Chime Financial, Inc. (NASDAQ:CHYM) is one of the best FinTech stocks to buy in 2026. Wall Street’s tone on the stock turned notably constructive in December. On December 11, 2025, B. Riley initiated coverage with a Buy rating and a $35 price target, framing Chime as a profitable, high-growth neobank with disciplined customer acquisition costs and strong margins. B. Riley pointed to Q3 2025 gross margin of 87% and transaction margin of 69%, arguing that Chime’s model can sustain growth with very low margi ...

Core Insights - StepStone Group has initiated a new position in Chime Financial, acquiring 150,000 shares valued at approximately $3 million, representing 1.4% of the fund's reportable U.S. equity assets [2][3][7] - Chime Financial's shares are currently priced at $26.19, which is about 3% below their IPO price of $27 per share [4] - Chime Financial operates as a mobile-first fintech platform, providing fee-free banking services primarily to U.S. consumers earning under $100,000 per year [9][10] Financial Performance - Chime Financial reported a 29% year-over-year revenue increase to $544 million in the third quarter, with active members rising 21% to 9.1 million [12] - The company's gross margin held at 87%, and adjusted EBITDA turned positive at $29 million, indicating improving profitability metrics [12] - Management has raised full-year guidance and authorized a $200 million share repurchase program, reflecting confidence in the company's financial outlook [12] Investment Implications - StepStone's investment in Chime Financial is seen as a sign of growing confidence in the company's operating model, especially shortly after its IPO [11] - The position in Chime is relatively small compared to the fund's largest holdings, indicating a measured approach rather than high conviction [13] - Chime's appeal lies in its growing base of higher-income users, improving unit economics, and increasing monetization through new products [13]

Core Insights - Chime and Upstart are both fintech companies focused on providing financial services to lower-income consumers, with Chime offering fee-free banking and Upstart utilizing AI for loan approvals [1][12] Chime Overview - Chime went public at $27 in June but is currently trading around $24, indicating a decline [2] - Chime's services include fee-free checking and savings accounts, overdraft protection, and a Visa debit card, appealing to lower-income users [4][5] - In 2024, Chime's active members increased by 21% to 8 million, with total revenue rising 31% to $1.67 billion [8] - Despite growth, Chime's purchase volume and average revenue per active member (ARPAM) have shown sequential declines, attributed to macroeconomic pressures [9][10] - Analysts project Chime's revenue to grow by 30% to $2.17 billion in 2025, with adjusted EBITDA turning positive [11] Upstart Overview - Upstart, which acts as a marketplace for loans, has seen its loan originations grow by 28% in 2024, with total revenue increasing by 24% to $636.5 million [15] - The company has benefited from lower interest rates and has automated more of its loan processes, expanding its lending partners [16] - Analysts expect Upstart's revenue and adjusted EBITDA to surge significantly in 2025, driven by favorable interest rate conditions [17] Comparative Analysis - Chime has a higher enterprise value relative to its adjusted EBITDA compared to Upstart, suggesting that Upstart may be a more attractive investment option [18] - Chime faces more competition and has slower growth rates, while Upstart has a clearer path for growth and a lower valuation [19]

