in Q4 relative to Q3. I would say, though, overall, at the cohort level, we continue to see very strong RPAM growth. Our members are continuing to attach to more products over time. That coincides with continued growth in RPAM by cohorts across every cohort, with our most tenured cohorts now at over $350. Let me pass to Chris to talk about some of the other product opportunities we're excited about. Yeah. I think naturally, as we show in the supplemental pack, you can see consistently that as our cohorts age, the RPAM increases.

Chris Britt: One of the things that we love about how that RPAM increases is that it increases as a result of just more engagement, right? More spend, capturing more deposits over time, capturing more spend over time. Now with higher monetizing card transactions, we think there's an opportunity for that to continue to go even higher. Look, across the board, one of the things we talked about on the roadshow is not only do we have the best suite of products we believe for the mainstream everyday consumer, we also have the lowest-cost products. There's lots of opportunity for us on that side as well because we think that there's still quite a bit of room between the way many competitors price their products and ours.

Chris Britt: We're going to continue to add new products to drive more attach, and we think that's going to drive more engagement. We'll launch new products with prices that will continue to be market-leading. Really excited about the opportunity to drive more engagement and revenue over time. Guys, what's the latest on MyPay day one? Just a quick update, if you don't mind, and then we'll turn it back to the Q. Sure. MyPay day one is really one piece of this early engagement strategy that we've highlighted around making it easier to use us right out of the gate. I wouldn't sort of over-rotate on that opportunity, but early results are promising, albeit on a fairly small scale at this point in time. We really think that there's this combination of being able to fund your account easily, being able to.

Chris Britt: Having multiple ways to fund your account, to move money out of the account with OIT, to use our P2P service to get. The more we can give people access to trial of our product, we think the better chance we have over time to convert them to long-lasting primary accounts. We're going to continue to trial that experience of MyPay day one for people who don't yet have a direct deposit relationship. We'll also be adding other trial experiences as well. No major update to provide on that. It's still relatively small scale. Okay. Thanks, guys. Thank you. We'll take our next question from Sanjay Sekarhari with KBW. Your line is now open. Hi, this is Vasu Govil for Sanjay. Thanks for taking our question. Maybe could you just comment on the competitive environment a little bit?

Chris Britt: I know there are a number of different providers that are sort of trying to target the paycheck-to-paycheck consumer with short-duration loans for customer acquisition. Can you tell when your customers are engaging with any of these third-party platforms and anything you sense in terms of change in competitive intensity in the market? Thank you. Yeah, sure. I'm happy to pick that one up. I think maybe the first thing we should do to level set here is our real competition are big banks, number one. They have the vast majority of primary account relationships, and that is our primary, that is by far primary competition. If you took all the rest of the fintechs, we are much larger than all the rest of the fintechs combined in terms of primary account relationships today. I think, number one, we should index on large banks.

Chris Britt: Secondly, we're 3% penetrated today in our time. There's a lot of opportunity here ahead of us. We continue to obviously watch some of the smaller fintechs that are approaching our members. There's very few, if any of them, that are really making much progress on the primary account side, I think, to your point. Some of them are competing and offering liquidity services that would compete along with, say, SpotMe or MyPay. I think our perspective on that is, if you look at the price points that these competitors are offering, they are far in excess of the rates we have for MyPay and for SpotMe. Having said that, we do see some of our members who may be doubling up and using these additional services in addition to what they get from Chime to access higher levels of liquidity.

Chris Britt: We like our position there because we are top of the repayment stack, and we get paid first. We are going to continue to do this at very, very competitive rates. We are not seeing, as Chris indicated early on, even J.D. Power has just confirmed that more members are switching to Chime than anywhere else, and that trend continues. We do not see these offerings impacting our acquisition of primary account relationships. Thank you for the color. Just for my follow-up, if I could ask on the model for Q4 as we are thinking about new account ads, purchase volume growth, sort of anything to be mindful of from a seasonal perspective that you would tell us? Thank you. Q4, when we see seasonality in our business, the sort of primary quarter to call out is Q1, and therefore Q2 right after, just from a tax refund perspective.

Chris Britt: That's really when we see the most seasonality across our metrics, including purchase volume per active, including RPAM, including new account ads, etc. Q4, I think, seasonally tends to see a little bit higher spend on a per active member basis, just around the holidays, but not nearly as much as sort of a seasonally higher spend Q1. Beyond that, I think Q4 is a pretty standard quarter for us. We're excited to continue to grow across both metrics, actives, and purchase volume. Thank you. We've reached our allotted time for questions. I will now turn the call back to Chris Britt for additional or closing remarks. Thanks so much. I really want to appreciate everyone, and thank you all for joining us today. We look forward to seeing you all out on the road, hopefully sometime soon. Thank you. This does conclude today's meeting.

Chris Britt: Thank you for your time and participation. You may disconnect at any time. Have a wonderful day.

Q3 2025 Chime Financial Inc Earnings Call

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