Chime Financial (CHYM) Surges 13.6% as Firm Eyes Swing to Profits This Year

Core Insights - Chime Financial Inc. (NASDAQ:CHYM) has shown strong performance, with a 13.57% increase in stock price, attributed to expectations of returning to profitability this year despite a poor earnings report in 2025 [1][9]. Financial Performance - The company anticipates revenue growth of 20 to 22 percent, targeting a range of $2.63 billion to $2.67 billion for the year [3]. - For the first quarter, revenues are expected to rise by 21 to 23 percent, aiming for a range of $627 million to $637 million [4]. - Adjusted EBITDA is projected to be between $380 million and $400 million for the year, with a margin of 14 to 15 percent [3]. - Last year, Chime Financial's net loss widened significantly by 3,936 percent to $1 billion, primarily due to a $928 million stock-based compensation expense [5]. - In the fourth quarter, the net loss increased by 128 percent to $44.78 million, while revenues grew by 25 percent to $596 million [6]. Growth Outlook - Chime Financial is positioned for growth with multiple tailwinds expected to support strong bottom-line, topline, and margins [2]. - The company expects 2026 to be its first full year of achieving GAAP net income profitability, ahead of previous internal expectations [2].