Chime Financial, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
CHYM$31.33+3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001795586-26-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001795586-26-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 144 previous paragraphs and 143 current paragraphs.
100 unchanged; 33 reworded; 9 added; 10 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
In the second quarter of 2026, we launched Chime Prime, our premium membership tier. Chime Prime offers members cash back on a spending category of choice, which is recorded as a reduction of revenue.
Current report
Transaction and risk losses for the three months ended June 30, 2026 increased by $5.0 million, or 5%, year over year, driven by an increase of $9.9 million in transaction and risk losses related to our Instant Loans product primarily due to higher volumes, and an increase of $8.3 million in transaction dispute losses primarily attributable to the increase in Purchase Volume and increase in the rate of disputed transactions. These increases were partially offset by a decrease of $13.0 million in losses related to MyPay, primarily attributable to improved loss rates on originations made during the current period.
Current report
Member support and operations expenses for the three and six months ended June 30, 2026 decreased by $93.5 million or 46% and $76.8 million, or 27%, year over year driven by a decrease in stock-based compensation and related payroll tax of $113.1 million and $105.3 million as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025. This was partially offset by a $10.0 million and $12.7 million increase in member onboarding costs in the three and six months ended June 30, 2026 attributable to activation expenses associated with Chime Prime.
Current report
Sales and marketing expenses for the six months ended June 30, 2026 increased by $12.0 million, or 4%, year over year driven by an increase of $42.0 million in marketing and promotional activities in the six months ended June 30, 2026 compared to the prior year. This was partially offset by a decrease in stock-based compensation and related payroll tax of $34.8 million in the six months ended June 30, 2026 compared to the prior year as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025.
Current report
Technology and development expenses for the three and six months ended June 30, 2026 decreased by $509.6 million, or 82%, and $477.7 million, or 68%, year over year primarily driven by a decrease in stock-based compensation and related payroll tax of $511.1 million and $487.4 million in the three and six months ended June 30, 2026 compared to the prior year as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025.
Current report
General and administrative expenses for the three and six months ended June 30, 2026 decreased by $199.5 million, or 71%, and $176.2 million, or 54%, year over year, primarily driven by a decrease in stock-based compensation and related payroll tax of $193.8 million and $173.4 million in the three and six months ended June 30, 2026 compared to the prior year as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025.
Current report
In June 2026, we established a trust to enter into a credit agreement with Goldman Sachs Lending Partners LLC as the lender which provides for a commitment amount of $200.0 million, with a total facility limit of $500.0 million, maturing on June 1, 2028 (the “Warehouse Facility”), with an intent to access additional financing in support of our MyPay product and to supplement our existing bank partner model. As of June 30, 2026, $50.0 million was outstanding under the Warehouse Facility with $150.0 million of remaining committed capacity available. The expected utilization of the Warehouse Facility may depend on a variety of factors, including the growth of MyPay origination volumes. We maintain a reserve account pledged as first-priority collateral to the lender which is not available for general use and may only be disbursed in accordance with the Warehouse Facility’s payment waterfall. The Warehouse Facility includes customary affirmative and negative covenants and requires us to maintain certain levels of minimum liquidity and minimum tangible net worth. We are in compliance with all covenants as of June 30, 2026. See Note 11 -Indebtedness within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
Current report
SpotMe and other negative balances transaction and risk losses, and improved MyPay loss rates and unit economics. See Note 8 -Credit Obligations within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
Current report
For the six months ended June 30, 2025, cash provided by financing activities was $449.9 million, primarily due to $772.6 million from the issuance of common stock in connection with our IPO in the second quarter of 2025, net of offering costs paid, partially offset by taxes paid related to the net share settlement of restricted stock units of $322.6 million.
Removed paragraphs (10)
Previous report
Our cost of revenue will be impacted by our growth as well as our ability to drive efficiencies in transaction processing and bank partner costs, as well as card and ATM costs, net of incentives. In absolute dollars, we expect that cost of revenue will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect cost of revenue will fluctuate from period to period in the near term and stabilize in the long term as we scale.
