SoFi Shares Drop 13% After Record Q2 Revenue, Profit

SoFi Technologies saw its shares tumble 13% on Wednesday morning despite posting record second-quarter revenue and profit. The digital bank reported adjusted net revenue of $1.2 billion, a 40% year-over-year increase, while adjusted EBITDA rose 44% to $358 million. Adjusted earnings per share reached $0.12, up 50% from the prior year, capping off a period of significant operational expansion.

The results were primarily driven by the company's cross-buy strategy, which encourages existing members to adopt additional products. SoFi added 1.1 million new customers, representing 35% member growth, while total product growth hit 42% with 2.2 million new offerings. Cross-buy accelerated to 51% in the quarter, meaning the platform added two new products for every new customer.

This operational flywheel translated into record loan originations of $14.8 billion, a 69% surge. The company also capitalized on a strong quarter for equities activity, with brokerage revenue jumping 141%. SoFi was notably selected as one of five brokerages to participate in the Space Exploration Technologies initial public offering.

CEO Anthony Noto credited the accelerating cross-buy metrics to the company's innovation engine. Recent launches include SoFi Coach, an artificial intelligence-powered financial advisor, and Composer, a newly acquired investment AI agent. These tools are central to SoFi's pitch as a "one-stop shop" for digital banking, aiming to deepen customer engagement and lifetime value.

The market's continued aversion to the stock occurs despite what appears to be a reasonable valuation for its growth rate. Trading at 19 times next year's earnings, the neobank is delivering outsized membership and revenue expansion that typically commands a premium multiple. For market professionals, the immediate sell-off underscores a persistent, broader scepticism toward fintech equities that continues to overshadow strong underlying fundamentals.