Chime lifts 2025 revenue outlook as more customers turn to digital banks
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
Chime raised its full-year revenue forecast above Wall Street estimates on Wednesday, as demand for its digital banking services kept growing, sending shares up 4 per cent in extended trading.
Companies like Chime have led fintechs' push into traditional banking by offering faster digital services, lower fees and more transparent, easy-to-use products that appeal to younger and underserved customers.
Competition remains intense as legacy lenders expand digital offerings and fintechs vie for the same customers.
"We feel really good about our position in the competitive landscape," Chime's chief financial officer Matt Newcomb told Reuters in an interview. "We're delivering more value to everyday, mainstream Americans than what you get at a traditional bank by far."
Chime now expects full-year revenue in the range of $2.163 billion to $2.173 billion up from its prior forecast of $2.135 billion to $2.155 billion. Analysts on average had expected $2.15 billion, according to estimates compiled by LSEG.
Purchase volume increased 15 per cent year-over-year to $32.3 billion in the third quarter, while active members grew 21 per cent to 9.1 million.
The results underscore resilient U.S. consumer spending, with customers relying on debit cards for groceries, gas and bills, which has helped keep the payments sector on strong footing.
"We're not seeing signs of a pullback," Newcomb said, adding that the company has also not seen signs of credit stress within its ecosystem.
"Our members do 70 per cent of their spend on everyday essential purchases. This is very resilient spend. It's consistent spend. It holds up even in tougher times."
Chime's revenue rose 29 per cent to $544 million in the three months ended September 30, compared with a year earlier.
The company says its banking model focuses on payments and aims to serve Americans who often have limited credit histories and rely more on debit spending than on credit or loans.
Chime expects current-quarter revenue between $572 million and $582 million above Wall Street expectations of $569.6 million.
It also announced a $200 million share repurchase program.
