SoFi Technologies Inc Earnings - Q4 2025 Analysis & Highlights
SoFi Technologies Inc. (SOFI) reports a tremendous 2025 with record financial performance, driven by strong member and product growth, and strategic diversification into capital-light revenue streams. The company highlights its differentiated one-stop shop model, innovation in crypto and AI, and a fortress balance sheet as key drivers for future compounding growth. Management provides an optimistic outlook for 2026 and the medium term, emphasizing continued investment and strategic partnerships to capitalize on massive addressable markets and emerging technologies.
Key Financial Results
Adjusted net revenue was a record $1.013 billion in Q4 2025, up 37% year-over-year, marking the company's first $1 billion quarter.
Adjusted net revenue for the full year 2025 was a record $3.6 billion, up 38% year-over-year.
Adjusted EBITDA was a record $318 million in Q4 2025, up 60% year-over-year.
Adjusted EBITDA for the full year 2025 was a record $1.1 billion, up 58% year-over-year, marking the first time surpassing $1 billion in EBITDA.
Adjusted EBITDA margin for Q4 2025 was 31%, exceeding the original long-term goal of 30%.
Net income in Q4 2025 was $174 million at a margin of 17%.
Net income for the full year 2025 was $481 million at a margin of 13%.
Earnings per share (EPS) was $0.13 in Q4 2025.
Earnings per share (EPS) for the full year 2025 was $0.39.
Total fee-based revenue was a quarterly record at $443 million, up more than 50% from the prior year.
Annualized fee-based revenue is now nearly $1.8 billion, up from less than $1.2 billion in Q4 2024.
Tangible book value ended 2025 at $8.9 billion, growing over $4 billion and $2.54 per share in 2025.
Rule of 40 score was 68% in Q4 2025.
Net interest margin was 5.72% for Q4 2025.
Business Segment Results
Financial Services Segment
Financial Services generated record revenue of over $1.5 billion in 2025, up 88% from the prior year.
Net revenue for Q4 2025 was $457 million, up 78% year-over-year.
Contribution profit was $231 million, up 2x from last year, with a contribution margin of 51%.
Net interest income for this segment was $208 million, up 30% year-over-year, driven by growth in deposits.
Non-interest income grew 2.6x to $249 million for the quarter.
Annualized Financial Services revenue per product was $104 in Q4 2025, up 29% from $81 in Q4 2024.
Loan Platform Business (LPB)
Loan Platform business generated $194 million in adjusted net revenue in Q4 2025, an annualized pace of $775 million, nearly 3x higher than the same period last year.
Total originations reached a record $10.5 billion for Q4 2025, with $3.7 billion originated through the Loan Platform business.
Total originations for 2025 were over $36 billion.
Personal loan originations were a record $7.5 billion, with $3.7 billion originated on behalf of third parties through LPB.
Student loan originations were $1.9 billion, up 38% from the same period last year.
Home loan originations were a record $1.1 billion, a year-over-year increase of nearly 2x.
Capital markets activity was strong, with $4.5 billion of personal and home loans sold and transferred to the Loan Platform business.
$100 million of personal loans were sold in whole loan form at a blended execution of 106.5%.
$90 million of late-stage delinquent personal loans were sold.
$692 million of home loans were sold at a blended execution of 102.3%.
A $463 million securitization of loans originated through the Loan Platform business was executed.
Tech Platform Segment
Tech Platform generated record revenue of over $450 million in 2025.
Net revenue for Q4 2025 was $122 million, up 19% year-over-year.
Contribution profit was $48 million at a contribution margin of 39%.
This includes remaining revenue from a large client who fully transitioned off the platform prior to year-end.
Lending Segment
Lending generated record adjusted net revenue of over $1.8 billion in 2025, up 24% from the prior year.
Adjusted net revenue for Q4 2025 was $486 million, up 15% from the same period last year.
Contribution profit was $272 million with a 54% contribution margin.
Net interest income increased 29% year-over-year to $445 million.
Capital Allocation
$3.2 billion in new capital was raised in 2025, increasing tangible book value by $2 per share to $7 per share.
$1.5 billion of new capital was raised in December 2025 in the form of common equity.
Warehouse lines were fully paid down over the past two quarters, reducing funding costs by an estimated $110 million on an annualized basis.
Total assets grew by $5.4 billion in Q4 2025, driven by $3.1 billion of loan growth and approximately $1.7 billion of growth in cash, cash equivalents, and investment securities.
Total company-wide cash at quarter-end was $5.4 billion.
Total deposits grew by $4.6 billion to $37.5 billion, primarily driven by growth in member deposits.
Regulatory capital ratios are strong, with a total capital ratio of 22.9% at quarter-end, well above the regulatory minimum of 10.5%.
