SoFi Shares Plunge 15% Premarket as Weak 2025 Outlook Overshadows Strong Q4 Results
Shares of SoFi Technologies (NASDAQ: SOFI) dropped 15.01% in premarket trading on Monday, falling $2.69 to $15.23 as of 8:20 AM ET. The sharp decline came after the company’s Q1 and 2025 guidance missed Wall Street expectations, despite delivering a strong Q4 earnings beat.
For 2025, SoFi projected GAAP earnings per share (EPS) of $0.25 to $0.27 (midpoint $0.26), falling short of the consensus estimate of $0.29. Adjusted net revenue is expected to range between $3.20 billion and $3.275 billion, slightly above the $3.05 billion consensus. However, its adjusted EBITDA forecast of $845 million to $865 million trails the Visible Alpha consensus of $913.5 million.
In Q1, SoFi forecasted GAAP EPS of $0.03, below the $0.06 analyst estimate. However, the company expects adjusted net revenue between $725 million and $745 million, exceeding the $707.5 million consensus.
Despite the disappointing outlook, CEO Anthony Noto emphasized SoFi's achievement of its first full year of GAAP profitability. Q4 GAAP EPS came in at $0.29, up from $0.05 in Q3, while adjusted net revenue for the quarter reached $739.1 million, beating estimates. Growth was driven by robust loan originations, with personal loans surging 63% and student loans rising 71%.
Shares of SoFi Technologies (NASDAQ: SOFI) dropped 15.01% in premarket trading on Monday, falling $2.69 to $15.23 as of 8:20 AM ET. The sharp decline came after the company’s Q1 and 2025 guidance missed Wall Street expectations, despite delivering a strong Q4 earnings beat.
For 2025, SoFi projected GAAP earnings per share (EPS) of $0.25 to $0.27 (midpoint $0.26), falling short of the consensus estimate of $0.29. Adjusted net revenue is expected to range between $3.20 billion and $3.275 billion, slightly above the $3.05 billion consensus. However, its adjusted EBITDA forecast of $845 million to $865 million trails the Visible Alpha consensus of $913.5 million.
In Q1, SoFi forecasted GAAP EPS of $0.03, below the $0.06 analyst estimate. However, the company expects adjusted net revenue between $725 million and $745 million, exceeding the $707.5 million consensus.
Despite the disappointing outlook, CEO Anthony Noto emphasized SoFi's achievement of its first full year of GAAP profitability. Q4 GAAP EPS came in at $0.29, up from $0.05 in Q3, while adjusted net revenue for the quarter reached $739.1 million, beating estimates. Growth was driven by robust loan originations, with personal loans surging 63% and student loans rising 71%.