TLDR
- SoFi Pops on Earnings, Drops After-Hours on $1.5B Share Offering News
- SoFi Surges 6.6% on Q2 Beat, But After-Hours Dip Follows Share Dilution
- SoFi Gains on Profit Streak, Stumbles Post-Close on $1.5B Stock Offering
- Strong Q2 Lifts SoFi Shares, But Capital Raise Triggers After-Hours Drop
- SoFi’s Growth Impresses, Yet $1.5B Offering Spooks Investors After Hours
SoFi Technologies, Inc. (NASDAQ: SOFI) saw a sharp rise in regular trading on July 29, closing at $22.40, up 6.57%. However, shares dropped to $20.94 in after-hours trading, marking a 6.52% decline. The swing followed a strong earnings report and the announcement of a $1.5 billion public share offering.
SoFi Technologies, Inc. (SOFI)
Strong Q2 Results Drive Daytime Rally
SoFi delivered robust second-quarter results, showing clear business momentum across its segments. Revenue jumped 44% year-over-year to $858 million, driven by gains in lending and financial services. The company also posted a net income of $97 million, with earnings per share at $0.08.
The $SoFi numbers are INSANE. I see all-time highs as imminent after these tremendous results.
Record Adjusted Net Revenue: $858M (+44% YoY) vs. $805M expected
Adjusted EBITDA: $249M (29% margin) vs. $208M expected
EPS: $0.08 vs. $0.06 expected
New members: 846,000 (11.746M… pic.twitter.com/I2tTbtIG1a
— AverageDipBuyer (@AverageDipBuyer) July 29, 2025
Membership growth remained strong adding 850,000 new users in the quarter, pushing total membership to 11.7 million. The user base expansion reflects increased demand across SoFi’s banking, investing, and lending products. The market responded positively, sending the stock higher during the regular session.
SoFi’s performance marked its fourth consecutive quarter of profitability, reflecting strong cost discipline and rising operating leverage. The firm has expanded its revenue mix by diversifying services across financial verticals. Product cross-selling and platform efficiency continued to support earnings strength.
After-Hours Slump Follows $1.5B Share Offering Announcement
SoF has filed for an underwritten public offering of $1.5 billion in common stock. All shares will be issued by the company, with Goldman Sachs acting as the sole underwriter for the transaction. The firm also granted a 30-day option to purchase up to 15% more shares.
$SOFI just filed an offering of $1.5B of common stock with an option to increase that by 15% to $1.725B. The price of the offering is unspecified. If it's at today's closing price, this is an additional 6-7% dilution.
The stock is down 6% in the AH on the news.
I'm not a fan.… pic.twitter.com/CF9XRKjG9P
— Data Driven Investing (@DataDInvesting) July 29, 2025
SoFi plans to use the proceeds for general corporate purposes, including working capital and new business opportunities. The offering will be made under an effective automatic shelf registration statement filed with the SEC. A final prospectus supplement will be made available upon completion of the regulatory process.
Market reaction to the offering was immediate and negative, as share dilution concerns pressured the stock in after-hours trading. The decline nearly wiped out the session’s earlier gains, showing the sensitivity of the market to equity offerings. However, the offering reflects SoFi’s intent to strengthen its capital position amid continued growth.
Outlook Remain Positive Despite Near-Term Pullback
SoFi transformed from a student loan refinance company into a full-service digital financial platform. The company now offers products spanning personal finance, home loans, investing and banking. SoFi Bank, its chartered entity, also adds to its lending and deposit capabilities.
The firm has continued to scale operations with a focus on expanding margins and driving sustained user acquisition. It has consistently leveraged its platform to increase monetization across its growing customer base. The offering, while dilutive, may help fund further innovation and long-term strategy.
The core fundamentals remain strong, supported by recurring profitability and diversified revenue streams. SoFi remains on a solid growth trajectory with expanding reach in the digital finance market. Market performance in the near term may remain volatile as the offering progresses.
