Chime Financial, Inc.
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OVERVIEW
We created Chime to help everyday people make progress in their financial lives. For too long, millions of Americans, including the nearly 75% of the adult population that earn up to $100,000 annually, have struggled with bank relationships that are not always aligned with their best interests. So we set out to create a new approach, built on a foundation of trust rather than fine print and punitive fees. Through our direct relationships with FDIC-insured bank partners, we deliver easy-to-use products that address the most critical financial needs of everyday people — spending, saving, accessing liquidity, and building credit, all while avoiding punitive fees.
Since our founding, we are proud to have created some of the most impactful product innovations in consumer banking and payments. Through our broad suite of products, we have built trusted relationships with 9.5 million Active Members, with the majority of them relying on Chime to serve as their primary financial relationship as of December 31, 2025. Being the primary account relationship for our members establishes Chime as their central financial hub, and we believe these relationships are the most valuable in consumer financial services. As the central hub, Chime becomes the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement.
Our proprietary technology platform and our digital-first approach give us both a radical cost-to-serve advantage and greater innovation velocity compared to traditional banks. This structural advantage is complemented with a payments-based business model that is aligned with our members: we primarily generate revenue when members spend using a Chime-branded debit or credit card, based on fees paid via the card networks, rather than fees paid to us by our members. Recurring paycheck deposits through our platform also provide us with an advantage to offer our members access to valuable, short-term credit and liquidity products at scale given the privileged repayment position for such products.
In contrast, traditional banks face structural limitations that prevent them from effectively serving everyday people. Traditional banks rely on a net interest margin-based business model, primarily monetizing customer deposits and lending. This approach works well for the most affluent customers with higher credit scores, who have high deposit balances and large borrowing needs, but is ineffective for everyday Americans, most of whom live paycheck-to-paycheck and often have more modest account balances and limited credit histories. While traditional banks focus on serving people with the largest deposits and highest credit scores, we will continue to raise the bar in financial services for everyday people.
We are bold in our ambition to build a generational consumer brand that empowers everyday Americans to make progress in their financial journeys. In 2025, Time Magazine named Chime as the top brand in the banking category in America. We believe we are setting a new standard in consumer financial services built on free or low-cost, innovative products and a member-obsessed philosophy. We are just getting started.
For definitions of the key metrics used in this section, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Metrics and Non-GAAP Financial Measures.”
OUR MEMBERS ARE EVERYDAY AMERICANS
Everyday people are the individuals we all have the privilege of interacting with day to day. They work in healthcare, retail, hospitality, a variety of corporate jobs, and are essential workers who form the heart and soul of America. They are ambitious, resilient, and hustle to move their lives forward. Too often, however, their financial realities can make this progress challenging to achieve and easy to lose. In the United States, 196 million people — nearly 75% of the adult population — earn up to $100,000 annually. We primarily focus on attracting and serving these everyday Americans earning up to $100,000 annually. Many live paycheck-to-paycheck, often spending as much as — or more than — they earn each month to support themselves and their families. Everyday people need solutions that help avoid fees, bridge the gaps between paychecks, manage unexpected expenses, build credit, and
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grow savings for life’s major milestones. Yet, traditional banks have consistently fallen short in addressing these pressing needs for everyday Americans.
OUR COMPETITIVE ADVANTAGES
A focus on primary account relationships
We designed our business to develop primary account relationships with our members, establishing Chime as their central financial hub. When we serve our members in a primary account relationship, we earn deep and habitual engagement and “top-of-wallet” card spend for their everyday, largely non-discretionary expenses. These relationships also provide a privileged repayment advantage for liquidity products and rich, first-party data, including member income, spending, transaction, social graph, and other engagement data, which enables product innovation. As we expand our platform offerings, we believe these relationships will help drive Active Member growth, position us well to continue to cross-sell additional products, and improve our ARPAM.
A commitment to innovate on new, member-aligned products
Since our founding, we have built a track record of launching pioneering products to address the most critical financial needs of everyday Americans — spending, saving, accessing liquidity, and building credit, all while avoiding punitive fees. We believe our ability to launch free or low-cost, innovative products such as Get Paid Early, SpotMe, Credit Builder, Chime Card and MyPay has allowed us to build a substantial and growing competitive advantage over traditional banks. Additionally, with the development and launch in 2024 of ChimeCore, our proprietary payment processor and ledger, we have built a foundation for even faster future product innovation to grow our advantage relative to traditional banks over time.
