Chime Financial, a prominent digital bank based in San Francisco, has recently reported robust earnings for the fourth quarter and the full financial year, surpassing analyst expectations. The company’s successful quarter has set the stage for an anticipated achievement of GAAP profitability by 2026, as well as paving the way for a product suite expansion, featuring new Trump-branded children’s investment accounts.
Chime’s fourth-quarter revenue came in at $596 million, marking a 25% increase year-over-year, and an adjusted EBITDA of $57 million. The company’s success can be attributed to the launch of new products such as its proprietary core processor, its credit card, and the innovative Trump Accounts. The company’s growth trajectory and lower operating costs pose a significant threat to the U.S. banking industry, as Chime continues to gain market share in primary checking accounts and ventures into the nascent Trump Account program that traditional banks are also targeting.
Financial Performance and Outlook
Chime’s fourth-quarter results were better than Wall Street consensus estimates, which predicted roughly $578 million for revenue and $46 million for adjusted EBITDA. They reported a net loss of $44.8 million for the fourth quarter and a full-year net loss of $1.01 billion, significantly impacted by $928 million of stock-based compensation expenses and related payroll taxes linked to the company’s initial public offering. However, Chime generated $2.19 billion in full-year revenue, an increase of 31% from the previous year, and reached an adjusted EBITDA of $127 million.
Looking ahead, Chime issued full-year 2026 guidance projecting revenue between $2.63 billion and $2.67 billion and an adjusted EBITDA of $380 million to $400 million. Analyst expectations for the next year align with this guidance; the consensus mean revenue expectation is $2.64 billion and EBITDA at $387 million. Chime is expected to achieve GAAP profitability in 2026, a milestone that analysts agree is attainable with a projected $65 million in net income in the coming year.
Positive Reception from Analysts
Stock analysts have lauded the company’s earnings report, noting that Chime’s growth metrics appear healthy. “This was a ‘show me’ quarter for investors, and Chime delivered,” according to a research note from Piper Sandler senior research analyst Patrick Moley. JPMorgan analyst Tien-tsin Huang also praised the results, noting the fourth-quarter results came in “ahead of expectation as high-quality [customer growth] supports engagement and monetization.”
Huang also highlighted Chime’s member growth of 500,000 for the quarter, which bettered projections, while revenue and EBITDA significantly surpassed estimates. B. Riley Securities analyst Hal Goetsch also commended the company, stating that the company delivered a “solid beat” and issued 2026 guidance “well ahead of our estimates.”
Trump Accounts: A New Venture
Chime is also making a concerted effort to capture a share of the new Trump Accounts program. This initiative, created by the Working Families Tax Cuts under the One, Big, Beautiful Bill Act, allows parents to open traditional individual retirement accounts (IRAs) for their eligible children. The federal government provides a one-time $1,000 seed deposit for eligible children born between 2025 and 2028, and individuals and employers can contribute up to $5,000 annually.
Chime has integrated the IRS Form 4547 enrollment process directly into its tax filing app to make these accounts more accessible for working families and has pledged to match the $1,000 government contribution for its employees’ eligible children. Other financial institutions such as JPMorganChase, BlackRock, SoFi, Charles Schwab, and BNY have also announced similar matching programs for employee contributions.
Chime’s Proprietary Core
Chime completed a multiyear migration to its proprietary payment processor and ledger, ChimeCore, in the fourth quarter of 2025. CEO Christopher Britt emphasized that the new system sets Chime apart from traditional banks and other FinTech companies that depend on inflexible and costly third-party processors. The migration is expected to reduce transaction processing costs by approximately 60%, supporting a long-term gross margin target of 90%.
The company has successfully transitioned all member accounts to ChimeCore, severing ties with its former third-party processor, Galileo. However, the company incurred a one-time termination fee of approximately $32.7 million during the fourth quarter.
Other Major Developments
Chime has also ventured into the corporate benefits space during the fourth quarter, launching Chime Enterprise to provide fee-free financial tools and earned wage access to employees at companies like Cedarhurst Senior Living, eXp Realty, and Lakeshore Recycling Systems. The company has also secured sponsorships in the sports world, featuring its logo on the jerseys of the Portland Fire women’s basketball team and becoming the official retail banking partner of Major League Soccer.
In a strategic move to bolster its executive ranks, Chime promoted Mark Troughton to president, Janelle Sallenave to chief operating officer, and Vineet Mehra to chief growth officer in December.
Chime’s successful financial year and growth trajectory, propelled by strategic product launches and executive decisions, indicate a promising future for the digital bank. As the company continues to innovate and expand, it is poised to become an even more significant player in the banking industry.
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