Chime (CHYM)
The desk's stance
On our research list, not on the slate.
What the company does
The fee-free challenger for everyone the big banks charge overdraft fees: a 2025 IPO built on early paycheck access and no-fee checking, running on partner-bank charters and interchange revenue rather than a lending book.
In short: Mobile banking and payments. Category: Digital Consumer Banking Platform. Sector: Technology, Software - Application.
G-Street Value and Score
G-Street Value: $32.20, computed Oct 18, 2026 (confidence: medium).
How we got there: 50% analyst leg $32.2 (1 analyst target, credibility- and freshness-weighted, after 8% optimism discount) + 50% GainStreet factor value $36.73 (5.66× sales vs growth band) — capped at the analyst leg; factors never out-bull the street. 4 analyst targets have no linked source and are shown but not counted.
G-Street Score: 70 out of 100 (Medium).
- Top-line growth & guidance: 22 of 32
- Margin power: 15 of 15
- Revenue visibility & quality: 5 of 11
- Profitability & balance sheet: 18 of 24
- Capital allocation & governance: 1 of 6
- Valuation, sentiment & momentum: 9 of 12
Our current thesis
Updated Oct 13, 2026
The thesis
- Acquiring Stride Bank secures national charter, eliminating sponsor fees and accelerating lending economics.
- Back-to-back GAAP profitable quarters confirm operating leverage across an 88.7% gross margin base.
- Strong liquidity with $1.16B cash and raised FY2026 revenue guidance exceeding $2.76B.
Risks
- Regulatory hurdles and capital requirements to clear OCC approval for Stride Bank integration.
- Heavy insider and private equity share sales create persistent technical supply overhang.
- Premium valuation relative to banking peers alongside debit interchange regulatory fee exposure.
What we're watching
- Q3 2026 earnings release on November 4, 2026, targeting $704M revenue estimate.
- Regulatory progress and OCC approval milestones for the $590 million Stride Bank deal.
- Technical price consolidation and support retention above the $27.00 to $28.00 range.
Latest
CHYM trades at $30.45, rebounding 15% over the past two weeks after pulling back from $35.55 highs following its announced $590 million cash acquisition of Stride Bank. Back-to-back GAAP profitable quarters and $308.9 million in trailing free cash flow highlight growing operational leverage ahead of Q3 earnings on November 4, 2026. However, sequential revenue growth moderated to 3.5% in Q2, while persistent post-IPO insider share liquidations limit near-term valuation multiple expansion.
Key numbers
As of Oct 16, 2026: market cap $11.2B · revenue growth +26.8% year over year · gross margin 88.7% · net margin -0.7% · next earnings Nov 4, 2026.
Analyst price targets
Published analyst targets we could trace to a named source.
- Deutsche Bank, Buy: $35 target (October 2026). Source: stockanalysis.com
On the Gainz Lab maps
Who it does business with
- Chime competes with Bank of America — Fee-free checking. Chime’s no-overdraft pitch targets the mass-market checking customer that Bank of America’s branch network was built on.