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Chime Financial, Inc. Class A
(NASDAQ:CHYM)
Select Model
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Rating:63Neutral
Price Target:
$28.00
▼(-17.06% Downside)
Action:Reiterated
Date:09/09/26
CHYM scores as a moderate opportunity: the biggest driver is improving forward outlook and operating momentum from the latest earnings call (raised guidance, margin expansion, product traction). This is tempered by weak recent profitability in the financial statements (large 2025 loss and poor ROE) and limited valuation support due to a deeply negative P/E. Technicals are supportive of an uptrend but look somewhat extended, while the Stride acquisition adds strategic upside with execution risk.
Positive Factors
Member Growth
Rapid member growth expands the customer base that drives card transactions, interchange revenue, and product adoption. Accelerating net adds and a higher 2026 target suggest durable acquisition momentum, while a larger platform can improve operating leverage as engagement scales.
Negative Factors
Profitability Deterioration
The sharp 2025 loss and deeply negative return on equity show that rapid revenue expansion has not yet translated into dependable accounting profits. This weak earnings base can constrain confidence in sustainable capital efficiency and makes future results more sensitive to operating and credit costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Member Growth
Rapid member growth expands the customer base that drives card transactions, interchange revenue, and product adoption. Accelerating net adds and a higher 2026 target suggest durable acquisition momentum, while a larger platform can improve operating leverage as engagement scales.
Read all positive factors
Chime Financial, Inc. Class A (CHYM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.04B
Dividend YieldN/A
Average Volume (3M)7.55M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth17.51%
EPS Growth98.06%
CountryUS
Employees1,519
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.06
Shares Outstanding347,019,870
10 Day Avg. Volume8,292,158
30 Day Avg. Volume7,547,728
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)6.80
Price to Sales (P/S)4.36
P/FCF Ratio289.82
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$39.17Price Target Upside16.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)0.46
Revenue Forecast (FY)$2.77B
Chime Financial, Inc. Class A Business Overview & Revenue Model
Company Description
Chime Financial, Inc., a financial technology company, provides digital consumer banking and payment solutions in the United States and internationally. The company offers various products, such as spending, including checking accounts, debit card...
How the Company Makes Money
Chime primarily makes money from interchange revenue generated when customers use a Chime-branded debit card for purchases. In a typical debit-card model, the merchant’s bank pays an interchange fee that is shared among the payment network, the ca...
Chime Financial, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a strong set of operational and financial results: robust member growth, double-digit revenue growth, margin expansion to profitability, significant product momentum (Chime Prime, Chime Invest), and scaled liquidity products with improving credit metrics. Management is investing in growth while capturing operating leverage, supported by a new $500M warehouse facility. Headwinds are manageable and largely strategic — a workforce reduction with associated charges, short-term elevated rewards costs tied to Prime, a planned modest uptick in loss rates as credit access expands, and a CFO transition. On balance, highlights materially outweigh lowlights, indicating positive momentum and confidence in sustainable growth.Positive Updates
Strong Member Growth
Active members grew 20% year-over-year, ending June with 10.4 million active members; net adds accelerated with ~200,000 net new actives quarter-over-quarter and ~1.7 million net adds over the last 12 months. Company now expects 1.8 million net new active members for 2026 (up from prior 1.4M goal).
Negative Updates
Restructuring and Workforce Reduction
Announced internal reorganization reducing workforce by ~10%. Q3 expects ~$16 million–$20 million of net cash restructuring charges and a $6 million–$9 million expected impact to net income after partially offsetting noncash reversals.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Member Growth
Active members grew 20% year-over-year, ending June with 10.4 million active members; net adds accelerated with ~200,000 net new actives quarter-over-quarter and ~1.7 million net adds over the last 12 months. Company now expects 1.8 million net new active members for 2026 (up from prior 1.4M goal).
