Chime Financial, Inc.

third quarter fiscal 2025 earnings call. Following the speaker's remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded and a replay of this call will be available on our investor relations website for a reasonable period of time after the call. I'd like to turn the call over to David Pierce, Vice President of Investor Relations and Capital Markets. Thank you. You may begin.

Good afternoon, everyone, and thank you for joining us for CHIME's third quarter 2025 earnings conference call. Joining me today are Chris Britt, our co-founder and CEO, and Matt Newcomb, our CFO. Mark Trotton, our COO, will participate in Q&A. As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and our earnings presentation posted on our IR website at investors.chime.com. We will also make forward-looking statements on this call, including statements about our business, future outlook, and goals. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described. Many of those risks and uncertainties are described in our SEC filings, including our Form 10-Q filed on August 11, 2025. Forward-looking statements represent our beliefs and assumptions. Only as of the date such statements are made. We disclaim any obligation to update any forward-looking statements except as required by law. With that, I'll hand it over to Chris.

Thanks, David, and thank you all for joining us. Q3 was another strong quarter for us, and I'm so proud to lead this talented team that has made Chime an industry leader in banking mainstream America. Month after month, more everyday people are choosing to move their banking relationship to Chime than any other fintech or bank. In fact, just last month, J.D. Power reported that in Q3, more people opened a checking account at Chime than any other US company. And we're still just getting started. We're up to 9.1 million active members in a market of nearly 200 million people earning up to $100,000 per year. We're at a $2 billion revenue run rate in an over $400 billion market. There's a secular shift happening in mainstream America towards digital banking That's helpful, easy, and free, and Chime is leading the way. Our strong Q3 financial and operating results demonstrate our progress. We delivered 29% year-over-year revenue growth, despite lapping the initial launch of our blockbuster new product, MyPay. We also improved our adjusted EBITDA margin by nine points year-over-year. Both revenue and adjusted EBITDA exceeded guidance for the quarter. Driving this growth was a 21% year over year increase in active members to 9.1 million, a sequential increase of approximately 400,000 from Q2. Given this momentum, we're raising our Q4 and full year guidance for revenue and adjusted EBITDA. Despite the headlines about macro risk and consumer health, we see continued resilience among our members. Our business is powered by long lasting primary account relationships. We maintain low credit risk through our short-duration liquidity products, underwritten by recurring direct deposits. Over the last decade, our business has proven to be resilient across macro cycles. In fact, Chime can shine most when times are tough. In softer macro environments, consumers often become more value conscious, and we believe that Chime offers the most compelling banking experience and the best value. Our members continue to show strong financial health with steady growth in spending among tenured cohorts, higher average deposit balances, and consistent use of our liquidity products with lower loss rates. Importantly, we're not seeing any signs of unemployment pressure within our member base. Today, I'll share some highlights from Q3 and what continues to set Chime apart, including our category-leading products, trusted brand, and cost-to-serve advantage. Starting with products. In September, we launched our new Chime card, our latest innovation to make Chime the best checking account for mainstream America. This new card makes fee-free banking with Chime even more rewarding. With 1.5% cash back on everyday spend categories for direct depositors and a titanium card option, we're now delivering an even more premium banking experience for our members. Chime card builds on the strength of Chime+. which offers our direct deposit members a 3.5% interest rate on savings, eight times the national average. It also offers fee-free overdrafts, access to your paycheck on demand with MyPay, free credit building, and priority member support. We don't believe any incumbent offers consumers anywhere near this level of utility and value, including higher earners. In fact, in Q3, members making 75,000 or more annually were our fastest growing consumer segment. The new Chime Card is a secured credit card that helps our members earn rewards while improving their credit score. Because it's a credit card, we earn 175 basis points of interchange, which is over 50% higher than our average Q3 take rate. The results in the first few months are promising. New members who adopted Chime Card are already using it for 80% of their spend, Portfolio-wide, spend on our credit card products represents only 16% of total purchase volume as of Q3, so we're very excited about the growth potential as volume shifts to credit spend. We've also enhanced our short-term liquidity products, including MyPay. In the years since we first rolled out this product, MyPay has proven to be another essential feature that's loved by our members for its convenience and low cost. MyPay is now an over $350 million annual run rate product. with a transaction margin of over 45%. We've more