Key Takeaways
- SOFI stock declined more than 10% across five sessions, closing at $12.33.
- The digital assets division generated $121.6M in Q1 revenue but delivered only $852,000 in net income after deducting $120.7M in costs.
- SoFi reports 239,509 crypto accounts total, representing all accounts ever created rather than currently active users.
- The firm is reorganizing its SoFiUSD stablecoin operations into a distinct regulated structure to align with GENIUS Act requirements.
- Mizuho maintained its Outperform stance while lowering the price objective from $38 down to $29 after reviewing Q1 figures.
SoFi Technologies offered shareholders their most transparent view yet of its cryptocurrency operations this quarter — revealing a picture that raised eyebrows across Wall Street. Shares tumbled over 10% during a five-day stretch, settling at $12.33 as investors processed the remarkably narrow profit margins.
On the surface, the figures appeared impressive: $121.6 million in digital asset transaction revenue during the first quarter. However, after accounting for $120.7 million in associated costs, the actual net contribution from cryptocurrency trading totaled a mere $852,000.
The company employs gross accounting for its crypto operations because it functions as a principal in transactions — purchasing and selling digital assets directly before transferring them to clients. This approach significantly inflates both revenue and expense figures, creating an appearance of scale that doesn’t translate proportionally to bottom-line earnings.
SoFi’s platform currently hosts 239,509 cryptocurrency accounts. Important context: this metric represents the cumulative total of all accounts ever established, rather than just those currently engaged in trading activity. The genuine active user base is presumably considerably smaller.
First Quarter Performance Exceeds Projections
Setting aside the cryptocurrency discussion, SoFi’s overall Q1 performance proved respectable. The financial services company delivered earnings of $0.12 per share, aligning with Street expectations and representing a 100% increase from the $0.06 posted during the comparable period last year.
Overall revenue reached $1.09 billion, surpassing the $1.05 billion analyst forecast. This represented a robust 42.6% year-over-year increase. Looking ahead to fiscal 2026, management has projected full-year EPS of $0.60.
Mizuho’s Dan Dolev characterized the results as “solid” and highlighted that member expansion “remained robust.” While maintaining an Outperform recommendation, he reduced his price objective from $38 to $29 following adjustments to 2026 and 2027 projections.
Other Wall Street voices expressed more cautious views. Barclays slashed its target from $28 down to $18 while maintaining an Equal Weight stance. Wells Fargo lowered expectations from $19 to $18, also with Equal Weight. Goldman Sachs held steady with a Neutral rating at $17. UBS adjusted downward from $24.50 to $21, maintaining Neutral.
The consensus price target among analysts currently stands at $22.72, with TipRanks data indicating seven Buy ratings, nine Hold recommendations, and three Sell calls.
Stablecoin Operations Face Regulatory Overhaul
SoFi introduced its proprietary stablecoin, SoFiUSD, in the latter part of last year, marketing it as a business payment solution. The financial institution coupled this launch with a Mastercard collaboration designed to facilitate future transaction settlements.
Regulatory developments are now mandating operational changes. The GENIUS Act requires SoFi to ultimately relocate its stablecoin business into an independently licensed or regulated structure. Management indicates it has already begun working toward this organizational transition.
Regarding insider activity, Chief Executive Anthony Noto purchased 28,900 shares at $17.32 during March. Chief Technology Officer Jeremy Rishel divested 94,958 shares at $17.43 the subsequent day. Company insiders have collectively sold approximately $4.1 million in stock throughout the past three-month period.
SOFI’s 52-week trading range extends from $12.56 to $32.73. The equity’s 50-day moving average stands at $17.49, while the 200-day average rests at $23.16.
