Q1 2026 Chime Financial Inc Earnings Call

May 6, 2026

Operator: Good afternoon, and welcome to Chime's Q1 Fiscal 2026 Earnings Call. Following the speaker's remarks, we will open the line for your questions. As a reminder, this conference 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'd like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you. You may begin.

Speaker #1: Good afternoon and welcome to Chime's First Quarter Fiscal 2026 Earnings Call. Following the speaker's remarks, we will open the line for your questions. As a reminder, this conference is being recorded and replay of this call will be available on our investor relations website for a reasonable period of time after the call.

Speaker #1: I'd like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you. You may begin.

Speaker #2: Good afternoon, everyone, and thank you for joining us for Chime's first quarter 2026 earnings conference call. Joining me today are Chris Britt, our co-founder and CEO, and Matt Newcomb, our CFO.

Peter Stabler: Good afternoon, everyone, and thank you for joining us for Chime's Q1 2026 earnings conference call. Joining me today are Chris Britt, our Co-founder and CEO, and Matt Newcomb, our CFO. Mark Troughton, our president, 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 10-K filed on 6 March 2026.

Peter Stabler: Good afternoon, everyone, and thank you for joining us for Chime's Q1 2026 Earnings Conference Call. Joining me today are Chris Britt, our Co-Founder and CEO, and Matt Newcomb, our CFO. Mark Troughton, our president, 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.

Speaker #2: Mark Troughton, our president, 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.

Speaker #2: 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.

Peter Stabler: 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 10-K filed on 6 March 2026.

Speaker #2: Many of those risks and uncertainties are described in our SEC filings, including our Form 10-K filed on March 6, 2026. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made.

Peter Stabler: 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.

Speaker #2: We disclaim any obligation to update any forward-looking statements except as required by law. With that, I'll hand it over to Chris.

Speaker #3: Thanks, Peter, and thank you all for joining us today. 2026 is off to a strong start. In Q1, we delivered strong, active member growth, continued taking share from the largest banks, achieved GAAP profitability, and accelerated product velocity.

Chris Britt: Thanks, Peter, and thank you all for joining us today. 2026 is off to a strong start. In Q1, we delivered strong active member growth, continued taking share from the largest banks, achieved GAAP profitability, and accelerated product velocity. Last month, we launched Chime Prime, our new premium membership tier. Prime offers higher cashback rewards, high-yield savings, greater access to liquidity, and premium perks for members who make Chime their primary financial partner. Early signs are encouraging, and I'll share more in a moment. The strength of our brand and offerings have never been clearer. We added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million. Consumers are drawn to Chime's expanding product suite and low-fee model.

Speaker #3: Last month, we launched Chime Prime, our new premium membership tier. Prime offers higher cashback rewards, high-yield savings, greater access to liquidity, and premium perks for members who make Chime their primary financial partner.

Chris Britt: Prime offers higher cashback rewards, high-yield savings, greater access to liquidity, and premium perks for members who make Chime their primary financial partner. Early signs are encouraging, and I'll share more in a moment. The strength of our brand and offerings have never been clearer. We added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million. Consumers are drawn to Chime's expanding product suite and low-fee model.

Speaker #3: Early signs are encouraging, and I'll share more in a moment. The strength of our brand and offerings have never been clearer. We added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million.

Speaker #3: Consumers are drawn to Chime’s expanding product suite and low-fee model. As a result, Chime again ranked number one in U.S. checking account openings per J.D.

Chris Britt: As a result, Chime again ranked number one in US checking account openings per J.D. Power's Q1 survey and 50% ahead of the next competitor. While members earning 75,000 plus remained our fastest-growing segment. Our unaided brand awareness also continues to rise among consumers earning up to 100K. Turning to the quarter, revenue grew 25% year over year, exceeding the high end of our guidance range. Coupled with strong cost discipline, we delivered over 13 points of adjusted EBITDA margin expansion year over year, demonstrating the powerful fixed cost leverage in our business model. Q1 also marked our first quarter of positive GAAP EPS, a major milestone for our shareholders, and we expect to deliver positive GAAP EPS for our full-year results.

Speaker #3: Power's Q1 survey. 50% ahead of the next competitor, while members earning 75,000 plus remained our fastest-growing segment. Unaided brand awareness also continues to rise among consumers earning up to 100K, turning to the quarter.

Chris Britt: Turning to the quarter, revenue grew 25% year over year, exceeding the high end of our guidance range. Coupled with strong cost discipline, we delivered over 13 points of adjusted EBITDA margin expansion year over year, demonstrating the powerful fixed cost leverage in our business model. Q1 also marked our first quarter of positive GAAP EPS, a major milestone for our shareholders, and we expect to deliver positive GAAP EPS for our full-year results.

Speaker #3: Revenue grew 25% year over year, exceeding the high end of our guidance range. Coupled with strong cost discipline, we delivered over 13 points of adjusted EBITDA margin expansion year over year, demonstrating the powerful fixed cost leverage in our business model.

Speaker #3: Q1 also marked our first quarter of positive GAAP EPS, a major milestone for our shareholders. And we expect to deliver positive GAAP EPS for our full-year results.

Speaker #3: Our Q1 results highlight our core competitive advantages. Primary relationships, our trusted brand, a low cost to serve, and rapid innovation powered by Chime Core now accelerated with AI.

Chris Britt: Our Q1 results highlight our core competitive advantages, primary relationships, our trusted brand, a low cost to serve, and rapid innovation powered by Chime Core now accelerated with AI. Understandably, the health of the American consumer is a major focus for investors today, fueled by geopolitical uncertainty, high energy costs, and overall affordability concerns. We look closely at our members' behavior, and as we've reported for the past several quarters, we continue to see broad consumer resilience. Even with fuel spending up, overall purchase volumes and saving rates remain strong and consistent, and average account balances among our recurring direct depositors continue to grow, aided in part by year-over-year growth in the average tax refund. We've yet to see any meaningful changes in the number of our members receiving unemployment benefits.

Speaker #3: Understandably, the health of the American consumer is a major focus for investors today. Fueled by geopolitical uncertainty, high energy costs, and overall affordability concerns, we've looked closely at our members' behavior and, as we've reported for the past several quarters, we continue to see broad consumer resilience.

Speaker #3: Even with fuel spending up, overall purchase volumes, and saving rates remain strong and consistent, an average account balances among our recurring direct depositors continue to grow.

Chris Britt: Even with fuel spending up, overall purchase volumes and saving rates remain strong and consistent, and average account balances among our recurring direct depositors continue to grow, aided in part by year-over-year growth in the average tax refund. We've yet to see any meaningful changes in the number of our members receiving unemployment benefits.

Speaker #3: Aided in part by year-over-year growth in the average tax refund. And we've yet to see any meaningful changes in the number of our members receiving unemployment benefits.

Speaker #3: In terms of lending, our credit loss rates continue to improve, reflecting the strength of our short-duration loan portfolio underwritten by recurring direct deposits, and our ability to rapidly fine-tune our lending risk models.

Chris Britt: In terms of lending, our credit loss rates continue to improve, reflecting the strength of our short-duration loan portfolio underwritten by recurring direct deposits and our ability to rapidly fine-tune our lending risk models. These factors dramatically lower our loan portfolio risk and are what separate us from other lending businesses. Turning to our 2026 priorities, as we mentioned last quarter, our first priority is to extend our lead as the best financial partner for everyday Americans. This starts by leveraging our proprietary tech stack and cost to serve advantage to provide products and services that enable our members to unlock financial progress while maintaining our position as the market's low-cost leader. Our membership tiers embody our central brand promise of offering the most rewarding fee-free banking experiences in the market for everyday Americans. At the same time, they reinforce a simple idea.

Speaker #3: These factors dramatically lower our loan portfolio risk and are what separate us from other lending businesses. Turning to our 2026 priorities, as we mentioned last quarter, our first priority is to extend our lead as the best financial partner for everyday Americans.

Chris Britt: Turning to our 2026 priorities, as we mentioned last quarter, our first priority is to extend our lead as the best financial partner for everyday Americans. This starts by leveraging our proprietary tech stack and cost to serve advantage to provide products and services that enable our members to unlock financial progress while maintaining our position as the market's low-cost leader. Our membership tiers embody our central brand promise of offering the most rewarding fee-free banking experiences in the market for everyday Americans. At the same time, they reinforce a simple idea.

Speaker #3: This starts by leveraging our proprietary tech stack and cost-to-serve advantage to provide products and services that enable our members to unlock financial progress. While maintaining our position as the market's low-cost leader, our membership tiers embody our central brand promise of offering the most rewarding fee-free banking experiences in the market for everyday Americans.

Speaker #3: At the same time, they reinforce a simple idea: the more members engage with Chime as their primary financial partner, the more value they unlock.

Chris Britt: The more members engage with Chime as their primary financial partner, the more value they unlock. Our membership tiers drive deeper direct deposit relationships, increased product usage, and expanded RPAM, as evidenced again this Q. Building on the success of Chime Plus, our basic membership tier that rewards members who set up direct deposit, we're really excited about the launch of Chime Prime, which offers an even richer set of rewards to members making at least $3,000 of qualifying direct deposits per month. As with Chime Plus, there are no fees. Chime Prime members unlock a market-leading 5% cashback on the category of their choice when they spend with their Chime Card. Categories include groceries, restaurants, gas, utilities, or travel. For example, a family spending $1,500 on groceries per month would receive $75 in cash back on Chime Prime.

Speaker #3: Our membership tiers drive deeper direct deposit relationships, increased product usage, and expanded RPAM as evidenced again this quarter. Building on the success of Chime Plus, our basic membership tier that rewards members who set up direct deposit, we're really excited about the launch of Chime Prime, which offers an even richer set of rewards to members making at least $3,000 of qualifying direct deposits per month.

Speaker #3: And as with Chime Plus, there are no fees. Chime Prime members unlock a market-leading 5% cashback on the category of their choice when they spend with their Chime card.

Chris Britt: As with Chime Plus, there are no fees. Chime Prime members unlock a market-leading 5% cashback on the category of their choice when they spend with their Chime Card. Categories include groceries, restaurants, gas, utilities, or travel. For example, a family spending $1,500 on groceries per month would receive $75 in cash back on Chime Prime.

Speaker #3: Categories include groceries, restaurants, gas, utilities, or travel. So, for example, a family spending $1,500 on groceries per month would receive $75 in cashback on Chime Prime.

Chris Britt: Prime also includes 3.75% APY on savings, a rate 9 times the national average, up to 70 points of credit score improvement, higher levels of liquidity through MyPay and Instant Loans, and premium travel and lifestyle perks like access to exclusive airport lounges and special access to concerts. Early results show that our new Prime tier is increasing direct deposit intent and improving retention among existing direct depositors. Prime members are also more likely to adopt Chime Card for everyday spend, helping to drive a continued shift we're seeing from debit to credit spending, which delivers a higher take rate for us. The benefits from this more premium tier deepens our relationship with higher-earning members who are becoming a larger portion of our member base.

Speaker #3: Prime also includes 3.75% APY on savings, a rate nine times the national average. Up to 70 points of credit score improvement, higher levels of liquidity through MyPay and Instant Loans, and premium travel and lifestyle perks like access to exclusive airport lounges, and special access to concerts.

Speaker #3: Early results show that our new Prime tier is increasing direct deposit intent and improving retention among existing direct depositors. Prime members are also more likely to adopt Chime Card for everyday spend, helping to drive a continued shift we're seeing from debit to credit spending, which delivers a higher take rate for us.

Chris Britt: Early results show that our new Prime tier is increasing direct deposit intent and improving retention among existing direct depositors. Prime members are also more likely to adopt Chime Card for everyday spend, helping to drive a continued shift we're seeing from debit to credit spending, which delivers a higher take rate for us. The benefits from this more premium tier deepens our relationship with higher-earning members who are becoming a larger portion of our member base.

Speaker #3: The benefits from this more premium tier deepen our relationship with higher-earning members, who are becoming a larger portion of our member base. Turning to our short-term liquidity products, Q1 was another strong quarter for MyPay, which has already a $400 million plus run rate business.

Chris Britt: Turning to our short-term liquidity products, Q1 was another strong quarter for MyPay, which is already a $400 million-plus run rate business. We rolled out our variable MyPay pricing plan and expanded access to earned wages earlier in the pay cycle, addressing our most frequent member requests, while at the same time retaining our leadership as the low-cost provider in the market. With higher origination volumes, improved yields, and low steady loss rates, MyPay transaction profit was up over tenfold year-over-year. We're also making great progress with Instant Loans, which we believe positions the product to become a meaningful contributor to transaction profit growth over the coming quarters. Members qualifying for Chime Prime are pre-qualified for Instant Loans, and continued optimization of our underwriting models is enabling us to broaden member access while we reduce loss rates.

Speaker #3: We rolled out our variable MyPay pricing plan and expanded access to earned wages earlier in the pay cycle, addressing our most frequent member requests, while at the same time retaining our leadership as the low-cost provider in the market.

Speaker #3: With higher origination volumes, improved yield, and low steady loss rates, MyPay transaction profit was up over tenfold year over year. We're also making great progress with Instant Loans, which we believe positions the product to become a meaningful contributor to transaction profit growth over the coming quarters.

Chris Britt: We're also making great progress with Instant Loans, which we believe positions the product to become a meaningful contributor to transaction profit growth over the coming quarters. Members qualifying for Chime Prime are pre-qualified for Instant Loans, and continued optimization of our underwriting models is enabling us to broaden member access while we reduce loss rates.

Speaker #3: Members qualifying for Chime Prime are pre-qualified for Instant Loans, and continued optimization of our underwriting models is enabling us to broaden member access while we reduce loss rates.

Speaker #3: Our first priority and North Star is to help our members unlock financial progress. In service of this goal, our product roadmap for this year will expand to meet even more of their everyday financial needs with investing, joint accounts, and custodial accounts, all coming soon.

Chris Britt: Our first priority at North Star is to help our members unlock financial progress. In service of this goal, our product roadmap for this year will expand to meet even more of their everyday financial needs with investing, joint accounts, and custodial accounts all coming soon. With a broader portfolio of products, we believe we'll continue to deepen our member relationships. The evidence at the cohort level is clear and compelling. The longer a Chime member stays with us, the greater the average product attach rate, purchase volume, and transaction profit. This compounding dynamic is the core of our long-term growth model. Our second priority is scaling Chime Enterprise, our expanded earned wage access and suite of financial wellness tools completely free to employees through their employers. As we've mentioned, the sales cycle for enterprise accounts tend to be long, but our pipeline and customer count is growing steadily.

Speaker #3: With a broader portfolio of products, we believe we'll continue to deepen our member relationships, the evidence at the cohort level is clear and compelling.

Speaker #3: The longer a Chime member stays with us, the greater the average product attach rate, purchase volume, and transaction profit. This compounding dynamic is the core of our long-term growth model.

Chris Britt: The longer a Chime member stays with us, the greater the average product attach rate, purchase volume, and transaction profit. This compounding dynamic is the core of our long-term growth model. Our second priority is scaling Chime Enterprise, our expanded earned wage access and suite of financial wellness tools completely free to employees through their employers. As we've mentioned, the sales cycle for enterprise accounts tend to be long, but our pipeline and customer count is growing steadily.

Speaker #3: Our second priority is scaling Chime Enterprise. Our expanded earned wage access and suite of financial wellness tools completely free to employees through their employers.

Speaker #3: As we've mentioned, the sales cycle for Enterprise accounts tends to be long, but our pipeline and customer count is growing steadily. We're excited to announce that we've signed four new employer partners in Q1, including First Student, the largest provider of student transportation in the nation, with over 65,000 employees.

Chris Britt: We're excited to announce that we've signed four new employer partners in Q1, including First Student, the largest provider of student transportation in the nation, with over 65,000 employees. As we prepare to roll out with First Student, our Workday partnership will support seamless integration and implementation. Our third priority is to deeply embed AI across Chime and into the member experience. For a full stack fintech like Chime, with proprietary data, integrated infrastructure, deep bank partnerships, and a trusted brand, AI compounds our structural advantage and further differentiates us from incumbent banks. As the primary account for millions of members, we have a real-time view of their financial lives, paychecks, spending, bills, balances, all flowing through our platform. Because Chime Core powers everything from the ledger to the app experience, we can take action, not just provide insights.

Speaker #3: As we prepare to roll out with First Student, our Workday partnership will support seamless integration and implementation. Our third priority is to deeply embed AI across Chime and into the member experience.

Speaker #3: For a full-stack fintech like Chime, with proprietary data, integrated infrastructure, deep bank partnerships, and a trusted brand, AI compounds our structural advantage and further differentiates us from incumbent banks.

Chris Britt: For a full stack fintech like Chime, with proprietary data, integrated infrastructure, deep bank partnerships, and a trusted brand, AI compounds our structural advantage and further differentiates us from incumbent banks. As the primary account for millions of members, we have a real-time view of their financial lives, paychecks, spending, bills, balances, all flowing through our platform. Because Chime Core powers everything from the ledger to the app experience, we can take action, not just provide insights.

Speaker #3: As the primary account for millions of members, we have a real-time view of their financial lives—paychecks, spending, bills, balances—all flowing through our platform.

Speaker #3: And because Chime Core powers everything from the ledger to the app experience, we can take action, not just provide insights. With the members' permission, we can move money to where it earns more.

Chris Britt: With a member's permission, we can move money to where it earns more, extend credit in the moment it's needed, and stop unwanted charges before they post, capabilities no third-party app could replicate. With Jade, our AI copilot rolling out now, we're bringing this to life. Jade will help us move from reactive tools to proactive financial management, helping members spend smarter, save more, pay bills on time, borrow responsibly, and build long-term wealth. Early results from scaled beta testing have been encouraging. We'll continue to expand access over the coming months. While AI will accelerate innovation across the industry, it won't replicate the foundations of our model: bank partnerships, payment networks, and compliance infrastructure. As choice expands, consumers will choose the platform that delivers the best products at the lowest cost from a brand that they trust. AI is already transforming the way we work.

Speaker #3: Extend credit in the moment it's needed, and stop unwanted charges before they post. Capabilities no third-party app could replicate. With Jade, our AI co-pilot rolling out now, we're bringing this to life.

Speaker #3: Jade will help us move from reactive tools to proactive financial management, helping members spend smarter, save more, pay bills on time, borrow responsibly, and build long-term wealth.

Speaker #3: Early results from scaled beta testing have been encouraging, and we'll continue to expand access over the coming months. While AI will accelerate innovation across the industry, it won't replicate the foundations of our model, bank partnerships, payment networks, and compliance infrastructure.

Chris Britt: Early results from scaled beta testing have been encouraging. We'll continue to expand access over the coming months. While AI will accelerate innovation across the industry, it won't replicate the foundations of our model: bank partnerships, payment networks, and compliance infrastructure. As choice expands, consumers will choose the platform that delivers the best products at the lowest cost from a brand that they trust. AI is already transforming the way we work.

Speaker #3: As choice expands, consumers will choose the platform that delivers the best products at the lowest cost, from a brand that they trust. AI is already transforming the way we work.

Speaker #3: In product and engineering, AI-powered development is quickly becoming the norm. Eighty-four percent of the code we shipped in March was developed with AI, up from 29% just four months ago.

Chris Britt: In product and engineering, AI-powered development is quickly becoming the norm. 84% of the code we shipped in March was developed with AI, up from 29% just 4 months ago. That's driving a meaningful increase in velocity. We're now taking the next step with Archimedes, our AI-native software factory, where we can move from idea to a shipped product with AI agents doing the majority of the development. More broadly, Archimedes represents a fundamental shift in how we build at Chime, from AI assisting humans to AI at the center of how we design and develop products while maintaining the quality, control, and compliance our platform requires. AI is driving operating leverage at scale, increasing levels of output while keeping headcount flat. We're at a unique moment where AI is unlocking entirely new possibilities in financial services.

Speaker #3: That's driving a meaningful increase in velocity. We're now taking the next step with Archimedes, our AI-native software factory, where we can move from idea to a shipped product with AI agents doing the majority of the development.

Speaker #3: More broadly, Archimedes represents a fundamental shift in how we build at Chime—from AI assisting humans to AI at the center of how we design and develop products.

Chris Britt: More broadly, Archimedes represents a fundamental shift in how we build at Chime, from AI assisting humans to AI at the center of how we design and develop products while maintaining the quality, control, and compliance our platform requires. AI is driving operating leverage at scale, increasing levels of output while keeping headcount flat. We're at a unique moment where AI is unlocking entirely new possibilities in financial services.

Speaker #3: While maintaining the quality, control, and compliance our platform requires, AI is driving operating leverage at scale, increasing levels of output while keeping headcount flat.

Speaker #3: We're at a unique moment where AI is unlocking entirely new possibilities in financial services. Because we're not burdened by legacy systems, we can move faster, build better, and lead this transformation.

Chris Britt: Because we're not burdened by legacy systems, we can move faster, build better, and lead this transformation. With our platform, model, and momentum, we're uniquely positioned to shape what comes next. AI isn't just a tailwind for our business. It's an accelerant of our core advantages, further expanding what we can deliver for our members and for our business. I'll turn it over to Matt to cover our financial results and provide an updated outlook for Q2 and the full year.

Speaker #3: With our platform, model, and momentum, we're uniquely positioned to shape what comes next. AI isn't just a tailwind for our business; it's an accelerant of our core advantages, further expanding what we can deliver for our members and for our business.

Speaker #3: I'll turn it over to Matt to cover our financial results and provide an updated outlook for Q2 and the full year. Thanks, Chris. In Q1, our fourth quarter as a public company, we again demonstrated both strong execution and the resiliency of our model.

Matt Newcomb: Thanks, Chris. In Q1, our Q4 as a public company, we again demonstrated both strong execution and the resiliency of our model. We're continuing to execute on multiple dimensions of growth with 19% growth in active members, 5% growth in average revenue per active member, or ARPAM, and a 9 percentage point improvement in transaction margin in Q1. These are compounding growth levers, together drove 41% growth in transaction profit in the quarter. We're the clear number one share gainer in a massive market with a radical cost to serve advantage and a technology and product innovation advantage that continues to extend our lead over the competition. Powered by our deeply engaged primary account relationships, we have a durable, low credit risk, 70% plus transaction margin business that we're scaling over a largely fixed OpEx base.

