ISN ® Celebrates RAVS 360™ Assessments Milestone
'ISN's completion of more than 2,500 RAVS 360 assessments this year is a testament to our dedication to continue to help improve employee knowledge and safe work practices onsite.'
'We saw immediate value in the RAVS 360 assessment and appreciated the help ISN provided in reviewing our HSE program. We look forward to seeing how the assessment helps improve the safety culture of our company moving forward,' said Anna Loving, Business Operations Manager at Cypress Engine Accessories.
Building on the foundation of more than 20,000 RAVS Plus assessments, RAVS 360 elevates contractor HSE assessments by engaging front-line workers to demonstrate knowledge over HSE programs and provide feedback on company safety culture. RAVS 360 supports a more robust due-diligence process, including improved worker participation and the ability to address employee-level knowledge gaps through ISNetworld's Learning Management System (LMS) of industry-leading trainings. Hiring Clients can also view results of the assessment and track contractor progress on open items within ISNetworld.
By expanding worker-level evaluations to include both policy knowledge and company culture perception, RAVS 360 facilitates an important conversation using a human centered approach that encourages collective responsibility among all employees in an organization. Regardless of company size, participation highlights opportunities for organizations to strengthen hazard recognition and employee empowerment while raising the bar in the development and deployment of safety management systems and use of safety technology.
'In addition to the worker evaluation and management interview, RAVS 360 is intended to help reduce the likelihood of a SIF with the addition of an evaluation of employees' safety culture perceptions, AI-driven work type suggestions to support contractor selection of the best-fit work scope and related hazard documentation, and delivery of complimentary, mobile-friendly trainings to help close safety gaps,' said Marie Anderson, Chief Customer Success Officer and Head of RAVS at ISN. 'ISN's completion of more than 2,500 RAVS 360 assessments this year is a testament to our dedication to continue to help improve employee knowledge and safe work practices onsite.'
For more information on ISN's industry-leading software and services, visit isn.com.
About ISN
ISN is the global leader in contractor and supplier information management, with more than 20 years of experience connecting 850 Hiring Clients in capital-intensive industries with 85,000 active contractors and suppliers to promote safety, health, and sustainability in the workplace. ISN's brands include ISNetworld ®, a global online contractor and supplier management platform, Transparency-One ®, a responsible sourcing platform built to bring transparency to supply chain management, and Empower ®, a worker-level app built to keep workers moving forward.
ISN has 14 offices around the globe which provide award-winning support and training for its customers in more than 85 countries. ISN takes pride in leading worldwide efforts to improve the efficiency and effectiveness of contractor and supplier management systems and in serving as a world-class forum for sharing industry best practices, benchmarking performance, providing data insights among its members, and helping decision makers, including board members, ensure contractor and supplier risk is assessed and monitored. For more information, visit isn.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
3 hours ago
- Business Wire
TruBridge Announces Second Quarter 2025 Results
MOBILE, Ala.--(BUSINESS WIRE)--TruBridge, Inc. (NASDAQ: TBRG), a healthcare solutions company, today announced financial results for the second quarter and six months ended June 30, 2025. Second Quarter 2025 Highlights* All comparisons are to the quarter ended June 30, 2024, unless otherwise noted Total bookings of $25.6 million compared to $23.3 million Total revenue of $85.7 million compared to $85.6 million Recurring revenue represented 95% of total revenue Financial Health revenue of $54.3 million compared to $54.5 million Financial Health revenue represented 63% of TruBridge's total revenue GAAP net income of $2.6 million compared to a net loss of $4.4 million Non-GAAP net income of $7.9 million compared to $3.0 million Adjusted EBITDA of $13.7 million compared to $13.4 million *As of the third quarter of 2024, TruBridge is now reporting two segments in its financial statements representing the two business units. Financial Health represents the previous Revenue Cycle Management (RCM) segment, and Patient Care represents the previous Electronic Health Record (EHR) segment, including the patient engagement business. Commenting on the results, Chris Fowler, chief executive officer of TruBridge, Inc., stated, 'During the second quarter, we continued to make improvements on many fronts, advancing steadily towards achievement of our long-term objectives. Strong bookings, as well as improved profitability and cash flow, give us confidence in the value we provide to our clients, our position in the market, and the benefits of the work we did to improve the financial health of our business. 'Our north star is client delight, and we are implementing a strategic plan designed to bring our client satisfaction levels back to historical levels and beyond. While we have brought down the top end of our revenue outlook for the full year as a result of client attrition and the reality of signing larger, more complex deals, we are also raising our Adjusted EBITDA range to incorporate the efficiencies realized by our offshoring initiative, our refinement of resource management, and cost optimization. We remain confident that the steps we are taking today to refine and optimize our approach will set us up for success in the quarters and years ahead as we work to deliver exceptional experiences to the communities we serve,' added Fowler. Financial Guidance For the third quarter of 2025, TruBridge expects to generate: Total revenue of $85 million to $87 million Adjusted EBITDA of $14 million to $16 million For the full year 2025, TruBridge expects to generate: Total revenue of $345 million to $350 million; revised from $345 million to $360 million Adjusted EBITDA of $62 million to $67 million; revised from $60 million to $66 million Conference Call TruBridge will hold a conference call and live webcast to discuss second quarter 2025 results on Friday, August 8, 2025, at 7:30 