Chime Financial, Inc. Class A (CHYM)
NASDAQ:CHYM
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Chime Financial, Inc. Class A
(NASDAQ:CHYM)
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Rating:59Neutral
Price Target:
$22.50
▼(-6.72% Downside)
Action:ReiteratedDate:05/08/26
The score is held back primarily by weak historical profitability/ROE and earnings volatility despite strong revenue growth and improving cash generation. The latest earnings call materially improves the outlook with raised guidance and a first GAAP-profitable quarter, while technical signals are mixed and valuation (P/E ~33) remains relatively demanding.
Positive Factors
Member growth & engagement
Sustained 19% YoY active-member growth to 10.2M increases the platform’s addressable transaction base and cross-sell potential. Larger, engaged cohorts raise ARPAM and deposits over time, reinforcing network effects and a durable revenue foundation from interchange and payments.
Negative Factors
2025 earnings collapse & weak ROE
A ~ $1.0B net loss and a sharply negative ROE indicate capital is not being converted into profits, signaling a structural profitability hole. Such severe 2025 deterioration strains investor confidence and could force tougher capital allocation choices if not reversed sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Member growth & engagement
Sustained 19% YoY active-member growth to 10.2M increases the platform’s addressable transaction base and cross-sell potential. Larger, engaged cohorts raise ARPAM and deposits over time, reinforcing network effects and a durable revenue foundation from interchange and payments.
Read all positive factors
Chime Financial, Inc. Class A (CHYM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.26B
Dividend YieldN/A
Average Volume (3M)4.87M
Price to Earnings (P/E)33.4
Beta (1Y)2.37
Revenue Growth29.75%
EPS Growth-2189.23%
CountryUS
Employees1,465
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-2.56
Shares Outstanding349,836,060
10 Day Avg. Volume3,616,797
30 Day Avg. Volume4,874,767
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 Cap0.94
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit3.63
Enterprise Value/Ebitda-6.96
Forecast
1Y Price Target
$30.05Price Target Upside24.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)0.17
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based positive momentum: record active member growth, double-digit revenue growth (25% YoY), first quarter of GAAP profitability, sizable adjusted EBITDA and transaction profit expansion, and powerful unit economics supported by MyPay and Chime Card adoption. Management is investing in Chime Prime, AI-driven product velocity, and enterprise growth—moves expected to deepen member relationships but which introduce near-term seasonality and investment-driven margin headwinds. Overall the positives (growth, profitability, product traction, and operating leverage) materially outweigh the early-stage risks and seasonal/near-term investments.Positive Updates
Strong Member Growth
Added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million (19% year-over-year growth in active members).
Negative Updates
Seasonal Tailwinds and Q2 Normalization
Q1 benefitted from tax-refund seasonality (embedded tax filing usage +50% YoY and later tax season concentrated reengagement), which inflates Q1 net adds and transaction margin. Management expects Q2 net adds to seasonally decline and transaction margin to normalize from 76% to ~70%–72% for the remainder of the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Member Growth
Added nearly 700,000 active members in Q1, bringing total active members to a record 10.2 million (19% year-over-year growth in active members).
Read all positive updates
Company Guidance
Chime provided Q2 guidance for revenue of $633–$643 million (up 20%–22% year‑over‑year) and adjusted EBITDA of $72–$77 million (adjusted EBITDA margin 11%–12%), noting Q2 incremental adjusted EBITDA margins in the low‑50s as they ramp investments for Chime Prime; for full‑year 2026 they now expect revenue of $2.66–$2.69 billion (up 22%–23% YoY), adjusted EBITDA of $416–$431 million (adjusted EBITDA margin ~16%) and an incremental adjusted EBITDA margin of approximately 60% for the year. Management also said transaction margin should normalize from Q1’s 76% to roughly 70%–72% for the rest of the year, highlighted typical Q1 tax‑refund seasonality (higher Q1 net adds, lower Q2 net adds), and flagged planned Q2 investments in sales/marketing and member support for Prime.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% | |
59 Neutral | $7.26B | 33.43 | -67.86% | ― | 29.75% | -2189.23% | |
52 Neutral | $139.33M | -11.19 | -16.24% | ― | -3.90% | 96.81% | |
51 Neutral | $115.98M | -0.36 | -32.04% | 1.65% | 311.39% | -1098.01% | |
39 Underperform | $7.82M | -0.41 | ― | ― | ― | ― |
* Financial Sector Average
CHYM
Chime Financial, Inc. Class A
19.01
-15.78
-45.36%
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Chime Financial, Inc. Class A Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Chime Delivers First GAAP Profit and Raises 2026 Outlook
Positive
May 6, 2026
On May 6, 2026, Chime reported strong first-quarter 2026 results, with revenue rising 25% year over year to $647 million and net income reaching $53 million, marking its first GAAP-profitable quarter as a public company. The company grew Active Me...
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.