SoFi Technologies (NASDAQ: SOFI) shed more than 15 percent of its market value on Wednesday after the digital bank delivered its best revenue quarter in company history but declined to raise its full year earnings guidance, disappointing investors who had quietly priced in an upgrade following a string of record setting results.
The company reported Q1 2026 adjusted net revenue of $1.1 billion, up 41 percent year on year and ahead of the Wall Street consensus of $1.05 billion, marking the second consecutive quarter above the billion dollar threshold.
Adjusted EBITDA climbed 62 percent to $340 million at a 31 percent margin, while GAAP net income more than doubled to $166.7 million from the same period a year earlier. Loan originations hit a record $12.2 billion, personal loan growth came in at 51 percent, and student loan originations surged 119 percent. SoFi added a record 1.1 million new members in the quarter, bringing total membership to 14.7 million.
Earnings per share of $0.12 matched consensus exactly, ending a run of headline earnings beats, though CEO Anthony Noto described the result on the earnings call as the company’s 18th consecutive quarter satisfying the Rule of 40, with a combined revenue growth and EBITDA margin score of 72.
The problem was guidance. Management reiterated its full year 2026 adjusted revenue target of approximately $4.655 billion and EPS of around $0.60, unchanged from prior communications. Analysts and retail investors had positioned for an uplift given the Q1 beat.
The Technology Platform segment added further pressure, with revenue falling 27 percent year on year to $75.1 million due to the exit of Chime, a major client that completed its transition off SoFi’s Galileo infrastructure before the end of 2025. Total fee-based revenue of $387 million rose 23 percent year on year but still fell short of the $405 million estimate.
William Blair analyst Andrew Jeffrey said the market was likely to react negatively, pointing to weaker fee revenue, rising charge-offs, and the decision not to lift the outlook.
SoFi is now down approximately 30 percent year to date, and still trading well below its 52 week high of $32.73. The stock closed Wednesday at $15.53, implying a forward price to earnings multiple of approximately 26 times based on the $0.60 EPS guidance.
Deposits reached $40.24 billion and now fund more than 90 percent of liabilities, while net interest margin improved to 5.94 percent, reflecting the underlying strength of the balance sheet even as the platform business contracts from the Chime departure.
Ewan is a reporter at the Foreign Policy Journal, primarily covering US current affairs and news related to NYSE-listed stocks. He has over two decades of experience in journalism and digital publishing.