a.m. Central time/8:30 a.m. Eastern time. To access this interactive teleconference, dial (877) 407-0890 and request connection to the TruBridge earnings conference call. A 30-day online replay will be available approximately one hour following the conclusion of the live webcast. To listen to the live webcast or access the replay, visit the Company's investor relations website, About TruBridge TruBridge proudly supports rural and community hospitals and providers in their efforts to stay strong, independent, and deeply rooted in the communities they serve. Backed by more than 45 years of healthcare experience and trusted by over 1,500 clients nationwide, we offer a mix of technology, services, and strategic expertise — including revenue cycle management, electronic health records (EHR) and analytics — all designed singularly for the realities of rural and community healthcare. With a steadfast commitment to keeping care local, TruBridge helps hospitals flourish as the economic heart of their communities, delivering high-quality, personal care close to home. For more information, visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as 'expects,' 'anticipates,' 'estimates,' 'believes,' 'predicts,' 'intends,' 'plans,' 'potential,' 'may,' 'continue,' 'should,' 'will' and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to the Company's future financial and operational results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: saturation of our target market and hospital consolidations; unfavorable economic or market conditions that may cause a decline in spending for information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for failure to comply with regulatory requirements; transition to a subscription based recurring revenue model and modernization of our technology; competition with companies that have greater financial, technical and marketing resources than we have; potential future acquisitions that may be expensive, time consuming, and subject to other inherent risks; our ability to attract and retain qualified personnel in a global workforce; disruption from periodic restructuring of our sales force; slower than anticipated development of the market for Financial Health services; potential inability to properly manage growth in new markets we may enter; potential failure to effectively implement a new enterprise resource planning software solution; exposure to numerous and often conflicting laws, regulations, policies, standards or other requirements through our domestic and international business activities; potential litigation against us and investigations; our use of offshore third-party resources; competitive and litigation risk related to the use of artificial intelligence; potential failure to develop new products or enhance current products that keep pace with market demands; failure of our products to provide accurate and timely information for clinical decision-making; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; failure to maintain customer satisfaction through new product releases free of undetected errors or problems; failure to convince customers to migrate to current or future releases of our products; failure to maintain our margins and service rates; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event we provide inaccurate claims data to payors; exposure to liability claims arising out of the licensing of our software and provision of services; dependence on licenses of rights, products and services from third parties; failure to protect our intellectual property rights; exposure to significant license fees or damages for intellectual property infringement; interruptions in our power supply and/or telecommunications capabilities; potential inability to secure additional financing on favorable terms to meet our future capital needs; our substantial indebtedness, and our ability to incur additional indebtedness in the future; pressures on cash flow to service our outstanding debt; restrictive terms of our credit agreement on our current and future operations; changes in and interpretations of financial accounting matters that govern the measurement of our performance; significant charges to earnings if our goodwill or intangible assets become impaired; fluctuations in quarterly financial performance due to various factors; volatility in our stock price; failure to maintain effective internal control over financial reporting; inherent limitations in our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to interest rate changes; potential material adverse effects due to macroeconomic conditions; we do not anticipate paying dividends on our common stock; actions of activist stockholders against us; and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release. TruBridge, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 * 2025 2024 * Revenues Financial Health $ 54,284 $ 54,509 $ 110,417 $ 107,948 Patient Care 31,445 31,091 62,520 61,769 Total revenues 85,729 85,600 172,937 169,717 Expenses Costs of revenue (exclusive of amortization and depreciation) Financial Health 29,308 30,269 56,499 59,866 Patient Care 11,962 13,073 24,284 25,237 Total costs of revenue (exclusive of amortization and depreciation) 41,270 43,342 80,783 85,103 Product development 8,113 8,207 16,360 18,894 Sales and marketing 8,041 7,815 13,450 14,408 General and administrative 18,076 18,878 37,540 38,274 Amortization 6,290 9,107 12,414 14,975 Depreciation 312 400 603 800 Total expenses 82,102 87,749 161,150 172,454 Operating income (loss) 3,627 (2,149 ) 11,787 (2,737 ) Other income (expense): Interest expense (3,065 ) (4,242 ) (6,447 ) (8,315 ) Other income 136 91 280 1,514 Total other expense (2,929 ) (4,151 ) (6,167 ) (6,801 ) Income (loss) before taxes 698 (6,300 ) 5,620 (9,538 ) Provision for (benefit from) income taxes (1,882 ) (1,912 ) 2,581 (3,296 ) Net income (loss) $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Net income (loss) per common share—basic $ 0.17 $ (0.29 ) $ 0.20 $ 0.42 Net income (loss) per common share—diluted $ 0.17 $ (0.29 ) $ 0.20 $ 0.42 Weighted average shares outstanding used in per common share computations: Basic 14,522 14,313 14,446 14,273 Diluted 14,522 14,313 14,446 14,273 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Expand TruBridge, Inc. Condensed Consolidated Balance Sheets (In '000s, except per share data) June 30, 2025 (Unaudited) December 31, 2024 Assets Current assets Cash and cash equivalents $ 12,279 $ 12,324 Accounts receivable, net of allowance for expected credit losses of $5,208 and $5,861 56,432 53,753 Current portion of financing receivables, net of allowance for expected credit losses of $560 and $417 2,727 4,663 Inventories 444 767 Prepaid income taxes 3,459 2,886 Prepaid expenses and other current assets 14,473 15,275 Assets held for sale 445 606 Total current assets 90,259 90,274 Property & equipment, net 2,559 2,294 Software development costs, net 43,317 41,474 Operating lease right-of-use assets 2,617 3,092 Financing receivables, less current portion, less allowance for expected credit losses of $258 and $21 22 232 Other assets, less current portion 8,196 7,786 Intangible assets, net 70,608 76,707 Goodwill 172,573 172,573 Total assets $ 390,151 $ 394,432 Liabilities & Stockholders' Equity Current liabilities Accounts payable $ 19,672 $ 15,040 Current portion of long-term debt 2,980 2,980 Deferred revenue 9,368 10,653 Accrued vacation 5,235 4,770 Income taxes payable 623 3,538 Other accrued liabilities 12,302 15,994 Total current liabilities 50,180 52,975 Long-term debt, less current portion 163,108 168,598 Operating lease liabilities, less current portion 1,827 2,293 Deferred tax liabilities 1,863 1,871 Total liabilities 216,978 225,737 Stockholders' Equity Common stock, $0.001 par value; 30,000 shares authorized; 15,700 and 15,522 shares issued 15 15 Additional paid-in capital 204,376 201,066 Retained deficit (11,913 ) (14,952 ) Accumulated other comprehensive income 27 45 Treasury stock, 685 and 619 shares (19,332 ) (17,479 ) Total stockholders' equity 173,173 168,695 Total liabilities and stockholders' equity $ 390,151 $ 394,432 Expand TruBridge, Inc. Condensed Consolidated Statements of Cash Flows (In '000s) (Unaudited) Six Months Ended June 30, 2025 2024 * Operating activities: Net income (loss) $ 3,039 $ (6,242 ) Adjustments to net income (loss): Provision for credit losses 1,609 358 Deferred taxes (7 ) (5,224 ) Stock-based compensation 3,310 2,300 Depreciation 603 800 Gain on sale of business (53 ) (1,250 ) Amortization of acquisition-related intangibles 6,098 6,253 Amortization of software development costs 6,316 8,722 Amortization of deferred finance costs 259 213 Non-cash operating lease costs 537 897 Gain on disposal of property and equipment (120 ) - Changes in operating assets and liabilities: Accounts receivable (3,967 ) (1,085 ) Financing receivables 1,825 506 Inventories 323 (318 ) Prepaid expenses and other assets (1,827 ) 1,502 Accounts payable 5,082 5,750 Deferred revenue (1,284 ) 1,769 Operating lease liabilities (548 ) (583 ) Other liabilities (3,191 ) (2,375 ) Income taxes, net (3,487 ) (263 ) Net cash provided by operating activities 14,517 11,730 Investing activities: Purchase of business, net of cash acquired - (664 ) Sale of business, net of cash and cash equivalent sold 2,102 21,410 Investment in software development (8,159 ) (9,324 ) Purchases of property and equipment (902 ) (306 ) Net cash (used in) provided by investing activities (6,959 ) 11,116 Financing activities: Payments of long-term debt principal (1,750 ) (5,750 ) Proceeds from revolving line of credit 15,368 21,072 Payments of revolving line of credit (19,368 ) (33,379 ) Debt issuance cost - (529 ) Treasury stock purchases (1,853 ) (358 ) Net cash used in financing activities (7,603 ) (18,944 ) (Decrease) Increase in cash and cash equivalents (45 ) 3,902 Change in cash and cash equivalents included in assets sold - (41 ) Cash and cash equivalents, beginning of period 12,324 3,848 Cash and cash equivalents, end of period $ 12,279 $ 7,709 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the six months ended June 30, 2024 by $1.7 million. These revisions had no cash flow consequences. Expand TruBridge, Inc. Consolidated Bookings (In '000s) (Unaudited) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 2025 2024 Financial Health (1) $ 13,705 $ 13,458 $ 26,485 $ 27,849 Patient Care (2) 11,908 9,832 21,109 19,010 Total Bookings $ 25,613 $ 23,290 $ 47,594 $ 46,859 (1) Generally calculated as the annual contract value (2) Generally calculated as the total contract value for system sales and SaaS, and annual contract value for maintenance and support Annual Contract Value Effective January 2025, the Company will be providing bookings on an Annual Contract Value ('ACV') basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value ('TCV') for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company will be providing total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026. The below table represents bookings at the ACV methodology for the three and six months ended June 30, 2025: Six Months Ended June 30, In '000s 2025 2025 Financial Health $ 13,705 $ 26,485 Patient Care 5,921 10,480 Total Bookings (ACV) $ 19,626 $ 36,965 Expand TruBridge, Inc. Bookings Composition (In '000s, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 2025 2024 Financial Health Net new (1) $ 5,067 $ 6,453 $ 11,529 $ 15,446 Cross-sell (1) 8,638 7,004 14,956 12,402 Patient Care Non-subscription sales (2) 2,730 4,084 5,332 7,534 Subscription revenue (3) 9,178 5,749 15,777 11,477 Total Bookings $ 25,613 $ 23,290 $ 47,594 $ 46,859 (1) 'Net new' represents bookings from outside the Company's core client base, and 'Cross-sell' represents bookings from existing customers. In each case, such bookings are generally comprised of recurring revenues to be recognized ratably over a one-year period and an average timeframe for bookings-to-revenue conversion of four to six months following contract execution. (2) Represents nonrecurring revenues that generally exhibit a timeframe for bookings-to-revenue conversion of five to six months following contract execution. (3) Represents recurring revenues to be recognized on a monthly basis over a weighted-average contract period of five years, with a start date in the next 12 months and an average timeframe for commencement of bookings-to-revenue conversion of five to six months following contract execution. Annual Contract Value Effective January 2025, the Company will be providing bookings on an Annual Contract Value ('ACV') basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value ('TCV') for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company will be providing total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026. The below table represents bookings at the ACV methodology for the three and six months ended June 30, 2025: Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2025 Financial Health Net new (1) $ 5,067 $ 11,529 Cross-sell (1) 8,638 14,956 Patient Care Non-subscription sales (2) 2,730 