SoFi Reports First Quarter 2025 with Record Net Revenue of $772 Million, Record Member and Product Growth, Net Income of $71 Million
Adjusted Net Revenue up 33% year-over-year to a record $771 million
Adjusted EBITDA up 46% to a record $210 million
Fee-based Revenue up 67% to a record $315 million
Member growth up 34% to a record 10.9 million members
Product growth up 35% to a record 15.9 million products
Management Raises 2025 Guidance
SAN FRANCISCO--(BUSINESS WIRE)--April 29, 2025--
SoFi Technologies, Inc. $(SOFI)$, a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, reported financial results today for its first quarter ended March 31, 2025.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250429676374/en/
Note: For additional information on our company metrics, including the definitions of "Members", "Total Products" and "Technology Platform Total Accounts", see Table 6 in the "Financial Tables" herein. Beginning in the first quarter of 2024, new member and new product addition metrics for the relevant period reflect actual growth or declines in members and products that occurred in that period whereas the total number of members and products reflects not only the growth or decline of each metric in the current period but also additions or deletions due to prior period factors, if any. (1) The company includes SoFi accounts on the Galileo platform-as-a-service in its total Technology Platform accounts metric to better align with the presentation of Technology Platform segment revenue.
"We are off to a tremendous start in 2025. In Q1, we delivered durable growth and strong returns driven by our relentless focus on product innovation and brand building," said Anthony Noto, CEO of SoFi. "We delivered our highest revenue growth rate in five quarters, driven by new records in members, products, and fee-based revenue. These results demonstrate the strength of SoFi's unique strategy, combination of businesses, and product architecture, which give us a sustainable competitive advantage with the highest lifetime value per member. This allows us to innovate unmatched products and services that help members spend less than they make and invest the rest so they can get their money right and realize their ambitions. With strong momentum in the first quarter, we are both accelerating our rate of innovation and increasing our financial guidance for 2025."
Consolidated Results Summary
Three Months Ended March 31,
-------------------------------- -----
($ in thousands,
except per share
amounts) 2025 2024 % Change
------------- ------------ ----------
Consolidated --
GAAP
Total net revenue $ 771,759 $ 644,995 20%
Net income 71,116 88,043 (19)%
Net income
attributable to
common stockholders
-- diluted 71,455 22,523 217%
Earnings per share
attributable to
common stockholders
-- diluted $ 0.06 $ 0.02 200%
Consolidated --
Non-GAAP(1)
Adjusted net revenue $ 770,720 $ 580,648 33%
Adjusted EBITDA 210,337 144,385 46%
Adjusted net income 71,116 88,043 (19)%
Adjusted net income
attributable to
common stockholders
-- diluted 71,455 22,523 217%
Adjusted earnings
per share --
diluted $ 0.06 $ 0.02 200%
(1) For more information and reconciliations of these non-GAAP measures to
the most comparable GAAP measures, see "Non-GAAP Financial Measures"
and Table 2 to the "Financial Tables" herein.
Product Highlights
-- Set new records in members and products. A record 800,000 new members
joined SoFi in the quarter, up 34% to 10.9 million. The company recorded
1.2 million new products, up 35% from the prior year to 15.9 million
products.
-- Doubled revenue in Financial Services through rapid innovation. SoFi's
fastest growing segment reached $303 million in revenue, driven by strong
adoption of SoFi Money, rapid expansion of the Loan Platform Business,
and innovations in SoFi Invest including improved user experience and an
expanded partnership with Templum, unlocking access to a broader range of
investment opportunities.
-- Expanded the Loan Platform Business with over $8 billion in new
commitments. With strong demand for SoFi's personal loans, the company
has finalized deals with Blue Owl, Fortress, and Edge Focus so far in
2025, and originated $1.6 billion in loans on behalf of third parties in
Q1 alone.
-- Accelerated loan originations and continued to expand products. Including
the Loan Platform Business, SoFi originated a record $7.2 billion in
loans in the quarter. With stronger technology and fulfillment
capabilities and a new home equity offering launched within the past year,
SoFi grew home loan originations by 54% from the first quarter of 2024. A
planned personal loan product for prime credit card customers with
revolving balances and a new SmartStart student loan refinancing product
will give members more ways to get their money right.
-- Further improved credit performance. SoFi's annualized charge-off rate
decreased from 3.37% to 3.31% for personal loans and from 62 basis points
to 47 basis points for student loans compared to the fourth quarter of
2024. The on-balance sheet 90-day delinquency rate for personal loans
decreased for the fourth consecutive quarter.
-- Strengthened brand awareness to attract more members to SoFi's ecosystem.
With continued investment to build SoFi into a trusted household name,
strong unaided brand awareness continued through the quarter at 7%. The
company completed the inaugural season of TGL presented by SoFi, a new
tech-driven stadium golf league that attracted over 20 million total
viewers, and announced a new partnership with the Country Music
Association's CMA Fest.
-- Launched new, fee-based subscription option for SoFi Plus. Nearly 90% of
new SoFi Plus subscribers were existing members, demonstrating the value
of making this product more accessible. Of these members, nearly 30%
adopt an additional product within 30 days of enrollment. Among SoFi Plus
subscribers who are completely new to SoFi, over 75% adopt at least a
second product, and over 40% adopt a third product within 30 days of
enrollment.
