SoFi Technologies Inc (NASDAQ:SOFI) shares are trading lower during Thursday’s premarket session. The digital lender faces a combination of heavy short-seller allegations and broader market weakness.
The decline follows a turbulent week for the fintech firm. Broad market indices are also under pressure. Nasdaq futures fell 0.71% Thursday morning. S&P 500 futures shed 0.59% in tandem.
Muddy Waters Alleges’ Financial Engineering’
The primary catalyst remains a report released on Tuesday from Muddy Waters Research. Led by Carson Block, the firm labeled SoFi a “financial engineering treadmill.”
The report alleged that SoFi’s 2025 adjusted EBITDA was inflated by 90%. Muddy Waters suggested the true figure was $103 million. This contradicts the reported $1.05 billion. Block also questioned “Enron-esque” off-balance-sheet structures.
SoFi Management Fires Back
SoFi characterized …
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