Oct 30, 2026 earnings call — Chime transition and fintech growth focus
Company provided 2027 core EPS guidance of $7 to $7.20 a share, citing Chime transition and fintech initiatives.
Revenue $0.1B (est $0.2B) · EPS $1.47 (est $1.47)
Key quotes
"We will be redeploying our balance sheet and employing cost management and other strategies that we believe will help mitigate the profitability impact."
"First, in our Banking-as-a-Service ecosystem, we continue to ramp up Cash App, and we expect volumes will start contributing more to our financials as we approach the end of the year with a meaningful impact in the beginning of the first quarter of '27."
"By year-end, we will have purchased approximately $161 million in tax credits at a discount of 8.5%, generating a total 2026 tax benefit of $13.7 million"
Analyst Q&A 3
Why 2027 profit forecast changed
Q (Joseph Yanchunis · Raymond James): He asked how much of the 2027 EPS guide cut comes from Chime, partner timing, and the interest-rate environment, and how tax, buybacks, and cost savings offset it. He also asked how much of sponsored lending in the new guide is from signed deals versus still-negotiating opportunities, and about embedded finance contribution.
A: Management said the guide is a single baseline built from many scenarios, looking at the pipeline, rates, and especially the Chime contract provisions. They said the main items lowering the target were growth and phasing expectations for Chime, an updated pipeline view for embedded finance and other lending, and a small asset-liability impact on net interest income, offset by share repurchases and a tax benefit. They also said the sponsored lending pipeline is extremely strong, expect at least one more program, and that embedded finance will be little in '27 but larger in '28.
"So it's that combination of looking at the environment and everything and all the different factors and trying to come up with that reasonable guidance for investors." — Damian Kozlowski (CEO)
Chime exit timing and expense offsets
Q (Timothy Switzer · KBW): He asked whether the guidance assumes a blended range for Chime exit timing or a specific end point, and whether the exit is immediate or gradual. He also asked what expense savings will come from Chime leaving and whether savings will be reinvested or flow to the bottom line, and if the Apex 2030 target changed.
A: They said guidance is based on current contractual obligations, which include a 1-year termination notice and up to a 6-month transition, with the contract ending July of '28; planning would start now and the economics would persist into early '28. On costs, they said most savings would be reallocated to new products, though if Chime balances are not redeployed there would be significant savings from reduced volume. Long term they still expect to reach $10 per share and said the fundamentals of Apex 2030 remain intact, but the EPS timeline is delayed about a year.
"Once again, the contract says if they were to -- it's a 1-year termination notice." — Damian Kozlowski (CEO)
2027 revenue mix and partner risk
Q (Manuel Navas · Piper Sandler): He asked how revenue mix will change in 2027—will fees rise and net interest income fall—and whether new business changes margins. He also asked about end-of-period versus average fintech loan balances, partner risk of seeking bank charters, and concentration after Chime.
A: They said most EPS growth from '26 to '27 will come from fintech fees, driven by Cash App ramp, existing partners, and the pipeline, partly offset by slightly lower net interest income due to the shift toward fintech and liability sensitivity. They explained end-of-period fintech balances are lower because many payments concentrate at month end and then cycle back early the next month, so average balances better show portfolio growth. They said Chime was the primary charter risk, the company has over 40 partners, and the exit of Chime should reduce concentration in the top 10 over time.
"Yes, as I mentioned before, the significant portion of the growth in EPS from '26 to '27 will be in the fintech business." — Dominic Canuso (CFO)