Consolidated Results
SoFi reported a number of key financial achievements. For the first quarter of 2025, GAAP net revenue of $771.8 million increased 20% relative to the prior-year period's $645.0 million. Record adjusted net revenue of $770.7 million grew 33% from the corresponding prior-year period of $580.6 million.
For the first quarter of 2025, total fee-based revenue reached a record of $315.4 million, a year-over-year increase of 67%. This was driven by strong performance from our Loan Platform Business, as well as origination fee revenue, referral fee revenue, interchange fee revenue and brokerage fee revenue. Together, the Financial Services and Technology Platform segments generated $406.5 million of net revenue, an increase of 66% from the prior year period.
SoFi reported its sixth consecutive quarter of GAAP profitability. For the first quarter of 2025, GAAP net income reached $71.1 million and diluted earnings per share reached $0.06.
First quarter record adjusted EBITDA of $210.3 million increased 46% from the prior year period's $144.4 million. This represents an adjusted EBITDA margin of 27%. All three segments delivered strong contribution profit, at attractive margins.
Equity grew by $153.4 million during the quarter, ending at $6.7 billion and $6.05 of book value per share. Tangible book value grew by $167.1 million during the quarter, ending the period at $5.1 billion. Tangible book value per share was $4.58 at quarter-end, up from $3.90 per share in the prior year period.
Net interest income of $498.7 million for the first quarter was up 24% year-over-year. This was driven by a 23% increase in average interest-earning assets and a 82 basis points decrease in cost of funds, partially offset by a 55 basis points decrease in average asset yields year-over-year.
For the first quarter, net interest margin of 6.01% increased 10 basis points sequentially from 5.91%, primarily due to lower cost of funds. The average rate on deposits was 189 basis points lower than that of warehouse facilities, which translates to approximately $515 million of annual interest expense savings.
Member and Product Growth
Continued growth in both total members and products in the first quarter is the result of our continued investments in innovation and brand building and reflects the benefits of our broad product suite and unique Financial Services Productivity Loop (FSPL) strategy.
Added a record 800,000 members in the first quarter of 2025, bringing total members over 10.9 million, up 34% from 8.1 million at the same prior year period.
Record product additions of 1.2 million in the first quarter of 2025, bringing total products to over 15.9 million, up 35% from 11.8 million at the same prior year period.
Financial Services products increased by 36% year-over-year to 13.8 million, primarily driven by continued demand for our SoFi Money, Relay and Invest products, and drove 90% of our total product growth. SoFi Money and SoFi Relay grew to 5.5 million and 5.1 million products, respectively, both representing 41% year-over-year growth. One third of Relay-first members that adopt a second product go on to adopt at least one more product.
Lending products increased by 25% year-over-year to 2.1 million products, driven primarily by continued demand for personal, student and home loan products.
Technology Platform enabled accounts increased by 5% year-over-year to 158 million.
Financial Services Segment Results
For the first quarter of 2025, Financial Services segment net revenue of $303.1 million more than doubled from the prior year period. Net interest income of $173.2 million increased 45% year-over-year, primarily driven by growth in consumer deposits. Noninterest income of $129.9 million more than quadrupled year-over-year, and now represents nearly $520 million in annualized revenue.
In the first quarter, SoFi's Loan Platform Business added $96.1 million to our consolidated adjusted net revenue. Of this $92.8 million was driven by $1.6 billion of personal loans originated on behalf of third parties as well as referrals to third parties. Additionally, our Loan Platform Business generated $3.3 million in servicing cash flow which is recorded in our Lending segment.
In addition to our Loan Platform Business, SoFi continued to see healthy growth in interchange fee revenue in the first quarter, up 90% year-over-year, respectively, as a result of nearly $16 billion in total annualized spend in the quarter across Money and Credit Card.
Contribution profit for the first quarter of 2025 reached $148.3 million, a $111.2 million improvement from the prior year period, while contribution margin grew 24 percentage points year-over-year to 49%. This is a reflection of the strong operating leverage generated in the segment, with directly attributable expenses increasing only 40%.
Financial Services -- Segment Results of Operations
Three Months Ended March 31,
------------------------------------
($ in thousands) 2025 2024 % Change
----------- ---------- ----------
Net interest income $ 173,199 $ 119,713 45%
Noninterest income 129,920 30,838 321%
----------- ----------
Total net revenue --
Financial Services 303,119 150,551 101%
----------- ----------
Provision for credit
losses (5,639) (7,165) (21)%
Directly
attributable
expenses (149,148) (106,212) 40%
----------- ----------
Contribution
profit --
Financial
Services $ 148,332 $ 37,174 299%
=========== ==========
Contribution margin
-- Financial
Services(1) 49% 25%
(1) Contribution margin is defined for each of our reportable segments as
contribution profit divided by net revenue.
By continuously innovating with new and relevant offerings, features and rewards for members, SoFi grew total Financial Services products by 3.7 million, or 36%, year-over-year, bringing the total to 13.8 million at quarter-end. SoFi Money reached 5.5 million products, Relay reached 5.1 million products and SoFi Invest reached 2.7 million products by the end of the first quarter.
Monetization continues to improve with annualized revenue per product of $88 during the first quarter, up 48% year-over-year.
In the first quarter of 2025, total deposits grew to $27.3 billion, with over 90% of SoFi Money deposits (inclusive of Checking and Savings and cash management accounts) coming from direct deposit members.
