SoFi Just Posted Record Growth and Profitability -- So Why Is the Stock Down 10%?

SoFi Technologies (SOFI) dropped approximately 10% despite posting second-quarter revenue of $1.2 billion, up 43% year-over-year, and beating analyst expectations. The fintech also added 1.1 million new members and delivered earnings per share of $0.12, both exceeding forecasts.

The selloff centered on management's unchanged profitability outlook. While SoFi raised full-year revenue guidance, the company held adjusted EBITDA and EPS targets flat. Management cited expectations for two rate hikes rather than rate cuts as the reason for maintaining conservative earnings projections, a shift that undercut investor sentiment despite operational strength.

The divergence between accelerating top-line growth and stagnant profit guidance signals concern about margin compression in a higher-rate environment. SoFi's lending-heavy business model makes it particularly sensitive to Federal Reserve policy, and the company's revised rate assumptions suggest management sees headwinds that will offset revenue gains in the near term.