Shares of SoFi Technologies (SOFI -8.90%) declined on Wednesday after the digital financial services provider fell short of investors' lofty expectations.
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Serving more people
SoFi added 1.1 million new members during the second quarter. That brought its total to 15.8 million by quarter's end, representing a 35% year-over-year gain.
The fintech provider saw its products -- individual financial accounts or offerings -- grow at an even faster pace than new members, with a record 2.2 million product additions in the quarter. That brought its total to 24.4 million products, up 42%.
"For the first time, we added twice as many products as members, a major milestone that underscores the trust members place in SoFi and the power of our everything app," CEO Anthony Noto said.
NASDAQ: SOFI
Key Data Points
All told, SoFi's adjusted net revenue jumped 40% to $1.2 billion. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), in turn, increased 44% to $358 million.
Raised guidance
Additionally, SoFi boosted its full-year adjusted net revenue forecast to $4.75 billion to $4.85 billion, signifying growth of 32% to 35%. Management also reaffirmed its guidance for adjusted EBITDA of $1.6 billion and net income of $825 million, or $0.60 per share.
Yet investors were still unsatisfied.
If there was one blemish on Sofi's otherwise solid Q2 report, it was a 23% decline in technology platform revenue to $85 million, which management attributed to the loss of a large client in late 2025.
But overall, the downturn in Sofi's share price was likely due to the sky-high expectations the market has for its performance -- and the difficulty in meeting them.