Financial Services -- Products March 31,
----------------------
2025 2024 % Change
---------- ---------- ----------
Money(1) 5,477,472 3,880,021 41%
Invest 2,684,658 2,224,705 21%
Credit Card 306,106 254,617 20%
Referred loans(2) 102,986 59,555 73%
Relay 5,094,484 3,613,686 41%
At Work 119,886 92,389 30%
---------- ----------
Total financial services
products 13,785,592 10,124,973 36%
========== ==========
(1) Includes checking and savings accounts held at SoFi Bank, and cash
management accounts.
(2) Limited to loans wherein we provide third party fulfillment services as
part of our Loan Platform Business.
Technology Platform Segment Results
Technology Platform segment net revenue of $103.4 million for the first quarter of 2025 increased 10% year-over-year. Contribution profit of $30.9 million reflected contribution margin of 30%.
SoFi continues to diversify its Technology Platform client base beyond financial services companies. During the quarter, SoFi launched a first-of-its-kind co-branded debit card program with Wyndham Hotels & Resorts. The investment made in building this new capability will help the business win additional consumer-brand clients. SoFi also recently signed a deal with Mercantil Banco, which offers personal and business banking services in Panama and will use our Cyberbank Digital banking platform.
Technology Platform -- Segment Results of Operations
Three Months Ended March 31,
--------------------------------------
($ in thousands) 2025 2024 % Change
---------- --- --------- ----------
Net interest income $ 413 $ 501 (18)%
Noninterest income 103,014 93,865 10%
---------- --- ---------
Total net revenue --
Technology
Platform 103,427 94,366 10%
---------- --- ---------
Directly
attributable
expenses (72,514) (63,624) 14%
---------- ---------
Contribution
profit $ 30,913 $ 30,742 1%
========== === =========
Contribution margin
-- Technology
Platform(1) 30% 33%
(1) Contribution margin is defined for each of our reportable segments as
contribution profit divided by net revenue.
Technology Platform total enabled client accounts increased 5% year-over-year, to 158.4 million up from 151.0 million in the prior-year period.
Technology Platform March 31,
------------------------
2025 2024 % Change
----------- ----------- ----------
Total accounts 158,432,347 151,049,375 5%
Lending Segment Results
For the first quarter of 2025, Lending segment GAAP net revenue of $413.4 million increased 25% from the prior year period, while adjusted net revenue for the segment of $412.3 million increased 27% from the prior year period.
Lending segment performance in the first quarter was driven by net interest income, which rose 35% year-over-year, primarily driven by growth in average loan balances of 22%.
Lending segment first quarter contribution profit of $238.9 million was up 15% from $207.7 million in the corresponding prior-year period. Lending segment adjusted contribution margin was strong at 58%. This strong margin reflects our ability to capitalize on continued strong demand for our lending products.
Lending -- Segment Results of Operations
Three Months Ended March 31,
------------------------------------
($ in thousands) 2025 2024 % Change
----------- ---------- ----------
Net interest income $ 360,621 $ 266,536 35%
Noninterest income 52,752 63,940 (17)%
----------- ----------
Total net revenue
-- Lending 413,373 330,476 25%
----------- ----------
Servicing rights --
change in valuation
inputs or
assumptions (1,074) (5,226) (79)%
Residual interests
classified as debt
-- change in
valuation inputs or
assumptions 35 73 (52)%
Directly
attributable
expenses (173,399) (117,604) 47%
----------- ----------
Contribution
profit --
Lending $ 238,935 $ 207,719 15%
=========== ==========
Contribution margin
-- Lending(1) 58% 63%
Adjusted net revenue
-- Lending
(non-GAAP)(2) $ 412,334 $ 325,323 27%
Adjusted
contribution margin
-- Lending
(non-GAAP)(2) 58% 64%
(1) Contribution margin is defined for each of our reportable segments as
contribution profit divided by net revenue.
(2) For more information and a reconciliation of these non-GAAP financial
measures to the most comparable GAAP measure, see "Non-GAAP Financial
Measures" and Table 2 to the "Financial Tables" herein.
Lending -- Loans At Fair Value
Personal Student Home
($ in thousands) Loans Loans Loans Total
----------- ---------- -------- -------------
March 31, 2025
-----------------
Unpaid principal $16,825,564 $9,053,359 $344,246 $26,223,169
Accumulated
interest 126,203 49,501 1,069 176,773
Cumulative fair
value
adjustments(1) 917,463 468,597 11,518 1,397,578
---------- --------- ------- ----------
Total fair
value of
loans(2)(3) $17,869,230 $9,571,457 $356,833 $27,797,520
========== ========= ======= ==========
December 31, 2024
-----------------
Unpaid principal $16,589,623 $8,215,629 $149,862 $24,955,114
Accumulated
interest 128,733 44,603 260 173,596
Cumulative fair
value
adjustments(1) 814,040 337,136 2,374 1,153,550
---------- --------- ------- ----------
Total fair
value of
loans(2)(3) $17,532,396 $8,597,368 $152,496 $26,282,260
========== ========= ======= ==========
(1) During the three months ended March 31, 2025, the cumulative fair value
adjustments for personal loans were impacted by a higher unpaid
principal balance, a lower weighted average discount rate and a lower
weighted average annual default rate partially offset by a higher
weighted average conditional prepayment rate and a lower weighted
average coupon. The lower discount rate was driven by a 34 basis points
decrease in benchmark rates and 8 basis points of spread tightening.