5,332 Subscription revenue (3) 3,191 5,148 Total Bookings (ACV) $ 19,626 $ 36,965 Expand TruBridge, Inc. Adjusted EBITDA - by Segment (In '000s) (Unaudited) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 * 2025 2024 * Financial Health $ 7,092 $ 8,209 $ 18,373 $ 15,006 Patient Care 6,651 $ 5,235 13,601 8,762 Total Adjusted EBITDA $ 13,743 $ 13,444 $ 31,974 $ 23,768 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Expand TruBridge, Inc. Reconciliation of Non-GAAP Financial Measures (In '000s) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Adjusted EBITDA: 2025 2024 * 2025 2024 * Total Adjusted EBITDA $ 13,743 $ 13,444 $ 31,974 $ 23,768 Adjusted EBITDA Margin 16.0 % 15.7 % 18.5 % 14.0 % Depreciation expense 312 400 603 800 Amortization of software development costs 3,245 5,980 6,316 8,722 Amortization of acquisition-related intangibles 3,046 3,126 6,098 6,253 Stock-based compensation 2,097 1,501 3,310 2,300 Severance and other nonrecurring charges 1,416 4,586 3,860 8,430 Interest expense and other income 2,929 4,151 6,340 8,051 Gain on disposal of property and equipment - - (120 ) - Gain on sale of AHT - - (53 ) (1,250 ) Income (loss) before taxes, as reported 698 (6,300 ) 5,620 (9,538 ) Provision for (benefit from) income taxes (1,882 ) (1,912 ) 2,581 (3,296 ) Net income (loss), as reported $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Net income (loss) margin 3.0 % (5.1 %) 1.8 % (3.7 %) *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Expand TruBridge, Inc. Reconciliation of Non-GAAP Financial Measures (In '000s, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Non-GAAP Net Income and Non-GAAP EPS: 2025 2024 * 2025 2024 * Net income (loss), as reported $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Pre-tax adjustments for Non-GAAP EPS: Amortization of acquisition-related intangible assets 3,046 3,126 6,098 6,253 Stock-based compensation 2,097 1,501 3,310 2,300 Severance and other nonrecurring charges 1,416 4,586 3,860 8,430 Non-cash interest expense 130 107 260 213 Gain on sale of AHT - - (53 ) (1,250 ) After-tax adjustments for Non-GAAP EPS: Tax-effect of pre-tax adjustments, at 21% (1,405 ) (1,957 ) (2,830 ) (3,349 ) Tax shortfall (windfall) from stock-based compensation - 4 (670 ) 113 Non-GAAP net income $ 7,864 $ 2,979 $ 13,014 $ 6,468 Weighted average shares outstanding, diluted 14,522 14,313 14,446 14,273 Non-GAAP EPS $ 0.54 $ 0.21 $ 0.90 $ 0.45 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Expand TruBridge, Inc. Revenue Composition (In '000s) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 * 2025 2024 * Recurring revenues Financial Health $ 53,322 $ 52,798 $ 108,586 $ 104,914 Patient Care 28,115 27,135 55,562 55,678 Total recurring revenues 81,437 79,933 164,148 160,592 Non-recurring revenues Financial Health 962 1,711 1,831 3,034 Patient Care 3,330 3,956 6,958 6,091 Total non-recurring revenues 4,292 5,667 8,789 9,125 Total revenues $ 85,729 $ 85,600 $ 172,937 $ 169,717 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Expand Explanation of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States of America, or 'GAAP.' However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures that are prepared in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management uses these non-GAAP financial measures in order to evaluate the operating performance of the Company and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. In addition, management understands that some investors and financial analysts find these non-GAAP financial measures helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the second quarter of 2025 or the fiscal year 2025 to net income for such periods, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA. As such, to supplement the GAAP information provided, we present in this press release and during the live webcast discussing our financial results the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP net income, and Non-GAAP earnings per share ('EPS'). We calculate each of these non-GAAP financial measures as follows: Adjusted EBITDA – Adjusted EBITDA consists of GAAP net income as reported and adjusts for (i) depreciation expense; (ii) amortization of software development costs; (iii) amortization of acquisition-related intangibles; (iv) stock-based compensation; (v) severance and other nonrecurring charges; (vi) interest expense and other income; (vii) gain on disposal of property and equipment; (viii) gain on sale of AHT; and (ix) the provision for (benefit from) income taxes. Adjusted EBITDA Margin – Adjusted EBITDA Margin is calculated as Adjusted EBITDA, as defined above, divided by total revenue. Non-GAAP net income – Non-GAAP net income consists of GAAP net income as reported and adjusts for (i) amortization of acquisition-related intangible assets; (ii) stock-based compensation; (iii) severance and other nonrecurring charges; (iv) non-cash interest expense; (v) gain on sale of AHT; and (vi) the total tax effect of items (i) through (v). Non-GAAP EPS – Non-GAAP EPS consists of Non-GAAP net income, as defined above, divided by weighted average shares outstanding (diluted) in the applicable period. Certain of the items excluded or adjusted to arrive at these non-GAAP financial measures are described below: Amortization of acquisition-related intangibles – Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. We exclude acquisition-related amortization expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods. Stock-based compensation – Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. We exclude stock-based compensation expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods. Severance and other nonrecurring charges – Non-recurring charges relate to certain severance and other charges incurred in connection with activities that are considered non-recurring. We exclude non-recurring expenses (primarily related to costs associated with our recent business transformation initiative and transaction-related costs) from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods. Non-cash Interest expense – Non-cash interest expense includes amortization of deferred debt issuance costs. We exclude non-cash interest expense from non-GAAP financial measures because we believe these non-cash amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations. Interest expense and other income – Interest expense and other income represents (i) interest incurred on our term loan and revolving credit facility and (ii) non-cash interest expense. We exclude interest