SOFI EARNINGS: SoFi Stock is CRASHING!📉

At this point, guys, it's it's almost comical, man. SoFi comes out, crushes earnings, and the stock is tanking, as is the entire stock market. What else is new? What else is new? Should I put my clown mask on now or later, guys? This is unbelievable. So, let's dive into the earnings, break down what I'm doing, my thoughts on the report, and we'll cover the overall market quickly, which honestly, nothing else is new there, either. Uh the Dow is down, S&P, Nasdaq, Russell, you name it. Oil's up, the VIX is up 10%. This is a rough day, yet again, in the market, and yet again, for SoFi after earnings. So, let's dive into it, guys. Hit the like button, make sure to subscribe. I appreciate you all for tuning in, as always, and of course, take a sip of your coffee. Cheers. And yeah, let's talk. So, at this point, we're completely breaking trend on SoFi stock. Breaking under this channel that we were holding heading into the report, and you can see on the intraday chart, let me pull this up, we actually spiked to 1730 initially when the numbers came out, and well, that did not last long. It hit 1730, and we dropped all the way to 1488 at the low today. That was about an hour ago, and that was a 14% drop from top to bottom. And again, we almost took out the lows from March, and March we hit I think 1480. Yeah, we hit 1488 today. So, this stock is pretty much right back to where it was a couple months ago. The chart looks terrible, and at this point, I mean, it kind of looks like we might be going lower. And it didn't look like that heading into the report, but here we are. SoFi's doing what SoFi does best, and that is, well, tank after earnings. It happens every single time, it seems like, and this is on good numbers. It's not like they crapped the bed, guys. The numbers were strong. Let's dive into it, and and just see exactly what SoFi reported. So, they report reported a record $1.2 billion of revenue, up 40% year-on-year, and beating the estimate of 1.13 billion expected. So, they beat revenue, and they beat EPS. Adjusted EPS came in at 12 cents. That beat the 11 cent estimate, as adjusted EBITDA rose 44% year-over-year to a record $358 million. So, record revenue, record adjusted EBITDA. GAAP net income hit $157 million for the quarter, as loan originations reached a record $14.8 billion across the platform. And we'll dive deeper into this in the actual earnings release right here, but we can see new members went up 35% year-over-year, right? Total products grew 42% year-over-year. And guidance, we can see here guidance, they raised the adjusted net revenue to a range of $4.75 billion to $4.85 billion from prior targets, and pointing to uh to 32 to 35% growth. So, very strong growth for um you know, SoFi guidance-wise, and they maintained it uh let's see, adjusted EBITDA was maintained at approximately $1.6 billion. That's 33 to 34% margin, and adjusted EPS projected to remain at about 60 cents for the full year. And the big reason why one of the reasons why the report, I guess, maybe disappointed. One of the key weak spots in the report, which I don't think the stock's selling off because of this. I think the stock's just selling off because that's what it does after earnings and a crappy market, especially like we're in now. The overall market is not looking pretty, guys. And every time it seems like a company reports earnings, whether they're a tech stock, an AI stock, whatever, it seems like a lot of these companies are reporting earnings and their stocks are going down, even on good reports. But, here's one of the weak spots when it comes to the tech platform financial revenue. We can see here year-over-year declined 23%. It came in at $84.5 million. It actually went up 13% quarter-on-quarter, but it was down 23% compared to where it was in Q2 of last year. It was at almost $110 million and profit fell, contribution profit fell 65% year-on-year to almost $12 million. So, those are kind of the headline numbers. Pretty good, guys. Very good, honestly. Records record numbers across the board. Again, adjusted net revenue up 40% to a record $1.2 billion. Adjusted EBITDA up 44% to a record 358 million. Total loan originations at a record of almost $15 billion. Member growth also a record up 35% to 15.8 million members. Products also a record. That grew 42% to 24.4 million products. And cross by accelerated, that's key, with 51% of new products opened by existing SoFi members, and they increased their guidance like we talked about. And Anthony Noto said, "2026 is shaping up to be a defining year. Maybe for the business, not so much for the stock price." And our second quarter results, Anthony Noto said, "mark a key, clear inflection point for SoFi. Despite continued market uncertainty, our business model continues to prove its durability. We grew members 35% year-over-year and added a record 2.2 million products, a 42% increase. And for the first time, Noto said, we added twice as many products as members, a major milestone that underscores the trust members place in SoFi and the power of our everything app." A major a major milestone, guys. Products like SoFi Plus and SoFi Coach are deepening member relationships and increasing lifetime value. And while continued innovation across our consumer and enterprise platforms is expanding the value we deliver to members and clients. So guys ultimately the fundamentals will follow. Or rather, the stock price will follow the fundamentals. So, even though the stock is down, it's been a very rough year for SoFi, the company's still doing well fundamentally, hitting records, crushing it across the board for the most part. And ultimately, the stock price will, you know, close that gap. I think it's I think it's a bit, you know, detached from, you know, reality to the downside. I think SoFi is, and eventually it's going to come back in due time. At this point, it's looking like it might be a 2027 and beyond story. It's It's, you know, going to be sensitive to these rates as well. We'll see what happens with the Fed. Uh but, not bad. Not a bad quarter, man. Very strong. Um if you're a long-term investor, that's what you have to focus on, the fundamentals, right? Not looking at the stock price every day. That's going to skew your decision-making. Focus on the fundamentals, and if you believe in the company, the management team, if they're growing, the the fundamentals are getting better, right? It might It might be a time to buy. I'm not saying that with SoFi, but any stock in general. If a stock's suppressed all while it's trading at a good value and the business is growing, crushing it, the management team is doing well, um that could be a