The cumulative fair value adjustments for student loans were impacted
by a higher unpaid principal balance, a lower weighted average discount
rate, a higher weighted average coupon, a lower weighted average annual
default rate and a lower weighted average conditional prepayment rate.
The lower discount rate was driven by a 38 basis points decrease in
benchmark rates partially offset by 20 basis points of spreads
widening.
(2) Each component of the fair value of loans is impacted by charge-offs
during the period. Our fair value assumption for annual default rate
incorporates fair value markdowns on loans beginning when they are 10
days or more delinquent, with additional markdowns at 30, 60 and 90
days past due.
(3) Student loans are classified as loans held for investment, and personal
loans and home loans are classified as loans held for sale.
The following table summarizes the significant inputs to the fair value model for personal and student loans:
Personal Loans Student Loans
-------------------------- --------------------------
March 31, December 31, March 31, December 31,
2025 2024 2025 2024
----------- ------------- ----------- -------------
Weighted
average
coupon
rate(1) 13.30% 13.44% 6.01% 5.91%
Weighted
average
annual
default rate 4.37% 4.55% 0.67% 0.73%
Weighted
average
conditional
prepayment
rate 26.53% 26.01% 10.93% 10.95%
Weighted
average
discount
rate 4.87% 5.29% 4.22% 4.40%
Benchmark
rate(2) 3.74% 4.08% 3.66% 4.04%
(1) Represents the average coupon rate on loans held on balance sheet,
weighted by unpaid principal balance outstanding at the balance sheet
date.
(2) Corresponds with two-year SOFR for personal loans, and four-year SOFR
for student loans.
For the first quarter of 2025, record origination volume of $7.2 billion increased 66% year-over-year. This was a result of continued strong member demand for personal loans, student loans and home loans as well as strong demand from capital markets partners.
Personal loan record originations of $5.5 billion in the first quarter of 2025 were up 69% year-over-year, inclusive of $1.6 billion originated on behalf of third parties for our Loan Platform Business. First quarter student loan volume of $1.2 billion was up 59% year-over-year. Home equity loan originations were a record during the first quarter, accounting for more than one-third of total home loan volume. In total, home loan volume was $518 million, an increase of 54% year-over-year.
Capital markets activity in the first quarter of 2025 was very strong. Overall, SoFi sold, or transferred through our Loan Platform Business, more than $3.1 billion in total of personal loans and home loans. In terms of personal loans, we closed $1.1 billion of sales in whole loan form at a blended execution of 106.2%. In terms of home loan sales, we closed $322 million at a blended execution of 102.1%.
In addition to our personal and home loan sales, SoFi executed a $698 million co-contributor securitization of loans previously originated through our Loan Platform Business. This was the first securitization of new collateral in our SoFi Consumer Loan Program $(SCLP.UK)$ since 2021 and the first using collateral originated in the Loan Platform Business. Importantly, this channel provides our partners with meaningful liquidity to support their ongoing investment in the Loan Platform Business. The transaction priced at industry-leading cost-of-funds levels, with a weighted average spread of 87 basis points and an all-in yield of 5.10%.
Credit performance further strengthened in the first quarter. The on-balance sheet 90 day delinquency rate for personal loans decreased from 55 basis points to 46 basis points, while the on-balance sheet 90 day delinquency rate for student loans was 13 basis points, in line with the prior quarter.
Personal loan annualized charge-off rate decreased to 3.31% from 3.37% in the prior quarter, including the impact of asset sales, new originations and the delinquency sales in the quarter. Had SoFi not sold these late stage delinquent loans, it is estimated that, including recoveries, they would have had an all-in annualized net charge-off rate for personal loans of approximately 4.8% vs. 4.9% in the prior quarter.
The data continues to support a 7--8% maximum life of loan loss assumption for personal loans, in line with SoFi's underwriting tolerance.
Recent vintages, originated from the fourth quarter of 2022 to the second quarter of 2024 have net cumulative losses of 4.09%, with 43% unpaid principal balance remaining. This is well below the 5.53% observed at the same point in time for the 2017 vintage which is the last vintage that approached our 7-8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve improved by 16 basis points, after improving 15 basis points in the fourth quarter of 2024, demonstrating continued improvement.
Additionally, of the first quarter of 2020 through the fourth quarter of 2024 originations, 59% of principal has already been paid down, with 6.7% in net cumulative losses. Therefore, for life-of-loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 41% of unpaid principal would need to be approximately 10%. This would be well above past levels, providing further confidence in achieving loss rates below our 8% tolerance.
Lending -- Originations and Average Balances
Three Months Ended March 31,
-------------------------------- ----
2025 2024 % Change
------------- ------------ ----------
Origination volume
($ in thousands,
during period)
Personal loans(1) $ 5,536,841 $ 3,278,882 69%
Student loans 1,191,463 751,680 59%
Home loans 517,758 336,148 54%
------------- ------------
Total $ 7,246,062 $ 4,366,710 66%
============= ============
Average loan
balance ($, as of
period end)(2)
Personal loans $ 25,598 $ 24,259 6%
Student loans 43,103 44,448 (3)%
Home loans 268,674 282,917 (5)%
(1) Inclusive of origination volume related to our Loan Platform Business.
