Key Takeaways
- First-quarter revenue reached $1.1 billion, representing a 42.8% year-over-year increase
- Earnings per share on an adjusted basis hit $0.12, meeting Wall Street forecasts
- Fiscal 2026 revenue projection of $4.655 billion marginally exceeded consensus, failing to impress the market
- Second-quarter projections for revenue expansion and EBITDA margins fell short of analyst targets
- Shares declined approximately 8.5% during pre-market hours after the earnings announcement
SoFi Technologies delivered a solid first-quarter performance that surpassed revenue forecasts, yet investors sent shares tumbling. The issue wasn’t the quarterly results — it was what management projected for the road ahead.
The fintech platform reported quarterly revenue of $1.1 billion, marking a 42.8% climb from the prior-year period and exceeding Wall Street’s $1.05 billion consensus estimate by 4.7%. Adjusted earnings per share matched expectations at $0.12. The company’s adjusted EBITDA reached an all-time high of $340 million, surging 62% with margins expanding to 31%.
Membership growth remained robust, with SoFi onboarding a record 1.1 million new members during the three-month period. The platform’s total membership base now exceeds 14.7 million, reflecting 35% annual growth. Product holdings across the customer base jumped to 22.2 million, climbing 39%.
Lending activity proved particularly impressive. Overall loan originations climbed to an unprecedented $12.2 billion, up 68% from the same quarter last year. Personal lending dominated with $8.3 billion in originations, while student loans contributed $2.6 billion and mortgage products added $1.2 billion.
Chief Executive Anthony Noto characterized the quarter as “excellent,” highlighting sustainable growth momentum and robust profitability. He emphasized that 43% of new product adoptions came from the existing customer base, demonstrating increased cross-platform utilization.
Forward Projections Underwhelm Investors
While the quarterly performance impressed, management’s future outlook triggered the share price decline. The company’s full-year 2026 revenue forecast of $4.655 billion barely edged past the analyst consensus of $4.651 billion. This negligible beat failed to generate investor enthusiasm.
For the second quarter, SoFi projected adjusted net revenue growth of approximately 30% alongside an adjusted EBITDA margin near 30%. Both metrics landed below Wall Street’s expectations, triggering the selloff.
Shares tumbled 8.45% in pre-market activity, retreating to $16.83.
Annual Objectives Unchanged
Management reaffirmed its full-year fiscal 2026 objectives. The company anticipates adjusted EBITDA of approximately $1.6 billion and adjusted net income near $825 million. This translates to adjusted earnings per share of about $0.60.
First-quarter pre-tax profit totaled $199.6 million, yielding an 18.1% margin.
Looking at the longer trajectory, SoFi has expanded revenue at a 39.2% compound annual growth rate over five years. The two-year annualized pace stands at 33.7%, moderately below the extended-term trend yet still demonstrating vigorous expansion.
Following the earnings release, shares traded at $16.83, down from the $18.36 pre-announcement level.
