SoFi Technologies (SOFI) shares fell more than 9% on Wednesday even as the fintech company reported stronger-than-expected second-quarter earnings and lifted its full-year revenue outlook.
The company generated revenue of $1.22 billion for the quarter ended June 30, a 42% increase from a year earlier and well ahead of analyst expectations of $1.13 billion.
Adjusted earnings came in at $0.12 per share, topping the consensus estimate of $0.11, while pretax profit totaled $204.3 million, representing a 16.8% margin.
SoFi continued to attract customers at a rapid pace, with membership rising 35% year-over-year to a record 15.8 million total members in the second quarter.
Total loan originations reached a record $14.8 billion, up more than $2.6 billion from the previous quarter, reflecting broad strength across the company’s lending business.
SoFi also raised its full-year 2026 adjusted net revenue outlook to between $4.75 billion and $4.85 billion, above the analyst consensus of $4.7 billion and implying 32% to 35% year-over-year growth.
Despite the strong results, investors focused on the company’s decision to hold its adjusted EBITDA guidance flat at approximately $1.6 billion, with a margin of 33% to 34%.
In a CNBC interview following the earnings announcement, CEO Anthony Noto said the bank’s expectations have shifted to two rate hikes this year compared with two rate cuts anticipated at the beginning of the year, making the company hesitant to raise EPS guidance.
Noto was upbeat about the broader trajectory, saying, “2026 is shaping up to be a defining year, and our second quarter results mark a clear inflection point for SoFi.”
Analysts also pointed to lofty investor expectations heading into the report, second-half execution risks, and Federal Reserve uncertainty as additional factors weighing on the stock.
The selloff has the characteristics of a classic “sell the news” reaction, as SOFI shares had climbed strongly into the earnings release before traders locked in gains.
After the decline, SOFI traded at its lowest price-to-book valuation in more than a year and at roughly 23 times forward earnings, a relatively modest multiple given the company’s top-line growth rate exceeding 40%.
