管理層發言
Good afternoon, and welcome to Chime Financial Inc.'s Second Quarter 2026 Earnings Conference Call. 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.
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.
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 and 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 roadmap 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 APY, higher MyPay limits, automatic qualification for an instant loan prequalification 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 now 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 expect it 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 toward helping our members 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 can not 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 truncated 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. The Instant Loans 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 puts 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 four 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.
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 result 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 re-engagement 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, our 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 drive 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 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 attach 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 2026, 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 five. 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 this such a special place to build.
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 he's 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.
分析師問答
We will now begin the question-and-answer session. Our first question comes from Tien-Tsin Huang with JPMorgan.
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.
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 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 superpowers that can provide. Small, tight-knit teams move faster. 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. While there will be some OpEx savings here, we're also going to reinvest some of the savings for the next leg of growth.
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 into 2027, we expect to keep payroll costs flat relative to 2026.
Yes, that was clear. Just my quick follow-up then. It sounds like the health of the consumer is quite good across your 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 any other color you can add on the health of the consumer?
Yes, I'll take that. I think similar to what you're seeing across the board from other companies and other banking platforms that are reporting, while consumers say 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, 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 from several quarters ago persist, but we continue to see a very healthy consumer this quarter once again. We enjoy these primary account relationships, and if and when we ever saw a bump in behavior or an uptick in unemployment, we'd be the first ones to see it. We just don't see it. So I would say resilient and strong consumer spend and health across the board is the behavior we're seeing for sure.
Our next question comes from James Faucette with Morgan Stanley.
I wanted to ask—I'll put both my questions together because I think they're probably related—comments around attracting users that have income above $75,000 a year, etc., seems pretty important. Just wondering if there are particular products that you can attribute to that kind of attraction? And 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 product's potential contribution to growth, etc.?
Thanks for the question, James. I think it's the combination of products that are continuing to drive 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—this is a really powerful combination of services, especially when you include some of the liquidity products we have there: 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 segment once again. So we feel really good about that. You can see it in the results: these higher-income consumers now have more motivation to put more deposits into Chime. We're seeing more of our new direct depositors than ever on an absolute basis qualifying for the $3,000-plus tier that you get with Chime Prime benefits. So you should expect to continue to see more products and services that appeal to a broader segment of consumers, including higher-income consumers. Mark, do you want to talk about the line of credit launch?
Yes. Sure. Thanks, Chris. James, on the line of credit, we've said for some time that there is a huge opportunity in our member base for low-cost high-quality lending products. The focus of the 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 MyPay 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. To reiterate, the line of credit is a Chime Prime product. It will only be available to members with direct deposits of more than $3,000 a month. And again, we're going to leverage that privileged account data and our position at the top of the repayment stack to drive longer relationships and better transaction profit margins.
Our next question comes from Darrin Peller with Wolfe Research.
I want to touch on MyPay for a moment because it continues to show strength, but you've talked about a few different levers, including flexing loss rates up slightly with higher limits and lower eligibility requirements. We saw loss rates decline again to about 0.9%, which is a good sign. 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?
That's a great question. MyPay had another fantastic quarter. Originations were up 15% year-over-year. Revenue was up 47% year-over-year. Loss rates came in again below 1%. The result of that was a transaction profit margin of 64% and a tripling of our transaction profit year-over-year. So we feel really good about that. As you look forward, we definitely see more opportunity on MyPay. As an example, we've actually just rolled out access to higher MyPay limits up to $1,000—literally that happened this week. These higher limits will provide our members even greater access to the liquidity they need, and in turn, will drive greater monetization for time. Our focus is on optimizing for transaction profit rather than purely minimizing loss rates. So you will likely see a slight increase in MyPay loss rates for Q3 and Q4, but that will be much more than compensated for by increases in transaction profit. I also think it's worth reminding everyone that MyPay still operates at a price level that is roughly half that of many of our competitors. That's important because it demonstrates the power of our low-cost model and our privileged deposit relationships.
That's fair. Quick follow-up: on the enterprise side, it was great to see the announcement of a large partner. Maybe a quick update on any attachment or adoption trends with early partners and what the pipeline looks like going forward. And I also want to reiterate and thank Matt for everything—Matt, you've been a huge help. Good luck to you.
Let me start by saying how proud I am of the enterprise team and the great progress they've been making. I'm really excited about the pipeline we have. Mark, why don't you cover this one?
Yes. 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. I think you've seen that this quarter and that this resonates with the market. We're really excited about Allied and the second retailer whose details we'll share once we actually roll it out. The pipeline is strong and continues to grow. We expect to have more exciting enterprise announcements in the coming months. As it relates to the future, we don't expect enterprise to be a meaningful contributor to member growth in 2026. We do see it becoming a meaningful contributor to direct-to-member growth in 2027. We're not giving specific guidance related to adoption and conversion at this point, but we will include the impact of enterprise in our overall member growth guidance for 2027.
