SoFi Technologies (NASDAQ: SOFI) has had a difficult year, with its stock price falling 34% year to date after a three-year run of major gains.

The fintech company, which obtained a bank charter in 2022 through the acquisition of a smaller bank, is set to report third-quarter earnings on October 27.

SoFi lost a major client, Chime (CHYM), at the end of last year, after Chime applied for its own bank charter, creating a meaningful revenue hit.

That client departure contributed significantly to the sustained sell-off that has dragged SoFi shares down throughout the year.

Despite the decline, SoFi now trades at 21 times forward earnings, a valuation that some analysts and investors may find attractive relative to its growth trajectory.

The company raised its revenue guidance for the fiscal year, signaling projected growth of between 32% and 35%, a figure that reflects continued expansion of its core lending and financial services businesses.

However, SoFi did not raise its earnings outlook alongside the revenue guidance upgrade, prompting concern among some investors that operating expenses may be running higher than expected.

The broader banking sector has faced its own headwinds this quarter, as the record pace of investment banking activity seen in the first half of the year has slowed considerably.

The Federal Reserve raised interest rates for the first time in three years at its September meeting, a move that could pressure banks through higher deposit costs and reduced loan demand.

SoFi is not a traditional bank stock, and its fintech origins mean its business model responds to rate changes and competitive dynamics somewhat differently than conventional lenders.

Shares could see upward momentum in the days leading into the October 27 earnings date, driven by the relatively cheap valuation, but a sell-the-news reaction following the report remains a genuine risk.

Investors considering a position should weigh the short-term volatility around the earnings date against the company’s longer-term growth story and its now more modest price tag.