Key Highlights
- SOFI shares decreased more than 10% across five sessions, reaching $12.33.
- The digital asset division generated $121.6M in Q1 revenue while delivering only $852,000 net after $120.7M in costs.
- SoFi currently maintains 239,509 crypto accounts, representing total accounts opened historically rather than current 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 reducing the price objective from $38 down to $29 after reviewing Q1 data.
SoFi Technologies provided investors with an unprecedented breakdown of its digital asset operations during the first quarter — revealing a picture that proved more nuanced than many anticipated. Shares declined over 10% during a five-day stretch, settling at $12.33 as market participants processed the remarkably slim profitability of this business segment.
The top-line figure appeared impressive: $121.6 million in cryptocurrency transaction revenue during Q1. However, after accounting for $120.7 million in related expenses, the actual net contribution from digital asset trading operations amounted to merely $852,000.
SoFi accounts for its cryptocurrency operations on a gross basis due to its role as principal — the company directly purchases and sells digital assets before transferring them to end users. This accounting approach amplifies both revenue and expense figures, creating the appearance of a larger operation than what profitability metrics ultimately reflect.
The platform currently shows 239,509 cryptocurrency accounts. An important distinction: this metric encompasses all accounts established since inception, rather than exclusively active trading accounts. The genuine active user base stands considerably lower.
First Quarter Performance Surpasses Projections
Beyond the cryptocurrency segment discussion, SoFi’s overall Q1 performance delivered solid results. The company posted earnings of $0.12 per share, aligning with Wall Street expectations while doubling the $0.06 recorded during the comparable period last year.
Total revenue reached $1.09 billion, surpassing the $1.05 billion analyst consensus. Year-over-year revenue climbed 42.6%. Looking ahead to full-year 2026, SoFi has established EPS guidance at $0.60.
Mizuho analyst Dan Dolev characterized the quarterly report as “solid” while highlighting that member expansion “remained robust.” He preserved an Outperform rating while adjusting his price objective from $38 down to $29 following revisions to 2026 and 2027 projections.
Other Wall Street analysts expressed more cautious perspectives. Barclays reduced its target from $28 to $18 while maintaining an Equal Weight rating. Wells Fargo lowered its outlook from $19 to $18, also Equal Weight. Goldman Sachs sustained a Neutral stance with a $17 target. UBS adjusted from $24.50 to $21, maintaining Neutral.
The analyst community’s average price target currently stands at $22.72, with TipRanks consensus reflecting seven Buy ratings, nine Hold positions, and three Sell recommendations.
Stablecoin Operations Facing Regulatory Realignment
SoFi introduced its stablecoin offering, SoFiUSD, during the latter part of last year, framing it as a commercial payment solution for enterprise clients. The banking entity established a Mastercard collaboration to facilitate upcoming settlement functions.
Recent regulatory developments are mandating organizational modifications. The GENIUS Act requires SoFi to ultimately relocate its stablecoin activities into a distinct licensed or regulated corporate structure. Management has indicated this transition process is already in motion.
Regarding insider activity, CEO Anthony Noto acquired 28,900 shares at $17.32 during March. CTO Jeremy Rishel divested 94,958 shares at $17.43 the subsequent day. Company insiders have collectively sold $4.1 million in stock value throughout the preceding three months.
SOFI’s 52-week trading range extends from $12.56 to $32.73. The stock’s 50-day moving average registers at $17.49, while the 200-day moving average sits at $23.16.
