Core Viewpoint - Chime Financial, a fintech company, has shown growth potential despite a recent stock price decline since its IPO, which may present a buying opportunity for long-term investors [1][2]. Business Model - Chime offers no-fee checking and savings accounts, overdraft protection, early-pay features, and a Visa debit card with access to over 50,000 ATMs [3][4]. - The company primarily targets lower-income users who may not qualify for traditional banking services, helping them build credit scores through its credit card offerings [4]. Financial Performance - Chime's market capitalization is $7 billion, with a current stock price around $17.80, down from its IPO price of $27 [5][6]. - Key financial metrics for 2023 and 2024 show growth in active members, purchase volume, and revenue, although there was a sequential decline in purchase volume and average revenue per active member (ARPAM) in Q2 2025 [8]. - Revenue for 2024 is projected to rise by 28% to 29%, with an adjusted EBITDA margin expected to expand to 4% [10]. Growth Projections - Analysts forecast a compound annual growth rate (CAGR) of 23% for Chime's revenue from 2024 to 2027, reaching $3.1 billion, with adjusted EBITDA turning positive in 2025 [11]. - If Chime meets these projections and achieves a CAGR of 20% through 2031, its stock could potentially increase nearly sixfold, raising its enterprise value to $32.2 billion [13]. Competitive Landscape - Chime faces competition from other fintech applications like PayPal and Block's Cash App, but there remains significant market potential for these platforms to coexist and attract lower-income customers from traditional banks [12].