Speaker #3: We're continuing to execute on multiple dimensions of growth, with 19% growth in active members, 5% growth in average revenue per active member, or RPAM, and a 9-percentage-point improvement in transaction margin in Q1.

Speaker #3: These are compounding growth levers, and together drove 41% growth in transaction profit in the quarter. With a clear number one share gainer and a massive market, with a radical cost of serve advantage, and a technology and product innovation advantage that continues to extend our lead over the competition.

Matt Newcomb: We're the clear number one share gainer in a massive market with a radical cost to serve advantage and a technology and product innovation advantage that continues to extend our lead over the competition. Powered by our deeply engaged primary account relationships, we have a durable, low credit risk, 70% plus transaction margin business that we're scaling over a largely fixed OpEx base.

Speaker #3: And powered by our deeply engaged primary account relationships, we have a durable, low credit risk, 70%+ transaction margin business that we're scaling over a largely fixed OPEX base.

Speaker #3: These are the ingredients of a business model with strong long-term earnings power. And in Q1, we again demonstrated our rapid progress along that path.

Matt Newcomb: These are the ingredients of a business model with strong long-term earnings power. In Q1, we again demonstrated our rapid progress along that path. Our Q1 adjusted EBITDA margin of 18% improved over 1,300 basis points year-over-year. Our incremental adjusted EBITDA margin was 73% in the quarter, and we were GAAP profitable. Given the strength in the business, we are raising full year guidance. Having exhausted our prior repurchase program, we are also announcing an additional $200 million share repurchase authorization. While markets are volatile, our long-term earnings power is not. This authorization allows us to continue to opportunistically take advantage of market dislocations in our share price. Let me dive into more detail on our Q1 operating results, starting with active members.

Speaker #3: Our Q1 adjusted EBITDA margin of 18% improved over 1,300 basis points year over year. Our incremental adjusted EBITDA margin was 73% in the quarter.

Speaker #3: And we were GAAP profitable. Given the strength in the business, we are raising full-year guidance. And having exhausted our prior repurchase program, we are also announcing an additional $200 million share repurchase authorization.

Matt Newcomb: Given the strength in the business, we are raising full year guidance. Having exhausted our prior repurchase program, we are also announcing an additional $200 million share repurchase authorization. While markets are volatile, our long-term earnings power is not. This authorization allows us to continue to opportunistically take advantage of market dislocations in our share price. Let me dive into more detail on our Q1 operating results, starting with active members.

Speaker #3: While markets are volatile, our long-term earnings power is not, and this authorization allows us to continue to opportunistically take advantage of market dislocations in our share price.

Speaker #3: Let me dive into more detail on our Q1 operating results, starting with active members. We have a consistent track record as the leading share gainer in a market of nearly 200 million Americans making up to $100K.

Matt Newcomb: We have a consistent track record as the leading share gainer in a market of nearly 200 million Americans making up to $100K. In Q1, we added nearly 700,000 net new active members quarter over quarter. Some of this growth was driven by particularly strong seasonal tailwinds. As a reminder, each year in Q1, tax refund-related activity drives seasonally higher levels of re-engaged active members. This year, we saw the number of members using our embedded tax filing service grow over 50% year over year. This year's later start to tax season concentrated more of this re-engagement later in the quarter. That said, our overall growth algorithm continues to perform well, with several other drivers contributing to this quarter's strong performance. First, our top of funnel remains strong.

Speaker #3: In Q1, we added nearly 700,000 net new active members, quarter over quarter. Some of this growth was driven by particularly strong seasonal tailwinds. As a reminder, each year in Q1, tax refund-related activity drives seasonally higher levels of re-engaged active members.

Speaker #3: This year, we saw the number of members using our embedded tax filing service grow over 50% year over year. Also, this year's later start to tax season concentrated more of this re-engagement later in the quarter.

Matt Newcomb: This year, we saw the number of members using our embedded tax filing service grow over 50% year over year. This year's later start to tax season concentrated more of this re-engagement later in the quarter. That said, our overall growth algorithm continues to perform well, with several other drivers contributing to this quarter's strong performance. First, our top of funnel remains strong.

Speaker #3: That said, our overall growth algorithm continues to perform well, with several other drivers contributing to this quarter's strong performance. First, our top-of-funnel remains strong.

Speaker #3: Our brand awareness continues to grow, and new value propositions like Chime Card's cashback rewards on everyday spend are clearly resonating with members. Looking ahead, we're excited about the opportunity to use rewards more broadly to drive both new member growth and retention, and expect to continue to experiment this year.

Matt Newcomb: Our brand awareness continues to grow, and new value propositions like Chime Card's cashback rewards on everyday spend are clearly resonating with members. Looking ahead, we're excited about the opportunity to use rewards more broadly to drive both new member growth and retention, and expect to continue to experiment this year. Second, our early engagement initiatives, which make it easier to get started with Chime, continue to be successful. These initiatives have enabled us to engage members we wouldn't have otherwise engaged, driving all-time high activation rates, lowering our CAC, and improving our payback periods to 5 to 6 quarters. We're also finding that they're increasingly an on-ramp to more deeply engaged direct deposit relationships, not just lightly engaged members. Given this progress, we believe we are on track to exceed our original goal of 1.4 million net new actives for 2026. Second is ARPAM.

Speaker #3: Second, our early engagement initiatives, which make it easier to get started with Chime, continue to be successful. These initiatives have enabled us to engage members we wouldn't have otherwise engaged.

Matt Newcomb: These initiatives have enabled us to engage members we wouldn't have otherwise engaged, driving all-time high activation rates, lowering our CAC, and improving our payback periods to 5 to 6 quarters. We're also finding that they're increasingly an on-ramp to more deeply engaged direct deposit relationships, not just lightly engaged members. Given this progress, we believe we are on track to exceed our original goal of 1.4 million net new actives for 2026. Second is ARPAM.

Speaker #3: Driving all-time high activation rates, lowering our CACs, and improving our payback periods to five to six quarters. We're also finding that they are increasingly an on-ramp to more deeply engaged, direct deposit relationships, not just lightly engaged members.

Speaker #3: Given this progress, we believe we are on track to exceed our original goal of $1.4 million net new actives for 2026. Second is RPAM.

Speaker #3: We have a high-quality member base. We serve the majority of our members in a primary account capacity, which gives us deep levels of engagement, strong retention, and high levels of RPAM.

Matt Newcomb: We have a high-quality member base. We serve the majority of our members in a primary account capacity, which gives us deep levels of engagement, strong retention, and high levels of ARPAM. As our members' primary account relationship, we've also earned both the trust and mind share to drive strong product cross-sell. 15% of our active members use 6 or more products each month, and their ARPAM is north of $500, double our average. In Q1 specifically, overall ARPAM increased 5% year-over-year to $263, driven by strength in both payments and platform revenue. Combined payments and OIT revenue increased 19% year-over-year. Resilient member spend trends, along with larger tax refund deposits, drove PV and OIT volume growth of 15%. We're also continuing to drive strong adoption of Chime Card across both new and existing members.

Speaker #3: As our members' primary account relationship, we've also earned both the trust and mindshare to drive strong product cross-sell. Fifteen percent of our active members use six or more products each month, and their RPAM is north of $500, double our average.

Speaker #3: In Q1 specifically, overall RPAM increased 5% year over year to $263, driven by strength in both payments and platform revenue. Combined payments and OIT revenue increased 19% year over year.

Matt Newcomb: In Q1 specifically, overall ARPAM increased 5% year-over-year to $263, driven by strength in both payments and platform revenue. Combined payments and OIT revenue increased 19% year-over-year. Resilient member spend trends, along with larger tax refund deposits, drove PV and OIT volume growth of 15%. We're also continuing to drive strong adoption of Chime Card across both new and existing members.

Speaker #3: Resilient member spend trends, along with larger tax refund deposits, drove PV and OIT volume growth of 15%. We're also continuing to drive strong adoption of the Chime Card, across both new and existing members.

Speaker #3: As of March, nearly half of our members are using a secured credit card, either our legacy Credit Builder card or, increasingly, our new Chime card on a monthly basis.

Matt Newcomb: As of March, nearly half of our members are using a secured credit card, either our legacy Credit Builder card, or increasingly, our new Chime Card on a monthly basis. That's up from just over a third of members in September prior to our Chime Card launch. This progress has increased the portion of total purchase volume that is on credit to nearly 25% in March, up from 16% in September. Chime Card is a win-win. Members benefit from cashback rewards on their everyday spend, and we benefit from the higher net interchange rates we earn on credit. As Chris noted, we're excited for Chime Prime's potential to drive Chime Card adoption even higher. Platform-related revenue increased 50% year over year, driven by continued strong performance across our liquidity products.

Speaker #3: That's up from just over a third of members in September, prior to our Chime Card launch. This progress has increased the portion of total purchase volume that is on credit to nearly 25% in March, up from 16% in September.

Speaker #3: Chime Card is a win-win. Members benefit from cashback rewards on their everyday spend, and we benefit from the higher net interchange rates we earn on credit.

Matt Newcomb: Chime Card is a win-win. Members benefit from cashback rewards on their everyday spend, and we benefit from the higher net interchange rates we earn on credit. As Chris noted, we're excited for Chime Prime's potential to drive Chime Card adoption even higher. Platform-related revenue increased 50% year over year, driven by continued strong performance across our liquidity products.

Speaker #3: And, as Chris noted, we're excited for Chime Prime's potential to drive Chime Card adoption even higher. Platform-related revenue increased 50% year over year, driven by continued strong performance across our liquidity products.

Speaker #3: Our success earning direct deposit relationships enables us to offer liquidity products profitably, at low cost, and with low risk. In Q1, we completed the rollout of our new variable pricing model for MyPay.

Matt Newcomb: Our success earning direct deposit relationships enables us to offer liquidity products profitably, at low cost, and with low risk. In Q1, we completed the rollout of our new variable pricing model for MyPay, while also maintaining loss rates at our steady-state target of 1%. Together, this grew our MyPay transaction margin to 62%, and overall MyPay transaction profit dollars to $64 million, up 10x year over year. We're also seeing strong performance for Instant Loans, our 3-to-12 month installment loan product. We're scaling access. In Q1, we originated $180 million of Instant Loans. We're also offering longer duration loans to repeat borrowers, which come with better economics. In Q1, we doubled origination volume quarter over quarter for 9-and-12 month loans. We're driving lower loss rates.

Speaker #3: While also maintaining loss rates at our steady-state target of 1%. Together, this grew our MyPay transaction margin to 62%, and overall MyPay transaction profit dollars to $64 million, up 10x year over year.

Speaker #3: We're also seeing strong performance for instant loans, our 3- to 12-month installment loan products. We're scaling access. In Q1, we originated $180 million of instant loans.

Matt Newcomb: We're also seeing strong performance for Instant Loans, our 3-to-12 month installment loan product. We're scaling access. In Q1, we originated $180 million of Instant Loans. We're also offering longer duration loans to repeat borrowers, which come with better economics. In Q1, we doubled origination volume quarter over quarter for 9-and-12 month loans. We're driving lower loss rates.

Speaker #3: We're also offering longer-duration loans to repeat borrowers, which come with better economics. In Q1, we doubled origination volume quarter over quarter for 9- and 12-month loans.

Speaker #3: And we're driving lower loss rates. We continue to see loss rates improve as much as 50% for repeat borrowers compared to first-time borrowers. Taken together, we're very excited about the progress with this product and its path to becoming a meaningful driver of transaction profit growth over the coming quarters.

Matt Newcomb: We continue to see loss rates improve as much as 50% for repeat borrowers compared to first-time borrowers. Taken together, we're very excited about the progress of this product and its path to becoming a meaningful driver of transaction profit growth over the coming quarters. Third is transaction profit. Our low-cost operating model has enabled us to offer what we believe is the most compelling breadth of services for mainstream consumers, delivered at over 70% transaction margin. We don't believe any incumbent offers consumers anywhere near the level of utility and value that Chime offers, including for higher earners. In Q1, as a result of our recent transition to Chime Core, as well as continued strong loss rates performance, we improved our transaction margin to 76%, up 9 percentage points year over year.

Speaker #3: Third is transaction profit. Our low-cost operating model has enabled us to offer what we believe is the most compelling breadth of services for mainstream consumers.

Speaker #3: Delivered at over 70% transaction margin. We don't believe any incumbent offers consumers anywhere near the level of utility and value that Chime offers, including for higher earners.

Matt Newcomb: We don't believe any incumbent offers consumers anywhere near the level of utility and value that Chime offers, including for higher earners. In Q1, as a result of our recent transition to Chime Core, as well as continued strong loss rates performance, we improved our transaction margin to 76%, up 9 percentage points year over year.

Speaker #3: In Q1, as a result of our recent transition to Chime Core, as well as continued strong loss rates and performance, we improved our transaction margin to 76%, up 9 percentage points year over year.

Speaker #3: Together with our growth in actives and RPAM, overall transaction profit grew 41% year over year to $491 million. So, we're compounding growth across multiple dimensions, and we're driving this growth with strong unit economics.

Matt Newcomb: Together with our growth in actives in ARPAM, overall transaction profit grew 41% year over year to $491 million. We're compounding growth across multiple dimensions, and we're driving this growth with strong unit economics. We continue to acquire members efficiently, with 5-to-6 quarter transaction profit payback period. Just as important is the durability of our cohorts, driven by our deeply engaged, long-lasting primary account relationships. Our cohorts are underpinned by every day, reoccurring, non-discretionary spend. Our cohorts double in ARPAM as they season, as members attach to more products over time. Our cohorts see over 100% dollar-based transaction profit retention, net of churn. Taken together, this drives LTV to CACs of over 8x. It's these unit economics that allow us to drive strong operating leverage while continuing to make meaningful investments in growth.

Speaker #3: We continue to acquire members efficiently, with a five- to six-quarter transaction profit payback period. But just as important is the durability of our cohorts, driven by our deeply engaged, long-lasting primary account relationships.

Speaker #3: Our cohorts are underpinned by everyday, recurring, nondiscretionary spend. Our cohorts double in RPAM as they season, as members attach to more products over time.

Matt Newcomb: Our cohorts are underpinned by every day, reoccurring, non-discretionary spend. Our cohorts double in ARPAM as they season, as members attach to more products over time. Our cohorts see over 100% dollar-based transaction profit retention, net of churn. Taken together, this drives LTV to CACs of over 8x. It's these unit economics that allow us to drive strong operating leverage while continuing to make meaningful investments in growth.

Speaker #3: And our cohorts see over 100% dollar-based transaction profit retention, net of churn. Taken together, this drives LCV to CACs of over 8x. It's these unit economics that allow us to drive strong operating leverage while continuing to make meaningful investments in growth.

Speaker #3: In Q1, non-GAAP OPEX as a percent of revenue fell 5 percentage points year over year, with leverage across all OPEX categories. And in Q1, we grew our adjusted EBITDA margin to 18%, up 13 percentage points year over year, at an incremental margin of over 70%.

Matt Newcomb: In Q1, non-GAAP OpEx as a percent of revenue fell 5 percentage points year-over-year, with leverage across all OpEx categories. In Q1, we grew our adjusted EBITDA margin to 18%, up 13 percentage points year-over-year at an incremental margin of over 70%. In total, we delivered $119 million of adjusted EBITDA and $53 million of GAAP net income. Turning to our guidance. In Q2, we expect revenue between $633 to 643 million, resulting in year-over-year revenue growth between 20% and 22%. We expect adjusted EBITDA between $72 to 77 million and an adjusted EBITDA margin between 11% and 12%. For the full year, we expect revenue between $2.66 to 2.69 billion, resulting in year-over-year revenue growth between 22% and 23%.

Speaker #3: In total, we delivered $119 million of adjusted EBITDA and $53 million of GAAP net income. Turning to our guidance, in the second quarter, we expect revenue between $633 million and $643 million.

Matt Newcomb: Turning to our guidance. In Q2, we expect revenue between $633 to 643 million, resulting in year-over-year revenue growth between 20% and 22%. We expect adjusted EBITDA between $72 to 77 million and an adjusted EBITDA margin between 11% and 12%. For the full year, we expect revenue between $2.66 to 2.69 billion, resulting in year-over-year revenue growth between 22% and 23%.

Speaker #3: Resulting in year-over-year revenue growth between 20% and EBITDA between $72 and $77 million, and an adjusted EBITDA margin between 11% and 12%. For the full year, we expect revenue between $2.66 and $2.69 billion, resulting in year-over-year revenue growth between 22% and 23%.

Speaker #3: And we expect full-year adjusted EBITDA of between $416 million and $431 million, and an adjusted EBITDA margin of 16%. We now expect an incremental adjusted EBITDA margin of approximately 60% for 2026.

Matt Newcomb: We expect full-year adjusted EBITDA of between $416 and $431 million and an adjusted EBITDA margin of 16%. We now expect an incremental adjusted EBITDA margin of approximately 60% for 2026. There are a few things to keep in mind about our Q2 and full year guide. As a reminder, we have a seasonal business. Many of our metrics, including active members, transaction volumes, and RPAM, benefit from tax refund-related activity in Q1. In particular, because tax refund-related activity drives more members to re-engage with us in Q1, we benefit from seasonally high quarter-over-quarter net adds each Q1 but lower net adds each Q2. We expect to see this typical seasonality again this Q2.

Speaker #3: There are a few things to keep in mind about our second quarter and full-year guide. As a reminder, we have a seasonal business. Many of our metrics, including active members, transaction volumes, and RPAM, benefit from tax refund-related activity in Q1.

Matt Newcomb: Many of our metrics, including active members, transaction volumes, and RPAM, benefit from tax refund-related activity in Q1. In particular, because tax refund-related activity drives more members to re-engage with us in Q1, we benefit from seasonally high quarter-over-quarter net adds each Q1 but lower net adds each Q2. We expect to see this typical seasonality again this Q2.

Speaker #3: In particular, because tax refund-related activity drives more members to re-engage with us in the first quarter, we benefit from seasonally high quarter-over-quarter net adds each Q1, but lower net adds each Q2.

Speaker #3: We expect to see this typical seasonality again this Q2. We also see seasonally elevated transaction margin in Q1 due to higher purchase volume, as well as both lower utilization and higher repayment rates on our liquidity products.

Matt Newcomb: We also see seasonally elevated transaction margin in Q1 due to higher purchase volume, as well as both lower utilization and higher repayment rates on our liquidity products. As such, we expect transaction margin to normalize from 76% in Q1 to between 70% and 72% for the rest of the year. Finally, while we'll continue driving operating leverage at attractive incremental margins, as we've noted previously, we are investing into sales and marketing and member support costs to support the recent launch of our Chime Prime premium membership tier this year, particularly in Q2. With that, I'll open it up to Q&A.

Speaker #3: As such, we expect transaction margin to normalize from 76% in Q1 to between 70% and 72% for the rest of the year. Finally, while we'll continue driving operating leverage at attractive incremental margins, as we've noted previously, we're investing into sales and marketing and member support costs to support the recent launch of our Chime Prime premium membership tier this year, particularly in Q2.

Speaker #3: With that, I'll open it up to Q&A.

Speaker #1: Thank you, Ed. This time, we will open the floor for questions. If you'd like to ask a question, you may press star 1 on your telephone keypad now.

Operator: Thank you. At this time, we will open the floor for questions. If you'd like to ask a question, you may press star one on your telephone keypad now. To remove yourself from the queue, you may press star two. Again, that is star one if you'd like to ask a question, and we'll pause for just a moment to allow questioners to queue. Again, that is going to be star one if you'd like to ask a question. We'll take our first question from Zhenzhen Huang with JP Morgan. Please go ahead. Your line is open.

Speaker #1: To remove yourself from the queue, you may press star 2. Again, that is star 1 if you'd like to ask a question, and we'll pause for just a moment to allow questioners to queue.

Speaker #1: And again, that is going to be star 1 if you'd like to ask a question. And we'll take our first question from Susan Wong with JPMorgan.

Speaker #1: Please go ahead. Your line is open.

Sinjan Wang: Hi. Great, really great results here, guys. Nice to talk to you all. Just, Matt, you went through a lot with the ads, I won't ask you to go through it again. Just thinking about drafting off of the strong tax rebate season and some of the initiatives you guys have put in, as you're thinking around additions and how it's going to track for the rest of the year, has that changed at all? It does feel like you've gotten a little bit more momentum on the Instant Loans, and it's showing up already. How impactful might that be here as we recast our forecast for the rest of the year? Thanks.

Tien-tsin Huang: Hi. Great, really great results here, guys. Nice to talk to you all. Just, Matt, you went through a lot with the ads, I won't ask you to go through it again. Just thinking about drafting off of the strong tax rebate season and some of the initiatives you guys have put in, as you're thinking around additions and how it's going to track for the rest of the year, has that changed at all? It does feel like you've gotten a little bit more momentum on the Instant Loans, and it's showing up already. How impactful might that be here as we recast our forecast for the rest of the year? Thanks.

Speaker #3: Hi, great. Really great results here, guys. Nice to talk to you all. Just, Matt, you went through a lot with the ads, so I won't ask you to go through it again.

Speaker #3: But just thinking about drafting off of this strong tax rebate season, and some of the initiatives you guys have put in, as you're thinking around additions and how it's going to track for the rest of the year, has that changed at all?

Speaker #3: And it does feel like you've gotten a little bit more momentum on the instant loans, and that's showing up already. So, how impactful might that be here as we recast our forecast for the rest of the year?

Speaker #3: Thanks.

Speaker #4: Thanks, Junjun. Yeah, we're really pleased with the continued momentum that we're seeing on our actives growth. As I mentioned, our overall growth algorithm remains really strong.

Matt Newcomb: Thanks, Zhenzhen. Yeah, we're really pleased with the continued momentum that we're seeing on our actives growth. You know, as I mentioned, our overall growth algorithm remains really strong. Top-of-funnel remains very healthy. Our brand awareness continues to grow. You're seeing this result corroborated by third-party data. J.D. Power came out with their latest survey in Q1, where Chime again ranked number one by a large margin in terms of checking account openings. I think our product velocity is really helping this as well. New products like Chime Card and more recently, Chime Prime, are clearly resonating with members. All of this also supports our early engagement initiatives. We're continuing to see, you know, great progress that's led to shorter payback periods and LTV to CAC north of 8x.

Speaker #4: Top of funnel remains very healthy. Our brand awareness continues to grow. You're seeing this result corroborated by third-party data. JD Power came out with their latest survey in Q1, where Chime again ranked number one by a large margin in terms of checking account openings.

