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SoFi shares fall after second-quarter earnings and guidance updates
SoFi reported net revenue of $1.2 billion, with loan originations up 69% to $14.8 billion, but investors focused on cost concerns even after raising full-year sales guidance.
SoFi stock fell 9% on Wednesday morning after the company reported second-quarter earnings, despite delivering its eighth straight quarter of record revenue and increasing its full-year sales guidance. Yahoo Finance said the fintech bank posted $1.2 billion in net revenue, while net income rose 61% year over year to $157 million and beat analyst expectations. Adjusted earnings were $0.12 per share versus an expected $0.11.
SoFi also raised its full-year adjusted revenue guidance to a range of $4.75 billion to $4.85 billion, but it left its adjusted EPS forecast unchanged at $0.60. According to Yahoo Finance, CEO Anthony Noto called the quarter exceptional, while CFO Chris Lapointe pointed to spending tradeoffs, saying the company has many growth areas to invest in versus adding more profitability.
The company’s guidance assumes one to two 25 basis point hikes in the Federal Reserve’s benchmark interest rate in 2026, versus the two cuts it expected earlier this year, reflecting uncertainty in the Fed’s path. SoFi’s lending momentum also accelerated, with total loan originations up 69% to $14.8 billion, personal loan originations up 54% to $10.7 billion, and student loan originations nearly tripling to $2.7 billion.
Deposits rose 37% from the prior year period, helping support the growth, and SoFi’s loan platform business funded $3.1 billion of new loans in the quarter, including through private credit investors Blue Owl Capital and Fortress Investment Group. Yahoo Finance added that the platform funding was only slightly higher than the previous quarter, suggesting most lending growth came from loans funded by SoFi itself.
SoFi’s management also addressed why it carries more loans on its balance sheet, framing it as a way to secure more visible future revenue. Yahoo Finance reported that the company’s credit quality remained stable, as investors weighed added credit risk alongside the faster lending volumes.