SoFi ($SOFI) stock is down despite record Q2 revenue and raised full-year guidance. Are you buying the dip?

Beat on earnings, beat on revs, raised guidance, but still a 10% drop makes no sense. RSI way too low.

EZ buy

I`m buying because ive owned since IPOE, and have watched this grow and evolve for the past 5 years , the growth story is intact, and the future looks bright. At some point in time the value of the stock will align with the performance of the company. Bought 500 more today and will buy 500 more at a lower price over the next couple of days.

Buying put options. Easy money.

The selloff was driven by (Trump craziness) and what deteriorated underneath and what management did not raise. Technology Platform remained weak. Quarterly revenue fell 23% year over year to $84.5 million; first-half revenue fell 25%. Contribution profit fell 65%, and its contribution margin collapsed from 30% to 14%. Enabled accounts fell 16% to 134.8 million. The loss of a large customer was already known, but SoFi still has not replaced that volume. The higher revenue guidance produced no higher profit guidance. SoFi raised adjusted revenue from approximately $4.66 billion to $4.75–$4.85 billion, but left adjusted EBITDA at $1.6 billion, net income at $825 million, and EPS at $0.60. That implies limited incremental conversion of the additional revenue into 2026 profit. The implied EBITDA margin also shifted from approximately 34% to 33–34%. Financial Services margins weakened. Revenue grew 29%, but contribution profit increased only 13%.

Also... Growth is increasingly lending-driven. Lending supplied $711.7 million...about 59% of consolidated adjusted revenue...and grew 59%, while Technology Platform contracted. Credit performance was actually healthy, but this makes SOFI more exposed to interest rates, funding conditions and unsecured-consumer credit than the “diversified technology platform” valuation thesis suggests. Share dilution was material. Diluted weighted-average shares increased from 1.183 billion to 1.352 billion, approximately 14% year over year. Net income grew 61%, but EPS grew only 50%, partly because more shares divided the earnings. Sequential profitability did not improve much. Q2 net income was $156.6 million versus $166.7 million in Q1...EPS remained $0.12. Adjusted EBITDA margin slipped from approximately 31% to 30%, despite higher revenue.

Overall... Excellent headline growth, but weaker platform economics, less operating leverage than investors wanted, continued dilution, and too much dependence on lending.