Previous report
Our transaction and risk losses will be impacted by the expansion of existing liquidity products and the introduction of new liquidity products offered through our platform. In absolute dollars, we expect that transaction and risk losses will fluctuate from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that transaction and risk losses will fluctuate from period to period in the near term and in the long term.
Previous report
In absolute dollars, we expect that member support and operations expenses will fluctuate from period to period in the near term and increase in the long term as we continue to grow our Active Member base. As a percentage of revenue, we expect that member support and operations expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
Previous report
In absolute dollars, we expect that sales and marketing expenses will generally increase from period to period in the near term and increase in the long term as we continue to invest in member acquisition. As a percentage of revenue, we expect that sales and marketing expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
Previous report
In absolute dollars, we expect that technology and development expenses will generally increase from period to period in the near term and increase in the long term as we continue to make investments in product innovation. As a percentage of revenue, we expect that technology and development expenses will fluctuate from period to period in the near term and decrease in the long term as we scale and continue to drive operational efficiencies, including through the use of AI and automation.
Previous report
In absolute dollars, we expect that general and administrative expenses will generally increase from period to period in the near term and increase in the long term. As a percentage of revenue, we expect that general and administrative expenses will fluctuate from period to period in the near term and decrease in the long term as we scale.
Previous report
Member support and operations expenses for the three months ended March 31, 2026 increased by $16.8 million, or 21%, year over year driven by an increase in stock-based compensation and related payroll tax of $7.8 million as the liquidity-based vesting condition for certain stock-based awards was met upon our IPO in the second quarter of 2025. Additionally, there was an increase of $5.4 million in third-party member support and loss prevention costs in the three months ended March 31, 2026, associated with an increase in Active Members.
Previous report
Technology and development expenses for the three months ended March 31, 2026 increased by $31.9 million, or 41%, year over year primarily driven by an increase in stock-based compensation and related payroll tax of $23.7 million as the liquidity-based vesting condition for certain stock-based awards was met upon our IPO in the second quarter of 2025.
Previous report
General and administrative expenses for the three months ended March 31, 2026 increased by $23.3 million, or 49%, year over year, primarily driven by an increase in stock-based compensation and related payroll tax of $20.5 million as the liquidity-based vesting condition for certain stock-based awards was met upon our IPO in the second quarter of 2025.
Previous report
For the three months ended March 31, 2025, cash used in financing activities was $126.0 thousand, consisting of $0.8 million from payment of debt issuance costs related to our credit facility, nearly entirely offset by proceeds from the exercise of stock options.
Reworded paragraphs (33)
Previous wording
This section presents management’s perspective on our financial condition and results of operations. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report on Form 10-Q, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). This discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed elsewhere, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Financial data as of and for the three months ended March 31, 2026 and 2025 has been derived from our unaudited condensed consolidated financial statements appearing at the beginning of this Quarterly Report on Form 10-Q. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Chime is a technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. We are not a Member of the FDIC, and FDIC-insured accounts are provided by our bank partners.
Current wording
This section presents management’s perspective on our financial condition and results of operations. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”), and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). This discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed elsewhere, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Financial data as of and for the three and six months ended June 30, 2026 and 2025 has been derived from our unaudited condensed consolidated financial statements appearing at the beginning of this Quarterly Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Chime is a technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. We are not a Member of the FDIC, and FDIC-insured accounts are provided by our bank partners.
Previous wording
Through our broad suite of products, we have built trusted relationships with 10.2 million Active Members as of March 31, 2026. The majority of our Active Members rely on Chime to serve as their primary financial relationship, which we believe are the most valuable relationships in consumer financial services. As our members’ central financial hub, Chime becomes the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement and exceptional member satisfaction.
