Should You Buy SoFi Stock Before July 29?

SoFi Technologies (NASDAQ: SOFI) stock has been a poor performer this year. The all-digital bank has had a few missteps, and carrying a premium valuation, it was a setup for a fall.

But at the new lower price, it no longer looks so expensive. Heading into the second-quarter earnings report, is it time to buy SoFi stock?

What to expect in the second-quarter report

SoFi has been reporting incredible performance. Top-line growth accelerated to 41% year over year in the 2026 first quarter, driven by a rebound in the loan business. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 62% with a 31% margin, and net income increased 134% with a margin of 15%.

For the second quarter, management is guiding for strong performance, but not quite as strong. It's expecting adjusted net revenue to increase by 30%, an adjusted EBITDA margin of 30%, and a net income margin of 12% to 13%.

Image source: Getty Images.

SoFi management declined to provide guidance for specific categories, saying that some might do a little better or worse than expected. Its guidance includes the expectation of no rate cut, which was confirmed at the most recent Federal Reserve meeting, and could put some pressure on the lending business. For the full year, it expects the financial services segment to increase at least 40%, in line with first-quarter performance, and Tech Platform revenue of $325 million, down from $450 million last year.

SoFi already recorded a 27% decrease in Tech Platform revenue in the first quarter, due to the loss of a major client by the end of 2025, so that's likely to show up every quarter this year.

How SoFi stock could move on July 29

Several factors could influence how the market reacts to the news. In general, SoFi tends toward conservative guidance. If it beats, the market will celebrate it. As mentioned, it's looking much more affordable right now, trading at 23 times forward one-year earnings, which also gives it room to run.

The expected decline in the Tech Platform is already included in the price, so it won't surprise anyone.

Key features that could affect how the market receives the report include growth in the lending segment and charge-off rates. In a high-interest-rate environment, these metrics demonstrate a bank's strength.

Should investors buy the stock before the report? I don't necessarily recommend it unless you see SoFi's long-term opportunity and are willing to hold through ups and downs. There are no guarantees about which way the stock will go based on earnings, and investors shouldn't buy on the hopes of a short-term lift.

Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.