SoFi Technologies (NASDAQ:SOFI) just posted the best quarter in its history, and the stock fell anyway. Membership hit a record, loan originations hit a record, and tangible book value grew faster than almost anyone expected. Yet shares dropped roughly 9% the day the numbers came out, part of a stretch that has left the stock down nearly 42% this year. The gap between what the business is doing and what the market is doing has rarely been this wide.
The growth engine behind that record quarter keeps compounding. SoFi added 1.1 million new members in FQ2 2026, a record, pushing its base to 15.8 million people, up 35% year over year. What matters more is how it is selling to them: 51% of new products went to existing members, up from 43% the prior quarter and 35% a year earlier, and the average member now uses 1.54 products, up from 1.46 twelve months ago. That is a company getting cheaper to grow, since selling another product to someone already banking with you costs far less than acquiring a stranger.
The balance sheet backs up that growth. Tangible book value jumped 80% year over year to $9.5 billion, or $7.34 per share, while deposits reached $45.5 billion and the total capital ratio sat at 18.8%, comfortably above the 10.5% regulatory minimum. Loan originations hit a record $14.8 billion, up 69%, and the personal loan charge-off rate actually fell 21 basis points even as that book expanded, a sign SoFi is not chasing volume by loosening standards. SoFi's brokerage arm was also among the firms chosen for the record-breaking ***** e Exploration Technologies IPO, and brokerage revenue climbed 141% for the quarter. William Blair's Andrew Jeffrey called the results reason to "aggressively accumulate" the stock, arguing the larger balance sheet efficiently supports management's 20% to 30% long-term return-on-equity target.
Pixabay/Public Domain
None of that explains why the profit outlook didn't move. Management raised full-year adjusted net revenue guidance to $4.75 billion to $4.85 billion, up from $4.66 billion, but left adjusted EBITDA guidance at $1.6 billion and adjusted earnings per share at $0.60. More revenue with no more profit attached is exactly the kind of detail the market prices quickly. CEO Anthony Noto pointed to a shift in the bank's own rate expectations, from two cuts to two hikes this year, as the reason for the caution, alongside a choice to reinvest rather than bank the upside.
#year #record #book #revenue
The growth engine behind that record quarter keeps compounding. SoFi added 1.1 million new members in FQ2 2026, a record, pushing its base to 15.8 million people, up 35% year over year. What matters more is how it is selling to them: 51% of new products went to existing members, up from 43% the prior quarter and 35% a year earlier, and the average member now uses 1.54 products, up from 1.46 twelve months ago. That is a company getting cheaper to grow, since selling another product to someone already banking with you costs far less than acquiring a stranger.
The balance sheet backs up that growth. Tangible book value jumped 80% year over year to $9.5 billion, or $7.34 per share, while deposits reached $45.5 billion and the total capital ratio sat at 18.8%, comfortably above the 10.5% regulatory minimum. Loan originations hit a record $14.8 billion, up 69%, and the personal loan charge-off rate actually fell 21 basis points even as that book expanded, a sign SoFi is not chasing volume by loosening standards. SoFi's brokerage arm was also among the firms chosen for the record-breaking ***** e Exploration Technologies IPO, and brokerage revenue climbed 141% for the quarter. William Blair's Andrew Jeffrey called the results reason to "aggressively accumulate" the stock, arguing the larger balance sheet efficiently supports management's 20% to 30% long-term return-on-equity target.
Pixabay/Public Domain
None of that explains why the profit outlook didn't move. Management raised full-year adjusted net revenue guidance to $4.75 billion to $4.85 billion, up from $4.66 billion, but left adjusted EBITDA guidance at $1.6 billion and adjusted earnings per share at $0.60. More revenue with no more profit attached is exactly the kind of detail the market prices quickly. CEO Anthony Noto pointed to a shift in the bank's own rate expectations, from two cuts to two hikes this year, as the reason for the caution, alongside a choice to reinvest rather than bank the upside.
#year #record #book #revenue
2 months ago