Current wording
Through our broad suite of products, we have built trusted relationships with 10.4 million Active Members as of June 30, 2026. The majority of our Active Members rely on Chime to serve as their primary financial relationship, which we believe are the most valuable relationships in consumer financial services. As our members’ central financial hub, Chime becomes the platform through which members consistently deposit their paychecks and conduct their everyday spend, creating durable and long-lasting relationships with high engagement and exceptional member satisfaction.
Previous wording
The following table presents a reconciliation of net income to adjusted EBITDA for each of the periods indicated:
Current wording
The following table presents a reconciliation of net income (loss) to adjusted EBITDA for each of the periods indicated:
Previous wording
We offer our members access to over 45,000 fee-free ATMs. Each time members withdraw money at certain ATMs that are not in our network of fee-free ATMs, we charge them a fixed ATM fee in accordance with the terms and conditions in the member agreements. As we maintain control of the integrated transaction processing services before delivery to our members, we record revenue on a gross basis.
Current wording
We offer our members access to a network of fee-free ATMs. Each time members withdraw money at certain ATMs that are not in our network of fee-free ATMs, we charge them a fixed ATM fee in accordance with the terms and conditions in the member agreements. As we maintain control of the integrated transaction processing services before delivery to our members, we record revenue on a gross basis.
Previous wording
Member support and operations expenses include the costs of the third-party vendors we use for certain member support and loss prevention services, the costs of physical card issuance, software to help manage member interactions, and member onboarding and account verification expenses. Member support and operations also includes personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in member support, risk, and operations functions, and allocated overhead.
Current wording
Member support and operations expenses include the costs of the third-party vendors we use for certain member support and loss prevention services, the costs of physical card issuance, software to help manage member interactions, and member onboarding, activation, and account verification expenses. Member support and operations also includes personnel-related expenses including salaries, employee benefit costs, and stock-based compensation for employees engaged in member support, risk, and operations functions, and allocated overhead.
Previous wording
Comparison of the three months ended March 31, 2026 and 2025
Current wording
Comparison of the three and six months ended June 30, 2026 and 2025
Previous wording
Total revenue for the three months ended March 31, 2026 increased by $128.6 million, or 25%, year over year, primarily driven by the growth of our total Active Members and the associated increase in Purchase Volume, a shift in payment mix toward credit from debit, as well as the continued growth of MyPay and outbound instant transfers.
Current wording
Total revenue for the three and six months ended June 30, 2026 increased by $141.6 million or 27% and $270.3 million, or 26%, year over year, primarily driven by the growth of our total Active Members and the associated increase in Purchase Volume, a continued shift in payment mix toward credit from debit with the launch of Chime Prime, as well as the continued growth of MyPay, Instant Loans, and outbound instant transfers.
Previous wording
Payments revenue increased by $57.3 million, or 15%, for the three months ended March 31, 2026 compared to the same period in 2025.
Current wording
Payments revenue increased by $63.9 million or 17% and $121.3 million, or 16%, for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Previous wording
For the three months ended March 31, 2026, this increase primarily reflected a $57.6 million, or 54%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2025. The increase in payments revenue was driven by a $4.2 billion, or 12%, increase in Purchase Volume for the three months ended March 31, 2026 compared to the same period in 2025. For the three months ended March 31, 2026 and 2025, interchange-based fees from debit card transactions represented 41% and 52% of revenue, with debit card transactions representing 77% and 84% of Purchase Volume. For the three months ended March 31, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 21% of revenue, with credit card transactions representing 23% and 16% of Purchase Volume.
Current wording
For the three months ended June 30, 2026, this increase primarily reflected a $63.7 million, or 62%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2025. The increase in payments revenue was driven by a 5.6 billion, or 17%, increase in Purchase Volume for the three months ended June 30, 2026 compared to the same period in 2025. For the three months ended June 30, 2026 and 2025, interchange-based fees from debit card transactions represented 39% and 50% of revenue, with debit card transactions representing 73% and 84% of Purchase Volume. For the three months ended June 30, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 20% of revenue, with credit card transactions representing 27% and 16% of Purchase Volume.