Core Viewpoint - The report summarizes significant rating changes from various investment firms that are expected to impact the market. Upgraded Ratings - Jefferies upgraded Roku (ROKU) from "Hold" to "Buy," raising the target price from $100 to $135, anticipating over 20% growth in platform revenue under optimistic scenarios [5] - Piper Sandler upgraded Unity (U) from "Neutral" to "Outperform," increasing the target price from $43 to $59, citing a favorable outlook for the mobile app advertising market entering 2026 [5] - Citigroup upgraded Thermo Fisher Scientific (TMO) from "Neutral" to "Buy," raising the target price from $580 to $660, expecting benefits from increased pharmaceutical spending and local industry advantages [5] - Bank of America upgraded Synopsys (SNPS) from "Neutral" to "Buy," increasing the target price from $500 to $560, noting reduced risks in sales to China and Intel, and potential for attractive rebound [5] - Bank of America upgraded Visa (V) from "Neutral" to "Buy," setting a target price of $382, indicating attractive return potential after recent underperformance [5] Downgraded Ratings - Bank of America downgraded PayPal (PYPL) from "Buy" to "Neutral," lowering the target price from $93 to $68, citing delays in revitalizing core payment business growth [5] - Harbor Research downgraded General Electric Energy (GEV) from "Buy" to "Neutral," without providing a target price, stating current valuation is reasonable [5] - Bank of America downgraded Alcon (ALC) from "Buy" to "Underperform," reducing the target price from $100 to $75, due to limited upside and market uncertainties [5] - Deutsche Bank downgraded Norfolk Southern Railway (NSC) from "Buy" to "Hold," setting a target price of $297, attributing the downgrade to unresolved merger issues with Union Pacific Railway (UNP) [5] - Deutsche Bank downgraded Union Pacific Railway from "Buy" to "Hold," setting a target price of $245, despite strong performance over two quarters, citing poor stock performance [5] Initiated Coverage - Freedom Capital initiated coverage on Shift4 Payments (FOUR) with a "Buy" rating and a target price of $80, viewing recent pullbacks as an attractive entry point [5] - Bernstein initiated coverage on BridgeBio Pharma (BBIO) with an "Outperform" rating and a target price of $94, suggesting that short-term expectations are reasonable but long-term may be overly optimistic [5] - B. Riley initiated coverage on Chime Bank (CHYM) with a "Buy" rating and a target price of $35, indicating a 40% potential upside, highlighting its profitable and high-growth digital banking services [5] - Morgan Stanley initiated coverage on Elbit Systems (ESLT) with a "Hold" rating and a target price of $531, noting that most growth potential is already reflected in the current stock price after a 95% increase this year [5] - Goldman Sachs initiated coverage on Abercrombie & Fitch (ANF) with a "Buy" rating and a target price of $120, favoring companies with store expansion capabilities and pricing power in the apparel retail sector [5]

Core Viewpoint - Chime Financial, Inc. (NASDAQ:CHYM) has experienced significant stock performance, rallying 9.10% to $26.50 following the Federal Reserve's interest rate cut, which is expected to enhance consumer spending and transaction volumes for the company [1][2]. Company Performance - Chime Financial's stock rose for a second consecutive day, reflecting positive investor sentiment due to the Federal Reserve's decision to cut interest rates by 25 basis points [2]. - The company's stock performance is part of a broader trend, as it was highlighted among the top gainers in the market [1]. Leadership Changes - Chime Financial announced key leadership promotions: Mark Troughton has been promoted to president, Janelle Sallenave is the new COO, and Vineet Mehra is appointed as chief growth officer [3]. - The leadership team has been credited with the successful expansion of new products and a focus on AI, contributing to the company's brand momentum [3][4]. Strategic Vision - CEO Chris Britt emphasized the importance of the new leadership in scaling the business and enhancing product offerings, aiming to strengthen Chime's position as a leading banking brand [4]. - The promotions are seen as a reflection of Chime's ongoing momentum and commitment to impacting the financial lives of its members [5].

Core Insights - Chime Financial Inc. has been upgraded to Buy by Goldman Sachs, with a price target increase to $27, reflecting confidence in the company's growth potential despite recent stock performance concerns [1] - The company reported a 29% year-over-year revenue growth in Q3 2025, totaling $543.52 million, alongside an EPS of $0.08, which exceeded estimates by $0.33 [2] - The successful rollout of the new Chime Card, which offers 1.5% cash back, has led to a significant increase in purchase volume, with 80% of new members using the credit side of the card [3] Financial Performance - Chime Financial achieved a total revenue of $543.52 million in Q3 2025, marking a 29% increase compared to the previous year [2] - The company reported an EPS of $0.08, surpassing market expectations by $0.33 [2] Customer Growth - Chime's active member base grew by 21% year-over-year, reaching a total of 9.1 million members [2] - The new Chime Card is expected to further enhance revenue through higher interchange rates as it is rolled out to existing members [3]