expense from non-GAAP financial measures because we believe these amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations. Gain on disposal of property and equipment – Gain on disposal of property and equipment represents the excess of proceeds received over the book value of assets disposed of during the period. We exclude gain on disposal of property and equipment from non-GAAP financial measures because we believe (i) the amount of such gain or loss in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such gain or loss can vary significantly between periods. Gain on sale of AHT – Gain on sale of AHT represents the excess of proceeds received over the net assets sold from our sale of AHT, our previously wholly-owned post-acute business, in January 2024. We exclude gain on sale of AHT from non-GAAP financial measures because we believe the amount relates to a specific transaction and, as such, may not directly correlate to the underlying performance of our business operations. Tax shortfall (windfall) from stock-based compensation – ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, became effective for the Company during the third quarter of 2017 and changes the treatment of tax shortfall and excess tax benefits arising from stock based compensation arrangements. Prior to ASU 2016-09, these amounts were recorded as an increase (for excess benefits) or decrease (for shortfalls) to additional paid-in capital. With the adoption of ASU 2016-09, these amounts are now captured in the period's income tax expense. We exclude this component of income tax expense from non-GAAP financial measures because we believe (i) the amount of such expenses or benefits in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses or benefits can vary significantly between periods as a result of the valuation of grants of new stock-based awards, the timing of vesting of awards, and periodic movements in the fair value of our common stock. Management considers these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition, management may use Adjusted EBITDA, Non-GAAP net income and/or Non-GAAP EPS to measure the achievement of performance objectives under the Company's stock and cash incentive programs. Note, however, that these non-GAAP financial measures are performance measures only, and they do not provide any measure of cash flow or liquidity. Non-GAAP financial measures are not alternatives for measures of financial performance prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures presented by other companies, limiting their usefulness as comparative measures. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Additionally, there is no certainty that we will not incur expenses in the future that are similar to those excluded in the calculations of the non-GAAP financial measures presented in this press release. Investors and potential investors are encouraged to review the 'Unaudited Reconciliation of Non-GAAP Financial Measures' above.
Business Wire
3 hours ago
- Business Wire
Former Meta VP Joe O'Keeffe Joins Phosio as Executive Chairman
CORVALLIS, Ore.--(BUSINESS WIRE)--Phosio, a leader in proprietary lens coating materials for lightweight AI-enabled eyewear, today announced that Joe O'Keeffe, who previously served as Vice President of Research at Meta, has joined the company as Executive Chairman. Phosio Brings Meta's AR Visionary on Board to Deliver Stylish, Affordable AI Glasses Share O'Keeffe is widely recognized for display and optics innovation across startups and big tech. At Meta, he led the display and optical systems R&D for next-generation Augmented Reality (AR) glasses, playing a key role in shaping Orion glasses, regarded as one of the most advanced pieces of hardware ever built. Prior to Meta, he founded and scaled photonics companies, including InfiniLED (acquired by Meta). "We are thrilled to welcome Joe to this pivotal moment in our growth," said Omid Sadeghi, CEO of Phosio. "His expertise in optics and business will be instrumental in accelerating our mission. We believe AR glasses will be the next breakthrough in consumer electronics, fueled by advances in AI. With major players like Apple, Google, and Meta racing to develop their own AR glasses, the market is poised for rapid growth and mainstream adoption, provided the form factor and pricing align with consumer expectations." Phosio addresses a critical gap in the AR wearables market. Most AR glasses today offer only audio-based features, while models with integrated displays remain too bulky and expensive for mainstream use. Phosio's breakthrough thin-film materials enable compact, high-performance displays that are practical for consumer devices. This innovation allows manufacturers to deliver AR glasses with integrated displays in lightweight, stylish form factors, and at prices accessible to a broad market. 'I'm excited to join Phosio and contribute to their advanced materials technology platform,' said O'Keeffe. 'Phosio's approach has the potential to transform how we interact with AI through AR glasses in everyday life.' About Phosio Phosio develops advanced lens coating materials that enable immersive visual experiences through lightweight AR eyewear. Its proprietary thin-film platform integrates high-performance displays into everyday glasses, enabling consumer electronics companies to deliver practical, affordable AR glasses with integrated displays. For more information, visit
Business Wire
3 hours ago
- Business Wire
Chime Reports Second Quarter 2025 Financial Results
SAN FRANCISCO--(BUSINESS WIRE)--Chime® (Nasdaq: CHYM), a leading consumer financial technology company, today reported financial results for the quarter ended June 30, 2025. 'This was a breakout first quarter as a public company for Chime, driven by accelerating year-over-year growth, expanding margins, and continued product execution,' said Chris Britt, CEO and Co-founder of Chime. 