{"id":4639,"date":"2026-04-29T15:15:45","date_gmt":"2026-04-29T15:15:45","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4639"},"modified":"2026-04-29T15:15:45","modified_gmt":"2026-04-29T15:15:45","slug":"sofi-stock-drops-12-despite-strong-q1-earnings-as-outlook-disappoints","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4639","title":{"rendered":"SoFi stock drops 12% despite strong Q1 earnings as outlook disappoints"},"content":{"rendered":"
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SoFi Technologies reported strong first-quarter results, with profit and revenue surpassing expectations, but its shares fell sharply after the company issued a slightly weaker-than-expected outlook for the current quarter.<\/p>\n

The financial services firm said it expects adjusted revenue growth of around 30% in the second quarter, just below analyst estimates of 31%. <\/p>\n

The cautious guidance appeared to dampen investor sentiment, sending shares down by over 12% in early trading on Wednesday. <\/p>\n

While the company reaffirmed its full-year outlook, it stopped short of raising its forecast despite the upbeat quarterly performance, which some investors had anticipated.<\/p>\n

Strong growth in lending and membership<\/h2>\n

SoFi posted a net profit of $167.1 million, or 12 cents per share, for the quarter ended March 31, up from $71.5 million, or 6 cents per share, a year earlier. <\/p>\n

Adjusted earnings came in at 12 cents per share, in line with analyst expectations.<\/p>\n

Revenue rose 43% year-on-year to $1.10 billion, beating the $1.05 billion estimate from analysts surveyed by FactSet.<\/p>\n

The company\u2019s growth was largely driven by its lending business, which continued to expand at a rapid pace. <\/p>\n

Total loan originations reached a record $12.2 billion, marking a significant increase from the previous quarter.<\/p>\n

Student-loan originations more than doubled to $2.6 billion, while home-loan originations also surged to $1.2 billion. <\/p>\n

Personal loans remained a key contributor, with originations hitting $8.3 billion, another record for the company.<\/p>\n

SoFi also reported improved credit performance, with annualized net charge-offs in its personal loan segment declining by 28 basis points compared with the previous year.<\/p>\n

Membership growth remained robust, with the company adding 1.1 million new users during the quarter. <\/p>\n

Total membership rose 35% year-on-year, reflecting continued traction across its platform.<\/p>\n

Fee business and outlook raise concerns<\/h2>\n

Despite strong lending momentum, some analysts flagged concerns around SoFi\u2019s fee-based businesses. <\/p>\n

William Blair analyst Andrew Jeffrey noted that the company \u201cuncharacteristically did not flow through\u201d its recent upside into its forward guidance.<\/p>\n

He pointed to weakness in SoFi\u2019s loan platform business, where volume declined by roughly $700 billion sequentially to $3 billion, falling short of expectations. <\/p>\n

\u201cOur sense is that private credit woes are hitting home,\u201d Jeffrey said.<\/p>\n

Fee-based revenue, which includes referral, interchange and brokerage income, has been an important growth pillar for SoFi, but signs of softness in this segment have raised questions about sustainability.<\/p>\n

Expansion into digital assets<\/h2>\n

Beyond lending, SoFi continues to diversify its business model. <\/p>\n

During the quarter, the company launched a stablecoin, SoFiUSD, and expanded its capabilities in digital asset settlement.<\/p>\n

\u201cOur strategic entry into new areas like digital assets alongside the strong growth in our existing businesses are strengthening and diversifying our platform,\u201d Chief Executive Anthony Noto said in a statement.<\/p>\n

Noto added that the company plans to continue investing in product innovation and customer experience as it seeks to sustain long-term growth.<\/p>\n

<\/h3>\n<\/p>\n

The post SoFi stock drops 12% despite strong Q1 earnings as outlook disappoints<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

SoFi Technologies reported strong first-quarter results, with profit and revenue surpassing expectations, but its shares fell sharply after the company issued a slightly weaker-than-expected outlook for the current quarter.The financial services firm said it expects adjusted revenue growth of around 30% in the second quarter, just below analyst estimates of 31%. The cautious guidance appeared…<\/p>\n","protected":false},"author":1,"featured_media":4640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4639"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4640"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}