Read all positive updates
Company Guidance
Chime raised its outlook, guiding Q3 revenue of $680–$690M (up 25–27% YoY) with adjusted EBITDA of $105–$110M (15–16% margin), and full‑year revenue of $2.725–$2.745B (up 25–26% YoY) with full‑year adjusted EBITDA of $465–$475M (17% margin) and incremental adjusted EBITDA margin north of 60% for 2026; the company also reiterated its 2026 net new active member target of ~1.8M, expects instant loans to exit Q3 at an annualized revenue run rate of >$100M, sees Q3 payments revenue net take rates pacing ~+2 bps YoY, plans to keep payroll costs flat versus 2026, and expects to recognize ~$16–$20M of net cash restructuring charges in Q3 (partially offset by a ~$9–$12M noncash SBC reversal) for an estimated net income impact of ~$6–$9M.Chime Financial, Inc. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
63
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.36B | 2.19B | 1.67B | 1.28B | 1.01B |
| Gross Profit | 2.06B | 1.88B | 1.47B | 1.06B | 794.15M |
| EBITDA | -5.95M | -979.11M | -36.83M | -222.85M | -471.40M |
| Net Income | -18.19M | -1.01B | -25.34M | -203.20M | -470.25M |
Balance Sheet | |||||
| Total Assets | 2.00B | 1.96B | 1.46B | 1.32B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.05B | 706.59M | 800.63M | 937.97M |
| Total Debt | 130.88M | 134.66M | 96.34M | 104.89M | 100.81M |
| Total Liabilities | 591.83M | 562.90M | 501.52M | 383.74M | 316.71M |
| Stockholders Equity | 1.40B | 1.40B | 959.52M | 936.51M | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 318.91M | 32.89M | 49.67M | -184.41M | -507.05M |
| Operating Cash Flow | 346.13M | 52.78M | 64.14M | -156.59M | -434.13M |
| Investing Cash Flow | -383.44M | -289.69M | 45.66M | 167.01M | 150.54M |
| Financing Cash Flow | -243.42M | 367.67M | 456.00K | 842.00K | 1.02M |
Chime Financial, Inc. Class A Technical Analysis
Neutral
33.76
Price Trends
29.37
Negative
24.09
Positive
23.49
Positive
Market Momentum
-1.04
Positive
34.34
Neutral
9.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHYM, the sentiment is Neutral. The current price of 33.76 is above the 20-day moving average (MA) of 30.85, above the 50-day MA of 29.37, and above the 200-day MA of 23.49, indicating a neutral trend. The MACD of -1.04 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 9.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHYM.
Chime Financial, Inc. Class A Risk Analysis
Chime Financial, Inc. Class A disclosed 62 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 1 New Risks
1.
We rely on a variety of funding sources to support our business model. If our existing funding arrangements are not renewed or replaced or our existing funding sources are unwilling or unable to provide funding to us on terms acceptable to us, or at all, it could have a material adverse effect on our business, results of operations, financial condition, cash flows, and future prospects. Q2, 2026
Chime Financial, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.49B | 8.87 | 20.58% | 0.28% | 1.95% | 6.07% | |
70 Outperform | $4.91B | 10.00 | 16.41% | ― | 12.54% | 13.67% | |
69 Neutral | $1.98B | 8.94 | 32.32% | ― | 2.65% | 13.98% | |
68 Neutral | $2.52B | 8.72 | 13.57% | ― | 11.55% | 103.48% | |
63 Neutral | $10.04B | -469.84 | -1.28% | ― | 17.51% | 98.06% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
CHYM
Chime Financial, Inc. Class A
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6.64
33.20%
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Chime Financial, Inc. Class A Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Chime to Acquire Stride Bank Parent, Transforming Model
Positive
Sep 8, 2026
On September 8, 2026, Chime entered into a $590 million cash agreement to acquire Stride Bank’s parent, Central Service Corporation, turning long‑time partner Stride into Chime Bank, N.A. as a wholly owned subsidiary. The deal, unanimo...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Chime Financial announces workforce restructuring amid strong growth
Positive
Aug 5, 2026
On July 31, 2026, Chime committed to a reorganization plan that will cut about 10% of its workforce to better align personnel with strategic priorities and boost efficiency. The company expects $16 million to $20 million in net cash restructuring ...
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.