SoFi Stock Drops 10% After Crypto Unit Posts Razor-Thin Margins

TLDR

• SOFI stock dropped over 10% in five trading days, falling to $12.33.
• SoFi’s crypto unit pulled in $121.6M in Q1 revenue but netted only $852,000 after $120.7M in expenses.
• The company now has 239,509 crypto accounts, though this includes all accounts ever opened, not just active ones.
• SoFi is restructuring its SoFiUSD stablecoin into a separately regulated entity to comply with the GENIUS Act.
• Mizuho kept an Outperform rating but cut its price target from $38 to $29 following the Q1 report.

SoFi Technologies gave investors their first detailed look at its crypto division this quarter — and the numbers told a complicated story. The stock fell more than 10% over five trading days to $12.33 as the market digested just how thin the margins really are.

SoFi Technologies, Inc., SOFI

The headline number looked strong: $121.6 million in crypto transaction revenue for Q1. But once $120.7 million in expenses were stripped out, the net revenue from digital asset trades came to just $852,000.

SoFi records its crypto business on a gross basis because it acts as a principal — it buys and sells the assets directly before passing them to customers. That model inflates both the revenue and cost lines, making the unit look bigger than it actually is in profit terms.

The company currently reports 239,509 crypto accounts on its platform. Worth noting: that figure includes every account ever opened, not just those actively trading. The real active user count is likely lower.

Q1 Earnings Beat Estimates

Despite the crypto noise, SoFi’s broader Q1 results were decent. The company reported earnings of $0.12 per share, matching the Wall Street consensus and doubling the $0.06 it earned in the same quarter last year.

Total revenue came in at $1.09 billion, ahead of the $1.05 billion analysts had expected. Revenue was up 42.6% year-over-year. For the full year 2026, SoFi has guided for EPS of $0.60.

Mizuho analyst Dan Dolev called the print “solid” and said member growth “remained robust.” He kept an Outperform rating but trimmed his price target from $38 to $29 after adjusting 2026 and 2027 estimates.

Other analysts were less warm. Barclays cut its target from $28 to $18 with an Equal Weight rating. Wells Fargo dropped from $19 to $18, also Equal Weight. Goldman Sachs held a Neutral with a $17 target. UBS moved from $24.50 to $21, also Neutral.

The average price target across analysts now sits at $22.72, with the TipRanks consensus showing seven Buys, nine Holds, and three Sells.

Stablecoin Restructuring Underway

SoFi launched its stablecoin, SoFiUSD, late last year, positioning it as a payment tool for businesses. The bank paired it with a Mastercard partnership to handle future settlement tasks.

Now, new regulation is forcing a structural change. Under the GENIUS Act, SoFi must eventually move its stablecoin operations into a separately licensed or regulated entity. The company says it is already working toward that transition.

On the insider front, CEO Anthony Noto bought 28,900 shares at $17.32 in March. CTO Jeremy Rishel sold 94,958 shares at $17.43 the following day. Insiders have sold a combined $4.1 million worth of stock over the past three months.

SOFI’s 52-week range runs from $12.56 to $32.73. The stock’s 50-day moving average is $17.49, and its 200-day sits at $23.16.

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