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SoFi Technologies, Inc. (SOFI)·Q3 2025 Earnings Summary

Executive Summary

  • Record net revenue of $961.6M, net income of $139.4M, diluted EPS of $0.11, and adjusted EBITDA of $276.9M; fee-based revenue reached a quarterly record at $408.7M, underscoring diversification into capital-light revenue streams .
  • SoFi raised full-year 2025 guidance: adjusted net revenue to ~$3.54B (from $3.375B), adjusted EBITDA to ~$1.035B (from $960M), adjusted net income to ~$455M (from $370M), adjusted EPS to ~$0.37 (from $0.31), and members adds to at least 3.5M (from 3.0M); CFO indicated Q4 adjusted EPS of ~$0.12 with a ~10% tax rate .
  • Loan originations hit a record $9.9B (personal $7.5B; student $1.5B; home $945M), while Loan Platform Business (LPB) originations for third parties reached $3.4B and contributed $167.9M of adjusted revenue, up 29% q/q .
  • Credit performance improved: personal loan annualized charge-offs fell to 2.60% (from 2.83% in Q2), 90-day delinquencies remained stable (personal 43bps; student 14bps), and net interest margin stayed healthy at 5.84% with deposits up $3.4B to $32.9B .
  • Strategic catalysts: launch of AI-driven Cash Coach and crypto/trading and blockchain-enabled remittances (SoFi Pay); post-quarter, SoFi announced SoFi Crypto, becoming the first and only nationally chartered bank to offer consumer crypto trading, a potential engagement and monetization driver .

What Went Well and What Went Wrong

What Went Well

  • Record members (+905k) and products (+1.4M) added; total members reached 12.6M and products 18.6M, with cross-buy at ~40%, driving durable growth in fee-based revenue and segment diversification .
  • LPB scaled strongly: $3.4B originated on behalf of third parties and $167.9M adjusted revenue, with partners upsizing commitments in a “flight to quality,” supporting high-margin growth .
  • Improved credit metrics and stable NIM: personal loan charge-offs down to 2.60%, student charge-offs ~0.69%, NIM 5.84%, deposits grew $3.4B to $32.9B, lowering cost of funds versus warehouse facilities .

What Went Wrong

  • Technology Platform margin compressed and accounts declined: contribution margin fell to 28% (32% prior year), and total enabled accounts decreased 1% y/y to 157.9M, reflecting client mix and migration dynamics .
  • Lending segment GAAP contribution margin declined y/y to 53% (from 60%), as directly attributable expenses rose 44% y/y amid growth and operations scaling .
  • Net interest margin edged down sequentially (5.84% vs. 5.86% in Q2), with modest mix shift impacts and small tax-related benefits noted previously; student loan charge-offs normalized after servicing transition effects in Q2 .

Financial Results

Headline Results vs. Prior Periods and Prior Year

MetricQ3 2024Q2 2025Q3 2025
Net Revenue ($M)$697.1 $854.9 $961.6
Net Income ($M)$60.7 $97.3 $139.4
Diluted EPS ($)$0.05 $0.08 $0.11
Adjusted EBITDA ($M)$186.2 $249.1 $276.9
Adjusted EBITDA Margin (%)27% 29% 29%
Net Income Margin (%)9% 11% 14%

Segment Net Revenue

Segment Net Revenue ($M)Q3 2024Q2 2025Q3 2025
Financial Services$238.3 $362.5 $419.6
Technology Platform$102.5 $109.8 $114.6
Lending (GAAP)$396.2 $443.5 $493.4
Lending (Adjusted)$391.9 $446.8 $481.4

KPIs and Operating Metrics

KPI / MetricQ3 2024Q2 2025Q3 2025
Members (000s)9,373 11,746 12,642
Total Products (000s)13,651 17,142 18,553
Fee-Based Revenue ($M)$272.1 $377.5 $408.7
Total Deposits ($M)—$29,541 $32,946
Net Interest Margin (%)5.57 5.86 5.84
Total Originations ($M)$6,325 $8,761 $9,925
LPB Originations ($M, on behalf of third parties)—$2,400 $3,400
LPB Adjusted Revenue ($M)—$130.6 $167.9
Personal Loan Charge-offs (annualized %)3.52 2.83 2.60
Student Loan Charge-offs (annualized %)0.69 0.94 0.69

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted Net Revenue ($B)FY2025~$3.375 ~$3.54 Raised
Adjusted EBITDA ($B)FY2025~$0.960 ~$1.035 Raised
Adjusted Net Income ($M)FY2025~$370 ~$455 Raised
Adjusted EPS ($)FY2025~$0.31 ~$0.37 Raised
Member Adds (M)FY2025≥3.0 ≥3.5 Raised
Tangible Book Value Growth ($B)FY2025~$0.64 ~$2.5 Raised
Q4 Adjusted EPS ($)Q4 2025—~0.12 (assumes ~10% tax rate) New detail