than quadrupled MyPay transaction margin in just the last two quarters. These results are a case study in product innovation, only possible due to Chime's primary direct deposit relationships. In terms of our brand leadership, Chime continues to gain momentum, setting us apart from both legacy players and potential new entrants. In Q3, our unaided awareness in the online banking category reached 41%, up 12 points since 2023, with the fastest growth among Americans earning $50,000 to $100,000 annually. Chime now only trails the two largest banks in unaided awareness for online banking and is ahead of Wells Fargo, Citi, and every other national bank. And just last month, Time released their latest national survey and ranking of the top U.S. brands by category. For the first time, Chime was ranked the number one banking brand in the U.S., according to consumers, for 2025, ahead of all major banks and fintechs, and we're not even a bank. The final advantage I want to recap is the significant progress we've made in our cost to serve. Chime's cost to serve is roughly one-third to one-fifth of an incumbent bank, and this advantage continues to improve. Over the last two years, we've reduced our cost to serve by 20% while growing RPAM by 18%. Our continued operating leverage is clear in our Q3 financials, which Matt will discuss. With our scaled model and the growing benefits we're realizing from AI, we don't believe we need to grow OpEx nearly as fast as we have historically to fuel our growth. In fact, we expect to keep headcount flat over the next year. This should translate to significantly slower OPEX growth in 2026 versus 2025. A major contributor to our cost-to-serve improvement has been our investment in Chime Core, our proprietary transaction processing core and ledger. I'm excited to announce today that we've completed our migration ahead of schedule, and we're now 100% on our own technology stack. Chime Core sets us apart from both traditional banks and fintechs that rely on costly and often inflexible third-party solutions. Not only does Chime Core provide efficiency gains that Matt will share, but it will continue to accelerate shipping velocity, proprietary innovation, and our AI advantage. Chime Core allowed us to launch our new Chime Card, a key driver of growth for 2026 and beyond. And with Chime Core fully live, it unleashes the next era of innovation for Chime to extend our lead as the go-to banking platform for everyday Americans. Our near-term product roadmap includes a new, more premium membership tier that we'll launch to reward our most engaged and higher-earning members, joint accounts, custodial accounts, and investment products. And that's just some of what we have on the docket for 2026. These new innovations will give our members even more reasons to rely on Chime for all aspects of their financial lives across spending, savings, borrowing, investing, and more. I also want to share a few updates on other emerging growth areas, including our early engagement programs and Chime Enterprise. Our early engagement strategy is all about making it easier to use Chime right out of the gate and is helping us drive strong member acquisition and increasingly attractive unit economics. We've ungated our credit building features, added more deposit options like inbound instant transfers and funding with Apple Pay. We continue to experiment with offering MyPay before members direct deposit, and it made it easier to transfer money from Chime with outbound instant transfers or OIT certs. In Q3, the combination of these new initiatives helped reduce CAC while allowing us to monetize relationships earlier and in new ways. There's more work to do, but we're also encouraged by the early signs of success converting these new Chime members to direct depositors over time, especially those who want to try before they buy. Lastly, on Chime Enterprise, I'm incredibly bullish about the impact this new business unit will have on our growth. We're seeing early traction in the employer channel, bringing Chime solutions to employees of our enterprise partners. We recently announced partnerships with both Workday and UKG, two of the largest global human capital management platforms. These integrations allow their employer customers to seamlessly offer Chime Workplace to their employees. And in Q3, we signed several new employer partners, including Maxwell Group, Ubiquity, and ETEC. While still early days for Chime Enterprise, employee adoption rates of direct deposit have far exceeded our expectations. Enterprise sales cycles can be long, but I'm excited by the momentum in our pipeline. Our business continues to fire on all cylinders and is poised to deliver an exceptional 2026. That said, we do not believe our current stock price reflects the strength of our business. So today, we're announcing a $200 million share repurchase authorization, which we expect to implement in the coming months. We continue to have a robust cash position and a strong outlook on free cash flow generation, putting us in a great position to buy back shares at attractive values while continuing to invest in the growth of our business. We are well on our way to deliver on our vision to transform the way mainstream Americans bank, helping millions achieve lasting financial progress. I'm deeply proud of this generational company we're building. We have a brand that's loved and already rivals the largest banks in the world with more consumers choosing us than any other institution. The future of banking belongs to China. With that, I'll turn it over to Matt.