Chime opens at $43 in Nasdaq debut after pricing IPO above expected range
Chime opened at $43 in its Nasdaq debut on Thursday after selling shares at $27 each in an IPO that valued the online banking company at $11.6 billion.
Late Wednesday, Chime raised about $700 million in its offering, and existing investors sold an additional $165 million worth of shares. The stock is trading under the ticker symbol CHYM.
Chime's IPO, from a valuation perspective, represents a big step down from where venture investors like Sequoia Capital valued the company in its last fundraising round in 2021, when private tech markets were raging. The valuation at the time was $25 billion.
Still, Chime's offering is the latest sign that the fintech IPO market is opening up after a multi-year freeze brought on by rising interest rates and valuation resets. Recent debuts from eToro and crypto company Circle have rekindled optimism in the sector, with both stocks seeing strong initial pops.
Chime reported $518.7 million in revenue for the most recent quarter, a 32% increase from a year earlier. Net income narrowed slightly to $12.9 million, down from $15.9 million in the same period last year.
CEO Chris Britt said Chime has built a loyal user base by serving Americans earning $100,000 a year or less, a group often overlooked by traditional banks.
"Two-thirds of our customer base use us as their direct deposit account and primary account relationship," Britt told CNBC's David Faber. "We help our members avoid fees, get access to short-term liquidity, build their credit and build their savings — and it's that combination of services that really resonates and matters most to the everyday consumer."
Britt said the company reached $25 million in adjusted profitability in the first quarter and has improved its adjusted profit margin by 40 points over the past two years.
The company's top institutional shareholders are DST Global and Crosslink Capital. Iconiq was one of the firms that invested six years ago, when Chime raised money at a $1.5 billion valuation.
"We first invested in Chime in 2019 and continued to invest through subsequent rounds because of their singular, unwavering focus on serving everyday Americans — and the trust they've built with that core customer base," Yoonkee Sull, general partner at Iconiq, said in an interview.
The average Chime customer completes more than 55 transactions per month using the Chime card and interacts with the app four to five times a day. Active member growth rose 23% in the first quarter from a year earlier, Britt said, with 8.6 million monthly active users and an increasing number turning to Chime to serve as their primary banking relationship.
Customer acquisition doesn't come cheap. Chime disclosed in its prospectus that it spent $1.4 billion on marketing between 2022 and 2024. Britt said the retention rate is above 90% once users set up direct deposit.
"Sometimes for people, it takes a change in life — a change in their career, a job change — to be the point in time when they actually make the switch and use us as a primary bank account," he said.
The company's core revenue comes from interchange fees, the charges merchants pay when consumers swipe Chime-issued debit or credit cards. Britt said 72% of Chime's revenue is payments-driven, versus traditional banks that rely heavily on fees from overdrafts and minimum balances.
"It's pretty simplistic," said Dan Dolev, an analyst at Mizuho. "I'm actually surprised by how unsophisticated that business model is."
Chime's performance in the public markets may set the tone for what comes next. Several other fintech players, including Klarna, Gemini, and Bullish, have already filed for IPOs publicly or confidentially.
"If it goes well — and you'll know that in the next two to three months — I think you'll see much more receptivity" from other companies in the pipeline, said David Golden, partner at Revolution Ventures and former head of tech investment banking at JPMorgan Chase.
