Muddy Waters Alleges 90% Inflation in SoFi's 2025 Adjusted EBITDA

Mar 22, 2026 (16 hr ago)
Negative
Muddy Waters Alleges 90% Inflation in SoFi's 2025 Adjusted EBITDA
A critical research report alleges SoFi inflated its 2025 adjusted EBITDA by 90% and questions its complex financial structures.

Allegations of Financial Misstatement

  • A research report claims SoFi's reported 2025 adjusted EBITDA figure of $1.05 billion was inflated by 90%1
  • The report specifically raises concerns regarding the company's utilization of off-balance-sheet structures in its financial reporting1

Company Response and Legal Posture

  • SoFi characterized the allegations as stemming from a "fundamental lack of understanding" of their business model1
  • The company has signaled its intent to explore potential legal action in response to the published report1

Conflicting Insider Trading Signals

  • CEO Anthony Noto recently executed a purchase of 28,900 shares on March 17th2
  • Conversely, CTO Jeremy Rishe completed a "sell-options" transaction totaling $4.48 million between March 16 and 182

Business Model Risks and Valuation Concerns

  • A cautious narrative highlights that future growth heavily relies on successful cross-selling within a competitive fintech and banking environment3
  • The company faces ongoing pressure on its net interest margin, alongside inherent regulatory and credit risks3
  • Valuation models suggest the stock may be significantly overvalued, with one estimate implying it trades 28.9% above its intrinsic value3
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Muddy Waters Alleges 90% Inflation in SoFi's 2025 Adjusted EBITDA | Foxly Invest