Chime Financial Inc-A(CHYM) - 2025 Q4 - Annual Results

Revenue Growth - Revenue for full year 2025 was $2.2 billion, representing a 31% year-over-year growth[5] - Payments revenue grew 18% year-over-year to $1.5 billion, while platform-related revenue increased 73% year-over-year to $686 million[5] - Revenue for Q4 2025 reached $596,358,000, a 25.5% increase from $475,212,000 in Q4 2024[31] - For Q1 2026, revenue is expected to be between $627 million to $637 million, indicating a year-over-year growth of 21% to 23%[15] Membership and User Engagement - Active Members reached 9.5 million, a 19% year-over-year increase, adding approximately 500,000 net new members quarter-over-quarter[5] - Average Revenue Per Active Member (ARPAM) is a key indicator of monetization, reflecting the revenue generated per active member[27] Profitability and Financial Performance - Adjusted EBITDA for full year 2025 was $127 million, with an adjusted EBITDA margin of 6%, exceeding full-year guidance[8] - Adjusted EBITDA for the year ended December 31, 2025, was $126,597,000, compared to $(6,984,000) in 2024, indicating a substantial recovery[37] - Adjusted EBITDA for full year 2026 is projected to be between $380 million to $400 million, with an adjusted EBITDA margin between 14% and 15%[15] - The company expects to achieve GAAP profitability in 2026, ahead of previous internal expectations[7] Costs and Expenses - Total operating expenses for the year ended December 31, 2025, were $2,963,702,000, significantly higher than $1,527,957,000 in 2024[31] - Stock-based compensation expense for the year ended December 31, 2025, totaled $1,092,844,000, significantly higher than $29,845,000 in 2024[37] - The company incurred one-time costs of $32,564,000 related to ceasing the use of a third-party payment processor[38] Transaction and Purchase Metrics - Purchase Volume increased 16% year-over-year to $134 billion, with a combined volume of $136 billion including Outbound Instant Transfer[8] - Purchase Volume, a key driver of payments revenue, is defined as the total dollar value of member purchase transactions using Chime-branded cards[28] - Transaction profit for Q4 2025 was $427,372,000, up from $325,678,000 in Q4 2024, with a transaction margin of 72%[37] Assets and Cash Flow - Total current assets increased to $1,756,010,000 in 2025 from $1,287,036,000 in 2024, representing a 36.5% growth[29] - Cash and cash equivalents at the end of the period were $466,252,000, up from $337,697,000 in the previous year[29] - Cash flows provided by operating activities for the year ended December 31, 2025, were $52,780,000, down from $64,140,000 in 2024[33] Profit and Loss - The net loss for the year ended December 31, 2025, was $1,009,936,000, compared to a net loss of $25,344,000 in 2024[31] - Net loss for Q4 2025 was $(44,777,000), a significant increase from $(19,606,000) in Q4 2024, resulting in a net margin of (8)%[37] - Adjusted for transaction and risk losses, the profit for the year ended December 31, 2025, was $1,516,400,000, compared to $1,246,071,000 in 2024[37] Gross Profit and Margin - Gross profit for the year ended December 31, 2025, was $1,923,723,000, up 31.2% from $1,465,758,000 in 2024[31] - Gross profit for Q4 2025 reached $530,250,000, up from $419,168,000 in Q4 2024, reflecting a growth of 26.5%[37] - Gross margin improved to 89% in Q4 2025 compared to 88% in Q4 2024[37] - Adjusted EBITDA margin for Q4 2025 was 10%, a recovery from (3)% in Q4 2024[37] Tax Provision - The provision for income taxes for the year ended December 31, 2025, was $831,000, compared to $2,610,000 in 2024[37]