Chime Financial reported fourth‑quarter revenue of $596 million, a 25% year‑over‑year increase, and a full‑year revenue run‑rate of $2.163 billion, up 31% from the prior year. The growth was driven by a 65% jump in platform‑related revenue and a 16% rise in payments revenue, reflecting continued member adoption of its fee‑free banking services and the expansion of its interchange‑based revenue streams.
Gross margin for the quarter reached 89%, a near‑90% figure that confirms the success of the Chime Core migration. Adjusted EBITDA margin climbed to 10%, a 12‑percentage‑point improvement from the 10% margin reported in Q4 2024. The margin expansion is largely attributable to the cost efficiencies of the home‑grown transaction processor and ledger, which have reduced processing costs and improved pricing power on interchange fees.
The MyPay product continued to perform strongly, with a loss rate that fell to 1% and a revenue run‑rate that surpassed $400 million. The product’s transaction margin of nearly 60% and the rapid attainment of the 1% loss target—down from 1.7% at the start of 2025—demonstrate effective risk management and product scaling.
Management guided for 2026 revenue of $2.630 billion to $2.670 billion and adjusted EBITDA of $380 million to $400 million, signaling confidence in continued growth and margin expansion. The company also reaffirmed its expectation of GAAP net income in 2026, a milestone that could reshape investor expectations and support a higher valuation multiple.
The earnings release was well received by the market, with aftermarket trading showing a 1.86% rise and extended trading indicating a 9% increase. The positive reaction was driven by the revenue beat, the EPS of –$0.12 that matched consensus, the 10% adjusted EBITDA margin, and the confirmation of GAAP profitability in 2026. Investors viewed the margin expansion and the completion of the Chime Core migration as key tailwinds for the company’s long‑term profitability.
"We delivered strong results in 2025, with 31% revenue growth with strong operating leverage, including a 12‑point year‑over‑year improvement in adjusted EBITDA margin to 10% in fourth quarter." – Christopher Britt, CEO. "In Q4, we also added approximately 500,000 net new active members, bringing our total to 9.5 million. In 2025, our biggest unlock was Chime Core, our homegrown transaction processor and ledger." – Christopher Britt, CEO. "We scaled MyPay to over $400 million in revenue run rate in Q4, while generating transaction margin of nearly 60%, only 1 year after launch. We began 2025 with MyPay loss rates of 1.7%. And in Q4, we reached our steady‑state loss rate target of 1%, significantly faster than planned." – Christopher Britt, CEO
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