Shares of SoFi Technologies fell sharply despite the company reporting strong earnings in the first quarter.
According to market reports, SoFi met earnings expectations and slightly beat revenue forecasts, reporting earnings of 12 cents per share and revenue of $1.1 billion.
This led to a 100 percent increase in earnings and a 41 percent increase in revenue compared to a year earlier.
The company also added more than one million new members, taking its total to 14.7 million.
However, investors reacted negatively to the weaker-than-expected outlook as SoFi projected second-quarter revenue growth of about 30 percent, below Wall Street expectations.
Analysts expressed concerns about key business areas. Truist analyst Matthew Codd told Bloomberg: “2026 guide was unchanged while Q2 guide is below Street par (key performance metrics), most on adjusted net income.”
“(Q1) Loan platform fees from the loan platform business came in well below our expectations ($138 million vs. expected $189 million)”, he added, adding,
William Blair analyst Andrew Jeffrey also noted the slow activity during a conversation with the outlet: “Platform volume was only $3 billion, down about $700 million sequentially, and well below our $4 billion estimate.”
Following the results, SoFi shares fell more than eight percent in early trading.