Previous wording
The increase in Purchase Volume was driven, in part, by a 1.6 million, or 19%, increase in Active Members as of March 31, 2026 compared to March 31, 2025. Increasing the number of Active Members on our platform helps drive Purchase Volume, which increases the interchange-based fees generated and the payments revenue that we recognize.
Current wording
The increase in Purchase Volume was driven, in part, by a 1.7 million, or 20%, increase in Active Members as of June 30, 2026 compared to June 30, 2025. Increasing the number of Active Members on our platform helps drive Purchase Volume, which increases the interchange-based fees generated and the payments revenue that we recognize.
Previous wording
Platform-related revenue for the three months ended March 31, 2026 increased $71.3 million, or 50%, year over year. For the three months ended March 31, 2026, the increase was primarily driven by a $39.5 million increase year over year from MyPay driven by our new variable pricing plan adopted in the first quarter of 2026 and increased MyPay transaction volume from continued adoption. Additionally, we recognized an increase of $15.5 million year over year in revenue for outbound instant transfer fees, which launched in the first quarter of 2025. We also recognized $14.1 million in Instant Loan revenue during the three months ended March 31, 2026, which launched at the end of the first quarter of 2025.
Current wording
Platform-related revenue for the three and six months ended June 30, 2026 increased $77.7 million, or 48%, and $149.0 million, or 49%, year over year. For the three and six months ended June 30, 2026, the increase was primarily driven by a $37.1 million and $76.7 million increase year over year from MyPay driven by our new variable pricing plan adopted in the first quarter of 2026 and increased MyPay transaction volume from continued adoption. Additionally, during the three and six months ended June 30, 2026, Instant Loan revenue increased $19.7 million and $32.7 million and outbound instant transfer fees increased $14.9 million and $30.5 million as members continued to adopt these products.
Previous wording
Cost of revenue for the three months ended March 31, 2026 increased $6.7 million, or 11%, year over year driven by a $12.2 million increase in card and ATM network expenses, net of incentives, partially offset by a a $5.5 million decrease in transaction processing and bank partner costs. The $12.2 million increase in card and ATM network expenses was driven by the increase in Active Members and from Active Members engaging more frequently with our products, including instant transfers.
Current wording
Cost of revenue for the three months ended June 30, 2026 increased $7.8 million, or 12%, driven by a $13.4 million increase in card and ATM network expenses, net of incentives, partially offset by a $5.6 million decrease in transaction processing and bank partner costs. Cost of revenue for the six months ended June 30, 2026 increased $14.4 million, or 11%, driven by a $25.6 million increase in card and ATM network expenses, net of incentives, partially offset by a $11.2 million decrease in transaction processing and bank partner costs.
Previous wording
The $5.5 million decrease in transaction processing and bank partner costs was driven by cost savings following our migration from our third-party transaction processor to ChimeCore, which occurred in the fourth quarter of 2025, partially offset by growth in Active Members and related growth in Purchase Volume.
Current wording
The increase in card and ATM network expenses in the three and six months ended June 30, 2026 compared to the prior year was driven both by the increase in Active Members and from Active Members engaging more frequently with our products, including instant transfers. The decrease in transaction processing and bank partner costs in the three and six months ended June 30, 2026 compared to the prior year was driven by cost savings following our migration from a third-party transaction processor to ChimeCore, which occurred in the fourth quarter of 2025, partially offset by growth in Active Members, the related growth in Purchase Volume, and the shift in payment mix toward credit.
