Shares of SoFi plunged more than 15% Wednesday after the company declined to raise its full-year outlook — a move CEO Anthony Noto said reflects macro reality, not weakening fundamentals.
“We did not raise the full-year guidance because when we originally gave the full-year guidance, we were anticipating at least two Federal Reserve rate cuts,” he told Jim Cramer. “And now we’re assuming that there will be no rate cuts.”
The digital finance company reported results that were largely in-line with expectations, posting earnings of 12 cents per share and $1.09 billion in net revenue. Despite what Noto described as a “remarkable” quarter — including meeting its “Rule of 40” target for the 18th consecutive quarter — investors focused on the unchanged outlook.
Noto said the decision underscores a shift in macro assumptions rather than any deterioration in the business itself.
“To raise the bar in an environment that was uncertain on the interest rate front and what’s going on with the Middle East, we just didn’t see it as a prudent thing to do,” he said.
The more cautious stance comes even as SoFi continues to deliver strong growth, including 41% revenue growth and 31% margins, alongside continued gains in members and product adoption. The company also generated more than $1 billion in cash revenue for the second consecutive quarter.
“We’re really hitting on all cylinders,” Noto said.
