Chime's Profit Turn, Raised Outlook, and Stride Bank Deal Drive Gains
First GAAP Profit and Raised Guidance Chime reported its first-ever GAAP profitable quarter with EPS of $0.13 and revenue of $647.4 million, then raised full-year revenue guidance to $2.66–$2.69 billion. This proves the business can make money, which supports a higher stock price.
This is the fundamental shift from losses to profits that underpins the stock's re-rating.
Q2 Earnings Beat and 44% August Rally Q2 revenue grew 27% to $670 million, EPS swung to $0.07, and the stock rallied 44% in August. Management raised full-year revenue and EBITDA guidance again, showing the profit trend is accelerating and giving investors more confidence.
The Q2 beat and subsequent rally are the main new positive price catalyst this period.
$590 Million Stride Bank Acquisition Chime agreed to buy longtime partner Stride Bank for $590 million in cash, gaining its own bank charter. The deal is expected to add to earnings with over $100 million in synergies, and Chime raised Q3 and full-year guidance, sending shares up nearly 10% after hours.
This is the biggest new strategic move, directly boosting earnings power and investor sentiment.
X Money and Stablecoin Competition Elon Musk's X Money launched with a 6% APY and $10 million FDIC insurance, directly challenging Chime's deposit-gathering. Meanwhile, Chime is exploring stablecoin wallets as rivals like Klarna and Mastercard push into crypto rails, adding competitive pressure that could cap gains.
This is the main counterweight: new competitors threatening Chime's core deposit and payments business.