Chime Financial shares rise 10.5% after $590 million Stride Bank acquisition agreement

Chime Financial (NASDAQ:CHYM) shares rose 10.5% in premarket trading on Wednesday after the company announced a definitive agreement to acquire Stride Bank, N.A. for $590 million in cash and raised its revenue guidance.

Stride Bank has served as Chime’s primary banking partner for more than seven years. Following completion of the transaction, the bank is expected to be renamed Chime Bank, N.A. and operate as a wholly owned subsidiary of Chime.

The acquisition remains subject to approvals from the Office of the Comptroller of the Currency and the Federal Reserve.

Chime expects more than $100 million in net synergies

Chime expects the transaction to generate more than $100 million in net synergies through the elimination of sponsor bank fees and the expansion of its lending capabilities across its member base.

The company also expects the acquisition to be immediately accretive to earnings per share.

The transaction would give Chime a fully chartered banking subsidiary, changing its existing structure under which it relies on banking partners to provide certain services.

Revenue guidance increased for third quarter and 2026

Alongside the acquisition announcement, Chime raised its third-quarter revenue forecast to $705 million.

The company also increased its full-year 2026 revenue guidance to between $2.76 billion and $2.77 billion, representing expected year-over-year growth of approximately 26% to 27%.

Several analysts revised their views following the announcement. Morgan Stanley raised its price target to $40 and maintained an Overweight rating, while Loop Capital initiated coverage with a Buy rating and a $45 price target.

UBS increased its price target to $31 while maintaining a Neutral rating.

Chime shares advance in premarket trading

Chime’s 10.5% premarket gain came as the broader U.S. equity market showed limited movement, with the S&P 500 broadly unchanged and Nasdaq futures slightly higher.

In the previous session on September 8, the Dow fell more than 1% and the S&P 500 also declined as markets assessed higher oil prices and geopolitical developments in the Middle East.

Chime shares moved above their previous 52-week high of $34.44 in premarket trading following the acquisition announcement and updated revenue guidance.

Chime Financial  stock price