"If it doesn't go well," Golden added, "I think they'll continue just to sit on their hands and wait it out."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Phoenix Star Insurance Agency Partners with Integrity to Transform Access to Medicare Coverage in Underserved Communities
Service and growth opportunities abound for multilingual agency as it leverages Integrity's advanced technology, compliance support and innovative resources DALLAS, June 13, 2025 /PRNewswire/ -- Integrity, LLC ("Integrity"), a leading distributor of life and health insurance, and provider of wealth management and retirement planning solutions, today announced it has partnered with Phoenix Star Insurance Agency, an independent marketing organization based in Garden Grove, California, and led by Allan Ly and Cindy Kien. Financial details of the partnership were not disclosed. "Allan and Cindy have a deep-rooted passion for making a meaningful difference in the lives of others, especially those in underserved communities," said Bryan W. Adams, Co-Founder and CEO of Integrity. "Integrity is equally focused on improving lives by helping more Americans from all walks of life access the insurance and retirement planning solutions they truly need. As an Integrity partner, Phoenix Star Insurance Agency can streamline its operations, expand its reach and continue delivering the highest quality of service to diverse communities, especially through their multilingual offerings. It's an honor to partner with dedicated professionals whose work is a reflection of their compassion and core values. We couldn't be more excited about the future we're building together!" As first-generation Vietnamese immigrants, Ly and Kien bring a profound affinity and appreciation for the diverse communities they serve. The agency's multilingual team specializes in delivering Medicare products to the dual-eligible market, offering deep expertise and efficient service to clients across 20 states. The unwavering support and guidance Ly and Kien provide to Phoenix Star agents through mentorship programs and ongoing training has led to increased success rates and notably low attrition. Phoenix Star Insurance Agency is also a dedicated contributor to community programs that offer support, guidance and education to immigrants and families. "At Phoenix Star Insurance Agency, we are building up our local community by bringing services specifically to overlooked and underserved populations," explained Allan Ly, CEO of Phoenix Star Insurance Agency. "Our hard-working agents speak a total of 21 languages and are committed to connecting our clients with the right health insurance to significantly impact their quality of life. Partnering with Integrity offers us cutting-edge technology, essential compliance resources and pivotal support services that will make a real impact on our agents' workflow. Every part of Integrity is designed to help us best use our resources and optimize our processes, empowering us to serve even more people. I'm proud to become part of the Integrity family and can't wait for the evolution and experiences ahead." "Many members of our diverse team can closely relate to the challenges — and opportunities — their clients are experiencing," explained Cindy Kien, CFO of Phoenix Star Insurance Agency. "Our unique perspective means we know how to properly support both agents and clients, while treating everyone we serve with the utmost respect. Integrity shows that same commitment in the way it values its partners, employees, agents and clients, which makes this partnership a perfect alignment of goals and values. We can now leverage the Integrity platform to further develop our agents, expand our impact and manage our book of business more effectively. We're excited for what this partnership holds, and we look forward to improving the lives of countless families together." Developed by forward-thinking experts, Integrity's technology platform facilitates stronger client relationships through efficient processes and proprietary resources. Agents gain access to a consolidated overview of policies with instantaneous quoting and enrollment features and streamlined plan management. This technology fully integrates with Ask IntegrityⓇ, an AI-powered, voice-activated solution that creates personalized connections through in-the-moment prompts, coverage recommendations and policy lifecycle reminders. Integrity partners can also utilize exceptional resources to guide their growth, including access to powerful data and analytics, impactful leadership guidance and ongoing innovation. Integrity's broad-based collective of industry leaders are collaborating to expand access to insurance and financial services for all demographics. These trailblazers and icons are building solutions that facilitate more holistic life, health and wealth coverage and can benefit all consumers. By combining the best practices and world-class leadership experience of Integrity's partner network with its full-stack platform, agents and advisors are helping the individuals and families they serve better plan for the good days ahead. For more information about Phoenix Star Insurance Agency's decision to partner with Integrity, view a video at About IntegrityIntegrity, headquartered in Dallas, Texas, is a leading distributor of life and health insurance, and provider of innovative solutions for wealth management and retirement planning. Through its broad partner network of agents and advisors, Integrity helps millions of Americans protect their life, health and wealth with a commitment to meet them wherever they are — in person, over the phone and