Chime’s stock dropped 8.6% following earnings as investors reacted negatively to a cautious outlook and uncertainty around the new premium membership tier’s impact despite ongoing active member growth and improved profitability.

• Added nearly 700,000 active members in Q1, reaching a record 10.2 million active members.
• Revenue grew 25% year-over-year, surpassing the high end of guidance, with over 13 points of adjusted EBITDA margin expansion.
• Achieved first quarter of positive GAAP EPS, expecting full-year GAAP profitability.
• Early adoption of Chime Prime shows promise but remains early with uncertainty about its contribution to revenue and retention.
• Lending portfolio shows improving credit loss rates and low risk due to underwriting tied to recurring direct deposits.