CHYM

Chime Financial, Inc. (CHYM) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Chime Financial, Inc., as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.06 per share for the current quarter, which represents a year-over-year change of +140.0%. Over the last 30 days, four estimates have moved higher for Chime Financial, Inc. while two have gone lower. As a result, the Zacks Consensus Estimate has increased 31.28%. For the full year, the earnings estimate of $0.41 per share represents a change of +109.6% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Chime Financial, Inc.. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 34.94%. Thanks to promising estimate revisions, Chime Financial, Inc. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Chime Financial, Inc. because of its solid estimate revisions, as evident from the stock's 42.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chime Financial, Inc. (CHYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 6 p.m. ET Vice President of Investor Relations - Peter Stabler Co-Founder and Chief Executive Officer - Christopher Britt Chief Financial Officer - Matthew Newcomb President - Mark Troughton Operator: Good afternoon, and welcome to Chime Financial Inc.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] 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 now like to turn the call over to Peter Stabler, Vice President of Investor Relations. Thank you. You may begin. Peter Stabler: Good afternoon, everyone, and thank you for joining us for Chime's Second Quarter 2026 Earnings Conference Call. Joining me today are Chris Britt, our Co-Founder and CEO; and Matt Newcomb, our CFO. Mark Troughton, our President, will participate in the Q&A session. 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 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 these risks and uncertainties are described in our SEC filings, including our Form 10-Q filed on May 7, 2026. 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. I'll now hand the call over to Chris. Christopher Britt: Thanks, Peter, and thank you all for joining us today. Q2 was an exceptionally strong quarter with outperformance across key areas of our business. Active members grew 20% and revenue increased 27% on a year-over-year basis. We accelerated growth of both card purchase volume and payment revenue, and our enterprise team signed on a top U.S. employer for our Chime workplace solution. Our strong momentum is translating to the bottom line. with adjusted EBITDA margin expanding to 15% for the quarter, up 12 points year-over-year. We also posted our second consecutive quarter of GAAP net income. Our results illustrate that Chime is emerging as the clear market leader in brand of choice for banking mainstream America. We continue to take share of primary accounts from large legacy banks, while deepening relationships with our over 10 million active members. The momentum from recent product launches and our ambitious product road map, gives us confidence in our ability to achieve our vision to be the market leader in primary bank accounts in the U.S., enabling financial progress for millions of Americans who are frustrated with incumbent bank brands. Our new Chime Prime membership tier was a big contributor to success this quarter. Launched in early April, Chime Prime membership is available to any member making $3,000 or more of qualifying direct deposits per month. With 5% cash back rewards in the category of their choice, a 3.75% savings API, higher MyPay limits, automatic qualification for an instant loan credit building and lifestyle perks like Priority Pass lounge access, we believe Chime Prime offers one of the most rewarding ways for mainstream America to manage their everyday spending. The core premise of Chime Prime is to provide even more value to members who engage with us deeply and to broaden our appeal to an even wider range of consumer segments. For months in, it's clear that, that strategy is working. Once again, our fastest-growing segment is among consumers with more than $75,000 in annual income. At the same time, the percentage of new direct depositors that reach chime prime status is higher than ever. Chime Prime is encouraging members to expand their relationship with us with more members than ever making Chime their primary financial partner. And because Prime members spend more have higher product attach rates, and are more likely to adopt our Chime card, they generate substantially higher ARPAM, more than double the average Chime member. Looking ahead, We'll continue to add new features to make Chime Prime even more compelling. For example, later this quarter, we plan to roll out a revolving unsecured line of credit in beta, offering a new flexible liquidity product for prime members with larger liquidity needs. Overall, we're thrilled with Chime Prime's early momentum and expected to become a sustained driver of our expansion into higher earning consumer segments. Turning to recent product news. Last month, we announced the launch of Chime Invest, marking an important evolution for us from spending and savings towards helping our member build long-term wealth. While there are plenty of investment apps out there, what differentiates Chime Invest is its seamless integration into the banking app that millions of Americans rely on for their everyday money management. Almost 40% of Americans don't have any equity ownership, so we're eager to play a role in helping more consumers participate in the upside of our country's economic growth. We cannot only help our members get started but unlike stand-alone investment apps, we can create a more consistent habit of investing when a paycheck arrives in your Chime account. Chime Invest includes managed portfolios created by a registered investment adviser and free self-directed investing that enables members to choose individual equities and ETFs. We're also excited to support truck accounts pending rollover guidance from the treasury, and we congratulate them on their successful launch last month. With nearly 80% of members already using our high-yield savings product, we're confident that we can drive adoption and consistent usage of Chime invest early in our members' financial journey. We believe this will give Chime members a better shot at long-term wealth creation because, of course, time in the market matters more than timing the market. Like Chime Prime, we expect Chime Invest to play an important role in attracting and retaining a broader segment of consumers to our expanding portfolio of products. Now transitioning to Chime Enterprise. I'm proud to report some exciting wins for the team. Earlier this week, we announced that Allied Universal one of the largest employers in the U.S. with approximately 320,000 North American-based employees has signed on to offer Chime Workplace, our employee financial wellness suite featuring MyPay at work. This partnership represents a transformative win and demonstrates that our workplace value proposition can attract the largest employers in the country. We also recently signed a national retailer with about 35,000 employees and we'll have more to share in the coming weeks when we launch that partnership. With this growing momentum and strong pipeline, we expect Chime Enterprise to become a meaningful contributor to member growth in 2027. Turning to our liquidity products, where we continue to see great performance. MyPay transaction profit grew 3x year-over-year, driven by strong origination volumes of $4.5 billion for the quarter and a sequential improvement in loss rate. And we're particularly excited about the performance of instant loans, our low-cost and flexible installment loan product. Originations grew nearly 70% quarter-over-quarter to $300 million with strong loss rate performance seen across our cohorts, particularly among repeat borrowers. Based on the momentum we're seeing, we expect instant loans to exit Q3 with an annualized revenue run rate of more than $100 million. Our Intel product has the highest NPS across our product offerings and is the foundation of a new lending platform for us. Looking ahead, we see enormous growth potential in expanded loan eligibility, limits and duration as we extend our lending footprint into higher income segments with larger liquidity needs. At the core of our competitive advantage is our success in developing primary account relationships. These recurring direct deposits drive more precise underwriting and an advantaged loan repayment position. The significant scale of our spending and lending platform put us in a strong position to report on the financial health of mainstream American consumers. While geopolitical uncertainties drive headlines, as with recent quarters, we continue to see strong evidence of a healthy consumer. Adjusted for inflation, direct depositor income, account balances, and discretionary and nondiscretionary spending continue to grow, and we see no signs of stress across the performance of our liquidity products. On AI, we continue to scale Jade, our AI financial partner to more members who are using it to understand what's happening with their money and help them make better decisions. For example, last week, Jade flagged that my food delivery spend was running above my normal pattern and asked if I wanted to set a limit. I accepted, and now Jade tells me when I'm on pace to exceed it. While no single transaction is going to change your life, we all know that smart money moves compound over time and collectively lead to financial progress. AI will continue to make financial advice more widely available than ever and increasingly free. But what I'm most excited about with Jade is the AI-driven personalized advice and actions that can only take place from within your primary bank account. We'll be sharing more on Jade soon. To sum up, Q2 was another strong quarter. Our results and raised full year outlook reflect the momentum in our business and the strength of our strategy. We recently announced an internal reorganization that will reduce our workforce by approximately 10% while these decisions are incredibly difficult, they will create a flatter and faster organization. We continue to see that smaller teams with fewer layers that use AI are shipping faster and getting even more work done. AI also continues to drive outsized efficiency gains as we see in our cost to serve. In our roadshow, we highlighted our 3 to 5x cost-to-serve advantage relative to incumbents. And if you look at where we've now reduced our cost to