SoFi Technologies Shares Fall Amid CEO's $24.1M Stock Agreement

SoFi Technologies (SOFI) shares fell 2.9% in early US trading after CEO Anthony Noto entered a prepaid stock agreement worth $24.1 million, involving 1.5 million shares. The agreement allows Noto to choose between settlement in shares or cash by 2028, while retaining voting and dividend rights.

SoFi Technologies (SOFI) shares experienced a 2.9% drop in early U.S. trading on July 2, 2025, following the announcement that CEO Anthony Noto entered a prepaid stock agreement worth $24.1 million, involving 1.5 million shares [3]. The agreement allows Noto to choose between settlement in shares or cash by 2028, while retaining voting and dividend rights.

The prepaid variable forward contract, disclosed by SoFi Technologies, involves 1,500,000 shares, which represent about 7% of Mr. Noto’s beneficial ownership and less than 1% of SoFi’s total outstanding shares. According to the company’s statement, Mr. Noto will receive an upfront cash payment of $24,107,850 as part of the contract with an unaffiliated third-party dealer. The contract is scheduled to mature in approximately three years, on or about August 28, 2028. At maturity, Noto will have the option to deliver shares or settle the contract in cash, depending on SoFi’s share price at that time [3].

The agreement has sparked concern among investors, as it signals a potential sell-off by Noto in the future. However, it is important to note that Noto has not sold any SoFi common stock since joining in early 2018 and has purchased 2,775,307 shares on the open market over the past four years [3]. Additionally, the agreement does not indicate that Noto will participate in any performance of the pledged shares above the cap or below the floor price unless he opts for cash settlement.

SoFi Technologies has been performing well, with strong second-quarter results that surpassed both Needham’s and Wall Street’s expectations for earnings and revenue. The company’s loan platform business achieved an impressive $9.5 billion in annualized origination volume, driving this growth [3]. Despite the recent agreement, the company continues to expand its services and retain customers, with plans to become a one-stop shop for financial services.

In conclusion, while the prepaid stock agreement involving CEO Anthony Noto has caused SoFi Technologies shares to fall, the underlying fundamentals of the company remain strong. Investors should monitor the situation closely and consider the long-term prospects of the company, as well as the potential impact of the agreement on Noto’s decision-making.

References:
[1] https://247wallst.com/forecasts/2025/08/29/sofi-technologies-sofi-price-prediction-and-forecast-2025-2030/
[2] https://seekingalpha.com/news/4490329-sofi-ceo-enters-241m-prepaid-stock-deal-on-15m-shares
[3] https://www.investing.com/news/sec-filings/sofi-ceo-enters-prepaid-variable-forward-contract-on-15-million-shares-93CH-4216190