SoFi Technologies (NASDAQ: SOFI) shares have fallen 32% in 2026 as of August 12, trading 45% below their peak from last November, despite strong underlying financial performance.
Total loan originations reached $14.8 billion in the second quarter ended June 30, a 69% increase year over year, with personal loans accounting for a record $10.7 billion of that figure.
The company reported revenue growth of 43% year over year last quarter, while net income soared 61% compared to the same period in 2025.
SoFi also added 1.1 million net new customers in the quarter, bringing its total membership base to 15.8 million users across its digital banking platform.
Personal loans remain the central pillar of SoFi’s lending business, but as an unsecured product with shorter terms and higher monthly payments, they carry inherent credit risk worth examining closely.
Of the $10.7 billion in personal loans originated during the second quarter, “$7.6 billion was originated for our balance sheet,” said chief financial officer Chris Lapointe on the Q2 2026 earnings call.
The remaining portion of personal loan originations was sold through SoFi’s loan platform segment, effectively transferring a share of the credit risk to third-party buyers.
SoFi’s balance sheet currently categorizes $27.6 billion, or 100%, of its personal loans as held for sale, though the precise split between retained and sold loans likely depends on market demand and capital ratio requirements.
As of June 30, personal loans on SoFi’s balance sheet totaled $28 billion, representing 57% of the company’s total lending book, meaning significant exposure remains even after loan sales and securitizations.
On the positive side, the net charge-off rate for personal loans improved to 3.7% in Q2, down from 4.5% in the year-ago period, suggesting the quality of the loan portfolio is strengthening.
Despite its operational momentum, SoFi faces the same macroeconomic vulnerability as any lender, with a potential recession representing the most significant threat to its credit performance and overall business stability.
