SoFi Tech Stock Tumbles As Weak Outlook Overshadows CEO’s ‘Best Year Ever' Remarks, Q4 Beat — But Retail Shrugs It Off

Shares of SoFi Technologies Inc (SOFI) traded lower by over 8% in Monday’s pre-market session as a weaker-than-expected outlook overshadowed the firm’s upbeat fourth-quarter (Q4) earnings.

For the fourth quarter, SoFi Tech reported a 19% year-over-year (YoY) rise in its net revenue to $734.12 million compared to a Wall Street estimate of $682 million.

Earnings per share (EPS) stood at $0.29 versus an analyst estimate of $0.04. Net income jumped nearly 600% YoY to $332.47 million.

Net interest income (NII) rose 21% YoY to $470.2 million, driven by a 23% increase in average interest-earning assets and a 68 basis points decrease in cost of funds, mostly offset by a 62 basis points decrease in average yields year-over-year.

The company reported net interest margin (NIM) at 5.91%, up 34 basis points sequentially from 5.57% and down 11 basis points YoY from 6.02%.

SoFi’s Financial Services segment net revenue increased 84% YoY to $256.5 million, while Technology Platform’s net revenue increased 6% YoY to $102.8 million. The lending segment saw its GAAP net revenue of $417.8 million rose 18% from the prior year.

CEO Anthony Noto said 2024 was SoFi's best year ever. "SoFi set new records in revenue, profit, members, and products in 2024, and we look forward to continuing to build momentum on this in 2025.”

However, the firm’s outlook for the current quarter and year failed to align with the CEO’s remarks.

For the first quarter of 2025, the company expects to generate 0.03 of GAAP EPS compared to an analyst estimate of $0.06.

For 2025, it expects GAAP EPS of $0.25 to $0.27 per share compared to a Wall Street estimate of $0.29.

Revenue expectations, however, stood better than estimates. In the first quarter of 2025, management expects to generate $725 to $745 million of adjusted net revenue versus an analyst estimate of $706 million.

For the full year, SoFi’s revenue outlook stood at $3.200 to $3.275 billion compared to Wall Street’s expectation of $3.04 billion.

On Stocktwits, retail sentiment flipped into the ‘bullish’ territory (60/100) from ‘neutral’ a day ago. The move was accompanied by ‘extremely high’ message volume.

SoFi’s Sentiment Meter and Message Volume as of 8:55 a.m. ET on Jan. 27, 2025 | Source: Stocktwits

Most user comments on Stocktwits indicated a positive take on the stock.

SoFi stock has gained over 26% year-to-date and is up over 95% over the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<