Chime Financial, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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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.
Sep 30, 2026 · Filed Nov 5, 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 2026-06-30; filed 2026-08-06.
0001795586-26-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001795586-26-000056
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 143 previous paragraphs and 156 current paragraphs.
105 unchanged; 33 reworded; 18 added; 4 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 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 (18)
Current report
Recent Developments
Current report
On September 8, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire Central Service Corporation (“CSC”), the parent company of Stride Bank, National Association (“Stride”), for $590.0 million in cash, subject to customary purchase price adjustments (the “Stride Acquisition”). Stride has been one of our partner banks for more than seven years. Upon closing, we intend to rename Stride as Chime Bank, N.A., which we will operate as our wholly-owned subsidiary. We expect to fund the purchase price with cash on hand.
Current report
The Stride Acquisition is expected to close in the first half of 2027, subject to approvals by the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System and the satisfaction of other customary closing conditions. There can be no assurance that the Stride Acquisition will be completed on the anticipated timeline or at all.
Current report
Upon completion of the Stride Acquisition, we will become a bank holding company. We expect that owning our bank will reduce our reliance on third-party partner banks, lower partner bank fees and our cost of funds, and allow us to integrate our technology platform more closely with our banking operations. We will also become subject to supervision by the Federal Reserve and to additional regulatory requirements, including capital, liquidity and compliance requirements, which will increase our costs. For additional information, see Note 10– Business Combinations and the section titled “Risks Related to the Pending Stride Acquisition” in Part II, Item 1A, “Risk Factors.”
Current report
Restructuring
Current report
On July 31, 2026, we committed to a reorganization (the “Restructuring”) to better align our personnel with our strategic priorities, improve operational efficiency, and position us for continued growth. The Restructuring involved the reduction of approximately 9% of our total workforce. See Note 18– Restructuring within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
Current report
(2)For the three and nine months ended September 30, 2026, includes cash charges for employee-related wages, benefits and severance. See Note 18– Restructuring within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
Current report
Member support and operations expenses for the three months ended September 30, 2026 increased by $21.1 million, or 25%, year over year driven by an $8.5 million increase in software costs related to member support and operations, including certain dispute and processing platform fees, driven by growth in Active Members. Additionally, there was a $4.5 million increase in member onboarding costs and a $3.8 million increase in physical card issuance costs primarily attributable to growth of Active Members and launch of Chime Prime in the second quarter of 2026.
Current report
Member support and operations expenses for the nine months ended September 30, 2026 decreased by $55.6 million, or 15%, year over year driven by a $105.2 million decrease in stock-based compensation and related payroll tax as the prior year period included higher stock-based compensation expense recognized in connection with our IPO in the second quarter of 2025. This decrease was partially offset by a $17.6 million increase in software costs related to member support and operations, including dispute and processing platform fees, driven by growth in Active Members. There was also a $17.2 million increase in member onboarding costs related to activation expenses and $7.9 million increase in physical card issuance costs primarily attributable to growth of Active Members and launch of Chime Prime in the second quarter of 2026.
Current report
Sales and marketing expenses for the three months ended September 30, 2026 increased by $14.9 million, or 10%, year over year driven by a $10.0 million increase in marketing and promotional activities and $1.7 million in Restructuring costs related to employee-related wages, benefits and severance costs recognized in the three months ended September 30, 2026.
Current report
Sales and marketing expenses for the nine months ended September 30, 2026 increased by $26.9 million, or 6%, year over year driven by a $52.0 million increase in marketing and promotional activities and $1.7 million in Restructuring costs related to employee-related wages, benefits and severance costs recognized in the nine months ended September 30, 2026. This was partially offset by a $33.7 million decrease in stock-based compensation and related payroll tax as the prior year period included higher stock-based compensation expense recognized in connection with our IPO in the second quarter of 2025.
Current report
Technology and development expenses for the nine months ended September 30, 2026 decreased by $482.3 million, or 59%, year over year, primarily driven by a $501.4 million decrease in stock-based compensation and related payroll tax as the prior year period included higher stock-based compensation expense recognized in connection with our IPO in the second quarter of 2025. The decrease also reflects the reversal of previously recognized stock-based compensation expense for unvested awards forfeited in connection with the Restructuring in the third quarter of 2026, as well as other award forfeitures. This decrease was partially offset by $8.6 million in Restructuring costs related to employee-related wages, benefits and severance costs recognized in the nine months ended September 30, 2026.
