SoFi Technologies Inc. (SOFI) shares plummeted 5.09% in after-hours trading on Tuesday, despite the company reporting strong second-quarter earnings earlier in the day. The stock's decline came following an announcement of a public offering of common stock, which overshadowed the positive financial results and raised full-year guidance.

Earlier on Tuesday, SoFi reported impressive second-quarter results that exceeded analyst expectations. The fintech company posted adjusted earnings of $0.08 per share, surpassing the consensus estimate of $0.06. Revenue for the quarter reached $858 million, marking a 44% year-over-year growth and beating analyst projections of $803.1 million. The company also reported record loan originations, with personal loans up 66%, student loans up 35%, and home loans up 92% compared to the previous year.

Following these strong results, SoFi raised its full-year 2025 guidance. The company now expects adjusted net revenue of approximately $3.375 billion, up from its previous forecast of $3.235 billion to $3.31 billion. Additionally, SoFi increased its earnings per share outlook to $0.31, up from the previous range of $0.27 to $0.28. The positive earnings report and raised guidance initially drove the stock up by nearly 18% during regular trading hours. However, the after-hours announcement of a public offering of common stock quickly reversed these gains, causing the sharp 5.09% decline. While the size of the offering was not disclosed, investors reacted negatively to the potential dilution of existing shares, overshadowing the otherwise positive financial news.