serve by an average of 10% for each of the last 4 years. This is a reflection of our digital-first model, enhanced further by AI. We're still early in our journey to become the leader in primary accounts for everyday Americans. The opportunity ahead is significant, and we believe that we're well positioned to win. I'll now turn it over to Matt to cover our financial results and updated outlook. Matthew Newcomb: Thanks, Chris. Q2 was one of our strongest quarters yet as a public company, showcasing the impact from investments we've made in prior quarters across member acquisition, brand, product innovation and technology. Chime Prime is the latest results of these investments, which in Q2 helped us accelerate revenue growth, accelerate actives growth, including direct depositor growth, accelerate volume growth and accelerate ARPAM growth. Meanwhile, we are also demonstrating the structural operating leverage in our model. In Q2, we grew adjusted EBITDA margin 12 percentage points year-over-year to 15%, with 60% incremental margin and delivered our second consecutive quarter of positive GAAP EPS. As we've shown quarter after quarter, ours is a business model with strong long-term earnings power and now near-term profits. We expect these strong results to continue and are raising our guidance for the year, which I'll touch on in a minute. In Q2, we drove strong results across multiple dimensions of growth, active members, ARPAM and transaction profit. Starting with active members. We continue to demonstrate that Chime is the leader in new checking account openings in the U.S. and in Q2, accelerated active member growth to 20% year-over-year. As a reminder, we have a seasonal business. In particular, tax refund related activity drives a pull forward of member acquisition and reengagement into Q1, resulting in seasonally higher quarter-over-quarter net adds each Q1 and lower net adds each Q2. This Q2, we added approximately 200,000 net new active members quarter-over-quarter, twice as many as we added last Q2 and $1.7 million over the last 12 months or most ever. We ended June with 10.4 million total active members. This accelerating momentum was due to a number of factors, but I'll highlight two. First, Chime Prime.which brings together the best of Chime into a new membership tier is clearly resonating across our member base, particularly higher earners. As Chris noted, in Q2, we added more members depositing at least $3,000 per month than ever before. We've also seen higher retention rates for existing direct depositors since Prime's launch. Second is the continued positive impact from our early engagement initiatives. Such as enabling instant funding and mobile check deposits for new members, which make it easy to get started with Chime. These initiatives are helping us driving more members to Chime and have improved our payback periods to 5 to 6 quarters. But the real power is in the combination. We've made it easier than ever to get started with Chime. And now with Chime Prime, we are clearly showing our members that the more they do with Chime, the more they get from Chime. The result in Q2 was accelerating direct depositor growth, with particular strength in late-stage direct deposit conversions, which hit a record high in the quarter. With this momentum, we now expect to add 1.8 million net new active members in 2026, our largest cohort ever and well above our original goal of $1.4 million for the year. Second is ARPAM. Our direct deposit relationships give us a high-quality, deeply engaged member base and drive strong and sticky ARPAM. In Q2, we accelerated ARPAM growth to 6% year-over-year, reaching $260 in the quarter. Notably, in Q2, we accelerated our ARPAM growth while also accelerating active member growth, driving both stronger quantity and quality concurrently. In particular, we saw strength with Chime Prime members who to date have over twice the ARPAM of our average active member. Chime Prime improves both conversion to and retention of direct deposit relationships drives greater wallet share and helps generate more payments and platform revenue, even net of rewards costs. On the payment side, Chime Prime helped us accelerate purchase and OIT volume growth to 20% year-over-year in Q2. While we are a nominal payments business, which benefits from some degree of inflation, the acceleration in transaction volumes did not just come from higher gasoline prices like many others have reported. Ours is much more broad-based. Year-over-year growth in purchase and OIT volumes, excluding gasoline sales, also accelerated to 19%. Chime Prime is also driving Chime card adoption, which earns higher interchange rates. With credit mix now 27% of total purchase volume. Fueling this growth, we saw incredibly strong member response to Prime's 5% cash-back category of choice for rewards offering. This strong engagement, particularly in the gas category, resulted in modestly higher contra revenue rewards cost than we anticipated in Q2, but we expect those costs to settle lower going forward. In fact, so far in Q3, payments revenue net take rates are pacing to grow 2 basis points year-over-year. More broadly, we're excited about cash back rewards as another lever to maximize growth in transaction profit dollars. We're very pleased with the impact right out of the gate. In Q2, we effectively traded 1 basis point of take rates for 5 points of volume growth acceleration, which accelerated payments and OIT revenue growth to 21% in the quarter. But we think there is still much more to go. We remain very excited about the multiyear opportunity to expand take rates net of rewards costs as we continue to shift more volume to credit. Chime Prime also drives platform revenue, which grew 48% year-over-year in Q2. As Chris noted, Prime members are prequalified for instant loans, our 3- to 12-month installment loan product. This helps fuel origination volume growth up nearly 70% quarter-over-quarter to $300 million in Q2. And we continue to see cohorted loss rates perform very well with substantially lower loss rates for repeat borrowers. In addition, we continue to drive strong MyPay results with $4.5 billion of origination volumes in Q2 at loss rates of 90 basis points. All in all, we more than tripled MyPay transaction profit dollars year-over-year to $73 million in Q2. We've also started testing higher MyPay limits, yet another lever to grow transaction profit dollars and expect to roll these out in the coming months. Finally, I'm excited to announce a new $500 million warehouse facility with Goldman Sachs to fund the continued growth of our liquidity products. This facility is a testament to the strong progress we've already made scaling our liquidity products at low loss rates. The third dimension of growth is transaction profit. Our low-cost operating model has enabled us to offer what we believe is the most compelling breadth of services for mainstream consumers, which, as of Q2, we delivered a 73% transaction margin. Transaction margin grew 4 percentage points year-over-year, driven by strong loss rate performance. Along with the growth in actives and ARPAM, overall transaction profit grew 36% year-over-year in Q2. Importantly, this isn't flash in the pan growth. We believe this is durable growth, underpinned by cohorts of deeply engaged, long-lasting primary account relationships. Across our cohorts, we see over 100% dollar-based transaction profit retention, net of churn. Our cohorts nearly triple in RPM as they mature as members attached to more products over time. And strengthened further by Prime, LTV to CACs are now up to 9x. These attractive unit economics are what drive the structural operating leverage in our business. Strong margin expansion, concurrent with meaningful investments in growth. Non-GAAP OpEx as a percent of revenue fell by 8 percentage points year-over-year, with operating leverage across all OpEx categories. Q2 adjusted EBITDA margin of 15% was up 12 percentage points year-over-year, with incremental margins of 60%. We delivered $102 million of adjusted EBITDA and $28 million of net income. Our second consecutive quarter of positive GAAP EPS. Turning to our guidance. In the third quarter, we expect revenue between $680 million and $690 million, resulting in year-over-year revenue growth between 25% and 27%. We expect adjusted EBITDA between $105 million and $110 million, an adjusted EBITDA margin of between 15% and 16%. For the full year, we expect revenue between $2.725 billion and $2.745 billion, resulting in year-over-year revenue growth between 25% and 26%. And we expect full year adjusted EBITDA of between $465 million and $475 million and an adjusted EBITDA margin of 17%. We now expect an incremental adjusted EBITDA margin north of 60% for 2026. Note that our outlook includes the impact of our recent restructuring announcement. While we will reinvest a portion of payroll savings, this restructuring will also drive further operating leverage, particularly as we head into 2027, and we expect to keep payroll costs flat relative to 2026. Specifically, in Q3 '26, we expect to recognize approximately $16 million to $20 million of net cash restructuring charges, partially offset by a reversal of approximately $9 million to $12 million in noncash stock-based compensation expense for an expected impact to net income of $6 million to $9 million. Before we open it up for questions, I'd like to say a few personal words. After a decade at Chime, I've decided it's the right time to step down as CFO and spend more time with my family, now a family of 5. It has been the opportunity and privilege of my career to have helped build this company from some of its earliest days, and there is so much more ahead. I make this transition when Chime's opportunity is as big as it's ever been. At a moment when the business has incredible momentum, a strong foundation for continued growth and an extraordinarily talented team carrying it forward. I'll be working closely with Chris, Mark and the broader team over the coming months to ensure a smooth handoff. Chris and Ryan, thank you for your trust. And to all my Chime colleagues, thank you for your partnership, your dedication to this great company and for making time such a special place to build. Christopher Britt: I want to thank you, Matt, for your leadership over the past 10 years. Matt has really been central to Chime's success and a close friend and partner to me since the very early days. He's worked tirelessly to build and scale Chime for a decade and has now decided to take a well-deserved