Previous wording
Operating expenses increased by $85.0 million, or 19%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 driven by the following changes:
Current wording
Operating expenses decreased by $818.1 million, or 59%, and $733.2 million, or 40%, for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 driven by the following changes:
Previous wording
Transaction and risk losses for the three months ended March 31, 2026 decreased by $20.2 million, or 19%, year over year, driven by a decrease of $18.4 million in losses related to MyPay due to improvements in loss rates. Losses related to SpotMe and other member negative balances also decreased by $12.4 million, primarily due to isolated fraud incidents in the prior-year period. These decreases were partially offset by an increase of $7.2 million in transaction and risk losses related to our Instant Loans product, which fully launched in March 2025.
Current wording
Transaction and risk losses for the six months ended June 30, 2026 decreased by $15.2 million, or 7%, year over year, driven by a decrease of $31.4 million in losses related to MyPay, primarily attributable to improved loss rates on originations made during the current period. Losses related to SpotMe and other member negative balances also decreased by $12.6 million, primarily due to isolated fraud incidents in the first quarter of 2025. These decreases were partially offset by an increase of $16.2 million in transaction and risk losses related to our Instant Loans product primarily due to higher volumes, and an increase of $12.7 million in transaction dispute losses primarily attributable to the increase in Purchase Volume and increase in the rate of disputed transactions.
Previous wording
Sales and marketing for the three months ended March 31, 2026 increased by $32.9 million, or 25%, year over year driven by an increase of $25.7 million in marketing and promotional activities in the three months ended March 31, 2026 compared to the prior year. Additionally, there was an increase in stock-based compensation and related payroll tax of $4.1 million as the liquidity-based vesting condition for certain stock-based awards was met upon our IPO.
Current wording
Sales and marketing expenses for the three months ended June 30, 2026 decreased by $20.8 million, or 11%, year over year driven by a decrease in stock-based compensation and related payroll tax of $38.9 million in the three months ended June 30, 2026 compared to the prior year as higher stock-based compensation expenses were recognized as a result of our IPO in the second quarter of 2025. This was partially offset by an increase of $16.3 million in marketing and promotional activities in the three months ended June 30, 2026 compared to the prior year.
Previous wording
Other income, net for the three months ended March 31, 2026 increased by $2.4 million, or 45%, year over year, primarily attributable to an increase of $1.8 million in interest income due to higher balances on interest-bearing assets following our IPO.
Current wording
Other income, net for the three and six months ended June 30, 2026 increased by $0.5 million, or 8%, and $2.9 million, or 25%, year over year, primarily attributable to an increase in interest income due to higher balances on interest-bearing assets.
Previous wording
As of March 31, 2026, our principal sources of liquidity were our cash and cash equivalents of $607.7 million, investments in marketable securities of $403.6 million, and $443.6 million in borrowing capacity under our revolving credit facility.
Current wording
As of June 30, 2026, our principal sources of liquidity were our cash and cash equivalents of $536.0 million and investments in marketable securities of $527.4 million. Additionally, we have $451.8 million in borrowing capacity under our revolving credit facility and $150.0 million of remaining committed capacity under our warehouse facility.
Previous wording
Our bank partners also retain accounts and receivables related to Chime-branded credit and liquidity products on their balance sheet, and pursuant to the Bancorp MSA, Bancorp committed to retain certain receivables on its balance sheet in an amount, not to exceed, on an aggregate basis, 200% of its tier 1 capital, with such amount in connection with liquidity products excluding Credit Builder not to exceed 125% of its tier 1 capital (each as measured on the last day of each calendar quarter). Bancorp’s tier 1 capital includes common shareholders’ equity, certain qualifying perpetual preferred stock and minority interests in equity accounts of consolidated subsidiaries, less intangibles. Based on Bancorp’s tier 1 capital as of March 31, 2026, the amount of this commitment would have been approximately $1.7 billion (with such amount in connection with liquidity products excluding Credit Builder not to exceed approximately $1.1 billion. Bancorp has the right to limit originations under this commitment in the event the forecasted performance of the liquidity products offered under this commitment is expected to result in significant unrecoverable losses. Specifically, Bancorp has the right to limit originations under this commitment during periods when a specified threshold is projected to be exceeded relating to the forecasted ratio of (i) projected losses less projected revenue from the liquidity products offered under this commitment to (ii) the sum of our cash, our marketable securities, and certain assets held at Bancorp.
