Chime reports maiden quarterly profit on resilient consumer spending
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(Corrects paragraph 8 to say purchase volume, including outbound instant transfer, increased 15 per cent year-over-year to $40 billion, not 12 per cent to $39 billion)
By Pritam Biswas and Arasu Kannagi Basil
May 6 : Chime posted its first-ever quarterly profit on Wednesday, as resilient consumer spending in the first three months of the year lifted demand for the financial technology firm's digital banking products.
Consumer spending remained resilient in the first quarter as individuals and businesses maintained spending trends and supported the payments sector, despite broader macroeconomic volatility linked to the war in the Middle East.
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Shares of the company rose 4 per cent in extended trading. The stock has fallen roughly 14 per cent this year as of the last close.
Payments processing company Visa also reported a rise in quarterly profit last week, helped by the spending trends. However, analysts and boardrooms have said that they are keeping a keen eye on the proceedings in the Middle East.
"We see broad resilience and consistency in consumer trends," Finance Chief Matthew Newcomb said in an interview with Reuters.
He added that the company saw growth across both discretionary and non-discretionary categories.
The company had previously said that it expects to achieve profitability in 2026. New-age fintech offering digital-first services, user-friendly platforms and lower fees have reshaped the banking industry, ramping up competition for traditional lenders.
Chime's purchase volume, including outbound instant transfer, increased 15 per cent year-over-year to $40 billion in the quarter, while active members grew 19 per cent to 10.2 million.
The San Francisco-based company expects second quarter revenue between $633 million and $643 million, compared to Wall Street's expectations of $641 million, according to estimates compiled by LSEG.
The digital bank went public in New York in June 2025 in a strong investor debut, but shares are now trading below the IPO price of $27.
Chime's banking model targets everyday Americans, offering several products for customers with limited credit histories who rely more on debit than credit, but is expanding to a broader product set in 2026 including membership tiers and investing.
The company reported a revenue of $647 million, up 25 per cent over last year, in the first quarter that beat the Street's estimates. The company reported a net income of $53 million and a net margin of 8 per cent.
The board of directors of the company also approved an additional $200 million share repurchase plan.
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