A radical cost-to-serve advantage
We constructed our model to serve everyday Americans, which meant taking a digital-first approach and building differentiated technology that allows us to serve our target audience at a significant cost advantage compared to traditional banks. Our digital-first approach has allowed us to reduce the significant expenses associated with bank branches and ATMs. Through our direct relationships with our bank partners, we conveniently offer access to a suite of banking products on our mobile application, while providing our members with nationwide access to physical locations to conveniently withdraw cash and make cash deposits where and when members need to through our partnerships with ATM and cash deposit networks. We have invested substantially over several years in our cloud-native technology platform, including ChimeCore, to be able to efficiently develop products and process and record financial transactions in-house. By operating our technology platform in-house, we are able to focus a greater portion of our technology spend on product innovation, avoid costly maintenance of legacy systems, and reduce or eliminate reliance on third-party vendors in areas such as transaction processing, financial ledgering, technology and product development, and technical operations.
A loved and trusted brand
In a category where everyday Americans are regularly dissatisfied and lack trust, we deliver products that our members love and that address their critical needs, resulting in Chime’s brand leadership. In 2025, Time Magazine named Chime as the top brand in the banking category in America. Recently, J.D. Power named Chime the leader in U.S. checking account openings, ahead of all other financial institutions. Furthermore, in 2026, NerdWallet named Chime the best checking account and best online banking experience. We have focused our brand strategy on winning brand ownership in the categories that matter most to everyday Americans: not having hidden fees, getting paid earlier, helping members build their credit scores. Our passionate community means our members are our biggest brand ambassadors. Chime members love and trust us and they pay it forward.
OUR GROWTH STRATEGIES
We believe that we are in the early stages of addressing our significant serviceable and total addressable market opportunities. Key elements of our growth strategy include our plans to:
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Attract and Acquire Active Members
We see a substantial opportunity to grow our Active Members through our comprehensive marketing strategy, which includes social media engagement, product-led marketing, data-driven member acquisition, and member referrals. This strategy enables us to efficiently acquire new Active Members through both paid and organic channels. We aim to develop primary account relationships that drive deep levels of engagement and “top-of-wallet,” recurring card spend, fueling our payments-driven revenue model.
Increase Adoption of Our Existing Products
We have an opportunity to deepen our relationship with our members by increasing their adoption of existing products. As Active Members engage with more products, they increase their Purchase Volume and generate greater platform-related revenue, both of which drive higher ARPAM.
Expand Our Market Opportunity
•Develop New Products. We intend to continue expanding our product offerings to address additional financial needs of everyday Americans. We believe that over time we can increase our total addressable market opportunity by offering products in areas such as unsecured credit cards; longer term saving; investing and wealth management; insurance; and enhanced member rewards.
•Expand our Audience. As we expand our product offerings and the range of financial needs we address, we believe we can attract and acquire more members across a broader range of incomes, including those who earn up to $200,000 annually, who have many of the same financial needs as our current target demographic. We believe that as we broaden our platform and address more complex financial challenges for our members, we will also be well-positioned to address the financial needs of a wider audience.
Expand into the Employer Channel with Chime Enterprise
In 2024, we established Chime Enterprise in order to offer a suite of innovative products, including MyPay, through employers via Chime Workplace, an employee financial wellness solution. We believe that through the employer channel, we can access a large pipeline of potential new members at an efficient cost to drive continued Active Member growth. In 2025, we launched MyPay at Work. We’ve signed a number of employer partners and human capital management platforms. We are early in our journey with Chime Enterprise.
Selectively Pursue Strategic Investments and Acquisitions
While we are primarily focused on organic and member-driven growth, we may opportunistically pursue strategic investments or acquisitions that complement and enhance our platform. In the past, we have acquired and integrated Salt Labs, an enterprise employee rewards company, Charlie, a personal finance app, and Pinch, a credit-building tool that reports rent payments.
OUR PRODUCTS
We have built a suite of affordable, easy-to-use products that address the most critical financial needs of everyday people. In a landscape dominated by high-cost providers, Chime is making banking free or low-cost for everyday Americans. All of our products are conveniently available through our mobile application.
Spending
The spending products we offer through our platform provide our members access to FDIC-insured checking accounts and linked debit cards, nationwide ATM and cash deposit networks, and early access to their paycheck, allowing them to confidently manage their money and pay for everyday expenses.
•Checking Account. Chime offers access to full-featured, FDIC-insured checking accounts provided through our platform by one of our bank partners, The Bancorp Bank, N.A. or Stride Bank, N.A. These checking
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accounts offer members access to essential features, all while benefiting from no monthly maintenance fees or minimum balance requirements.
•Chime Debit Card. Checking accounts are complemented by Chime Debit Cards, which are Visa-branded debit cards issued by our bank partners. Chime Debit Cards are accepted wherever Visa debit cards are accepted.
•ATM and Cash Deposit Network. We provide our members access to nationwide networks that allow them to conveniently deposit and withdraw cash from their accounts, including ATMs that are Chime branded.
•Get Paid Early. Get Paid Early provides members that direct deposit through Chime access to the full value of their paycheck up to two days before their scheduled pay date.
