Chronological feed of everything captured from Muddy Waters.
Muddy Waters claims SOFI improperly accounted for a $312 million loan from JPMorgan as a sale, rather than debt, in Q3 2024. This alleged misrepresentation could have artificially inflated SOFI's reported profits and EBITDA, while understating capital ratios. Muddy Waters suggests the required restatement might be significantly larger than the initial $312 million.
Muddy Waters Research, a 'for-profit' journalistic organization, alleges that SOFI's 2025 Adjusted EBITDA is inflated by approximately 90%. Despite publishing a 28-page report detailing these claims, SOFI has reportedly not addressed any specific factual allegations. Muddy Waters finances its research by taking short positions in the securities of companies it reports on, managing its risk by closing substantial portions of these positions after publication.
Muddy Waters Research claims SOFI is not a genuinely growing origination business but rather uses financial engineering tactics to obscure its true financial health. These tactics allegedly include GE Capital-style loan marks, Enron-esque off-balance-sheet structures, and disguised borrowings as revenue. The company is accused of materially misstating its debt, with an estimated unrecorded amount of at least $312 million, and having a significantly higher personal loan charge-off rate than reported.
Muddy Waters Research alleges that AppLovin (APP) and its leadership, CEO Foroughi and CTO Shikin, have made demonstrably false and misleading statements regarding their use of persistent identifiers. According to Muddy Waters, AppLovin continues to employ these identifiers, violating user privacy and partner platform terms of service, despite public denials from the company's executives. Muddy Waters, a “for profit” journalistic organization, finances its research through short positions in the securities of companies it reports on.
Muddy Waters Research is short FTAI Aviation Ltd. due to concerns about misleading financial reporting. The research firm alleges that FTAI is misrepresenting one-time engine sales as Maintenance, Repair & Overhaul (MRO) revenue within its Aerospace Products segment. This practice, according to Muddy Waters, artificially inflates reported revenue and adjusted EBITDA, primarily through asset sales rather than genuine MRO activities, ultimately aiming to achieve a higher valuation than a typical leasing business.