Industry Trends and Dynamics
The company is positioned to benefit from crypto and AI technology super-cycles.
There is a massive addressable market for personal loans, with nearly $1 trillion of prime revolving credit card debt waiting to be refinanced.
The total market opportunity for student loan refinancing is around $400 billion, which would increase by 25% if rates were to drop 50 basis points.
The real estate market is expected to see an acceleration in growth when rates decline.
There is renewed energy around innovation within financial services, with big consumer brands and international companies showing interest in launching new programs and products in the US, particularly for crypto.
Competitive Landscape
SoFi is the preeminent company offering personal loans, originating roughly 15% of total US prime volume.
SoFi has become the preeminent company for refinancing student debt.
The company's Tech Platform gives it a greater ability to customize and launch financial services products faster than the competition.
SoFi is the first nationally chartered bank to launch crypto trading for consumers, allowing instant cryptocurrency purchases from FDIC-insured deposit accounts, a meaningful difference from other providers where funds are uninsured.
SoFi is the first national bank to issue a stablecoin (SoFiUSD) on a public permissionless blockchain, with each SoFiUSD backed by a dollar of cash in its Fed Master account, eliminating credit, liquidity, or duration risk.
Macroeconomic Environment
2026 assumptions include an interest rate outlook consistent with Fed funds futures and two rate cuts to a 3.0% to 3.25% exit rate.
Real GDP growth is expected to be approximately 2.5%.
Unemployment rate is projected to be in the 4.5% to 5% range.
Growth Opportunities and Strategies
Record 1 million new members were added in Q4 2025, increasing total members by 35% year-over-year to 13.7 million.
Record 1.6 million new products were added in Q4 2025, increasing total products by 37% year-over-year to over 20 million.
Cross-buy continues at an exceptional pace, with 40% of new products opened by existing members, an increase of 7 percentage points over the past year.
Brand awareness reached an all-time high of 9.6% in Q4 2025, up 250 basis points from Q4 2024.
Strategic partnerships include music partnerships (CMA Fest, Kelsea Ballerini) and sports partnerships (Josh Allen, TGL, SoFi Stadium for World Cup).
SoFi Pay was launched in October 2025, leveraging blockchain technology for fast, seamless, low-cost, and safe international payments to over 30 countries.
SoFi Crypto was launched in November 2025, allowing members to invest in dozens of tokens directly in the app.
SoFiUSD, the company's own stablecoin, was launched in December 2025, positioning SoFi as an infrastructure provider for banks, fintechs, and enterprise platforms.
Plans for 2026 include leveraging SoFiUSD to power SoFi Pay and expanding to more countries, with a medium-term goal to offer SoFi Pay experience to people outside the US.
Future crypto products and services include secured lending by cryptocurrencies, institutional trading, and correspondent payments and settlement via stablecoins.
Business banking offering will begin to launch in 2026, aiming to be the bank for businesses and financial institutions transacting in both fiat and cryptocurrencies.
The Tech Platform will support institutional crypto trading, stablecoin as a service, crypto card issuing, digital asset custody, and infrastructure services.
SoFi Smart Card was launched in Q4 2025, offering rewards, industry-leading APY, and credit score growth.
SoFi Invest significantly expanded its offering in 2025, including access to private companies (SpaceX, Epic Games), alternative investments, and IPOs (Klarna, Gemini, Figma, StubHub).
Invest is expected to achieve full profitability in 2026.
Personal loan product helps members refinance expensive credit card debt.
Student loans save members over $400 million in interest expense on loans refinanced in 2025.
New private in-school student loan options were launched, including medical, veterinary, dental, and STEM loans.
Home loans originated $3.4 billion in 2025, surpassing the prior record set in 2021.
Home loan originations in Q4 2025 were at an annualized pace of $4.5 billion, nearly 2x the prior year.
Financial Guidance and Outlook
For full year 2026, total members are expected to increase by at least 30% year-over-year.
Adjusted net revenue for full year 2026 is expected to be approximately $4.655 billion, representing year-over-year growth of approximately 30%.
Adjusted EBITDA for full year 2026 is expected to be approximately $1.6 billion, equating to an EBITDA margin of approximately 34%.
Adjusted net income for full year 2026 is expected to be approximately $825 million, equating to a margin of approximately 18%.
Adjusted EPS for full year 2026 is expected to be approximately $0.60 per share.
Q1 2026 adjusted net revenue is expected to be approximately $1.04 billion, a 35% year-over-year increase.
Q1 2026 adjusted EBITDA is expected to be approximately $300 million, equating to a margin of 29%.
Q1 2026 adjusted net income is expected to be approximately $160 million, equating to a margin of 15%.
Q1 2026 adjusted EPS