Speaker #4: I think our product velocity is really helping this as well. New products like Chime Card, and more recently Chime Prime, are clearly resonating with members.

Matt Newcomb: I think our product velocity is really helping this as well. New products like Chime Card and more recently, Chime Prime, are clearly resonating with members. All of this also supports our early engagement initiatives. We're continuing to see, you know, great progress that's led to shorter payback periods and LTV to CAC north of 8x.

Speaker #4: And all of this also supports our early engagement initiatives. We're continuing to see great progress. That's led to shorter payback periods and LTV to CAC north of 8x.

Matt Newcomb: That being said, we also saw some outsized seasonal tailwinds on actives growth in the quarter as well. As a reminder there, every Q1, we see seasonally high re-engagement related to tax refunds. In this quarter, there are really sort of 2 factors that magnified this. We saw a later start to tax season than in years prior, and that concentrated more of the re-engagement later in the quarter. As a reminder, we measure monthly actives as of the last month of the quarter. We also saw a really strong engagement with our embedded tax filing service this year.

Speaker #4: That being said, we also saw that some of the—we also saw some outsized seasonal tailwinds on actives growth in the quarter as well.

Speaker #4: And as a reminder, there—every Q1, we see seasonally high re-engagements related to tax refunds. And this quarter, there were really sort of two factors that magnified this.

Speaker #4: We saw a later start to tax season than in years prior, and that concentrated more of the re-engagement later in the quarter. As a reminder, we measure monthly actives as of the last month of the quarter.

Speaker #4: And then we also saw a really strong engagement with our embedded tax filing service this year. So, in sum, we're continuing to see broad momentum.

Matt Newcomb: In sum, you know, we're continuing to see broad momentum, but it is true some of the performance in terms of net adds in Q1 was related to seasonal factors. In aggregate, we're feeling very good about exceeding the 1.4 million annual target that we set out at the beginning of the year, and broadly speaking, to follow the similar seasonal trends that we've seen in years prior.

Speaker #4: But it is true some of the performance in terms of net adds in Q1 was related to seasonal factors. But in aggregate, we're feeling very good about exceeding the 1.4 million annual target that we set out at the beginning of the year.

Speaker #4: And broadly speaking, to follow the similar seasonal trends that we've seen in years prior. Maybe I'll pass it to Mark to touch on instant loans.

Chris Britt: Maybe I'll pass to Mark to touch on Instant Loans.

Mark Troughton: Hi, Tingen, it's Mark. I think on Instant Loans, we've been very pleased with the progress there. Just to give you an indication there, we originated $180 million in the quarter of Instant Loans. We expect that to accelerate going forward. Just to remind everybody, Chime Prime members automatically qualify for Instant Loans. We do expect some significant growth to come from the Instant Loan products. In addition to Chime Prime, we're continuing to offer longer duration loans to our repeat borrowers. Those borrowers operate at 50% better loss rates. The model that we've developed here over the last 12 to 18 months seems to be working well.

Speaker #5: Hi, Junjun. It's Mark. I think on instant loans, we've been very pleased with the progress there. And just to give you an indication, we originated $180 million in the quarter.

Speaker #5: Of instant loans. We expect that to accelerate going forward. Just to remind everybody, Chime Prime members automatically qualify for instant loans. So we do expect some significant growth to come from the instant loan product.

Mark Troughton: We do expect some significant growth to come from the Instant Loan products. In addition to Chime Prime, we're continuing to offer longer duration loans to our repeat borrowers. Those borrowers operate at 50% better loss rates. The model that we've developed here over the last 12 to 18 months seems to be working well.

Speaker #5: In addition to Chime Prime, we're continuing to offer longer-duration loans to our repeat borrowers. Those borrowers operate at 50% better loss rates.

Speaker #5: And so, the model that we've developed here over the last 12 to 18 months seems to be working well. In terms of what it can do overall, we're not giving sort of specific guidance, and I do think this will still be small compared to MyPay.

Mark Troughton: In terms of what it can do overall, we're not giving sort of specific guidance, and I do think this will still be small compared to MyPay. I think it's fair to say that we expect Instant Loans can become a material contributor to transaction profit over the coming quarters.

Speaker #5: But I think it's fair to say that we expect instant loans can become a material contributor to transaction profit over the coming quarters.

Speaker #3: All right. That's great stuff. Thank you, guys.

Sinjan Wang: All right. It's great stuff. Thank you, guys.

Tien-tsin Huang: All right. It's great stuff. Thank you, guys.

Speaker #1: Thank you. We'll take our next question from James Fawcett with Morgan Stanley. Please go ahead, your line is open.

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

Speaker #6: Thank you so much, and apologies for the background noise. A couple of quick questions here. You mentioned that the above $75,000 income cohort was kind of your fastest-growing segment.

James Faucette: Thank you so much. Apologies for the background noise. A couple of quick questions here is that you mentioned that the above $75,000 income cohort was kind of your fastest-growing segment. Can you just help us understand how you think about segmentation? As part of that, I thought your the comments around products attached were also very compelling. How do those members, as they come in at that higher income bracket, what is their attach rate or pacing compared to maybe the rest of the customer base as a whole?

Speaker #6: Can you just help us understand how you think about segmentation as part of that? I thought the comments around products attached were also very compelling.

Speaker #6: How is—how do those members, as they come in at that higher income bracket, what is their attach rate or pacing compared to maybe the rest of the customer base as a whole?

Chris Britt: Thanks, James. It's Chris here. Yeah, we're really excited about the progress that we're making across really a wide range of segments that we serve. We reported again, I think this is the Q3 in a row where we've announced that specifically the 75K plus segment of income is the fastest-growing for us. We really have a mainstream service here that appeals to consumers across income segments. I think, you know, we not only see it in our own data, but we also see it in the J.D. Power data. You know, the external data that said that, you know, we open up the most checking accounts. When you double-click into those reports, they actually break out by income levels, and you see Chime also near the top of the list for higher-earning demos as well.

Speaker #4: Thanks, James. It's Chris here. Yeah, we're really excited about the progress that we're making across, really, a wide range of segments that we serve.

Speaker #4: We reported, again—I think this is the third quarter in a row—where we've announced that specifically the $75K-plus segment of income is the fastest growing for us.

Speaker #4: We really have a mainstream service here that appeals to consumers across income segments. And I think we not only see it in our own data, but we also see it in the JD Power data, the external data that said that we open up the most checking accounts.

Chris Britt: I think, you know, we not only see it in our own data, but we also see it in the J.D. Power data. You know, the external data that said that, you know, we open up the most checking accounts. When you double-click into those reports, they actually break out by income levels, and you see Chime also near the top of the list for higher-earning demos as well.

Speaker #4: When you double-click into those reports, they actually break out by income levels. And you see Chime also near the top of the list for higher-earning demos as well.

Speaker #4: So, when we look at these sort of higher-income demos specifically, we see retention rates that are similar to, or right at the same level as, the rest of the portfolio.

Chris Britt: You know, when we look at these sort of higher income demos specifically, we see retention rates that are similar to, or right at the same level as the rest of the portfolio. Just as a reminder, 90-plus% retention rates after the first year. We see very high levels of product attached that are similar to all of our cohorts as they continue to age. Just, you know, a reminder on that, we have some information in the supplemental that shows how our cohorts continue to drive outsized RPAM as they age. The more tenured cohorts are doing over $400 of RPAM. We see that members of our member base that attach 6 or more products actually generate $500 or more of RPAM.

Speaker #4: So just as a reminder, 90-plus percent retention rates after the first year. And we see very high levels of product attach that are similar to all of our cohorts as they continue to age.

Speaker #4: And just a reminder on that, we have some information in the supplemental that shows how our cohorts continue to drive outsized RPAM as they age.

Chris Britt: Just, you know, a reminder on that, we have some information in the supplemental that shows how our cohorts continue to drive outsized RPAM as they age. The more tenured cohorts are doing over $400 of RPAM. We see that members of our member base that attach 6 or more products actually generate $500 or more of RPAM.

Speaker #4: The more tenured cohorts are doing over $400 of RPAM, and we see that members of our member base that attach six or more products actually generate $500 or more of RPAM.

Speaker #4: So, obviously, higher-earning customers have the ability to spend more, which is the key driver of our economic model. But it also gives us an ability to offer a wider range of products, including lending and credit products.

Chris Britt: You know, obviously a higher earning customer has the ability to spend more, which is the key driver of our economic model, but it also gives us an ability to offer a wider range of products, including lending and credit products. Now with our Chime Prime product, which gives you 5% in a category of your choice and 3.75% APY, this is extremely powerful and something that is broadly compelling. I think we now have even more reasons for our members to stick with us for life. I think that's particularly relevant to these higher-earning segments as well.

Speaker #4: And now, with our Chime Prime product, which gives you 5% in a category of your choice and 3.75% APY, this is extremely powerful and something that is broadly compelling. So, I think we now have even more reasons for our members to stick with us for life.

Speaker #4: And I think that's particularly relevant to these higher-earning segments as well.

James Faucette: That's great to hear. I wanted to follow up on one of the other comments you made in terms of accelerating product development and the benefits that you're getting from some of the AI development tools, et cetera. How should we think about kind of what that accelerated product roadmap can look like? I mean, really I'm trying to think about it from a business and financial standpoint. Does this help accelerate? Is it more so that it improves your ability to attract members, et cetera? Should we think about it more as accelerating incremental products for your members and in that instead of really accelerating member growth, per se, that it's really about finding incremental ways to serve existing members, et cetera? Thanks.

Speaker #5: That's great to hear. I wanted to follow up on one of the other comments we made, in terms of accelerating product development and the benefits that you're getting from some of the AI development tools, etc.

Speaker #5: How should we think about what that accelerated product roadmap can look like? I mean, really, I'm trying to think about it from a business and financial standpoint.

James Faucette: I mean, really I'm trying to think about it from a business and financial standpoint. Does this help accelerate? Is it more so that it improves your ability to attract members, et cetera? Should we think about it more as accelerating incremental products for your members and in that instead of really accelerating member growth, per se, that it's really about finding incremental ways to serve existing members, et cetera? Thanks.

Speaker #5: Does this help accelerate? Is it more so that it improves your ability to attract members, etc.? Or should we think about it more as accelerating incremental products for your members and you, instead of really accelerating member growth per se—that it's really about finding incremental ways to serve existing members?

Speaker #5: Etc. Thanks.

Speaker #4: Well, I think we really see it as a force multiplier for us. It starts with the way that we actually get work done around here.

Chris Britt: Well, I think we really see it as a force multiplier for us. It starts with the way that we actually get work done around here. We talked in our intro remarks about Archimedes, which is our software factory that allows our developers to basically run what is essentially a multi-agent development pipeline, so we can build products much faster from idea into production with AI handling the vast majority of that work. We're gonna be able to get more products into the hands of our members even faster. We've got a really exciting roadmap for the rest of the year that we've outlined with investing and joint accounts and custodial accounts.

Speaker #4: We talked in our intro remarks about our committees, which is our software factory that allows our developers to basically run what is essentially a multi-agent development pipeline.

Speaker #4: So we can build products much faster—from idea into production—with AI handling the vast majority of that work. So we're going to be able to get more products into the hands of our members even faster.

Chris Britt: We're gonna be able to get more products into the hands of our members even faster. We've got a really exciting roadmap for the rest of the year that we've outlined with investing and joint accounts and custodial accounts.

Speaker #4: We've got a really exciting roadmap for the rest of the year that we've outlined, with investing and joint accounts and custodial accounts. And the thing that I think we're most excited about is the progress that we're making on our actual AI co-pilot called Jade, which is going to allow our members to not just get financial advice and tips, but also, given our unique position of having and enjoying this primary account relationship, we can give advice and then, with their permission, take action on behalf of our members to help them make financial progress.

Chris Britt: The thing that I think, you know, most excited about is the progress that we're making on our actual AI copilot called Jade, which is going to allow our members to not just get financial advice and tips, but also to, given our unique position of having enjoying this primary account relationship, we can give advice and then allow, with their permission, to take action on the behalf of our members to help them make financial progress. You should expect to see exciting developments on that front, and I think it's going to give us one more reason for consumers to come to Chime, use us as a primary bank account.

Speaker #4: So you should expect to see exciting developments on that front. And I think it's going to give us one more reason for consumers to come to Chime, use it as a primary bank account, and I think over time you're going to see that this technology advantage that we have relative to incumbents is going to only expand in the coming quarters as we deploy these AI tools both in development and in the consumer product itself.

Chris Britt: I think over time, you're gonna see that this technology advantage that we have relative to incumbents is going to only expand in the coming quarters as we deploy these AI tools, both in development and in the consumer product itself.

James Faucette: That's great color and commentary there, Chris. Thank you so much.

Speaker #5: That's great color and commentary there, Chris. Thank you so much.

Speaker #4: Sure. Thank you.

Chris Britt: Sure. Thank you.

Speaker #1: Thank you. We'll take our next question from Adam Frisch with Evercore. Please go ahead. Your line is open.

Operator: Thank you. We'll take our next question from Adam Frisch with Evercore. Please go ahead.

Speaker #6: Thanks, guys. Great results here. Two questions for you. One, the fiscal year guide was increased more than the one Q1, which is great to see.

Adam Frisch: Thanks, guys. Great results here. Two questions for you. One, the fiscal year guide was increased more than the Q1, which is great to see. The business momentum is pretty obvious. Now, was the second quarter guide more conservatism given the seasonality there, and not a read on decelerated momentum in the business or anything like that into the H2? My second question was, for Chime Prime, what are the early adoption eligibility or activation rates? Anything you can tell us about if you're seeing kind of lift and direct deposit conversion and all that kind of good stuff that would go along with that program? Thanks.

Speaker #6: So the business momentum is pretty obvious. Matt, was the second quarter guide more conservatism given the seasonality there, and not a read on decelerating momentum in the business or anything like that into the second half?

Speaker #6: And my second question was for Chime Prime: what are the early adoption eligibility or activation rates? Anything you can tell us about if you're seeing kind of a lift in direct deposit conversion and all that kind of good stuff that would go along with that program?

Speaker #6: Thanks.

Speaker #4: Thanks, Adam. Matt here. I'll talk first about the guide, and then I'll hand it over to Chris to talk a little bit about our early results on Chime Prime.

Matt Newcomb: Thanks, Adam. Matt here. I'll talk first about the guide, then I'll hand it over to Chris to talk a little bit about our early results on Chime Prime. As you mentioned, we're really pre-pleased with really the broad-based business strength we're seeing and the momentum heading into the rest of the year. Just as you said, we're raising our expectations on both revenue and adjusted EBITDA for the full year. As it relates to Q2 specifically, a couple points to keep in mind. First, on the top line, we do face a more difficult year-over-year growth comparable in Q2. In the year-ago period, we saw a 500 basis point revenue growth acceleration from Q1, which is primarily due to how we were scaling MyPay at the time.

Speaker #4: As you mentioned, we're really pleased with the broad-based business strength we're seeing and the momentum heading into the rest of the year. And just as you said, we're raising our expectations on both revenue and adjusted EBITDA for the full year.

Speaker #4: As it relates to Q2 specifically, a couple of points to keep in mind. First, on the top line, we do face a more difficult year-over-year growth comparable in Q2.

Matt Newcomb: As it relates to Q2 specifically, a couple points to keep in mind. First, on the top line, we do face a more difficult year-over-year growth comparable in Q2. In the year-ago period, we saw a 500 basis point revenue growth acceleration from Q1, which is primarily due to how we were scaling MyPay at the time.

Speaker #4: In the year-ago period, we saw a 500-basis-point revenue growth acceleration from Q1, which is primarily due to how we were scaling MyPay at the time.

Speaker #4: So, if you were to actually look at Q1 and Q2 on a two-year stacked basis, what you'd see is that revenue growth in Q2 is very comparable to Q1.

Matt Newcomb: If you were to actually look at Q1 and Q2 on a two-year stack basis, what you'd see is that revenue growth in Q2 is very comparable to Q1. On top of that, with the launch of Chime Prime, that will also lead to some higher rewards costs beginning in Q2. Those are two factors as it relates to top line. On bottom line, two things to point out. On a sequential basis, we do expect to see our normal step down from Q1 seasonally high transaction margin. We mentioned in our prepared remarks that we expect transaction margin to land in the 70% to 72% zone for the remaining quarters of the year. Also, as we telegraphed last quarter, we expect to invest behind our Chime Prime launch in Q2, both in sales and marketing and member support.

Speaker #4: On top of that, with the launch of Chime Prime, that will also lead to some higher rewards costs beginning in Q2. So those are two factors as it relates to the top line.

Speaker #4: On the bottom line, two things to point out. On a sequential basis, we do expect to see our normal step-down from Q1's seasonally high transaction margin. We mentioned in our prepared remarks that we expect transaction margin to land in the 70 to 72 percent zone for the remaining quarters of the year.

Matt Newcomb: On a sequential basis, we do expect to see our normal step down from Q1 seasonally high transaction margin. We mentioned in our prepared remarks that we expect transaction margin to land in the 70% to 72% zone for the remaining quarters of the year. Also, as we telegraphed last quarter, we expect to invest behind our Chime Prime launch in Q2, both in sales and marketing and member support.

Speaker #4: And also, as we telegraphed last quarter, we expect to invest behind our Chime Prime launch in Q2, both in sales and marketing and member support.

Speaker #4: On an incremental basis, we expect adjusted EBITDA margins in the low 50s in Q2. So from a phasing perspective, this is all in line with our plans.

Matt Newcomb: On an incremental basis, we expect adjusted EBITDA margins in the low 50s in Q2. From a phasing perspective, this is all, you know, in line with our plans. Again, to reiterate, we're raising our expectations for the full year on both revenue and adjusted EBITDA, and on the full year. Just as you said, not only are we flowing through our outperformance from Q1, we're raising our expectations for the remainder of the year as well.

Speaker #4: And again, to reiterate, we're raising our expectations for the full year on both revenue and adjusted EBITDA. And on the full year, just as you said, not only are we flowing through our outperformance from Q1, we're raising our expectations for the remainder of the year as well.

Speaker #4: Maybe I'll just talk about Chime Prime results—thanks for the question on that. It's really early days, but we're feeling really good. Just as a reminder,

Chris Britt: Maybe I'll just talk about Chime Prime results. Thanks for the question on that. It's really early days, but we're feeling really good. Just as a reminder, we launched Chime Prime to the public on 2 April. A bit early to get a read, but we are seeing already that it has demonstrated to be effective in driving higher levels of direct deposits. That's a plus, obviously, because as a reminder, you have to do $3,000 of direct deposit to get access to those benefits, including that hefty cashback on Prime of 5%. The other thing that we're excited about is just looking at the retention rates among people who qualify for Prime.

Speaker #4: We launched Chime Prime to the public on April 2nd. So, it's a bit early to get a read, but we are already seeing that it is demonstrating to be effective in driving higher levels of direct deposits.

Speaker #4: So that's a plus, obviously. Because, as a reminder, you have to do $3,000 of direct deposit to get access to those benefits, including that hefty cash back on Prime of 5%.

Speaker #4: The other thing that we're excited about is just looking at the retention rates among people who qualify for Prime. We're already seeing that in the first month or so here, it does appear to drive higher levels of direct deposit retention.

Chris Britt: We're already seeing that in the first month or so here, that it does appear to drive higher levels of direct deposit retention. At the same time, we're seeing overall continued increase in the adoption of Chime Card. In other words, Prime members who qualify for Prime are more likely to be adopting Chime Card. They're taking it up at a higher rate, which is a great tailwind for our mix of payments volume, which is increasingly shifting towards credit. These are all, you know, really, really great tailwinds for us. We've got lots of exciting marketing campaigns and product initiatives this over the next few months.

Speaker #4: And at the same time, we're seeing an overall continued increase in the adoption of Chime Card. In other words, Prime members who qualify for Prime are more likely to be adopting Chime Card.

Speaker #4: They’re taking it up at a higher rate, which is a great tailwind for our mix of payments volume, which is increasingly shifting towards credit.

Speaker #4: So these are all really, really great tailwinds for us. We've got lots of exciting marketing and campaign and product initiatives over the next few months.

Speaker #4: In fact, you'll see tomorrow during the NBA game, you'll see our first spot with our newest brand ambassador, John Cena—America's Champ—who's going to talk about all the great benefits of Chime Prime and is very relevant to the consumers we serve.

Chris Britt: In fact, you'll see tomorrow, during the NBA game, you'll see our first spot with our newest brand ambassador, John Cena, America's champ, who's gonna talk about all the great benefits of Chime Prime and is very relevant to the consumers we serve. Yeah, feeling like great progress on that front and continued great tailwinds on this mix of spend towards credit.

Speaker #4: So yeah, feeling like great progress on that front, and continued great tailwinds on this mix of spend towards credit.

Speaker #5: Great. Thanks, guys.

Adam Frisch: Great. Thanks, guys.

Speaker #4: Thanks, Adam.

Chris Britt: Thanks, Adam.

Speaker #1: Thank you. We'll take our next question from Will Nance with Goldman Sachs. Please go ahead. Your line is open.

Operator: Thank you. We will take our next question from Will Nance with Goldman Sachs. Please go ahead. Your line is open.

Speaker #7: Yeah, thanks for taking the question. Maybe I could just follow up a little bit on some of the commentary around Chime Prime, and I guess specifically on unit economics. You're clearly embedding some incremental customer acquisition costs in the second quarter.

Will Nance: Yeah, thanks for taking the question. Maybe I would just follow up a little bit on some of the commentary around Chime Prime, and I guess specifically on unit economics. You're clearly embedding some incremental customer acquisition costs. In the second quarter, how are you thinking about the impact of that push as it relates to net adds specifically, and particularly in Q2? I mean, is there any expectation of an offset to some of the seasonal weakness that you alluded to earlier in Q2? Just more broadly, what are you looking at to gauge success? Maybe if I could just sneak in a numerical question for Chime Prime. I think you previously talked about like a $175 net interchange for the new card.

Speaker #7: How are you thinking about the impact of that push as it relates to net ads specifically? And particularly in Q2, I mean, is there any expectation of an offset to some of the seasonal weakness that you alluded to earlier in the second quarter?

Speaker #7: And just more broadly, what are you looking at to gauge success? And then, maybe if I could just sneak in a numerical question for Chime Prime.