Current report
General and administrative expenses for the three months ended September 30, 2026 increased by $22.1 million, or 29%, year over year primarily driven by $4.7 million in Restructuring costs related to employee-related wages, benefits and severance costs recognized in the three months ended September 30, 2026, the non-recurrence of a $4.5 million one-time non-income tax benefit recognized in the third quarter of 2025, and a $4.5 million increase in professional services fees primarily attributable to supporting initiatives such as the Stride Acquisition. There was also a $3.3 million increase in stock-based compensation expense and related payroll tax driven by higher expense for certain executive awards, partially offset by the reversal of previously recognized expense for unvested awards forfeited in connection with the Restructuring in the third quarter of 2026, as well as other award forfeitures.
Current report
General and administrative expenses for the nine months ended September 30, 2026 decreased by $154.1 million, or 38%, year over year, primarily driven by a $170.1 million decrease in stock-based compensation and related payroll tax as the prior year period included higher stock-based compensation expense recognized in connection with our IPO in the second quarter of 2025.
Current report
Other income, net for the three months ended September 30, 2026 decreased by $0.6 million, or 6%, year over year, primarily attributable to a decrease in interest income due to reduced yields on corporate cash and cash equivalents and marketable securities.
Current report
On September 8, 2026, we entered into the Merger Agreement to acquire CSC, the parent company of Stride, for approximately $590 million in cash, subject to customary purchase price adjustments. We expect to fund the purchase price with cash on hand at closing, which is expected to occur in the first half of 2027, subject to regulatory approvals and other customary closing conditions.
Current report
Deferred Tax Asset Valuation Allowance
Current report
We continue to maintain a full valuation allowance against our U.S. federal and state deferred tax assets. If we continue to generate pretax income, sufficient positive evidence may become available in a future period for us to conclude that all or a significant portion of the valuation allowance is no longer required. The timing and amount of any release remain uncertain and will depend on several factors, including the level and sustainability of our profitability. Any release would result in the recognition of deferred tax assets and could reduce income tax expense in the period recorded. Any such benefit would be non-cash.
Removed paragraphs (4)
Previous 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.
Previous report
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 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.
Previous 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.
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 (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.
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 nine months ended September 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
We created Chime to help everyday people make progress in their financial lives. For too long, millions of Americans, including the nearly 75% of the adult population that earn up to $100,000 annually, have struggled with bank relationships that are not always aligned with their best interests. So we set out to create a new approach. We are an asset-light technology company that has pioneered a business model that succeeds when we earn and maintain our members’ trust. Through our direct relationships with FDIC-insured bank partners, we deliver products that address the most critical financial needs of everyday people across spending, saving, accessing liquidity, and building credit, all while avoiding punitive fees.
Current wording
We created Chime to help Americans make progress in their financial lives. For too long, millions of people in our country have struggled with bank relationships that are not always aligned with their best interests. So we set out to create a new approach. We are an asset-light technology company that has pioneered a business model that succeeds when we earn and maintain our members’ trust. Through our direct relationships with FDIC-insured bank partners, we deliver products that address Americans’ most critical financial needs across spending, saving, accessing liquidity, building credit, and investing, all while avoiding punitive fees.
Previous 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.
Current wording
Through our broad suite of products, we have built trusted relationships with 10.9 million Active Members as of September 30, 2026. The majority of our Active Members rely on Chime to serve as their primary financial relationship, which we believe is among 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. As our product suite expands, we are meeting more of our members’ financial needs and attracting higher-income consumers. Our opportunity extends across a broad range of incomes, including Americans earning up to $200,000 annually, who want greater value, convenience and control over their money.
Previous wording
We are bold in our ambition to build a generational consumer brand that empowers everyday Americans to make progress in their financial journeys.
Current wording
We are bold in our ambition to build a generational consumer brand that empowers Americans to make progress in their financial journeys.
Previous wording
Our allowance for credit losses relating to MyPay receivables we purchase, which are reflected on our balance sheet as loans held for investment, are recorded as a provision for credit losses within transaction and risk losses.
Current wording
Our allowance for credit losses relating to MyPay and other receivables we purchase, which are reflected on our balance sheet as loans held for investment, are recorded as a provision for credit losses within transaction and risk losses.
Previous wording
Comparison of the three and six months ended June 30, 2026 and 2025
Current wording
Comparison of the three and nine months ended September 30, 2026 and 2025
Previous 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.
