Digital banking company Chime has increased its full-year revenue forecast for 2025, signaling strong confidence driven by a significant surge in active users and resilient consumer spending. The announcement, which surpassed analyst expectations, prompted a 4% rise in the company's shares during after-hours trading.
The fintech firm now anticipates full-year revenue to be between $2.163 billion and $2.173 billion, an upward revision from its earlier projection. This growth is underpinned by a 21% year-over-year increase in its active member base, which has now reached 9.1 million.
Key Takeaways
- Chime increased its 2025 revenue forecast to a range of $2.163 billion to $2.173 billion, exceeding analyst estimates.
- The company's active user base grew by 21% year-over-year to 9.1 million members.
- Third-quarter revenue rose 29% to $544 million, with purchase volume increasing 15% to $32.3 billion.
- A new $200 million share repurchase program was also announced, signaling confidence to investors.
Upgraded Outlook Follows Strong Quarter
Chime's revised financial outlook comes on the heels of a robust third quarter. The company reported revenue of $544 million for the three months ending September 30, a 29% increase compared to the same period last year.
This performance was fueled by a substantial rise in customer activity. Purchase volume on the platform climbed 15% year-over-year, reaching $32.3 billion in the third quarter. The updated full-year forecast of up to $2.173 billion is notably higher than the previous range of $2.135 billion to $2.155 billion and surpasses the average analyst expectation of $2.15 billion.
Looking ahead, the company also provided an optimistic projection for the current quarter, forecasting revenue between $572 million and $582 million. This figure is also above Wall Street's consensus estimate of $569.6 million.
Customer Growth and Spending Resilience
A key driver of Chime's success is its expanding customer base, which has grown to 9.1 million active members. The company has carved out a niche by appealing to younger and underserved consumers who are often overlooked by traditional financial institutions.
Chime's model, which emphasizes low fees and user-friendly digital services, has proven effective in attracting this demographic. According to company officials, this customer base exhibits consistent spending patterns, providing a stable revenue stream.
Focus on Essential Spending
Chime's business model is centered on payments and debit transactions rather than credit or loans. This strategy targets Americans who may have limited credit histories and rely more on debit cards for their daily financial needs. This focus has proven to be a strategic advantage, as spending on essentials is less susceptible to economic downturns.
Chime's Chief Financial Officer, Matt Newcomb, highlighted the stability of this spending. "Our members do 70% of their spend on everyday essential purchases. This is very resilient spend. It's consistent spend. It holds up even in tougher times," he noted.
Newcomb also stated that the company is not currently observing any signs of credit stress or a significant pullback in consumer spending within its ecosystem.
Navigating the Competitive Fintech Market
Chime operates in an increasingly crowded market. Traditional banks are investing heavily in their own digital platforms, while numerous other fintech companies are competing for the same customers. Despite this intense competition, Chime's leadership remains confident in its market position.
"We feel really good about our position in the competitive landscape. We're delivering more value to everyday, mainstream Americans than what you get at a traditional bank by far."
- Matt Newcomb, Chief Financial Officer, Chime
The company's strategy of providing transparent, low-cost banking services continues to resonate with its target audience. By focusing on the core needs of everyday consumers, Chime has built a loyal following that powers its financial growth.
By the Numbers: Chime's Q3 Performance
- Active Members: 9.1 million (up 21% YoY)
- Total Revenue: $544 million (up 29% YoY)
- Purchase Volume: $32.3 billion (up 15% YoY)
Shareholder Confidence and Future Plans
In a move that reflects its strong financial position and positive outlook, Chime's board also authorized a $200 million share repurchase program. Share buybacks are often used by companies to return capital to shareholders and can signal that management believes its stock is undervalued.
This, combined with the upgraded revenue forecast, sends a strong message of stability and confidence to investors. As digital banking continues to gain mainstream acceptance, Chime's performance suggests it is well-positioned to capitalize on the ongoing shift in consumer financial habits.