online. Integrity's proprietary, cutting-edge technology helps expand the insurance and financial planning experience for all stakeholders using an omnichannel approach. In addition, Integrity develops products with carrier partners and markets them compliantly through its nationwide distribution network. Providing best-in-class service to their clients and consumers is at the center of Integrity's holistic approach to life, health and wealth protection. The company and its partners focus on helping families and individuals prepare for the good days ahead, so they can make the most of what life brings. The recipient of nationally ranked business awards, including Newsweek's America's Greatest Workplaces, Inc.'s Power Partner, and Business Intelligence Group's AI Excellence Award, Integrity has also earned impressive employee sentiment awards such as Best Company for Career Growth, Best Company Leadership, Best Company Culture, and Best Company Happiness. For more information, visit About Phoenix Star Insurance AgencyPhoenix Star Insurance Agency is headquartered in Garden Grove, California, and has specialized in helping clients navigate Medicare since 2009. The agency is known and respected for its focus on providing personalized solutions that meet the unique needs of individuals. In addition, Phoenix Star agents and staff are continually trained to help ensure clients receive reliable coverage and trusted support. With access to an extensive array of insurance carriers and plans, Phoenix Star can tailor solutions to the diverse needs of each client and help them maximize the benefits they've earned. View original content to download multimedia: SOURCE Integrity Marketing Group, LLC Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
Baby Boomers' Luck Is Running Out
The Atlantic Daily, a newsletter that guides you through the biggest stories of the day, helps you discover new ideas, and recommends the best in culture. Sign up for it here. At the core of every joke about Baby Boomers lies a seed of jealousy. Unlike younger generations, they have largely been able to walk a straightforward path toward prosperity, security, and power. They were born in an era of unprecedented economic growth and stability. College was affordable, and they graduated in a thriving job market. They were the first generation to reap the full benefits of a golden age of medical innovations: birth control, robotic surgery, the mapping of the human genome, effective cancer treatments, Ozempic. But recent policy changes are poised to make life significantly harder for Baby Boomers. 'If you're in your 60s or 70s, what the Trump administration has done means more insecurity for your assets in your 401(k), more insecurity about sources of long-term care, and, for the first time, insecurity about your Social Security benefits,' Teresa Ghilarducci, a labor economist at the New School, told me. 'It's a triple threat.' After more than half a century of aging into political and economic trends that worked to their benefit, the generation has become particularly vulnerable at exactly the wrong moment in history. Perhaps the biggest threat to Boomers in the second Trump administration is an overhaul of Social Security, which provides benefits to nearly nine out of 10 Americans ages 65 and older. In an emailed statement, Social Security Commissioner Frank Bisignano wrote, 'I am fully committed to upholding President Trump's promise to protect and strengthen Social Security. Beneficiaries can be confident that their benefits are secure.' But in February, DOGE announced plans to cut Social Security staff by about 12 percent and close six of its 10 regional offices; a quarter of the agency's IT staff has quit or been fired. Social Security's long-term outlook was already troubled before Trump, and these drastic reductions make the understaffed agency even less equipped to support those who rely on it. Shutting down field offices means seniors can't get help in person; less staffing means longer wait times when they call and more frequent website crashes. 'When you add hurdles, or cause a slowdown in terms of processing claims, you see losses in terms of benefits,' Monique Morrissey, a senior economist at the Economic Policy Institute, told me. In fact, shutdowns of field offices during the first two years of the coronavirus pandemic corresponded with decreased enrollment in both Social Security and Social Security Disability Insurance, which is available to Americans under 65 who can no longer work for physical or mental reasons. Social Security cuts will most hurt low-income Boomers, who are the likeliest to rely on benefits to cover their whole cost of living. But even those with more financial assets may depend on Social Security as a safety net. 'It's important to understand that many seniors, even upper-income seniors, are just one shock away from falling into poverty,' says Nancy J. Altman, the president of Social Security Works, an organization that advocates for expanding the program. As a whole, seniors have more medical needs and less income than the general population, so they're much more financially vulnerable. If you're comfortably middle-class in your early 60s, at the height of your earning potential, that's no guarantee that you'll remain comfortably middle-class into your 70s. In the next few years, Boomers who face more medical bills as they stop working might find, for the first time in their life, that they can't easily afford them. Middle-income seniors are also likely to feel the impact of a volatile market. 