Key Highlights
- SOFI shares declined more than 10% across five sessions, settling at $12.33.
- The digital asset division generated $121.6M in Q1 sales but posted a mere $852,000 in net revenue following $120.7M in costs.
- SoFi currently reports 239,509 crypto accounts, representing cumulative accounts opened rather than active users.
- The fintech firm is reorganizing its SoFiUSD stablecoin operations into a separate regulated structure to meet GENIUS Act requirements.
- Analyst firm Mizuho maintained its Outperform stance while lowering the price target from $38 down to $29 post-earnings.
SoFi Technologies delivered its most transparent breakdown yet of its cryptocurrency operations this quarter — revealing a picture that left Wall Street concerned. Shares tumbled over 10% during a five-day stretch, landing at $12.33 as traders absorbed the reality of exceptionally narrow profit margins.
On the surface, the figures appeared impressive: the crypto segment brought in $121.6 million in transaction volume during the first quarter. However, after accounting for $120.7 million in associated costs, actual net earnings from cryptocurrency trading amounted to a modest $852,000.
The company uses gross reporting for its cryptocurrency operations because it functions as a principal in transactions — purchasing and selling digital assets directly before transferring them to clients. This accounting method amplifies both revenue and expense figures, creating an appearance of scale that doesn’t translate proportionally to bottom-line profitability.
Currently, the platform shows 239,509 crypto accounts. It’s important to recognize this number represents all accounts created historically, not exclusively those with ongoing activity. The actual number of engaged users is presumably considerably smaller.
First Quarter Performance Exceeds Projections
Beyond the cryptocurrency conversation, SoFi’s overall first-quarter performance showed strength. The financial technology company posted earnings of $0.12 per share, aligning with Wall Street expectations and representing a 100% increase from the $0.06 reported during the comparable period last year.
Overall revenue reached $1.09 billion, surpassing analyst forecasts of $1.05 billion. This marked a 42.6% year-over-year increase. Looking ahead to fiscal 2026, management has set an earnings-per-share guidance of $0.60.
Mizuho’s Dan Dolev characterized the quarterly report as “solid” and highlighted that customer acquisition “remained robust.” While maintaining an Outperform recommendation, he reduced his price objective from $38 to $29 following revised projections for 2026 and 2027.
Other Wall Street firms showed greater caution. Barclays reduced its target from $28 to $18 while keeping an Equal Weight designation. Wells Fargo adjusted downward from $19 to $18, also Equal Weight. Goldman Sachs maintained a Neutral rating with a $17 price point. UBS shifted from $24.50 to $21, remaining Neutral.
The analyst community’s average price target currently stands at $22.72, with TipRanks consensus data indicating seven Buy ratings, nine Hold recommendations, and three Sell opinions.
Stablecoin Operations Face Regulatory Overhaul
SoFi introduced its proprietary stablecoin, SoFiUSD, in the closing months of last year, marketing it as a commercial payment solution. The banking entity combined this launch with a Mastercard collaboration to facilitate upcoming settlement functions.
Recently enacted regulations are now mandating organizational modifications. The GENIUS Act requires SoFi to ultimately transfer its stablecoin business into a distinctly licensed or regulated subsidiary. Company officials confirm they’re actively pursuing this operational transition.
Regarding insider activity, Chief Executive Anthony Noto acquired 28,900 shares at $17.32 during March. Chief Technology Officer Jeremy Rishel divested 94,958 shares at $17.43 the subsequent day. Company insiders have collectively sold approximately $4.1 million in stock throughout the previous three-month period.
SOFI’s trading range over the past 52 weeks spans from $12.56 to $32.73. The equity’s 50-day moving average currently rests at $17.49, while the 200-day moving average sits at $23.16.
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