break. While he will support us through the search for our next CFO and the transition, this will be his last earnings call, and I want to take the opportunity to thank him for everything you've done for us. We've kicked off an executive search and our President, Mark Troughton, who many of you know, will be President and Interim CFO until we find a permanent CFO replacement. With that, we'll open it up to Q&A. Operator: [Operator Instructions]. And our first question comes from Tien-Tsin Huang with JPMorgan. Tien-Tsin Huang: It takes a lot. All the best to you, Matt. You're definitely going to be missed. And thanks for all the help over the years. In terms of the question, I was thinking about what to ask, maybe I'll ask if it's okay, on the reorg and the reduction in force. It's not easy, Chris. I know you mentioned that. Curious why now what outcomes are you solving for? It sounds like product velocity, more opportunity to invest, and you'll give some back as well in the form of earnings. But maybe just if you can help organize that for us, that would be great to start. Christopher Britt: Yes. Thanks, Tien-Tsin. I appreciate it. I think as you can see from these results we just reported, we are truly taking this action from a position of strength. And the way we thought about it is we want to make sure that we are well positioned for this next chapter of growth. And I think we always need to be willing to evolve the organization and be willing to make changes to stay lean to be flat flatter and to be more effective. We're seeing it inside of our company today that smaller teams move faster than ever using AI and all the super powers that, that can provide small tightknit teams. We know that we can do even more than ever with lean organizations. And it also -- when you have these smaller teams and fewer layers, it allows us to fight bureaucracy that naturally happens when companies start to grow. So we like smaller teams, fewer layers, more accountability and like not indicated, while there will be some -- certainly some OpEx savings here, we're also going to reinvest some of the savings for the next leg of growth. Matthew Newcomb: Yes. Thanks, Chris. Just to add to that, there will be some reinvestment, but this is another driver of operating leverage going forward. And I would say, particularly so as we head when we expect to keep payroll costs flat relative to '26. Tien-Tsin Huang: Yes, that was clear. Just my quick follow-up then. It sounds like the health of the consumer is quite good across our base. It looks like the spend per active is improving. Can we infer from that, that there's stronger spending power in the base? Is that mix? Is that a switch in the product that's being utilized here? Just maybe any other color you can add on the health of the consumer? Christopher Britt: Yes, I'll take that. I think similar to what you're seeing across the board from other companies, other banking platforms that are reporting, is that while consumers are saying that they feel cautious what we're seeing is actually a different story. We're seeing broad growth in spend across the board, across segment types. So overall spending is up discretionary spending is up in things like entertainment and food delivery and online shopping, savings balances are up for sure. And while it is true that we see faster growth among the higher income segments inside of the portfolio of Chime members. There's no question that the growth is really broad-based. So the stories of the consumer demise 4 or 5 quarters in now, we hear it over and over, but we continue to see a very healthy consumer this quarter once again. And again, we have -- we enjoy these primary account relationships. And if and when we ever saw a bump in behavior, uptick in unemployment would be the first ones to see it. and we just don't see it. So I would just say resilient and strong consumer spend and health across the board is the behavior we're seeing for sure. Operator: Our next question comes from James Faucette with Morgan Stanley. James Faucette: I wanted to ask, I'll put both my questions together because I think they're probably related comments around attracting users that are income above $75,000 a year, et cetera, seems pretty important. And just wondering if there are particular products that you can attribute to that kind of attraction and I guess, related to that, I'm interested to hear that you're going to start trialing at least a revolving credit product. Just more details on that and how we should think about that type of products potential contribution to growth, et cetera? Christopher Britt: Thanks for the question, James. Yes, I think it's the combination of products that are continuing to drive just broader interest in Chime, including among higher income segments. Obviously, the Chime Prime product with 5% cash back and 3.75% APY and a whole host of perks like Priority Pass lounge access, these are really -- this is a really powerful combination of services, especially when you include some of the liquidity products we have there a guaranteed access to our instant loan product and now most recently with our launch of investments and Chime Invest and all the services available through there. We just continue to see that we are growing at the fastest clip among the 75,000 plus income statement -- income segment once again. So we feel really good about that. And I think you can see it in the results. You see that these higher income consumers now have more motivation to put more deposits into Chime. We're seeing more consumers, more of our new direct depositors than ever on an absolute basis are now qualifying for this $3,000 deposit plus tier that you get with Chime Prime benefits. So I think you should expect to continue to see more products and services that appeal to a broader segment of consumers, including higher income consumers. And maybe, Mark, do you want to talk about the line of credit launch? Mark Troughton: Yes. Sure. Thanks, Chris. James, I think on the line of credit, we've said for sometime that there is a huge opportunity in our member base for low-cost high-quality lending products. And the focus of line of credit is to meet the needs of these higher income members. In particular, those that are looking for a more flexible type of liquidity. A significant portion of our member base actually prefers a revolving facility to a reducing balance installment type loan and minor credit is going to offer these members, the convenience of having that line of credit attached to their checking account, where it will be always on and where they can access it just with a swipe of the card. So just to reiterate, line of credit is a Chime Prime product. It will only be available to members of direct deposits more than $3,000 a month. And again, we're doing exactly what we've done with SpotMe and MyPay and instant loans and we're going to leverage that privileged account data and that position at the top of the repayment stack to drive longer relationships and better transaction profit margins. Operator: Our next question comes from Darrin Peller with Wolfe Research. Darrin Peller: I want to touch on MyPay for a moment again just because it continues to show strength, but you've talked about a few different levers. I know over the past few quarters, one of them being flexing loss rates up slightly just with higher limits, lower eligibility requirements. We saw loss rates decline again. And I saw I think 0.9%, obviously a good sign. But has your view changed at all on having more flexible limits. How should we think about the potential upside for MyPay from here going forward? Mark Troughton: Yes, that's a great question. I'll pick that one up. MyPay had another fantastic quarter. The originations were up 15% year-over-year. We had revenue up 47% year-over-year. Loss rates came in again below 1%. The result of that was the transaction profit margin of 64% and a tripling of our transaction profit year-over-year. So we feel really good about that as you've indicated. As you look forward, we definitely see more opportunity on MyPay. And as an example, we've actually just rolled out access to higher limits that MyPay up to $1,000, literally, that happened this week. And these higher limits will provide our members even greater access to the liquidity they need. And in turn, it will drive greater monetization for time. Our focus is on optimizing for transaction profit rather than loss rates. So you will likely see a slight increase in my pay loss rates for Q3 and Q4, but that will be much more than compensated for by increases in higher transaction profit. I also think it's with reminding everyone that MyPay still operates at a price level that is half part our competitors. I think it's just important to keep that in mind because I think it demonstrates the power of our low-cost model and our privilege to deposit relationships. Darrin Peller: Yes. That's really fair. All right. Just one quick follow-up. Just on the enterprise side, it was great to see the announcement there of a large partner. So maybe just a quick update on any attached or adoption trends with early partners and what the pipeline looks like going forward there. And I also just want to reiterate and thank Matt for everything, Matt, you've been a huge help. So good luck to you. Christopher Britt: Let me start by just saying how proud I am of the enterprise team and the great progress that they've been making and really excited about the pipeline we have. Why don't you cover this one, Mark? Mark Troughton: Yes, sure. The progress this quarter was great. We've been saying for some time that the Chime workplace offering is a broader employee wellness offering. It is fee-free to both employers and employees. And we think it's much stronger than some of these expensive point solutions in wage access products. And I think you've seen that this quarter. What you see here is a resonating yes from the market. And we're really excited about Allied and the second retailer that we will be -- whose details will be sharing once we actually roll it out. The pipeline is strong. It continues to grow. We expect to have some more exciting announcements enterprise in the coming months. As it relates to the future, we don't expect enterprise to be a meaningful contributor to member growth in '26. So we do see it being a meaningful contributor to direct to positive growth in '27. We're not giving specific guidance related to sort of adoption and conversion at this point. But we will certainly be including the impact of