SoFi’s $3.2B Equity Raise Dilutes Shares 16%; Q4 Revenue Tops $1.0B
SoFi posted Q4 revenue of $1.0B and net income of $174M after a $3.2B equity raise diluted shares by 16%, driving the stock from $33 to $19. Jim Cramer cites a 54% EPS growth forecast and 0.6 PEG ratio, deeming shares too cheap to ignore at 30 times earnings.
1. Q4 Financial Results
SoFi reported Q4 revenue of $1.0 billion, net income of $174 million and adjusted EBITDA of $318 million. The adjusted EBITDA margin reached 31%, driven by a $194 million contribution from its loan platform business and an expanding fee-based revenue mix.
2. Equity Raise and Share Impact
The company completed a $3.2 billion equity raise over six months, diluting shares by roughly 16%. This capital infusion coincided with a share price decline from $33 to $19 as investors weighed dilution against growth prospects.
3. Valuation and Cramer Commentary
Jim Cramer highlighted SoFi’s track record of exceeding revenue and EBITDA estimates for 18 quarters and noted a 54% EPS growth projection with a PEG ratio of 0.6. He argues the post-pullback valuation—around 30 times current earnings—offers a compelling entry point.