Muddy Waters is short SOFI. On March 17, the firm published a 28-page report concluding that SOFI's 2025 Adjusted EBITDA is inflated by approximately 90%. SOFI's response was a press release that did not address a single factual claim. CEO Noto purchased $500,000 of stock — roughly 0.86% of the $58.3 million he and CFO Lapointe have already extracted through prepaid variable forward contracts. Five days later, SOFI has still not engaged with any specific allegation in the report.
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The Core Allegation
Muddy Waters published a 28-page report on March 17, 2026, concluding that SOFI's 2025 Adjusted EBITDA is inflated by approximately 90%.
SOFI's Non-Response
SOFI's response to the report was a press release that did not address a single factual claim. Five days later, SOFI had still not engaged with any specific allegation.
This is not the first time SOFI has ignored a chance to correct the factual record:
- Two weeks before publication, SOFI had an opportunity to address the issues raised
- SOFI refused and instead sent a threatening reply to the questions
Executive Extraction
CEO Noto purchased $500,000 of stock as an apparent show of confidence. However, this represents roughly 0.86% of the $58.3 million he and CFO Lapointe have already extracted through prepaid variable forward contracts.
This is a classic pattern: management cashes out substantial sums while making token stock purchases to project confidence to the market.
The 11 Questions
The report poses 11 questions to SOFI that the company has refused to answer, suggesting the factual record cannot be corrected without admitting to the EBITDA overstatement.
subsequent events
- 2026-03-17Muddy Waters publishes 28-page report on SOFI
“SOFI's 2025 Adjusted EBITDA is inflated by approximately 90%”
- 2026-03-17SOFI issues press release
“Did not address a single factual claim”
- 2026-03-17CEO Noto purchases $500,000 of stock
“Roughly 0.86% of the $58.3 million he and CFO Lapointe have already extracted through prepaid variable forward contracts”
- 2026-03-21Muddy Waters publishes 11 Questions follow-up
“Five days later, SOFI has still not engaged with any specific allegation in our report.”
Source — https://muddywatersresearch.com/research/2026/sofi-11-questions/
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