• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Why SoFi (SOFI) Is Down 8.4% After Raising Guidance But Absorbing Higher Loan Losses

    Simply Wall St·07/30/2026 02:14:04
    Listen to the news
    • In the past week, SoFi Technologies reported second-quarter 2026 results with revenue rising to US$1,140.53 million and net income to US$156.59 million, while net charge-offs increased to US$204.51 million from US$160.28 million a year earlier.
    • The company also raised its full-year revenue outlook and delivered record member and loan growth, even as it chose to reinvest incremental revenue rather than upgrade its profit guidance.
    • Next, we’ll examine how record loan originations alongside higher net charge-offs may reshape SoFi’s pre-existing investment narrative and risk profile.

    We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.

    SoFi Technologies Investment Narrative Recap

    To own SoFi, you need to believe its “everything app” can turn rapid member and product growth into durable, diversified profits without letting credit risk get away from it. The latest quarter supports the growth side of that story, with revenue and net income up sharply, but the jump in net charge-offs to US$204.51 million keeps credit quality and underwriting discipline front and center as the key near term risk and catalyst.

    Among recent developments, SoFi’s record US$14.8 billion in quarterly loan originations is most relevant here. That surge in lending sits alongside higher net charge-offs, sharpening the trade-off between chasing volume and preserving asset quality. How well SoFi balances this will likely matter more for the next leg of the story than headline revenue beats or the raised full year sales outlook.

    Yet behind the strong top line, investors should be aware of the growing tension between rapid loan growth and...

    Read the full narrative on SoFi Technologies (it's free!)

    SoFi Technologies' narrative projects $6.8 billion revenue and $1.4 billion earnings by 2029.

    Uncover how SoFi Technologies' forecasts yield a $21.00 fair value, a 38% upside to its current price.

    Exploring Other Perspectives

    SOFI 1-Year Stock Price Chart
    SOFI 1-Year Stock Price Chart

    Some of the lowest rated analysts were assuming SoFi’s revenue would grow about 15% a year to roughly US$6.0 billion by 2029, with earnings near US$1.0 billion, yet they still saw high regulatory and competitive pressures as serious threats compared with the more optimistic focus on member growth and fee income.

    Explore 33 other fair value estimates on SoFi Technologies - why the stock might be worth over 2x more than the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    • A great starting point for your SoFi Technologies research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free SoFi Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SoFi Technologies' overall financial health at a glance.

    Curious About Other Options?

    Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.