(2) Within each loan product category, average loan balance is defined as
the total unpaid principal balance of the loans divided by the number
of loans that have a balance greater than zero dollars as of the
reporting date. Average loan balance includes loans on our balance
sheet, as well as transferred loans and referred loans with which SoFi
has continuing involvement through our servicing agreements.
Lending -- Products March 31,
--------------------
2025 2024 % Change
--------- --------- ----------
Personal loans(1) 1,507,344 1,152,688 31%
Student loans 583,914 521,835 12%
Home loans 38,575 30,632 26%
--------- ---------
Total lending products 2,129,833 1,705,155 25%
========= =========
(1) Includes loans which we originate as part of our Loan Platform
Business.
Guidance and Outlook
Given the strong start to the year, management is increasing its 2025 guidance.
For the full year 2025, management now expects to deliver adjusted net revenue of $3.235 to $3.310 billion, which is $35 million higher than the prior guidance range of $3.200 to $3.275 billion. This implies 24% to 27% annual growth versus 23% to 26% in our prior guidance. Management expects adjusted EBITDA of $875 to $895 million, above prior guidance of $845 to $865 million. This represents an incremental EBITDA margin of 27%, consistent with our long term investment philosophy. SoFi expects GAAP net income of $320 to $330 million, above prior guidance of $285 to $305 million, representing an incremental margin of 9% when excluding 2024 non-recurring income tax benefits and gains on convertible notes. Lastly, SoFi expects GAAP EPS of $0.27 to $0.28 cents per share, above prior guidance of $0.25 to $0.27 cents per share. This guidance assumes a tax rate of 26% for the remainder of the year.
Management expects growth in tangible book value of approximately $585 to $600 million.
Management expects to add at least 2.8 million new members in 2025, which represents 28% growth from 2024 levels.
In the second quarter of 2025, management expects to generate $785 to $805 million of adjusted net revenue, $200 to $210 million of adjusted EBITDA, $60 to $70 million of GAAP net income and $0.05 to $0.06 of GAAP EPS.
Management will further address full-year guidance on the quarterly earnings conference call. Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures. This is because the company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.
Earnings Webcast
SoFi's executive management team will host a live audio webcast beginning at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) today to discuss the quarter's financial results and business highlights. All interested parties are invited to listen to the live webcast at https://investors.sofi.com. A replay of the webcast will be available on the SoFi Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on SoFi's Investor Relations website at https://investors.sofi.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain of the statements above are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our expectations for second quarter of 2025 and full year 2025 adjusted net revenue, annual growth rate, adjusted EBITDA, adjusted EBITDA margin, GAAP net income, GAAP net income incremental margin, GAAP EPS, tangible book value, and new members, our expectations regarding our ability to continue to grow our business, build our brand and launch new business lines and products, our ability to continue to attract and execute deals, our ability to continue to improve our financials and increase our member, product and total accounts count, our ability to achieve diversified and more durable growth, including our ability to continue to grow our Loan Platform Business, our ability to continue the momentum seen in prior financial periods, our ability to have loss rates below 8%, our ability to navigate the macroeconomic, geopolitical and regulatory environment, any changes in demand for our products, and the financial position, business strategy and plans and objectives of management for our future operations. These forward-looking statements are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as "achieve", "believe", "continue", "expect", "capable" "future", "growth", "may", "opportunity", "plan", "potential", "strategy", "will be", "will continue", and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: (i) the effect of and our ability to respond and adapt to changing market and economic conditions, including economic downturns, fluctuating inflation and interest rates, and volatility from macroeconomic, global, and political events, including announced or planned tariffs; (ii) our ability to maintain net income profitability, continue to increase fee-based revenue streams, continue to grow across our segments in the future, as well as our ability to meet our guidance; (iii) the impact on our business of the regulatory environment, changes in governmental policies, changes in personnel and resources of the governmental agencies that regulate us, and complexities with compliance related to such environment; (iv) our ability to realize the benefits of being a bank holding company and operating SoFi Bank, including continuing to grow high quality deposits and our rewards program for members; (v) our ability to continue to drive brand awareness and realize the benefits of our marketing and advertising campaigns; (vi) our ability to vertically integrate our businesses and accelerate the pace of innovation of our financial products; (vii) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (viii) our ability to access sources of capital on acceptable terms or at all; (ix) the success of our continued investments in our business; (x) our ability to expand our member base and increase our product adds; (xi) our ability to maintain our leadership position in certain categories of our business and to grow market share in existing markets or any new markets we may enter; (xii) our ability to cater to a broad range of clients and continue to execute deals with current or future business partners; (xiii) our ability to develop new products, features and functionality that are competitive and meet market needs; (xiv) our ability to realize the benefits of our strategy, including what we refer to as our FSPL; (xv) our ability to make accurate credit and pricing decisions or effectively forecast our loss rates; (xvi) our ability to establish and maintain an effective system of internal controls over financial reporting; (xvii) our ability to maintain the security and reliability of our products; and (xviii) the outcome of any legal or governmental proceedings instituted against us. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties set forth in the section titled "Risk Factors" in our last annual report on Form 10-K, as filed with the Securities and Exchange Commission, and those that are included in any of our future filings with the Securities and Exchange Commission. These forward-looking statements are based on information available as of the date hereof and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.