enterprise in our overall member growth guidance for '27. Operator: Our next question will come from Will Nance with Goldman Sachs. William Nance: First of all, Matt, it's been a pleasure working with you. It sounds like you got your hands full at home, but leaving some big shoes to fill. Second, congrats on all the great business developments. Congrats on that credit line in particular. I was hoping you could talk a little bit about some of the trends that you're seeing in customer acquisition and direct deposit attach. JPMorgan said on their earnings call this past quarter, they added 1.7 million checking accounts last year. You're basically guiding to that same number as the largest bank in the country. So how are you thinking about the momentum there? Is the sustainability of customer acquisition? And then more importantly, on direct deposit attach, also threw out a stat, I think it was late-stage direct deposit conversion. Maybe just help unpack that and talk about the quality of the account growth that you're adding. Matthew Newcomb: Thanks, Will, and I appreciate the kind words there. So we are seeing a ton of momentum on the member growth side. Just as a quick reminder, as you will recall, our business has seasonality. We always see a much more muted quarter-to-quarter growth in actives from Q1 to Q2. and that's just due to tax refund related activity. So the best way to look at our member growth is year-over-year, and we did have a strong showing on that front in Q2. We accelerated member growth to 20% year-over-year. We added twice as many active members in the quarter than we did in the quarter last year. And it is a record number of actives we've added now over the last 12 months, $1.7 million. I think what's driving this at a high level or a lot of the similar themes we talked about, the strong unaided brand awareness, our leading NPS score the Chime message continues to broadly resonate, I think, strengthened even further recently with Chime Prime. And we also are just continuing to see the benefit of the early engagement initiative that we've discussed previously. But I think one of the things you're trying to emphasize is that it really is not just the quantity of new member growth. It's also the quality as well. Again, driven by Chime Prime we added the highest ever number of members making 3,000 or more in deposits. And as I mentioned, we're also seeing retention benefits from Chime Prime adoption as well. And all this comes with really strong ROI, transaction profit payback periods of 5 to 6 quarters, to CACs of 9x in our recent cohorts. And it's this momentum that's giving us the confidence to raise our full year active member net add target to 1.8 million, which would be our largest cohort ever and is well ahead of our original goal for 1.4 million for the year. So we're seeing great progress across the board. The direct depositor progress, in particular, is has been great to see. It's not just folks that are coming to us and choosing direct deposit right out of the gate. But now the Chime Prime maybe they've tried us out for a few months. Now we've given them even more reason to deepen their relationship and choose us as their direct deposit relationship. So great progress really across the board. William Nance: That's great. And then if I could just ask a follow-up on Chime Prime. I was wondering if you could talk through some of the learnings in the wake of the launch. And as you think about the customers that have access that membership tier. Are you seeing it come more from wallet share expansion within the base? Is this -- what's the mix of kind of net new versus wallet share expansion? And then how are you thinking about kind of marketing to the existing customer base to drive that wallet share expansion and ultimately drive that credit mix higher over time as we look forward? Christopher Britt: I'll take that. I think the results are really twofold. Among our existing member base, we are absolutely seeing real excitement and lots of adoption, and we can actually see that the portion of our member base that are not only signing up for this, but actually adding more deposits into their accounts. And that's driving additional engagement and spend. But we're also really excited about. We feel like we're still at the very early days of having Chime Prime really be a key formula in the top of the funnel growth formula. But the results have been awesome. We're seeing more people than ever depositing their first deposit more than $3,000. And you should expect to see this be a really key part of our value proposition going forward. And this is -- we are not going to stop. We're going to keep adding additional features to this membership tier that are going to make Chime even more broadly appealing and things like now that we're rolling out Chime Invest with managed portfolios, if you're more novice investor to offeree or direct equity purchases all inside of the app where you get your direct deposit. We really see ourselves just continuing to round out this complete financial services app to serve all of your needs, including for people that are at higher income levels. So really excited about what the future holds on this front. Operator: Our next question will come from Sanjay Sakhrani with KBW. Sanjay Sakhrani: Congratulations, Matt. It was good to see the loss rate declining in the second quarter. Obviously, as you guys indicated, the consumer is doing pretty well. May I ask, like, does that help give you sort of ammunition to expand the credit box? I know you guys talked about expanding the MyPay credit lines. But as we think about growth going forward, does that enable you to do more? And maybe what are some of the learnings as a result of all of this? Mark Troughton: Yes. Thanks, Sanjay. I think what you should see from this that we are continuing to optimize our credit models. And part of the play here is we continue to identify new pockets of activity. And a good example there is this new launch of $1,000 MyPay limits, essentially what we're doing there is we've identified broad pockets of people that we believe can handle at $1,000. And so we're extending more to them. So that's the sort of repeat approach you have on my pay. On Instant loans, the same thing. We continue to see our overall loss rates actually come down. it's a little bit most this quarter because we had a big bump in originations of first-time instant loans. And those first-time borrowers have a significantly higher loss rate than our repeat borrowers, it's 50% lower. So we're seeing really improvement in loss rates and our underwriting capability across the board. Sanjay Sakhrani: And just my follow-up is that I think Matt talked about moderating rewards costs in the second half. Can you guys talk about what's driving that? Is that sort of an intentional move? Or is it a mix of redemptions? Just want to make sure I understand the dynamics there. Matthew Newcomb: Yes, I'll take that one, Sanjay. So yes, reward costs, just maybe to briefly summarize upfront here. Reward costs were modestly higher than we expected in Q2. That being said, the impact that we've seen from Prime has far outweighed the slightly higher rewards cost already and those rewards costs are already coming down in Q3. But let me give you a little bit more detail on this. As I mentioned, we've seen really awesome response to this incredible collection of benefits that Prime provides. That has helped us accelerate direct depositor growth. It has captured more market share. And as Chris mentioned, we're appealing to a broader segment of the market, including higher earners. And that really is a key driver behind the transaction volume growth, active growth and ARPAM growth, the acceleration that we've seen. I think not surprisingly, the 5% cash back offer in the category of your choice has been a real top draw, and that was particularly true in the gas category following all the appreciation we've seen in gas prices recently. And so that's really, I think, a big driver of what drove rewards costs modestly higher. And as a result, take rates slightly lower than we anticipated. But we do believe that's a one-off. As I mentioned, we are already seeing overall rewards cost us here in -- based off of July results, we expect 2 bps of year-over-year expansion in overall payments revenue blended take rates for Q3. And so I think just maybe stepping back more strategically here, the take rate expansion opportunity remains just a huge uplift opportunity for us as we continue to shift more volume to credit. We're really excited about this as a multiyear tailwind for the business. and we're continuing to make great progress on that front. Credit mix reached 27% in Q2, up from 23% in Q1, and we see a lot of growth ahead. Our newest cohorts continue to adopt than card at high rates and have about 50% credit mix for those. Operator: Our next question will come from Adam Frisch with Evercore. Adam Frisch: And Matt, congrats on your choice. It goes fast. So I hope you enjoy it. You raised the full year revenue midpoint by about $60 million EBITDA by roughly 47 against the second quarter beat of 32 and 27, respectively. So it seems like there's real incremental confidence in the back half beyond the flow-through. Some of that is a result of the RIF as you just explained a few minutes ago, but where else from your broad array of growth and operating leverage do you feel most comfortable with? And I have a quick follow-up. Matthew Newcomb: Yes. Look, I think the big highlights to emphasize here is this acceleration in volume growth, prime being a big factor behind that. That has really inflected frankly, in Q2, and we're continuing to see really strong momentum here in the back half of the year. And so I think that's probably #1 driver, I would point out about the raise for the back half and the flow-through to the rest of the P&L. The second is just continued momentum on our liquidity products. I think Mark went through that as well, but that's true across my pay as well as in few months. Adam Frisch: Okay. Cool. And I couldn't get through a Q&A without asking about enterprise, but still early days. Great to see '27 we'll see some benefit to new member adds. So what are the early takes, observations, et cetera, that you're seeing with some of your early partners? Mark Troughton: Adam, I'll pick that one up. I think we continue to see strong adoption and maybe even more than that, what we have -- what we are finding is that the usage and in of the direct depositors that we're acquiring through