SoFi Technologies Inc. is facing a turbulent moment as Muddy Waters Research accuses the company of improper accounting practices that could significantly undermine the integrity of its personal lending business. The allegations have sent SoFi's stock down nearly 50% from its 2025 highs, raising concerns over the accuracy of its financial statements and the health of its operations. Despite reporting strong revenue growth and expanding partnerships, the uncertainty surrounding these accusations poses a serious risk to SoFi's reputation and future earnings potential.
“MW’s elevator pitch on $SOFI from @SquawkCNBC this morning - 'SOFI’s superpower is borrowing money and turning the borrowing proceeds into loan sales'”
“$SOFI #SOFI I'd be relatively shocked if @anthonynoto isn't on CNBC within the next day giving his side of things after Muddy Waters came on this morning with some pretty bold claims.”
“Upside target: $18.75 up to $19.30.”
“SoFi Technologies has expanded its Loan Platform Business with over $3.6b in committed personal loan delivery. The new volume comes through partnerships with a global bank, a large financial services and insurance group, and a top global private asset manager.”
“SoFi Technologies, listed as NasdaqGS:SOFI, is drawing fresh attention as these new partnerships arrive after a volatile share price stretch.”
“The US$3.6b of new loan delivery commitments supports SoFi's push toward a more fee based, capital light model with large institutional partners.”
“SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion.”
“SoFi Technologies SOFI partnered with Mastercard, allowing SoFiUSD as a settlement option across its global payments network. This will enable settling card-based transactions using SoFiUSD, aiding faster money movement for cross-border remittances and B2B money transfers.”
“SoFi reported revenues of $1.01 billion, up 37% year on year. This result topped analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also logged full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.”
“Since acquiring Galileo Financial Technologies in 2020, SoFi Technologies, Inc. SOFI has meaningfully strengthened its fintech foundation by embedding Galileo’s payment-processing and technology capabilities throughout its expanding ecosystem.”
“From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 24.38, well above the industry’s 9.15.”
“Some of the hardest hit in this area are Robinhood(NASDAQ: HOOD), down 39%, Affirm(NASDAQ: AFRM), down 40%, and SoFi(NASDAQ: SOFI), down 38% year to date. All three of these stocks had strong returns in 2025, and their valuations spiked. Along with seeing these stocks as overvalued, investors are concerned about a sluggish economy, rising credit risk, inflation, lower trading in a down market, and regulatory uncertainty, to name a few issues.”
