SoFi Technologies Inc Earnings - Q1 2026 Analysis & Highlights
SoFi Technologies reported exceptional Q1 2026 results with accelerating revenue growth, record member and product additions, strong profitability, and significant expansion into crypto and business banking, while maintaining disciplined capital management and providing full-year guidance reflecting continued momentum across all business segments.
Key Financial Results
Adjusted net revenue reached $1.1 billion, up 41% year-over-year, representing an acceleration from the prior quarter's growth rate.
Cash revenue totaled $1.1 billion in Q1, consisting of approximately $690 million from net interest income and approximately $390 million from interchange fees, brokerage fees, technology and loan platform fees and loan origination fees.
Adjusted EBITDA was $340 million, up 62% year-over-year with a margin of 31%.
Net income was $167 million at a margin of 15%, up 2.3x year-over-year.
Earnings per share were $0.12, or $0.13 on a constant stock price basis quarter-over-quarter.
Tangible book value per share reached $7.21, up 57% year-over-year from $4.58 per share.
Record member additions of 1.1 million new members in Q1, increasing total members by 35% year-over-year to 14.7 million.
Record product additions of 1.8 million new products, increasing total products by 39% year-over-year to 22.2 million.
Rule of 40 score of 72% reflecting 41% revenue growth and 31% EBITDA margins, marking the 18th consecutive quarter of exceeding the Rule of 40.
Business Segment Results
Financial Services segment net revenue was $429 million, up 41% year-over-year with contribution profit of $196 million and contribution margin of 46%.
Net interest income in Financial Services was $228 million, up 31% year-over-year, primarily driven by growth in member deposits.
Non-interest income grew 55% to $201 million, with interchange revenue up 54% year-over-year driven by nearly $25 billion in total annualized spend across money and credit card.
Record brokerage fee revenue more than doubled over the past year.
Lending segment adjusted net revenue was $629 million, up 53% from the same period last year with contribution profit of $382 million and contribution margin of 61%.
Net interest income in Lending increased 39% year-over-year to $500 million.
Loan origination fees were up 36% year-over-year, and home loan sales were up more than 2x year-over-year.
Tech Platform segment delivered net revenue of $75 million, negatively impacted by the loss of a previously discussed large customer, with contribution profit of $12 million at a contribution margin of 16%.
Record personal loan originations of $8.3 billion, with $5.4 billion channeled through balance sheet and approximately $3 billion through Loan Platform Business.
Record student loan originations of $2.6 billion, up 2.2x year-over-year.
Record home loan originations of $1.2 billion, up 2.4x from the prior year.
Total loan originations reached $12.2 billion, up nearly $1.7 billion from the prior quarter, with $9.2 billion for Lending segment and $3 billion for Loan Platform Business.
Capital Allocation
Tangible book value grew $4.2 billion year-over-year to $9.2 billion, including benefits from new capital raised in 2025 and organic growth in earnings.
Total capital ratio of 21% at quarter-end, well above the regulatory minimum of 10.5%.
Total assets grew by $3 billion in Q1, driven by $4.1 billion of loan growth, partially offset by a reduction in cash, cash equivalents and investment securities of $940 million.
Total deposits grew by $2.7 billion to $40.2 billion, primarily driven by growth in member deposits.
Total companywide cash at quarter-end was $3.8 billion.
$3.8 billion of personal and home loans sold or transferred through Loan Platform Business.
$765 million of home loans closed at a blended execution of 102.1%.
$89 million of late-stage delinquent personal loans sold in line with prior quarters.
$919 million securitization of loans originated on behalf of partners through Loan Platform Business, priced at 86 basis points weighted average spread, the company's best execution to date.
Industry Trends and Dynamics
Strong demand from members across all lending products, with record originations in personal, student, and home loans.
Robust demand from Loan Platform Business capital partners, with partners buying at contractual levels and above in several quarters.
Three new Loan Platform Business partnerships announced totaling approximately $3.6 billion of commitments over the next two years from a leading global bank, prominent insurance group, and top five global private asset management firm.
Flight to quality situation in capital markets, with partners pleased with execution on loans and securitizations.
Crypto super cycle underway that will transform financial services and enable frictionless money movement.
Strong member engagement with sports marketing, including TGL presented by SoFi and NBA playoffs with SoFi play-in tournament bringing in nearly 20% more viewers than last year.
Competitive Landscape
Ranked number one in JD Power 2026 US Investor Satisfaction Study for do-it-yourself investing.
Named number one US Bank by Forbes in their World's Best Banks ranking, beating institutions that have been around for decades.
Unaided brand awareness rose to an all-time high of 10%, up 300 basis points from a year ago.
SoFi positioned as the Everything financial app with the most comprehensive set of digital financial tools and resources.
Cross-buy acceleration with 43% of new products opened by existing SoFi members versus 40% last quarter and 36% in Q1 of 2025.
Personal loan business taking share from competition by helping members refinance expensive credit card debt.