enterprise actually outperform what we see in our consumer channel. So the monetization there is looking very strong. Operator: Our next question will come from Andrew Jeffrey with William Blair. Andrew Jeffrey: I appreciate the question. And congrats, Matt. I wanted to ask about Prime in particular, which seems to really be gaining momentum. Can you elaborate on how much Prime is a lever for sort of upgrades from existing members who increase the direct deposit limits, for example, versus a new member origination vehicle that attracts higher income users. I wonder how much sort of you think about each of those contributors from Prime? Christopher Britt: Thanks for the question. It's really both. We are definitely seeing a strong uptick in existing members who elect to give us even more of their direct deposits. So they now have more reason to do that, and all those reasons just will just continue to get better and better. But I think the much larger opportunity, of course, is over time, the opportunity to expose this to many more consumers who may be considered Chime before, but weren't quite ready to engage. And like Matt indicated earlier, we really feel good about the decisions we made and we talked about over the prior quarters around allowing members -- new members to Chime to engage with us in a more significant way before getting direct deposit, right? Now you can fund the accounts, you can move money to friends, you can get access to a range of services before you direct deposit. But now we have more reasons than ever for people when that life change happens when the job switch happens or they just get set up with that one more fee from the incumbent bank, they're ready to make the switch, and there's a reason to give us their full direct deposit. So like I said, I think we are -- and our marketing and growth team would acknowledge us as well. It's still very early days of having Chime Prime B sort of the hero value prop to come into a Chime relationship. So we think there's just a ton of runway ahead of us for that. And so I'm probably most excited about that opportunity. Because inevitably, more and more of the existing member base will continue to come over to this product because it's just got such an incredibly powerful set of benefits. Andrew Jeffrey: Good stuff. I appreciate it. And just as a follow-up, I appreciate the extent to which improving my pay credit performance has driven transaction profit growth in the first half and margin for that matter. As we look to the second half and you lap some of those powerful gains, How do we think about transaction profit and perhaps the contribution from loan marks? Mark Troughton: Yes. I'll pick that one up. As we said, we still see, Yes, we are lapping some MyPay stuff. But the reality is we still see a lot of more opportunity on MyPay. As we've indicated, we're testing this new $1,000 MyPay. We've actually rolled it out this week. So we expect more goodness from my pay here in Q3 and Q4. I think that's probably the way to think about this. At the same time, as we've indicated, you'll probably see a slight uptick in the many loss rates in Q3 and Q4 as well. But we still think there's a lot of opportunity in MyPay. Operator: Our next question will come from Alex Markgraff with KeyBanc Capital Markets. Alexander Markgraff: Chris, Matt. Thanks for the questions. Matt, it's been a pleasure. Maybe 2 for me for starting on Chime Invest. Just sort of curious, Chris, on the product vision, I know it's early, but just sort of thinking about the evolution of the offering and scope versus what we're seeing at launch. It's a big category of the sort of well management bucket. So just be curious on the evolution there? And then any indication of account flows that you could share that could help us think about where -- how members are out getting these sort of invest dollars today. And I have a quick follow-up afterwards. Christopher Britt: Yes, I'll take that. I'm so excited about expanding our platform beyond just checking accounts and savings and some of the short duration lending products that we are obviously very well known for. We now have this opportunity to help our members build long-term wealth. And when we did surveys among our member base, it's 60% or 70% are already active investors, but more than half of everyone surveyed said that they would like to open up an investment account with Chime. So -- and we already have almost 80% of our members using us for savings. And increasingly, a lot of consumers think of their brokerage account as a way to do savings. So we obviously need to be there for them. The interest among our existing member base is incredibly strong. And like I said in the prepared remarks, the magic here is going to be the seamless integration that consumers will have with the bank account and the place that you get your direct deposit. Because when you have that, you can seamlessly move money in a more consistent way and set up that habit, hopefully at a really, really early age, which is as an aside, why we're so excited about Trump accounts, and we'll support them when the rollovers are clearer. But yes, we decided to make it really simple, really integrated. You can start with $1, if you want. If you're less sophisticated, we've got managed portfolios, for you depending on your risk tolerance and other considerations. And if you'd rather buy individual securities, you can do that, too. In terms of our expectations, we see this as an opportunity to provide existing members more reasons to engage with us for the long term and deepen engagement and drive more wallet share. And we also just think that this is another key product that alongside prime and instant loans and all these other products that will accelerate our expansion into these higher income and higher LTV number of segments. And we already see that, right? The prime members that we have are demonstrating ARPAMs that are 2x the rest of our broader member base. So we're really excited about this and feel like it's just a natural extension. We're not endeavoring to create a day trading app or something like that, but we do think that, obviously, getting exposure to the market at an early age is key to building long-term wealth creation. So of course, we have to be in this area. Alexander Markgraff: That's great. Maybe just one more, just kind of coming back to some comments from last quarter on sales and marketing. I think there were some comments on spending a bit more around prime, just looking on a dollar basis, kind of flattish but also seeing the benefit from Prime this quarter and the strong net adds. Just sort of curious, is there anything that really positively surprised. And as we think about those comments from last quarter on the incremental spend, anything to think about kind of in the second half year on that front. Matthew Newcomb: Yes. This is Matt, Alex. So as we indicated in prior quarters, we expected to have a marketing push around major product launches. We've done that historically, for example, with a were not first rolled out, and we've also done that here with Chime Prime and expect to continue to push this as we work to integrate this further into the top of funnel, like Chris mentioned. So I think that's sort of the overall trajectory fairly similar to how we had previously guided. Operator: Our next question will come from Joseph Vafi with Canaccord. Joseph Vafi: And I'll add my congrats, and we'll miss you, Matt. It's been a pleasure learning the Chime model and having you walk us through it in detail. appreciate it a lot. Maybe just kind of we just focus on enterprise a little bit and the large win here with Allied. Could we maybe unpack that win the sales cycle there, the implications for your pipeline, seeing a very large employer like this sign on. Any other color that this may add to the momentum in signing more customers even this year? And then I have a quick follow-up. Mark Troughton: Yes, sure. I'll pick that one up. The finding someone like Allied involves a lot of different sort of demand generation tactics that we employ within the enterprise channel. And those include outbound, inbound marketing, sales calls and obviously, you're sort of responding to RFPs. And these things typically particularly for a large employer like that, these things can run anywhere between 6 to 12 months. And so I'm not going to go into too many specifics on Allied itself. But I think the sales cycles in these B2B deals are long. Once you get through the sales cycle, of course, you still have to implement and then drive adoption. Now the good news about the sales cycles is that once you're in there, they are self-generating, and you essentially have a captive audience with a really high switching costs. And so the thing that makes them hard to achieve is also the thing that actually gives them real longevity. And over time, we believe, will result in a significantly more efficient tax on real high-value direct deposit customers. Joseph Vafi: Great. And then maybe just -- I may have missed it, but the revenue model around Chime Invest, some comments there versus being a retention tool and revenue versus retention and how you're seeing it strategically. Matthew Newcomb: Yes. China Invest is obviously a great new add to the platform. You should think about this primarily as an engagement driver as opposed to a direct revenue generator here in the short term in any sort of substantial or super material way. So as Chris mentioned, we're excited to really add this whole new category of benefit for our members, directly integrated with the place that they manage their money each day. Operator: Thank you. This does conclude the question-and-answer portion of today's call. And I'd like to turn it back over to Chris Britt for any closing remarks. Christopher Britt: I just want to congratulate the team on an awesome quarter. And I think the performance demonstrates that the future is bright here, and we're just getting started. So looking forward to seeing you all out on the road soon. Operator: Thank you. Thank you, ladies and gentlemen. This brings us to the end of today's meeting. We appreciate your time and participation, and you may now disconnect. Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chime Financial wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Chime (CHYM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Amine Asmerom, the chief accounting officer at Chime Financial, Inc. (NASDAQ:CHYM), reported a sale of 10,000 shares of Class A Common Stock on August 6, according to an SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($30.00); post-transaction value based on the August 6 market close ($31.25). What was the regulatory context of this transaction?The sale was conducted pursuant to a Rule 10b5-1 trading plan adopted on December 4, 2025. This arrangement allows company insiders to establish a pre-determined schedule for share dispositions to mitigate concerns regarding potential possession of material non-public information. How does this sale impact the executive's total equity stake?After the disposition of 10,000 shares, the executive retains direct ownership of 216,946 shares of Class A Common Stock. This remaining position represents an insider ownership stake of 0.06%. What are the current financial and market benchmarks for the company?As of the August 6 transaction date, the company recorded a one-year total return of negative 7%. For the trailing 12 months, the firm reported revenue of $2.5 billion and a net loss of $18.2 million, while the stock was priced at $29.10 as of the August 7 market close. Does the insider maintain other forms of equity compensation?Yes, the reporting officer also holds derivative securities in the form of restricted stock units (RSUs). Each unit represents a contingent right to receive one share of Class A Common Stock, subject to specific vesting schedules and conditions. Chime Financial operates as a digital-first fintech platform offering fee-free checking and savings accounts, early paycheck access, and overdraft protection in partnership with FDIC-insured banks, with primary revenue generated through interchange fees. The company's business model centers on providing accessible banking services to underserved consumers without traditional banking fees, leveraging technology to reduce operational costs and pass savings to customers while monetizing through payment processing fees. Chime primarily targets consumers with annual incomes below $100,000, focusing on the mass-market segment seeking affordable, technology-enabled banking solutions without complex fee structures. Chime Financial represents a significant player in the digital banking landscape, with a market capitalization of $11.1 billion and TTM revenues of $2.5 billion. The company's strategy emphasizes financial inclusion and accessibility through a fee-free banking model, differentiating itself in the competitive fintech space by serving price-sensitive consumers who have historically been underserved by traditional regional banks. Despite recent profitability pressures reflected in a TTM net loss of $18.2 million, Chime maintains substantial scale and continues to expand its digital-first banking offerings. The chief accounting officer selling 10,000 shares on a preset plan is the quietest kind of insider filing there is, and it's one of multiple Chime insider filings to surface in the same window, so the more useful question is what to make of the group rather than this trade on its own. And while the crew of executives all executed via a trading plan, they were joined by a 10% owner in selling off shares this past week. That makes some sense when you see that although shares are showing tepid gains over the past year, they're up a staggering 90% since lows just about two months ago. Much of that surge comes thanks to a strong quarter that came with a pretty clear strategic pivot. Chime grew second-quarter revenue 27% to $670 million, reached 10.4 million members, and booked its second straight quarter of GAAP profit at $28 million, while also cutting about 10% of staff and parting with its finance chief. Ultimately, the clustered selling is noise, but the staff cut and the CFO's exit, arriving in the same week a fast-growing company showed durable profits, are the developments that actually say something about where Chime is steering. Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chime Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Here's What to Know About Chime Financial's Latest Insider Filings After a Strong Quarter was originally published by The Motley Fool

Chime Financial, Inc. (CHYM) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to a loss of $7.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +800.00%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.13, delivering a surprise of +333.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Chime Financial, Inc., which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $669.77 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.55%. This compares to year-ago revenues of $528.15 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Chime Financial, Inc. shares have lost about 0.9% since the beginning of the year versus the S&P 500's gain of 13%. While Chime Financial, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Chime Financial, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $670.2 million in revenues for the coming quarter and $0.30 on $2.68 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. BitFuFu Inc. (FUFU), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -111.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BitFuFu Inc.'s revenues are expected to be $75.02 million, down 35% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chime Financial, Inc. (CHYM) : Free Stock Analysis Report BitFuFu Inc. (FUFU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Chime Financial, Inc.? Here are five stocks we like better. Strong Q2 performance: Active members rose 20% year over year to 10.4 million, revenue increased 27%, and adjusted EBITDA reached $102 million with a 15% margin. Chime also posted its second consecutive quarter of positive GAAP EPS. Higher-income growth and product expansion: Chime Prime members generated more than twice the revenue per active member of the average customer, while MyPay transaction profit more than tripled to $73 million and Instant Loan originations climbed nearly 70% sequentially. The company also launched Chime Invest and plans a revolving credit line for Prime members. Outlook raised amid restructuring: Chime increased its full-year revenue forecast to $2.725 billion–$2.745 billion and expects $465 million–$475 million in adjusted EBITDA. The company is reducing its workforce by about 10%, while CFO Matt Newcomb will step down and President Mark Troughton will serve as interim CFO. Block’s Pivot to Profits and AI Is Turning Heads Chime Financial (NASDAQ:CHYM) reported second-quarter results that showed accelerating member, revenue and transaction-profit growth, while the company raised its full-year outlook and outlined new product initiatives aimed at higher-income consumers. Active members grew 20% year over year to 10.4 million at the end of June, with approximately 200,000 net new active members added during the quarter. Revenue increased 27% from a year earlier, while adjusted EBITDA margin expanded 12 percentage points to 15%. The company reported $102 million of adjusted EBITDA and $28 million of net income, its second consecutive quarter of positive GAAP earnings per share. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control MarketBeat Week in Review – 05/11 - 05/15 “Q2 was an exceptionally strong quarter, with outperformance across key areas of our business,” Co-Founder and CEO Chris Britt said. He said the company continues to take primary-account share from legacy banks while deepening relationships with more than 10 million active members. Management highlighted early results from Chime Prime, a membership tier introduced in early April for members receiving at least $3,000 in qualifying monthly direct deposits. The offering includes 5% cashback in a member-selected category, a 3.75% savings APY, higher MyPay limits, access to Instant Loans, credit-building features and lifestyle perks including Priority Pass lounge access. → 3 Drone Stocks That Should Soar After the Summer Slump Chime Finally Turns Profitable—But Risks Remain Britt said Chime’s fastest-growing customer segment remains consumers earning more than $75,000 annually. He added that the number of new direct depositors reaching Prime status was at a record level during the quarter. According to CFO Matt Newcomb, Prime members have generated more than twice the revenue per active member, or RPAM, of the average active member to date. The company’s overall RPAM rose 6% year over year to $260 in the second quarter. Purchase and original instant transfer volume increased 20%, while payments and original instant transfer revenue rose 21%. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Newcomb said strong engagement with Prime’s cashback program, particularly in the gasoline category, resulted in modestly higher rewards costs than management expected during the quarter. However, the company expects those costs to decline going forward. Chime said payments revenue net take rates were pacing for 2 basis points of year-over-year growth in the third quarter. Credit-card purchase volume represented 27% of total purchase volume in the second quarter, up from 23% in the first quarter. Newcomb said newer customer cohorts have credit mix of about 50%. Chime continued to scale its liquidity products. MyPay originations totaled $4.5 billion in the quarter, with loss rates of 90 basis points. MyPay transaction profit more than tripled year over year to $73 million. President Mark Troughton said the company began rolling out higher MyPay limits of up to $1,000 during the week of the earnings call. He said the change may result in a slight rise in MyPay loss rates during the third and fourth quarters, but management expects higher transaction profit to more than offset that increase. Instant Loan originations grew nearly 70% sequentially to $300 million. The company said it expects Instant Loans to exit the third quarter at an annualized revenue run rate above $100 million. Chime also plans to begin beta testing a revolving unsecured line of credit later in the third quarter for Prime members with larger liquidity needs. In July, Chime launched Chime Invest, which offers managed portfolios through a registered investment advisor as well as commission-free self-directed investing in individual equities and exchange-traded funds. Britt said the product is intended to help members establish long-term investing habits through integration with their primary banking account. Management characterized Chime Invest primarily as an engagement and retention initiative rather than a material near-term direct revenue contributor. Chime announced that Allied Universal, which has approximately 320,000 