An Honest Discussion Of SoFi's Accounting And Risks

Nov. 28, 2022 9:00 AM ETSoFi Technologies, Inc. (SOFI)100 Comments
Christopher Hoeger profile picture
Christopher Hoeger


  • A look into HFI and HFS accounting methodologies and which SoFi should be using.
  • A look at the biggest risks that lie ahead.
  • SoFi is taking market share while increasing their net interest margin.
  • The loans are being held longer on the balance sheet, this is by design and we won't know whether or not they are holding to their 6-7 month guidance until the 1Q23 earnings report.
  • SoFi's management team has proven they can navigate headwinds much larger than a recession when the student loan moratorium was put in place.

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SoFi CEO Anthony Noto

Drew Angerer

About half the comments on my last article were talking about SoFi's (NASDAQ:SOFI) use of held-for-sale (HFS) accounting instead of held-for-investment (HFI) accounting. This has become the newest stick to beat SoFi with, so I thought I’d address it so we can put this issue

This article was written by

Christopher Hoeger profile picture
I am a chemical engineer who works primarily in the energy industry on carbon capture, utilization, and sequestration. I do research and development and I love my work. I am also an avid investor. I focus primarily on stocks with large growth potential or deep value. I usually take long positions if I choose to take a position, although I have been known to dabble in short term options occasionally. Follow me on Twitter @hoegermeister

Disclosure: I/we have a beneficial long position in the shares of SOFI, LC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained in this article is for informational purposes only. You should not construe any such information as legal, tax, investment, financial, or other advice. None of the information in this article constitutes a solicitation, recommendation, endorsement, or offer by the author, its affiliates or any related third party provider to buy or sell any securities or other financial instruments in any jurisdiction in which such solicitation, recommendation, endorsement, or offer would be unlawful under the securities laws of such jurisdiction.

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