SoFi Technologies saw sharp pressure on its shares in early trading Wednesday, with the stock sliding as much as 13% after the company reported quarterly earnings that highlighted weakness in its technology platform business and missed expectations on key revenue metrics.
The fintech firm said revenue from its technology platform segment — which includes banking-as-a-service infrastructure and related offerings — fell 27% to $75 million during the quarter. The company attributed the decline largely to the exit of a major client that fully left the platform before the end of last year.
That customer has been identified in regulatory filings as Chime, which began transitioning off SoFi’s infrastructure earlier than previously expected. Analysts have pointed to that loss as a meaningful drag on the segment, although some have argued the impact may be overstated in the long term.
The broader results painted a mixed picture for SoFi Technologies. While total fee-based revenue rose 23% year over year to $387 million, it still fell short of analyst expectations of $405 million, weighed down by weaker performance in its financial services division, which includes investing and credit card products.
Despite the misses, SoFi delivered strong overall growth. Adjusted net revenue climbed 41% to a record $1.1 billion, beating estimates, while adjusted EBITDA surged 62% to $340 million. Net income on a reported basis reached $167 million, or $0.12 per share, in line with expectations.
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Chief Executive Anthony Noto described the quarter as “remarkable” during the earnings call, emphasizing continued growth across the company’s lending and financial services segments.
However, investor sentiment turned negative following the results. The stock has now fallen roughly 30% year to date, reflecting broader concerns about credit quality, platform stability, and slowing momentum in certain business lines.
Additional pressure has come from activist short seller Muddy Waters, which earlier this year disclosed a short position in SoFi. The firm alleged aggressive accounting practices and potential off-balance-sheet risks, claims SoFi has strongly denied, calling them misleading and stating it may pursue legal action.
Concerns about consumer credit exposure also remain a key overhang for investors. SoFi reported higher net charge-offs in its student and personal loan portfolios during the quarter, though its overall net charge-off ratio improved slightly to 2.07%, compared with 2.37% a year earlier, as its loan book expanded by 38%.
Analysts remain divided on the outlook. William Blair’s Andrew Jeffrey said the market is likely to react negatively to the results, citing weaker fee-based revenue, rising charge-offs, and management’s decision not to raise guidance. Still, he added that downside risk may be limited given the company’s broader growth trajectory.
On the positive side, lending remains a core growth driver. Revenue from SoFi’s lending platform jumped 55% to $642 million, supported in part by partnerships with private credit firms such as Blue Owl Capital and Sixth Street Partners, which provide capital for loan originations.
CEO Noto said demand from lending partners remains strong, noting that SoFi is not currently seeing deterioration in private credit performance.
As SoFi continues to expand its product ecosystem amid a shifting regulatory environment in the United States, investors are weighing strong revenue growth against lingering concerns about credit risk and the stability of its technology platform business.
