Latest news with #ChimeFinancial
Yahoo
19 hours ago
- Business
- Yahoo
Why Chime Financial Sank Today
Key Points Chime delivered strong revenue growth and positive EBITDA in its first earnings report. The company also guided to full-year numbers ahead of Wall Street expectations. Still, the stock sold off, as it had already climbed a lot following its June IPO. 10 stocks we like better than Chime Financial › Shares of fintech Chime Financial (NASDAQ: CHYM) fell on Friday, down 11.9% as of 12:00 PM EDT. Chime is a newly public fintech that had its initial public offering back on June 12. The stock garnered an enthusiastic response, jumping nearly 60% in its first few minutes of trading that day. But the stock has come off the boil since then, and while last night's earnings release showed impressive results, they weren't enough for investors that had already bid up the stock. Chime's first earnings report was strong In the second quarter, Chime saw revenue grow 37% to $528 million, including 19% payments revenue growth and 113% growth in platform-related revenue. Platform revenue comes from extra products and services Chime offers beyond its main transaction revenue, including financial management tools, access to liquidity, and ATMs. Chime did have a massive $923 million net loss, but that was due to a one-time stock-based compensation expense associated with its IPO. Absent that, Chime would have made a $5 million profit on $16 million of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Management also gave full-year guidance that was above analyst expectations, forecasting 2025 revenue between $2.135 billion and $2.155 billion and adjusted EBITDA between $84 million and $94 million, good for a 4% EBITDA margin. The consensus estimates for the year were for $2.105 billion and $71 million, respectively. But the impressive results weren't enough for Wall Street Basically, there wasn't too much wrong with Chime's earnings, except for the fact the stock had already rallied on the post-IPO enthusiasm. Even after today's drop, shares trade at 5 times this year's revenue guidance and over 110 times this year's EBITDA guidance. That's not a crazy valuation for a high-growth company, but it's also not exactly cheap. Chime will have to keep proving itself, it seems. That said, last night's earnings report was a strong start to Chime's public life. Should you buy stock in Chime Financial right now? Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Chime Financial Sank Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Chime Financial to Post Q2 Earnings: What's in Store for the Stock?
Chime Financial, Inc. CHYM is slated to release second-quarter 2025 results on Aug. 7, after market close. The quarterly results are likely to display year-over-year growth in revenues. In the last reported quarter, this consumer financial technology company reported average revenue per Active Member (ARPAM) of $251, up from $231 in the prior-year quarter. Results reflected a year-over-year rise in revenues. However, higher operating expenses in the quarter undermined the performance to an extent. In the past six months, shares of this Zacks Rank #3 (Hold) company have lost 11.5% compared with the industry's decline of 2.2%. Image Source: Zacks Investment Research Factors to Consider Ahead of CHYM's Q2 Results Chime Financial is a Fintech company that provides fee-free mobile banking services through two national banks, Stride Bank and The Bancorp Bank. The company is likely to have continued to benefit from the secular growth trends of the consumer financial technology industry in the second quarter. In contrast to the revenue model of traditional banks, which is primarily driven by net interest margins, CHYM employs an asset-light, payments-driven revenue model. The company generates most of its revenue through interchange-based fees charged to merchants when members, via the card networks, use Chime-branded debit and credit cards. CHYM's unique technology platform and its digital-first approach give them both a cost-to-serve advantage and increased innovation pace compared with traditional banks. This is expected to have granted an advantage in the to-be-reported quarter. These factors are likely to have helped it generate stable revenues during the second quarter. The consensus estimate for quarterly total revenues is pegged at $505.6 million, indicating an increase from the prior-year quarter's reported figure of $384.2 million. The Zacks Consensus Estimate for the quarterly earnings per share (EPS) is pegged at negative $4.14. Here's What Our Quantitative Model Predicts for CHYM Our proven model does not conclusively predict a surprise in terms of EPS for Chime Financial this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an EPS beat, which is not the case here. Chime Financial currently has an Earnings ESP of -33.25% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Stocks That Warrant a Look Here are two stocks from the Zacks Financial - Miscellaneous Services industry — StepStone Group STEP and Marex Group PLC MRX — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter. STEP, scheduled to report quarterly numbers on Aug. 7, currently has an Earnings ESP of +7.63% and a Zacks Rank of 3. Marex is slated to report quarterly numbers on Aug. 13. MRX has an Earnings ESP of +3.97% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marex Group PLC (MRX) : Free Stock Analysis Report StepStone Group Inc. (STEP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Bloomberg
3 days ago
- Business
- Bloomberg
Chime Beats Estimates in Inaugural Earnings as Public Company
Chime Financial Inc. reported earnings that topped Wall Street analyst estimates in the financial-technology company's first quarterly results as a public company. Chime's 8.7 million total active users slightly beat expectations of 8.64 million for the second quarter. Revenue for the three-month period totaled $528 million, above analysts' estimates of $502.9 million.
