Overview
- Muddy Waters disclosed a short position in SoFi and published a report alleging significant accounting and business-model problems.
- The report claims at least $312 million of unrecorded debt and roughly $950 million of EBITDA inflation, implying EBITDA near $100 million.
- It alleges SoFi used loan marks, seller‑financed sales, and off‑balance‑sheet or wet‑funded structures to recharacterize borrowings as revenue.
- The short seller estimated personal‑loan charge‑offs around 6.1% versus SoFi’s reported 2.89%.
- SoFi shares fell more than 4% intraday before closing down 1.3% at $17.37, then rose about 1% after-hours after CEO Anthony Noto disclosed a $500,000 purchase of 28,900 shares, while Keefe Bruyette reiterated an Underperform rating with a $20 target and said the report raises new questions.