time to buy when there's that detachment from the uh the the value, fair value of the business. Um so, some of the highlights, we Again, we saw record number and product growth. We're not going to talk about that too much here. Um the accelerating cross-buy and the demonstration of the financial services productivity loop. Cross-buy continued to accelerate with 51% of new products opened by existing SoFi customers. Members, like we said, up 43% from last quarter and 35% from 2025 Q2. Um that's very strong. Looks like here they're deepening their member relationships, like we said, through SoFi Plus and SoFi Coach. Um the loan originations hit a record while maintaining strong credit performance. SoFi delivered its best quarter ever for total loan originations at $14.8 billion, up more than $2.6 billion from the prior quarter, including record originations across personal loans, student loans, and home loans. And personal loan originations totaled 10.7 million or billion dollars. As we can see, loan platform business originations came in at 3.1 billion, reflecting strong demand from loan platform business partners and their expanding innovation across enterprise and consumer financial services and strengthening brand awareness and trust as SoFi's unaided brand awareness rose to an all-time high of 10.4% up 190 basis points year-on-year. And we can see here, if I come down a little bit more, the charts regarding members in thousands, products in thousands, products per member, everything's going up and to the right. That's exactly what you want to see out of a business growing. That that's a strong sign fundamentally. And products by segment, lending products and financial services products, those are each growing up and to the right over the last couple of quarters. That's a very good sign. You guys see that here on the left. Technology platform accounts has stagnated a little bit. It's actually gone down a little bit over the last year. I'm not too worried about that. Financial services products increased by 43% year-over-year to 21.3 million. You can see that here on this bar bar chart. And we can see also on top of that, the technology platform enabled accounts decreased 16% year-over-year to 135 million. So that is I mean, it's not all sunshine and rainbows. It's never all sunshine and rainbows when it comes to earnings, guys. There are always some little pockets of the report that aren't looking the best. But does that warrant SoFi to go down 10% trading at multi-month lows? I don't think so because the key metrics here, they hit pretty much all across the board and they're doing well. They're growing, right? And if we come down here a little bit, um let's see here, guys. I want to show you all their loan originations a little bit more in depth if I can find them. Give me a second. And by the way, guys, hit that like button. Make sure to subscribe if you haven't done so already. I appreciate you all for tuning in. We're on the road to 100,000 subscribers on YouTube and we're almost at 100,000 followers on Facebook. I appreciate you all for tuning in as always. So, these are the originations right here. Excuse me, guys. I mean, holy crap. Uh this is cra- This is crazy growth. Um look at the personal loan originations. If I zoom in a little bit here, guys, 3 months ended June 30th, we can see those grew 54% year-over-year. Personal loans came in at 10.7 billion. Last year in the same quarter, originations were almost at 7 billion. So, very big move there. Upwards move. And student loans, guys, holy crap, 170% growth year-over-year. Student loan originations came just under 2.7 billion dollars and they were under a billion last year in the same quarter, 993 million to be exact. And home loans, which we talked about a year or two ago, that would be um a category to watch. Massive growth in. That continues to grow. Um home loans grew 74% year-over-year and they came in at 1.4 billion, just under. And last year in the same quarter, they were just under 800 million dollars. So, very strong um loan origination growth across the board uh for SoFi. And again, it's not just that. It's the members, the products, the guidance was strong. Um and it looks like here um additionally of the first quarter, blah blah blah blah blah. Okay, we're not that that that's not too relevant. Um either way, this this report was strong. Yes, there was some weakness when it comes down to the the technology platform that revenue, which came in at 84 million. Uh that was down 23% year over year. There were some other weak spots, barely. Um and again, does that warrant SoFi to go down this much? I don't think so. I don't think so. It doesn't make sense to me, guys. But that's the market we're in. And you might be like, "Stas, why is SoFi tanking?" Well, it's the market we're in. I I genuinely believe that. You know, a lot of these companies are reporting good numbers, and their stocks are going down. That's how it is right now, guys. That's the market we're in. And it's not just the market. I mean, SoFi has been doing this all year, literally the last three reports. Um we've tanked after earnings. It It's a SoFi problem. You know, investors have I don't want to say they've lost confidence 100%, but they're slowly starting to lose confidence here in the short term, man. And that is where there could be opportunity. Again, going back to what I said before, there's a short-term detachment from the fundamental value of the stock and where it's trading. They're crushing it across the board, and the stock keeps going down. Some Some look at this as an opportunity, whereas others look at it and they start panicking, right? So at this point, guys, again, it's an overall market thing, in my opinion. Part of it is SoFi, the way the stock's been trading all year. Part of it's rates. Part of it's, you know, where we're at in the overall cycle. Who knows, right? But at this point, man, it's it's trying to get back over $15. I'm not loving the chart. I'm personally just going to hold on to SoFi. If it gets down at $12, $13, $11 somehow, maybe I'll start to buy more. But it's a hold for me and it has been this entire year to be honest. And that's where I'm at on it. That's where I'm at. So, what do you guys think? Are you happy with this report? Are you Are you like, why is SoFi selling off? Let me know your thoughts in the comments. And if you want to be a part of my private Discord community, see my portfolio updates, my trades, everything literally in real time, check out my Patreon. Link down below, pinned in the comments, or go to stasurfcast.com/patreon. And with that being said, guys, good luck out there trading. I'll see you in the Patreon. Peace out.