Chime Financial Shares Jump After $590 Million Stride Bank Acquisition Agreement

Shares of Chime Financial (NASDAQ:CHYM) advanced 6% in after-hours trading Tuesday after the company announced it has entered into a definitive agreement to purchase Stride Bank for $590 million in cash.

Stride Bank, which holds a national bank charter, has served as Chime's banking partner for more than seven years. Upon completion of the transaction, Stride will become Chime Bank and operate as a wholly owned subsidiary of Chime.

Chime stated that the deal is expected to be immediately accretive to earnings per share. The company anticipates more than $100 million in net synergies, driven by savings on sponsor bank fees, expansion of lending products, and a lower cost of funds.

The acquisition price represents approximately 1.5 times Stride's tangible book value. Chime plans to fund the purchase with cash already on its balance sheet, with no additional capital contribution expected.

Founded in 1913 and headquartered in Enid, Oklahoma, Stride provides Chime with a national bank charter and established banking infrastructure. Chime currently serves more than 10 million active members.

For the third quarter, Chime raised its revenue guidance to $705 million, implying year-over-year growth of approximately 30%. It also projects adjusted EBITDA of $117 million to $120 million, a margin of roughly 17%.

For the full year, the company now expects revenue of $2.76 billion to $2.77 billion, representing year-over-year growth of about 26% to 27%, and adjusted EBITDA of $481 million to $489 million, a margin of 17% to 18%.

The transaction is expected to close in the first half of 2027, pending approval from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, along with other customary closing conditions. The boards of directors of both companies have unanimously approved the deal.

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