NEW YORK, August 31, 2026, 07:09 ET
- SoFi stock ended Friday at $18.06, falling 5.84%, with 45.5 million shares traded.
- Revenue for the second quarter climbed 43% to $1.22 billion, while net income grew 61%.
- The stock is trading at about 40 times earnings and 4.9 times its projected 2026 revenue.
SoFi Technologies, Inc. NASDAQ: SOFI saw its market value drop by roughly $1.45 billion on Friday. The stock declined 5.84% to end at $18.06, marking its lowest finish since August 24. Volume totaled 45.5 million shares, lower than the three-month average reported by Yahoo Finance price history.
The drop occurred without any fresh company filings. Investors reconsidered high-priced financial stocks after the Federal Reserve’s hawkish remarks. SoFi’s high valuation offers minimal cushion for weaker credit trends or reduced cross-selling activity.
The cautious outlook comes despite robust operating performance. Revenue for the second quarter surged 43% to $1.22 billion. Net income increased 61% to $156.6 million, and adjusted EBITDA grew 44% to $357.8 million company results.
| Second-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| GAAP net revenue | $1.219bn | $855m | up 43% |
| Net income | $156.6m | $97.3m | up 61% |
| Adjusted EBITDA | $357.8m | $249.1m | up 44% |
| Members | 15.8m | 11.7m | up 35% |
The valuation is mainly supported by member economics. SoFi saw an increase of 1.1 million members and 2.2 million products. Existing members accounted for 51% of new product openings, an increase from 35% the previous year.
The bank charter reduces funding expenses. Deposits accounted for over 90% of average liabilities. Management projected annualized interest savings of $712.6 million compared with warehouse funding.
Fee businesses are gaining significance, with fee revenue totaling $472.3 million, accounting for 39% of revenue in the quarter. SoFi’s loan platform generated $143.3 million after facilitating $3.1 billion in originations for partners.
Galileo continues to face challenges. Technology Platform revenue dropped 23% compared with the same period last year. Enabled accounts decreased by 16% following the departure of a major client, though there was a sequential increase in accounts.
With a market capitalization of $23.3 billion on Friday, SoFi is valued at roughly 4.9 times the midpoint of its projected adjusted revenue range of $4.75 billion to $4.85 billion. According to Yahoo, its shares are priced at about 40.4 times earnings. The high valuation depends on the company maintaining strong growth and keeping credit losses in check.
Wall Street analysts are split. In August, Piper Sandler began coverage with an Overweight rating and a $22 price target, highlighting cross-selling opportunities and customer lifetime value Barron’s. The overall consensus sits at Hold, including eight Buys, ten Holds, and three Sells analyst coverage.
The upcoming catalyst is CFO Chris Lapointe’s scheduled appearance at a conference on September 8 SoFi announcement. Investors are expected to monitor updates concerning loan demand, funding costs and credit.
Risks: A decline in consumer conditions may drive up charge-offs. Reduced rates might squeeze asset yields ahead of any drop in deposit costs. Accelerated loan growth could heighten capital requirements.
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