Chime beats revenue estimates in first earnings since blowout US IPO
FILE PHOTO: A screen displays the company logo for Chime, a financial technology company, during the company's IPO at the Nasdaq MarketSite in New York City, U.S., June 12, 2025. REUTERS/Kylie Cooper/File Photo
Chime beat Wall Street estimates for second-quarter revenue on Thursday, driven by strong demand for its digital banking and financial services, in its first results following a blockbuster U.S. listing.
Younger customers in the U.S., disillusioned with fees and limited flexibility at large banks, have increasingly turned to digital-first startups that offer low-cost banking, early direct deposits and higher-yield savings accounts.
Chime's revenue rose 37 per cent to $528 million in the three months ended June 30. Analysts on average had expected $495.2 million, according to estimates compiled by LSEG.
The company went public in June in a blockbuster U.S. initial public offering that raised hopes of a lasting rebound in investor demand for high-growth tech listings. The stock is up 25 per cent from its IPO price.
Its shares were last down marginally in volatile after-market trading.
"This was a breakout first quarter as a public company for Chime, driven by accelerating year-over-year growth, expanding margins, and continued product execution," Co-founder and CEO Chris Britt said.
Average revenue per active member grew 12 per cent to $245 in the quarter, the company said.
Chime offers a suite of no-fee financial products through its bank partners, including a secured credit card to help users build credit, short-term liquidity tools like early pay access and small-dollar loans, and a deposit sweep program that distributes funds across regional banks.
The company says its payments-based banking model is better suited to serve everyday Americans, who often have limited credit histories and rely more heavily on debit transactions than traditional lending products.
Purchase volume - the total dollar value of transactions using Chime-branded debit or credit cards - rose 18 per cent in the quarter to $32.4 billion.
The rise in volume underscores resilience in consumer spending, with users continuing to rely on debit cards for everyday expenses such as groceries, gas and bills - a trend that has held firm despite broader economic uncertainty.
Gross profit came in at $461 million in the quarter versus $333.7 million, a year earlier.
