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Earnings Score 72 Bearish

SoFi Shares Plunge as Guidance Miss and Loan Platform Slump Spark Credit Concerns

Apr 29, 2026 15:38 UTC
SOFI
Short term

SoFi reported strong net income growth but saw its stock tumble over 13% following disappointing second-quarter revenue guidance. Investors are reacting to a significant shortfall in Loan Platform Business (LPB) fees and a strategic shift in balance sheet management.

  • Net income grew 134% and net revenue grew 43% in Q1
  • Q2 revenue guidance of 30% annual growth missed consensus estimates
  • LPB fees of $141 million fell short of the $189 million analyst target
  • LPB take rate dropped from 5.16% to 4.61%
  • Stock price declined approximately 13% following the announcement
  • Management shifted more originations to the balance sheet, increasing net interest income

SoFi (NASDAQ: SOFI) experienced a sharp sell-off on Tuesday after issuing second-quarter revenue guidance that fell short of Wall Street expectations. Despite reporting a 134% surge in net income and 43% growth in net revenue for the first quarter, the digital bank's shares dropped approximately 13% in early trading. The primary driver of the decline is a perceived weakness in the company's Loan Platform Business (LPB), a capital-light revenue stream designed to facilitate loans for third parties. While the company added over 1 million new members and expanded EBITDA margins to 31%, the miss in LPB performance has raised questions about the sustainability of its fee-based income model. In the first quarter, LPB originations reached roughly $3 billion, missing the consensus estimate of $3.7 billion. Consequently, LPB fees totaled nearly $141 million, significantly below the $189 million forecast by analysts. Additionally, the take rate for these transactions—the cut SoFi takes for facilitating referrals and transactions—declined from 5.16% in the previous quarter to 4.61%. CFO Chris Lapointe attributed the lower fees to a 'deliberate decision' to retain more originations on the balance sheet, which boosted net interest income and margins beyond analyst expectations. However, this shift has triggered concerns regarding credit quality and the potential for higher loss content among borrowers who would have otherwise been routed through the LPB channel.

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