We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chime Financial to Post Q2 Earnings: What's in Store for the Stock?
Read MoreHide Full Article
Key Takeaways
Chime Financial to report 2Q25 results on Aug. 7, after market close.
Q2 revenues are estimated at $505.6M, suggesting a rise from the $384.2M reported a year earlier.
Payments-driven, asset-light model to support steady revenue growth.
Chime Financial, Inc. (CHYM - Free Report) 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 - Free Report) and Marex Group PLC (MRX - Free Report) — 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.
Image: Bigstock
Chime Financial to Post Q2 Earnings: What's in Store for the Stock?
Key Takeaways
Chime Financial, Inc. (CHYM - Free Report) 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 - Free Report) and Marex Group PLC (MRX - Free Report) — 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.