Chime Financial Inc-A(US:CHYM)2025-11-10 21:40Membership Growth - As of September 30, 2025, Chime has 9.1 million Active Members, an increase from 7.5 million in the same period of 2024, representing a growth of approximately 21.3%[139] - Active Members increased by 1.6 million, or 21%, as of September 30, 2025 compared to September 30, 2024, contributing to the growth in Purchase Volume[196] Financial Performance - Revenue for Q3 2025 reached $543.5 million, a 28.8% increase from $421.9 million in Q3 2024[190] - Gross profit for the three months ended September 30, 2025, was $474.1 million, compared to $368.4 million in 2024, indicating a year-over-year increase of 28.7%[154] - Average Revenue per Active Member (ARPAM) increased to $245 for the three months ended September 30, 2025, compared to $231 in 2024, marking a growth of 6.1%[147] - Total revenue for the three months ended September 30, 2025 increased by $121.6 million, or 29%, year over year, while for the nine months, it increased by $392.4 million, or 33%[192] Transaction Metrics - Purchase Volume for the three months ended September 30, 2025, was $32.3 billion, up from $28.0 billion in 2024, reflecting a year-over-year increase of 8.4%[145] - Purchase Volume increased by $4.3 billion, or 15%, for the three months and $14.5 billion, or 17%, for the nine months ended September 30, 2025 compared to the same periods in 2024[194][195] Expenses and Losses - Cost of revenue for Q3 2025 was $69.4 million, up from $53.5 million in Q3 2024, reflecting a 29.7% increase[190] - Transaction and risk losses increased to $97.1 million in Q3 2025 from $55.2 million in Q3 2024, a 75.9% rise[190] - Member support and operations expenses were $83.7 million in Q3 2025, up from $70.1 million in Q3 2024, indicating a 19.5% increase[190] - Sales and marketing expenses rose to $153.6 million in Q3 2025, compared to $143.1 million in Q3 2024, a 7.8% increase[190] - Technology and development expenses increased significantly to $123.9 million in Q3 2025 from $80.4 million in Q3 2024, a 54.0% rise[190] - General and administrative expenses were $76.6 million in Q3 2025, up from $46.6 million in Q3 2024, reflecting a 64.2% increase[190] - Net loss for Q3 2025 was $54.7 million, compared to a net loss of $22.0 million in Q3 2024[190] IPO and Capital - The company closed its IPO on June 13, 2025, raising net proceeds of $770.6 million from the sale of 30.7 million shares at a public offering price of $27.00[143] - The total net proceeds from the IPO of Class A common stock were approximately $770.6 million after deducting underwriting discounts and offering expenses[210] - Bancorp's tier 1 capital as of September 30, 2025, was approximately $1.7 billion, with liquidity products excluding Credit Builder not exceeding approximately $1.1 billion[212] Cash Flow and Investments - Cash provided by operating activities was $20.2 million for the nine months ended September 30, 2025, a decrease of $25.7 million compared to $45.9 million in the same period of 2024[216] - Cash used by investing activities was $344.5 million for the nine months ended September 30, 2025, primarily due to $3,616.9 million in purchases of loans held for investment[219] - Cash provided by financing activities was $433.0 million for the nine months ended September 30, 2025, primarily due to $771.2 million from the issuance of common stock in connection with the IPO[221] Future Commitments and Projections - The company had future minimum operating lease payments of $177.6 million under non-cancelable leases as of September 30, 2025, due over a weighted average period of 8.4 years[225] - Non-cancellable purchase commitments related to cloud infrastructure services and third-party payment processors amounted to $267.1 million as of September 30, 2025[226] - The company believes its available cash and cash equivalents will be sufficient to meet working capital needs for at least the next twelve months[214] Stock and Compensation - Stock-based compensation expense increased by $981.9 million for the nine months ended September 30, 2025, due to the liquidity-based vesting condition being met in connection with the IPO[218] - The fully diluted share count as of September 30, 2025, was 439,920,313, including 374,417,665 shares of Class A and B common stock issued and outstanding[224] Market and Risk Factors - A hypothetical 100 basis point change in interest rates would not have a material effect on the fair value of the company's cash and cash equivalents as of September 30, 2025[234]