'They tend to have modest investments and fixed incomes rather than equities, so the type of wealth that will erode over a high-inflation period,' Laura D. Quinby, who studies benefits and labor markets at the Center for Retirement Research at Boston College, told me. After Trump announced 10 percent tariffs on all imported goods in April, the three major stock indexes dropped 4 percent or more. They've since recovered, but the erratic market—whipped around by Trump's shifting proclamations about tariffs—scares many middle-class Boomers, who are watching their retirement savings shrink. In the near future, older Americans might find themselves paying more for medical care too. Trump's 'big, beautiful bill,' which has passed in the House but awaits a vote in the Senate, would substantially limit Medicare access for many documented immigrants, including seniors who have paid taxes in the United States for years. The bill would also reduce Medicaid enrollment by about 10.3 million people. Although Medicaid is for people with limited incomes of all ages, it supports many older Americans and pays for more than half of long-term care in the U.S. Most seniors require some sort of nursing home or at-home medical care; one study found that 70 percent of adults who live to 65 will require long-term services and support. [Read: The GOP's new Medicaid denialism ] That support may soon be not only more expensive, but harder to come by. The long-term-care workforce is disproportionately made up of immigrants, so the Trump administration's immigration crackdown is likely to reduce the number of people available to take care of seniors—and increase how much it costs to hire them. 'If you have no money, you'll be on Medicaid in a nursing home, and that's that. But if you're trying to avoid that fate, you're now going to run through your money more quickly and be more vulnerable,' Morrissey said. Seniors with some financial security are more likely to live long enough to contend with the diseases of old age, such as Alzheimer's and dementia. The Trump administration has cut funding for promising research on these diseases. 'Going forward, you'll find less treatments reaching fruition,' Thomas Grabowski, who directs the Memory and Brain Wellness Center at the University of Washington, told me. For now, the UW Memory and Brain Wellness Center, where Grabowski works on therapies for Alzheimer's, has stopped bringing in new participants; as time goes on, he said, they'll have to tighten more. (Kush Desai, a White House spokesperson, told me in an email that the cuts to research funded by the National Institutes of Health are 'better positioning' the agency 'to deliver on medical breakthroughs that actually improve Americans' health and wellbeing.') Changes at the UW Memory and Brain Wellness Center could have dramatic effects on current patients, including Bob Pringle, a 76-year-old who lives in Woodinville, Washington. In April, he started getting infusions of donanemab, an anti-amyloid medication approved by the FDA last year. The drug doesn't cure Alzheimer's; it's designed to slow the disease's progression, though the utility of donanemab and other Alzheimer's drugs remains controversial among experts. Pringle, for one, has found donanemab helpful. 'With the medication, my decline is a gentle slope, rather than a rapid decline,' says Pringle, whose mother died of Alzheimer's and whose sister lives in a memory-care facility. 'You're always hopeful that somebody with a bigger brain than you have is working on a cure, and the medication gives us some time until then,' Bob's wife and caretaker, Tina Pringle, told me. 'But right now, because of the funding cuts, our outlook is grim.' [Read: The NIH's most reckless cuts yet] The unknowability of the future has always been a scary part of getting older. The enormous upheaval that the Trump administration has created will only magnify that uncertainty for Boomers. After a historical arc of good fortune, their golden generation has to contend with bad timing. Younger generations, including my own, shouldn't gloat, though: Cuts to Social Security and a halt to medical research could well worsen the experience of aging for generations to come. Younger Americans will likely grow old under challenging conditions too. Unlike the Boomers, we'll have plenty of time to get used to the idea. Article originally published at The Atlantic
Yahoo
17 minutes ago
- Yahoo
Consumer sentiment rose in June for 1st time this year as inflation remains stayed tame
WASHINGTON (AP) — Consumer sentiment increased in June for the first time in six months, the latest sign that Americans' views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade fight with China. The preliminary reading of the University of Michigan's closely watched consumer sentiment index, released Friday, jumped 16% to 60.5. The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20% compared with December 2024. 'Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,' Joanne Hsu, director of the survey, said in a written statement. 'However, consumers still perceive wide-ranging downside risks to the economy.' Americans have largely taken a darker view of the economy's future after President Donald Trump unleashed a wide-ranging trade war, imposing steep tariffs on China, the European Union, and dozens of other countries. Yet in April Trump postponed a set of sweeping tariffs on about 60 nations and last month reached a temporary truce with China, after both sides had sharply ratcheted up tariffs on each other. U.S. duties remain elevated compared with historical levels, but so far they have not worsened overall inflation. Sign in to access your portfolio