Will Nance: Maybe if I could just sneak in a numerical question for Chime Prime. I think you previously talked about like a $175 net interchange for the new card. Taking into account the higher rewards rate, you know, is something in like the 130 to 140 range on the new card, is that the right way to think about it? Just correct me if I'm wrong there.

Speaker #7: I think you previously talked about a 175 net interchange for the new card. Taking into account the higher rewards rate, is something in the 130 to 140 range on the new card?

Will Nance: Taking into account the higher rewards rate, you know, is something in like the 130 to 140 range on the new card, is that the right way to think about it? Just correct me if I'm wrong there.

Speaker #7: Is that the right way to think about it? Just correct me if I'm wrong there.

Speaker #4: Thanks for the question as well. This is Matt. I'll chime in on both of those. So, yeah, as we discussed, we're really excited about this launch.

Matt Newcomb: Thanks for the questions, Will. This is Matt. I'll chime in on both of those. Yeah, it, as we discussed, we're really excited about this launch. We are ramping up a bit of investment behind the launch. That's gonna be really across a wide range of marketing efforts. That's certainly part of our plans and OpEx phasing for the year. As it relates specifically to, you know, the cadence of net adds over the quarter, I think, you know, the best baseline expectation is to take a look at the cadence of seasonal net new adds that we've seen over the last few years.

Speaker #4: We are ramping up a bit of investment behind the launch that's going to be really across a wide range of marketing efforts. And so that's certainly part of our plans and OPEX phasing for the year.

Speaker #4: As it relates specifically to the cadence of net adds over the quarter, I think the best baseline expectation is to take a look at the cadence of seasonal net new adds that we've seen over the last few years.

Matt Newcomb: Again, Q1 being the outsized one, Q2 being the seasonally lower net adds quarter, whereas Q3 and Q4 are in the middle. I think that is the right cadence to expect for us. As it relates to take rates, we've discussed in the past how Chime Card earns around 175 basis points. We've now launched both Chime Prime as well as a new 2% category of your choice cashback offer on Chime Plus. That's an improvement from the previous Plus offering. The way to think about take rates is on our Plus offering, for take rates to be in that 175 basis point zone, whereas Chime Prime will be slightly below that.

Speaker #4: Again, Q1 being the outsized one, Q2 being the seasonally lower net ads quarter, whereas Q3 and Q4 are in the middle. So I think that is the right cadence to expect for us.

Speaker #4: As it relates to take rates, we've discussed in the past how, yeah, Chime Card earns around 175 basis points. We've now launched both Chime Prime as well as a new 2% category-of-your-choice cashback offer on Chime Plus.

Speaker #4: That's an improvement from the previous Plus offering. The way to think about take rates is, on our Plus offering, for take rates to be in that 175 basis point zone, whereas Chime Prime will be slightly below that.

Speaker #4: Not as low as what you alluded to, but slightly below those ranges. Those are the ranges we see today. I'll have to caveat that these will shift a bit and fluctuate a bit over time.

Matt Newcomb: Not as low as what you alluded to, but slightly below those ranges. Those are the ranges we see today. I'll have to caveat that these will shift a bit and fluctuate a bit over time, as members choose the categories that they choose to spend in, but that's sort of the appropriate range to think about for us today.

Speaker #4: As members choose the categories that they choose to spend in. But that's sort of the appropriate range to think about for us today.

Speaker #7: No, that's awesome. Glad I asked on the Chime Prime side. And then, just maybe sticking with the take rate commentary, I was wondering if you could help pick apart some of the sequential moves in take rates from Q4 to Q1.

Will Nance: No, that's awesome. Glad I asked on the Chime Prime side. Just, maybe sticking with the take rate commentary, I was wondering if you could help pick apart some of the sequential moves in take rate from Q4 to Q1. I know there's been, I mean, you just alluded to some of the movements in the rewards offerings, but I also know there's some seasonal factors that impact the take rate in Q1. If you could just unpack that and, you know, specifically in the context of credit mix going up, you know, several points sequentially from Q4 to Q1. You know, what are some of the offsets that drove the take rate this quarter? Thank you.

Speaker #7: I know there’s been—I mean, you just alluded to some of the movements in the rewards offerings. But I also know there are some seasonal factors that impact the take rate in the first quarter.

Speaker #7: So if you could just unpack that, and specifically in the context of credit mix going up several points sequentially from Q4 to Q1, what are some of the offsets that drove the take rate this quarter?

Will Nance: If you could just unpack that and, you know, specifically in the context of credit mix going up, you know, several points sequentially from Q4 to Q1. You know, what are some of the offsets that drove the take rate this quarter? Thank you.

Speaker #7: Thank you.

Speaker #4: Yeah, great question. There are really sort of three factors to keep in mind as it relates to take rates specifically in Q1. We've talked about one already, which is, of course, credit mix.

Matt Newcomb: Great question. There's really sort of three factors to keep in mind as it relates to take rates, you know, specifically in Q1. We've talked about one already, which is, of course, credit mix and how the continued adoption of Chime Card is continuing to drive higher credit mix. In Q1, that landed right around 25% of the total spend, up from about 16%, well, before we launched Chime Card in September. On that front, what I'll say is we're certainly continuing to see momentum both on new members but also existing members. New members coming into Chime, nearly 60% of them are spending with Chime Card, and among those, they're spending about 70% of their Chime spend on the card.

Speaker #4: And how the continued adoption of Chime Card is continuing to drive higher credit mix. In Q1, that landed right around 25% of total spend.

Speaker #4: Up from about 16% before we launched Chime Card, in September. And on that front, what I'll say is we're certainly continuing to see momentum both on new members, but also existing members.

Matt Newcomb: On that front, what I'll say is we're certainly continuing to see momentum both on new members but also existing members. New members coming into Chime, nearly 60% of them are spending with Chime Card, and among those, they're spending about 70% of their Chime spend on the card.

Speaker #4: New members coming into Chime—nearly 60% of them are spending with the Chime Card. And among those, they're spending about 70% of their Chime spend on the card.

Matt Newcomb: For existing members, we're seeing that those who have adopted Chime Card are using it for an increasing portion of their Chime spend. Good momentum on that front. Again, that's helping to drive take rates up in the quarter. The second thing to point out, as you did, Will, is seasonality. Interchange rates are another metric in our business that are affected by tax refund-related seasonality in Q1. More specifically, because outsized deposit volumes from tax refunds result in purchase volume with higher ticket prices, what you see is interchange rates, because there's both a variable and a fixed component, are actually a bit lower each Q1. Again, that's a very typical seasonal pattern. We saw that again this year.

Speaker #4: And for existing members, we're seeing that those who have adopted Chime Card are using it for an increasing portion of their Chime spend. So, good momentum on that front.

Speaker #4: And again, that's helping to drive take rates up in the quarter. The second thing to point out, as you did, Will, is seasonality. So interchange rates are another metric in our business that are affected by tax refund-related seasonality in Q1.

Matt Newcomb: The second thing to point out, as you did, Will, is seasonality. Interchange rates are another metric in our business that are affected by tax refund-related seasonality in Q1. More specifically, because outsized deposit volumes from tax refunds result in purchase volume with higher ticket prices, what you see is interchange rates, because there's both a variable and a fixed component, are actually a bit lower each Q1. Again, that's a very typical seasonal pattern. We saw that again this year. You know, as I would encourage you to do with the rest of our business, you really got to look at things on a year-over-year basis.

Speaker #4: More specifically, because outsized deposit volumes from tax refunds result in purchase volume with higher ticket prices, what you see is interchange rates—because there's both a variable and a fixed component—are actually a bit lower.

Speaker #4: Each Q1. Again, that's a very typical seasonal pattern. We saw that again this year. So, as I would encourage you to do with the rest of our business, you really have to look at things on a year-over-year basis.

Matt Newcomb: You know, as I would encourage you to do with the rest of our business, you really got to look at things on a year-over-year basis. Lastly, as we shared in our prepared remarks, we are doing more to experiment with member rewards to drive both new member growth and retention. That includes not just the cashback rewards on Chime Card, which is, you know, clearly doing well and resonating with members, it's also including initiatives like limited time cashback and referral offers, introductory bonuses, and other initiatives. These types of member rewards are accounted for as contra revenue, which makes the calculated net take rate of payments revenue on purchase volume look a touch lower. That, of course, is all included in our transaction profit payback period.

Speaker #4: And then lastly, as we shared in our prepared remarks, we are doing more to experiment with member rewards to drive both new member growth and retention.

Matt Newcomb: Lastly, as we shared in our prepared remarks, we are doing more to experiment with member rewards to drive both new member growth and retention. That includes not just the cashback rewards on Chime Card, which is, you know, clearly doing well and resonating with members, it's also including initiatives like limited time cashback and referral offers, introductory bonuses, and other initiatives. These types of member rewards are accounted for as contra revenue, which makes the calculated net take rate of payments revenue on purchase volume look a touch lower.

Speaker #4: That includes not just the cashback rewards on the Chime Card, which is clearly doing well and resonating with members, but it's also including initiatives like limited-time cashback and referral offers, introductory bonuses, and other initiatives.

Speaker #4: These types of member rewards are accounted for as contra-revenue, which makes the calculated net take rate of payments revenue on purchase volume look a touch lower.

Speaker #4: That, of course, is all included in our transaction profit payback period. In the scheme of things, it's fairly small amounts. But we are excited about the potential.

Matt Newcomb: That, of course, is all included in our transaction profit payback period. In the scheme of things, it's fairly small amounts, but we are excited about the potential. That's one additional factor to keep in mind as it relates to take rates.

Matt Newcomb: In the scheme of things, it's fairly small amounts, but we are excited about the potential. That's one additional factor to keep in mind as it relates to take rates.

Speaker #4: So that's one additional factor to keep in mind as it relates to take rates.

Speaker #1: Thank you. We'll take our next question from Andrew Jeffrey with William Blair.

Operator: Thank you. We'll take our next question from Andrew Jeffrey with William Blair.

Andrew Jeffrey: Thank you. Good afternoon. I wanted to ask a little bit about learnings from variable pricing in MyPay. If that's sort of a lever you can pull to drive monetization, obviously the performance there has been terrific with the tenfold increase in transaction profit contribution. I, you know, I wonder if you could just elaborate a little bit on what you've seen and what the outlook is for those initiatives.

Speaker #5: Thank you. Good afternoon. I wanted to ask a little bit about learnings from variable pricing in MyPay, and if that's sort of a lever you can pull to drive monetization. Obviously, the performance there has been terrific, with the tenfold increase in transaction profit contribution.

Speaker #5: But I wonder if you could just elaborate a little bit on what you've seen and what the outlook is for those initiatives.

Mark Troughton: Yeah, sure. I'll pick that one up. Look, okay, at a high level, we've been very pleased with the MyPay performance. $40 billion business now, 62% transaction profit margins and still operating at a 1% loss rate here inside in a product that's really been out for less than 2 years. From a pricing perspective, if you remember, as Chris outlined in the early remarks, the real reason we did this was so that we were limited by a fixed fee model. The variable fee model enables us to actually give members access to greater MyPay limits earlier in the pay cycle. That effectively, to your point, enables us to actually accelerate advancing more MyPay to members.

Speaker #4: Yeah, sure. I'll pick that one up. Let me look at a high level. We've been very pleased with the MyPay performance. It's a $400 billion business now, 62% transaction profit margins, and still operating at a 1% loss rate here inside a product that really has been out for less than two years.

Speaker #4: So from a pricing perspective, if you remember, as Chris outlined in the early remarks, the real reason we did this was that we were limited by a fixed fee model.

Mark Troughton: The variable fee model enables us to actually give members access to greater MyPay limits earlier in the pay cycle. That effectively, to your point, enables us to actually accelerate advancing more MyPay to members.

Speaker #4: The variable fee model enables us to actually give members access to greater MyPay limits earlier in the pay cycle. And that effectively, to your point, enables us to actually accelerate MyPay to members.

Speaker #4: Now, having said that, we obviously want to make sure we're advancing this to people who can actually repay us in this situation. What we're not wanting to do here is to create a debt burden that our members cannot handle.

Mark Troughton: Having said that, you know, we obviously want to make sure we're advancing this to people who can actually repay us in this situation. What we're not wanting to do here is to create a debt burden that our members cannot handle. That's been an important part of developing our underwriting model. You know, I think as you look at the yields here, you guys will probably have noticed that, if you look year over year, our yield on MyPay increased by 35%. If you looked at Q1 relative to Q3 last year, it increased about 20%. That was really driven by the price change that came in starting in Q4 and then finishing in Q1.

Speaker #4: So that's been an important part of developing our underwriting model. And I think as you look at the yields here, you guys will probably have noticed that if you looked year over year, our yield on MyPay increased about 35%.

Speaker #4: And if you looked at Q1 relative to Q3 last year, it increased about 20%. And that was really driven by the price change that came in starting in Q4 and then finishing in Q1.

Mark Troughton: Those were key contributors to that 10x year-over-year growth in the MyPay profit. I think it's also important to continue to bear in mind that even at our 2.6% or 2.7% MyPay yield, we are half the cost of our nearest competitors in the space. That continues to be one of the reasons why we bring more people into our platform and continue to attract and retain members year after year after year. I think we feel really good that we now have the pricing structure and the underwriting model in place to start to expand MyPay access to those who can handle it.

Speaker #4: And those were key contributors to that. So, that 10x year-over-year growth in the MyPay profit. I think it's also important to continue to bear in mind that even at our 2.6% or 2.7% MyPay yield, we are half the cost of our nearest competitors in the space.

Speaker #4: And that continues to be one of the reasons why we bring more people into our profile and continue to attract and retain members year after year after year.

Speaker #4: So I think we feel really good that we now have the pricing structure and the underwriting model in place to start to expand MyPay access to those who can handle it.

Speaker #3: I appreciate that, Mark. Thank you. And then, as a follow-up, one of the things that I hear sort of repeatedly from investors is about the purchase volume per MAU KPI, which seems to me to kind of miss the point.

Andrew Jeffrey: I appreciate that, Mark. Thank you. As a follow-up, one of the things that I hear sort of repeatedly from investors is about the purchase volume per MAU KPI, which seems to me to kind of miss the point. Nonetheless, investors seem to care about it, and I know there were some seasonal factors influencing Q1. Can you talk a little bit about your expectations for that KPI and whether it's, you know, something that should maybe get as much attention or not get as much attention as it seems to?

Speaker #3: Nonetheless, investors seem to care about it. And I know there were some seasonal factors influencing one quarter. Can you talk a little bit about your expectations for that KPI, and whether it's something that should maybe get as much attention or not get as much attention as it seems to?

Speaker #4: I'll pick up with that one. Thanks, Andrew. So, at the highest level, what I would say first is, as we've shared the last few quarters, we're seeing very consistent overall trends in purchase volumes.

Matt Newcomb: I'll pick up with that one. Thanks, Andrew. You know, at the highest level, what I would say first is, as we've shared the last few quarters, we're seeing very consistent overall trends in purchase volumes. I would say that really is one of the key advantages of our business model and our focus on earning primary account relationships. Our spend is highly concentrated in non-discretionary everyday categories, that's been, you know, that's a type of spend that's very resilient across business cycles. If you take a look at our cohorts, our tenured cohorts, we're seeing very consistent growth in spending. That's true across both discretionary and non-discretionary categories. It's true across income groups. At the same time, we're seeing account balances increase year over year.

Speaker #4: And I would say that really is one of the key advantages of our business model and our focus on earning primary account relationships. Our spend is highly concentrated in nondiscretionary, everyday categories.

Matt Newcomb: Our spend is highly concentrated in non-discretionary everyday categories, that's been, you know, that's a type of spend that's very resilient across business cycles. If you take a look at our cohorts, our tenured cohorts, we're seeing very consistent growth in spending. That's true across both discretionary and non-discretionary categories. It's true across income groups. At the same time, we're seeing account balances increase year over year.

Speaker #4: And that's been the type of spend that's very resilient across business cycles. If you take a look at our cohorts—our tenured cohorts—we're seeing very consistent growth in spending. That's true across both discretionary and nondiscretionary categories.

Speaker #4: It's true across income groups. At the same time, we're seeing account balances increase year over year. Again, this is a healthy consumer, willing and able to spend.

Matt Newcomb: This is a healthy consumer willing and able to spend. That's translated into pretty consistent pace of payments in OIT revenue growth. That grew 19% year over year in Q1. As it relates to the per active metric specifically, you know, as we shared previously, the reason that purchase volume plus OIT volume per active is down on a year over year basis is largely the result of these early engagement initiatives that have been very successful for us. They've helped us engage new members we wouldn't have otherwise engaged. This has strengthened our unit economics. That being said, it has had the effect of diluting the headline purchase volume per active metric since these initiatives have driven faster growth of these newly engaged actives who aren't yet spending as much on Chime. It's creating a large denominator.

Speaker #4: And that's translated into a pretty consistent pace of payments and OIT revenue growth. That grew 19% year over year in Q1. As it relates to the per-active metric specifically, as we've shared previously, the reason that purchase volume plus OIT volume per active is down on a year-over-year basis is largely the result of these early engagement initiatives that have been very successful for us.

Speaker #4: They've helped us engage new members we wouldn't have otherwise engaged. This has strengthened our unit economics. That being said, it has had the effect of diluting the headline purchase volume per active metric, since these initiatives have driven faster growth of these newly engaged actives who aren't yet spending as much on Chime.

Matt Newcomb: They've helped us engage new members we wouldn't have otherwise engaged. This has strengthened our unit economics. That being said, it has had the effect of diluting the headline purchase volume per active metric since these initiatives have driven faster growth of these newly engaged actives who aren't yet spending as much on Chime. It's creating a large denominator.

Speaker #4: It's creating a larger denominator. We do expect these trends to start to normalize in the back half of this year, in particular as we start to lap last year's launch of these early engagement initiatives.

Matt Newcomb: We do expect these trends to start to normalize in H2 of this year, in particular as we start to lap last year's launch of these early engagement initiatives. You know, this is just to kind of hit your question head on, this is really just a phenomenon of these successful early engagement initiatives. It's not a reflection of any sort of concerning underlying spend trends. On that front, we see a lot of resilience and consistent trends.

Speaker #4: So this is just to kind of hit your question head-on. This is really just a phenomenon of these successful early engagement initiatives. It's not a reflection of any sort of concerning underlying spend trends on that front.

Speaker #4: We see a lot of resilience and consistent trends.

Speaker #1: Thank you. We'll take our next question from Timothy Chioda with UBS. Please go ahead.

Operator: Thank you. We'll take our next question from Timothy Chiodo with UBS. Please go ahead.

Timothy Chiodo: Great. Thanks a lot. On Chime Prime, so I know the overall paybacks are very attractive, five to six quarters. The LTV CAC is eight or higher. Those are great numbers. For Chime Prime, I heard you say obviously a much higher RPAM, and I also heard that some of the early data suggests that the retention is even higher. Absent a meaningfully higher CAC, that would suggest really, really attractive LTV to CACs payback. I was wondering if you could talk a little bit about that CAC and just how much higher it might be for these clearly more attractive customers and cognizant that clearly that higher CAC is well worth it in the context of the RPAM and the retention. Thanks.

Speaker #5: Great, thanks a lot. So, on Chime Prime, I know the overall paybacks are very attractive—five to six quarters. The LTV tag is 8 or higher.

Speaker #5: Those are great numbers. For Chime Prime, I heard you say, obviously, a much higher RPAM. And I also heard that some of the early data suggests that the retention is even higher.

Speaker #5: So, absent a meaningfully higher CAC, I would suggest really, really attractive LTV to CAC payback. So, I always think—I was wondering if you could talk a little bit about that CAC and just how much higher it might be for these clearly more attractive customers, and cognizant that clearly that higher CAC is well worth it in the context of the RPAM and the retention.

Timothy Chiodo: Absent a meaningfully higher CAC, that would suggest really, really attractive LTV to CACs payback. I was wondering if you could talk a little bit about that CAC and just how much higher it might be for these clearly more attractive customers and cognizant that clearly that higher CAC is well worth it in the context of the RPAM and the retention. Thanks.

Speaker #5: Thanks.

Speaker #4: Thanks, Tim. It's Matt here again. We're really excited about Chime Prime. As Chris mentioned, there are early signs of a lot of potential benefits across the business.

Matt Newcomb: Thanks, Tim. It's Matt here again. We're really excited about Chime Prime. As Chris mentioned, early signs of a lot of potential benefits across the business. That's true across retention, that's true across Chime Card attach, that's true across direct deposit conversion, and attach. Yeah, we're very excited about the potential there. That being said, it's very early days here. We've just started to roll this out. It is too early to give you a sense specifically on, you know, sort of what the unit economic equation specific to Chime Prime looks like. Again, we think this is a great add to our overall product mix and value props. We're excited to keep you posted in the coming quarters.

Speaker #4: That's true across retention. That's true across Chime Card attach. That's true across direct deposit conversion and attach. And so, yeah, we're very excited about the potential there.

Speaker #4: That being said, it's very early days here. We've just started to roll this out. It is too early to give you a sense, specifically, on what the unit economic equation specific to Chime Prime looks like.

Matt Newcomb: That being said, it's very early days here. We've just started to roll this out. It is too early to give you a sense specifically on, you know, sort of what the unit economic equation specific to Chime Prime looks like. Again, we think this is a great add to our overall product mix and value props. We're excited to keep you posted in the coming quarters.

Speaker #4: But again, we think this is a great add to our overall product mix and value props, and we're excited to keep you posted in the coming quarters.

Speaker #5: Thank you.

Timothy Chiodo: Thank you.

Speaker #1: Thank you. We'll take our next question from Patrick Moley with Piper Sandler. Please go ahead, your line is open.

Operator: Thank you. We'll take our next question from Patrick Moloney with Piper Sandler. Please go ahead. Your line is open.

Speaker #6: Hey guys, this is Will Copps. I'm from Patrick Moley. Thanks for the question. As it relates to Chime Enterprise, are you thinking about any sort of future percentage of total member ads coming from the segment?

Patrick Moley: Hey, guys, this is Patrick Moloney. I'm from Patrick Moloney. Thanks for the question. As it relates to Chime Enterprise, are you thinking about any sort of future percentage of total member adds coming from the segment? What's the CAC relative to other traditional channels for member acquisition? Thank you.

