Chime Financial (NASDAQ:CHYM) Issues Earnings Results

Chime Financial (NASDAQ:CHYM) posted its earnings results on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.02, FiscalAI reports. The firm had revenue of $718.00 million during the quarter. Chime Financial had a return on equity of 6.87% and a net margin of 3.05%. The firm’s revenue was up 32.1% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.15) earnings per share.

Here are the key takeaways from Chime Financial’s conference call:

• Q3 revenue rose 32% year over year to $718 million, while adjusted EBITDA increased to $137 million, or a 19% margin; Chime also reported $44 million in GAAP net income, its third consecutive profitable quarter.
• Active members grew 20% to 10.9 million, and ARPAM rose 10% to $270. Chime said Prime members generate more than twice the ARPAM of the average active member, while acquisition costs fell and lifetime value-to-CAC approached 10x.
• Lending growth accelerated: MyPay originated $5.3 billion in Q3, with losses near its 1% target, while Instant Loans reached $381 million in originations and more than $115 million in annualized revenue. Management noted that Instant Loan losses are higher for first-time borrowers, though repeat-borrower loss rates are up to 50% lower.
• Chime raised its Q4 outlook to $757 million–$767 million in revenue and $161 million–$166 million in adjusted EBITDA, and said it expects faster growth and greater profitability in coming years.
• The proposed Stride Bank acquisition is expected to close in the first half of 2027, subject to regulatory approval; Chime expects more than $100 million in annual net after-tax synergies and earnings accretion from close, with full synergies targeted within 12–18 months post-close.

Chime Financial Trading Up 5.0%

Shares of CHYM stock traded up $1.51 on Friday, hitting $31.69. 3,011,666 shares of the stock were exchanged, compared to its average volume of 5,325,483. The firm has a market capitalization of $12.00 billion, a P/E ratio of 166.74 and a beta of 0.74. The business has a 50-day moving average of $29.98 and a 200 day moving average of $23.87. Chime Financial has a fifty-two week low of $15.88 and a fifty-two week high of $35.55.

Insider Activity

In related news, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of Chime Financial stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $32.66, for a total value of $145,538,087.62. Following the sale, the insider owned 405,663 shares of the company’s stock, valued at approximately $13,248,953.58. This trade represents a 91.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold 16,432,912 shares of company stock worth $541,335,425 in the last ninety days. 12.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Chime Financial

Several hedge funds have recently made changes to their positions in CHYM. AMS Capital Ltda bought a new stake in shares of Chime Financial during the 1st quarter worth approximately $3,439,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Chime Financial by 2,720.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company’s stock valued at $51,630,000 after buying an additional 2,658,816 shares in the last quarter. Arizona State Retirement System bought a new position in shares of Chime Financial in the second quarter valued at $692,000. Hsbc Holdings PLC bought a new position in shares of Chime Financial in the fourth quarter valued at $1,274,000. Finally, Penn Mutual Asset Management acquired a new position in Chime Financial during the third quarter worth $6,711,000.

Key Stories Impacting Chime Financial

Here are the key news stories impacting Chime Financial this week:

• Positive Sentiment: Chime reported third-quarter revenue of $718 million, up 32.1% year over year, and EPS of $0.11 versus the $0.09 consensus. The company returned to profitability compared with a loss a year earlier, with reports highlighting lending growth and a third consecutive GAAP-profitable quarter. Reuters
• Positive Sentiment: Management raised its annual revenue forecast and expects fourth-quarter revenue of $757 million to $767 million, indicating continued demand. Chime is targeting completion of its Stride acquisition in the first half of 2027. Seeking Alpha
• Positive Sentiment: Several firms raised their price targets: JPMorgan lifted its target from $35 to $40 and maintained an overweight rating; Goldman Sachs raised its target from $38 to $43 and kept a buy rating; and Scotiabank raised its target from $42 to $44 with a sector outperform rating. JPMorgan rating information
• Neutral Sentiment: UBS raised its price target from $31 to $34 but retained a neutral rating, suggesting a more cautious view than the other recent analyst calls. UBS rating information

Wall Street Analysts Forecast Growth

CHYM has been the subject of several research analyst reports. Zacks Research upgraded Chime Financial from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 18th. Weiss Ratings upgraded shares of Chime Financial from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, September 3rd. Wolfe Research raised their target price on shares of Chime Financial from $32.00 to $38.00 and gave the stock an “outperform” rating in a report on Tuesday, August 25th. Keefe, Bruyette & Woods lifted their price target on shares of Chime Financial from $30.00 to $35.00 and gave the company an “outperform” rating in a research note on Thursday, August 6th. Finally, Raymond James Financial set a $35.00 price target on shares of Chime Financial in a report on Thursday, October 8th. Three analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Chime Financial currently has an average rating of “Moderate Buy” and an average target price of $39.47.

Chime Financial Company Profile

Chime Financial, Inc is a financial technology company that provides digital banking services through its Chime platform. The company offers consumer-focused spending, saving and credit products designed to be accessed primarily through mobile applications rather than traditional branch locations.

Chime’s products include spending accounts with debit cards, savings accounts, direct-deposit services, early access to qualifying paychecks, fee-free overdraft protection through SpotMe, and credit-building products.