SoFi Shares Plunge 15% Premarket as 2025 Outlook Disappoints Despite Strong Q4 Beat

SoFi Technologies (NASDAQ:SOFI) shares experienced a significant decline of 15.01% in premarket trading on January 27, 2025, falling to $15.23 after the company announced its first-quarter and 2025 earnings guidance. The disappointing outlook overshadowed a stronger-than-expected fourth-quarter performance, where adjusted earnings surpassed estimates.

The company projected a GAAP EPS of $0.25-$0.27 for 2025, which is below the Wall Street consensus of $0.29. Despite this, CEO Anthony Noto noted the achievement of GAAP profitability for the first full year.

SoFi Technologies reported a decline in its stock price following the announcement of its earnings guidance for 2025. The company expects a GAAP EPS of $0.25-$0.27, which is below the consensus estimate of $0.29. Additionally, adjusted net revenue is projected to be between $3.20 billion and $3.275 billion, compared to the expected $3.05 billion. For the first quarter, SoFi forecasts a GAAP EPS of $0.03, also falling short of the consensus of $0.06.

Key financial highlights include:

• Q4 GAAP EPS of $0.29, up from $0.05 in Q3.
• Q4 adjusted net revenue of $739.1 million, exceeding estimates.
• 63% increase in personal loan origination and a 71% increase in student loans.

Despite the weak guidance, CEO Anthony Noto emphasized the significance of achieving GAAP profitability for the first full year. The company’s growth in loan origination has been a critical factor contributing to its financial performance. The market’s reaction reflects investor concern over the future outlook, overshadowing the recent successes reported in Q4.

In summary, SoFi Technologies’ shares declined sharply due to disappointing earnings guidance for 2025, despite a strong fourth-quarter performance. The company’s ability to achieve GAAP profitability is notable, but concerns about future earnings may continue to impact investor sentiment.