'These results highlight the strength of our payments-based model, fueled by highly recurring revenue and deep member engagement. Our strong performance has led to higher expectations for the third quarter and full year 2025 relative to our previous internal expectations. Looking ahead, I believe we're well-positioned to achieve our vision of becoming the largest provider of primary account relationships in the U.S.' Second Quarter 2025 Financial Highlights We reported robust growth across key metrics in the second quarter, building on our seasonally strong first quarter, when tax refund activity drives higher levels of re-engaged Active Members, Purchase Volume, and revenue. Revenue was $528 million, up 37% year-over-year. Payments revenue grew 19% year-over-year to $366 million. Platform-related revenue grew 113% year-over-year to $162 million. Gross profit was $461 million, yielding an 87% gross margin. Transaction profit (non-GAAP) was $363 million, yielding a 69% transaction margin. Net loss was $923 million and net margin was (175)%. The increase in net loss was primarily driven by $928 million of stock-based compensation expense and related payroll tax that was significantly elevated in the period due to our initial public offering. Adjusted EBITDA (non-GAAP) was $16 million. Adjusted EBITDA margin of 3% represented an 18 percentage point improvement over the last two years. Active Members grew 23% year-over-year to 8.7 million. Average Revenue per Active Member (ARPAM) grew 12% year-over-year to $245. Purchase Volume grew 18% year-over-year to $32.4 billion. Second Quarter 2025 Business Highlights Continued MyPay success: MyPay transaction margin, which represents MyPay revenue less transaction losses, tripled quarter-over-quarter. This improvement was fueled by strong usage rates, and it represents faster-than-planned progress toward our target of 1% steady state loss rates for MyPay. Accelerated product innovation: We expanded our product suite with our continued rollout of Instant Loans and Chime+, increasing member engagement and retention. AI improving member experience, reducing cost: We launched our GenAI voicebot, which more than doubled satisfaction scores compared to our legacy voice system. Today, AI at Chime handles the work of thousands of member support agents, enabling us to scale with speed and reduce costs, while elevating service quality. Successful ChimeCore rollout: We reached another key milestone by migrating all new debit and savings accounts to ChimeCore, our proprietary payment processor and ledger. We expect to finalize our migration over the next few quarters and operate entirely on our own processing and technology platform, improving product velocity and cost savings. Outlook Our outlook for revenue, adjusted EBITDA, and adjusted EBITDA margin for third quarter and full year 2025 exceeds our previous internal expectations. For the third quarter of 2025, we expect: Revenue between $525 million and $535 million, resulting in year-over-year revenue growth between 24% and 27%. Adjusted EBITDA between $12 million and $17 million, with an adjusted EBITDA margin between 2% and 3%. For the full year of 2025, we expect: Revenue between $2.135 billion and $2.155 billion, resulting in year-over-year revenue growth between 28% and 29%. Adjusted EBITDA between $84 million and $94 million, with an adjusted EBITDA margin of 4%. We also expect incremental adjusted EBITDA margin (non-GAAP) to return to mid-40% or higher by the fourth quarter of 2025. The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding 'Forward-Looking Statements' in this press release. Conference Call Information Chime will host a conference call to discuss its second quarter 2025 financial results and outlook at 3:00 p.m. Pacific Time / 6:00 p.m. Eastern Time today. A live webcast of the earnings conference call will be accessible on Chime's Investor Relations website at m. A replay will be available on the website following the call. An investor presentation, including supplemental financial information and reconciliation of certain non-GAAP financial measures to their nearest comparable GAAP measures, will be available through Chime's Investor Relations website. About Chime Chime (Nasdaq: CHYM) is a financial technology company founded on the premise that core banking services should be helpful, easy, and free. We offer a broad range of low-cost banking and payments products that address the most critical financial needs of everyday people. Our member-aligned business model has helped millions of people to unlock their financial progress. Member deposits are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits. In addition to SEC filings, press releases, and public conference calls and webcasts, Chime uses its investor relations page at and its X (formerly Twitter) channel (@ChimeNewsroom) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or future financial or operating performance. In some cases, you can identify forward-looking statements by terminology such as 'may,' 'will,' 'should,' 'expect,' 'plan,' 'anticipate,' 'could,' 'would,' 'intend,' 'target,' 'project,' 'contemplate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'goal,' 'objective,' 'seek,' or 'continue' or the negative of these terms or other comparable terminology that concern Chime's expectations, strategy, plans, or intentions. Forward-looking statements in this release may relate to, but are not limited to, expectations of future results of operations or financial performance of Chime, expectations regarding certain of our key financial and operating metrics, including our ability to attract and retain Active Members and develop primary account relationships, our business and growth strategy, including future product development plans, our market opportunity, the performance of newly launched products and innovations, our technological capabilities, including the ability of AI to drive cost efficiencies and improvements in member satisfaction, as well as our full transition to ChimeCore, the demand for Chime's products and services, our expectations and management of future growth, and our expectations regarding our industry and traditional banks, as well as assumptions relating to the foregoing. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made or on management's good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. These risks and uncertainties include risks related to our ability to attract and retain Active Members; our relationships with our bank partners; changes in rules and practices concerning interchange fees, card network fees, and other fees and assessments; our ability to maintain and protect our brand; our ability to maintain member satisfaction and provide reliable member support; our ability to develop new products and enhancements for existing products; our reliance on third parties and their systems; our history of net losses and ability to achieve and maintain profitability; and the complex and evolving laws and regulations applicable to our business and the banking ecosystem. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 12, 2025. