Chime Financial Inc-A(CHYM) - 2025 Q2 - Quarterly Results

Chime Q2 2025 Earnings Release Second Quarter 2025 Performance Highlights The company reported strong Q2 2025 results, driven by significant revenue growth and an increase in active members Financial Highlights Revenue grew 37% YoY to $528 million, though a significant net loss was recorded due to post-IPO stock-based compensation Financial Performance | Financial Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Revenue | $528M | 37% | | - Payments Revenue | $366M | 19% | | - Platform-related Revenue | $162M | 113% | | Gross Profit | $461M | - | | Gross Margin | 87% | - | | Net Loss | ($923M) | - | | Net Margin | (175)% | - | | Adjusted EBITDA (non-GAAP) | $16M | - | | Adjusted EBITDA Margin | 3% | - | - The significant increase in net loss to $923 million was primarily driven by $928 million of stock-based compensation expense and related payroll tax, which were elevated due to the company's initial public offering[6] Business & Operational Highlights Active members and purchase volume grew significantly, supported by product innovation, AI implementation, and the ChimeCore rollout Key Metrics | Key Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Active Members | 8.7M | 23% | | ARPAM | $245 | 12% | | Purchase Volume | $32.4B | 18% | - Key operational achievements in the quarter include tripling the MyPay transaction margin, expanding the product suite with Instant Loans and Chime+, launching a GenAI voicebot, and migrating new accounts to the proprietary ChimeCore payment processor[6] Financial Outlook for 2025 The company provided an optimistic outlook for Q3 and the full year 2025, projecting continued revenue growth and positive adjusted EBITDA Q3 2025 Outlook | Q3 2025 Outlook | Value | YoY Growth | | :--- | :--- | :--- | | Revenue | $525M - $535M | 24% - 27% | | Adjusted EBITDA | $12M - $17M | - | | Adjusted EBITDA Margin | 2% - 3% | - | Full Year 2025 Outlook | Full Year 2025 Outlook | Value | YoY Growth | | :--- | :--- | :--- | | Revenue | $2.135B - $2.155B | 28% - 29% | | Adjusted EBITDA | $84M - $94M | - | | Adjusted EBITDA Margin | 4% | - | - The company expects incremental adjusted EBITDA margin (non-GAAP) to return to mid-40% or higher by the fourth quarter of 2025[7] Consolidated Financial Statements The financial statements detail the company's financial position, including a significant increase in assets post-IPO and a net loss driven by stock-based compensation Condensed Consolidated Balance Sheets Total assets grew to $1.90 billion as of June 30, 2025, primarily due to an increase in cash following the company's IPO | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $868,284 | $337,697 | | Total Assets | $1,902,474 | $1,461,037 | | Total Liabilities | $474,376 | $501,516 | | Total stockholders' equity (deficit) | $1,428,098 | ($1,930,600) | Condensed Consolidated Statements of Operations The company reported revenue of $528.1 million for Q2 2025, but a net loss of $923.4 million resulted from high stock-based compensation expenses | Income Statement Item (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $528,149 | $384,214 | | Gross Profit | $461,029 | $333,710 | | Total operating expenses | $1,391,667 | $343,151 | | - Stock-based compensation | $910,147 | $6,419 | | Net income (loss) | ($923,376) | $385 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities was $2.7 million for the first half of 2025, with financing activities providing $449.9 million from IPO proceeds | Cash Flow Item (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $2,743 | $70,837 | | Net cash from investing activities | $79,126 | ($5,174) | | Net cash from financing activities | $449,930 | $7 | | Net increase in cash | $531,799 | $65,670 | - Financing activities were primarily driven by $772.6 million in net proceeds from the issuance of common stock upon the initial public offering[33] Non-GAAP Financial Measures & Key Metrics This section defines key non-GAAP measures and operational metrics used by management and provides a reconciliation from GAAP net loss to non-GAAP adjusted EBITDA Reconciliation of GAAP to Non-GAAP Results The reconciliation bridges the Q2 2025 GAAP net loss of $(923.4) million to a positive adjusted EBITDA of $16.0 million, highlighting the impact of stock-based compensation | Reconciliation (in thousands) | Q2 2025 | | :--- | :--- | | Net income (loss) | ($923,376) | | Stock-based compensation expense and related payroll tax | $928,062 | | Other adjustments | $11,317 | | Adjusted EBITDA | $16,003 | Definitions of Non-GAAP Measures and Key Metrics Key performance indicators are defined, including non-GAAP measures like Adjusted EBITDA and key operating metrics such as Active Members and Purchase Volume - Adjusted EBITDA: Defined as net income (loss) adjusted for items like depreciation, amortization, other income/expense, taxes, stock-based compensation, and other non-core operational expenses[19] - Transaction Profit: Defined as gross profit less transaction and risk losses[21] - Active Members: A member who has initiated a money movement transaction (e.g., card purchase, funding, ATM withdrawal) in the last calendar month of the period[25] - Purchase Volume: The total dollar value of member purchase transactions using Chime-branded cards, net of refunds[27] Company Information and Disclosures This section provides corporate information, conference call details, and legally required forward-looking statement disclaimers - Chime will host a conference call to discuss its Q2 2025 results at 3:00 p.m. Pacific Time on the day of the release[8] - The release contains forward-looking statements regarding future financial performance, member growth, and business strategy, which are subject to substantial risks and uncertainties[12][14][15]