•Outbound Instant Transfer. Outbound Instant Transfer gives members the ability to push money instantly to external accounts directly from the Chime app, offering a more convenient member experience.
•Chime Plus. Chime Plus is a fee-free, premium membership tier that includes additional features designed to enhance our members’ mobile banking experiences. Exclusively available to members who set up a qualifying direct deposit through Chime, Chime Plus members receive an expanded set of financial tools, perks, and services, including cash back on eligible Chime Card spend, a higher savings APY and interest rates, exclusive cashback offers through Chime Deals, and priority member support.
Liquidity
The liquidity products we offer through our platform, including SpotMe, MyPay, and Instant Loans, provide our eligible members access to short-term liquidity when they need it most for free or at a low cost.
•SpotMe. SpotMe allows eligible members to overdraft fee-free within their available limit. SpotMe can be used for debit card purchases, Credit Builder and Chime Card secured credit card purchases, cash-back transactions, and ATM withdrawals.
•MyPay. MyPay allows eligible members to access a portion of their earned pay on demand before payday for free within 24 hours, or instantly for a low fee.
•Instant Loans. Instant Loans allows eligible members to borrow funds repaid in equal monthly installments over a specified period. Eligible members receiving direct deposit may be pre-approved for a loan and get notified of their eligibility within the Chime app.
Building Credit
•Chime Card and Credit Builder Credit Card. The secured Chime Visa Credit Card and secured Chime Credit Builder Visa Credit Card are issued by our bank partners and help our members build credit through their everyday spend without paying fees or interest. Unlike unsecured credit cards and many other secured credit cards, Chime Card and Credit Builder secured credit cards have no annual fees or late fees, no interest charges on missed payments, and no application fees. Chime Card and Credit Builder secured credit cards are accepted wherever Visa credit cards are accepted.
•FICO Score Tracking. Powered by Experian, Chime enables members using Credit Builder and Chime Card to view their FICO Score, seamlessly track their credit progress, and receive automatic alerts on credit score fluctuations directly through their Chime mobile application.
Savings and Perks
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals.
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This section presents management’s perspective on our financial condition and results of operations. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Annual Report on Form 10-K, and should be read in conjunction with our consolidated financial statements and notes elsewhere in this Annual Report. This discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed elsewhere, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Chime is a technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. We are not a Member of the FDIC, and FDIC-insured accounts are provided by our bank partners.
Overview
We created Chime to help everyday people make progress in their financial lives. For too long, millions of Americans, including the nearly 75% of the adult population that earn up to $100,000 annually, have struggled with bank relationships that are not always aligned with their best interests. So we set out to create a new approach. We are an asset-light technology company that has pioneered a business model that succeeds when we earn and maintain our members’ trust. Through our direct relationships with FDIC-insured bank partners, we deliver products that address the most critical financial needs of everyday people across spending, saving, accessing liquidity, and building credit, all while avoiding punitive fees.
Through our broad suite of products, we have built trusted relationships with 9.5 million Active Members as of December 31, 2025. The majority of our Active Members rely on Chime to serve as their primary financial relationship, which we believe are the most valuable relationships in consumer financial services. As our members’ central financial hub, Chime becomes the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement and exceptional member satisfaction.
Our proprietary technology platform and our digital-first approach give us both a radical cost-to-serve advantage and greater innovation velocity compared to traditional banks. We believe these advantages will improve over the long term as we continue to scale. This structural advantage is complemented with a payments-based business model that is aligned with our members: we primarily generate revenue when members spend using a Chime-branded debit or credit card, based on fees paid via the card networks, rather than fees paid to us by our members.
Importantly, our members typically use Chime-branded debit and credit cards for non-discretionary expenses, such as food, groceries, gas, and utilities, which makes our payments revenue more resilient to changes in economic conditions. Recurring paycheck deposits through our platform also provide a first-in-line repayment position for Chime-branded liquidity products. This enables us to offer our members access to valuable, short-term credit and liquidity products at scale when our members need it most, while maintaining low loss rates.
We are bold in our ambition to build a generational consumer brand that empowers everyday Americans to make progress in their financial journeys.
Recent Developments
On June 13, 2025, we closed our IPO of 36,800,000 shares of Class A common stock at a public offering price of $27.00. 30,700,765 shares of Class A common stock were sold by us, including 4,800,000 shares pursuant to the exercise of the option granted to the underwriters to purchase additional shares, and 6,099,235 shares of Class A common stock were sold by selling stockholders. We received net proceeds from the IPO of $770.6 million after deducting underwriting discounts and offering costs. In connection with the IPO, 32,182,289 shares of our Class A common stock owned by Christopher Britt, our co-founder, Chief Executive Officer and Chairman, and Ryan King,
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our co-founder and a member of our board of directors (our “Co-Founders”) and their related entities were exchanged for an equivalent number of shares of Class B common stock.