Current wording
Our bank partners also retain accounts and receivables related to Chime-branded credit and liquidity products on their balance sheet, and pursuant to the Bancorp MSA, Bancorp committed to retain certain receivables on its balance sheet in an amount, not to exceed, on an aggregate basis, 200% of its tier 1 capital, with such amount in connection with liquidity products excluding Credit Builder not to exceed 125% of its tier 1 capital (each as measured on the last day of each calendar quarter). Bancorp’s tier 1 capital includes common shareholders’ equity, certain qualifying perpetual preferred stock and minority interests in equity accounts of consolidated subsidiaries, less intangibles. Based on Bancorp’s tier 1 capital as of June 30, 2026, the amount of this commitment would have been approximately $1.8 billion (with such amount in connection with liquidity products excluding Credit Builder not to exceed approximately $1.1 billion). Bancorp has the right to limit originations under this commitment in the event the forecasted performance of the liquidity products offered under this commitment is expected to result in significant unrecoverable losses. Specifically, Bancorp has the right to limit originations under this commitment during periods when a specified threshold is projected to be exceeded relating to the forecasted ratio of (i) projected losses less projected revenue from the liquidity products offered under this commitment to (ii) the sum of our cash, our marketable securities, and certain assets held at Bancorp.
Previous wording
In May 2026 we announced that our board of directors approved an additional share repurchase authorization pursuant to which we may repurchase up to $200.0 million of our outstanding Class A common stock. Repurchases may be made from time to time through open market purchases, privately negotiated transactions or other means, subject to market conditions, applicable legal requirements, and other relevant factors. Open market purchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The timing and actual number of shares repurchased may depend on a variety of factors, including legal requirements, price, and economic and market conditions. The program does not obligate us to repurchase any particular amount of Class A common stock and may be suspended or discontinued at any time at our discretion without prior notice, subject to all applicable securities laws.
Current wording
In November 2025, our board of directors approved a share repurchase program with authorization to purchase up to $200.0 million of our Class A common stock at management’s discretion, and in May 2026 we announced that our board of directors approved an additional $200.0 million share repurchase authorization. Repurchases may be made from time to time through open market purchases, privately negotiated transactions or other means, subject to market conditions, applicable legal requirements, and other relevant factors. Open market purchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The timing and actual number of shares repurchased may depend on a variety of factors, including legal requirements, price, and economic and market conditions. The program does not obligate us to repurchase any particular amount of Class A common stock and may be suspended or discontinued at any time at our discretion without prior notice, subject to all applicable securities laws. During the three and six months ended June 30, 2026, we repurchased approximately 7.3 million and 11.4 million shares of our common stock for an aggregate purchase price of $136.3 million and $222.1 million.
Previous wording
We believe that our current available cash and cash equivalents and investments in marketable securities will be sufficient to meet our working capital needs for at least the next twelve months. Our future capital requirements and the adequacy of available funds will depend on many factors, including, but not limited to our growth, our ability to attract and retain Active Members, the timing and extent of spending to support our efforts to develop our platform, the growth of liquidity products, including MyPay, Instant Loans, and SpotMe, the expansion of sales and marketing activities, potential merger and acquisition activity, and other strategic initiatives.
Current wording
We believe that our current available cash and cash equivalents and investments in marketable securities, together with amounts available for borrowing under the credit facility and Warehouse Facility, will be sufficient to meet our working capital needs for at least the next twelve months. Our future capital requirements and the adequacy of available funds will depend on many factors, including, but not limited to our growth, our ability to attract and retain Active Members, the timing and extent of spending to support our efforts to develop our platform, the growth of liquidity products, including MyPay, Instant Loans, and SpotMe, the expansion of sales and marketing activities, potential merger and acquisition activity, and other strategic initiatives.