Current wording
Total revenue for the three and nine months ended September 30, 2026 increased by $174.5 million, or 32%, and $444.7 million, or 28%, 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 $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.
Current wording
Payments revenue increased by $81.3 million, or 22%, and $202.5 million, or 18%, for the three and nine months ended September 30, 2026 compared to the same periods in 2025.
Previous wording
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.
Current wording
For the three months ended September 30, 2026, this increase primarily reflected an $83.3 million, or 81%, 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 $6.2 billion, or 19%, increase in Purchase Volume for the three months ended September 30, 2026 compared to the same period in 2025. For the three months ended September 30, 2026 and 2025, interchange-based fees from debit card transactions represented 36% and 48% of revenue, with debit card transactions representing 71% and 84% of Purchase Volume. For the three months ended September 30, 2026 and 2025, interchange-based fees from credit card transactions represented 26% and 19% of revenue, with credit card transactions representing 29% and 16% of Purchase Volume.
Previous 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.
Current wording
For the nine months ended September 30, 2026, this increase primarily reflected a $204.6 million, or 65%, 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 $15.9 billion, or 16%, increase in Purchase Volume for the nine months ended September 30, 2026 compared to the same period in 2025. For the nine months ended September 30, 2026 and 2025, interchange-based fees from debit card transactions represented 39% and 50% of revenue, with debit card transactions representing 74% and 84% of Purchase Volume. For the nine months ended September 30, 2026 and 2025, interchange-based fees from credit card transactions represented 25% and 20% of revenue, with credit card transactions representing 26% and 16% of Purchase Volume.
Previous 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.
Current wording
The increase in Purchase Volume was driven, in part, by a 1.8 million, or 20%, increase in Active Members as of September 30, 2026 compared to September 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 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.
Current wording
Platform-related revenue for the three and nine months ended September 30, 2026 increased $93.2 million, or 52%, and $242.2 million, or 50%, year over year. For the three and nine months ended September 30, 2026, the increase was primarily driven by a $48.0 million and $124.7 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 nine months ended September 30, 2026, Instant Loan revenue increased $20.9 million and $53.6 million and outbound instant transfer fees increased $15.6 million and $46.1 million as members continued to adopt these products.
Previous 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.
Current wording
Cost of revenue for the three months ended September 30, 2026 increased $2.5 million, or 4%, driven by an $8.0 million increase in card and ATM network expenses, net of incentives, partially offset by a $5.4 million decrease in transaction processing and bank partner costs. Cost of revenue for the nine months ended September 30, 2026 increased $17.0 million, or 9%, driven by a $33.5 million increase in card and ATM network expenses, net of incentives, partially offset by a $16.6 million decrease in transaction processing and bank partner costs.
Previous 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.
Current wording
The increase in card and ATM network expenses in the three and nine months ended September 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 nine months ended September 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 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:
Current wording
Operating expenses increased by $72.9 million, or 14%, for the three months ended September 30, 2026 and decreased $660.2 million, or 28%, for the nine months ended September 30, 2026 compared to the same periods in 2025 driven by the following changes:
Previous wording
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 wording
Transaction and risk losses for the three months ended September 30, 2026 increased by $18.6 million, or 19%, year over year, primarily driven by a $16.1 million increase in losses related to our Instant Loans product primarily due to higher volumes and an $8.8 million increase in losses related to MyPay as a result of higher MyPay volume and partially offset by the improved loss rates on originations made during the current quarter. These increases were partially offset by a $7.4 million decrease in transaction dispute losses due to improved fraud mitigation.
Previous 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.
Current wording
Transaction and risk losses for the nine months ended September 30, 2026 increased by $3.4 million, or 1%, year over year, driven by a $32.2 million increase in losses related to our Instant Loans product primarily due to higher volumes and a $5.3 million increase in transaction dispute losses primarily attributable to the increase in Purchase Volume and increase in the rate of disputed transactions in the second quarter of 2026. These increases were partially offset by a $22.6 million decrease in losses related to MyPay primarily attributable to improved loss rates on originations made during the current period, particularly in the first half of the year as we introduced the expansion of eligible repayment sources in the third quarter of 2025, and a $12.6 million decrease in losses related to SpotMe and other member negative balances primarily due to the nonrecurrence of losses from isolated fraud incidents in the first quarter of 2025.