Key Metrics and Non-GAAP Financial Measures
We review several operating and financial metrics, including the key metrics set forth below, to help us evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies. Our definitions for such key metrics may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of our key metrics as comparative measures.
Key Metrics
| Year Ended December 31, | ||||||||||||||||||||||||||
| (in millions, except for Average Revenue per Active Member) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Purchase Volume | $ | 133,680 | $ | 115,152 | $ | 92,396 | ||||||||||||||||||||
Active Members(1) | 9.5 | 8.0 | 6.6 | |||||||||||||||||||||||
Average Revenue per Active Member (ARPAM)(1) | $ | 257 | $ | 245 | $ | 212 | ||||||||||||||||||||
(1)Presented as of the fourth quarter of each year.
Purchase Volume
We define Purchase Volume as the total dollar value of member purchase transactions using Chime-branded debit or credit cards during a given period, net of any adjustments or refunds. Purchase Volume is a key driver of payments revenue, because the interchange fees upon which our payments revenue is based are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card networks. Purchase Volume is also a key indicator of aggregate member engagement. Purchase Volume does not include other types of transaction volumes such as deposits, ATM withdrawals, SpotMe and MyPay advances, sending or receiving funds with Pay Anyone, outbound instant transfers, and other types of ACH or direct debit transfers. Purchase Volume exhibits seasonality, most prominently in the first quarter of each year due to increased spending following our members’ receipt of tax refunds.
Active Members
We define an Active Member as a member who has initiated a money movement transaction on our platform in the last calendar month of the applicable period. Member-initiated money movement transactions include, but are not limited to, purchases with Chime-branded debit or credit cards, funding a member account, withdrawing funds from an ATM, sending or receiving funds with Pay Anyone, or taking a MyPay advance. Active Members are a key indicator of the scale of our engaged member base. The number of Active Members exhibits modest seasonality, with a slight increase typically occurring in the first quarter of a year, when our members often receive tax refunds through their Chime account, which has resulted in increased money movement transactions, including a larger number of members re-engaging with us on an Active basis.
Average Revenue per Active Member (“ARPAM”)
We define Average Revenue per Active Member (“ARPAM”) as revenue generated in the calendar quarter multiplied by four and divided by the average of the number of Active Members at the end of the prior quarter and the end of the current quarter. ARPAM is a key indicator of our ability to monetize member engagement, as it captures both the impact of payments revenue from Purchase Volume as well as the monetization of products that contribute to platform-related revenue. Since ARPAM historically has largely been driven by Purchase Volume, the seasonality exhibited by Purchase Volume, which occurs most prominently in the first quarter of each year due to increased spending following our members’ receipt of tax refunds, has resulted in quarterly fluctuation of ARPAM.
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Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to facilitate analysis of our financial trends and for internal planning and forecasting purposes.
We use transaction profit, transaction margin, adjusted EBITDA, and adjusted EBITDA margin in conjunction with GAAP measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions. We believe that our non-GAAP financial measures provide useful information to investors, analysts and others about our business and financial performance, enhance their overall understanding of our performance and can assist in providing a more consistent and comparable overview of our financial performance across periods. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected on our consolidated statements of operations. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view our non-GAAP financial measures in conjunction with their respective most directly comparable financial measure calculated in accordance with GAAP.
Transaction Profit and Transaction Margin
We define transaction profit as gross profit less transaction and risk losses. We define transaction margin as transaction profit divided by revenue. We believe that transaction profit and transaction margin are key measures of the incremental profit generated by member transactions.
The following table presents a reconciliation of gross profit to transaction profit:
| Year Ended December 31, | ||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Gross profit | $ | 1,923,723 | $ | 1,465,758 | $ | 1,058,718 | ||||||||||||||||||||
| Gross margin | 88 | % | 88 | % | 83 | % | ||||||||||||||||||||
| Adjusted for: Transaction and risk losses | 407,323 | 219,687 | 152,375 | |||||||||||||||||||||||
| Transaction profit | $ | 1,516,400 | $ | 1,246,071 | $ | 906,343 | ||||||||||||||||||||
| Transaction margin | 69 | % | 74 | % | 71 | % | ||||||||||||||||||||
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Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income (loss), adjusted for (i) depreciation and amortization expense, (ii) other income (expense), net, (iii) provision (benefit) for income taxes, (iv) stock-based compensation expense including related payroll tax, and (v) certain expenses that do not reflect our core operations and may vary significantly from period to period, including restructuring charges, impairment charges, stock-based charitable expense, and certain legal and regulatory charges, as applicable. We have also made an adjustment for one-time costs associated with ceasing the use of our third-party payment processor.
We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We believe that adjusted EBITDA and adjusted EBITDA margin are key measures of our operating performance, and management uses these measures to formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We have increased our adjusted EBITDA margin as a result of Active Member and Purchase Volume growth, realized operating leverage through increased scale, and from efficiently managing our operating costs.
