Chime posts first quarterly profit as consumer spending stays resilient

Chime turned its first quarterly profit into a proof point for the digital-banking model, reporting net income of $53 million on revenue of $647 million as consumer spending continued to hold up. Revenue rose 25% from a year earlier, and purchase volume, including outbound instant transfers, increased 12% to $39 billion, showing that the San Francisco company is still expanding through everyday financial activity rather than one-time product sales.

The result gives Chime a stronger case that it can convert scale into earnings, but it also arrives in a market where resilient household spending is still doing some of the work. Chief financial officer Matthew Newcomb said the company was seeing broad resilience and consistency in consumer trends, with growth coming from both discretionary and non-discretionary spending. That matters for Chime, which has built its brand around low fees, user-friendly digital banking tools and customers who rely more on debit than credit. If spending remains solid, the company’s model looks increasingly durable. If household budgets tighten, the question is how much of that momentum fades.

Chime ended the quarter with 10.2 million active members, up nearly 700,000 from the prior period and 19% higher than a year earlier. In its prepared remarks, the company said it again ranked No. 1 in U.S. checking account openings in J.D. Power’s first-quarter survey, 50% ahead of the next competitor, while members earning $75,000 and above remained its fastest-growing segment. That shift toward higher-income users is important because it suggests Chime is broadening beyond its original base at a time when it is also introducing new products, including Chime Prime, its premium membership tier launched on April 2.

Chime said the quarter included a seasonal tailwind from tax refund-related activity, another reminder that the current numbers may not be entirely repeatable. Still, management is acting as if the business has crossed a threshold. The company raised full-year guidance and authorized an additional $200 million share repurchase, moves that signal confidence in sustained cash generation. Chime had already told investors in February that full-year 2025 revenue rose 31% and that it expected to achieve GAAP profitability in 2026, after MyPay reached a $400 million revenue run rate.

The company’s progress has come fast since its initial public offering. Chime priced 32 million shares at $27 each on June 11, 2025, raising about $864 million and valuing the company at roughly $11.6 billion on a fully diluted basis. Shares opened at $43 in their Nasdaq debut the next day and jumped 59% on the first trading day, but the stock has still traded below the IPO price. With 9.5 million active members at the end of 2025 and 10.2 million by the end of the first quarter, Chime is growing quickly. The harder test is whether that growth can keep producing profit if consumers finally pull back.