SoFi Added a Record 1.2 Million Members Last Quarter. Its Stock Is Still Down More Than 30% in 2026.
Investors have had to ignore several rounds of healthy numbers to remain convinced of their wrong conclusion. They can't afford to continue doing so, though.
During the third quarter ending in September, SoFi Technologies added a record 1.2 million new members, raising its total customer base to more than 17 million. Despite this impressive growth, the company's stock has declined more than 33% year to date and 40% since last October's peak. SoFi is an online bank offering a range of services similar to traditional brick-and-mortar banks, including checking, savings, lending, credit cards, and investments.
The company's revenue grew by 44% year over year in the last quarter, and its per-share profit increased by 64%, from $0.11 to $0.18.
However, the recent stock decline is attributed to several factors. One of them is the loss of a key third-party user of SoFi's technology platform, which resulted in a 27% decline in this business's revenue during the first quarter of this year. Additionally, a damaging report from a well-known short-seller suggested that the company's balance sheet was misleading, and management's decision not to raise its full-year profit guidance in Q1 and Q2 reports were also seen as red flags.
Despite these issues, SoFi's management recently raised its 2026 earnings outlook from $0.60 to $0.61 per share, which seems to have put the stock back on its bullish long-term track. However, the company has always been considered volatile, and investors should be prepared for continued price fluctuations.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