The following table presents a reconciliation of net loss to adjusted EBITDA for each of the periods indicated:
| Year Ended December 31, | ||||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | 2023 | |||||||||||||||||||||||||
| Net loss | $ | (1,009,936) | $ | (25,344) | $ | (203,202) | ||||||||||||||||||||||
| Net margin | (46) | % | (2) | % | (16) | % | ||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||
| Depreciation and amortization expense | 30,000 | 25,370 | 12,937 | |||||||||||||||||||||||||
Other (income) expense, net(1) | (30,874) | (39,465) | (32,817) | |||||||||||||||||||||||||
Provision for income taxes | 831 | 2,610 | 234 | |||||||||||||||||||||||||
Stock-based compensation expense and related payroll tax | 1,092,844 | 29,845 | 26,035 | |||||||||||||||||||||||||
Stock-based charitable contribution expense | 11,168 | — | — | |||||||||||||||||||||||||
Certain legal and regulatory charges(2) | — | — | 7,500 | |||||||||||||||||||||||||
Third-party processor termination costs(3) | 32,564 | — | — | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 126,597 | $ | (6,984) | $ | (189,313) | ||||||||||||||||||||||
| Adjusted EBITDA margin | 6 | % | — | % | (15) | % | ||||||||||||||||||||||
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(1)Relates primarily to interest income, which consists of interest and dividends earned on our cash and cash equivalents and marketable securities.
(2)Relates to the CFPB Consent Order and related redress payments and the DFPI Consent Order.
(3)Consists of one-time costs incurred in connection with ceasing the use of our third-party payment processor.
Components of our Results of Operations
Revenue
Payments Revenue
We recognize payments revenue based on interchange fees generated from purchase transactions made by members using their Chime-branded debit and credit cards. Our bank partners, as issuing banks, collect the interchange fees from these transactions, and pass amounts onto us based on these fees. Our payments revenue reflects the gross amount of the interchange fee. Interchange fees are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card networks.
To deliver payment services to members, we contract with our bank partners to provide Chime members with access to deposit products and services such as full-featured, FDIC-insured checking accounts, debit cards, and secured credit cards.
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Platform-Related Revenue
We earn platform-related revenue from other products offered to our members that provide additional convenience, financial management tools, and access to liquidity. These products include MyPay, ATMs, outbound instant transfers, third-party partnerships, SpotMe, cash deposits, Instant Loans, and high-yield savings accounts.
MyPay enables members to receive money in advance of payday up to a predetermined limit for free within 24 hours, or instantly for a flat fee. We recognize the instant transfer fee net of fees paid to bank partners that are related to the product as revenue. We record on-balance sheet MyPay receivables as loans held for investment, net on the consolidated balance sheets and accrue instant transfer fee revenue for these loans using the effective interest rate method. For the off-balance sheet MyPay receivables that are retained by either of the bank partners, we recognize revenue based on the instant transfer fee, net of fees paid to bank partners, at an amount that approximates fair value.
We offer our members access to over 45,000 fee-free ATMs. Each time members withdraw money at certain ATMs that are not in our network of fee-free ATMs, we charge them a fixed ATM fee in accordance with the terms and conditions in the member agreements. As we maintain control of the integrated transaction processing services before delivery to our members, we record revenue on a gross basis.
Outbound instant transfers allow members to instantly transfer funds from their Chime account to an external account at a fixed rate. Revenue is recognized at a point in time on a gross basis when the transfer of funds is settled.
We also generate revenue from third-party partnership agreements through products where we receive payment from partners that offer products and services to members on the Chime app, such as Experian Boost, which provides an opportunity for members to raise their FICO scores by paying eligible bills through Chime, and our Offers Marketplace, where members can receive discounts on life, renters, pet, and car insurance, utilities, wireless plans, and other third-party products.
SpotMe is a fee-free overdraft protection product that allows enrolled members to overdraw their account up to a predetermined limit free of charge. Members may tip Chime, at their discretion, for the use of the feature once the overdraft is repaid and may rescind the tip during the specified refundable period as defined in the member agreement. We defer the recognition of revenue until the expiration of the refundable period.
Members can deposit cash into their accounts for free at certain retail locations or for a fee at other retail locations. Through contracts with third party cash deposit networks, we earn revenue upon each qualifying cash deposit outside our free network at a rate that varies depending on the cash deposit network and retailer. We do not have the primary responsibility for fulfilling members’ cash deposit requests and we recognize revenue net of fees paid to our third-party cash deposit networks upon settlement of the cash deposit in the members’ accounts.
Our Instant Loans product allows members to borrow funds that are repaid in equal installments over a set period of time. Instant loans have a fixed interest rate with no late fees or compound interest. Our bank partner is the legal lender of the Instant Loan product. We earn revenue related to Instant Loans based on the interest charged to members, net of fees paid to the bank partner, at an amount that approximates fair value.