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. Except as required by law, Chime does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise. Non-GAAP Financial Measures To supplement our consolidated financial information prepared and presented in accordance with U.S. generally accepted accounting principles ('GAAP'), we use certain financial measures that are not prepared in accordance with GAAP, including transaction profit, transaction margin, adjusted EBITDA, and adjusted EBITDA margin, to facilitate analysis of our financial trends and for internal planning and forecasting purposes. We use these non-GAAP financial measures in conjunction with GAAP measures to evaluate our operating performance, formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We believe that these non-GAAP financial measures provide useful information to investors, analysts, and others about our business and financial performance, enhance their overall understanding of our performance, and can assist in providing a more consistent and comparable overview of our financial performance across periods. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected on our consolidated statements of operations. Accordingly, our non-GAAP financial measures are presented for supplemental purposes only and should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this release. We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures included in this release, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these forward-looking non-GAAP metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. Adjusted EBITDA We define adjusted EBITDA as net income (loss), adjusted for (i) depreciation and amortization expense, (ii) other income (expense), net, (iii) provision (benefit) for income taxes, (iv) stock-based compensation expense including related payroll tax, and (v) certain expenses that do not reflect our core operations and may vary significantly from period to period, including restructuring charges, impairment charges, stock-based charitable expense, and certain legal and regulatory charges, as applicable. Adjusted EBITDA Margin We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We believe that adjusted EBITDA and adjusted EBITDA margin are key measures of our operating performance, and management uses these measures to formulate business plans, prepare budgets and forecasts, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Transaction Profit We define transaction profit as gross profit less transaction and risk losses. Transaction Margin We define transaction margin as transaction profit divided by revenue. We believe that transaction profit and transaction margin are key measures of the incremental profit generated by member transactions. Key Metrics We use the following key metrics to help us evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies. Active Members We define an Active Member as a member who has initiated a money movement transaction on our platform in the last calendar month of the applicable period. Member-initiated money movement transactions include, but are not limited to, purchases with Chime-branded debit or credit cards, funding a member account, withdrawing funds from an ATM, sending or receiving funds with Pay Anyone, or taking a MyPay advance. Active Members are a key indicator of the scale of our engaged member base. Average Revenue Per Active Member ('ARPAM') We define Average Revenue per Active Member ('ARPAM') as revenue generated in the calendar quarter multiplied by four and divided by the average of the number of Active Members at the end of the prior quarter and the end of the current quarter. ARPAM is a key indicator of our ability to monetize member engagement, as it captures both the impact of payments revenue from Purchase Volume as well as the monetization of products that contribute to platform-related revenue. Purchase Volume We define Purchase Volume as the total dollar value of member purchase transactions using Chime-branded debit or credit cards during a given period, net of any adjustments or refunds. Purchase Volume is a key driver of payments revenue, because the interchange fees upon which our payments revenue is based are generally determined as a percentage of the underlying transaction value plus a fixed amount per transaction based upon rates set by the card networks. Purchase Volume is also a key indicator of aggregate member engagement. Purchase Volume does not include other types of transaction volumes such as deposits, ATM withdrawals, SpotMe and MyPay advances, sending or receiving funds with Pay Anyone, and ACH or direct debit transfers. June 30, 2025 2024 Assets Current assets: Cash and cash equivalents $ 868,284 $ 337,697 Restricted cash 13,515 12,303 Marketable securities 225,063 368,889 Product collateral 212,983 181,723 Accounts receivable, net 229,594 216,161 Loans held for investment, net 114,120 99,799 Prepaid expenses and other current assets 72,520 70,464 Total current assets 1,736,079 1,287,036 Property, equipment and software, net 89,101 92,700 Operating lease right of use assets, net 45,575 49,332 Other assets 31,719 31,969 Total assets $ 1,902,474 $ 1,461,037 Liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) Current liabilities: Accounts payable $ 51,800 $ 35,846 Accrued and other current liabilities 168,919 224,594 Product obligation 138,979 114,377 Total current liabilities 359,698 374,817 Operating lease liabilities, net of current portion 74,765 80,590 Other non-current liabilities 39,913 46,109 Total liabilities 474,376 501,516 Redeemable convertible preferred stock, $0.0001 par value: No shares authorized, issued, and outstanding as of June 30, 2025. 258,613,394 shares authorized and 258,464,156 shares issued and outstanding with a liquidation preference of $2,894,515 as of December 31, 2024. — 2,890,121 Stockholders' equity (deficit): Preferred stock, $0.0001 par value: 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025. No shares authorized, issued, and outstanding as of December 31, 2024. — — Common stock, $0.0001 par value: No shares authorized, issued, and outstanding as of June 30, 2025. 416,094,141 shares authorized, 66,950,736 shares issued and outstanding as of December 31, 2024. — 2 Class A common stock, $0.0001 par value: 5,000,000,000 shares authorized, 338,594,524 shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024. 28 — Class B common stock, $0.0001 par value: 65,000,000 shares authorized, 32,182,289 shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024. 