SoFi needs restatement ‘much larger’ than $312M, Muddy Waters says

Muddy Waters, which previously disclosed that it is short SoFi Technologies (SOFI), stated in a follow-up report posted to its website: “management appears to have booked a $312 million loan from JPMorgan as if it were a sale-inflating reported profits and their own bonuses while shareholders bear ~15% annual dilution. In our first report, we highlighted unrecorded borrowings of $312 million. SOFI has apparently confirmed that i) the $312 million is not on the balance sheet as debt, and ii) SOFI booked it as a loan sale in Q3 2024. Utah UCC filings contradict this accounting, leading us to believe that SOFI needs to restate this transaction. However, the restatement should be much larger than just this $312 million. We believe that when SOFI restates this borrowing, it will also restate ~$1 billion of previously reported EBITDA; and, its capital ratios will be restated materially lower.” SoFi shares are down 11c, or 1%, to $15.12 following this second short report from Muddy Waters.