SoFi's stock drops on $1.5 billion share sale announcement
SoFi's stock fell nearly 6% after announcing a $1.5 billion share sale. The company plans to use the proceeds for general corporate purposes, including enhancing capital position and funding growth. This announcement follows a significant increase in SoFi's market cap in 2025. Despite the stock's rise since 2022, the share sale led to a drop due to dilution concerns. SoFi's recent earnings showed a 38% revenue growth and net income more than doubled.
Anthony Noto, CEO of SoFi, speaking with CNBC at the annual Allen & Co. Media and Technology Conference in Sun Valley, Idaho on July 10th, 2025.
David A. Grogan | CNBC
SoFi shares fell almost 6% in extended trading Thursday after the fintech company announced a $1.5 billion stock offering.
The company, which provides online loans and other banking services, said in a press release that it will use the proceeds for "general corporate purposes, including but not limited to enhancing capital position, increasing optionality and enabling further efficiency of capital management, and funding incremental growth and business opportunities."
The announced offering comes after SoFi's market cap almost doubled so far in 2025. The stock price is up more than sixfold since the end of 2022.
A company's share price often drops on a planned share sale as the offering dilutes the value of existing holders' stakes.
In its third-quarter earnings release in late October, SoFi reported revenue growth of 38% from a year earlier to $961.6 million, while net income more than doubled to $139.4 million. The company reported cash and equivalents of $3.25 billion.
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