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Chime reported Q3 FY2026 revenue of $718.0 million, up 32.1% from $543.5 million a year earlier and above the consensus estimate of $705.2 million. Revenue also came in above the company’s own guidance for the quarter. Chime reported diluted earnings per share of $0.11, compared with −$0.15 a year earlier.
In its filing, Chime attributed revenue growth to more active members and card purchases, a shift toward credit transactions and growth in MyPay, Instant Loans and outbound instant transfers. The company said platform-related revenue rose as members adopted those products and MyPay’s variable pricing plan took effect.
Chime’s gross margin rose to 90.0% from 87.2%, while operating margin moved to 4.78% from −11.9%. The filing said the move to ChimeCore reduced transaction processing and bank partner costs, partly offsetting higher card and ATM network expenses. Chime reported free cash flow of $126.1 million, compared with $13.8 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $718.0 million | $543.5 million | 32.1% |
| Diluted EPS | $0.11 | −$0.15 | — |
| Gross margin | 90.0% | 87.2% | 2.7 percentage points |
| Operating margin | 4.78% | −11.9% | 16.7 percentage points |
| Free cash flow | $126.1 million | $13.8 million | 815.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $669.8 million | $640.6 million | Beat by 4.55% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q3 FY2026 | $680.0 million–$690.0 million | $718.0 million | Above the guide |
Revenue came in within or above the company’s guide in 2 of the last 2 quarters it guided.
What management said on the call
CEO Chris Britt said Prime is attracting higher-income members while deepening relationships with existing customers. He said Prime members deposit and spend more, use more products and retain longer than the average active member. President and interim CFO Mark Troughton added that Prime and Chime Card helped shift more purchase volume toward credit.
On lending, Britt said Chime raised MyPay limits during the quarter, while Instant Loans expanded ahead of expectations. Troughton said higher MyPay limits increased advances per active user, with losses around the company’s steady-state target. He also said repeat Instant Loans borrowers had lower annualized loss rates than first-time borrowers.
Troughton described lending as supporting Chime’s payments business rather than changing its model. Asked about competition and pricing, he said Chime primarily competes for banking relationships and lends to members with direct deposits. He said Chime’s visibility into account flows helps it underwrite loans and offer lower pricing, although the company is focused on the overall customer relationship rather than raising prices today.
On expenses, Troughton said member acquisition costs had fallen sequentially as Chime added members. Asked about operating costs, he attributed elevated member support and operations expense partly to cards reissued for Prime and said Chime continued to invest in marketing. He said further operating leverage was expected, but cautioned that this year’s incremental margins benefited from a favorable MyPay comparison and should not be treated as a long-term margin guide. Troughton said Chime would provide 2027 guidance on its Q4 call.
Britt said Chime’s planned Stride Bank acquisition would reduce partner bank fees and funding costs and support product launches. Troughton said the transaction remained subject to regulatory approval and was expected to close in the first half of 2027.
Guidance
Chime raised its Q4 FY2026 outlook to revenue of $757.0 million to $767.0 million and adjusted EBITDA of $161.0 million to $166.0 million, with an adjusted EBITDA margin of 21.0% to 22.0%.
For FY2026, Chime raised its revenue outlook to approximately $2.8 billion and its adjusted EBITDA outlook to $519.0 million to $524.0 million. It also raised its expected full-year adjusted EBITDA margin to 19.0% and incremental adjusted EBITDA margin to 65.0%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EBITDA growth, Non Gaap Incremental Margin | FY2026 | 65.0% | 60.0% | Raised |
| EBITDA growth, Non Gaap Margin | FY2026 | 19.0% | 17.0% | Raised |
| EBITDA, non-GAAP | FY2026 | $519.0 million–$524.0 million | $465.0 million–$475.0 million | Raised |
| Revenue | FY2026 | $2.8 billion–$2.8 billion | $2.7 billion–$2.7 billion | Raised |
| EBITDA growth, Non Gaap Incremental Margin | Q4 FY2026 | 64.0% | — | New |
| EBITDA growth, Non Gaap Margin | Q4 FY2026 | 21.0%–22.0% | Q3 FY2026: 15.0%–16.0% | Raised |
| EBITDA, non-GAAP | Q4 FY2026 | $161.0 million–$166.0 million | Q3 FY2026: $105.0 million–$110.0 million | Raised |
| Revenue | Q4 FY2026 | $757.0 million–$767.0 million | Q3 FY2026: $680.0 million–$690.0 million; reported $718.0 million | Raised |
| Net income, Stride Acquisition | FY2027 | Chime expects the Stride acquisition to be accretive to earnings from closing in FY2027. | — | — |
| Customers, Enterprise | FY2027 | Chime expects enterprise to make a meaningful contribution to new member growth in FY2027. | — | — |
| Customers, Enterprise Member Growth | FY2027 | Chime expects Enterprise to become a meaningful contributor to member growth in FY2027. | — | — |
| Customers, Enterprise Member Growth | FY2026 | Chime does not expect Enterprise to contribute meaningfully to member growth in FY2026. | — | — |
| Operating expenses, Payroll | FY2027 | Chime expects FY2027 payroll costs to be flat relative to FY2026. | — | — |
| Customers, Net New Active Members | FY2026 | 1,800,000 | — | — |
| Gross margin, Transaction Margin | Q4 FY2026 | 70.0%–72.0% | Q3 FY2026: 70.0%–72.0% | Held |
| EPS | FY2026 | Chime expects positive GAAP EPS for FY2026. | — | — |