Stock Track | Chime Financial Soars 6.10% in After-Hours Trading on Q2 Earnings Beat and Raised Guidance

Stock Track04:43

Chime Financial, Inc. (CHYM) shares surged 6.10% in after-hours trading on Wednesday, following the release of second-quarter financial results that exceeded analyst expectations and an upward revision to its full-year outlook.

The fintech company reported earnings per share of $0.07, handily beating the consensus estimate of a breakeven quarter. Revenue jumped 27% year-over-year to $669.77 million, surpassing the $640.41 million forecast. The results were driven by a 20% increase in active members to 10.4 million and a 6% rise in average revenue per active member to $260, fueled by the launch of the Chime Prime membership tier and higher engagement from upper-income customers.

Chime also raised its full-year 2026 revenue guidance to a range of $2.73 billion to $2.75 billion, representing 25% to 26% growth and topping the consensus estimate of $2.68 billion. The company expects adjusted EBITDA between $465 million and $475 million. For the third quarter, revenue is projected at $680 million to $690 million, also above Wall Street expectations. The strong results and optimistic outlook underscored the company's momentum in digital banking and cost-efficiency initiatives, including a recently announced 10% workforce reduction.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment