NEW YORK, August 6, 2026, 19:01 EDT
- Chime finished the session at $31.25, gaining 20.6%, with trading volume reaching 6.1 times its 65-day average. The main market session had concluded, but after-hours trading was still ongoing.
- Preliminary calculation: The midpoint for full-year revenue was raised by $60 million. The adjusted EBITDA midpoint climbed by $46.5 million.
- The number of active members climbed 20%, while ARPAM was up 6% and revenue advanced 27%.
Shares of Chime Financial NASDAQ:CHYM jumped 20.6% on Thursday after the fintech surpassed second-quarter expectations and lifted its 2026 guidance. Since last Friday, the stock has climbed 35.9%.
The standout shift came in the updated guidance. Chime increased its full-year revenue midpoint by $60 million and lifted its adjusted EBITDA midpoint by $46.5 million.
This indicates an initial conversion rate of 77.5% from the revenue revision to adjusted EBITDA, based on the midpoints of the guidance. The number does not reflect management’s announced incremental margin.
Both components of the business model contributed to growth. Membership rose by 20% and ARPAM climbed 6%, combining for roughly 27.2%. This closely aligns with the disclosed revenue growth of 27%.
Comparison of share prices. Figures are based on Thursday’s regular session closing price of $31.25.
| Market reference | Value | Comparison with August 6 close |
|---|---|---|
| August 6 close | $31.25 | Up 20.6% for the session |
| July 31 close | $22.99 | Increase of 35.9% |
| June 2025 IPO price | $27.00 | Risen 15.7% |
| August 6 intraday and 52-week high | $33.41 | Ended 6.5% below high |
| August 6 volume | 34.85 million | Traded 6.1 times above 65-day average |
Chief Executive Chris Britt stated, “We continue to see signs of a healthy consumer.” He pointed to resilience in both income levels and spending categories. Reuters
Second-quarter operating performance comparison. Transaction profit and adjusted EBITDA are considered non-GAAP metrics.
| Metric | Q2 2026 | Prior-year comparison |
|---|---|---|
| Revenue | $669.8 million | $528.1 million; up 27% |
| Gross profit and margin | $594.9 million; 89% | $461.0 million; 87% |
| Transaction profit and margin | $491.6 million; 73% | $362.8 million; 69% |
| Adjusted EBITDA and margin | $101.6 million; 15% | $16.0 million; 3% |
| Net income and margin | $27.9 million; 4% | Second straight profitable quarter |
| Active members | 10.4 million | up 20% |
| ARPAM | $260 | up 6% |
| Purchase and outbound-transfer volume | $39.4 billion | up 20% |
Prime seems to be the key driver. Departing CFO Matt Newcomb stated “the real power is in the combination,” referencing both smoother onboarding and Prime. Prime subscribers produced over double the typical ARPAM.
The fastest-growing group of Chime members has an annual income of $75,000 or more. Chime is now forecasting 1.8 million net new members in 2026, up from its prior projection of 1.4 million.
Liquidity products provided a further boost. MyPay originations totaled $4.5 billion, maintaining a 0.9% loss rate. Transaction profit for MyPay rose over threefold to $73 million. Instant Loans originations climbed almost 70% from the previous quarter to reach $300 million.
Offering rewards came at a price. According to management, Prime’s cash-back strategy resulted in rewards slightly exceeding projections. Management also noted that a one basis point increase in take rate generated a five-point boost in volume growth.
Guidance comparison. Calculations for midpoint shifts and implied percentage figures are initial estimates based on ranges provided by the company.
| Metric | May outlook | August 5 outlook | Change or comparison |
|---|---|---|---|
| Full-year revenue | $2.660–$2.690 billion | $2.725–$2.745 billion | Midpoint increase of $60 million, or 2.2% |
| Full-year adjusted EBITDA | $416–$431 million | $465–$475 million | Midpoint higher by $46.5 million, or 11.0% |
| Adjusted EBITDA margin | 16% | 17% | Up by 1 percentage point |
| Incremental adjusted EBITDA margin | About 60% | About 63% | Up 3 percentage points |
| Q3 revenue | Not issued | $680–$690 million | Midpoint 2.5% over $668.1 million consensus |
| Q3 adjusted EBITDA | Not issued | $105–$110 million | 15%–16% margin |
The second-quarter outperformance provided management with flexibility. Revenue topped the $640.4 million consensus estimate by 4.6%. An initial estimate shows adjusted EBITDA at 36% higher than Chime’s Q2 guidance midpoint.
Cost measures will now move to implementation. Chime announced last week it plans to reduce its workforce by roughly 10%, impacting close to 150 workers. The company anticipates cash restructuring costs for the third quarter in the range of $16 million to $20 million.
The anticipated net income impact ranges from $6 million to $9 million. Newcomb will leave on Friday. President Mark Troughton will serve as interim CFO as Chime seeks a permanent successor.
Chime’s action was unique to the company. Shares of fellow consumer fintech firms SoFi Technologies NASDAQ:SOFI and Robinhood Markets NASDAQ:HOOD declined 0.8% and 2.3%, respectively, in late trading.
Analyst recommendations for August 6. Expected returns are based on Thursday’s closing price of $31.25.
| Analyst and firm | Recommendation | Target | Implied return |
|---|---|---|---|
| Joseph Vafi — Canaccord Genuity, a subsidiary of Canaccord Genuity Group (TSE:CF) | Buy | $45 | +44.0% |
| Hal Goetsch — B. Riley Securities, a division of B. Riley Financial NASDAQ:RILY | Buy | $37 | +18.4% |
| Adam Frisch — Evercore ISI, a segment of Evercore Inc. NYSE:EVR | Buy | $35 | +12.0% |
| Patrick Moley — Piper Sandler NYSE:PIPR | Buy | $35 | +12.0% |
| James Faucette — Morgan Stanley NYSE:MS | Buy | $33 | +5.6% |
| Timothy Chiodo — UBS Group NYSE:UBS | Hold | $28 | -10.4% |
According to the three-month analyst snapshot, there were 12 buy ratings, one hold, and zero sell recommendations. The consensus price target of $32.75 suggested only a 4.8% upside following Thursday’s surge. Expectations for the upcoming quarter are consequently higher.
The July jobs report arrives Friday, serving as the next test for consumer strength. July CPI data is due Wednesday, PPI follows on Thursday, with retail sales figures set for Friday. The results could influence forecasts for consumer spending levels and credit losses.
Risks: Softer employment conditions might reduce purchase activity and contribute to higher credit losses. Margins could come under strain from regulations, interchange changes, reliance on banking partners and incentive structures. The CFO transition introduces operational risk. Adjusted EBITDA is not a GAAP metric and may not align directly with peers.
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