Company Overview - Chime is positioned as a leader in the shift towards digital banking in mainstream America, focusing on providing helpful, free, and easy banking solutions [4] - The company aims to assist nearly 200 million U.S. adults earning up to $100,000, a demographic that has been largely overlooked by traditional banks [4] Market Position - Chime's approach is resonating with its target market, as evidenced by the high engagement level, with 97% of its members actively using the service [5]

Summary of Chime Financial Conference Call Company Overview - Chime Financial is positioned as a leader in the digital banking sector, targeting nearly 200 million U.S. adults earning up to $100K, a demographic often overlooked by traditional banks [5][6] - 97% of Chime members report improved financial progress, and the company has been recognized as the number one bank brand in America by J.D. Power [5][6] Key Points and Arguments Digital Banking Shift - There is a significant shift towards digital banking in America, with Chime at the forefront [5] - The company focuses on solving critical financial needs and has innovated its cost structure to provide better value to consumers [6] Primary Account Relationships - Chime has achieved high success in converting members to primary account status, driven by product innovation [8] - The average active member conducts 55 transactions per month, indicating strong engagement [10] - Tenured cohorts use an average of four products monthly, with revenue per active member (RPAM) increasing from $250 to $350 [11] Targeting Higher-Income Segments - The fastest-growing segment for Chime includes individuals earning over $75K, with a focus on high-yield savings and rewards products [12][14] - Chime offers a 3.5% interest rate on high-yield savings accounts, significantly above the national average [14] Ungating Strategy - Chime has implemented an ungating strategy to allow non-direct depositors access to certain products, resulting in increased member growth and improved unit economics [16][18] - The company added 1.6 million new active members in the past year, up from 1.2 million the previous year [18] Competitive Advantages - Chime's cost structure is significantly lower than traditional banks, with a transaction margin of approximately 70% [22] - The transition to Chime Core, an in-house payment processor, has reduced processing costs by over 50% [23] Chime Card - The Chime Card, a secured credit card, offers 1.5% cash back and is designed to enhance customer engagement and acquisition [27][28] - New cohorts using the Chime Card are spending approximately 80% of their transactions through it [29] Liquidity Products - Chime's liquidity products, such as MyPay and Instant Loans, account for about 20% of revenue and are designed to provide short-term credit with low risk [36] - The company benefits from a unique repayment position, as it is the first to be repaid when direct deposits come in [35] Economic Resilience - Chime has observed resilience in consumer spending, particularly in non-discretionary categories, despite economic challenges [38][40] - The model is designed to perform well in both good and tough economic times, with a focus on low-cost services [41] Chime Enterprise - Chime Enterprise aims to provide financial wellness solutions to employers, leveraging partnerships with platforms like Workday and UKG [43][44] - Early adoption rates among employees have exceeded expectations, indicating strong market interest [44] Growth Framework - Key growth levers include increasing active members and revenue per member, with a focus on cross-selling additional products [47][48] - The company expects to see improvements in profit margins due to operational efficiencies and AI integration in customer support [50][51] Additional Important Insights - Chime's customer support has improved significantly due to AI initiatives, leading to higher customer satisfaction scores [51] - The company anticipates continued growth in adjusted EBITDA margins, projecting an 11-point improvement in Q4 [52]

​Chime Financial, Inc. (NASDAQ:CHYM) is one of the Best Up and Coming Tech Stocks to Buy. Wall Street is bullish on the stock since the company topped estimates during its fiscal Q3 2025. The stock has surged more than 10.5% since the release. ​On November 13, James Faucette from Morgan Stanley reiterated a Buy rating on the stock with a $40 price target. Earlier on November 6, Patrick Moley from Piper Sandler also reiterated a Buy rating on Chime Financial, Inc. (NASDAQ:CHYM) but lowered the price target ...

Core Viewpoint - Chime Financial, Inc. (CHYM) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Rising earnings estimates for Chime Financial suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7][9]. - Chime Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Chime Financial is expected to earn -$4.31 per share, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Chime Financial has increased by 6.3%, reflecting positive sentiment among analysts [8].