Chime Financial (NASDAQ:CHYM) Posts Earnings Results, Beats Estimates By $0.02 EPS

Chime Financial (NASDAQ:CHYM) announced its quarterly earnings data on Wednesday. The company reported $0.11 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.02, FiscalAI reports. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The company had revenue of $718.00 million for the quarter.

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 Stock Performance

Shares of CHYM stock traded up $1.67 during trading hours on Wednesday, reaching $29.87. The company had a trading volume of 4,979,400 shares, compared to its average volume of 5,323,771. The company has a market capitalization of $11.31 billion, a P/E ratio of -426.65 and a beta of 0.74. The stock’s fifty day simple moving average is $30.10 and its 200 day simple moving average is $23.83. Chime Financial has a twelve month low of $15.88 and a twelve month high of $35.55.

Insider Buying and Selling

In other news, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $32.66, for a total transaction of $145,538,087.62. Following the completion of 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 18,879,108 shares of company stock valued at $619,377,638 over the last ninety days. Corporate insiders own 12.30% of the company’s stock.

Hedge Funds Weigh In On Chime Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of CHYM. M&G PLC bought a new stake in Chime Financial in the third quarter worth approximately $12,014,000. AlphaCore Capital LLC bought a new stake in shares of Chime Financial in the third quarter valued at approximately $253,000. Fulcrum Asset Management LLP acquired a new stake in Chime Financial in the 3rd quarter worth $592,000. Brighton Jones LLC bought a new position in Chime Financial during the third quarter valued at about $1,088,000. Finally, CenterBook Partners LP bought a new stake in shares of Chime Financial during the third quarter valued at approximately $576,000.

Analysts Set New Price Targets

Several brokerages have recently weighed in on CHYM. UBS Group increased their target price on shares of Chime Financial from $28.00 to $31.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 9th. 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 report on Thursday, August 6th. Wolfe Research boosted their price target on Chime Financial from $32.00 to $38.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 25th. Wall Street Zen upgraded Chime Financial from a “hold” rating to a “buy” rating in a report on Saturday, July 25th. Finally, Barclays upped their target price on Chime Financial from $33.00 to $40.00 and gave the company an “overweight” rating in a report on Wednesday, September 9th. Three analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Chime Financial presently has a consensus rating of “Moderate Buy” and an average price target of $38.42.

About Chime Financial

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.