By Mackenzie Tatananni

SoFi Technologies logged a powerhouse first quarter, but it remains to be seen whether the report can shake the trepidation many investors have been feeling following the fintech's difficult start to the year.

Core performance metrics either met or exceeded Wall Street's expectations. Earnings of 12 cents a share were in line with consensus views. Adjusted net revenue rose to $1.1 billion from $771 million last year, surpassing calls for $1.05 billion.

Revenue grew across all of SoFi's core business segments. Financial services revenue, which spans products including SoFi Invest and the company's branded credit card, rose 41% to $429 million, though this marked a slower pace than the 78% growth posted last quarter.

Although SoFi has diversified well past its origin in student loans, its lending division remains a primary growth engine. Revenue for SoFi's lending segment rose 53% to $629 million in the latest quarter, while fee-based revenue -- a category SoFi has been aggressively growing to diversify away from interest-rate sensitivity -- increased 23% to $387 million.

Total loan originations reached $12.2 billion in the quarter, with SoFi citing "record originations" across all three of its lending segments. This compares with the $7.2 billion recorded in the same period last year.

The stock's upward trajectory began in earnest last year, when it rallied on the back of a series of strong quarters. Coming into Wednesday's session, shares have gained 47% over the past 12 months. The S&P 500 has gained 28% over the same period.

SoFi was embroiled in controversy last month when short seller Muddy Waters Research released a scathing report accusing the company of accounting manipulation.

SoFi hit back at what it called "factually inaccurate and misleading" claims and vowed to take legal action against the firm. In turn, Muddy Waters told Barron's that it "has been sued a number of times" and remains "undefeated."

SoFi stock hasn't been able to sustain its hot streak so far into 2026, sinking nearly 30% against a 4.3% gain for the benchmark index. Several issues are to blame: the short report, a lofty valuation, and broader weakness in the financial technology sector. The iShares FinTech Active exchange-traded fund has lost nearly 10% this year.

Still, the report indicates customers are continuing to pile into SoFi's services and products. The company added 1.1 million new members in the quarter, ending the period with a total 14.7 million members.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 29, 2026 07:00 ET (11:00 GMT)

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