CNBC Television
Chime CEO Chris Britt: It's our job to educate investors on enormous opportunity ahead
11/6/2025, 4:46:40 PM
Economic Summary
- Chime (CHIME) reported 29% year-over-year revenue growth in the quarter, over 9.1 million active members, and raised its full-year outlook while announcing a $200 million share buyback, signaling management confidence and capital return to shareholders.
- Despite strong results, the stock has fallen ~31% since the IPO, which management attributes to typical post-issuance volatility and believes the shares are undervalued long-term.
- Chime serves consumers earning under $100k (about 70% of the country); management reports resilient transaction activity with increased discretionary spending at merchants like Amazon (AMZN), Costco (COST), Uber Eats (UBER) and DoorDash (DASH), suggesting stability in their core cohort.
- Credit-related metrics improved: losses on the MyPay short-term payroll product declined roughly 20 percentage points in the past quarter, and the company emphasizes a privileged repayment position via direct deposit.
- New product and margin dynamics — including the Chime Card offering 1.5% cash back and a 3.5% interest rate (about eight times the national average) — plus better gross margins and lower net loss, are cited as drivers for continued user growth and monetization.
Bullish
- 29% revenue growth and 9.1 million active members demonstrate strong top-line momentum.
- $200 million buyback and raised full-year outlook show management confidence.
- MyPay losses fell ~20 percentage points, indicating improving credit quality.
- Chime Card launch (1.5% cash back, 3.5% interest) and higher margins should aid growth.
Bearish
- Stock down 31% since IPO, signaling investor skepticism and post-IPO volatility.
- Concentrated exposure to consumers earning under $100k could be vulnerable if macro stress rises.
- Reliance on everyday spending could be pressured if discretionary spending weakens.
Bullish tickers
CHIME
Bearish tickers
CHIME
CHIME
Bullish
Reported 29% revenue growth, 9.1M active members, $200M buyback, raised guidance, improved margins and reduced MyPay losses signaling stronger fundamentals and product traction.
Bearish
Post-IPO share price down ~31% reflecting investor skepticism; concentrated exposure to sub-$100k consumers risks performance if macro pressure rises.
People mentioned
Chris Britt