Previous wording
Cash provided by (used in) operating activities was $87.5 million for the three months ended March 31, 2026, compared to $(25.8) million in the three months ended March 31, 2025. The increase of $113.2 million consists of an increase of $77.5 million in changes in working capital and a $40.5 million increase in net income, partially offset by a decrease of $4.8 million in non-cash adjustments.
Current wording
Cash provided by operating activities was $295.0 million for the six months ended June 30, 2026, compared to $2.7 million in the six months ended June 30, 2025. The increase of $292.2 million consists of a $991.7 million increase in net income and an increase of $189.6 million in changes in working capital, partially offset by a decrease of $889.1 million in non-cash adjustments.
Previous wording
The increase of $77.5 million in changes in working capital for the three months ended March 31, 2026 compared to the prior year was primarily driven by an increase of settlements related to our product obligation primarily due to the growth of MyPay revenue, the timing of upfront payments received related to our network incentive obligation, the timing of vendor payments, and the receipt of a tenant improvement allowance for a new office lease in the first quarter of 2026.
Current wording
The increase of $189.6 million in changes in working capital for the six months ended June 30, 2026 compared to the prior year was primarily driven by a decrease in our product collateral requirements primarily due to enhancements in our loss recovery processes, the timing of upfront payments received related to our network incentive obligation, and the timing of vendor payments. Additionally, settlements related to our product obligation were cash inflows of $39.2 million in the six months ended June 30, 2026, compared to cash outflows of $19.0 million in the six months ended June 30, 2025, primarily due to the growth of MyPay and Instant Loans revenue and the improved unit economics of MyPay compared to the prior year. This favorability was partially offset by settlements related to SpotMe and other negative balances, which were elevated in the six months ended June 30, 2026 due to the settlement of prior year fraud events.
Previous wording
The decrease of $4.8 million in non-cash adjustments for the three months ended March 31, 2026 compared to the prior year was primarily driven by a $55.3 million decrease in change in fair value of program obligation attributable to the growth of MyPay and Instant Loan revenue, improved MyPay loss rates, and decrease in SpotMe and other negative balances transaction and risk losses. This was partially offset by a $52.0 million increase in stock-based compensation expense as the liquidity-based vesting condition for certain equity awards was met in connection with our IPO in the second quarter of 2025.
Current wording
The decrease of $889.1 million in non-cash adjustments for the six months ended June 30, 2026 compared to the prior year was primarily driven by a $788.8 million decrease in stock-based compensation as the liquidity-based vesting condition for certain equity awards was met in connection with our IPO in 2025. Additionally, the change in fair value of the product obligation was $(52.3) million in the six months ended June 30, 2026, compared to $43.6 million in the prior year. This change is attributable to the growth of MyPay and Instant Loans revenue, decrease in
Previous wording
Cash provided by investing activities was $127.3 million for the three months ended March 31, 2026, primarily due to $1,248.9 million in repayments of loans held for investment and $182.3 million in proceeds from maturities of marketable securities, offset by $1,296.4 million in purchases of loans held for investment.
Current wording
Cash used in investing activities was $14.6 million for the six months ended June 30, 2026, primarily due to $2,706.4 million in purchases of loans held for investment offset by $2,652.5 million in repayments of loans held for investment.
Previous wording
Cash provided by investing activities was $6.7 million for the three months ended March 31, 2025, primarily due to $1,117.5 million in repayments of loans held for investment and $72.2 million in proceeds from maturities of marketable securities, offset by $1,139.7 million in purchases of loans held for investment and $3.2 million in capitalization of internal-use software.
