SoFi Technologies (NASDAQ:SOFI) had a rough start on the market after its de-SPAC in June. The stock looked like it would recover back to the $20 ahead. That rebound ended when SoFi posted second-quarter results on Aug 12.
SoFi posted a weak forecast for the third quarter. It expects net revenue of $245 million to $255 million. Only two analysts offer an estimate of $270 million on average. The downside of the SPAC structure is that SoFi bypassed Wall Street’s initial public offering route. Investment firms have no incentive in covering SOFI stock.
For Q3, SoFi expects adjusted EBITDA of negative $7 million, down from the $11.2 million positive EBITDA in Q2. For the full year 2021, net revenue is $980 million and adjusted EBITDA is $27 million.
Catalysts
In Q2, SoFi’s members grew by 113% to 2.6 million. Products grew by 123% to 3.7 million. SoFi has three main businesses. First, the lending segment’s net revenue was $166.3 million in Q2. It earned $89.2 million in profits. Student loans growth weakened but is rebounding. Personal and home loan funding volumes grew as a result.
Revenue from financial services rose to $17 million, up from $2.4 million, thanks to SoFi Invest.
The technology platform segment, through Galileo Financial Technologies, doubled in accounts, to 79 million. The unit posted net revenue of $45.3 million.
SoFi’s stock plunged on the weak outlook. Growth rates are still impressive for patient investors willing to look beyond the quarter.