Macroeconomic Environment
Interest rate outlook consistent with Fed Fund Futures with no rate cuts expected in 2026.
Net interest margin of 5.94% for the quarter, up 22 basis points sequentially, with 25 basis point decrease in cost of funds partially offset by 2 basis point decrease in average asset yields.
Expectation of healthy net interest margin above 5% for the foreseeable future.
Strong credit performance with early warning dashboard monitoring macro and microeconomic factors, with no yellow or red flags currently.
Macro continuing to perform well with strong trends in own loans and strong demand from Loan Platform Business buyers.
Growth Opportunities and Strategies
SoFiUSD stablecoin launched in December 2026, making SoFi the first national bank to launch its own stablecoin on a public, permissionless blockchain.
Partnership with Mastercard to enable SoFiUSD settlement across their global payments network, creating interoperability between digital assets and fiat currencies.
Big Business Banking offering officially launched, allowing companies operating in fiat and crypto to hold funds in regulated business deposit accounts, move money and crypto in real-time, and convert fiat and crypto instantly.
SoFi Plus premium membership relaunched on April 1 with significantly enhanced benefits including 4.5% APY on deposits for up to $20,000, 1% match on deposits into taxable SoFi Invest accounts, 1% match on crypto purchases, and unlimited financial planning sessions for $10 per month.
Strong initial results from SoFi Plus relaunch with strong growth in new paying subscribers, majority of whom are existing members who subsequently take out additional products.
SoFi Technology Solutions brand launch reflecting comprehensive set of products and services across four platform businesses: Processing, Banking Core Ledgers & Services, Payment Hub, and Risk & Fraud.
13 new clients generating revenue in Q1 2026 that were not generating revenue a year ago, including successful implementations with fintechs and major consumer brands.
New core platform implementation with SoFi Bank launching this summer, serving as launching point to bring banking stack to other institutions.
Personal Loan Doc Coach using AI to validate members' pay stubs and documents, streamlining application experience and driving cost savings.
New credit model features testing leveraging enhanced data pools to potentially extend credit to more members.
New equity line of credit experience announced, allowing members to access home equity through seamless end-to-end experience on SoFi platform.
Future Wealth Summit launched, a national campus tour designed to help college students navigate key financial decisions and plan for life after graduation.
Expanded talent partnerships adding Justin Thomas and Charley Hull to team SoFi.
Crypto buy, sell, and hold launched with plans to continue aggressive marketing as product scalability confirmed.
Credit Quality and Risk Management
Personal loan borrowers have weighted average income of $154,000 and weighted average FICO score of 745.
Student loan borrowers have weighted average income of $161,000 with weighted average FICO score of 767.
Estimated all-in net charge-off rate for personal loans flat quarter-over-quarter and down from a year ago.
Excluding delinquent loan sales, estimated all-in annualized net charge-off rate was 4.4%, same as last quarter and down roughly 40 basis points from Q1 2025.
Including impact from delinquent loan sales, net charge-off rate was 3.03%, up 23 basis points from Q4 but down 28 basis points from Q1 2025.
On-balance sheet 90-day delinquency rate was 47 basis points, down 5 basis points from last quarter.
Student loan annualized charge-off rate was 65 basis points, down 11 basis points from prior quarter.
Student loan on-balance sheet 90-day delinquency rate was 10 basis points, down 4 basis points from prior quarter.
Recent vintages from Q4 2022 to Q2 2025 have net cumulative losses of 4.64% with 36% unpaid principal balance remaining, well below 6.32% observed for 2017 vintage.
Gap between newer cohort curve and 2017 cohort curve widened by 9 basis points during the quarter, with gap widening each of last seven quarters.
Q1 2020 through Q4 2025 originations show 61% of principal already paid down with 6.8% in net cumulative losses.
Financial Guidance and Outlook
Q2 2026 adjusted net revenue expected to grow approximately 30% from Q2 2025, equating to roughly $1.115 billion.
Q2 2026 adjusted EBITDA margin expected at approximately 30%, equating to roughly $330 million.
Q2 2026 adjusted net income margin expected at approximately 12% to 13%, equating to roughly $0.10 to $0.11 of EPS.
Full year 2026 guidance remains unchanged with expectation of continued revenue growth and strong growth in EBITDA, net income and EPS.
Lending adjusted net revenue growth expected at least 30% for full year 2026.
Tech Platform net revenue expected at approximately $325 million for full year 2026.
Financial Services adjusted net revenue growth expected at least 40% for full year 2026.
Corporate revenue expected in line with 2025 performance.
Seasonal payroll taxes during first two quarters and accelerated marketing expenses in first half of 2026 reflected in Q2 guidance.
Tech Platform business expected to return to 20% to 25% compounding growth over coming years.
Personal loan fair value mark at 105.4%, down 27 basis points from prior quarter, driven by increase in discount rate partially offset by modest decrease in prepayment rate.
Student loan fair value mark at 105.2%, down 40 basis points from prior quarter, driven by increase in discount rate partially offset by modest decrease in prepayment rate.
