Chime's Stock Plunges 14.68% on Mixed Earnings Ranks 464th in $210M Volume Surge

On August 8, 2025, Chime Financial (CHYM) closed with a 14.68% decline, marking one of its largest intraday drops since its IPO. The stock traded with a volume of $0.21 billion, a 102.1% increase from the previous day, ranking 464th in market activity. The selloff followed mixed reactions to its first earnings report as a public company, despite strong operational metrics.

The Q2 2025 earnings call highlighted 37% year-over-year revenue growth to $528 million and a 23% increase in active members to 8.7 million. The MyPay product, a key growth driver, reached a $300 million annualized revenue run rate, with improved transaction margins driven by reduced loss rates. However, the company faced challenges, including a decline in average spend per customer and inflationary pressures. Management emphasized strategic efforts to expand customer acquisition and improve product retention, including relaxing account restrictions and enhancing digital access tools like Apple Pay integration.

Investors reacted negatively to a $923 million net loss attributed to IPO-related stock-based compensation expenses, despite adjusted EBITDA of $16 million. The earnings report also revealed structural vulnerabilities, such as high burn rates and reliance on unprofitable growth strategies. Analysts noted that while Chime’s brand strength and product innovation remain compelling, the valuation—trading at 5x revenue guidance—faces pressure as the market demands clearer profitability pathways.

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