We offer our members access to high-yield savings accounts with no minimum deposit requirements. Member savings account balances are held in interest bearing deposit accounts offered through our bank partners. Under the terms of our applicable contractual agreements with each bank partner, member deposits are either placed in the community deposit sweep program or held by our bank partners. The earned interest is passed to us which we recognize as revenue, net of the interest paid to our members. Under the terms of our applicable contractual agreements, the interest rate paid to members by Bancorp is determined by us and the interest rate paid to members by Stride is determined by agreement between us and Stride.
Cost of Revenue
Cost of revenue consists primarily of transaction processing and bank partner costs, and card and ATM network expenses, net of incentives.
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Transaction Processing and Bank Partner Costs
Transaction processing and bank partner costs include expenses relating to the our third-party and internally-developed payment processors. Through November 2025, we relied on a third-party processor to perform transaction authorization, settlement, payments, adjustments, and other account-level processing, as well as to maintain member account information and provide transaction reporting. Fees paid to the third-party processor were generally based on a fixed amount per transaction, subject to volume-based discounts. In November 2025, we completed our migration to ChimeCore, our proprietary payment processor and ledger. Costs associated with ChimeCore primarily include hosting and software-related expenses. Transaction processing and bank partner costs also include amortization of internal-use software related to supporting revenue-generating platforms.
Additionally, transaction processing and bank partner costs include payments to bank partners, including fees paid for serving as our card issuing bank and for card network sponsorship. These expenses are predominantly based on a specified percentage of the Purchase Volume at each respective bank partner, in which the percentage generally decreases with scale.
Card and ATM Network Expenses, Net of Incentives
We pay card and ATM networks for providing the worldwide networks through which card payment, ATM transactions, and other money movements such as inbound and outbound transfers are authorized, processed, and settled. These fees are generally based on Purchase Volume, the total number of transactions in the period, and other money movement volume and vary by network and transaction type. As part of our overall agreements with card networks, we also have marketing and incentive arrangements that provide us with certain incentives on a periodic basis, including quarterly and annual incentives based on transaction volumes in the period, contract signing bonus, and other marketing incentives. We record these incentives as a reduction to the cost of revenue as they are earned.
Our cost of revenue will be impacted by our growth as well as our ability to drive efficiencies in transaction processing and bank partner costs, including through our transition of transaction processing to ChimeCore, as well as card and ATM costs, net of incentives. In absolute dollars, we expect that cost of revenue will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect cost of revenue will fluctuate from period to period in the near term and stabilize in the long term as we scale.
Gross Profit
Gross profit consists of our total revenue minus total cost of revenue.
Operating Expenses
Transaction and Risk Losses
Transaction and risk losses primarily consist of losses relating to liquidity products both on- and off-balance sheet, overdrawn member accounts, and transaction dispute losses.
Losses relating to our off-balance sheet receivables that are retained by bank partners and relate to MyPay, Instant Loans, and SpotMe, as well as other instances where a member’s account is overdrawn, are estimated at each period end and recognized on our consolidated balance sheets as our product obligation. This obligation is measured at fair value, using a discounted cash flow model to calculate the present value of future cash flows, estimated for the discount rate and expected loss rates based on current period data and historical trends. Changes in fair value of the product obligation related to credit exposure are recorded as transaction and risk losses for the period.
Our allowance for credit losses relating to MyPay receivables we purchase, which are reflected on our balance sheet as loans held for investment, are recorded as a provision for credit losses within transaction and risk losses.
Transaction dispute losses result from member-initiated disputes with merchants or due to processing fraudulent transactions. We estimate the provision for transaction dispute losses each period based on current period data points and historical trends related to loss rates.
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Our transaction and risk losses will be impacted by the expansion of existing liquidity products and the introduction of new liquidity products offered through our platform. Following the launch of MyPay in 2024 and Instant Loans in 2025, our transaction and risk losses have increased. In absolute dollars, we expect that transaction and risk losses will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that transaction and risk losses will fluctuate from period to period in the near term and in the long term.
Member Support and Operations
Member support and operations expenses include the costs of the third-party vendors we use for certain member support and loss prevention services, the costs of physical card issuance, software to help manage member interactions, and member onboarding and account verification expenses. Member support and operations also includes personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in member support, risk, and operations functions, and allocated overhead.
In absolute dollars, we expect that member support and operations expenses will fluctuate from period to period in the near term and increase in the long term as we continue to grow our Active Member base. As a percentage of revenue, we expect that member support and operations expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
Sales and Marketing
Sales and marketing expenses consist primarily of general marketing and promotional activities, including advertising costs associated with the production and communication of advertisements in various media outlets, referral bonuses given to prospective and existing members with certain qualifying conditions, and other promotional activities. Sales and marketing expenses also include personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in sales and marketing functions and allocated overhead.