Our next question will come from Will Nance with Goldman Sachs.
First of all, Matt, it's been a pleasure working with you. It sounds like you got your hands full at home, but you're leaving some big shoes to fill. Second, congrats on all the great business developments and 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. How are you thinking about the momentum there and the sustainability of customer acquisition? And then more importantly, on direct deposit attach, you mentioned late-stage direct deposit conversion—maybe help unpack that and talk about the quality of the account growth you're adding.
Thanks, Will, and I appreciate the kind words. We are seeing a ton of momentum on the member growth side. As a quick reminder, our business has seasonality. We always see a more muted quarter-to-quarter growth in actives from Q1 to Q2 due to tax refund-related activity. The best way to look at our member growth is year-over-year, and we had a strong showing in Q2. We accelerated member growth to 20% year-over-year and added twice as many active members in the quarter than we did in the quarter last year. It's a record number of actives added over the last 12 months: 1.7 million. What's driving this includes strong unaided brand awareness and our leading NPS score. The Chime message continues to resonate and was strengthened by Chime Prime. We also see the benefit of our early engagement initiatives. One thing we're emphasizing is that it's not just the quantity of new member growth but the quality as well. Driven by Chime Prime, we added the highest-ever number of members making $3,000 or more in deposits. We're also seeing retention benefits from Chime Prime adoption. All of this comes with strong ROI: transaction profit payback periods of 5 to 6 quarters and CACs of 9x in our recent cohorts. This momentum is giving us the confidence to raise our full-year active member net-add target to 1.8 million, our largest cohort ever and well ahead of our original goal of 1.4 million for the year. The direct depositor progress has been great. It's not just folks coming to us and choosing direct deposit right out of the gate, but many have tried us for a few months and now choose to deepen their relationship and choose us as their direct deposit relationship. So great progress across the board.
That's great. If I could ask a follow-up on Chime Prime: could you talk through some of the learnings since the launch? As you think about customers that have access to the membership tier, are you seeing Prime come more from wallet-share expansion within the base versus net-new origination attracting higher-income users? How should we think about the mix, and how are you marketing to the existing customer base to drive wallet-share expansion and ultimately drive credit mix higher over time?
I think the results are twofold. Among our existing member base, we are definitely seeing strong uptake and adoption, and we can see that a portion of our member base is both signing up for Prime and adding more deposits into their accounts. That's driving additional engagement and spend. But we're also excited about the top-of-funnel opportunity—still very early days—where Chime Prime can be a key driver of new member acquisition. The results have been strong. We're seeing more people than ever depositing their first deposit above $3,000. You should expect this to be a key part of our value proposition going forward. We're not going to stop adding features to this membership tier that will make Chime even more broadly appealing. Now that we're rolling out Chime Invest with managed portfolios and direct equity purchases all inside the app where you get your direct deposit, we see ourselves continuing to round out a complete financial services app to serve all needs, including for people at higher income levels. We're really excited about the opportunity ahead.
Our next question will come from Sanjay Sakhrani with KBW.
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. Does that help give you ammunition to expand the credit box? I know you talked about expanding MyPay credit lines, but as we think about growth going forward, does that enable you to do more? And what are some of the learnings as a result of all of this?
Thanks, Sanjay. We are continuing to optimize our credit models and identify new pockets of opportunity. A good example is the recent launch of the $1,000 MyPay limit—we've identified broad pockets of people who can handle that and are extending more to them. On instant loans, the same approach applies. We continue to see our overall loss rates come down. This quarter we had a big bump in originations of first-time instant loans, and first-time borrowers have a significantly higher loss rate than our repeat borrowers—repeat borrowers have about 50% lower loss rates. So we're seeing real improvement in loss rates and our underwriting capability across the board.
Just a follow-up: Matt talked about moderating rewards costs in the second half. Can you talk about what's driving that? Is that an intentional move or a mix of redemptions? I want to understand the dynamics.
Yes. Reward costs were modestly higher than we expected in Q2, primarily driven by the very strong member response to Prime's 5% cash-back offer, particularly in the gas category following higher gas prices. That drove higher engagement and modestly higher contra revenue rewards cost. The impact from Prime has far outweighed the slightly higher rewards cost, and those costs are already coming down in Q3. Based on July results, we expect 2 basis points of year-over-year expansion in overall payments revenue blended take rates for Q3. Strategically, the take-rate expansion opportunity remains a multiyear tailwind as we continue to shift more volume to credit. 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 the card at high rates and have about 50% credit mix for those cohorts.
Our next question will come from Adam Frisch with Evercore.
Matt, congrats on your decision. It goes fast, and I hope you enjoy it. You raised the full-year revenue midpoint by about $60 million and EBITDA by roughly $47 million against the second-quarter beat. 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 explained. But where else from your broad array of growth and operating leverage do you feel most comfortable? I have a quick follow-up.
