SoFi Technologies Posts Another Beat-and-Raise Quarter. Earnings May Quiet the Skeptics.

SoFi Technologies has faced a challenging year as sticky inflation and high interest rates have dampened fintech valuations. (Dreamstime)

Key Points

SoFi Technologies raises its full-year 2026 guidance and projects adjusted net revenue of about $5.04 billion.
The company expects its 2027 adjusted net revenue to grow 27% to around $6.4 billion, with adjusted earnings of 90 cents a share.
SoFi’s third-quarter revenue grows 44% to $1.4 billion, beating analysts’ consensus estimates of $1.25 billion.

SoFi Technologies posted yet another impressive quarter: an earnings beat, raised outlook for this year, and new guidance for 2027. Could this finally be enough to win over Wall Street skeptics?

SoFi raised its full-year 2026 guidance, saying it now expects adjusted net revenue of about $5.04 billion, up from a prior range of $4.75 billion to $4.85 billion. Management also projects adjusted earnings of 61 cents a share, slightly higher than the previous guidance of 60 cents a share.

The digital neobank also outlined preliminary guidance for 2027. During the year, SoFi expects adjusted net revenue to grow 27% to around $6.4 billion. Adjusted earnings are expected to reach 90 cents a share.

SoFi stock rose 4% to $15.02 in premarket trading Tuesday after closing down 1.1% at $14.46.

SoFi has faced a challenging year as sticky inflation and high interest rates have dampened fintech valuations. After losing a major client late last year, SoFi’s tech platform segment suffered a steep revenue decline, delaying its push into enterprise infrastructure.

In the third quarter, adjusted net revenue for SoFi’s technology platform segment fell 24% to $87.4 million, below analysts’ calls for $88 million. Management said this includes the impact from losing a major client that fully transitioned off the platform before Dec. 31, 2025. In the second quarter, that figure fell 23% from the year before, totaling $84.5 million, due to the same reasoning.

Meanwhile, adjusted net revenue for its financial services division grew 25% to $525 million in the third quarter, slightly beating analysts’ calls for $524 million. The business unit includes the company’s SoFi Invest offering and its branded credit card.

A key growth driver for SoFi has been its lending segment. Though analysts projected adjusted net revenue for that segment to total $719 million—down from $725 million in the second quarter—that figure reached $807 million in the third quarter, up 68% from a year earlier.

SoFi’s total revenue for the third quarter grew 44% to $1.4 billion, surpassing analysts’ consensus estimates of $1.25 billion. Adjusted earnings of 18 cents a share beat Wall Street’s calls for 17 cents a share.

Wall Street has been cautious with SoFi stock. Of the 29 analysts polled by FactSet, 13 have a Hold rating on SoFi stock while 11 recommend buying shares. Five analysts recommend selling the stock.

Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com

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