Current wording
Cash provided by investing activities was $79.1 million for the six months ended June 30, 2025, primarily due to $2,311.6 million in repayments of loans held for investment, $256.5 million from sales of marketable securities and $123.2 million in proceeds from maturities of marketable securities, offset by $2,368.2 million in purchases of loans held for investment and $234.1 million in purchases of marketable securities.
Previous wording
For the three months ended March 31, 2026, cash used in financing activities was $73.4 million, primarily due to $85.7 million from repurchases of common stock, partially offset by $13.9 million in proceeds from the exercise of stock options.
Current wording
For the six months ended June 30, 2026, cash used in financing activities was $160.0 million, primarily due to $222.1 million from repurchases of common stock, partially offset by $50.0 million in proceeds from borrowings under the Warehouse Facility and $16.0 million in proceeds from the exercise of stock options.
Previous wording
For further information see Note 12, “Common Stock and Stockholders’ Equity" and Note 14, “Net Income Per Share” included in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements”.
Current wording
For further information see Note 13 -Common Stock and Stockholders’ Equity and Note 15 -Net Income (Loss) Per Share within the notes to our condensed consolidated financial statements included in this Quarterly Report.
Previous wording
As of March 31, 2026, we had future minimum operating lease payments under non-cancelable leases of $168.8 million related to leases we have recognized on our condensed consolidated balance sheet which are due over a weighted average period of 8.1 years. Of the non-cancelable lease payments, $11.9 million is payable in the remainder of 2026. For additional discussion on our operating leases, see Note 17– Commitments and Contingencies within the notes to our condensed consolidated financial statements.
Current wording
As of June 30, 2026, we had future minimum operating lease payments under non-cancelable leases of $165.1 million related to leases we have recognized on our condensed consolidated balance sheet which are due over a weighted average period of 8 years. Of the non-cancelable lease payments, $8.2 million is payable in the remainder of 2026. For additional discussion on our operating leases, see Note 18– Commitments and Contingencies within the notes to our condensed consolidated financial statements included in this Quarterly Report.
Previous wording
Our non-cancellable purchase commitments are primarily related to our cloud infrastructure services and various marketing partnerships. As of March 31, 2026, we had non-cancellable purchase obligations of $252.1 million, of which $98.1 million is due in the remainder of 2026.
Current wording
Our non-cancellable purchase commitments are primarily related to our cloud infrastructure services and various marketing partnerships. As of June 30, 2026, we had non-cancellable purchase obligations of $255.1 million, of which $83.0 million is due in the remainder of 2026.
Previous wording
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected.
Current wording
Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements in accordance with GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the period presented. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows could be affected.
Previous wording
There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” in our 2025 Form 10-K.
Current wording
There have been no material changes to our critical accounting policies and estimates as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” in our 2025 Form 10-K.
Previous wording
For a discussion of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted, see Note 2– Basis of Presentation and Summary of Significant Accounting Policies within the notes to our unaudited condensed consolidated financial statements.
Current wording
For a discussion of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted, see Note 2– Basis of Presentation and Summary of Significant Accounting Policies within the notes to our unaudited condensed consolidated financial statements included in this Quarterly Report.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, this increase primarily reflected a $121.3 million, or 58%, increase in revenue from interchange-based fees from credit card transactions compared to the same period in 2025. The increase in payments revenue was driven by a $9.8 billion, or 15%, increase in Purchase Volume for the six months ended June 30, 2026 compared to the same period in 2025. For the six months ended June 30, 2026 and 2025, interchange-based fees from debit card transactions represented 40% and 51% of revenue, with debit card transactions representing 75% and 84% of Purchase Volume. For the six months ended June 30, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 20% of revenue, with credit card transactions representing 25% and 16% of Purchase Volume.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In November 2025, our board of directors approved a share repurchase program with authorization to purchase up to $200.0 million of our Class A common stock at management’s discretion. During the three months ended March 31, 2026, we repurchased 4.1 million shares of our common stock for an aggregate purchase price of $85.7 million.