SoFi Earnings: Shares Trading Lower as Market Overlooks Strong Fundamentals

Key Morningstar Metrics for SoFi Technologies

• Fair Value Estimate
  : $17.50
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : Narrow
• Morningstar Uncertainty Rating
  : Very High

What We Thought of SoFi Technologies’ Earnings

SoFi Technologies SOFI reported strong second-quarter earnings, as the firm’s impressive loan growth was marred only slightly by its updated guidance. Net revenue increased a meteoric 42.5% from last year to $1.2 billion, while earnings per share rose to $0.12 from $0.08.

The bottom line: SoFi’s shares are trading sharply lower, falling by a high-single-digit percentage on July 29. We disagree with the market’s reaction, as the bank’s results were better than we expected, thanks to net interest income growth coming in above our projections.

• We think the market’s reaction can be largely attributed to another quarter of stagnant loan platform volume, with revenue from the business increasing only 10.6% from last year, disappointing relative to SoFi’s 2026 guidance.
• Like last quarter, we are largely unconcerned with the deceleration in SoFi’s loan platform segment. Our model has always included a significant deceleration from the firm’s fourth-quarter 2025 results, due to our concerns about private credit exposure and the firm’s ample undeployed capital.

Key stats: As we incorporate these results, we are increasing our fair value estimate for narrow-moat SoFi to $17.50 per share from $17.00. After the stock’s miserable performance in 2026, we think it’s modestly undervalued, with the market overcorrecting from the significant premium it once commanded.

• The increase in our fair value estimate comes mainly from higher net interest income projections, as the firm’s loan growth has accelerated significantly in 2026. Average loans rose a meteoric 49.6% from last year to $45.4 billion.

Key stats: Along with earnings, SoFi raised its 2026 adjusted revenue guidance to $4.75 billion-$4.85 billion. Notably, the firm did not change its EBITDA or net income guidance with the increase in expected revenue.

• While this is disappointing and has likely contributed to the share’s performance today, we note that SoFi has a long history of conservative guidance.