Non-GAAP Financial Measures
This press release presents information about certain non-GAAP financial measures provided as supplements to the results provided in accordance with accounting principles generally accepted in the United States (GAAP). Our management and Board of Directors uses these non-GAAP measures to evaluate our operating performance, formulate business plans, help better assess our overall liquidity position, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that these non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures. Other companies may not use these non-GAAP measures or may use similar measures that are defined in a different manner. Therefore, SoFi's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are provided in Table 2 to the "Financial Tables" herein.
About SoFi
SoFi Technologies (NASDAQ: SOFI) is a one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. Over 10.9 million members trust SoFi to borrow, save, spend, invest, and protect their money -- all in one app -- and get access to financial planners, exclusive experiences, and a thriving community. Fintechs, financial institutions, and brands use SoFi's technology platform Galileo to build and manage innovative financial solutions across 158.4 million global accounts. For more information, visit www.sofi.com or download our iOS and Android apps.
Availability of Other Information About SoFi
Investors and others should note that we communicate with our investors and the public using our website , including but not limited to investor presentations and investor fact sheets, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that SoFi posts on these channels and websites could be deemed to be material information. As a result, SoFi encourages investors, the media, and others interested in SoFi to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on SoFi's investor relations website and may include additional social media channels. The contents of SoFi's website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SOFI-F
FINANCIAL TABLES
(Unaudited)
1. Condensed Consolidated Statements of Operations and Comprehensive Income
2. Reconciliation of GAAP to Non-GAAP Financial Measures
3. Condensed Consolidated Balance Sheets
4. Average Balances and Net Interest Earnings Analysis
5. Company Metrics
6. Segment Financials
7. Disaggregated Revenue
8. Analysis of Charge-Offs
9. Regulatory Capital
Table 1
SoFi Technologies, Inc. Condensed Consolidated Statements of Operations
and Comprehensive Income (Unaudited) (In Thousands, Except for Per Share
Data)
Three Months Ended March 31,
----------------------------------
2025 2024
------------ -----------
Interest income
Loans and securitizations $ 712,876 $ 620,228
Other 50,936 45,683
------------ -----------
Total interest income 763,812 665,911
------------ -----------
Interest expense
Securitizations and warehouses 28,144 40,921
Deposits 225,399 211,451
Corporate borrowings 11,428 10,711
Other 115 110
------------ -----------
Total interest expense 265,086 263,193
------------ -----------
Net interest income 498,726 402,718
Noninterest income
Loan origination, sales, and
securitizations 48,358 57,000
Servicing 4,447 6,974
Technology products and solutions 86,437 85,672
Loan platform fees 92,750 10,714
Other 41,041 81,917
------------ -----------
Total noninterest income 273,033 242,277
------------ -----------
Total net revenue 771,759 644,995
------------ -----------
Provision for credit losses 5,678 7,182
Noninterest expense
Technology and product development 156,206 130,920
Sales and marketing 238,176 167,366
Cost of operations 135,520 100,061
General and administrative 156,397 145,240
------------ -----------
Total noninterest expense 686,299 543,587
------------ -----------
Income before income taxes 79,782 94,226
Income tax expense (8,666) (6,183)
------------ -----------
Net income $ 71,116 $ 88,043
============ ===========
Earnings per share
Earnings per share -- basic $ 0.06 $ 0.08
============ ===========
Earnings per share -- diluted $ 0.06 $ 0.02
============ ===========
Weighted average common stock
outstanding -- basic 1,097,994 982,617
Weighted average common stock
outstanding -- diluted 1,185,466 1,042,477
Table 2
Non-GAAP Financial Measures
(Unaudited)
Adjusted Net Revenue
Adjusted net revenue is a non-GAAP measure. Adjusted net revenue is defined as total net revenue, adjusted to exclude the fair value changes in servicing rights and residual interests classified as debt due to valuation inputs and assumptions changes, which relate only to our Lending segment, as well as gains and losses on extinguishment of debt. We adjust total net revenue to exclude these items, as they are non-cash charges that are not realized during the period or not indicative of our core operating performance, and therefore positive or negative changes do not impact the cash available to fund our operations. Management believes this measure is useful because it enables management and investors to assess our underlying operating performance and cash available to fund our operations. In addition, management uses this measure to better decide on the proper expenses to authorize for each of our operating segments, to ultimately help achieve target contribution profit margins.
The following table reconciles adjusted net revenue to total net revenue, the most directly comparable GAAP measure:
Three Months Ended March 31,
--------------------------------------
($ in thousands) 2025 2024
------------------------------- ----------- ----------
Total net revenue (GAAP) $ 771,759 $ 644,995
Servicing rights -- change in
valuation inputs or
assumptions(1) (1,074) (5,226)
Residual interests classified as
debt -- change in valuation
inputs or assumptions(2) 35 73
Gain on extinguishment of
debt(3) -- (59,194)
----------- ----------
Adjusted net revenue
(non-GAAP) $ 770,720 $ 580,648
=========== ==========
(1) Reflects changes in fair value inputs and assumptions on servicing
rights, including conditional prepayment, default rates and discount
rates. These assumptions are highly sensitive to market interest rate
changes and are not indicative of our performance or results of
operations. Moreover, these non-cash charges are unrealized during the
period and, therefore, have no impact on our cash flows from
operations.
(2) Reflects changes in fair value inputs and assumptions on residual
interests classified as debt, including conditional prepayment, default
rates and discount rates. When third parties finance our consolidated
securitization VIEs by purchasing residual interests, we receive
proceeds at the time of the closing of the securitization and,
thereafter, pass along contractual cash flows to the residual interest
owner. These residual debt obligations are measured at fair value on a
recurring basis, but they have no impact on our initial financing
proceeds, our future obligations to the residual interest owner
(because future residual interest claims are limited to contractual
securitization collateral cash flows), or the general operations of our
business.