In absolute dollars, we expect that sales and marketing expenses will generally increase from period to period in the near term and increase in the long term as we continue to invest in member acquisition. As a percentage of revenue, we expect that sales and marketing expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
Technology and Development
Technology and development expenses primarily consist of personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in the engineering, product management, data, and design functions and allocated overhead, as well as certain costs for cloud infrastructure, and other costs to support and improve our platform.
In absolute dollars, we expect that technology and development expenses will generally increase from period to period in the near term and increase in the long term as we continue to make investments in product innovation. As a percentage of revenue, we expect that technology and development expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
General and Administrative
General and administrative expenses primarily consist of personnel-related expenses, including salaries, employee benefit costs, and stock-based compensation for employees engaged in the security, legal, compliance, human resources and finance functions, and allocated overhead. General and administrative also includes professional services fees, business software, and legal and regulatory settlements.
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In absolute dollars, we expect that general and administrative expenses will generally increase from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that general and administrative expenses will fluctuate from period to period in the near term and decrease in the long term as we scale.
Depreciation and Amortization
Depreciation and amortization expenses primarily consist of amortization of our capitalized software and depreciation on our property and equipment.
Other Income, Net
Other income, net primarily includes interest income, which consists of interest and dividends earned on our cash and cash equivalents and marketable securities.
Provision for Income Taxes
The provision for income taxes consists primarily of income taxes in certain federal, state, local, and foreign jurisdictions in which we conduct business. Our effective tax rate will vary depending on the relative proportion of foreign to domestic income, use of tax credits, changes in the valuation of our deferred tax assets and liabilities, and changes in tax laws.
Results of Operations
The following table summarizes our consolidated statements of operations data for each of the periods indicated:
| Year Ended December 31, | ||||||||||||||||||||||||||||
| (in thousands, except share and per share amounts) | 2025 | 2024 | 2023 | |||||||||||||||||||||||||
| Revenue | $ | 2,186,770 | $ | 1,673,269 | $ | 1,278,455 | ||||||||||||||||||||||
Cost of revenue(1) | 263,047 | 207,511 | 219,737 | |||||||||||||||||||||||||
| Gross profit | 1,923,723 | 1,465,758 | 1,058,718 | |||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
Transaction and risk losses | 407,323 | 219,687 | 152,375 | |||||||||||||||||||||||||
Member support and operations(2) | 457,978 | 286,856 | 272,755 | |||||||||||||||||||||||||
Sales and marketing(2) | 635,384 | 519,760 | 443,806 | |||||||||||||||||||||||||
Technology and development(2) | 934,925 | 309,575 | 259,001 | |||||||||||||||||||||||||
General and administrative(2) | 512,113 | 177,229 | 154,945 | |||||||||||||||||||||||||
Depreciation and amortization(1) | 15,979 | 14,850 | 11,621 | |||||||||||||||||||||||||
| Total operating expenses | 2,963,702 | 1,527,957 | 1,294,503 | |||||||||||||||||||||||||
Loss from operations | (1,039,979) | (62,199) | (235,785) | |||||||||||||||||||||||||
| Other income, net | 30,874 | 39,465 | 32,817 | |||||||||||||||||||||||||
Loss before income taxes | (1,009,105) | (22,734) | (202,968) | |||||||||||||||||||||||||
Provision for income taxes | 831 | 2,610 | 234 | |||||||||||||||||||||||||
Net loss | $ | (1,009,936) | $ | (25,344) | $ | (203,202) | ||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (4.27) | $ | (0.39) | $ | (3.22) | ||||||||||||||||||||||
Weighted average number of common shares outstanding used to compute net loss per share, basic and diluted | 236,270,347 | 64,910,056 | 63,104,219 | |||||||||||||||||||||||||
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(1)Total depreciation and amortization includes amounts as follows:
| Year Ended December 31, | ||||||||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Depreciation and amortization recorded in cost of revenue | $ | 14,021 | $ | 10,520 | $ | 1,316 | ||||||||||||||||||||
| Depreciation and amortization recorded as operating expense | 15,979 | 14,850 | 11,621 | |||||||||||||||||||||||
| Total depreciation and amortization | $ | 30,000 | $ | 25,370 | $ | 12,937 | ||||||||||||||||||||
(2)Amounts include stock-based compensation and related payroll tax as follows:
| Year Ended December 31, | ||||||||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Member support and operations | $ | 142,207 | $ | 3,620 | $ | 5,000 | ||||||||||||||||||||
| Sales and marketing | 53,170 | 1,356 | 1,192 | |||||||||||||||||||||||
| Technology and development | 616,557 | 12,423 | 10,645 | |||||||||||||||||||||||
| General and administrative | 280,910 | 12,446 | 9,198 | |||||||||||||||||||||||
Total stock-based compensation expense and related payroll tax | $ | 1,092,844 | $ | 29,845 | $ | 26,035 | ||||||||||||||||||||
Comparison of the Years Ended December 31, 2025 and December 31, 2024
Revenue
| Year Ended December 31, | Change | Change | ||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | ($) | % | ||||||||||||||||||||||||||||||||||
| Payments revenue | $ | 1,500,563 | $ | 1,276,601 | $ | 223,962 | 18 | % | ||||||||||||||||||||||||||||||
| Platform-related revenue | 686,207 | 396,668 | 289,539 | 73 | % | |||||||||||||||||||||||||||||||||
| Total revenue | $ | 2,186,770 | $ | 1,673,269 | $ | 513,501 | 31 | % | ||||||||||||||||||||||||||||||
Total revenue for the year ended December 31, 2025 increased by $513.5 million, or 31%, year over year, primarily driven by the growth of our total Active Members and the associated increase in Purchase Volume as well as the launch of MyPay in 2024 and outbound instant transfers in 2025.
