Chime Financial Announces $590 Million Acquisition of Stride Bank
Chime Financial (NASDAQ:CHYM) disclosed that it has entered into a definitive agreement to acquire Stride Bank, a nationally chartered institution founded in 1913 and based in Enid, Oklahoma, for a cash consideration of $590 million. The announcement triggered a 6% rise in Chime’s shares in after‑hours trading on Tuesday.
Upon closing, Stride will be renamed Chime Bank and will operate as a wholly owned subsidiary, granting Chime a national bank charter and an established banking infrastructure that has served as its sponsor bank partner for more than seven years. The boards of directors of both Chime and Stride have unanimously approved the transaction.
The deal is valued at approximately 1.5 times Stride’s tangible book value and is expected to be immediately accretive to Chime’s earnings per share. Chime anticipates realizing net synergies exceeding $100 million, driven by reductions in sponsor‑bank fees, the expansion of its lending product suite, and a lower overall cost of funds.
Financing for the acquisition will be sourced entirely from cash on Chime’s balance sheet; no additional capital contributions are anticipated. The transaction is subject to customary closing conditions, including approvals from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, and is slated to close in the first half of 2027.
Chime currently serves more than 10 million active members. In conjunction with the acquisition, the company raised its third‑quarter revenue guidance to $705 million, reflecting year‑over‑year growth of roughly 30%, and adjusted EBITDA guidance to a range of $117 million to $120 million, corresponding to an EBITDA margin of about 17%.
For the full fiscal year, Chime now projects revenue of $2.76 billion to $2.77 billion, indicating year‑over‑year growth of 26% to 27%, and adjusted EBITDA of $481 million to $489 million, yielding an EBITDA margin between 17% and 18%.