Chime (CHYM) is a Banking App Providing Short-Term Cash & Credit Building

Stock (Symbol)

Chime Financial (CHYM)

Stock Price

$32

Sector

Data is as of

Expected to Report

Company Description

Chime Financial, Inc. is a financial technology company.

The Company offers a range of low-cost banking and payments products that address the financial needs of everyday people.

Through its platform, its members access FDIC-insured checking accounts and linked debit cards, nationwide ATM and cash deposit networks, and early access to their paycheck, allowing them to manage their money and pay for everyday expenses.

Its liquidity products offered through its platform are designed to provide its eligible members with access to short-term liquidity when they need it most for free.

These products include SpotMe, MyPay and Instant Loans.

• The SpotMe which allows eligible members to overdraft fee-free within their available limit.
• The MyPay, which allows its members to access up to $500 of their pay on demand before payday.
• The Instant Loans allows eligible members to borrow funds repaid in equal monthly installments over a specified period. Source: Refinitiv
  

Sharek’s Take

Chime Financial (CHYM) is an online bank that was created to help the nearly 75% of Americans that earn less than $100,000 a year, who may have lower credit scores. These people might live from paycheck-to-paycheck, directly deposit their paychecks into Chime accounts, and sometimes need short term cash. But, Chime’s fastest growing segment is those making $75,000 and above. Rather than operating as a traditional bank, it partners with FDIC-insured banks to offer products such as spending and savings accounts, debit and credit cards, early paycheck access, overdraft protection, and credit-building services. The company primarily earns revenue from interchange fees generated when customers use its cards, along with fees and income from other financial products and services. Thus, its core revenue generally increases as customers use Chime for everyday purchases such as groceries, gas, utilities, and other recurring expenses. As of end-2025, Chime has 9.5 million active members. In the 2025 Annual Report, management claimbed its cost to serve is now roughly one-third of large banks and one-fifth of regional banks. 

Chime’s platform combines:

• Savings Accounts to receive direct deposits and deposit cash. No monthly fees, and no minimum balance requirements.
• Checking Account and debit card for everyday purchases, and access to cash via Chime’s 47,000 fee-free ATM network. Chime also gives members the ability to send money to external accounts.
• Chime Card and Credit Builder Credit Card are prepaid credit cards allowing members to build credit through everyday spending and on-time payments.
• Short Term Cash
  • SpotMe provides eligible members with fee-free overdraft coverage.
  • MyPay allows eligible customers to access a portion of their earned wages before payday.
  • Instant Loans provide eligible members with installment-based borrowing.
• FICO Score Tracking allows members see their credit rating.
• Free Tax Filing for state and federal taxes.

Chime has three types of memberships:

• Chime:
  • 0.75% Annual Percentage Yield (APY) on savings.
  • Cash back on Chime Deals.
  • Get paid 2 days early with direct deposit.
• Chime Plus:
  • 2.75% APY on savings.
  • Earn 2% cash back in a category you choose with Chime Card.
  • Up to $500 cash advance before payday.
  • Requires a monthly direct deposit of $400+
• Chime Prime:
  • 3.75% APY on savings.
  • Earn 5% cash back cash back in a category you choose with Chime Card.
  • Up to $500 cash advance before payday.
  • Travel perks.
  • Requires a monthly direct deposit of $3000+.

CHYM stock is a recent IPO from June 2025. The stock dipped down after it went public, and has shown strength during the past month. The stock doesn’t possess an Estimated Long-Term Growth Rate (Est. LTG) yet. I’m tempted to buy CHYM, but the stock seems high with a P/E of 74. CHYM is on the radar for the Growth Portfolio.

One Year Chart

CHYM has a P/E of 74 when we look at 2026 profit estimates.

Analysts don’t have an Est. LTG on the stock.

During the last 4 qtrs, EPS improved from -$0.15 to -$0.12, then to $0.13 and $0.07,  demonstrating strong improvement in profitability. Quarterly estimates are also good.

Earnings Table

Last quarter, Chime delivered a profit of $0.07 per share (EPS) vs. estimates of $0.00.

• Active Members rose 20% YoY to 10.4 million, up from 8.7 million a year ago. This was fueled by Chime Prime, the company’s top-tier membership status, launched in 2026 to encourage customers to make Chime their primary bank account.
• Chime’s fastest-growing segment continues to be member making at least $75,000 per year.
• Average Revenue per Active Member (ARPAM) grew 6%year over year (YoY) to $260, while Purchase Volume growth accelerated to 17% YoY.
• Payments revenue grew 17% YoY.
• Platform-related revenue surged 48% YoY. Growth in MyPay and Instant Loans, along with the increasing mix of higher-value Chime Prime members, helped platform revenue grow substantially faster than the core payments business.
• Last quarter, MyPay transaction profit dollars more than tripled to $73 million, driven by strong originations and a 0.9% loss rate.
• Instant Loans origination grew almost 70% quarter over quarter to $300 million, with repeat borrowers seeing up to 50% lower loss rates.
• Chime recently launched Chime Invest, commission-free investing and professionally managed portfolios with no account minimums, directly within the Chime app.

Annual Profit Estimates are fresh as I don’t have a historical trend because this is my first time covering the stock. Management projects revenue growth of around 26% for 2026.

Quarterly Profit Estimates for the next 4 quarters are 153%, 225%, 69%, and 171% growth. These are excellent numbers. Analysts think CHYM revenue will grow 26% next quarter.

Fair Value

With the stock at $32 this quarter, it has a P/E of 74. Wow, that’s high.

My Fair Value P/E is 35, which equates to $15 a share in 2026, 53% below the recent quote. The stock was $17 around the lows a couple months ago. Maybe I should raise my Fair Value P/E? Maybe next quarter.

2027 Fair Value sits at $31 a share, around where the stock is now.

Bottom Line

Chime Financial (CHYM) fell after its IPO in 2005, and the stock is now working its way back to those old highs.

I was hoping to buy the stock, but the valuation is high after the recent surge higher. I’ll look to get in if the shares settle back some. $25 seems like a good price to buy in at.

CHYM is on the radar for the Growth Portfolio.

Power Rankings

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Focus List

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Conservative Growth Portfolio

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