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Chime Financial, Inc. Class A (CHYM)
NASDAQ:CHYM
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Chime Financial, Inc. Class A
(NASDAQ:CHYM)
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Rating:64Neutral
Price Target:
$26.00
▼(-1.85% Downside)
Chime Financial's overall stock score is driven by strong earnings call performance and positive technical indicators, despite challenges in profitability and valuation concerns. The company's strategic initiatives and product launches are promising, but financial performance needs improvement.
Positive Factors
Revenue Growth
Strong revenue growth indicates Chime's expanding market presence and effective business model, supporting long-term financial health.
Product Innovation
The launch of innovative products like the Chime Card enhances customer engagement and competitive positioning, driving future growth.
Strategic Partnerships
Strategic partnerships expand Chime's enterprise reach, facilitating member acquisition and strengthening its market position.
Negative Factors
Profitability Challenges
Ongoing profitability challenges reflect operational inefficiencies, which could hinder long-term financial sustainability if not addressed.
High Expenses
High operational expenses relative to revenue could limit Chime's ability to achieve profitability, impacting its long-term growth potential.
Termination Expense
Significant one-time expenses can strain financial resources and affect short-term cash flow, impacting operational flexibility.
Chime Financial, Inc. Class A (CHYM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.92B
Dividend YieldN/A
Average Volume (3M)3.53M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth30.32%
EPS Growth-1664.13%
CountryUS
Employees1,465
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.15
Shares Outstanding342,395,700
10 Day Avg. Volume2,854,566
30 Day Avg. Volume3,533,350
Financial Highlights & Ratios
PEG Ratio6.09
Price to Book (P/B)14.09
Price to Sales (P/S)8.08
P/FCF Ratio272.27
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue4.15
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda-6.84
Forecast
1Y Price Target
$32.36Price Target Upside22.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-4.32
Revenue Forecast (FY)$2.17B
Chime Financial, Inc. Class A Business Overview & Revenue Model
Company DescriptionChime 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/year and earns mainly through interchange fees.
How the Company Makes MoneyChime generates revenue through several key streams. Primarily, it earns money through interchange fees, which are charged to merchants when customers use their Chime debit cards for purchases. Additionally, Chime can earn interest on the deposits held in customers' accounts, although it often shares these benefits with its users through features like high-yield savings. The company has also established partnerships with banks to offer its services, which can contribute to revenue-sharing agreements. Furthermore, Chime may explore other revenue opportunities such as lending products in the future, increasing its financial ecosystem.
Chime Financial, Inc. Class A Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
Chime's earnings call reflected strong overall performance with significant membership growth, revenue increases, and successful new product launches. The completion of ChimeCore and strategic partnerships in enterprise channels further bolster future prospects. While there are some expected normalizations in ARPAM growth and a one-time termination expense, the highlights significantly outweigh these lowlights.Q3-2025 Updates
Positive Updates
Record Membership Growth
Chime reached 9.1 million active members, a 21% year-over-year increase, adding approximately 400,000 members sequentially from Q2.
Revenue and Profitability
Chime reported a 29% year-over-year revenue growth and improved the adjusted EBITDA margin by 9 percentage points year-over-year.
New Product Launch - Chime Card
Introduced the new Chime Card with 1.5% cash back on everyday spend, contributing to a 175 basis points interchange rate, over 50% higher than the average take rate.
ChimeCore Platform Completion
Completed the migration to ChimeCore, expected to increase gross margin to close to 90% in Q4.
Raising Guidance
Chime raised guidance for Q4 and full year 2025 revenue and adjusted EBITDA, highlighting confidence in continued growth.
Strong Consumer Health
Despite macroeconomic concerns, Chime members showed robust spending with no signs of unemployment pressure.
Enterprise Channel Expansion
Chime announced partnerships with Workday and UKG, with early traction in bringing Chime solutions to employees of enterprise partners.
Negative Updates
Normalization of ARPAM Growth
As Chime laps the initial launch of MyPay, ARPAM growth is expected to moderate in Q4.
Termination Expense with Galileo
A one-time expense of approximately $33 million will be incurred in Q4 due to the termination agreement with third-party processor Galileo.
