SoFi Technologies Inc., which operates a student debt refinancing firm, cut its forecast after President Joe Biden’s administration again extended a pause on student loan payments. Shares of the lender plummeted.
SoFi now expects full-year adjusted net revenue of $1.47 billion, down from a previous guidance of $1.57 billion, the company said in a statement. released Wednesday after the close of regular trading in the United States. Adjusted earnings before interest, taxes, depreciation and amortization are expected to total $100 million, down from the previous guidance of $180 million.
SoFi shares fell in aftermarket trading, falling 3.7% to $8.43 at 4:37 p.m. in New York.
SoFi’s student loan refinancing business has operated at less than 50% of its pre-pandemic levels for the past two years, chief executive Anthony Noto said in the statement. The San Francisco-based lender said it expects the upcoming midterm elections in the fall to result in another payment extension beyond August, and that the moratorium will not probably won’t end this year.
“SoFi has done an outstanding job of achieving record financial results, member and revenue 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 first-quarter adjusted net revenue of $280 million to $285 million and adjusted EBITDA of $5 million.
Separately, SoFi said Michel Combes and Carlos Medeiros of SoftBank Group Corp. will leave the lender’s board at the company’s annual meeting, while Clay Wilkes, founder of Galileo Financial Technologies, will leave immediately. As part of the resignations, SoftBank Delaware subsidiary Project 10 LLC and Red Crow Capital LLC waived their right to nominate board nominees, according to a regulatory filing Wednesday.
The story continues
“Clay, Michel and Carlos provided crucial advice to the Board of Directors and the management team as the company expanded into new products, raised significant capital, completed a critical strategic acquisition, transitioned to a public company on the stock exchange and received a national banking license,” Noto said in a statement on Wednesday. “Given all we have accomplished, this marks a natural point to continue transitioning our board in size and composition over time.”$SoFi Technologies Inc.(SOFI)$
source：Bloomberg
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