SoFi Stock Fell More Than 6% in Morning Trading

SoFi Stock Fell More Than 6% in Morning Trading. SoFi Updated 2022 Annual Guidance To Reflect Latest Extension Of Federal Student Loan Payment Moratorium.

SoFi now expects adjusted net revenue for the full year to total $1.47 billion, down from earlier guidance of $1.57 billion, the company said in a statement Wednesday after the close of regular U.S. trading. Adjusted earnings before interest, taxes, depreciation and amortization are likely to total $100 million, down from a previous forecast of $180 million.

SoFi’s student-loan-refinancing business has operated at less than 50% of its pre-pandemic levels for the past two years, Chief Executive Officer Anthony Noto said in the statement. The San Francisco-based lender said it expects the upcoming fall midterm elections to result in another payment extension beyond August, and that the moratorium probably won’t end this year.

“SoFi has done an outstanding job achieving record financial results, member and product growth and consistent profitability, despite the negative impact of the extended student-loan-payment moratorium,” Noto said in the statement.

The company said it still expects $280 million to $285 million of adjusted net revenue in the first quarter, and as much as $5 million of adjusted Ebitda.

Separately, SoFi said that SoftBank Group Corp.’s Michel Combes and Carlos Medeiros will step down from the lender’s board at the company’s annual meeting, while Clay Wilkes, founder of Galileo Financial Technologies, is departing immediately. As part of the resignations, SoftBank affiliate Delaware Project 10 LLC and Red Crow Capital LLC waived their right to designate nominees to the board, according to a regulatory filing Wednesday.