Company Guidance
During Chime's Third Quarter Fiscal 2025 Earnings Call, the company reported strong financial and operational performance, with several key metrics demonstrating significant growth. The revenue for Q3 increased by 29% year-over-year, reaching a $2 billion revenue run rate, and the adjusted EBITDA margin improved by 9 percentage points to 5%. Chime also experienced a 21% year-over-year increase in active members, now totaling 9.1 million, driven by its new Chime Card and MyPay products. The Chime Card offers 1.5% cash back for direct depositors and has helped shift more spending to credit, enhancing the transaction margin. MyPay, a product with a $350 million annual run rate and over 45% transaction margin, contributed significantly to the revenue growth. Chime raised its guidance for Q4 and full fiscal year 2025, anticipating continued revenue and adjusted EBITDA growth. Furthermore, the company highlighted its strategic initiatives, including the successful migration to its proprietary ChimeCore technology, which is expected to increase gross margins to nearly 90% in Q4, and its early engagement and enterprise programs, which are showing promising results in member acquisition and employer partnerships.Chime Financial, Inc. Class A Financial Statement Overview
Summary
Chime Financial demonstrates strong revenue growth and a solid balance sheet with low leverage. However, challenges in achieving profitability and efficient cash flow management persist, as indicated by negative net profit margins and a free cash flow to net income ratio below 1.Income Statement
Chime Financial has shown a positive revenue growth rate of 26.73% from 2023 to 2024, indicating strong top-line growth. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins over the years. The gross profit margin is healthy at 87.60% for 2024, but the negative EBIT and net profit margins suggest operational inefficiencies and high expenses relative to revenue.55
Neutral
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.10 in 2024, indicating conservative leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the low debt levels imply a strong equity base.60
Neutral
Cash Flow
Chime Financial has improved its cash flow position, with a significant increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations. However, the free cash flow to net income ratio is below 1, suggesting that not all net income is translating into free cash flow.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 1.59B | 1.67B | 1.28B | 1.01B |
| Gross Profit | 1.39B | 1.47B | 1.06B | 794.15M |
| EBITDA | -964.03M | -36.83M | -222.85M | -471.40M |
| Net Income | -965.16M | -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 | 1.08B | 706.59M | 800.63M | 937.97M |
| Total Debt | 137.76M | 96.34M | 104.89M | 100.81M |
| Total Liabilities | 519.04M | 501.52M | 383.74M | 316.71M |
| Stockholders Equity | 1.44B | 959.52M | 936.51M | 1.10B |
Cash Flow | ||||
| Free Cash Flow | 14.54M | 49.67M | -184.41M | -507.05M |
| Operating Cash Flow | 20.23M | 64.14M | -156.59M | -434.13M |
| Investing Cash Flow | -344.48M | 45.66M | 167.01M | 150.54M |
| Financing Cash Flow | 432.96M | 456.00K | 842.00K | 1.02M |
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% | |
64 Neutral | $9.92B | -9.85 | ― | ― | 30.32% | -1664.13% | |
55 Neutral | $203.53M | -0.66 | -35.87% | ― | -11.99% | 63.64% | |
47 Neutral | $136.30M | 4.17 | 43.45% | 1.65% | 482.50% | 82.04% | |
37 Underperform | $7.79M | -0.02 | ― | ― | -13.86% | -32.19% |
* Financial Sector Average
CHYM
Chime Financial, Inc. Class A
26.49
-8.30
-23.86%
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NSTS
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12.03
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Chime Financial, Inc. Class A Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Chime Financial Reports Strong Q3 2025 Performance
Positive
Nov 5, 2025
On November 5, 2025, Chime Financial, Inc. announced a robust financial performance for the third quarter of 2025, with a 29% year-over-year revenue growth and a 21% increase in active members, reaching 9.1 million. The company reported a net loss of $55 million but showed strong top-line momentum and improved margins, raising its full-year outlook. Additionally, Chime’s board authorized a share repurchase program of up to $200 million, reflecting confidence in its financial strength and long-term growth potential. The company also highlighted the successful rollout of new products like the Chime Card and strategic partnerships with major human capital management platforms, further enhancing its market positioning.
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.