Will Copps: Hey, guys, this is Patrick Moloney. I'm from Patrick Moloney. Thanks for the question. As it relates to Chime Enterprise, are you thinking about any sort of future percentage of total member adds coming from the segment? What's the CAC relative to other traditional channels for member acquisition? Thank you.

Speaker #6: And what's the CAC relative to other traditional channels for member acquisition? Thank you.

Speaker #4: Hi Will, it's Mark. Yeah, I'll pick that up. I think for the enterprise, it's progressing really well, as Chris indicated in the prepared remarks.

Mark Troughton: Hello, it's Mark. Yeah, I'll pick that up. I think, look, Chime Enterprise is progressing really well, as Chris indicated in the prepared remarks. The value prop is really strong. It's a broader financial wellness product. The EWA is totally fee-free, you know, anytime we approach a large enterprise, we find that 5% to 10% of their employee base is already on direct deposit with Chime, which gives us an edge. It's resonating really well in the market. It's still early days for us. You know, these enterprise sales cycles are quite long, it takes a little while to get the boat out of the water.

Speaker #4: The value prop is really strong. It's a broader financial wellness product. The EWA is totally fee-free. And anytime we approach a large enterprise, we find that 5% to 10% of their employee base is already on direct deposit with Chime, which gives us an edge.

Speaker #4: So it's resonating really well in the market. It is still early days for us. These enterprise sales cycles are quite long, and it takes a little while to get the boat out of the water.

Speaker #4: I think the good news is, we think the boat is out of the water. And that's actually translating into a good pipeline here, with a steady drumbeat of conversions.

Mark Troughton: I think the good news is, we think the boat is out of the water, and that's actually translating into a good pipeline here, with a steady drumbeat of conversions, including some large ones like we're announcing today with First Student, which is the largest student transportation company in the US. Yeah, the momentum is strong. As we've indicated, it's one of our priorities. We're not giving specific guidance with respect to Enterprise's contribution to net adds. We think the fact that it's a priority will probably tells you that we believe it has the potential for it to be a meaningful contributor. We're not giving specific guidance related to that. As it relates to CAC, you know, the CAC on Enterprise is materially lower.

Speaker #4: Including some large ones, like we are announcing today with First Student, which is the largest student transportation company in the U.S. So the momentum is strong, as we've indicated.

Mark Troughton: As we've indicated, it's one of our priorities. We're not giving specific guidance with respect to Enterprise's contribution to net adds. We think the fact that it's a priority will probably tells you that we believe it has the potential for it to be a meaningful contributor. We're not giving specific guidance related to that. As it relates to CAC, you know, the CAC on Enterprise is materially lower.

Speaker #4: It's one of our priorities. We're not giving specific guidance with respect to enterprises' contribution to internet ads. We think the fact that it's a priority will probably tell you that we believe it has the potential to be a meaningful contributor.

Speaker #4: But we're not giving specific guidance related to that. As it relates to CAC, the CAC on enterprise is materially lower. But really, it's a CAC that really is enterprise division and the sales cycle, rather than a sort of variable CAC.

Mark Troughton: Really the CAC there really is a fixed cost of the Enterprise division and the sales cycle rather than a sort of variable CAC. That CAC will start off higher, although considerably lower than our consumer channel, and then it will reduce as we get more adds through that same sales cost base. That's how we think of the Enterprise channel.

Speaker #4: So that CAC will start off higher, although considerably lower than our consumer channel. And then it will reduce as we get more ads through that same sales cost base.

Speaker #4: That's how we think of the enterprise channel.

Speaker #1: Thank you. We'll take our next question from Alex McGrath with KeyBank Capital Markets. Please go ahead, your line is open.

Operator: Thank you. We'll take our next question from Alex McGrath with KeyBanc Capital Markets. Please go ahead. Your line is open.

Speaker #7: Hi guys. Thanks for taking my question. More questions—maybe two, if I can squeeze a second one in. First, on Prime for Chris. I'm curious.

Alex McGrath: Hi, guys. Thanks for taking my question, or questions, maybe two, if I can squeeze a second one in. First on Prime for Chris. I'm curious, when we think about the ramp of this offering and some of the forthcoming products or features that you mentioned outside of the really strong initial offering, how do you think about the catalyst that those forthcoming products represent, whether it's account types or, you know, at some point more unsecured credit? Just be curious to understand how those connect as catalysts for the ramp as we think forward.

Alex Markgraff: Hi, guys. Thanks for taking my question, or questions, maybe two, if I can squeeze a second one in. First on Prime for Chris. I'm curious, when we think about the ramp of this offering and some of the forthcoming products or features that you mentioned outside of the really strong initial offering, how do you think about the catalyst that those forthcoming products represent, whether it's account types or, you know, at some point more unsecured credit? Just be curious to understand how those connect as catalysts for the ramp as we think forward.

Speaker #7: When we think about the ramp of this offering, and some of the forthcoming products or features that you mentioned outside of the really strong initial offering, how do you think about the catalyst that those forthcoming products represent? Whether it's account types or, at some point, more unsecured credit, I'd just be curious to understand how those can act as catalysts for the ramp as we think forward.

Speaker #4: Yeah, we think that the progress we've made year to date has been great. This new offering is incredibly compelling. I mean, if you think about the cost of fuel today, if you're a Chime member that selects the gas category and you're spending, say, $800 a month on gas, you're getting $40 cash back.

Chris Britt: Yeah. We think that the progress we've made year to date has been great. This new offering is incredibly compelling. I mean, if you think about, you know, the cost of fuel today, if you're a Chime member that selects the gas category and you're spending, say, $800 a month on gas, you're getting $40 cash back. It's a really, really powerful offering that I think is broadly appealing, that's very consistent with how we're thinking about our product roadmap. We want to create an even broader set of products for our members to engage with us and not just to avoid fees and not just to get access to short-term liquidity and credit building, but to also play a role in helping to shape the long-term financial health and progress for our members.

Speaker #4: It's a really powerful offering that I think is broadly appealing. And that's very consistent with how we're thinking about our product roadmap. We want to create an even broader set of products for our members to engage with us, and not just to avoid fees, and not just to get access to short-term liquidity and credit building, but to also play a role in helping to shape the long-term financial health and progress for our members.

Chris Britt: We want to create an even broader set of products for our members to engage with us and not just to avoid fees and not just to get access to short-term liquidity and credit building, but to also play a role in helping to shape the long-term financial health and progress for our members.

Speaker #4: And that's why we'll be launching investment accounts and accommodating allowing people to buy equities directly. We'll have a robo offering for people who are maybe feeling a little less sophisticated or less comfortable investing in the market, to try to get them moving in that direction.

Chris Britt: That's why we'll be launching investment accounts and a combination of allowing people to buy equities directly. We'll have a robo offering for people who are maybe, you know, feeling a little less sophisticated or less comfortable investing in the market to try to get them moving in that direction. You know, we're really excited about using AI to guide people towards all of these exciting new products. We think that as we evolve them and we offer an even more comprehensive set of services, that we can truly be even more broadly appealing to consumers, even in the 100K plus category. We have the core products and services to meet their needs.

Speaker #4: And we're really excited about using AI to guide people towards all of these exciting new products. We think that as we evolve them and we offer an even more comprehensive set of services, that we can truly be even more broadly appealing to consumers, even in the $100K-plus category.

Chris Britt: You know, we're really excited about using AI to guide people towards all of these exciting new products. We think that as we evolve them and we offer an even more comprehensive set of services, that we can truly be even more broadly appealing to consumers, even in the 100K plus category. We have the core products and services to meet their needs.

Speaker #4: We have the core products and services to meet their needs. So I think the combination of these services together will allow us to be a catalyst to drive even more awareness of Chime's product offerings and open up new segments of the population who've heard of Chime, to really take another look at it. And I think you're already seeing the progress in the net adds that we're adding each quarter.

Chris Britt: I think the combination of these services together will allow us to will be a catalyst to drive even more awareness of Chime's product offerings and open up new segments of the population who've heard of Chime to really take another look at it. I think you're already seeing the progress in the net adds that we're adding each quarter. Expect more and more product offerings coming down the pike, including more products in the area of credit and lending. We're gonna keep, you know, pushing on those fronts as well. I think Mark mentioned that, you know, the Chime Prime tier comes with a, you know, instant approved instant loan product.

Chris Britt: I think you're already seeing the progress in the net adds that we're adding each quarter. Expect more and more product offerings coming down the pike, including more products in the area of credit and lending. We're gonna keep, you know, pushing on those fronts as well. I think Mark mentioned that, you know, the Chime Prime tier comes with a, you know, instant approved instant loan product.

Speaker #4: So expect to see more and more product offerings coming down the pike, including more products in the area of credit and lending. We're going to keep pushing on those fronts as well.

Speaker #4: I think Mark mentioned that the Chime Prime tier comes with instant approval, instant loan product. And so we're going to continue to have credit and lending products to serve that segment as well.

Chris Britt: We're gonna continue to have credit and lending products to serve that segment as well. Certainly down the line, we anticipate having some form of an unsecured credit card product as well. That's not something we have on the sort of short-term roadmap.

Speaker #4: And certainly, down the line, we anticipate having some form of an unsecured credit card product as well. But that's not something we have on the short-term roadmap.

Speaker #7: Understood. I appreciate that. And then maybe, if I could squeeze one in just on underwriting—just having heard from some peers in the ecosystem talk about step changes in underwriting model quality.

Alex McGrath: Understood. I appreciate that. Maybe if I could squeeze one in just on underwriting. Having heard from some peers in the ecosystem talk about step changes in underwriting model quality, as a result of AI-related improvements. I'm curious to maybe sort of a pulse check. Obviously, you guys have made a ton of progress and, you know, hitting target loss rates around MyPay. Sort of curious to pulse check the maturity of models and if there are opportunities that you all see, you know, that didn't exist 12 months ago with respect to model quality. Thank you.

Alex Markgraff: Understood. I appreciate that. Maybe if I could squeeze one in just on underwriting. Having heard from some peers in the ecosystem talk about step changes in underwriting model quality, as a result of AI-related improvements. I'm curious to maybe sort of a pulse check. Obviously, you guys have made a ton of progress and, you know, hitting target loss rates around MyPay. Sort of curious to pulse check the maturity of models and if there are opportunities that you all see, you know, that didn't exist 12 months ago with respect to model quality. Thank you.

Speaker #7: As a result of AI-related improvements, I'm just curious to maybe sort of do a pulse check. Obviously, you guys have made a ton of progress and are hitting target loss rates around MyPay.

Speaker #7: But just sort of curious to pulse-check the maturity of models, and if there are opportunities that you all see that didn't exist 12 months ago with respect to model quality.

Speaker #7: Thank you.

Speaker #4: Yeah, I'll pick that one up. I think, look, there are two things. One, it's important to just bear in mind the key advantages we have on the underwriting side, right?

Mark Troughton: Yeah, I'll pick that one up. I think, look, there are two things. One, it's important to just bear in mind the key advantages we have on the underwriting side, right? The first one is, as a primary account, we have a lot of unique data. Secondly, we're actually underwriting against a recurring direct deposit, so we sit top of the repayment stack. Those are two very significant advantages that we leverage. In addition to that, we obviously continue to use those data signals through increasingly sophisticated models. We've been using advanced machine learning on these things for some time. We do think there will be increased advantages with AI, and we want to continue to sort of lead that.

Speaker #4: The first one is, we, as a primary account, we have a lot of unique data. Secondly, we're actually underwriting against a recurring direct deposit.

Speaker #4: So, we sit at the top of the repayment stack. Those are two very, very significant advantages that we leverage. In addition to that, we obviously continue to use those data signals through increasingly sophisticated models.

Mark Troughton: In addition to that, we obviously continue to use those data signals through increasingly sophisticated models. We've been using advanced machine learning on these things for some time. We do think there will be increased advantages with AI, and we want to continue to sort of lead that.

Speaker #4: We've been using advanced machine learning on these things for some time. We do think there will be increased advantages with AI, and we will want to continue to sort of lead that.

Mark Troughton: You know, I think if you have a look at our underwriting performance and you look at something like MyPay, a year ago, we were sitting at 1.7% loss rates, and now we're sitting around 1%. I think that while there are still meaningful improvements ahead with AI, I think a lot of the advantage is coming from the unique data and the position we have in the recurring direct deposit stack.

Speaker #4: But I think if you have a look at our underwriting performance and you look at something like MyPay, a year ago we were sitting at a 1.7% loss rate, and now we're sitting around 1%.

Speaker #4: So I think that while there are still meaningful improvements ahead with AI, I think a lot of the advantage is coming from the unique data and the position we have in the recurring direct deposit stack.

Operator: Thank you. At this time, we've reached our allotted time for questions. I'll now turn the call back over to Chris Britt for any additional or closing remarks.

Speaker #1: Thank you. At this time, we've reached our allotted time for questions. I'll now turn the call back over to Chris Britt for any additional or closing remarks.

Speaker #4: Great. Thanks again. I want to congratulate the team on a great quarter, and I'm looking forward to seeing you all on the road.

Chris Britt: Great. Thanks again. I wanna congratulate the team on a great quarter, and looking forward to seeing you all on the road.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. Good afternoon, and welcome to Chime's Q1 fiscal 2026 Earnings Call. Following the speaker's remarks, we will open the line for your questions. As a reminder, this conference 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'd like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation.

Speaker #1: disconnect.

Speaker #2: Good afternoon, and welcome to Chime's First Quarter Fiscal 2026 Earnings Call. Following the speakers' remarks, we will open the line for your questions. As a reminder, this conference 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.

Speaker #2: I'd like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you. You may begin.

Speaker #3: Good afternoon, everyone, and thank you for joining us for Chime's first quarter 2026 earnings conference call. Joining me today are Chris Britt, our co-founder and CEO, and Matt Newcomb, our CFO.

Peter Stabler: Good afternoon, everyone, and thank you for joining us for Chime's Q1 2026 Earnings Conference Call. Joining me today are Chris Britt, our Co-founder and CEO, and Matt Newcomb, our CFO. Mark Troughton, our President, 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 10-K filed on 6 March 2026.

Speaker #3: Mark Troughton, our president, 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 investors.chime.com.

Speaker #3: 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.

Speaker #3: Many of those risks and uncertainties are described in our SEC filings, including our Form 10-K filed on March 6, 2026. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made.

Speaker #3: We disclaim any obligation to update any forward-looking statements, except as required by law. With that, I'll hand it over to Chris.

Speaker #4: Thanks, Peter, and thank you all for joining us today. 2026 is off to a strong start. In Q1, we delivered strong, active member growth, continued taking share from the largest banks, achieved GAAP profitability, and accelerated product velocity.

Chris Britt: Thanks, Peter. Thank you all for joining us today. 2026 is off to a strong start. In Q1, we delivered strong active member growth, continued taking share from the largest banks, achieved GAAP profitability, and accelerated product velocity. Last month, we launched Chime Prime, our new premium membership tier. Prime offers higher cashback rewards, high-yield savings, greater access to liquidity, and premium perks for members who make Chime their primary financial partner. Early signs are encouraging. I'll share more in a moment. The strength of our brand and offerings have never been clearer. We added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million. Consumers are drawn to Chime's expanding product suite and low-fee model.

Speaker #4: Last month, we launched Chime Prime, our new premium membership tier. Prime offers higher cashback rewards, high-yield savings, greater access to liquidity, and premium perks for members who make Chime their primary financial partner.

Speaker #4: Early signs are encouraging, and I'll share more in a moment. The strength of our brand and offerings has never been clearer. We added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million.

Speaker #4: Consumers are drawn to Chime's expanding product suite and low-fee model. As a result, Chime again ranked number one in U.S. checking account openings per J.D.

Chris Britt: As a result, Chime again ranked number one in US checking account openings per J.D. Power's Q1 survey and 50% ahead of the next competitor, while members earning $75,000 plus remained our fastest-growing segment. Unaided brand awareness also continues to rise among consumers earning up to $100K. Turning to the quarter, revenue grew 25% year over year, exceeding the high end of our guidance range. Coupled with strong cost discipline, we delivered over 13 points of adjusted EBITDA margin expansion year over year, demonstrating the powerful fixed cost leverage in our business model. Q1 also marked our first quarter of positive GAAP EPS, a major milestone for our shareholders, and we expect to deliver positive GAAP EPS for our full-year results.

Speaker #4: Power's Q1 survey: we're 50% ahead of the next competitor, while members earning $75,000-plus remained our fastest-growing segment. Unaided brand awareness also continues to rise among consumers earning up to $100K, turning to the quarter.

Speaker #4: Revenue grew 25% year over year, exceeding the high end of our guidance range. Coupled with strong cost discipline, we delivered over 13 points of adjusted EBITDA margin expansion year over year, demonstrating the powerful fixed cost leverage in our business model.

Speaker #4: Q1 also marked our first quarter of positive GAAP EPS, a major milestone for our shareholders. And we expect to deliver positive GAAP EPS for our full-year results.

Chris Britt: Our Q1 results highlight our core competitive advantages: primary relationships, our trusted brand, a low cost to serve, and rapid innovation powered by Chime Core, now accelerated with AI. Understandably, the health of the American consumer is a major focus for investors today, fueled by geopolitical uncertainty, high energy costs, and overall affordability concerns. We look closely at our members' behavior, and as we've reported for the past several quarters, we continue to see broad consumer resilience. Even with fuel spending up, overall purchase volumes and saving rates remain strong and consistent, and average account balances among our recurring direct depositors continue to grow, aided in part by year-over-year growth in the average tax refund. We've yet to see any meaningful changes in the number of our members receiving unemployment benefits.

Speaker #4: Relationships, our trusted brand, a low cost to serve, and rapid innovation powered by Chime Core—now accelerated with AI. Understandably, the health of the American consumer is a major focus for investors today.

Speaker #4: Fueled by geopolitical uncertainty, high energy costs, and overall affordability concerns, we've looked closely at our members' behavior, and as we've reported for the past several quarters, we continue to see broad consumer resilience.

Speaker #4: Even with fuel spending up, overall purchase volumes and saving rates remain strong and consistent, and average account balances among our recurring direct depositors continue to grow.

Speaker #4: Aided in part by year-over-year growth in the average tax refund. And we've yet to see any meaningful changes in the number of our members receiving unemployment benefits.

Speaker #4: In terms of lending, our credit loss rates continue to improve, reflecting the strength of our short-duration loan portfolio underwritten by recurring direct deposits, and our ability to rapidly fine-tune our lending risk models.

Chris Britt: In terms of lending, our credit loss rates continue to improve, reflecting the strength of our short-duration loan portfolio underwritten by recurring direct deposits and our ability to rapidly fine-tune our lending risk models. These factors dramatically lower our loan portfolio risk and are what separate us from other lending businesses. Turning to our 2026 priorities, as we mentioned last quarter, our first priority is to extend our lead as the best financial partner for everyday Americans. This starts by leveraging our proprietary tech stack and cost-to-serve advantage to provide products and services that enable our members to unlock financial progress while maintaining our position as the market's low-cost leader. Our membership tiers embody our central brand promise of offering the most rewarding, fee-free banking experiences in the market for everyday Americans. At the same time, they reinforce a simple idea.

Speaker #4: These factors dramatically lower our loan portfolio risk and are what separate us from other lending businesses. Turning to our 2026 priorities, as we mentioned last quarter, our first priority is to extend our lead as the best financial partner for everyday Americans.

Speaker #4: This starts by leveraging our proprietary tech stack and cost-to-serve advantage to provide products and services that enable our members to unlock financial progress. While maintaining our position as the market's low-cost leader, our membership tiers embody our central brand promise of offering the most rewarding, fee-free banking experiences in the market for everyday Americans.

Speaker #4: At the same time, they reinforce a simple idea: the more members engage with Chime as their primary financial partner, the more value they unlock.

Speaker #4: Our membership tiers drive deeper direct deposit relationships, increased product usage, and expanded RPAM, as evidenced again this quarter. Building on the success of Chime Plus, our basic membership tier that rewards members who set up direct deposit, we're really excited about the launch of Chime Prime, which offers an even richer set of rewards to members making at least $3,000 of qualifying direct deposits per month.

Speaker #4: And as with Chime Plus, there are no fees. Chime Prime members unlock a market-leading 5% cashback on the category of their choice when they spend with their Chime card.

Speaker #4: Categories include groceries, restaurants, gas, utilities, or travel. So, for example, a family spending $1,500 on groceries per month would receive $75 in cashback on Chime Prime.

Speaker #4: Prime also includes 3.75% APY on savings, a rate nine times the national average; up to 70 points of credit score improvement; higher levels of liquidity through MyPay and Instant Loans; and premium travel and lifestyle perks like access to exclusive airport lounges and special access to concerts.

Chris Britt: Prime also includes 3.75% APY on savings, a rate nine times the national average. Up to 70 points of credit score improvement, higher levels of liquidity through MyPay and Instant Loans, and premium travel and lifestyle perks like access to exclusive airport lounges and special access to concerts. Early results show that our new Chime Prime tier is increasing direct deposit intent and improving retention among existing direct depositors. Chime Prime members are also more likely to adopt Chime Card for everyday spend, helping to drive a continued shift we're seeing from debit to credit spending, which delivers a higher take rate for us. The benefits from this more premium tier deepens our relationship with higher-earning members who are becoming a larger portion of our member base.

Speaker #4: Early results show that our new Prime tier is increasing direct deposit intent and improving retention among existing direct depositors. Prime members are also more likely to adopt Chime card for everyday spend.

Speaker #4: Helping to drive a continued shift we're seeing from debit to credit spending, which delivers a higher take rate for us. The benefits from this more premium tier deepen our relationship with higher-earning members, who are becoming a larger portion of our member base.

Speaker #4: Turning to our short-term liquidity products, Q1 was another strong quarter for MyPay, which is already a $400 million-plus run-rate business. We rolled out our variable MyPay pricing plan and expanded access to earned wages earlier in the pay cycle, addressing our most frequent member requests.

Chris Britt: Turning to our short-term liquidity products, Q1 was another strong quarter for MyPay, which is already a $400 million-plus run rate business. We rolled out our variable MyPay pricing plan and expanded access to earned wages earlier in the pay cycle, addressing our most frequent member requests, while at the same time retaining our leadership as the low-cost provider in the market. With higher origination volumes, improved yields, and low steady loss rates, MyPay transaction profit was up over 10-fold year over year. We're also making great progress with Instant Loans, which we believe positions the product to become a meaningful contributor to transaction profit growth over the coming quarters. Members qualifying for Chime Prime are pre-qualified for Instant Loans, and continued optimization of our underwriting models is enabling us to broaden member access while we reduce loss rates.

