Chime (CHYM) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 10:59 AM CDT 46 min read

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DATE

Wednesday, May 6, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Christopher Britt

• Chief Financial Officer — Matthew Newcomb

• Chief Operating Officer — Mark Troughton

Full Conference Call Transcript

Christopher Britt: Thanks, Peter, and convey you each for joining america today. 2026 is disconnected to a beardown start. In Q1, we delivered beardown progressive subordinate growth, continued taking stock from the largest banks, achieved GAAP profitability and accelerated merchandise velocity. Last month, we launched Chime Prime, our caller premium rank tier. Prime offers higher currency backmost rewards, high-yield savings, greater entree to liquidity and premium perks for members who marque Chime their superior fiscal partner. Early signs are encouraging, and I'll stock much successful a moment. The spot of our marque and offerings person ne'er been clearer. We added astir 700,000 progressive members successful Q1, bringing full progressive members to a grounds 10.2 million.

Consumers are drawn to Chime's expanding merchandise suite and low-fee model. As a result, Chime again ranked #1 successful U.S. checking relationship openings per J.D. Power's Q1 survey and 50% up of the adjacent competitor, portion members earning $75,000-plus remained our fastest-growing segment. Unaided marque consciousness besides continues to emergence among consumers earning up to $100,000. Turning to the quarter. Revenue grew 25% year-over-year, exceeding the precocious extremity of our guidance range. Coupled with beardown outgo discipline, we delivered implicit 13 points of adjusted EBITDA borderline enlargement year-over-year, demonstrating the almighty fixed outgo leverage successful our concern model. Q1 besides marked our archetypal 4th of affirmative GAAP EPS, a large milestone for our shareholders.

And we expect to present affirmative GAAP EPS for our afloat twelvemonth results. Our Q1 results item our halfway competitory advantages, superior relationships, our trusted brand, a debased outgo to service and accelerated innovation powered by ChimeCore present accelerated with AI. Understandably, the wellness of the American user is simply a large absorption for investors today, fueled by geopolitical uncertainty, precocious vigor costs and wide affordability concerns. We look intimately astatine our members' behavior, and arsenic we've reported for the past respective quarters, we proceed to spot wide user resilience.

Even with substance spending up, wide acquisition volumes and redeeming rates stay beardown and consistent, and mean relationship balances among our recurring nonstop depositors proceed to grow, aided successful portion by year-over-year maturation successful the mean taxation refund. And we've yet to spot immoderate meaningful changes successful the fig of our members receiving unemployment benefits. In presumption of lending, our recognition nonaccomplishment rates proceed to improve, reflecting the spot of our abbreviated duration indebtedness portfolio underwritten by recurring nonstop deposits and our quality to rapidly fine-tune our lending hazard models. These factors dramatically little our indebtedness portfolio hazard and are what abstracted america from different lending businesses. Turning to our 2026 priorities.