CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Chime Financial's Q3 revenue beats after adding record number of new members

By Reuters News


Overview

  • US fintech firm's Q3 revenue rose 32% yr/yr, beating analyst expectations

  • Company achieved third straight quarter of GAAP profitability with net income of $44 mln

  • Income from operations for Q3 missed analyst estimates


Outlook

  • Chime raises Q4 revenue outlook to $757 mln-$767 mln, up 27%-29% year over year

  • Company lifts full-year 2026 revenue forecast to $2.792 bln-$2.802 bln, up 28%

  • Chime expects Q4 adjusted EBITDA of $161 mln-$166 mln, margin 21%-22%


Result Drivers

  • MEMBER GROWTH - Co said record net additions of 1.8 mln Active Members over the past year and 500,000 quarter-over-quarter in Q3 supported revenue growth

  • PLATFORM REVENUE - Scaling of MyPay and Instant Loans drove 52% yr/yr growth in platform-related revenue, per co

  • CHIME PRIME IMPACT - Co said growth in Prime members, who generate more than double the ARPAM of average Active Members, deepened account relationships and lifted credit to 29% of purchase volume


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$718.001 mln

$700.46 mln (19 Analysts)

Q3 Net Income

$43.72 mln

Q3 Income from Operations

Miss

$34.32 mln

$46.81 mln (12 Analysts)

Q3 Gross Profit

$646.07 mln

Q3 Pretax Profit

$43.97 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for Chime Financial, Inc. is $40.00, about 41.8% above its November 3 closing price of $28.20

  • The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 41 three months ago


Reuters Recommended Reads

  • Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 4 - Revolut's rise to become Europe's $115 billion big bank rival


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.