I think the big drivers are the acceleration in volume growth, with Prime being a major factor behind that acceleration. That inflected in Q2 and we're continuing to see strong momentum in the back half of the year. The second driver is continued momentum on our liquidity products across MyPay and instant loans. Those are the primary factors behind our increased confidence for the back half and the resulting flow-through to the rest of the P&L.
I couldn't get through a Q&A without asking about enterprise. Still early days, but great to see 2027 will see some benefit to new member adds. What are the early takes and observations with some of your early partners?
I'll pick that up. We continue to see strong adoption, and what we've found is that direct depositors acquired through enterprise actually outperform what we see in our consumer channel. The monetization there is looking very strong.
Our next question will come from Andrew Jeffrey with William Blair.
Appreciate it, and congrats, Matt. I wanted to ask about Prime: it seems to really be gaining momentum. Can you elaborate on how much Prime is a lever for upgrades from existing members who increase direct deposit amounts versus a new member origination vehicle that attracts higher-income users? How much do you think about each of those contributors from Prime?
Thanks for the question. It's both. We see a strong uptick from existing members who elect to give us more of their direct deposits because they now have more reason to do that. But the larger opportunity is over time to expose Prime to many more consumers who may have been Chime users before but weren't ready to engage at this level. We've made it easier for new members to engage with features like instant funding and mobile check deposit before they set up direct deposit. Now, with Prime, when a life change or job switch happens, there are compelling reasons for people to put their full deposit with us. Our marketing and growth teams view Prime as an important top-of-funnel value proposition and we think there's a lot of runway ahead for it. More of the existing member base will migrate to Prime because it is a powerful set of benefits.
Our next question will come from Alexander Markgraff with KeyBanc Capital Markets.
Chris, Matt—thanks. Matt, it's been a pleasure. Maybe two for me: starting on Chime Invest, curious on the product vision and evolution versus what we're seeing at launch. It's a big category—where do you see the offering going? And any indication of account flows you could share to help think about where members are getting these invest dollars today? I have a quick follow-up afterwards.
I'm excited about expanding our platform beyond checking, savings and short-duration lending products. We now have an opportunity to help members build long-term wealth. In surveys, many members said they'd like to open an investment account with Chime. We already have almost 80% of members using our high-yield savings, and many consumers think of brokerage as a way to save. The interest among our existing member base is strong. The magic will be the seamless integration with the bank account and direct deposit—making it easy and habitual to move money into investments. We made it simple: you can start with $1 if you want; we offer managed portfolios and free self-directed investing. Our expectation is that this will be an engagement and retention driver and will deepen wallet share. It also complements Prime and instant loans in helping expand into higher-income segments. We're not building a day-trading app; we're building integrated, easy access to long-term investing to help members grow wealth over time.
One more: last quarter you commented on sales and marketing and spending a bit more around Prime. Looking at dollar spend, it's fairly flat but you're seeing benefit from Prime this quarter and strong net adds. Anything that positively surprised you? Any thoughts on marketing in the second half?
As we indicated in prior quarters, we expected to have a marketing push around major product launches. We've done that historically with product rollouts and we've done that here with Chime Prime. We expect to continue to push Prime as we integrate it further into the top of the funnel. That's the overall trajectory, fairly similar to how we've previously guided.
Our next question will come from Joseph Vafi with Canaccord.
I'll add my congrats and we'll miss you, Matt. It's been a pleasure learning the Chime model with you. Maybe on enterprise and the Allied win—could you unpack that win, the sales cycle, implications for the pipeline and what it adds to momentum for signing more customers this year? Quick follow-up after.
Finding a partner like Allied involves many demand-generation tactics in the enterprise channel: outbound, inbound, sales, and responding to RFPs. For a large employer, sales cycles can run anywhere between six to 12 months. I'm not going into specifics on Allied, but the sales cycles are long. Once you're in, implementations and adoption follow. The good news is that once you're in, these deals are self-generating with a captive audience and high switching costs. What makes them hard to win is also what gives them real longevity. Over time, we believe they will result in significantly more efficient acquisition of high-value direct deposit customers.
Great. My follow-up: the revenue model around Chime Invest—should we think about it as more of a retention and engagement tool versus material direct revenue in the near term?
Chime Invest is primarily an engagement and retention driver in the near term rather than a substantial direct revenue generator. We're excited to add this new category of benefit directly integrated with the place members manage their money each day.
This concludes the question-and-answer portion of today's call. I'd like to turn it back over to Chris Britt for any closing remarks.
I just want to congratulate the team on an awesome quarter. The performance demonstrates that the future is bright here, and we're just getting started. Looking forward to seeing you all out on the road soon.
Thank you. This concludes today's meeting. We appreciate your time and participation, and you may now disconnect.