NEW YORK: Chime, the financial technology company that has become America’s most popular banking app, said Monday it has agreed to acquire its longtime banking partner Stride Bank for $590 million in cash, a move that will give the company direct control over its banking infrastructure.

The acquisition, approved unanimously by both companies’ boards, marks a significant shift for Chime (NASDAQ: CHYM), which has operated as a technology platform partnered with Stride and other banks. Upon closing, Stride will be renamed Chime Bank and operate as a wholly owned subsidiary.

“We founded Chime because mainstream America deserved better banking,” said Chris Britt, CEO and co-founder of Chime. “Our member-aligned, technology-driven strategy will remain the same. This acquisition will make our proven model even stronger.”

Accelerating Innovation and Reducing Costs

The combination of Chime’s proprietary AI technology stack, ChimeCore, with Stride’s national banking charter will create what the company describes as an end-to-end platform built for the AI era. Chime, which now serves more than 10 million active members, expects the integration to enable faster product development, improve system reliability and deepen customer trust.

Chime also expects to realize more than $100 million in net synergies from the deal, driven by the elimination of partner-bank fees, expansion of lending products and a lower cost of funds.

The company, which is profitable, expects the transaction to be immediately accretive to earnings per share and plans to fund the purchase from cash on its balance sheet.

Third Quarter and Full-Year Guidance Raised

Chime raised its financial guidance for the third quarter of 2026, now projecting revenue of $705 million, representing year-over-year growth of roughly 30%. The company expects adjusted EBITDA of $117 million to $120 million.

For the full year, Chime now anticipates revenue of $2.76 billion to $2.77 billion, up roughly 26% to 27% from the previous year, with adjusted EBITDA of $481 million to $489 million.

A Century-Old Partnership

Stride Bank, founded in 1913 and headquartered in Enid, Oklahoma, has served as Chime’s bank partner for more than seven years. The nationally chartered bank operates physical branches in Oklahoma and Salt Lake City and offers consumer and commercial banking, mortgage lending and wealth management services.

“Stride has spent more than a century serving customers and strengthening communities,” said Brud Baker, chairman and CEO of Stride Bank. “For seven years, we have seen firsthand how Chime puts members first and how seriously it takes its mission. That gives us real confidence in this combination and the future we can build together.”

Baker will continue to lead Chime Bank following the acquisition.

Community Commitment

Both companies emphasized their shared commitment to communities. Chime has pledged 1% of its equity to the Chime Scholars Foundation, which has provided nearly $10 million in scholarships to approximately 1,500 scholars over the past five years. The combined organization plans to expand its community impact nationwide.

Regulatory Approval and Closing

The transaction, valued at approximately 1.5 times Stride’s tangible book value, is expected to close in the first half of 2027. It remains subject to approval from the Office of the Comptroller of the Currency and the Federal Reserve Board, along with other customary closing conditions.

Morgan Stanley & Co. LLC served as exclusive financial advisor to Chime, with Wachtell, Lipton, Rosen & Katz providing legal counsel. Piper Sandler & Co. advised Stride, and McAfee & Taft served as legal counsel.

Chime expects to consolidate its banking activities at Stride following the closing and plans to keep its assets below $10 billion for the foreseeable future.