Chime Financial Inc. (NASDAQ:CHYM) reported fourth-quarter and full-year 2025 financial results that exceeded analyst expectations on the top line, while its bottom-line loss was narrower than feared. The digital banking platform also issued an optimistic outlook for 2026, forecasting its first full year of GAAP profitability.
Earnings and Revenue vs. Estimates
The company’s performance for the quarter ended December 31, 2025, surpassed Wall Street’s forecasts on key metrics.
- Revenue: Chime reported Q4 revenue of $596.4 million, a 25% increase year-over-year. This figure came in above the analyst consensus estimate of approximately $589.6 million.
- Earnings Per Share (EPS): The company posted a net loss of $44.8 million, or a loss of $0.12 per share. This result was better than the estimated loss of $0.16 per share anticipated by analysts.
For the full year 2025, revenue grew 31% to $2.19 billion, also exceeding the company’s own guidance. The net loss for the year was $1.01 billion, which the company attributed primarily to $928 million in stock-based compensation expense related to its initial public offering in the second quarter.
Market Reaction and Price Action
The market responded positively to the earnings beat and forward guidance. Following the report, Chime’s stock rose approximately 7.5% in after-hours trading. This positive move suggests investors were encouraged by the stronger-than-expected revenue growth, improving margins, and the clear path to profitability outlined by management.
The after-hours gain stands in contrast to the stock’s recent performance, which had seen a decline of about 20.7% over the past month, potentially reflecting market uncertainty ahead of the earnings release.
Key Highlights from the Report
Beyond the headline numbers, Chime’s report highlighted several areas of operational strength and strategic progress:
- Strong Member Growth: Active Members grew 19% year-over-year to 9.5 million, adding approximately 500,000 net new members in Q4 alone.
- Platform Expansion: Platform-related revenue, which includes newer products like the MyPay earned wage access feature, grew 47% year-over-year in Q4, indicating successful diversification beyond core payments.
- Margin Improvement: Adjusted EBITDA margin reached 10% in Q4, a significant 12 percentage point improvement from the prior year. Gross margins remained exceptionally high at 89%.
- Technology Milestone: The company completed its migration to its proprietary technology platform, ChimeCore, which it expects to reduce transaction processing costs by an estimated 60% and accelerate product development.
Forward Outlook vs. Analyst Expectations
Management provided guidance for both the first quarter and full year 2026 that signals accelerating profitability.
- Q1 2026 Outlook: Chime expects revenue between $627 million and $637 million (21-23% growth) and Adjusted EBITDA between $90 million and $95 million.
- Full Year 2026 Outlook: The company forecasts revenue between $2.63 billion and $2.67 billion (20-22% growth) and Adjusted EBITDA between $380 million and $400 million.
Crucially, Chime stated it expects 2026 to be its first full year of GAAP net income profitability, ahead of previous internal expectations. The company’s revenue guidance for the full year aligns closely with the analyst sales estimate of $2.665 billion. The projected Adjusted EBITDA margin of 14-15% represents a substantial step up from the 6% margin achieved in 2025.
For a detailed breakdown of future earnings estimates and historical performance, you can review more data on Chime’s earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