Previous wording
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 wording
Technology and development expenses for the three months ended September 30, 2026 decreased by $4.5 million, or 4%, year over year primarily driven by a $14.1 million decrease in stock-based compensation and related payroll tax due to the reversal of previously recognized stock-based compensation expense for unvested awards forfeited in connection with the Restructuring in the third quarter of 2026, as well as other award forfeitures. This decrease was partially offset by $8.6 million in Restructuring costs related to employee-related wages, benefits and severance costs recognized in the three months ended September 30, 2026.
Previous 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.
Current wording
Other income, net for the nine months ended September 30, 2026 increased by $2.3 million, or 11%, year over year, primarily attributable to an increase in interest income due to higher balances on interest-bearing assets.
Previous 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.
Current wording
As of September 30, 2026, our principal sources of liquidity were our cash and cash equivalents of $636.7 million and investments in marketable securities of $546.3 million. Additionally, we have $451.8 million in borrowing capacity under our revolving credit facility and $100.0 million of remaining committed capacity under our warehouse facility.
Previous 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.
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 months ended September 30, 2026, we did not repurchase any shares of our common stock. During the nine months ended September 30, 2026, we repurchased approximately 11.4 million shares of our common stock for an aggregate purchase price of $222.1 million.
Previous wording
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 wording
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 September 30, 2026, $100.0 million was outstanding under the Warehouse Facility with $100.0 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 September 30, 2026. See Note 12– Indebtedness within the notes to our condensed consolidated financial statements included in this Quarterly Report for additional information.
Previous 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.
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, including the Stride Acquisition. 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, regulatory capital requirements, and other strategic initiatives.
Previous 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.
Current wording
Cash provided by operating activities was $421.0 million for the nine months ended September 30, 2026, compared to $20.2 million in the nine months ended September 30, 2025. The increase of $400.8 million consists of a $1,090.2 million increase in net income and an increase of $238.7 million in changes in working capital, partially offset by a decrease of $928.1 million in non-cash adjustments.
Previous 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.
Current wording
The increase of $238.7 million in changes in working capital for the nine months ended September 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 $81.8 million in the nine months ended September 30, 2026, compared to cash outflows of $21.7 million in the nine months ended September 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 nine months ended September 30, 2026 due to the settlement of prior year fraud events.
Previous 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
Current wording
The decrease of $928.1 million in non-cash adjustments for the nine months ended September 30, 2026 compared to the prior year was primarily driven by a $799.3 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 $(81.5) million in the nine months ended September 30, 2026, compared to $41.6 million in the prior year. This change is attributable to the growth of MyPay and Instant Loans revenue 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.
Previous 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.
Current wording
Cash used in investing activities was $56.2 million for the nine months ended September 30, 2026 primarily due to $4,359.0 million in purchases of loans held for investment and $366.1 million in purchases of marketable securities, offset by $4,289.0 million in repayments of loans held for investment and $402.3 million in proceeds from maturities of marketable securities.
Previous 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.
Current wording
Cash used in investing activities was $344.5 million for the nine months ended September 30, 2025, primarily due to $3,616.9 million in purchases of loans held for investment and $665.3 million in purchases of marketable securities, offset by $3,547.7 million in repayments of loans held for investment, $256.5 million from sales of marketable securities and $147.2 million in proceeds from maturities of marketable securities.
Previous 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.
Current wording
For the nine months ended September 30, 2026, cash used in financing activities was $90.0 million, primarily due to $222.1 million from repurchases of common stock, partially offset by $100.0 million in proceeds from borrowings under the Warehouse Facility and $30.4 million in proceeds from the exercise of stock options.
Previous wording
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.
Current wording
For the nine months ended September 30, 2025, cash provided by financing activities was $433.0 million, primarily due to $771.2 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 $348.1 million.
Previous 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.
Current wording
For further information see Note 15– Stock-based Compensationand Note 16– Net Income (Loss) Per Share within the notes to our condensed consolidated financial statements included in this Quarterly Report.
Previous 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.
Current wording
As of September 30, 2026, we had future minimum operating lease payments under non-cancelable leases of $161.5 million related to leases we have recognized on our condensed consolidated balance sheet which are due over a weighted average period of 7.8 years. Of the non-cancelable lease payments, $4.7 million is payable in the remainder of 2026. For additional discussion on our operating leases, see Note 20– 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 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.
Current wording
Our non-cancellable purchase commitments are primarily related to our cloud infrastructure services and various marketing partnerships. As of September 30, 2026, we had non-cancellable purchase obligations of $224.6 million, of which $37.7 million is due in the remainder of 2026.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.