SoFi Technologies Inc. is facing a substantial stock decline of approximately 45% following allegations of financial mismanagement from Muddy Waters Research, which accuse the company of aggressive financial engineering. In response, SoFi has indicated plans to pursue legal action against Muddy Waters while asserting its financial practices are sound. Despite reporting record revenues of $3.61 billion for 2025 and promising significant future growth, investor confidence is in question as scrutiny on its financial practices intensifies.
“$SOFI “intends to explore potential legal action against Muddy Waters”…”
“MW is short $SOFI. We believe SOFI is a financial engineering treadmill—not a healthy origination business.”
“The results are in. @JDPower ranked SoFi Invest® #1 in DIY Investor Satisfaction for 2026 across: ✅ Products & services that meet your needs ✅ Ease of doing business ✅ Digital channels ✅ Value for fees paid.”
“J.D. Power ranked SoFi Invest #1 in DIY Investor Satisfaction - and it's because of our members who choose us to be their all-in-one app. We don't take that lightly. We keep earning it‼️”
“$SOFI institutional ownership is markedly lower than its peers. We hear from others that SOFI regularly stonewalls on hard questions.”
“We asked $SOFI 11 questions before we published. It answered zero. The only response was to have the in-house lawyer demand to know who we are.”
“$SOFI's real Personal Loan charge-off rate at ~6.1% vs. the 2.89% reported. Loans are disposed of days before the charge-off threshold, understating losses that feed into Fair Value models producing ~$259M in unwarranted gains.”
“After adjusting for what we view as inflated marks, off-balance-sheet borrowings, and capitalized expenses, we reduce $SOFI's 2025 Adjusted EBITDA by ~90%—from $1,054M to $103M.”
“SoFi stock has dropped because it was overvalued, not because it had seen growth slow. In fact, growth has accelerated, and the company has consistently been profitable.”
“And its guidance calls for 30% revenue growth and 34% earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in 2026.”
“Investors may want to kick the tires on these two popular fintechs because they could easily double their value within the next few years.”
“SoFi is transforming from a student-loan specialist into a full-service digital bank, targeting Gen Z with a mobile-first platform. A SoFiUSD stablecoin partnership with Mastercard positions SoFi at the forefront of cheaper, always-on crypto-powered payments.”