North American employees, will offer the company’s Chime Workplace financial-wellness suite, including MyPay at Work. The company also signed a national retailer with about 35,000 employees, though it did not identify the retailer. Management said Chime Enterprise is not expected to be a meaningful contributor to member growth in 2026, but it could become a meaningful contributor to direct-depositor growth in 2027. Troughton said enterprise-acquired direct depositors have shown stronger usage and monetization than customers acquired through Chime’s consumer channel. Britt said the company continues to see a healthy consumer across its member base. He cited growth in direct-depositor income, account balances, discretionary spending and non-discretionary spending after adjusting for inflation. The company said it has not seen signs of stress in the performance of its liquidity products. For the third quarter, Chime forecast revenue of $680 million to $690 million, representing growth of 25% to 27%, and adjusted EBITDA of $105 million to $110 million, implying a 15% to 16% margin. For the full year, the company raised its revenue outlook to $2.725 billion to $2.745 billion, or growth of 25% to 26%. It expects adjusted EBITDA of $465 million to $475 million and a 17% adjusted EBITDA margin. Chime also raised its expected 2026 active-member additions to 1.8 million from its prior target of 1.4 million. Full-year incremental adjusted EBITDA margin is expected to exceed 60%. The company expects payroll costs in 2027 to remain flat relative to 2026. Chime expects $16 million to $20 million of net cash restructuring charges in the third quarter, partially offset by a $9 million to $12 million reversal of non-cash stock-based compensation expense. The company recently announced an internal reorganization that will reduce its workforce by about 10%. Britt said the move is intended to create a flatter, faster organization, while Newcomb said some payroll savings will be reinvested and the restructuring should support additional operating leverage. Newcomb also announced he will step down as CFO after a decade with Chime. Troughton will serve as president and interim CFO while the company searches for a permanent finance chief. Chime Financial is a U.S.-based financial technology company offering mobile-first banking services designed to reduce fees and simplify everyday transactions. Founded in 2013 and headquartered in San Francisco, Chime operates a digital bank platform that provides customers with a checking account, a savings account, and a debit card without monthly maintenance fees, overdraft charges, or foreign transaction fees. The company’s platform is accessible via its mobile app, enabling users to manage their finances, track spending, and access customer support from their smartphones. At the core of Chime’s service offering is its fee-free spending account, which includes early access to direct deposit funds—up to two days before scheduled payday—and instant transaction alerts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Chime Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

27% year-over-year revenue growth exceeds guidance Chime Prime™ launch fuels accelerating growth in Active Members, Purchase Volume, and ARPAM Achieves second consecutive quarter of GAAP profitability and raises full-year outlook SAN FRANCISCO, August 05, 2026--(BUSINESS WIRE)--Chime® (Nasdaq: CHYM) today reported financial results for the quarter ended June 30, 2026. "We delivered another strong quarter, with accelerating revenue growth, expanding margins, and a second consecutive quarter of GAAP profitability," said Chris Britt, CEO and Co-founder of Chime. "The strong adoption of Chime Prime, continued momentum across our liquidity products, and major new Chime Enterprise employer partnerships show that our strategy is working. As we continue to expand our product portfolio and deepen member engagement, we believe we are well positioned to achieve our ambition to be the market leader in primary bank account relationships in the U.S." Second Quarter 2026 Financial Highlights We reported strong top-line and bottom-line growth in the second quarter, exceeding our guidance. These results build on our seasonally strong first quarter, when tax refund activity drives seasonally high transaction volumes and pulls forward member acquisition and reengagement. Revenue was $670 million, up 27% year over year. Gross profit was $595 million, yielding an 89% gross margin. Transaction profit (non-GAAP) grew 36% year over year to $492 million, yielding a 73% transaction margin. Net income was $28 million and net margin was 4%, delivering our second consecutive quarter of positive GAAP net income. Adjusted EBITDA (non-GAAP) was $102 million. Adjusted EBITDA margin of 15% expanded more than 12 percentage points year over year, translating to a 60% incremental adjusted EBITDA margin. Active Members grew 20% year over year to 10.4 million. Over the last year, we added 1.7 million net new Active Members, more than any consecutive 12-month period in our history. In Q2, we added approximately 200,000 net new Active Members quarter over quarter, twice as many as we typically add in seasonally slower second quarters. Average Revenue per Active Member (ARPAM) grew 6% year over year to $260. PV growth accelerated to 17% year over year to $38 billion and 20% year over year to $39.4 billion when including OIT volume. Business Highlights Chime Prime accelerates member engagement: In Q2, Chime Prime fueled the acceleration in Active Member, PV, and ARPAM growth. We added more members who deposit at least $3,000 per month than ever before. Our fastest-growing segment continues to be members making $75,000 and more annually, who are increasingly depositing more of their income to Chime. Chime Prime is also driving Chime Card adoption, which earns higher interchange rates, net of rewards, and credit mix is now at 27% of total PV. Chime Prime members generated more than double the ARPAM of the average Active Member. MyPay® transaction profit dollars more than tripled: MyPay origination volume grew to $4.5 billion in Q2, while the loss rate improved to 0.9%. Strong origination volume and a lower loss rate drove MyPay transaction profit dollars to $73 million, more than tripling the amount in one year. Instant Loans expansion: Instant Loans originations grew nearly 70% quarter over quarter to $300 million, while loss rate performance remained strong, with up to 50% lower loss rates for repeat borrowers. We see significant growth potential as we expand loan eligibility, increase limits and duration, and serve higher-income segments with greater liquidity needs. Based on this momentum, we expect Instant Loans to exit Q3 with an annualized revenue run rate of more than $100 million. Chime Enterprise continued momentum: Chime Enterprise recently signed two major new employer partners, including Allied Universal, one of the largest employers in the U.S., and a large national retailer. Together, these companies employ more than 350,000 people across the U.S. Chime Invest™ launches: We expanded our product portfolio with the launch of Chime Invest, bringing commission-free investing and expert-managed portfolios with no account minimums1 into the Chime app. By adding investing to where members already get paid, spend, save, and build credit, we're strengthening Chime's role as their primary financial relationship and expanding our ability to serve more Americans across every stage of their financial journey. Third Quarter and Full-Year 2026 Outlook We are raising our full-year 2026 guidance based on second-quarter performance. For the full year of 2026, we now expect: Revenue between $2.725 and $2.745 billion, representing year-over-year revenue growth between 25% and 26%. Adjusted EBITDA between $465 and $475 million, with an adjusted EBITDA margin of 17%, representing an incremental adjusted EBITDA margin of approximately 63%. For the third quarter of 2026, we expect: Revenue between $680 and $690 million, resulting in year-over-year revenue growth between 25% and 27%. Adjusted EBITDA between $105 and $110 million, with an adjusted EBITDA margin between 15% and 16%. The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and is subject to a number of risks. See the cautionary note regarding "Forward-Looking Statements" below. CFO Transition Chime today also announced that Matt Newcomb is stepping down as Chief Financial Officer, effective Friday, August 7, 2026. Mark Troughton, Chime's President, has been appointed President & Interim Chief Financial Officer. Mr. Troughton is a seasoned public company executive and Chartered Accountant with deep knowledge of Chime's business. In his current role, he oversees Operations, Risk, Lending, Corporate Development, and Strategy, and has been instrumental in shaping the company's growth and operating model. The Company has initiated an executive search for a permanent Chief Financial Officer. To ensure a seamless transition, Mr. Newcomb will remain with Chime as an advisor during the search and leadership transition period. "Over his 10-year tenure, Matt has been instrumental to the success of Chime. He drove our financial and investment strategy as we pioneered a new category and scaled our business through multiple private financing rounds, and guided us through our IPO and transition to a public company. His impact on Chime extended well beyond his role as CFO and, while we will all miss Matt, he has earned a well-deserved break," said Mr. Britt. "Mark is one of Chime’s most seasoned executives with deep knowledge of our business and financials. Having worked alongside Mark for more than 20 years, I know he has the experience to lead our finance team through this transition to a new CFO." Conference Call Information Chime will host a conference call to discuss its second quarter 2026 financial results and financial outlook at 3 p.m. Pacific Time (6 p.m. Eastern Time) today. A live webcast of the earnings conference call will be accessible on the Events & Presentations section of Chime's Investor Relations website at investors.chime.com. A replay will be available on the website following the call. An investor presentation, including supplemental financial information and reconciliation of certain non-GAAP financial measures to their nearest comparable GAAP measures, will be available through Chime's Investor Relations website at investors.chime.com. About Chime Chime (Nasdaq: CHYM) is a financial technology company founded on the premise that