Key facts
- Chime raised its 2026 revenue growth forecast to 25%-26%, exceeding analyst expectations.
- The company expects current-quarter revenue between $680 million and $690 million.
- Chime reported a 27% revenue increase to $670 million in the second quarter.
- Chief Financial Officer Matt Newcomb will step down after a decade-long tenure.
- Chime announced a 10% workforce reduction.
Chime, a digital banking platform, has raised its full-year revenue growth forecast for 2026 to between 25% and 26%, surpassing Wall Street estimates of 22.7%. This upward revision is attributed to strong demand for its mobile-first digital banking products. The company also announced that its long-time Chief Financial Officer, Matt Newcomb, will step down after a decade-long tenure, with President Mark Troughton assuming the role of interim CFO.
For the current quarter, Chime forecasts revenue between $680 million and $690 million, exceeding analysts' expectations of $668.1 million. In the second quarter, Chime's payments revenue increased by 21%. Active members grew by 20% to 10.4 million, with average revenue per active member rising 6% to $260. Overall revenue for the three months ended June 30 increased by 27% to $670 million, beating estimates of $640.4 million. Chime also posted a net income of $28 million, marking its second consecutive profitable quarter. The company recently announced a 10% workforce reduction.
Separately, Sandisk forecast quarterly revenue above estimates, banking on rising demand for its memory chips used in AI data centers. The company expects first-quarter revenue between $10.30 billion and $10.80 billion, with adjusted profit between $44 and $46 per share. Generative AI's growth is boosting demand for Sandisk's enterprise solid-state drives and flash memory chips. The company reported fourth-quarter revenue of $8.97 billion, beating estimates, and its data-center revenue more than doubled from the third quarter to $2.98 billion.