On August 6, Chime Financial, Inc. rose 9.16% in regular trading, trading at $30.37/share, with turnover of $159 million. The surge was driven by a strong Q2 earnings report that significantly exceeded market expectations, coupled with an upward revision of full-year guidance and analyst target price upgrades.

Specifically, Q2 revenue came in at $670 million, up 27% year-over-year, beating the consensus estimate of $640 million. EPS of $0.07 far surpassed the breakeven expectation, marking the second consecutive quarter of profitability. Active members grew 20% to 10.4 million, with average revenue per active member rising 6% to $260. The company raised full-year revenue guidance to $2.725B-$2.745B, above the prior market estimate of $2.68B.

Following the results, B. Riley lifted its price target from $35 to $37 while maintaining a Buy rating, and FactSet revised the EPS estimate upward to $0.35 with a $33 target price. Additionally, anticipated Q3 stock compensation expense reductions of $9-12 million and prior AI-driven headcount cuts of approximately 150 employees further reinforced the improving profitability outlook.

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