SoFi's $1.5 Billion Stock Sale Sends Shares Tumbling

SoFi Technologies announced a $1.5 billion public stock offering, causing its shares to fall by over 7% premarket. The move comes after the fintech company reported upbeat results that beat Wall Street estimates. The stock had previously rallied following the earnings release.

SoFi Technologies (SOFI), a leading digital financial services company, has announced a $1.5 billion public stock offering, with Goldman Sachs acting as the underwriter. The offering, announced on July 29, 2025, will be used for general corporate purposes, including working capital and business opportunities [1]. The company's shares fell by over 7% premarket following the announcement, despite reporting upbeat financial results that beat Wall Street estimates.

In the second quarter of 2025, SoFi reported adjusted net revenue of $858.2 million, a 44% increase year-over-year. Total fee-based revenue reached a record of $377.5 million, up 72% from the prior year period. The company also reported a record 11.7 million members and 17.1 million products [2].

The stock had previously rallied following the earnings release, but the stock offering announcement caused a significant drop in share price. Analysts have mixed opinions on the stock. While Spark, TipRanks' AI Analyst, rates SOFI as an Outperform, the most recent analyst rating is a Hold with a $16.00 price target [1].

SoFi's strong financial performance and bullish technical indicators are slightly offset by valuation concerns. Positive earnings call outcomes and raised guidance further enhance the outlook, though cash flow management remains crucial [1].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/SOFI/pressreleases/33773000/sofi-technologies-announces-15-billion-stock-offering/
[2] https://investors.sofi.com/news/news-details/2025/SoFi-Reports-Second-Quarter-2025-Accelerates-Net-Revenue-Growth-to-Record-855-Million-Record-Member-and-Product-Growth-and-Net-Income-of-97-Million/default.aspx