Key Points
- SoFi announced a $1.5 billion public stock offering.
- The move comes after the fintech company’s market value nearly doubled in 2025.
- Investors often react negatively to new offerings because they dilute existing shareholders.
SoFi shares slid nearly 6% in after-hours trading on Thursday after the company revealed plans to sell $1.5 billion worth of stock to the public.
The online lender and digital banking company said in a press release that the fresh capital will go toward “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 timing raised eyebrows on Wall Street. SoFi’s market cap has almost doubled this year, and the stock has surged more than sixfold since late 2022 — one of the most impressive rallies in the fintech space. Still, even fast-growing companies often see their stock drop when they announce new offerings, since the additional shares can weaken the value of current investors’ stakes.
SoFi’s Strong Quarter
The announcement comes on the heels of a strong quarter. In late October, SoFi reported third-quarter revenue of $961.6 million, up 38% from a year earlier. Net income more than doubled to $139.4 million, and the company ended the quarter with $3.25 billion in cash and equivalents.
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Despite the solid numbers, Thursday’s news reminded investors that rapid expansion often comes with fresh capital needs — and sometimes, short-term stock pressure.