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
AI initiativesCash Coach unveiled; AI for back-office and member support; brand building and product personalization AI-powered Cash Coach launched; AI support chat integrated across products to boost satisfaction Expanding deployment
Crypto/blockchainAnnounced blockchain remittances and return to crypto investing; Lightspark partnership for UMA; stablecoin roadmap Launched SoFi Pay (blockchain remittances) and announced SoFi Crypto launch later in 2025; stablecoin plans for 2026 From plans to launches
Loan Platform Business (LPB)Built to >$9.5B annualized originations; partners Blue Owl, Fortress, Edge Focus; near-prime expansion LPB originations $3.4B; adjusted revenue $167.9M; partners upsized amid “flight to quality” Accelerating
Credit performanceQ1/Q2 personal NCOs declined; student NCOs normalized after servicing transition Personal NCOs down to 2.60%; student NCOs ~0.69%; 90-day delinquencies stable Improving/stable
Deposits/NIM & betasDeposits grew to $27–29.5B; NIM ~6%; deposit betas ~65–70% Deposits rose to $32.9B; NIM 5.84%; CFO reiterates ~65–70% deposit betas Stable funding advantage
Home lendingHome equity drove ~1/3 of home loan volume; Q2 originations ~$799M Home loan originations $945M; home equity ~$352M; expected to out-revenue student refi in Q4 Growing
Student loansQ2 originations ~$993M; SmartStart refi feature; servicing transition affected Q2 NCOs Q3 originations $1.5B; improved NCOs; refi momentum noted Reaccelerating
Tech platform clientsWyndham co-brand debit; Banco Nación modernization; ~10 new clients contributing in Q1’26 New partnership announced with a major airline (Southwest) for rewards debit; more large consumer brands to follow Broadening client set
Regulatory/macroOCC crypto permissibility; tariffs/macro volatility discussed; no slowdown in capital markets Forward-looking caution; management confident in growth through cycles Confident but vigilant

Management Commentary

  • “We achieved record adjusted net revenue of $950 million and added a record 905,000 new members and 1.4 million new products…accelerating innovation in crypto, blockchain, and AI” — Anthony Noto, CEO .
  • “We now expect adjusted net revenue of approximately $3.54 billion…adjusted EBITDA of approximately $1.035 billion…adjusted EPS of approximately $0.37” — Guidance update .
  • “Our personal loan borrowers have a weighted average income of $157,000 and a weighted average FICO score of 745…annualized charge-off rate declined to 2.6%” — Chris Lapointe, CFO .
  • “We’re launching SoFi Pay…fast, seamless, low-cost international payments…we’ll be launching the ability to buy, sell, and hold crypto assets” — Anthony Noto .
  • Post-quarter: “SoFi Crypto…first and only nationally chartered, FDIC insured bank to offer crypto trading to consumers” — Company press release .

Q&A Highlights

  • Credit health: Management emphasized durable underwriting, improved personal loan charge-offs, and stable delinquencies; expects loss rates below 7–8% tolerance .
  • Rate environment: Lower rates should boost student refi and home lending; deposit betas historically ~65–70%; NIM expected to remain healthy .
  • LPB capacity and partner dynamics: Partners upsizing commitments; momentum expected to continue in Q4; consolidation implies “flight to quality” benefiting SoFi .
  • Competitive landscape: Personal loans fill a gap left by large banks; opportunity to refinance high-interest revolving balances for prime/super-prime borrowers .
  • Guidance specifics: CFO guided Q4 adjusted EPS ~$0.12 with ~10% tax; reiterated raised full-year outlook .

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2025 EPS, revenue, and EBITDA was unavailable via our data feed at the time of this analysis; therefore, explicit beat/miss vs. consensus cannot be determined. Values retrieved from S&P Global would normally anchor estimate comparisons; in their absence, we benchmarked results vs. prior guidance and prior periods .

Key Takeaways for Investors

  • Mix shift toward capital-light revenue: Record fee-based revenue ($408.7M) and LPB growth ($167.9M adjusted revenue) reduce capital intensity and support margin durability through cycles .
  • Credit quality and funding advantage: Improved charge-offs and strong deposit growth ($32.9B) underpin NIM (5.84%) and provide an edge vs. non-bank competitors as rates evolve .
  • Reaccelerating lending engine: Record originations ($9.9B) across personal, student, and home equity; benefits expected in Q4 as home equity out-revenues student refi .
  • Guidance raise is a near-term catalyst: Upward revisions across all major FY metrics (rev/EBITDA/EPS/members/TBV) plus Q4 EPS color (~$0.12) can drive estimate resets and positioning into year-end .
  • Strategic innovation: AI (Cash Coach), SoFi Pay, and SoFi Crypto launch expand engagement and monetization vectors, providing optionality ahead of anticipated AI and blockchain supercycles .
  • Watch Tech Platform trajectory: Accounts down slightly and margin compression; however, pipeline includes large consumer brands (e.g., Southwest rewards debit) and ~10 new clients contributing in Q1’26 .
  • Capital strength post-offering: July equity raise (~$1.5B) bolstered tangible book value ($7.2B) and reduced higher-cost debt, enhancing balance sheet flexibility for growth .