Bloomberg
4 days ago
- Business
- Bloomberg
JPMorgan's Private-Research Push Now Includes Fintech Firm Plaid
JPMorgan Chase & Co. is initiating coverage of fintech giant Plaid Inc., marking the bank's latest move to expand its research division to include private firms. Founded in 2013, Plaid builds the financial infrastructure that links consumer bank accounts to fintech platforms. Its back-end technology powers everything from budgeting apps to neobanks like Chime Financial Inc. Plaid was most recently valued at $6.1 billion after a funding round earlier this year.
Yahoo
5 days ago
- Business
- Yahoo
Discover 3 Growth Companies With Insider Ownership Up To 38%
As the U.S. stock market rebounds sharply from recent sell-offs, led by a tech sector rally, investors are keenly observing growth companies with strong insider ownership. In such a volatile environment, stocks with significant insider stakes can be appealing as they often indicate confidence in the company's future prospects and alignment of interests between insiders and shareholders. Top 10 Growth Companies With High Insider Ownership In The United States Name Insider Ownership Earnings Growth Victory Capital Holdings (VCTR) 10.1% 32.4% Super Micro Computer (SMCI) 13.9% 36.3% Prairie Operating (PROP) 34.4% 80.8% Niu Technologies (NIU) 37.2% 88.1% FTC Solar (FTCI) 23.1% 62.5% Credo Technology Group Holding (CRDO) 11.7% 36.4% Cloudflare (NET) 10.6% 45.8% Chemung Financial (CHMG) 19.9% 78.3% Atour Lifestyle Holdings (ATAT) 22.6% 23.5% Astera Labs (ALAB) 12.8% 45.6% Click here to see the full list of 180 stocks from our Fast Growing US Companies With High Insider Ownership screener. We're going to check out a few of the best picks from our screener tool. Chime Financial Simply Wall St Growth Rating: ★★★★☆☆ Overview: Chime Financial, Inc. is a financial technology company offering digital consumer banking and payment solutions with a market cap of $11.89 billion. Operations: Chime Financial generates its revenue primarily from Business Services, totaling $1.80 billion. Insider Ownership: 10.6% Chime Financial's recent IPO raised US$864 million, reflecting strong market interest. The company has been added to the NASDAQ Composite Index, enhancing its visibility. Despite a forecasted revenue growth of 16.9% annually, which surpasses the US market average, insider buying has occurred without substantial volumes recently. Chime's earnings are projected to grow significantly at 47.95% per year and it is expected to achieve profitability within three years, although return on equity remains low at 5.5%. Click here to discover the nuances of Chime Financial with our detailed analytical future growth report. Upon reviewing our latest valuation report, Chime Financial's share price might be too optimistic. Frontline Simply Wall St Growth Rating: ★★★★☆☆ Overview: Frontline plc is a shipping company that owns and operates oil and product tankers globally, with a market cap of $4.19 billion. Operations: The company generates revenue primarily from its tanker operations, amounting to $1.90 billion. Insider Ownership: 35.8% Frontline's earnings are forecast to grow significantly at 29.1% annually, outpacing the US market, despite a decline in revenue projections over the next three years. The stock is trading at 76% below its estimated fair value, offering potential upside as analysts agree on a price rise of 24.8%. However, profit margins have decreased and interest payments aren't well covered by earnings. Recent financials show reduced net income and sales compared to last year. Unlock comprehensive insights into our analysis of Frontline stock in this growth report. Insights from our recent valuation report point to the potential undervaluation of Frontline shares in the market. Yatsen Holding Simply Wall St Growth Rating: ★★★★☆☆ Overview: Yatsen Holding Limited, along with its subsidiaries, develops and sells beauty products in the People's Republic of China and has a market cap of approximately $801.38 million. Operations: Yatsen Holding Limited generates revenue through the development and sale of beauty products in China. Insider Ownership: 38.6% Yatsen Holding's revenue is projected to grow at 14.9% annually, outpacing the US market's 9.2%. The company is trading significantly below its estimated fair value, suggesting potential upside. Despite high volatility in share price recently, earnings have grown by 31% annually over the past five years and are expected to increase by over 100% per year moving forward. Yatsen plans a $30 million share buyback funded by existing cash reserves. Navigate through the intricacies of Yatsen Holding with our comprehensive analyst estimates report here. Our comprehensive valuation report raises the possibility that Yatsen Holding is priced lower than what may be justified by its financials. Where To Now? Unlock more gems! Our Fast Growing US Companies With High Insider Ownership screener has unearthed 177 more companies for you to here to unveil our expertly curated list of 180 Fast Growing US Companies With High Insider Ownership. Want To Explore Some Alternatives? Rare earth metals are the new gold rush. Find out which 25 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include CHYM FRO and YSG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