Speaker #4: While at the same time, retaining our leadership as the low-cost provider in the market. With higher origination volumes, improved yield, and low, steady loss rates, MyPay transaction profit was up over tenfold year over year.

Speaker #4: We're also making great progress with Instant Loans, which we believe positions the product to become a meaningful contributor to transaction profit growth over the coming quarters.

Speaker #4: Members qualifying for Chime Prime are pre-qualified for Instant Loans, and continued optimization of our underwriting models is enabling us to broaden member access while we reduce loss rates.

Speaker #4: Our first priority and North Star is to help our members unlock financial progress. In service of this goal, our product roadmap for this year will expand to meet even more of their everyday financial needs, with investing, joint accounts, and custodial accounts all coming soon.

Chris Britt: Our first priority at North Star is to help our members unlock financial progress. In service of this goal, our product roadmap for this year will expand to meet even more of their everyday financial needs with investing, joint accounts, and custodial accounts all coming soon. With a broader portfolio of products, we believe we'll continue to deepen our member relationships. The evidence at the cohort level is clear and compelling. The longer a Chime member stays with us, the greater the average product attach rate, purchase volume, and transaction profit. This compounding dynamic is the core of our long-term growth model. Our second priority is scaling Chime Enterprise. Our expanded earned wage access and suite of financial wellness tools completely free to employees through their employers. As we've mentioned, the sales cycle for enterprise accounts tend to be long, but our pipeline and customer count is growing steadily.

Speaker #4: With a broader portfolio of products, we believe we'll continue to deepen our member relationships. The evidence at the cohort level is clear and compelling.

Speaker #4: The longer a Chime member stays with us, the greater the average product attach rate, purchase volume, and transaction profit. This compounding dynamic is the core of our long-term growth model.

Speaker #4: Our second priority is scaling Chime Enterprise. Our expanded earned wage access and suite of financial wellness tools are completely free to employees through their employers.

Speaker #4: As we've mentioned, the sales cycle for enterprise accounts tends to be long, but our pipeline and customer count is growing steadily. We're excited to announce that we've signed four new employer partners in Q1, including First Student, the largest provider of student transportation in the nation, with over 65,000 employees.

Chris Britt: We're excited to announce that we've signed four new employer partners in Q1, including First Student, the largest provider of student transportation in the nation, with over 65,000 employees. As we prepare to roll out with First Student, our Workday partnership will support seamless integration and implementation. Our third priority is to deeply embed AI across Chime and into the member experience. For a full-stack fintech like Chime, with proprietary data, integrated infrastructure, deep bank partnerships, and a trusted brand, AI compounds our structural advantage and further differentiates us from incumbent banks. As the primary account for millions of members, we have a real-time view of their financial lives, paychecks, spending, bills, balances, all flowing through our platform. Because Chime Core powers everything from the ledger to the app experience, we can take action, not just provide insights.

Speaker #4: As we prepare to roll out with First Student, our Workday partnership will support seamless integration and implementation. Our third priority is to deeply embed AI across Chime and into the member experience.

Speaker #4: For a full-stack fintech like Chime, with proprietary data, integrated infrastructure, deep bank partnerships, and a trusted brand, AI compounds our structural advantage and further differentiates us from incumbent banks.

Speaker #4: As the primary account for millions of members, we have a real-time view of their financial lives—paychecks, spending, bills, balances—all flowing through our platform.

Speaker #4: And because Chime Core powers everything from the ledger to the app experience, we can take action, not just provide insights. With the members' permission, we can move money to where it earns more.

Chris Britt: With a member's permission, we can move money to where it earns more, extend credit in the moment it's needed, and stop unwanted charges before they post, capabilities no third-party app could replicate. With Jade, our AI copilot rolling out now, we're bringing this to life. Jade will help us move from reactive tools to proactive financial management, helping members spend smarter, save more, pay bills on time, borrow responsibly, and build long-term wealth. Early results from scaled beta testing have been encouraging and will continue to expand access over the coming months. While AI will accelerate innovation across the industry, it won't replicate the foundations of our model, bank partnerships, payment networks, and compliance infrastructure. As choice expands, consumers will choose the platform that delivers the best products at the lowest cost from a brand that they trust. AI is already transforming the way we work.

Speaker #4: Extend credit in the moment it's needed, and stop unwanted charges before they post. Capabilities no third-party app could replicate. With Jade, our AI co-pilot rolling out now, we're bringing this to life.

Speaker #4: Jade will help us move from reactive tools to proactive financial management, helping members spend smarter, save more, pay bills on time, borrow responsibly, and build long-term wealth.

Speaker #4: Early results from scaled beta testing have been encouraging, and we'll continue to expand access over the coming months. While AI will accelerate innovation across the industry, it won't replicate the foundations of our model, bank partnerships, payment networks, and compliance infrastructure.

Speaker #4: As choice expands, consumers will choose the platform that delivers the best products at the lowest cost, from a brand that they trust. AI is already transforming the way we work.

Speaker #4: In product and engineering, AI-powered development is quickly becoming the norm. Eighty-four percent of the code we shipped in March was developed with AI, up from twenty-nine percent just four months ago.

Speaker #4: That's driving a meaningful increase in velocity. We're now taking the next step with Archimedes, our AI-native software factory, where we can move from idea to a shipped product with AI agents doing the majority of the development.

Speaker #4: More broadly, Archimedes represents a fundamental shift in how we build at Chime—from AI assisting humans to AI at the center of how we design and develop products.

Speaker #4: While maintaining the quality, control, and compliance our platform requires, AI is driving operating leverage at scale— increasing levels of output while keeping headcount flat.

Speaker #4: We're at a unique moment where AI is unlocking entirely new possibilities in financial services. Because we're not burdened by legacy systems, we can move faster, build better, and lead this transformation.

Speaker #4: With our platform, model, and momentum, we're uniquely positioned to shape what comes next. AI isn't just a tailwind for our business; it's an accelerant of our core advantages, further expanding what we can deliver for our members and for our business.

Speaker #4: I'll turn it over to Matt to cover our financial results and provide an updated outlook for Q2 and the full year.

Speaker #2: Thanks, Chris. In Q1, our fourth quarter as a public company, we again demonstrated both strong execution and the resiliency of our model. We're continuing to execute on multiple dimensions of growth, with 19% growth in active members, 5% growth in average revenue per active member, or RPAM, and a 9 percentage point improvement in transaction margin in Q1.

Matt Newcomb: Thanks, Chris. In Q1, our Q4 as a public company, we again demonstrated both strong execution and the resiliency of our model. We're continuing to execute on multiple dimensions of growth, with 19% growth in active members, 5% growth in average revenue per active member or ARPAM, and a 9 percentage point improvement in transaction margin in Q1. These are compounding growth levers, together drove 41% growth in transaction profit in the quarter. With a clear number one share gainer in a massive market, with a radical cost to serve advantage and a technology and product innovation advantage that continues to extend our lead over the competition. Powered by our deeply engaged primary account relationships, we have a durable, low credit risk, 70% plus transaction margin business that we're scaling over a largely fixed OpEx base.

Speaker #2: These are compounding growth levers, and together drove 41% growth in transaction profit in the quarter. With a clear number one share gainer and a massive market, with a radical cost-to-serve advantage, and a technology and product innovation advantage that continues to extend our lead over the competition.

Speaker #2: And powered by our deeply engaged primary account relationships, we have a durable, low credit risk, 70%+ transaction margin business that we're scaling over a largely fixed OPEX base.

Speaker #2: These are the ingredients of a business model with strong long-term earnings power. And in Q1, we again demonstrated our rapid progress along that path.

Matt Newcomb: These are the ingredients of a business model with strong long-term earnings power. In Q1, we again demonstrated our rapid progress along that path. Our Q1 adjusted EBITDA margin of 18% improved over 1,300 basis points year over year. Our incremental adjusted EBITDA margin was 73% in the quarter, and we were GAAP profitable. Given the strength in the business, we are raising full year guidance. Having exhausted our prior repurchase program, we are also announcing an additional $200 million share repurchase authorization. While markets are volatile, our long-term earnings power is not, and this authorization allows us to continue to opportunistically take advantage of market dislocations in our share price. Let me dive into more detail on our Q1 operating results, starting with active members.

Speaker #2: Our Q1 adjusted EBITDA margin of 18% improved over 1,300 basis points year over year. Our incremental adjusted EBITDA margin was 73% in the quarter.

Speaker #2: And we were GAAP profitable. Given the strength in the business, we are raising full-year guidance. And having exhausted our prior repurchase program, we are also announcing an additional $200 million share repurchase authorization.

Speaker #2: While markets are volatile, our long-term earnings power is not. And this authorization allows us to continue to opportunistically take advantage of market dislocations in our share price.

Speaker #2: Let me dive into more detail on our Q1 operating results, starting with active members. We have a consistent track record as the leading share gainer in a market of nearly 200 million Americans making up to $100K.

Matt Newcomb: We have a consistent track record as the leading share gainer in a market of nearly 200 million Americans making up to $100K. In Q1, we added nearly 700,000 net new active members quarter over quarter. Some of this growth was driven by particularly strong seasonal tailwinds. As a reminder, each year in Q1, tax refund-related activity drives seasonally higher levels of reengaged active members. This year, we saw the number of members using our embedded tax filing service grow over 50% year over year. This year's later start to tax season concentrated more of this reengagement later in the quarter. That said, our overall growth algorithm continues to perform well, with several other drivers contributing to this quarter's strong performance. First, our top of funnel remains strong.

Speaker #2: In Q1, we added nearly 700,000 net new active members, quarter over quarter. Some of this growth was driven by particularly strong seasonal tailwinds. As a reminder, each year in Q1, tax refund-related activity drives seasonally higher levels of re-engaged active members.

Speaker #2: This year, we saw the number of members using our embedded tax filing service grow over 50% year over year. Also, this year’s later start to tax season concentrated more of this re-engagement later in the quarter.

Speaker #2: That said, our overall growth algorithm continues to perform well, with several other drivers contributing to this quarter's strong performance. First, our top-of-funnel remains strong.

Speaker #2: Our brand awareness continues to grow, and new value propositions like Chime Card's cashback rewards on everyday spend are clearly resonating with members. Looking ahead, we're excited about the opportunity to use rewards more broadly to drive both new member growth and retention, and expect to continue to experiment this year.

Matt Newcomb: Our brand awareness continues to grow, and new value propositions like Chime Card's cashback rewards on everyday spend are clearly resonating with members. Looking ahead, we're excited about the opportunity to use rewards more broadly to drive both new member growth and retention, and expect to continue to experiment this year. Second, our early engagement initiatives, which make it easier to get started with Chime, continue to be successful. These initiatives have enabled us to engage members we wouldn't have otherwise engaged, driving all-time high activation rates, lowering our CAC, and improving our payback periods to five to six quarters. We're also finding that they are increasingly an on-ramp to more deeply engaged direct deposit relationships, not just lightly engaged members. Given this progress, we believe we are on track to exceed our original goal of 1.4 million net new actives for 2026. Second is ARPAM.

Speaker #2: Second, our early engagement initiatives—which make it easier to get started with Chime—continue to be successful. These initiatives have enabled us to engage members we wouldn't have otherwise engaged.

Speaker #2: Driving all-time high activation rates, lowering our CACs, and improving our payback periods to five to six quarters. We're also finding that they are increasingly an on-ramp to more deeply engaged, direct deposit relationships.

Speaker #2: Not just lightly engaged members. Given this progress, we believe we are on track to exceed our original goal of $1.4 million net new actives for 2026.

Speaker #2: Second is RPAM. We have a high-quality member base. We serve the majority of our members in a primary account capacity, which gives us deep levels of engagement, strong retention, and high levels of RPAM.

Speaker #2: As our members' primary account relationship, we've also earned both the trust and mindshare to drive strong product cross-sell. Fifteen percent of our active members use six or more products each month, and their RPAM is north of $500, double our average.

Speaker #2: In Q1 specifically, overall RPAM increased 5% year over year to $263, driven by strength in both payments and platform revenue. Combined payments and OIT revenue increased 19% year over year.

Speaker #2: Resilient member spend trends, along with larger tax refund deposits, drove PV and OIT volume growth of 15%. We’re also continuing to drive strong adoption of Chime Card, across both new and existing members.

Speaker #2: As of March, nearly half of our members are using a secured credit card—either our legacy Credit Builder card, or, increasingly, our new Chime Card—on a monthly basis.

Matt Newcomb: As of March, nearly half of our members are using a secured credit card, either our legacy Credit Builder card or increasingly our new Chime Card on a monthly basis. That's up from just over a third of members in September prior to our Chime Card launch. This progress has increased the portion of total purchase volume that is on credit to nearly 25% in March, up from 16% in September. Chime Card is a win-win. Members benefit from cashback rewards on their everyday spend, we benefit from the higher net interchange rates we are on credit. As Chris noted, we're excited for Chime Prime's potential to drive Chime Card adoption even higher. platform-related revenue increased 50% year-over-year, driven by continued strong performance across our liquidity products.

Speaker #2: That's up from just over a third of members in September, prior to our Chime Card launch. This progress has increased the portion of total purchase volume that is on credit to nearly 25% in March, up from 16% in September.

Speaker #2: Chime Card is a win-win. Members benefit from cashback rewards on their everyday spend, and we benefit from the higher net interchange rates we earn on credit.

Speaker #2: And as Chris noted, we're excited for Chime Prime's potential to drive Chime Card adoption even higher. Platform-related revenue increased 50% year over year, driven by continued strong performance across our liquidity products.

Speaker #2: Our success earning direct deposit relationships enables us to offer liquidity products profitably, at low cost, and with low risk. In Q1, we completed the rollout of our new variable pricing model for MyPay.

Matt Newcomb: Our success earning direct deposit relationships enables us to offer liquidity products profitably at low cost and with low risk. In Q1, we completed the rollout of our new variable pricing model for MyPay, while also maintaining loss rates at our steady-state target of 1%. Together, this grew our MyPay transaction margin to 62% and overall MyPay transaction profit dollars to $64 million, up 10x year-over-year. We're also seeing strong performance for Instant Loans, our 3 to 12-month installment loan products. We're scaling access. In Q1, we originated $180 million of Instant Loans. We're also offering longer duration loans to repeat borrowers, which come with better economics. In Q1, we doubled origination volume quarter-over-quarter for 9 and 12-month loans. We're driving lower loss rates.

Speaker #2: While also maintaining loss rates at our steady-state target of 1%. Together, this grew our MyPay transaction margin to 62%, and overall MyPay transaction profit dollars to $64 million, up 10x year over year.

Speaker #2: We're also seeing strong performance for instant loans, our 3- to 12-month installment loan products. We're scaling access. In Q1, we originated $180 million of instant loans.

Speaker #2: We're also offering longer-duration loans to repeat borrowers, which come with better economics. In Q1, we doubled origination volume quarter over quarter for 9- and 12-month loans.

Speaker #2: And we're driving lower loss rates. We continue to see loss rates improve as much as 50% for repeat borrowers compared to first-time borrowers. Taken together, we're very excited about the progress with this product and its path to becoming a meaningful driver of transaction profit growth over the coming quarters.

Speaker #2: Third is transaction profit. Our low-cost operating model has enabled us to offer what we believe is the most compelling breadth of services for mainstream consumers.

Speaker #2: Delivered at over 70% transaction margin. We don't believe any incumbent offers consumers anywhere near the level of utility and value that Chime offers, including for higher earners.

Speaker #2: In Q1, as a result of our recent transition to Chime Core, as well as continued strong loss rates performance, we improved our transaction margin to 76%, up 9 percentage points year over year.

Speaker #2: Together with our growth in actives and RPAM, overall transaction profit grew 41% year over year to $491 million. So we're compounding growth across multiple dimensions, and we're driving this growth with strong unit economics.

Matt Newcomb: Together with our growth in actives and RPAM, overall transaction profit grew 41% year-over-year to $491 million. We're compounding growth across multiple dimensions, and we're driving this growth with strong unit economics. We continue to acquire members efficiently with 5 to 6-quarter transaction profit payback period. Just as important is the durability of our cohorts, driven by our deeply engaged, long-lasting primary account relationships. Our cohorts are underpinned by every day reoccurring nondiscretionary spend. Our cohorts double in RPAM as they season, as members attach to more products over time. Our cohorts see over 100% dollar-based transaction profit retention, net of churn. Taken together, this drives LTV to CAC of over 8x. It's these unit economics that allow us to drive strong operating leverage while continuing to make meaningful investments in growth.

Speaker #2: We continue to acquire members efficiently, with a five- to six-quarter transaction profit payback period. But just as important is the durability of our cohorts, driven by our deeply engaged, long-lasting primary account relationships.

Speaker #2: Our cohorts are underpinned by everyday, recurring, non-discretionary spend. Our cohorts double in RPAM as they season, as members attach to more products over time.

Speaker #2: And our cohorts see over 100% dollar-based transaction profit retention, net of churn. Taken together, this drives LTV to CACs of over 8x. It's these unit economics that allow us to drive strong operating leverage while continuing to make meaningful investments in growth.

Speaker #2: In Q1, non-GAAP OPEX as a percent of revenue fell 5 percentage points year over year, with leverage across all OPEX categories. And in Q1, we grew our adjusted EBITDA margin to 18%, up 13 percentage points year over year, at an incremental margin of over 70%.

Matt Newcomb: In Q1, non-GAAP OpEx as a percent of revenue fell 5 percentage points year-over-year, with leverage across all OpEx categories. In Q1, we grew our adjusted EBITDA margin to 18%, up 13 percentage points year-over-year at an incremental margin of over 70%. In total, we delivered $119 million of adjusted EBITDA and $53 million of GAAP net income. Turning to our guidance. In Q2, we expect revenue between $633 and 643 million, resulting in year-over-year revenue growth between 20% and 22%. We expect adjusted EBITDA between $72 and 77 million and an adjusted EBITDA margin between 11% and 12%. For the full year, we expect revenue between $2.66 and 2.69 billion, resulting in year-over-year revenue growth between 22% and 23%.

Speaker #2: In total, we delivered $119 million of adjusted EBITDA and $53 million of GAAP net income. Turning to our guidance, in the second quarter, we expect revenue between $633 million and $643 million.

Speaker #2: Resulting in year-over-year revenue growth between 20% and 22%. We expect adjusted EBITDA between $72 million and $77 million, and an adjusted EBITDA margin between 11% and 12%.

Speaker #2: For the full year, we expect revenue between $2.66 and $2.69 billion, resulting in year-over-year revenue growth between 22% and 23%. And we expect full-year adjusted EBITDA of between $416 and $431 million.

Matt Newcomb: We expect full year adjusted EBITDA of between $416 and 431 million and an adjusted EBITDA margin of 16%. We now expect an incremental adjusted EBITDA margin of approximately 60% for 2026. There are a few things to keep in mind about our Q2 and full year guide. As a reminder, we have a seasonal business. Many of our metrics, including active members, transaction volumes, and RPAM, benefit from tax refund-related activity in Q1. In particular, because tax refund-related activity drives more members to re-engage with us in Q1, we benefit from seasonally high quarter-over-quarter net adds each Q1, but lower net adds each Q2. We expect to see this typical seasonality again this Q2.

Speaker #2: And an adjusted EBITDA margin of 16%. We now expect an incremental adjusted EBITDA margin of approximately 60% for 2026. There are a few things to keep in mind about our second quarter and full-year guide.

Speaker #2: As a reminder, we have a seasonal business. Many of our metrics, including active members, transaction volumes, and RPAM, benefit from tax refund-related activity in Q1.

Speaker #2: In particular, because tax refund-related activity drives more members to re-engage with us in the first quarter, we benefit from seasonally high quarter-over-quarter net ads each Q1, but lower net ads each Q2.

Speaker #2: We expect to see this typical seasonality again this Q2. We also see seasonally elevated transaction margin in Q1 due to higher purchase volume, as well as both lower utilization and higher repayment rates on our liquidity products.

Speaker #2: As such, we expect transaction margin to normalize from 76% in Q1 to between 70% and 72% for the rest of the year. Finally, while we'll continue driving operating leverage at attractive incremental margins, as we've noted previously, we're investing in sales and marketing and member support costs to support the recent launch of our Chime Prime premium membership tier this year, particularly in Q2.

Speaker #2: With that, I'll open it up to Q&A.

Speaker #1: Thank you. At this time, we will open the floor for questions. If you'd like to ask a question, you may press star 1 on your telephone keypad now.

Operator: Thank you. At this time, we will open the floor for questions. If you'd like to ask a question, you may press star one on your telephone keypad now. To remove yourself from the queue, you may press star two. Again, that is star one if you'd like to ask a question, we'll pause for just a moment to allow questioners to queue. Again, that is gonna be star one if you'd like to ask a question. We'll take our first question from Sinjan Wang with JP Morgan. Please go ahead. Your line is open.

Speaker #1: To remove yourself from the queue, you may press star 2. Again, that is star 1 if you'd like to ask a question, and we'll pause for just a moment to allow questioners to queue.

Speaker #1: And again, that is going to be star 1 if you'd like to ask a question. And we'll take our first question from Zinton Wong with JPMorgan.

Speaker #1: Please go ahead. Your line is open.

Speaker #3: Hi. Great. Really great results here, guys. Nice to talk to you all. Just, Matt, you went through a lot with the ads, so I won't ask you to go through it again.

Sinjan Wang: Hi, great, really great results here, guys. Nice to talk to y'all. Just, Matt, you went through a lot with the ads. I won't ask you to go through it again. Just, just thinking about drafting off of the strong tax rebate season and some of the initiatives you guys have put in. As you're thinking around additions and how it's gonna track for the rest of the year, has that changed at all? It does feel like you've gotten a little bit more momentum on the Instant Loans, and it's showing up already. How impactful might that be here as we recast our forecast for the rest of the year? Thanks.

Speaker #3: And it does feel like you’ve gotten a little bit more momentum on the instant loans, and that’s showing up already. So how impactful might that be here as we recast our forecast for the rest of the year?

Speaker #3: Thanks.

Speaker #4: Thanks, Kanjun. Yeah, we're really pleased with the continued momentum that we're seeing on our active growth. As I mentioned, our overall growth algorithm remains really strong.

