Chime raises annual revenue forecast on robust demand

Fintech company Chime has raised its full-year revenue growth forecast above Wall Street's expectations, citing robust demand for its digital banking products. The company's shares surged nearly 5.8% to $31.6 in after-hours trading.

Consumer spending has remained resilient, fueling growth in the sector. Despite higher oil prices and inflationary pressures resulting from the US conflict with Iran, households and businesses continue to spend, according to Mark Troughton, Chime's president and interim CFO. Troughton highlighted that consumers are showing confidence in their spending habits.

Consumers are also changing their spending habits, with more money being allocated to entertainment and an increasing preference for public transportation and alternative modes of travel due to higher gasoline prices. Chime, which had nearly 11 million active members by the end of the third quarter, noted that households earning $75,000 or more were its fastest-growing customer segment.

The San Francisco-based fintech firm now anticipates revenue growth of 28% in 2026, compared to an earlier estimate of 26.6%. The company expects fourth-quarter revenue between $757 million and $767 million, surpassing analysts' estimates of $745.6 million. Chime reported revenue of $718 million for the third quarter, a 32% increase compared to the previous year. The company's average revenue per active member rose by 10% to $270.