SoFi Drops Sharply As $1.5B Offering Priced At Low Of Range – Volatility Continues

SoFi's stock (SOFI) gave holders a rollercoaster session, initially soaring on strong Q2 earnings before sharply reversing course following the announcement of a $1.5 billion common stock offering. The stock closed at $22.40, up 6.57% for the day, but is now down 8% in extended hours after the pricing for the offering broke.

The digital personal finance company reported record net revenue of $855 million for Q2 2025, a 44% year-over-year increase. Net income reached $97 million, signaling a significant turnaround, with member growth also accelerating ~30%, with the company projecting the addition of 3 million new members.

SoFi's stock price had come within inches of setting an all-time-high, reaching a level of $25.11, almost 20% higher on the day within minutes of the open.

However, the positive momentum was short-lived. Immediately following the earnings release, SoFi announced a substantial common stock offering, with Goldman Sachs acting as the sole book-running manager. The offering price was ultimately set at the low end of the anticipated $20.85-$21.50 range at $20.85, reflecting concerns about the scale of potential dilution.

The market reacted swiftly, erasing the day's gains in after-hours trading. The dilution effect, estimated at 6-7% for existing shareholders, weighed heavily on the stock.

Analysts' sentiment is divided. While Q2 results exceeded expectations with EPS of $0.08 and robust guidance for member and revenue growth, the share offering has tempered enthusiasm.

The offering being priced at the low end of the expected range has seen the stock pull back below that level, with the latest price in the pre-market $20.59.