Chime Financial Inc-A(CHYM) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $544 million, representing a 29% year-over-year growth[4] - Adjusted EBITDA for Q3 2025 was $29 million, with an adjusted EBITDA margin of 5%, reflecting a 9 percentage point increase year-over-year[4] - Total revenue for the three months ended September 30, 2025, was $543,519,000, representing a 28.8% increase from $421,871,000 in the same period of 2024[31] - Gross profit for the nine months ended September 30, 2025, was $1,393,473,000, up from $1,046,590,000 in 2024, indicating a year-over-year growth of 33.2%[31] - Gross profit for Q3 2025 reached $474,118, compared to $368,355 in Q3 2024, reflecting a year-over-year increase of 28.7%[36] - Adjusted EBITDA for Q3 2025 was $28,757, compared to an adjusted EBITDA of $(13,613) in Q3 2024[36] - For the nine months ended September 30, 2025, gross profit was $1,393,473, compared to $1,046,590 for the same period in 2024, a 33.2% increase[36] Membership and Customer Metrics - Active Members increased by 21% year-over-year to 9.1 million, with a reduction in customer acquisition cost (CAC) by over 10% for three consecutive quarters[4] - Purchase Volume rose 15% year-over-year to $32.3 billion, and 18% when including Outbound Instant Transfer (OIT) volume[4] - OIT has scaled rapidly, achieving $640 million in volume this quarter, enhancing member convenience and driving higher monetization[5] Guidance and Outlook - For Q4 2025, the revenue outlook is projected between $572 million and $582 million, indicating a year-over-year growth of 20% to 23%[12] - The full-year 2025 revenue guidance is now between $2.163 billion and $2.173 billion, reflecting a year-over-year growth of 29% to 30%[12] Shareholder Actions - The company announced a $200 million share repurchase program, indicating confidence in its financial strength and growth potential[6] Financial Position - Total current assets as of September 30, 2025, reached $1,758,897,000, a 37.5% increase from $1,287,036,000 as of December 31, 2024[29] - Total liabilities as of September 30, 2025, were $519,037,000, slightly up from $501,516,000 as of December 31, 2024[29] - Cash and cash equivalents at the end of the period were $445,026,000, compared to $270,825,000 at the end of September 30, 2024, marking a 64.4% increase[33] - The total stockholders' equity (deficit) as of September 30, 2025, was $1,443,274,000, compared to a deficit of $1,930,600,000 as of December 31, 2024, indicating a significant improvement[29] Expenses and Losses - Operating expenses for the nine months ended September 30, 2025, totaled $2,379,684,000, significantly higher than $1,081,643,000 in 2024, indicating a rise of 120.1%[31] - Stock-based compensation expense for the three months ended September 30, 2025, was $85,953,000, compared to $10,134,000 in the same period of 2024, showing a substantial increase[31] - The net loss for the three months ended September 30, 2025, was $54,722,000, compared to a net loss of $22,026,000 in the same period of 2024, reflecting a significant increase in losses[31] - Net loss for Q3 2025 was $(54,722), worsening from a net loss of $(22,026) in Q3 2024[36] - Stock-based compensation expense for the nine months ended September 30, 2025, was $1,022,711, significantly higher than $21,728 in the same period of 2024[36] Transaction Metrics - Transaction profit for Q3 2025 was $377,065, up from $313,196 in Q3 2024, indicating a growth of 20.5%[36] - Transaction margin decreased to 69% in Q3 2025 from 74% in Q3 2024[36] - The net margin for Q3 2025 was (10)%, compared to (5)% in Q3 2024[36] - Adjusted EBITDA margin improved to 5% in Q3 2025 from (3)% in Q3 2024[36] Product Development - The introduction of the Chime Card in September aims to enhance user experience with 1.5% cash back rewards[4] - The migration to ChimeCore was completed ahead of schedule, expected to reduce transaction processing costs and accelerate innovation[11]