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SoFi Technologies (NASDAQ:SOFI) experienced significant premarket volatility on December 5, 2025, after announcing a substantial $1.5 billion common stock offering. The fintech company priced 54,545,454 shares at $27.50 each, representing a discount to its previous closing price of $29.60.
Shares plummeted approximately 7.30% in premarket trading to $27.44, reflecting investor concerns about potential dilution despite the company’s strong recent performance with the stock having surged over 92% year-to-date.
Dilution Impact: 54.5M New Shares and a 7.3% Premarket Slide
The San Francisco-based fintech company filed regulatory documents outlining its plans to offer 54,545,454 shares of common stock at $27.50 per share, approximately 7% below its December 4 closing price of $29.60. Goldman Sachs is leading the underwriting process, joined by BofA Securities, Citigroup, Deutsche Bank Securities, and Mizuho Securities.
The company has also granted underwriters a 30-day option to purchase an additional 8,181,818 shares at the same price, which could increase total proceeds if exercised.
The offering is expected to close on December 8, 2025, subject to customary closing conditions. SoFi stated it will use the net proceeds for general corporate purposes, including enhancing its capital position, increasing operational flexibility, and funding growth opportunities.
The timing of this capital raise follows an extraordinary period of stock appreciation, with shares climbing 92.2% in 2025 alone and more than sixfold since the end of 2022, bringing the company’s market capitalization to approximately $35.7 billion.
Stock dilution typically causes share prices to decline when companies announce new offerings, as each new share reduces the value of existing shareholders’ stakes. The premarket drop of 7.30% to $27.44 reflects investor reaction to this dilution effect, though the company’s strong fundamentals and growth trajectory may provide support.
The shares are being offered through an automatic shelf registration statement that became effective upon filing with the Securities and Exchange Commission on July 29, 2025.
Q3 Revenue Up 38% and Net Income Doubles Despite Pullback
SoFi’s decision to raise capital comes on the heels of impressive third-quarter results that demonstrated the company’s accelerating growth. Revenue jumped 38% year-over-year to $961.6 million, while net income more than doubled to $139.4 million.
The company reported cash and equivalents of $3.25 billion in its latest quarterly filing, providing a solid foundation for the planned offering. With diluted earnings per share of $0.56 and a profit margin of 19.46%, SoFi has transitioned from a growth-at-all-costs model to demonstrable profitability.
The digital financial services platform currently serves over 12.6 million members, offering lending, saving, spending, investing, and financial protection services through its app. Its technology platform Galileo supports financial solutions across nearly 160 million global accounts.
The company has also recently launched SoFi Crypto, becoming the first nationally chartered, FDIC-insured bank to offer cryptocurrency trading alongside traditional banking services, allowing users to trade Bitcoin, Ethereum, and Solana directly through the SoFi app.
Analysts remain cautiously optimistic about SoFi’s prospects despite the offering. The company could potentially be added to the S&P 500 index during December’s quarterly rebalancing, which would mark a significant milestone and require index funds to purchase SoFi shares.
Currently trading at a P/E ratio of 52.86, the stock reflects high growth expectations, though analyst price targets average $26.97, suggesting some valuation concerns even before the offering announcement.
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