Chime Swings to Profit in Q2, Revenue Jumps 27%; Announces 10% Workforce Cut
CHYM sits 96% above its 52-week low of $15.88 on elevated volume (5.8× avg).
Summary
Chime reported Q2 2026 net income of $27.9M, a sharp turnaround from a $923.4M loss a year ago, as revenue grew 27% to $669.8M. The company also announced a 10% workforce reduction to improve efficiency.
Key Events · Earnings and Guidance · CHYM
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Q2 Profitability
Net income of $27.9M vs. a $923.4M loss in Q2 2025, driven by a sharp drop in stock-based compensation expense following the IPO. Revenue grew 27% to $669.8M.
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Member & Revenue Growth
Active Members reached 10.4M, up 20% YoY. Payments revenue rose 17% to $430M, and platform-related revenue surged 48% to $239.7M, led by MyPay and Instant Loans.
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Margin Expansion
Adjusted EBITDA margin expanded to 15% from 3% a year ago, reflecting operating leverage as stock-based compensation normalized post-IPO.
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Workforce Reduction
Subsequent to quarter-end, Chime announced a 10% workforce cut (~140 jobs), expecting $16M-$20M in net cash restructuring charges in Q3 2026, partially offset by a $9M-$12M reversal of stock-based compensation.
Analysis · CHYM · Finance
Chime delivered its second consecutive profitable quarter, with net income of $27.9 million compared to a $923.4 million loss a year ago. The dramatic swing was driven by a sharp drop in stock-based compensation expense following the IPO, not a fundamental deterioration in the business. Revenue grew 27% to $669.8 million, fueled by a 20% increase in Active Members to 10.4 million and strong adoption of credit and liquidity products. Adjusted EBITDA margin expanded to 15% from 3%, demonstrating significant operating leverage. However, the company also disclosed a subsequent 10% workforce reduction, signaling a focus on efficiency. The quarter shows a maturing fintech balancing growth with profitability, though the layoffs and ongoing legal risks (J.D. Power lawsuit) add caution.
At the time of this filing, CHYM was trading at $31.20 on NASDAQ in the Finance sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $15.88 to $33.99. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.