SoFi Shares Drop 12% on Weak Q2 Guidance

SoFi Technologies shares plunged more than 12 percent in early trading Wednesday after the online lender reported first-quarter results that exceeded Wall Street expectations but included guidance below analyst forecasts.

The company posted adjusted earnings of 12 cents per share, matching estimates, and revenue of $1.10 billion, surpassing the $1.05 billion anticipated by analysts surveyed by FactSet. That marked a 43 percent increase from the year-earlier period, when net income was $71.5 million, or 6 cents per share. Net income for the quarter ended March 31 reached $167.1 million. Adjusted EBITDA rose 62 percent to $339.9 million.

Membership expanded robustly, with SoFi adding 1.1 million new users to reach 14.7 million, a 35 percent year-over-year gain. Total products grew 39 percent to 22.2 million. Lending drove much of the performance, as loan originations hit a record $12.2 billion. Personal loans reached $8.3 billion, student loans more than doubled to $2.6 billion, and home loans climbed to $1.2 billion. Credit quality improved, with annualized net charge-offs in personal loans declining 28 basis points from the prior year. Total assets stood at $40 billion.