SoFi Technologies (NASDAQ:SOFI) stock is dropping 3.5% in Wednesday after-hours trading. The fintech cut its full-year 2022 guidance after President Biden extended the federal student loan payment moratorium by four more months to Aug. 31.
The company, which has a large business refinancing student loans, expects 2022 adjusted net revenue of $1.47B, less than the $1.55B consensus estimate and down from its prior guidance of $1.57B. It now expects 2022 adjusted EBITDA of $100M, less than the Visible Alpha consensus of $173.6M and its previous guidance of $180M.
"SoFi (SOFI) remains incredibly well positioned to drive continued strong growth in revenue, members and products, along with continued and improving profitability, despite the fact that our student loan refinancing business has operated at less than 50% of pre-COVID levels for the last two years," CEO Anthony Noto said in a press release.
"Even with the assumption of no end to the moratorium in 2022, our new full year 2022 financial guidance represents approximately 45% year-over-year adjusted net revenue growth to $1.47B, a tripling of Adjusted EBITDA to $100M, and a doubling of margins," he added.
Separately, the company said three directors are stepping down from its board — Clay Wilkes, founder of Galileo Financial Technologies; SoftBank's Michel Combes, and Carlos Medeiros.
Wilkes, who joined the board when SoFi (SOFI) bought Galileo in 2020, will step down immediately, the company said on Wednesday. Combes and Medeiros will be leaving the board at SoFi's 2022 annual meeting of shareholders.
Earlier, White House extends pause on student loan payments until Aug. 31