SoFi Stock Risks Breakdown to $12 Despite Record Q1, as Earnings Details Disappoint

SoFi Technologies shares fell sharply as investors reacted negatively to key weaknesses in its latest earnings report.

Stock Reversal Gains Momentum

Shares of SoFi Technologies dropped more than 15%, reversing a recent recovery attempt and extending a broader downtrend that began late last year. The stock had previously climbed to $32.80 in November 2025 before turning lower.

SOFI Chart Weekly – Returning to the 100 SMA

Technically, SoFi found support near the 100-week moving average around $15 in March, sparking a rebound toward $20. However, selling pressure has returned, pushing the stock back toward this key level. A sustained break below support could open the door to further downside toward $12.50.

Earnings Details Disappoint

While headline growth remains strong, several underlying metrics fell short of expectations. Fee-based revenue—which includes brokerage services, platform fees, and loan-related income—rose 23% to $387 million but missed forecasts of $405 million.

This miss raised concerns about the quality and sustainability of SoFi’s revenue mix, particularly as investors look beyond top-line growth.

Platform Weakness Raises Questions

Additional pressure came from the company’s technology platform segment. Revenue from its banking-as-a-service business declined 27% year over year following the loss of a key client, Chime.

The drop highlights potential vulnerabilities in SoFi’s platform strategy, especially as competition and instability in the sector increase.

Valuation and Risk Remain Key Concerns

Despite strong growth in lending and user expansion, SoFi’s elevated valuation continues to draw scrutiny. At the same time, limited disclosure around its private credit exposure may be adding to investor unease.