Chime Financial Shares Surge on Stride Bank Acquisition, Raised Guidance

Shares of Chime Financial surged 10.5% in pre-open trading after the neobank announced a transformative deal to acquire Stride Bank, N.A. for $590 million in cash. The company also raised its revenue outlook for the third quarter and full year, providing a powerful dual catalyst for the stock.

A Strategic Shift to a Bank Charter

The acquisition marks a pivotal moment for Chime, transitioning it from a financial technology company reliant on banking partners to a fully chartered banking institution. Stride Bank has been Chime’s primary partner for over seven years.

Upon closing, Stride will be rebranded as Chime Bank, N.A. and operate as a wholly owned subsidiary. The transaction is pending regulatory approval from the Office of the Comptroller of the Currency and the Federal Reserve.

Financial Impact and Upgraded Outlook

Chime outlined compelling financial benefits from the deal, which it described as immediately accretive to earnings per share. The company anticipates generating more than $100 million in net synergies by eliminating sponsor bank fees and expanding its ability to lend directly to its customer base.

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Reinforcing the positive news, Chime also lifted its financial guidance:

• Third-Quarter Revenue: Outlook raised to $705 million.
• Full-Year 2026 Revenue: Guidance increased to a range of $2.76 billion to $2.77 billion.

Wall Street Reaction

Investors and analysts reacted positively, pushing the stock price well past its previous 52-week high of $34.44. The move was driven entirely by company-specific news, as the broader S&P 500 was trading flat.

Several investment banks updated their views on the stock. Morgan Stanley raised its price target to $40, Loop Capital initiated coverage with a Buy rating and a $45 target, and UBS increased its target to $31.