Shares of SoFi Technologies fell sharply despite the company reporting strong first quarter earnings.
According to market reports, SoFi met earnings expectations and slightly beat revenue forecasts, posting earnings of 12 cents per share and revenue of $1.1 billion.
That marked a 100 percent rise in earnings and a 41 percent increase in revenue compared to a year earlier.
The company also added more than one million new members, bringing its total to 14.7 million.
However, investors reacted negatively to a weaker than expected outlook as SoFi forecast second quarter revenue growth of around 30 percent, below Wall Street expectations.
Analysts raised concerns about key business areas. Truist analyst Matthew Coad said to Bloomberg: “The 2026 guide was unchanged while the Q2 guide is below the Street across (key performance metrics), most so on adjusted net income.”
“(Q1) loan platform fees from the Loan Platform Business came in well-below our expectations ($138 million vs. $189 million expected)”, he added,
William Blair analyst Andrew Jeffrey also noted slower activity, during a chat with the outlet: “Platform volume was just $3 billion, down about $700 million, sequentially, and well below our $4 billion estimate.”
Following the results, SoFi shares dropped more than eight percent in early trading.
