What a $3 Million Bet on Chime Financial Stock Signals About the Fintech's Post-IPO Outlook
Key Points
California-based StepStone Group initiated a position in Chime Financial during the third quarter, buying 150,000 shares for an estimated $3 million.
The new position represents 1.4% of 13F reportable assets under management.
The stake places Chime Financial outside the fund's top five holdings.
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California-based StepStone Group reported a new position in Chime Financial (NASDAQ:CHYM), adding 150,000 shares valued at approximately $3 million, according to a November 14 SEC filing.
What Happened
According to an SEC filing released November 14, StepStone Group initiated a new position in Chime Financial (NASDAQ:CHYM), acquiring 150,000 shares in the quarter ended September 30. The estimated value of the stake reached $3 million, representing 1.4% of the fund’s $212.7 million in reportable U.S. equity assets at quarter-end.
What Else to Know
Top holdings post-filing:
- NYSE:STUB: $127.3 million (62.7% of AUM)
- NYSE:KRMN: $21.1 million (10.4% of AUM)
- NYSE:PATH: $17.2 million (8.5% of AUM)
- NASDAQ:GENVR: $11.2 million (5.5% of AUM)
- NASDAQ:DKNG: $6 million (3% of AUM)
As of Friday, shares of Chime Financial were priced at $26.19, about 3% below their June IPO price of $27 per share.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-11-14) | $19.19 |
| Market Capitalization | $7.07 billion |
| Revenue (TTM) | $1.67 billion |
| Net Income (TTM) | ($25.34 million) |
Company Snapshot
- Chime Financial offers mobile-first, fee-free banking services including checking, savings, early paycheck access, and overdraft protection.
- The company generates revenue mainly through interchange fees and offers its services via partnerships with FDIC-insured banks.
- It targets U.S. consumers earning under $100,000 per year.
Chime Financial, Inc. operates as a mobile-first fintech platform in the U.S. with a digital-first approach to consumer banking. The company emphasizes accessibility and fee-free banking services, focusing on serving consumers earning under $100,000 per year.
Foolish Take
StepStone’s move here matters less because of its size and more because of its timing. Chime is only months removed from its IPO, and institutional investors are typically cautious early. Stepping in now suggests growing confidence that Chime’s operating model is starting to translate into durable economics.
The company’s third-quarter results help explain why. Revenue climbed 29% year over year to $544 million, while active members rose 21% to 9.1 million. More importantly for long-term holders, profitability metrics are moving in the right direction. Gross margin held at 87%, adjusted EBITDA turned positive at $29 million, and margins expanded sharply year over year as operating costs scaled more slowly than revenue. Management also raised full-year guidance and authorized a $200 million share repurchase program.
Within the broader portfolio, this position sits well below the fund’s largest, more concentrated bets, indicating measured exposure rather than a high-conviction swing. For patient investors, Chime’s appeal rests on its growing base of higher-income users, improving unit economics, and increasing monetization through products like MyPay and instant transfers. The risk remains execution. But the fundamentals justify institutional interest.
Glossary
13F reportable assets: Assets that institutional investment managers must report quarterly to the SEC, showing U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or asset held by an investor or fund.
Initiated holding: The act of acquiring a security for the first time, creating a new position in a portfolio.
Top holdings: The largest investments in a fund or portfolio, typically by market value.
Stake: The ownership interest or share an investor holds in a company.
Interchange fees: Fees paid by merchants’ banks to card-issuing banks for processing debit or credit card transactions.
Mobile-first: A strategy or product designed primarily for use on mobile devices before desktop platforms.
Fintech: Technology-driven companies or solutions that improve or automate financial services.
FDIC-insured banks: Banks whose deposits are protected by the Federal Deposit Insurance Corporation, up to legal limits.
Quarter-end: The last day of a fiscal quarter, used for financial reporting and analysis.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.
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