3 — Class C common stock, $0.0001 par value: 500,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025. No shares authorized, issued and outstanding as of December 31, 2024 — — Additional paid-in capital 4,702,788 433,363 Accumulated other comprehensive income (loss) (116) 203 Accumulated deficit (3,274,605) (2,364,168) Total stockholders' equity (deficit) 1,428,098 (1,930,600) Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) $ 1,902,474 $ 1,461,037 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 528,149 $ 384,214 $ 1,046,893 $ 776,186 Cost of revenue (1) 67,120 50,504 127,538 97,951 Gross profit 461,029 333,710 919,355 678,235 Operating expenses: Transaction and risk losses 98,247 35,000 207,392 71,038 Member support and operations (2) 203,097 69,821 281,706 137,889 Sales and marketing (2) 185,006 118,021 317,579 235,068 Technology and development (2) 621,754 75,371 699,636 150,301 General and administrative (2) 279,667 41,638 326,840 80,890 Depreciation and amortization (1) 3,896 3,300 7,703 7,458 Total operating expenses 1,391,667 343,151 1,840,856 682,644 Income (loss) from operations (930,638) (9,441) (921,501) (4,409) Other income, net 6,215 9,904 11,569 20,413 Income (loss) before income taxes (924,423) 463 (909,932) 16,004 Provision (benefit) for income taxes (1,047) 78 505 (284) Net income (loss) $ (923,376) $ 385 $ (910,437) $ 16,288 Undistributed earnings attributable to preferred stockholders — (385) — (16,288) Net income (loss) attributable to common stockholders $ (923,376) $ — $ (910,437) $ — Net income (loss) per share attributable to common stockholders, basic and diluted $ (7.29) $ — $ (9.44) $ — Weighted average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders, basic and diluted 126,620,499 64,677,568 96,412,477 64,558,990 ____________________________ (1) Total depreciation and amortization includes amounts as follows: Expand Three Months Ended Six Months Ended June 30, June 30, Depreciation and amortization recorded in cost of revenue $ 3,515 $ 2,817 $ 6,966 $ 3,893 Depreciation and amortization recorded as operating expense 3,896 3,300 7,703 7,458 Total depreciation and amortization $ 7,411 $ 6,117 $ 14,669 $ 11,351 ____________________________ (2) Amounts include stock-based compensation as follows: Expand Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2025 2024 2025 2024 Member support and operations $ 119,517 $ 1,010 $ 120,641 $ 2,073 Sales and marketing 42,406 275 42,889 500 Technology and development 530,249 2,689 533,952 4,256 General and administrative 217,975 2,445 221,361 4,765 Total stock-based compensation expense $ 910,147 $ 6,419 $ 918,843 $ 11,594 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Six Months Ended June 30, 2025 2024 Operating activities: Net income (loss) $ (910,437) $ 16,288 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 14,669 11,351 Non-cash lease expense 3,058 2,615 Stock-based compensation 918,843 11,594 Stock-based charitable contribution 11,168 — Provision for transaction dispute losses 31,045 24,125 Change in fair value of product obligation 43,579 31,015 Provision for credit losses 44,096 1,868 Impairment related to real estate assets and internal-use software — 211 Amortization of premium on marketable securities (2,365) (7,884) Other 208 73 Changes in operating assets and liabilities: Product collateral (31,260) (24,980) Accounts receivable, net (14,342) 8,026 Prepaid expenses and other assets (1,432) (1,170) Accounts payable 15,954 836 Accrued and other liabilities (93,291) 30,510 Operating lease liabilities (7,773) (5,306) Settlements of the product obligation (18,977) (28,335) Cash flows provided by operating activities 2,743 70,837 Investing activities: Purchase of marketable securities (234,050) (289,452) Proceeds from sales of marketable securities 256,514 16,985 Proceeds from maturities of marketable securities 123,200 306,875 Purchases of loans held for investment (2,368,152) (54,732) Repayments of loans held for investment 2,311,634 30,618 Purchase of property, equipment and software (3,631) (134) Capitalization of internal-use software (6,389) (4,298) Acquisition of business, net of cash acquired — (11,036) Cash flows provided by (used in) investing activities 79,126 (5,174) Financing activities: Payment of debt issuance costs related to the credit facility (1,134) — Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts and offering costs paid 772,556 — Taxes paid related to net share settlement of restricted stock units (322,619) — Proceeds from exercise of stock options 1,127 600 Repurchases of common stock — (593) Cash flows provided by financing activities 449,930 7 Net increase in cash and cash equivalents and restricted cash 531,799 65,670 Cash, cash equivalents, and restricted cash, beginning of period 350,000 239,745 Cash, cash equivalents, and restricted cash, end of period $ 881,799 $ 305,415 Cash and cash equivalents, end of the period $ 868,284 $ 295,415 Restricted cash, end of the period 13,515 10,000 Cash, cash equivalents, and restricted cash, end of the period $ 881,799 $ 305,415 Expand CHIME FINANCIAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Supplementary cash flow disclosure: Cash paid for interest $ 140 $ 233 Cash paid for income taxes $ 1,071 $ 161 Supplemental disclosures of noncash investing and financing activities: Deferred offering costs not yet paid $ 1,968 $ — Reclassification of deferred offering costs to additional paid-in capital upon initial public offering $ 17,299 $ — Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ 2,890,121 $ — Purchases of property, equipment and software in accounts payable $ 294 $ — Cash consideration, accrued but not yet paid, related to acquisition of business $ — $ 2,300 Expand Three Months Ended Six Months Ended June 30, June 30, (in thousands, except percentages) 2025 2024 2025 2024 Net income (loss) $ (923,376) $ 385 $ (910,437) $ 16,288 Net margin (175) % — % (87) % 2 % Adjusted for: Depreciation and amortization expense 7,411 6,117 14,669 11,351 Other (income) expense, net (1) (6,215) (9,904) (11,569) (20,413) Provision (benefit) for income taxes (1,047) 78 505 (284) Stock-based compensation expense and related payroll tax 928,062 6,419 936,758 11,594 Stock-based charitable contribution expense 11,168 — 11,168 — Adjusted EBITDA $ 16,003 $ 3,095 $ 41,094 $ 18,536 Adjusted EBITDA margin 3 % 1 % 4 % 2 % ____________________________ (1) Relates primarily to interest income, which consists of interest and dividends earned on our cash and cash equivalents and marketable securities. Expand
