Chime Financial, Inc. Class A (CHYM)
NASDAQ:CHYM
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Chime Financial, Inc. Class A
(NASDAQ:CHYM)
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Rating:56Neutral
Price Target:
$20.00
▼(-6.02% Downside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak financial profitability (large 2025 loss and very poor ROE) and bearish technical signals (below key moving averages with negative MACD). Offsetting these, the latest earnings call guidance points to strong growth, expanding margins, and expected GAAP profitability in 2026, which improves the outlook despite remaining credit/seasonality risks.
Positive Factors
Strong revenue growth and high gross margins
Sustained top-line expansion (31% in 2025) combined with very high gross margins (~79%–88%) indicates strong unit economics and market demand. That mix supports scalable revenue growth, durable contribution margin and the ability to invest in product and customer acquisition over the next 2–6 months.
Negative Factors
Large 2025 net loss and deteriorated earnings quality
A large GAAP loss in 2025 despite revenue growth signals either significant one-time items or structural profitability gaps. Persistent large losses can erode equity, impair reinvestment flexibility and constrain free-cash-flow conversion if not reversed sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and high gross margins
Sustained top-line expansion (31% in 2025) combined with very high gross margins (~79%–88%) indicates strong unit economics and market demand. That mix supports scalable revenue growth, durable contribution margin and the ability to invest in product and customer acquisition over the next 2–6 months.
Read all positive factors
Chime Financial, Inc. Class A (CHYM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.53B
Dividend YieldN/A
Average Volume (3M)4.66M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth30.32%
EPS Growth-1664.13%
CountryUS
Employees1,465
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.12
Shares Outstanding351,967,530
10 Day Avg. Volume2,860,014
30 Day Avg. Volume4,658,177
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)42.43
Price to Sales (P/S)27.20
P/FCF Ratio1.81K
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit4.18
Enterprise Value/Ebitda-8.01
Forecast
1Y Price Target
$31.62Price Target Upside48.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)0.15
Revenue Forecast (FY)$2.66B
Chime Financial, Inc. Class A Business Overview & Revenue Model
Company Description
Chime is a mobile-first fintech platform offering fee-free banking services—such as checking, savings, early paycheck access, and overdraft protection—via partnerships with FDIC-insured banks. It focuses on serving consumers earning under $100K/ye...
How the Company Makes Money
Chime Financial, Inc. primarily makes money through partnerships with banks and generating revenue from interchange fees. When a customer uses their Chime-provided Visa debit card to make purchases, the merchant pays an interchange fee to the card...
Chime Financial, Inc. Class A Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call communicated strong execution: robust revenue growth (31% FY), meaningful margin expansion (12ppt YoY in Q4), product-led monetization (Chime Card, MyPay, Instant Loans), completion of a major ChimeCore migration with substantial cost advantages, large net new active member additions and high engagement. Management provided confident 2026 guidance with continued operating leverage and GAAP profitability expected for the balance of the year. Near-term uncertainties include seasonality/tax timing, MyPay repricing effects, the credit profile of scaling Instant Loans, and the multi-quarter ramp of the enterprise channel and planned marketing investments. Overall, positive momentum and structural advantages outweigh these manageable near-term risks.Positive Updates
Strong Full-Year and Q4 Revenue Growth
2025 revenue grew 31% year-over-year. In Q4, revenue grew 25% YoY, exceeding guidance, with Q1 2026 revenue guide of $627M–$637M (21%–23% YoY) and FY2026 revenue guide of $2.63B–$2.67B (20%–22% YoY).
Negative Updates
Seasonality and Tax-Refund Timing Uncertainty
Business is seasonal (Q1 benefits from tax refunds; Q2 typically normalizes). This year’s tax refund timing is later than prior years; although refunds are tracking higher (average refund up double digits vs prior year so far), timing uncertainty could affect short-term seasonality and quarter-to-quarter comparability.
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Q4-2025 Updates
Positive
Negative
Strong Full-Year and Q4 Revenue Growth
2025 revenue grew 31% year-over-year. In Q4, revenue grew 25% YoY, exceeding guidance, with Q1 2026 revenue guide of $627M–$637M (21%–23% YoY) and FY2026 revenue guide of $2.63B–$2.67B (20%–22% YoY).
Read all positive updates
Company Guidance
Chime guided Q1 2026 revenue of $627–$637M (up 21–23% YoY), adjusted EBITDA of $90–$95M and an adjusted EBITDA margin of 14–15%; for full‑year 2026 it expects revenue of $2.63–$2.67B (up 20–22% YoY), adjusted EBITDA of $380–$400M (14–15% margin), implying 8–9 points of year‑over‑year margin expansion and an incremental adjusted EBITDA margin of >55%, and management expects to be GAAP‑profitable for the balance of the year. The guide embeds seasonal Q1 upside from tax refunds (higher purchase volume, ARPAM and net new active adds with Q2 normalization), product tailwinds from Chime Card, MyPay’s new variable pricing and Instant Loans, and a goal to add ~1.4M net new active members in 2026; management also said transaction margins should remain consistent with Q4 ’25 levels (Q4 transaction margin 72%, annualized transaction profit ~$1.7B) while scaling largely without adding headcount.Chime Financial, Inc. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
63
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 2.19B | 1.67B | 1.28B | 1.01B |
| Gross Profit | 1.88B | 1.47B | 1.06B | 794.15M |
| EBITDA | -979.11M | -36.83M | -222.85M | -471.40M |
| Net Income | -1.01B | -25.34M | -203.20M | -470.25M |
Balance Sheet | ||||
| Total Assets | 1.96B | 1.46B | 1.32B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 706.59M | 800.63M | 937.97M |
| Total Debt | 134.66M | 96.34M | 104.89M | 100.81M |
| Total Liabilities | 562.90M | 501.52M | 383.74M | 316.71M |
| Stockholders Equity | 1.40B | 959.52M | 936.51M | 1.10B |
Cash Flow | ||||
| Free Cash Flow | 32.89M | 49.67M | -184.41M | -507.05M |
| Operating Cash Flow | 52.78M | 64.14M | -156.59M | -434.13M |
| Investing Cash Flow | -289.69M | 45.66M | 167.01M | 150.54M |
| Financing Cash Flow | 367.67M | 456.00K | 842.00K | 1.02M |
Chime Financial, Inc. Class A Risk Analysis
Chime Financial, Inc. Class A disclosed 61 risk factors in its most recent earnings report. Chime Financial, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chime Financial, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $7.53B | ― | -76.87% | ― | 30.32% | -1664.13% | |
52 Neutral | $155.72M | -15.62 | -16.24% | ― | -11.99% | 63.64% | |
47 Neutral | $77.62M | -2.63 | -32.04% | 1.65% | 482.50% | 82.04% | |
39 Underperform | $7.79M | -0.41 | ― | ― | -13.86% | -32.19% |
* Financial Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.