SoFi Stock Falls On Soft Guidance Despite 'Strong Quarter' With Record Member Growth, Loan Originations: Analyst

by Erica Kollmann Benzinga Staff Writer

Zinger Key Points

SoFi Technologies reports better-than-expected fourth-quarter financial results with record member growth.
SoFi's fiscal 2025 profit guidance drags the stock down during Monday’s session despite top and bottom line beats.
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SoFi Technologies, Inc. SOFI reported better-than-expected fourth-quarter financial results. However, the company's fiscal 2025 profit guidance dragged the stock down during Monday's session.

Here's a look at some details from SoFi's earnings call and early analyst reactions.

The San Francisco-based company posted earnings of 5 cents per share, beating estimates of 4 cents per share. Its revenue came in at about $739.11 million, beating analyst estimates of $674.13.

However, SoFi guided to approximately 30% incremental adjusted EBITDA margin for 2025, which was well-below Street estimates of greater than 50% and below 2024's 44% EBITDA margin.

SoFi emphasized its plans to reinvest earnings back into the business during the company's earnings call.

"We have significant untapped addressable markets in front of us and we have proven that the more we invest, the more we produce durable growth and strong returns. In 2025, we plan to manage towards an incremental EBITDA margin of around 30% as we reinvest in the business to drive that durable growth of 25% again in 2025 and ultimately strong returns well into the future," CEO Anthony Noto said.

JPMorgan analyst Reginald L. Smith released a "First Look" note following SoFi's Q4 earnings release. The analyst highlighted SoFi's success in its Loan Platform Business which originated $1.1 billion in personal loans in Q4 and generated $63 million in high-margin fee income.

Smith pointed to student loan originations being up 43% sequentially and reaching the highest levels since 2021.

"All told, it was a strong quarter highlighted by record Member growth and originations, though overshadowed, at least for the near term, by soft EBITDA guidance," Smith wrote.

Price Action: According to data from Benzinga Pro, SoFi stock fell 10.3% in Monday’s session to close at $16.08 per share.

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