(3) Reflects gain on extinguishment of debt. Gains and losses are
recognized during the period of extinguishment for the difference
between the net carrying amount of debt extinguished and the fair value
of equity securities issued.
The following table reconciles adjusted net revenue for the Lending segment to total net revenue, the most directly comparable GAAP measure for the Lending segment:
Three Months Ended March 31,
--------------------------------------
($ in thousands) 2025 2024
----------------------------- ----------- ----------
Lending
Total net revenue -- Lending
(GAAP) $ 413,373 $ 330,476
Servicing rights -- change in
valuation inputs or
assumptions(1) (1,074) (5,226)
Residual interests classified
as debt -- change in
valuation inputs or
assumptions(2) 35 73
----------- ----------
Adjusted net revenue --
Lending (non-GAAP) $ 412,334 $ 325,323
=========== ==========
(1) See footnote (1) to the table above.
(2) See footnote (2) to the table above.
Adjusted Noninterest Income
Adjusted noninterest income is a non-GAAP measure. Adjusted noninterest income is defined as noninterest income, adjusted to exclude the fair value changes in servicing rights and residual interests classified as debt due to valuation inputs and assumptions changes, which relate only to our Lending segment, as well as gains and losses on extinguishment of debt. We adjust noninterest income to exclude these items, as they are non-cash charges that are not realized during the period or not indicative of our core operating performance, and therefore positive or negative changes do not impact the cash available to fund our operations. Management believes this measure is useful because it enables management and investors to assess our underlying operating performance and cash available to fund our operations.
The following table reconciles adjusted noninterest income to noninterest income, the most directly comparable GAAP measure:
Three Months Ended March 31,
--------------------------------------
($ in thousands) 2025 2024
----------------------------- ----------- ----------
Noninterest income (GAAP) $ 273,033 $ 242,277
Servicing rights -- change in
valuation inputs or
assumptions(1) (1,074) (5,226)
Residual interests classified
as debt -- change in
valuation inputs or
assumptions(2) 35 73
Gain on extinguishment of
debt(3) -- (59,194)
----------- ----------
Adjusted noninterest income
(non-GAAP) $ 271,994 $ 177,930
=========== ==========
(1) Reflects changes in fair value inputs and assumptions on servicing
rights, including conditional prepayment, default rates and discount
rates. These assumptions are highly sensitive to market interest rate
changes and are not indicative of our performance or results of
operations. Moreover, these non-cash charges are unrealized during the
period and, therefore, have no impact on our cash flows from
operations.
(2) Reflects changes in fair value inputs and assumptions on residual
interests classified as debt, including conditional prepayment, default
rates and discount rates. When third parties finance our consolidated
securitization VIEs by purchasing residual interests, we receive
proceeds at the time of the closing of the securitization and,
thereafter, pass along contractual cash flows to the residual interest
owner. These residual debt obligations are measured at fair value on a
recurring basis, but they have no impact on our initial financing
proceeds, our future obligations to the residual interest owner
(because future residual interest claims are limited to contractual
securitization collateral cash flows), or the general operations of our
business.
(3) Reflects gain on extinguishment of debt. Gains and losses are
recognized during the period of extinguishment for the difference
between the net carrying amount of debt extinguished and the fair value
of equity securities issued.
The following table reconciles adjusted noninterest income for the Lending segment to noninterest income, the most directly comparable GAAP measure for the Lending segment:
Three Months Ended March 31,
--------------------------------------
($ in thousands) 2025 2024
----------------------------- ----------- ----------
Lending
Noninterest income -- Lending
(GAAP) $ 52,752 $ 63,940
Servicing rights -- change in
valuation inputs or
assumptions(1) (1,074) (5,226)
Residual interests classified
as debt -- change in
valuation inputs or
assumptions(2) 35 73
----------- ----------
Adjusted noninterest income
-- Lending (non-GAAP) $ 51,713 $ 58,787
=========== ==========
(1) See footnote (1) to the table above.
(2) See footnote (2) to the table above.
Adjusted Contribution Margin and Incremental Adjusted Contribution Margin -- Lending
Adjusted contribution margin and incremental adjusted contribution margin are non-GAAP measures and relate only to our Lending segment. Adjusted contribution margin is defined as segment contribution profit for the Lending segment, divided by adjusted net revenue for the Lending segment, a non-GAAP measure. Incremental adjusted contribution margin is defined as the change in segment contribution profit for our Lending segment, divided by change in adjusted net revenue for the Lending segment. See 'Adjusted Net Revenue' above for a reconciliation of Lending segment adjusted net revenue.
Management believes adjusted contribution margin metrics are useful because they enable management and investors to assess the underlying operating performance of our Lending segment, by removing the impact of changes in volume over periods to present a comparable view of segment contribution profit, which is a measure of the direct profitability of each of our reportable segments, as a percentage of segment adjusted net revenue for the Lending segment during each period.