core banking services should be helpful, easy, and free. We offer a broad range of low-cost banking, payments, lending, and investing products that address the most critical financial needs of everyday people. Our member-aligned business model has helped millions of people to unlock financial progress™. Funds in Chime deposit accounts are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits*. *Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. FDIC deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," "goal," "objective," "seek," or "continue," or the negative of these words or other similar terms or expressions that concern Chime’s expectations, strategy, plans, or intentions. Forward-looking statements in this release may include, among others, statements relating to our future results of operations or financial performance; expectations regarding certain of our key financial and operating metrics; our business and growth strategy, including future product development plans; our ability to attract and retain Active Members and develop primary account relationships; our market opportunity; the performance of newly launched products and innovations; our technological capabilities; the demand for Chime’s products and services; our expectations and management of future growth and acceleration; and our expectations regarding our industry and traditional banks. Investors should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made or on management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. These risks and uncertainties include risks related to our ability to attract and retain Active Members; our relationships with our bank partners; changes in rules and practices concerning interchange fees, card network fees, and other fees and assessments; our ability to maintain and protect our brand; our ability to maintain member satisfaction and provide reliable member support; our ability to develop new products and enhancements for existing products; our reliance on third parties and their systems; our history of net losses and ability to achieve and maintain profitability; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our most recent Quarterly Report on Form 10-Q. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. Except as required by law, Chime does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise. Non-GAAP Financial Measures To supplement our consolidated financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use certain financial measures that are not prepared in accordance with GAAP, including transaction profit, transaction margin, adjusted EBITDA, and adjusted EBITDA margin, to facilitate analysis of our financial trends and for internal planning and forecasting purposes. We use these non-GAAP financial measures in conjunction with GAAP measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-GAAP financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected on our consolidated statements of operations. Accordingly, our non-GAAP financial measures are presented for supplemental purposes only and should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this release. We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures included in this release, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these forward-looking non-GAAP metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. Adjusted EBITDA We define adjusted EBITDA as net income (loss), adjusted for (i) depreciation and amortization expense, (ii) other income (expense), net, (iii) provision (benefit) for income taxes, (iv) stock-based compensation expense including related payroll tax, and (v) certain expenses that do not reflect our core operations and may vary significantly from period to period, including restructuring charges, impairment charges, stock-based charitable expense, and certain legal and regulatory charges, as applicable. Adjusted EBITDA Margin We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We believe that adjusted EBITDA and adjusted EBITDA margin are key measures of our operating performance, and management uses these measures to formulate business plans, prepare budgets and forecasts, and make strategic decisions. Transaction Profit We define transaction profit as gross profit less transaction and risk losses. Transaction Margin We define transaction margin as transaction profit divided by revenue. We believe that transaction profit and transaction margin are key measures of the incremental profit generated by member transactions. Key Metrics Definitions We use the following key metrics to help us evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies. Active Members We define an Active Member as a member who has initiated a money movement transaction on our platform in the last calendar month of the applicable period. Member-initiated money movement transactions include, but are not limited to, purchases with Chime-branded debit or credit cards, funding a member account, withdrawing funds from an ATM, sending or receiving funds with Pay Anyone, or taking or repaying a MyPay advance or an Instant Loan. Active Members are a key indicator of the scale of our engaged member base. Average Revenue Per Active Member ("ARPAM") We define Average Revenue per Active Member ("ARPAM") as revenue generated in the calendar quarter multiplied by four and divided by the average of the number of Active Members at the end of the prior quarter and the end of the current quarter. ARPAM is a key indicator of our ability to monetize member engagement, as it captures both the impact of payments revenue from Purchase Volume as well as the monetization of products that contribute to platform-related revenue. Purchase Volume We define Purchase Volume as the total dollar value of member purchase transactions using Chime-branded debit or credit cards during a given period, net of any adjustments or refunds. Purchase Volume is a key driver of payments revenue, because the interchange fees upon which our payments revenue is based are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card networks. Purchase Volume is also a key indicator of aggregate member engagement. Purchase Volume does not include other types of transaction volumes such as deposits, ATM withdrawals, SpotMe and MyPay advances, Instant Loans, sending or receiving funds with Pay Anyone, outbound instant transfers, and other types of ACH or direct debit transfers. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805473866/en/ Contacts Investors and Analysts: [email protected] Press: [email protected]

StepStone Group Inc. (STEP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +30%. Revenues are expected to be $307.17 million, up 29.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 5.33% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For StepStone Group, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.38%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that StepStone Group will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that StepStone Group would post earnings of $0.51 per share when it actually produced earnings of $0.57, delivering a surprise of +11.76%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. StepStone Group doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Financial - Miscellaneous Services industry, Chime Financial, Inc. (CHYM), is soon expected to post loss of $0.01 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +99.9%. Revenues for the quarter are expected to be $640.6 million, up 21.3% from the year-ago quarter. The consensus EPS estimate for Chime Financial, Inc. has been revised 5.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -25.81%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Chime Financial, Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StepStone Group Inc. (STEP) : Free Stock Analysis Report Chime Financial, Inc. (CHYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Chime Financial, Inc. (CHYM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.9%. Revenues are expected to be $640.6 million, up 21.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 5.58% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chime Financial, Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -25.81%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Chime Financial, Inc. will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chime Financial, Inc. would post earnings of $0.03 per share when it actually produced earnings of $0.13, delivering a surprise of +333.33%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chime Financial, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Financial - Miscellaneous Services industry, Hut 8 (HUT), is soon expected to post loss of $0.48 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -242.9%. This quarter's revenue is expected to be $76.8 million, up 86% from the year-ago quarter. The consensus EPS estimate for Hut 8 has been revised 134.4% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -33.68%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Hut 8 will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chime Financial, Inc. (CHYM) : Free Stock Analysis Report Hut 8 Corp. (HUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Alerus (ALRS) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.56%. A quarter ago, it was expected that this company would post earnings of $0.58 per share when it actually produced earnings of $0.89, delivering a surprise of +53.45%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Alerus, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $81.41 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.94%. This compares to year-ago revenues of $75.39 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Alerus shares have added about 47.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While Alerus has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Alerus was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $76.75 million in revenues for the coming quarter and $3.03 on $307.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Chime Financial, Inc. (CHYM), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.9%. The consensus EPS estimate for the quarter has been revised 5.6% lower over the last 30 days to the current level. Chime Financial, Inc.'s revenues are expected to be $640.6 million, up 21.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alerus Financial (ALRS) : Free Stock Analysis Report Chime Financial, Inc. (CHYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research