Matt Newcomb: Thanks, Sinjan. Yeah, we're really pleased with the continued momentum that we're seeing on our actives growth. You know, as I mentioned, our overall growth algorithm remains really strong. Top of funnel remains very healthy. Our brand awareness continues to grow. You're seeing this result corroborated by third-party data. J.D. Power came out with their latest survey in Q1 where Chime again ranked number one by a large margin in terms of checking account openings. I think our product velocity is really helping this as well. New products like Chime Card and more recently, Chime Prime are clearly resonating with members. All of this also supports our early engagement initiatives. We're continuing to see, you know, great progress that's led to shorter payback periods and LTV to CAC north of 8x.

Speaker #4: Top of funnel remains very healthy. Our brand awareness continues to grow. You're seeing this result corroborated by third-party data: JD Power came out with their latest survey in Q1, where Chime again ranked number one by a large margin in terms of checking account openings.

Speaker #4: I think our product velocity is really helping this as well. New products like Chime Card and, more recently, Chime Prime are clearly resonating with members.

Speaker #4: And all of this also supports our early engagement initiatives. We're continuing to see great progress. That's led to shorter payback periods and LTV to CAC north of 8x.

Chris Britt: That being said, you know, we also saw some outsized seasonal tailwinds on actives growth in the quarter as well. As a reminder there, every Q1 we see seasonally high re-engagement related to tax refunds. This quarter there are really sort of two factors that magnified this. We saw a later start to tax season than in years prior, and that concentrated more of the re-engagement later in the quarter. As a reminder, we measure monthly actives as of the last month of the quarter. We also saw a really strong engagement with our embedded tax filing service this year.

Speaker #4: That being said, we also saw that we saw some outsized seasonal tailwinds on active growth in the quarter as well.

Speaker #4: And as a reminder there, every Q1 we see seasonally high re-engagements related to tax refunds. And this quarter, there were really sort of two factors that magnified this.

Speaker #4: And then we also saw really strong engagement with our embedded tax filing service this year. So, in sum, we're continuing to see broad momentum.

Chris Britt: In sum, you know, we're continuing to see broad momentum, but it is true some of the performance in terms of net adds in Q1 was related to seasonal factors. In aggregate, we're feeling very good about exceeding the $1.4 million annual target that we set out at the beginning of the year. Broadly speaking, to follow the similar seasonal trends that we've seen in years prior. Maybe I'll pass to Mark to touch on Instant Loans.

Speaker #4: But it is true some of the performance in terms of net ads in Q1 was related to seasonal factors. But in aggregate, we're feeling very good about exceeding the 1.4 million annual target that we set out at the beginning of the year.

Speaker #4: And broadly speaking, to follow the similar seasonal trends that we've seen in years prior. Maybe I'll pass to Mark to touch on instant loans.

Mark Troughton: Hi, Sinjan, it's Mark. I think on Instant Loans, we've been very pleased with the progress there. Just to give you an indication there, we originated $180 million in the quarter of Instant Loans. We expect that to accelerate going forward. Just to remind everybody, Chime Prime members automatically qualify for Instant Loans. We do expect some significant growth to come from the Instant Loan product. In addition to Chime Prime, we're continuing to offer longer duration loans to our repeat borrowers. Those borrowers operate at 50% better loss rates. The model that we've developed here over the last 12 to 18 months seems to be working well.

Speaker #5: Hi, Kanjun. It's Mark. I think on instant loans, we've been very pleased with the progress there. And just to give you an indication, we originated $180 million in the quarter of instant loans.

Speaker #5: We expect that to accelerate going forward. Just to remind everybody, Chime Prime members automatically qualify for instant loans. So we do expect some significant growth to come from the instant loan product.

Speaker #5: In addition to Chime Prime, we're continuing to offer longer-duration loans to our repeat borrowers. Those borrowers operate at 50% better loss rates.

Speaker #5: And so the model that we've developed here over the last 12 to 18 months seems to be working well. In terms of what it can do overall, we're not giving sort of specific guidance, and I do think this will still be small compared to MyPay.

Mark Troughton: In terms of what it can do overall, we're not giving sort of specific guidance and I do think this will still be small compared to MyPay, but I think it's fair to say that we expect Instant Loans can become a material contributor to transaction profit over the coming quarters.

Speaker #5: But I think it's fair to say that we expect instant loans can become a material contributor to transaction profit over the coming quarters.

Speaker #3: All right. That's great stuff. Thank you, guys.

Sinjan Wang: All right, it's great stuff. Thank you, guys.

Speaker #1: Thank you. We'll take our next question from James Fawcett with Morgan Stanley. Please go ahead. Your line is open.

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

James Faucette: Thank you so much, and apologies for the background noise. A couple of quick questions here is that you mentioned that the above $75,000 income cohort was kind of your fastest-growing segment. Can you just help us understand how you think about segmentation? As part of that, I thought the comments around products attached were also very compelling. How do those members, as they come in at that higher income bracket, what is their attach rate or pacing compared to maybe the rest of your customer base as a whole?

Speaker #6: Can you just help us understand how you think about segmentation as part of that? I thought the comments around products attached were also very compelling.

Speaker #6: How is—how do those members, as they come in at that higher income bracket, what is their attach rate or pacing compared to maybe the rest of the customer base as a whole?

Chris Britt: Thanks, James. It's Chris here. Yeah, we're really excited about the progress that we're making across really a wide range of segments that we serve. We reported again, I think this is the third quarter in a row where we've announced that specifically the 75K plus segment of income is the fastest-growing for us. We really have a mainstream service here that appeals to consumers across income segments. I think, you know, we not only see it in our own data, but we also see it in the J.D. Power data, you know, the external data that said that, you know, we open up the most checking accounts. When you double-click into those reports, they actually break out by income levels, and you see Chime also near the top of the list for higher earning demos as well.

Speaker #4: Thanks, James. It's Chris here. Yeah, we're really excited about the progress that we're making across, really, a wide range of segments that we serve.

Speaker #4: We reported, again—I think this is the third quarter in a row—where we've announced that, specifically, the $75K-plus segment of income is the fastest-growing for us.

Speaker #4: When you double-click into those reports, they actually break out by income levels. And you see Chime also near the top of the list for higher-earning demos as well.

Speaker #4: So, when we look at these sort of higher-income demos specifically, we see retention rates that are similar to, or right at the same level as, the rest of the portfolio.

Chris Britt: you know, when we look at the sort of higher income demo specifically, we see retention rates that are similar to, or right at the same level as the rest of the portfolio. just as a reminder, 90%+ retention rates after the first year, and we see very high levels of product attach that are similar to all of our cohorts as they continue to age. just you know, a reminder on that, we have some information in the supplemental that shows how our cohorts continue to drive outsized RPAM as they age. The more tenured cohorts are doing over $400 of RPAM, and we see that members of our member base that attach 6 or more products actually generate $500 or more of RPAM.

Speaker #4: So just as a reminder, 90%+ retention rates after the first year. And we see very high levels of product attach that are similar to all of our cohorts as they continue to age.

Speaker #4: And just a reminder on that, we have some information in the supplemental that shows how our cohorts continue to drive outsized RPAM as they age.

Speaker #4: The more tenured cohorts are doing over $400 of RPAM, and we see that members of our member base that attach six or more products actually generate $500 or more of RPAM.

Chris Britt: You know, obviously, a higher earning customer has the ability to spend more, which is the key driver of our economic model, but it also gives us an ability to offer a wider range of products, including lending and credit products. Now with our Chime Prime product, which gives you 5% in a category of your choice and 3.75% APY, this is extremely powerful and something that is broadly compelling. I think we now have even more reasons for our members to stick with us for life, and I think that's particularly relevant to these higher earning segments as well.

Speaker #4: And now, with our Chime Prime product, which gives you 5% in a category of your choice and 3.75% APY, this is extremely powerful and something that is broadly compelling. And so, I think we now have even more reasons for our members to stick with us for life.

Speaker #4: And I think that's particularly relevant to these higher-earning segments as well.

James Faucette: That's great to hear. I wanted to follow up on one of the other comments you made in terms of accelerating product development and the benefits that you're getting from some of the AI development tools, et cetera. How should we think about kind of what that accelerated product roadmap can look like? I mean, and really I'm trying to think about it from a business and financial standpoint. Does this help accelerate? Is it more so that it improves your ability to attract members, et cetera? Or should we think about it more as accelerating incremental products for your members and in that instead of really accelerating member growth per se, that it's really about finding incremental ways to serve existing members, et cetera? Thanks.

Speaker #5: That's great to hear. And then I wanted to follow up on one of the other comments we made in terms of accelerating product development and the benefits that you're getting from some of the AI development tools, et cetera.

Speaker #5: How should we think about what that accelerated product roadmap can look like? I mean, really, I'm trying to think about it from a business and financial standpoint.

Speaker #5: Does this help accelerate? Is it more so that it improves your ability to attract members, et cetera? Or should we think about it more as accelerating incremental products for your members and you, instead of really accelerating member growth per se—that it's really about finding incremental ways to serve existing members, et cetera?

Speaker #5: Thanks.

Speaker #4: Well, I think we really see it as a force multiplier for us. It starts with the way that we actually get work done around here.

Speaker #4: We talked in our intro remarks about our committees, which is our software factory that allows our developers to basically run what is essentially a multi-agent development pipeline.

Chris Britt: The thing that I think we're, you know, most excited about is the progress that we're making on our actual AI co-pilot called Jade, which is gonna allow our members to not just get financial advice and tips, but also given our unique position of having enjoying this primary account relationship, we can give advice and then allow with their permission to take action on the behalf of our members to help them make financial progress. You should expect to see exciting developments on that front, and I think it's gonna give us one more reason for consumers to come to Chime, use us as a primary bank account.

Speaker #4: So you should expect to see exciting developments on that front. And I think it's going to give us one more reason for consumers to come to Chime, use us as a primary bank account, and I think over time you're going to see that this technology advantage that we have relative to incumbents is going to only expand in the coming quarters as we deploy these AI tools, both in development and in the consumer product itself.

James Faucette: That's great color and commentary there, Chris. Thank you so much.

Speaker #5: That's a great color commentary there, Chris. Thank you so much.

Speaker #4: Sure. Thank you.

Chris Britt: Sure. Thank you.

Speaker #1: Thank you. We'll take our next question from Adam Frisch with Evercore. Please go ahead. Your line is open.

Operator: Thank you. We'll take our next question from Adam Frisch with Evercore. Please go ahead.

Speaker #6: Thanks, guys. Great results here. Two questions for you. One, the fiscal year guide was increased more than the one-QB, which is great to see.

Speaker #6: So the business momentum is pretty obvious. Now, was the second quarter guide more conservative given the seasonality there? And not a read on decelerated momentum in the business or anything like that into the second half?

Speaker #6: And my second question was, for Chime Prime, what are the early adoption eligibility or activation rates? Anything you can tell us about if you're seeing kind of lift in direct deposit conversion and all that kind of good stuff that would go along with that program?

Speaker #6: Thanks.

Speaker #4: Thanks, Adam. Matt here. I'll talk first about the guide, and then I'll hand it over to Chris to talk a little bit about our early results on Chime Prime.

Matt Newcomb: Thanks, Adam. Matt here. I'll talk first about the guide, and then I'll hand it over to Chris to talk a little bit about our early results on Chime Prime. As you mentioned, we're really pre-pleased with really the broad-based business strength we're seeing and the momentum heading into the rest of the year. Just as you said, we're raising our expectations on both revenue and adjusted EBITDA for the full year. As it relates to Q2 specifically, a couple points to keep in mind. First, on the top line, we do face a more difficult year-over-year growth comparable in Q2. In the year-ago period, we saw a 500 basis point revenue growth acceleration from Q1, which was primarily due to how we were scaling MyPay at the time.

Speaker #4: As it relates to Q2 specifically, a couple of points to keep in mind. First, on the top line, we do face a more difficult year-over-year growth comparable in Q2.

Speaker #4: In the year-ago period, we saw a 500-basis-point revenue growth acceleration from Q1, which is primarily due to how we were scaling MyPay at the time.

Speaker #4: So, if you were to actually look at Q1 and Q2 on a two-year stacked basis, what you'd see is that revenue growth in Q2 is very comparable to Q1.

Chris Britt: If you were to actually look at Q1 and Q2 on a two-year stack basis, what you'd see is that revenue growth in Q2 is very comparable to Q1. On top of that, with the launch of Chime Prime, that will also lead to some higher rewards costs beginning in Q2. Those are two factors as it relates to the top line. On bottom line, two things to point out. On a sequential basis, we do expect to see our normal step down from Q1 seasonally high transaction margin. We mentioned in our prepared remarks that we expect transaction margin to land in the 70% to 72% zone for the remaining quarters of the year. Also, as we telegraphed last quarter, we expect to invest behind our Chime Prime launch in Q2, both in sales and marketing and member support.

Speaker #4: On top of that, with the launch of Chime Prime, that will also lead to some higher rewards costs beginning in Q2. So those are two factors as it relates to the top line.

Speaker #4: On the bottom line, two things to point out. On a sequential basis, we do expect to see our normal step-down from Q1 seasonally high transaction margin. We mentioned in our prepared remarks that we expect transaction margin to land in the 70 to 72 percent zone for the remaining quarters of the year.

Speaker #4: And also, as we telegraphed last quarter, we expect to invest behind our Chime Prime launch in Q2, both in sales and marketing, and member support.

Speaker #4: On an incremental basis, we expect adjusted EBITDA margins in the low 50s in Q2. So, from a phasing perspective, this is all in line with our plans.

Chris Britt: On an incremental basis, we expect adjusted EBITDA margins in the low fifties in Q2. From a phasing perspective, this is all, you know, in line with our plans. Again, to reiterate, we're raising our expectations for the full year on both revenue and adjusted EBITDA. On the full year, just as you said, not only are we flowing through our outperformance from Q1, we're raising our expectations for the remainder of the year as well. Maybe I'll just talk about Chime Prime results. Thanks for the question on that. It's really early days, but we're feeling really good. Just as a reminder, we launched Chime Prime to the public on 2 April.

Speaker #4: Maybe I'll talk about Chime Prime results—thanks for the question on that. It's really early days, but we're feeling really good. Just as a reminder, we launched Chime Prime to the public on April 2nd.

Chris Britt: A bit early to get a read, but we are seeing already that it is, it has demonstrated to be effective in driving higher levels of direct deposits. That's, that's a plus, obviously, because as a reminder, you have to do $3,000 of direct deposit to get access to those benefits, including that hefty cashback on Prime of 5%. The other thing that we're excited about is just looking at the retention rates among people who qualify for Prime. We're already seeing that in the first month or so here, that it does appear to drive higher levels of direct deposit retention. At the same time, we're seeing overall continued increase in the adoption of Chime Card.

Speaker #4: So, a bit early to get a read, but we are seeing already that it is demonstrating to be effective in driving higher levels of direct deposits.

Speaker #4: So that's a plus, obviously. Because, as a reminder, you have to do $3,000 of direct deposit to get access to those benefits, including that hefty cash back on Prime, of 5%.

Speaker #4: The other thing that we're excited about is just looking at the retention rates among people who qualify for Prime. We're already seeing that in the first month or so here, that it does appear to drive higher levels of direct deposit retention.

Chris Britt: In other words, Prime members who qualify for Prime are more likely to be adopting Chime Card. They're taking it up at a higher rate, which is a great tailwind for our mix of payments volume, which is increasingly shifting towards credit. These are all, you know, really, really great tailwinds for us. We've got lots of exciting marketing campaigns and product initiatives this, over the next few months. In fact, you'll see tomorrow, during the NBA game, you'll see our first spot with our newest brand ambassador, John Cena, America's champ, who's gonna talk about all the great benefits of Chime Prime and is very relevant to the consumers we serve. Yeah, feeling like, great progress on that front and continued great tailwinds on this mix of spend towards credit.

Speaker #4: They're taking it up at a higher rate, which is a great tailwind for our mix of payments volume, which is increasingly shifting towards credit.

Speaker #4: So these are all really, really great tailwinds for us. We've got lots of exciting marketing, campaigns, and product initiatives over the next few months.

Speaker #4: In fact, you'll see tomorrow during the NBA game, you'll see our first spot with our newest brand ambassador, John Cena, America's Champ, who's going to talk about all the great benefits of Chime Prime and is very relevant to the consumers we serve.

Speaker #4: So yeah, feeling like great progress on that front, and continued great tailwinds on this mix of spend towards credit.

Speaker #5: Great. Thanks, guys.

Adam Frisch: Great. Thanks, guys.

Speaker #4: Thanks, Adam.

Chris Britt: Thanks, Adam.

Speaker #1: Thank you. We'll take our next question from Will Nance with Goldman Sachs. Please go ahead, your line is open.

Operator: Thank you. We'll take our next question from Will Nance with Goldman Sachs. Please go ahead. Your line is open.

Speaker #6: Yeah, thanks for taking the question. Maybe I could just follow up a little bit on some of the commentary around Chime Prime, and I guess specifically on unit economics. You're clearly embedding some incremental customer acquisition costs in the second quarter.

Will Nance: Yeah, thanks for taking the question. Maybe I could just follow up a little bit on some of the commentary around Chime Prime, and I guess specifically on unit economics. You're clearly embedding some incremental customer acquisition costs in Q2. How are you thinking about the impact of that push as it relates to net adds specifically, and particularly in Q2? I mean, is there any expectation of an offset to some of the seasonal weakness that you alluded to earlier in Q2? Just more broadly, what are you looking at to gauge success? Maybe if I could just sneak in a numerical question for Chime Prime. I think you previously talked about like a $175 net interchange for the new card.

Speaker #6: How are you thinking about the impact of that push as it relates to net ads specifically? And particularly in Q2—I mean, is there any expectation of an offset to some of the seasonal weakness that you alluded to earlier in the second quarter?

Speaker #6: And just more broadly, what are you looking at to gauge success? And then maybe if I could just sneak in a numerical question for Chime Prime.

Speaker #6: I think you previously talked about a 175 net interchange for the new card. Taking into account the higher rewards rate, is something in the 130 to 140 range on the new card?

Speaker #6: Is that the right way to think about it? Just correct me if I'm wrong there.

Speaker #4: Thanks for the question as well. This is Matt. I'll chime in on both of those. So yeah, as we discussed, we're really excited about this launch.

Matt Newcomb: Thanks for the questions, Will. This is Matt. I'll chime in on both of those. Yeah, in as we discussed, we're really excited about this launch. We are ramping up a bit of investment behind the launch. That's gonna be really across a wide range of marketing efforts. That's certainly part of our plans and OpEx phasing for the year. As it relates specifically to, you know, the cadence of net adds over the quarter, I think, you know, the best baseline expectation is to take a look at the cadence of seasonal net new adds that we've seen over the last few years.

Speaker #4: We are ramping up a bit of investment behind the launch that's going to be really across a wide range of marketing efforts, and so that's certainly part of our plans and OPEX phasing for the year.

Speaker #4: As it relates specifically to the cadence of net ads over the quarter, I think the best baseline expectation is to take a look at the cadence of seasonal net new ads that we've seen over the last few years.

Speaker #4: Again, Q1 being the outsized one, Q2 being the seasonally lower net ads quarter, whereas Q3 and Q4 are in the middle. So I think that is the right cadence to expect for us.

Speaker #4: That's an improvement from the previous Plus offering. The way to think about take rates is, on our Plus offering, for take rates to be in that 175-basis-point zone, whereas Chime Prime will be slightly below that.

Speaker #4: Not as low as what you alluded to, but slightly below those ranges. Those are the ranges we see today. I'll have to caveat that these will shift a bit and fluctuate a bit over time.

Matt Newcomb: Not as low as what you alluded to, but slightly below those ranges. Those are the ranges we see today. I'll have to caveat that these will shift a bit and fluctuate a bit over time, as members choose the categories that they choose to spend in. That's sort of the appropriate range to think about for us today.

Speaker #4: As members choose the categories that they choose to spend in, that's sort of the appropriate range to think about for us today.

Speaker #6: No, that's awesome. Glad I asked on the Chime Prime side. And then, just maybe sticking with the take rate commentary, I was wondering if you could help pick apart some of the sequential moves in take rates from Q4 to Q1.

Will Nance: No, that's awesome. Glad I asked on the Chime Prime side. Maybe sticking with the take rate commentary, I was wondering if you could help pick apart some of the sequential moves in take rates from Q4 to Q1. I know there's been, I mean, you just alluded to some of the movements in the rewards offerings, but I also know there's some seasonal factors that impact the take rate in Q1. If you could just unpack that and, you know, specifically in the context of credit mix going up, several points sequentially from Q4 to Q1. What are some of the offsets that drove the take rate this quarter? Thank you.

Speaker #6: I know there's been—I mean, you just alluded to some of the movements in the rewards offerings. But I also know there are some seasonal factors that impact the take rate in the first quarter.

Speaker #6: So, if you could just unpack that—and specifically in the context of credit mix going up several points sequentially from Q4 to Q1—what are some of the offsets that drove the take rate this quarter?

Speaker #6: Thank you.

Matt Newcomb: Yeah, great question. There's really sort of three factors to keep in mind as it relates to take rates, you know, specifically in Q1. We've talked about one already, which is, of course, credit mix and how the continued adoption of Chime Card.

Speaker #4: And how the continued adoption of Chime Card is continuing to drive higher credit mix in Q1. That landed right around 25% of total spend, up from about 16% before we launched Chime Card in September.

Matt Newcomb: is continuing to drive higher credit mix. In Q1 that landed right around 25% of total spend, up from about 16%, well, before we launched Chime Card in September. On that front, what I'll say is we're certainly continuing to see momentum both on new members but also existing members. New members coming into Chime, nearly 60% of them are spending with Chime Card, and among those, they're spending about 70% of their Chime spend on the card. For existing members, we're seeing that those who have adopted Chime Card are using it for an increasing portion of their Chime spend. Good momentum on that front. Again, that's helping to drive take rates up in the quarter.

Speaker #4: And on that front, what I'll say is we're certainly continuing to see momentum both on new members, but also existing members. New members coming into Chime—nearly 60% of them are spending with the Chime Card.

Speaker #4: And among those, they're spending about 70% of their Chime spend on the card. And for existing members, we're seeing that those who have adopted Chime Card are using it for an increasing portion of their Chime spend.

