SoFi Technologies (NASDAQ: SOFI) delivered a blockbuster first quarter before watching its stock tumble as investors focused on an unchanged full-year outlook and heavier near-term spending plans.

For Q1 2026, SoFi Technologies (NASDAQ: SOFI) reported a 41% year-over-year increase in adjusted net revenue, a 39% increase in product growth, and a 35% increase in member growth, all of which were records for the company. Revenue came in at $1.1 billion against analyst estimates of $1.05 billion, with adjusted EPS of $0.12 doubling year-over-year. Total customers grew to 14.7 million while total assets on the balance sheet reached $40 billion.

Management guided to approximately 30% adjusted net revenue growth with an EBITDA margin near 30% and a 12 to 13% net income margin for the full year. Those are solid numbers, yet several analysts had modelled even stronger near-term profitability, and the gap triggered a sharp reset.

Needham cut its price target from $33 to $25 while remaining at Buy, citing a larger-than-expected revenue hit as a large tech client transitions away. Morgan Stanley slashed its target to $16 with an Underweight rating, pointing to Q2 guidance below prior assumptions and flagging heavier marketing and product spend in the first half.

CEO Anthony Noto described the first quarter as remarkable across every front and said it was the second consecutive quarter generating more than $1 billion in cash revenue. Noto also pointed to the company’s crypto expansion, including its own stablecoin SoFiUSD, as a clear opportunity to rewire payment infrastructure.

SoFi Technologies (NASDAQ: SOFI) also intends to take legal action against short-seller Muddy Waters Research, which published a report in March calling the company a financial engineering treadmill. The stock traded around $16.46 in early May, sitting in a 49% drawdown from its all-time high.

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