SoFi Technologies Inc Earnings - Q3 2025 Analysis & Highlights
SoFi Technologies Inc's Q3 2025 earnings call highlighted record revenue, member growth, and product additions, driven by their one-stop shop strategy and investments in AI and blockchain. The company raised its full-year guidance, reflecting confidence in durable growth and profitability. Discussions covered the competitive landscape, macroeconomic factors, and strategic initiatives, including new products and partnerships.
Key Financial Results
Adjusted net revenue was a record $950 million, up 38% year-over-year.
Adjusted EBITDA was a record $277 million, up nearly 50% year-over-year, with a 29% margin.
Net income for the quarter was $139 million, a 14% margin, with earnings per share at $0.11.
Fee-based revenue reached a quarterly record of $409 million, up 50% from the prior year.
Tangible book value ended the quarter at $7.2 billion.
Business Segment Results
Financial Services and Technology Platform segments generated revenue of $534 million, up 57% year-over-year, representing 56% of total revenue.
Lending segment adjusted net revenue grew 23% year-over-year to $481 million.
Loan Platform Business (LPB) originated $3.4 billion of loans.
Financial Services revenue per product surpassed $100, reaching a record $104 in the third quarter, up over 28% year-over-year.
Capital Allocation
Raised $1.7 billion of new capital through common equity.
Reduced higher cost debt by $1.2 billion.
Industry Trends and Dynamics
Benefiting from technology super cycles in AI and blockchain.
Experiencing a flight to quality in the Loan Platform Business as concerns emerge in private credit markets.
Expects to benefit from the sector transition from traditional finance to fintech.
Competitive Landscape
Unaided brand awareness reached an all-time high of 9.1%.
Focuses on providing the best speed, selection, and experience.
Differentiates through a unique bank license, technology capabilities, and a portfolio of products.
Believes its personal loan product will gain market share due to competitors' focus on credit card ROE.
Macroeconomic Environment
Monitors factors like credit quality, heightened inflation, and asset flows.
Anticipates benefiting from lower interest rates, particularly in student loan refinancing and the home loan market.
Growth Opportunities and Strategies
Adding a record 905,000 new members in Q3, a 35% year-over-year increase, totaling 12.6 million members.
Added a record 1.4 million new products, a 36% year-over-year increase, totaling over 18.6 million products.
Cross-buy reached its highest level since 2022, with 40% of new products opened by existing members.
Launched SoFi Pay, a payment product leveraging blockchain for international payments.
Relaunching the ability to buy, sell, and hold crypto assets.
Launching the SoFi Smart Card with features to help members spend, save, and pay better.
Announced a new partnership with Southwest Airlines to power their Rapid Rewards debit card.
Expanding the Loan Platform Business beyond personal loans.
Plans to launch SoFi USD stablecoin in 2026.
Financial Guidance and Outlook
Expects to add approximately 3.5 million members for the full year 2025, representing approximately 34% year-over-year growth.
Expects adjusted net revenue of approximately $3.54 billion for 2025, a year-over-year growth of approximately 36%.
Expects adjusted EBITDA of approximately $1.035 billion for 2025, a 29% margin.
Expects adjusted net income of approximately $455 million and adjusted EPS of approximately $0.37 for 2025.
Expects growth in tangible book value of approximately $2.5 billion for the year.
