By Manya Saini
Aug 5 (Reuters) - Chime on Wednesday raised its full-year revenue growth forecast above Wall Street estimates on strong demand for its digital banking products, and announced the departure of longtime Chief Financial Officer Matt Newcomb.
The company and fellow fintechs have bloomed by attracting younger customers through mobile-first products and steadily expanding into newer financial services such as investing.
A resilient U.S. consumer has further fueled the sector's momentum, helping
sustain payment volumes and customer activity. Payments revenue at Chime, including outbound instant transfer, increased 21% in the second quarter.
"We continue to see signs of a healthy consumer," CEO Chris Britt said, pointing to resilience across income segments and in both discretionary and non-discretionary categories.
Chime now expects revenue to rise 25% to 26% in 2026 versus expectations of 22.7%, according to estimates compiled by LSEG.
It forecast current-quarter revenue between $680 million and $690 million, above analysts' estimates of $668.1 million.
Newcomb, who is ending a decade-long tenure at Chime after helping lead the fintech through its June 2025 IPO, will step down later this week and its president, Mark Troughton, will serve as the interim CFO.
DEMAND BOOM
Chime targets everyday Americans with banking products designed for customers with limited credit histories who rely more on debit than credit. This year, it has launched membership tiers and investing.
Active members jumped 20% to 10.4 million, compared with a year earlier, while average revenue per active member increased 6% to $260.
The company said Chime Prime powered its growth in the second quarter, adding that its fastest-growing segment continues to be customers making $75,000 and more annually.
Revenue rose 27% to $670 million for the three months ended June 30, beating estimates of $640.4 million.
Last week, Chime said it would cut 10% of its workforce, joining a growing list of companies using AI-driven efficiencies to streamline operations.
It posted a net income of $28 million, marking its second straight profitable quarter.
(Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)
