SoFi Reports Strong Growth but Shares Fall After Earnings Release

Shares of SoFi Technologies (NASDAQ: SOFI) experienced a decline on Tuesday, despite the fintech company reporting robust growth in its latest earnings report. The stock fell approximately 2% to $29.79 during afternoon trading, following a brief rise that saw shares reach a high of $31.60. This pullback occurred even after the company exceeded Wall Street expectations and raised its full-year forecasts.

In the third quarter of 2025, SoFi posted adjusted net revenue of $950 million, marking a significant 38% increase compared to the previous year. The company also reported adjusted earnings per share (EPS) of $0.11, surpassing analyst predictions of around $0.08. During this quarter, SoFi gained 905,000 new members, bringing its total membership to approximately 12.6 million, a record high for the firm.

Strong Performance and Revised Expectations

SoFi adjusted its full-year guidance, now projecting adjusted net revenue of $3.54 billion and adjusted EBITDA of $1.04 billion. This is an increase from earlier forecasts of around $3.3 billion and $950 million, respectively. CEO Anthony Noto emphasized the company’s strong position, stating, “Our performance this quarter reinforces SoFi’s position as a one-stop shop for financial services. We continue to demonstrate strong operating leverage while expanding our member base at record levels.”

Despite the positive report, the decline in stock price can be attributed to profit-taking by investors. Analysts noted that SoFi shares had surged by an impressive 91% year-to-date, leading to heightened expectations. According to commentary from Investor’s Business Daily, one analyst remarked, “Even a strong quarter can disappoint when expectations are this high. SoFi has executed extremely well, but the market is now demanding sustained profitability and margin expansion.”

Market Challenges and Future Outlook

Investor caution has been amplified by broader challenges within the fintech sector. Rising interest rates, tightening consumer credit conditions, and potential regulatory scrutiny pose risks to growth as the industry moves into 2026. Nevertheless, many analysts maintain that SoFi’s fundamentals remain strong. The company is achieving record member growth, diversifying its revenue streams, and its banking unit is consistently profitable.

SoFi’s third-quarter results hit nearly all operational performance metrics—higher revenue, stronger earnings, and raised guidance. However, the decline in stock price highlights the impact of high expectations and valuation pressures that can overshadow even strong financial results. For long-term investors, this pullback may represent a temporary pause rather than a significant downturn, as SoFi continues to work toward its ambition of becoming a leading digital financial hub.