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After Chime Financial reported its November results, we updated our fair value and added its acquisition of Stride Bank to what we track. We raised our projections for what a customer spends per visit and the growth of active members. We have also added the rollout of wealth management and joint accounts to our view of the company's long-term earnings.
Freedom Capital Markets held its buy rating on the stock as the company continues to show steady growth. This follows a week where several other firms, including Wells Fargo and Goldman Sachs, also kept their positive ratings after the latest financial report. The average target price from analysts who follow the stock is now about $39. This suggests they believe the stock has room to rise from its current price of around $31.
Source: Freedom Capital Markets
Chime reported a strong third quarter with revenue of $718 million, which was higher than the $700 million analysts expected. The company earned $0.11 per share, beating the $0.10 estimate. This marks the third quarter in a row that the company has been profitable under standard accounting rules, a sign that its business model is becoming more stable as it scales.
The growth was driven by adding 1.8 million new active members over the past year. Management also raised its forecast for the rest of 2026, citing strong demand for its banking and lending tools. For a long-term owner, the most important detail is that the company is growing its user base while also proving it can make money consistently.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Chime expanded its partnership with Workday, a platform many large companies use to manage their employees and payroll. Employees can now choose to send their paychecks to Chime directly within the Workday app without having to type in their bank account numbers manually.
This matters because Chime's business relies on members setting up direct deposits. When a member's paycheck goes into a Chime account, the company can offer them more services like credit building and short-term advances. By making it easier to sign up, Chime can more effectively bring in the high-value users who drive its profits.
Source: Business Wire
Management has established a reliable pattern of setting conservative targets and then clearing them. Five straight beats show they have a firm handle on their costs and growth.
| Expectation | |
|---|---|
| EPS | $0.17 |
| Revenue | $758M |
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