SoFi Technologies Inc. (SOFO) saw its stock plunge 22% in February 2026 following a weak earnings report and growing concerns over credit quality and loan portfolio performance. The decline coincided with a spike in the CBOE Volatility Index (^VIX) and broader tech sector weakness, reflected in the XLK ETF.
- SoFi stock (SOFO) fell 22% in February 2026
- Net revenue declined 17% YoY to $682 million
- Adjusted EBITDA dropped 31% due to higher credit provisions
- 30-day delinquency rate rose to 3.8% from 2.9% YoY
- New loan volume declined 29% YoY
- ^VIX rose to 28.4, and XLK fell 4.1% during the month
SoFi Technologies Inc. (SOFO) experienced a sharp 22% decline in its stock price during February 2026, marking one of the steepest monthly drops in the financial technology sector this year. The selloff followed the company’s release of fourth-quarter 2025 results, which revealed a 17% year-over-year drop in net revenue to $682 million, below analyst expectations. Adjusted EBITDA declined by 31%, driven by rising credit losses and a 14% increase in provision expenses tied to its personal loan and student loan portfolios. The earnings miss was amplified by management’s cautionary guidance for 2026, signaling continued challenges in loan originations and tighter underwriting standards. SoFi reported a 29% year-over-year decline in new loan volume, a key indicator of growth momentum. The company also highlighted rising delinquency rates across its consumer lending segment, with 30-day delinquencies increasing to 3.8% from 2.9% in the prior year. Market-wide factors contributed to the sell-off. The CBOE Volatility Index (^VIX) surged to 28.4 in mid-February, reflecting heightened investor anxiety around macroeconomic uncertainty. Concurrently, the Technology Select Sector SPDR Fund (XLK) dropped 4.1% over the same period, dragging down fintech peers including LendingClub (LC) and Affirm (AFRM). The combined effect intensified the repricing of high-growth fintech valuations, with many stocks trading at significantly lower price-to-earnings multiples than in early 2025. Investors are now reassessing the sustainability of SoFi’s business model, particularly its reliance on consumer credit and the scalability of its banking and investment services. The stock’s performance has drawn attention from institutional holders, with several major funds reducing positions in early March, according to public filings.