Speaker #4: So, good momentum on that front. And again, that's helping to drive take rates up in the quarter. The second thing to point out, as you did, Will, is seasonality.

Matt Newcomb: The second thing to point out, as you did, Will, is seasonality. Interchange rates are another metric in our business that are affected by tax refund-related seasonality in Q1. More specifically, because outsized deposit volumes from tax refunds result in purchase volume with higher ticket prices, what you see is interchange rates, because there's both a variable and a fixed component, are actually a bit lower each Q1. Again, that's a very typical seasonal pattern. We saw that again this year. you know, as I would encourage you to do with the rest of our business, you really got to look at things on a year-over-year basis. Lastly, as we shared in our prepared remarks, we are doing more to experiment with member rewards to drive both new member growth and retention.

Speaker #4: So, interchange rates are another metric in our business that are affected by tax refund-related seasonality in Q1. More specifically, because outsized deposit volumes from tax refunds result in purchase volume with higher ticket prices, what you see is interchange rates—because there's both a variable and a fixed component—are actually a bit lower.

Speaker #4: Each Q1. Again, that's a very typical seasonal pattern. We saw that again this year. So, as I would encourage you to do with the rest of our business, you really got to look at things on a year-over-year basis.

Speaker #4: And then lastly, as we shared in our prepared remarks, we are doing more to experiment with member rewards to drive both new member growth and retention.

Speaker #4: That includes not just the cash back rewards on the Chime Card, which is clearly doing well and resonating with members, but it's also including initiatives like limited-time cash back and referral offers, introductory bonuses, and other initiatives.

Matt Newcomb: That includes not just the cashback rewards on Chime Card, which is, you know, clearly doing well and resonating with members, but it's also including initiatives like limited time cashback and referral offers, introductory bonuses, and other initiatives. These types of member rewards are accounted for as contra revenue, which makes the calculated net take rate of payments revenue on purchase volume look a touch lower. That, of course, is all included in our transaction profit payback period. In the scheme of things, it's fairly small amounts, but we are excited about the potential. That's one additional factor to keep in mind as it relates to take rates.

Speaker #4: These types of member rewards are accounted for as contra revenue, which makes the calculated net take rate of payments revenue on purchase volume look a touch lower.

Speaker #4: That, of course, is all included in our transaction profit payback period. In the scheme of things, it's fairly small amounts. But we are excited about the potential.

Speaker #4: So that's one additional factor to keep in mind as it relates to take rates.

Speaker #1: Thank you. We'll take our next question from Andrew Jeffrey with William Blair.

Operator: Thank you. We'll take our next question from Andrew Jeffrey with William Blair.

Andrew Jeffrey: Thank you. Good afternoon. I wanted to ask a little bit about learnings from variable pricing in MyPay and if that's sort of a lever you can pull to drive monetization. Obviously, the performance there has been terrific with the tenfold increase in transaction profit contribution. I, you know, I wonder if you could just elaborate a little bit on what you've seen and what the outlook is for those initiatives.

Speaker #5: Thank you. Good afternoon. I wanted to ask a little bit about learnings from variable pricing in My Pay, and if that's sort of a lever you can pull to drive monetization. Obviously, the performance there has been terrific, with the tenfold increase in transaction profit contribution.

Speaker #5: But I wonder if you could just elaborate a little bit on what you've seen, and what the outlook is for those initiatives.

Speaker #4: Yeah, sure. I'll pick that one up. Okay. At a high level, we've been very pleased with my pay performance. We're a $400 million business now, 62% transaction profit margins, and still operating at a 1% loss rate here inside in a product that really has been out for less than two years.

Mark Troughton: Yeah, sure. I'll pick that one up. Look, at a high level, we've been very pleased with the MyPay performance. A $40 billion business now, 62% transaction profit margins and still operating at a 1% loss rate here inside in a product that really has been out for less than 2 years. From a pricing perspective, if you remember, as Chris outlined in the early remarks, the real reason we did this was that we were limited by a fixed fee model. The variable fee model enables us to actually give members access to greater MyPay limits earlier in the pay cycle. That effectively, to your point, enables us to actually accelerate advancing more MyPay to members.

Speaker #4: So, from a pricing perspective, if you remember, as Chris outlined in the early remarks, the real reason we did this was that we were limited by a fixed fee model.

Speaker #4: The variable fee model enables us to actually give members access to greater My Pay limits earlier in the pay cycle. And that, effectively, to your point, enables us to actually accelerate advancing more My Pay to members.

Speaker #4: Now, having said that, we obviously want to make sure we're advancing this to actually repay us in this situation. What we're not wanting to do here is to create a debt burden that our members cannot handle.

Mark Troughton: Having said that, you know, we obviously want to make sure we're advancing this to people who can actually repay us in this situation. What we're not wanting to do here is to create a debt burden that our members cannot handle. That's been an important part of developing our underwriting model. You know, I think as you look at the yields here, you guys will probably have noticed that if you looked year-over-year, our yield on MyPay increased about 35%. If you looked at Q1 relative to Q3 last year, it increased about 20%. That was really driven by the price change that came in starting in Q4 and then finishing in Q1. Those were key contributors to that.

Speaker #4: So that's been an important part of developing our underwriting model. And I think, as you look at the yields here, you guys will probably have noticed that if you looked year over year, our yield on My Pay increased about 35%.

Speaker #4: And if you looked at Q1 relative to Q3 last year, it increased about 20%. And that was really driven by the price change that came in starting in Q4 and then finishing in Q1.

Speaker #4: And those were key contributors to that. So that 10x year-over-year growth in the My Pay, the My Pay profit. I think it's also important to continue to bear in mind that even at our 2.6% or 2.7% My Pay yield, we are half the cost of our nearest competitors in the space.

Mark Troughton: That takes year-over-year growth in the MyPay, the MyPay profit. I think it's also important to continue to bear in mind that even at our 2.6% or 2.7% MyPay yield, we are half the cost of our nearest competitors in the space. That continues to be one of the reasons why we bring more people into our platform and continue to attract and retain members year after year after year. I think we feel really good that we now have the pricing structure and the underwriting model in place to start to expand MyPay access to those who can handle it.

Speaker #4: And that continues to be one of the reasons why we bring more people into our profile and continue to attract and retain members year after year after year.

Speaker #4: So, I think we feel really good that we now have the pricing structure and the underwriting model in place to start to expand My Pay Access to those who can handle it.

Speaker #5: I appreciate that, Mark. Thank you. And then, as a follow-up, one of the things that I hear sort of repeatedly from investors is about the purchase volume per MAU KPI, which seems to me to kind of miss the point.

Andrew Jeffrey: I appreciate that, Mark. Thank you. As a follow-up, one of the things that I hear sort of repeatedly from investors is about the purchase volume per MAU KPI, which seems to me to kind of miss the point. Nonetheless, investors seem to care about it. I know there were some seasonal factors influencing Q1. Can you talk a little bit about your expectations for that KPI and whether it's, you know, something that should maybe get as much attention or not get as much attention as it seems to?

Speaker #5: Nonetheless, investors seem to care about it. And I know there were some seasonal factors influencing one quarter. Can you talk a little bit about your expectations for that KPI, and whether it's something that should maybe get as much attention—or not get as much attention—as it seems to?

Speaker #4: To pick up with Alan—thanks, Andrew—so at the highest level, what I would say first is, as we've shared the last few quarters, we're seeing very consistent overall trends in purchase volumes.

Matt Newcomb: I'll pick up that one. Thanks, Andrew. You know, at the highest level, what I would say first is, as we've shared the last few quarters, we're seeing very consistent overall trends in purchase volumes. I would say that really is one of the key advantages of our business model and our focus on earning primary account relationships. Our spend is highly concentrated in nondiscretionary everyday categories, that's been, you know, that's a type of spend that's very resilient across business cycles. If you take a look at our, at our cohorts, our tenured cohorts, we're seeing very consistent growth in spending. That's true across both discretionary and nondiscretionary categories. It's true across income groups. At the same time, we're seeing account balances increase year over year.

Speaker #4: And that's been the type of spend that's very resilient across business cycles. If you take a look at our cohorts, our tenured cohorts, we're seeing very consistent growth in spending. That's true across both discretionary and nondiscretionary categories.

Speaker #4: It's true across income groups. At the same time, we're seeing account balances increase year over year. Again, this is a healthy consumer—willing and able to spend.

Matt Newcomb: Again, this is a healthy consumer willing and able to spend. That's translated into a pretty consistent pace of payments in OIT revenue growth. That grew 19% year over year in Q1. As it relates to the per active metric specifically, you know, as we shared previously, the reason that purchase volume plus OIT volume per active is down on a year-over-year basis is largely the result of these early engagement initiatives that have been very successful for us. They've helped us engage new members we wouldn't have otherwise engaged. This has strengthened our unit economics. That being said, it has had the effect of diluting the headline purchase volume per active metric since these initiatives have driven faster growth of these newly engaged actives who aren't yet spending as much on Chime. It's creating a larger denominator.

Speaker #4: And that's translated into a pretty consistent pace of payments and OIT revenue growth that grew 19% year over year in Q1. As it relates to the per active metric specifically, as we've shared previously, the reason that purchase volume plus OIT volume per active is down on a year-over-year basis is largely the result of these early engagement initiatives that have been very successful for us.

Speaker #4: We see a lot of resilience and consistent trends.

Speaker #1: Thank you. We'll take our next question from Timothy Chioda with UBS. Please go ahead.

Operator: Thank you. We'll take our next question from Timothy Chiodo with UBS. Please go ahead.

Speaker #3: Great, thanks a lot. So, on Chime Prime, I know the overall paybacks are very attractive—five, six quarters. The LTV/CAC is eight or higher.

Timothy Chiodo: Great. Thanks a lot. On Chime Prime, I know the overall paybacks are very attractive, 5 to 6 quarters. The LTV to CAC is 8 or higher. Those are great numbers. For Chime Prime, I heard you say obviously a much higher RPAM. I also heard that some of the early data suggests that the retention is even higher. Absent a meaningfully higher CAC, that would suggest really, really attractive LTV to CAC payback. I was wondering if you could talk a little bit about that CAC and just how much higher it might be for these clearly more attractive customers and comments that clearly that higher CAC is well worth it in the context of the RPAM and the retention. Thanks.

Speaker #3: Those are great numbers. For Chime Prime, I heard you say, obviously, a much higher RPAM. And I also heard that some of the early data suggests that the retention is even higher.

Speaker #3: So absent a meaningfully higher CAC, that would suggest really, really attractive LTV to CAC payback. So I was wondering if you could talk a little bit about that CAC and just how much higher it might be for these clearly more attractive customers, and cognizant that clearly, that higher CAC is well worth it.

Speaker #3: In the context of the RPAM and the retention, thanks.

Speaker #4: Thanks, Tim. It's Matt here again. We're really excited about Chime Prime. As Chris mentioned, early signs are showing a lot of potential benefits across the business.

Matt Newcomb: Thanks, Tim. It's Matt here again. We're really excited about Chime Prime. As Chris mentioned, early signs of a lot of potential benefits across the business. That's true across retention. That's true across Chime Card attach. That's true across direct deposit conversion and attach. Yeah, we're very excited about the potential there. That being said, it's very early days here. We've just started to roll this out. It is too early to give you a sense specifically on, you know, sort of what the unit economic equation specific to Chime Prime looks like. Again, we think this is a great add to our overall product mix and value props. We're excited to keep you posted in the coming quarters.

Speaker #4: That's true across retention, that's true across Chime card attach, that's true across direct deposit conversion and attach. And so, yeah, we're very excited about the potential there.

Speaker #4: That being said, it's very early days here. We've just started to roll this out. It is too early to give you a sense specifically on sort of what the unit economic equation specific to Chime Prime looks like.

Speaker #4: But again, we think this is a great add to our overall product mix and value props, and we're excited to keep you posted in the coming quarters.

Speaker #3: Thank you.

Timothy Chiodo: Thank you.

Speaker #1: Thank you. We'll take our next question from Patrick Moley with Piper Sandler. Please go ahead. Your line is open.

Operator: Thank you. We'll take our next question from Patrick Moloney with Piper Sandler. Please go ahead. Your line is open.

Speaker #6: Hey, guys. This is Will Cox for Patrick Moley. Thanks for the question. As it relates to Chime Enterprise, how are you thinking about any sort of future percentage of total member ads coming from that segment?

Patrick Moley: Hey, guys, this is Patrick Moley. I'm from Patrick Moloney. Thanks for the question. As it relates to Chime Enterprise, are you thinking about any sort of future percentage of total member adds coming from the segment? What's the CAC relative to other traditional channels for member acquisition? Thank you.

Speaker #6: And what's the CAG relative to other traditional channels for member acquisition? Thank you.

Speaker #4: Hi, Will. It's Mark here. I'll pick that up. I think for the enterprises, progressing really well, as Chris indicated in the prepared remarks. The value prop is really strong.

Mark Troughton: Hi, Will. It's Mark here. I'll pick that up. I think, look, Chime Enterprise is progressing really well, as Chris indicated in the prepared remarks. The value prop is really strong. It's a broader financial wellness product. The EWA is totally fee-free. You know, anytime we approach a large enterprise, we find that 5% to 10% of their employee base is already on direct deposit with Chime, which gives us an edge. It's resonating really well in the market. It's still early days for us. You know, these enterprise sales cycles are quite long, it takes a little while to get the boat out of the water.

Speaker #4: It's a broader financial wellness product. The EWA is totally fee-free. And anytime we approach a large enterprise, we find that 5 to 10 percent of their employee base is already on direct deposit with Chime, which gives us an edge.

Speaker #4: So, it's resonating really well in the market. It is still early days for us. These enterprise sales cycles are quite long, and it takes a little while to get the boat out of the water.

Speaker #4: I think the good news is we think the boat is out of the water. And that's actually translating into a good pipeline here, with a steady drumbeat of conversions.

Mark Troughton: I think the good news is, we think the boat is out of the water, and that's actually translating into a good pipeline here, with a steady drumbeat of conversions, including some large ones like we're announcing today with First Student, which is the largest student transportation company in the US. Yeah, the momentum is strong. As we've indicated, it's one of our priorities. We're not giving specific guidance with respect to Enterprise's contribution to net add. We think the fact that it's a priority will probably tell you that we believe it has the potential for it to be a meaningful contributor. We're not giving specific guidance related to that. As it relates to CAC, you know, the CAC on Enterprise is materially lower.

Speaker #4: Including some large ones like we are announcing today with First Student, which is the largest student transportation company in the U.S. So the momentum is strong, as we've indicated.

Speaker #4: It's one of our priorities. We're not giving specific guidance with respect to enterprises' contribution to net ads. We think the fact that it's a priority will probably tell you that we believe it has the potential to be a meaningful contributor.

Speaker #4: But we're not giving specific guidance related to that. As it relates to CAG, the CAG on enterprise is materially lower. But really, it's a CAG—there really is a fixed cost of the enterprise division and the sales cycle, rather than a sort of variable CAG.

Mark Troughton: Really, the CAC there really is a fixed cost of the Enterprise division and the sales cycle rather than a sort of variable CAC. That CAC we'll start off higher, although considerably lower than our consumer channel, and then it will reduce as we get more adds through that same sales cost base. That's how we think of the enterprise channel.

Speaker #4: So, that CAG will start off higher, although considerably lower than our consumer channel. And then it will reduce as we get more ads through that same sales cost base.

Speaker #4: That's how we think of the enterprise channel.

Speaker #1: Thank you. We'll take our next question from Alex McGrath with KeyBank Capital Markets. Please go ahead, your line is open.

Operator: Thank you. We'll take our next question from Alex McGrath with KeyBanc Capital Markets. Please go ahead. Your line is open.

Speaker #5: Hi, guys. Thanks for taking my question. More questions—maybe two if I can squeeze a second one in. First, on Prime for Chris. I'm curious, when we think about the ramp of this offering and some of the forthcoming products or features that you mentioned outside of the really strong initial offering, how do you think about the catalyst that those forthcoming products represent, whether it's account types or, at some point, more unsecured credit? Just be curious to understand how those can act as catalysts for the ramp as we think forward.

Alex McGrath: Hi, guys. Thanks for taking my question, or questions, maybe two, if I can squeeze a second one in. First on Prime for Chris. I'm curious, when we think about the ramp of this offering and some of the forthcoming products or features that you mentioned outside of the really strong initial offering, how do you think about the catalyst that those forthcoming products represent? Whether it's account types or, you know, at some point, more unsecured credit. Just be curious to understand how those can act as catalysts for the ramp as we think forward.

Chris Britt: Yeah, we think that the progress we've made year to date has been great. This new offering is incredibly compelling. I mean, if you think about, you know, the cost of fuel today, if you're a Chime member that selects the gas category and you're spending, say, $800 a month on gas, you're getting $40 cash back. It's a really, really powerful offering that I think is broadly appealing, and that's very consistent with how we're thinking about our product roadmap. We wanna create an even broader set of products for our members to engage with us and not just to avoid fees and not just to get access to short-term liquidity and credit building, but to also play a role in helping to shape the long-term financial health and progress for our members.

Speaker #4: It's a really powerful offering that I think is broadly appealing, and that's very consistent with how we're thinking about our product roadmap. We want to create an even broader set of products for our members to engage with us—not just to avoid fees and not just to get access to short-term liquidity and credit building, but also to play a role in helping to shape the long-term financial health and progress for our members.

Chris Britt: That's why we'll be launching investment accounts, a combination of allowing people to buy equities directly. We'll have a robo-offering for people who are maybe, you know, feeling a little less sophisticated or less comfortable investing in the market to try to get them moving in that direction. You know, we're really excited about using AI to guide people towards all of these exciting new products. We think that as we evolve them, and we offer an even more comprehensive set of services, that we can truly be even more broadly appealing to consumers, even in the 100K plus category. We have the core products and services to meet their needs.

Speaker #4: And we're really excited about using AI to guide people towards all of these exciting new products. We think that as we evolve them, and we offer an even more comprehensive set of services, that we can truly be even more broadly appealing to consumers, even in the $100K-plus category.

Speaker #4: We have the core products and services to meet their needs. So I think the combination of these services together will allow us to—we'll be a catalyst to drive even more awareness of Chime's product offerings and open up new segments of the population who've heard of Chime to really take another look at it.

Chris Britt: I think, I think the combination of these services together will allow us to, will be a catalyst to drive even more awareness of Chime's product offerings and open up new segments of the population who've heard of Chime to really take another look at it. I think you're already seeing the progress in the net adds that we're adding each quarter. Expect more and more product offerings coming down the pike, including more products in the area of credit and lending. We're gonna keep, you know, pushing on those fronts as well. I think Mark mentioned that, you know, the Chime Prime tier comes with a, you know, instant approved instant loan product.

Speaker #4: And I think you're already seeing the progress in the net ads that we're adding each quarter. So expect to see more and more product offerings coming down the pike, including more products in the area of credit and lending.

Speaker #4: We're going to keep pushing on those fronts as well. I think Mark mentioned that the Chime Prime tier comes with an instant-approved, instant loan product.

Speaker #4: And so, we're going to continue to have credit and lending products to serve that segment as well. And certainly, down the line, we anticipate having some form of an unsecured credit card product as well.

Speaker #4: But that's not something we have on the sort of short-term roadmap.

Speaker #5: Understood. I appreciate that. And then maybe if I could squeeze one in just on underwriting, just having heard from some peers in the ecosystem talk about step changes in underwriting model quality.

Alex McGrath: Understood. I appreciate that. Then maybe if I could squeeze one in just on underwriting. Just having heard from some peers in the ecosystem talk about step changes in underwriting model quality as a result of AI-related improvements. I'm just curious to maybe sort of a pulse check. Obviously, you guys have made a ton of progress and, you know, hitting target loss rates around MyPay. Just sort of curious to pulse check the maturity of models and if there are opportunities that you all see, you know, that didn't exist 12 months ago with respect to model quality. Thank you.

Speaker #5: As a result of AI-related improvements, I'm just curious to maybe sort of do a pulse check. Obviously, you guys have made a ton of progress and are hitting target loss rates around my pay.

Speaker #5: But just sort of curious to pulse check the maturity of models, and if there are opportunities that you all see that didn't exist 12 months ago with respect to model quality.

Speaker #5: Thank you.

Speaker #4: Yeah, I'll pick that one up. I think, look, two things. One, it's important to just bear in mind the key advantages we have on the underwriting side, right?

Speaker #4: The first one is we, as a primary account, we have a lot of unique data. Secondly, we're actually underwriting against a recurring direct deposit.

Speaker #4: So we sit at the top of the repayment stack. Those are two very, very significant advantages that we leverage. In addition to that, we obviously continue to use those data signals through increasingly sophisticated models.

Speaker #4: We've been using advanced machine learning on these things for some time. We do think there will be increased advantages with AI, and we will want to continue to sort of lead that.

Mark Troughton: you know, I think if you have a look at our underwriting performance and you look at something like MyPay, a year ago, we were sitting at 1.7% loss rate, and now we're sitting around 1%. I think that while there are still meaningful improvements ahead with AI, I think a lot of advantage is coming from the unique data and the position we have in the recurring direct deposit stack.

Speaker #4: But I think if you have a look at our underwriting performance and you look at something like MyPay, a year ago we were sitting at a 1.7% loss rate, and now we're sitting around 1%.

Speaker #4: So, I think that while there are still meaningful improvements ahead with AI, I think a lot of the advantage is coming from the unique data and the position we have in the recurring direct deposit stack.

Operator: Thank you. At this time, we've reached our allotted time for questions. I'll now turn the call back over to Chris Britt for any additional or closing remarks.

Speaker #1: Thank you. At this time, we've reached our allotted time for questions. I'll now turn the call back over to Chris Britt for any additional or closing remarks.

Speaker #4: Great. Thanks again. I want to congratulate the team on a great quarter, and I’m looking forward to seeing you all on the road.

Chris Britt: Great. Thanks again. I wanna congratulate the team on a great quarter, and looking forward to seeing you all on the road.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

More CHYM earnings call transcripts

Browse all earnings call transcripts

Q1 2026 Chime Financial Inc Earnings Call

Request TrialDemo

Event Details

Chime Financial

CHYM

Earnings

Q1 2026 Chime Financial Inc Earnings Call

Wednesday, May 6th, 2026 at 9:00 PM

Open Event Documents

Search Transcript

Enter a search term to find quotes

Chime Financial

Earnings