S&P Adds Chime to MidCap 400, Effective November 18
Key Facts
S&P Dow Jones Indices announced on November 13 that it would add Chime Financial to the S&P MidCap 400, with the change taking effect before trading opens on November 18. The company, listed under the ticker CHYM, will replace NorthWestern Energy Group in the index, placing a financial services company in the benchmark in place of a utility. The announcement came after Chime shares closed at $33.03 on November 12, compared with $33.08 in the previous session. The closing price therefore predates the announcement by one day and does not reflect its impact. The planned inclusion comes as the company reports revenue and profitability growth in its third-quarter results.
NorthWestern's removal from the index is tied to its acquisition by Black Hills, a current S&P MidCap 400 constituent. S&P said the deal was expected to close on the day the change was announced. After the merger, the combined company will remain in the index under the name Bright Horizon Energy Corp. and ticker HZN. The announced change is therefore linked to a deal that keeps the merged entity in the index, while freeing up the departing company's place for Chime. S&P listed Chime in the financials sector and NorthWestern in the utilities sector in its change notice.
Chime reported on November 4 results for the quarter ended September 30, with revenue up 32% year over year to $718 million, compared with 27% growth in the second quarter. Chief Executive Officer and co-founder Chris Britt said, "This was our strongest quarter as a public company to date, and we're seeing structural improvement in our growth and profitability trajectory." The company recorded net income of $44 million, marking its third consecutive quarter of GAAP profitability. Net income margin was 6%, up 16 percentage points year over year. The results provide context on the company's performance ahead of the index inclusion announcement, without Chime linking them to the index change.
Within revenue, payments revenue grew 22% to $444 million, while platform-related revenue increased 52% to $274 million. Chime attributed platform revenue growth to continued expansion of its MyPay and Instant Loans services. Purchase volume also rose 19% year over year to $38.5 billion, or 22% to $40 billion when outbound instant transfers are included. Average revenue per active member grew 10% to $270. These metrics reflect multiple growth drivers in the company's business during the quarter, including payments, the platform and member activity.
Active members totaled 10.9 million in the third quarter, up 20% from the same period a year earlier. Chime said it added about 500,000 members compared with the second quarter, and 1.8 million net active members over the past twelve months. In a product update, the company said it made Chime Invest available to all members and launched Visa Flex, and began testing a new credit line for Chime Prime members. It also plans to launch an unsecured credit card in 2027. These steps place product expansion alongside customer-base growth among the features of the company's activity, while the stock's addition to the index remains scheduled for November 18.
Chime raised its fourth-quarter revenue outlook to a range of $757 million to $767 million, representing year-over-year growth of 27% to 29%. It also expects 2026 revenue of $2.792 billion to $2.802 billion, with annual growth of 28%. On banking expansion, the company maintained its expectation of completing the acquisition of Stride Bank in the first half of 2027, subject to regulatory approvals and closing conditions. Chime expects net annual after-tax synergies to exceed $100 million. The stock's addition in November is a near-term step for the company, while completion of the Stride Bank deal remains a later, conditional milestone.