Payments revenue
Payments revenue increased by $224.0 million, or 18%, for the year ended December 31, 2025 compared to the same period in 2024.
For the year ended December 31, 2025, this increase reflected a $146.3 million, or 16%, increase in revenue from interchange-based fees from debit card transactions and a $77.6 million, or 22%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2024. The increase in payments revenue was driven by a $18.5 billion, or 16%, increase in Purchase Volume for the year ended December 31, 2025 compared to the same period in 2024. For the years ended December 31, 2025 and 2024, interchange-based fees from debit card transactions represented 49% and 55% of revenue, with debit card transactions representing 83% and 84% of Purchase Volume. For the years ended December 31, 2025 and 2024, interchange-based fees from credit card transactions represented 20% and 21% of revenue, with credit card transactions representing 17% and 16% of Purchase Volume.
The increase in Purchase Volume was driven, in part, by a 1.5 million, or 19%, increase in Active Members as of December 31, 2025 compared to December 31, 2024. Increasing the number of Active Members on our platform helps drive Purchase Volume, which increases the interchange-based fees generated and the payments revenue that we recognize.
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Platform-related revenue
Platform-related revenue for the year ended December 31, 2025 increased $289.5 million, or 73%, year over year. For the year ended December 31, 2025, the increase was primarily driven by a $212.5 million increase year over year from the full launch of MyPay in July 2024. Additionally, we recognized $38.0 million in revenue for outbound instant transfer fees, which launched in the first quarter of 2025, in the year ended December 31, 2025.
Cost of revenue
| Year Ended December 31, | Change | Change | ||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | ($) | % | ||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 263,047 | $ | 207,511 | $ | 55,536 | 27 | % | ||||||||||||||||||||||||||||||
Cost of revenue for the year ended December 31, 2025 increased $55.5 million, or 27%, year over year driven by a $35.8 million increase in card and ATM network expenses, net of incentives, and a $19.8 million increase in transaction processing and bank partner costs. The $35.8 million increase in card and ATM network expenses was driven by the increase in Active Members and from Active Members engaging more frequently with our products, including instant transfers.
The $19.8 million increase in transaction processing and bank partner costs was driven by the increase in Active Members and related increase in Purchase Volume. Additionally, the increase in transaction processing and bank partner costs included a $3.5 million increase in the amortization of internal-use software relating to revenue generating platforms such as ChimeCore and MyPay.
Operating expenses
| Year Ended December 31, | Change | Change | ||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | ($) | % | ||||||||||||||||||||||||||||||||||
| Transaction and risk losses | $ | 407,323 | $ | 219,687 | $ | 187,636 | 85 | % | ||||||||||||||||||||||||||||||
| Member support and operations | 457,978 | 286,856 | 171,122 | 60 | % | |||||||||||||||||||||||||||||||||
| Sales and marketing | 635,384 | 519,760 | 115,624 | 22 | % | |||||||||||||||||||||||||||||||||
| Technology and development | 934,925 | 309,575 | 625,350 | 202 | % | |||||||||||||||||||||||||||||||||
| General and administrative | 512,113 | 177,229 | 334,884 | 189 | % | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 15,979 | 14,850 | 1,129 | 8 | % | |||||||||||||||||||||||||||||||||
Recent SEC filings
- 2026-04-17 DEF 14A Proxy Statement
- 2026-03-06 10-K Annual Report
- 2026-02-25 8-K Earnings Release; Financial Statements and Exhibits
- 2025-12-10 8-K Officer/Director Change
- 2025-11-10 10-Q Quarterly Report
- 2025-11-05 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-08-11 10-Q Quarterly Report
- 2025-08-07 8-K Earnings Release; Financial Statements and Exhibits
- 2025-06-02 S-1/A Registration Statement (Amended)
- 2025-05-13 S-1 Registration Statement