TenQ

The Chime story

Chime is a payments-led financial technology company whose proposed acquisition of Stride Bank raises the question of whether owning a bank can strengthen its role as members’ primary financial account.

Chime stock reportTenQ Score 11/36 · every chart and check from its filings
  • $29.67share price, last close
  • $11.2Bmarket value
  • 11/36TenQ Score checks passed

The story in brief

  • Bank ownership planned. In September 2026, Chime agreed to acquire longtime partner Stride Bank for $590 million in cash, bringing banking infrastructure into its platform if completed.
  • Engagement drives revenue. In the quarter to June 2026, Active Members grew 20% to 10.4 million and average revenue per Active Member grew 6% to $260, with Chime Prime contributing to both.
  • Quarterly profits emerge. Chime reported $28 million in net income in the quarter to June 2026, its second consecutive quarter of GAAP profitability, while its last twelve months net margin remained -0.7%.

What drives the business

  • Chime primarily earns revenue when members use its branded debit and credit cards, while paycheck deposits support recurring spending and repayment of liquidity products offered through The Bancorp Bank, N.A. and Stride Bank, N.A.
  • The September 2026 agreement to acquire Stride Bank for $590 million in cash would turn a partner of more than seven years into a wholly owned bank subsidiary, with Chime expecting more than $100 million in net synergies from the combination.
  • In the quarter to June 2026, payments revenue grew 17% to $430 million and platform-related revenue grew 48% to $240 million, with Chime Prime members generating more than double the average Active Member’s revenue.
  • MyPay originations reached $4.5 billion and generated $73 million in transaction profit in the quarter to June 2026, while Instant Loans originations grew nearly 70% from the preceding quarter to $300 million.
  • Chime Enterprise adds an employer distribution channel, with newly signed partners Allied Universal and a large national retailer together employing more than 350,000 people across the United States.

What the price assumes

The growth embedded in Chime’s price is not measured because TenQ does not run a reverse DCF for finance industry classifications, where free cash flow may not measure earnings.

Chime trades at 4.3x sales against TenQ’s check of under 2.5x, with $2.5 billion in revenue over the last twelve months.

Revenue growth of 26.4% over the last twelve months fell short of TenQ’s sector growth bar of 34.4%, despite the expansion in members and products.

What could change the story

  • The proposed $590 million cash acquisition represents a substantial commitment against Chime’s $1.1 billion in cash and short-term investments, and the expected synergies remain an outcome to establish.
  • Until the acquisition closes, Chime continues to depend on its bank partnerships, and disruption to either relationship could prevent it from operating in its existing form.
  • Changes to interchange rules or card network fees could reduce payments revenue, while weaker member retention or engagement could slow both card spending and product adoption.
  • The -2.1% operating margin over the last twelve months fails TenQ’s profitability comparison, and $282 million in stock-based pay remains significant alongside $312 million in free cash flow over that period.
  • Failures at third-party providers could disrupt critical services despite Chime’s investment in its own processing platform.

What to watch next

  • For the third quarter of 2026, Chime expects revenue between $680 and $690 million and adjusted EBITDA between $105 and $110 million, with an adjusted EBITDA margin between 15% and 16%.
  • For the full year 2026, Chime expects revenue between $2.725 and $2.745 billion and adjusted EBITDA between $465 and $475 million, with an adjusted EBITDA margin of 17%.
  • Member growth and revenue per Active Member will show whether Chime Prime’s engagement gains persist, while MyPay’s 0.9% loss rate in the quarter to June 2026 provides a reference as liquidity products expand.
  • Further releases can establish progress toward completing the Stride acquisition and whether Instant Loans meets Chime’s expectation of exiting the third quarter of 2026 with an annualized revenue run rate of more than $100 million.

Sources

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