SoFi (SOFI) stock fell more than 8% on Wednesday morning after it reported second quarter earnings.
Despite posting its eighth consecutive quarter of record revenue and raising full-year sales guidance, concerns swirled around its costs and soaring consumer lending
The fintech bank reported $1.2 billion in net revenue. Net income beat analyst estimates, rising 61% from the year-ago period to $157 million, or $0.12 adjusted earnings per share (EPS). Analysts were expecting $0.11 per share. “We had nothing short of an exceptional quarter,” CEO Anthony Noto said during the Wednesday morning earnings call.
SoFi also raised its adjusted revenue guidance for the full year to between $4.75 billion and $4.85 billion. But it left its adjusted EPS forecast unchanged at $0.60, raising questions about its added spending. “There are just too many large, attractive growth areas for us to invest in versus adding even more profitability,” SoFi CFO Chris Lapointe told analysts. “The incremental revenue gives us additional flexibility to invest in initiatives that we believe will drive long-term growth.” The bank’s guidance also 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. SoFi’s lending surge comes as the Fed’s path forward remains uncertain.