Fintech Chime sees 2026 revenue above estimates on strong demand, shares surge

By Manya Saini

Feb 25 (Reuters) - Financial technology firm Chime forecast 2026 revenue above Wall Street estimates on Wednesday, helped by strong demand for ‌its digital banking products and resilient consumer spending.

The entry of new-age ‌financial technology startups offering digital services, easy-to-use platforms and lower fees has reshaped the banking industry, intensifying ​competition for legacy lenders.

Chime's shares surged 9% in extended trading after the results, as the company said it expects to achieve GAAP profitability in 2026.

The fintechs, including Chime, have chipped away at the market share of Wall Street heavyweights by targeting ‌younger and underserved customers, driving ⁠strong adoption and payments flows across their platforms.

Chime expects full-year revenue between $2.63 billion and $2.67 billion. Analysts on average had estimated $2.61 billion, ⁠according to estimates compiled by LSEG.

"We're in the business of acquiring primary account relationships. Those exist at the incumbent banks, Chase, BofA and Wells and so that is ​our ​primary competition," Chime Chief Financial Officer Matt ​Newcomb told Reuters in an interview.

"We ‌continue to extend our lead over traditional banks as the most rewarding place for mainstream America to bank."

Chime expects current-quarter revenue between $627 million and $637 million, above Wall Street expectations of $624.8 million. Newcomb said the company has "a ton of momentum" on the product side.

Its revenue rose 25% to $596 million in the three months ended ‌December 31, compared with a year earlier.

The results ​reflect a resilient U.S. consumer spending environment, ​with Americans continuing to spend on ​everyday essentials, supporting the payments sector and offsetting cutbacks in ‌discretionary purchases.

Purchase volume, including OIT, increased ​16% year-over-year to $35.3 billion ​in the fourth quarter, while active members grew 19% to 9.5 million.

"We're seeing very consistent trends in the consumer, and that's true across income ​levels," Newcomb said.

The company's banking ‌model is geared toward Americans with limited credit histories who rely ​more on debit than on credit cards and loans.

(Reporting by Manya ​Saini in Bengaluru; Editing by Shinjini Ganguli)