Overview
- Short seller Muddy Waters disclosed a position against SoFi and accused the company of pervasive accounting and business‑model manipulation.
- The report alleges 2025 Adjusted EBITDA of $1.054 billion is overstated by roughly $950 million, including $194 million of marketing costs treated as capital assets.
- Muddy Waters says SoFi failed to record at least $312 million of borrowings and estimates true personal‑loan charge‑offs near 6.1% versus the reported 2.89%.
- It characterizes parts of the student‑loan and loan‑platform operations as seller‑financed or “wet‑funded” transactions that create fair‑value gains and resemble disguised debt.
- CEO Anthony Noto disclosed a $500,000 purchase of 28,900 shares at $17.3189 after the report as the stock closed down about 1.3% at $17.37, and Keefe Bruyette kept an Underperform rating with a $20 target.