The following table presents a reconciliation of adjusted contribution margin and incremental adjusted contribution margin for our reportable Lending segment:
Three Months Ended
March 31, 2025 vs 2024
--------------------------
($ in thousands) 2025 2024 $ Change
------------------- ------- ------- ----------------
Lending
Contribution profit
-- Lending (GAAP) $238,935 $207,719 $ 31,216
Net revenue --
Lending (GAAP) 413,373 330,476 82,897
Contribution margin
-- Lending
(GAAP)(1) 58% 63%
Incremental
contribution margin
-- Lending
(GAAP)(1) 38%
Adjusted net revenue
-- Lending
(non-GAAP)(2) $412,334 $325,323 $ 87,011
Adjusted
contribution margin
-- Lending
(non-GAAP) 58% 64%
Incremental adjusted
contribution margin
-- Lending
(non-GAAP) 36%
(1) Contribution margin is defined for each of our reportable segments as
contribution profit divided by net revenue. Incremental contribution
margin for each of our reportable segments is defined as the change in
segment contribution profit divided by change in net revenue.
(2) Refer to 'Adjusted Net Revenue' above for reconciliation of this
non-GAAP measure.
Adjusted EBITDA, Adjusted EBITDA Margin and Incremental Adjusted EBITDA Margin
Adjusted EBITDA, adjusted EBITDA margin and incremental adjusted EBITDA margin are non-GAAP measures. Adjusted EBITDA is defined as net income, adjusted to exclude, as applicable: (i) corporate borrowing-based interest expense (our adjusted EBITDA measure is not adjusted for warehouse or securitization-based interest expense, nor deposit interest expense and finance lease liability interest expense, as these are direct operating expenses), (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) share-based expense (inclusive of equity-based payments to non-employees), (v) restructuring charges, (vi) impairment expense (inclusive of goodwill impairment and property, equipment and software abandonments), (vii) transaction-related expenses, (viii) foreign currency impacts related to operations in highly inflationary countries, (ix) fair value changes in each of servicing rights and residual interests classified as debt due to valuation assumptions, (x) gain on extinguishment of debt, and (xi) other charges, as appropriate, that are not expected to recur and are not indicative of our core operating performance.
Adjusted EBITDA margin is computed as adjusted EBITDA divided by adjusted net revenue. Incremental adjusted EBITDA margin is defined as the change in adjusted EBITDA, divided by change in adjusted net revenue. See 'Adjusted Net Revenue' above for a reconciliation of this non-GAAP measure.
Management believes adjusted EBITDA, adjusted EBITDA margin and incremental adjusted EBITDA margin are useful measures for period-over-period comparisons of our business. These measures enable management and investors to assess our core operating performance or results of operations by removing the effects of certain non-cash items and charges, as well as the impact of changes in volume over periods as applicable. In addition, management uses these measures to help evaluate cash flows generated from operations and the extent of additional capital, if any, required to invest in strategic initiatives.
The following table reconciles adjusted EBITDA to net income, the most directly comparable GAAP measure, and presents the computations of adjusted EBITDA margin and incremental adjusted EBITDA margin:
Three Months Ended 2025 vs
March 31, 2024
--------------------------
($ in thousands) 2025 2024 $ Change
--------------------- ------- ------- -----------
Net income (GAAP) $ 71,116 $ 88,043 $(16,927)
Non-GAAP
adjustments:
Interest expense --
corporate
borrowings(1) 11,428 10,711 717
Income tax
expense(2) 8,666 6,183 2,483
Depreciation and
amortization 55,283 48,539 6,744
Share-based expense 63,756 55,082 8,674
Restructuring
charges(3) 851 -- 851
Foreign currency
impact of highly
inflationary
subsidiaries(4) 276 174 102
Servicing rights --
change in
valuation inputs
or assumptions(5) (1,074) (5,226) 4,152
Residual interests
classified as debt
-- change in
valuation inputs
or assumptions(6) 35 73 (38)
Gain on
extinguishment of
debt(7) -- (59,194) 59,194
------- -------
Total
adjustments 139,221 56,342 82,879
------- -------
Adjusted EBITDA
(non-GAAP) $210,337 $144,385 $ 65,952
======= =======
Net income (GAAP) $ 71,116 $ 88,043 $(16,927)
Total net revenue
(GAAP) 771,759 644,995 126,764
Net income margin
(GAAP) 9% 14%
Incremental net
income margin
(GAAP) (13)%
Adjusted net revenue
(non-GAAP)(8) $770,720 $580,648 $190,072
Adjusted EBITDA margin
(non-GAAP) 27% 25%
Incremental adjusted
EBITDA margin
(non-GAAP) 35%
(1) Our adjusted EBITDA measure adjusts for corporate borrowing-based
interest expense, as these expenses are a function of our capital
structure. Corporate borrowing-based interest expense includes interest
on our revolving credit facility, as well as interest expense and the
amortization of debt discount and debt issuance costs on our
convertible notes.
(2) The income tax expense recognized in both years was primarily
attributable to the Company's profitability and discrete tax benefits
for stock compensation recorded in each quarter.
(3) Restructuring charges in the three months ended March 31, 2025 relate
to legal entity restructuring.
(4) Foreign currency charges reflect the impacts of highly inflationary
accounting for our operations in Argentina, which are related to our
Technology Platform segment and commenced in the first quarter of 2022
with the Technisys Merger.
(5) Reflects changes in fair value inputs and assumptions, including market
servicing costs, conditional prepayment, default rates and discount
rates. This non-cash change is unrealized during the period and,
therefore, has no impact on our cash flows from operations. As such,
these positive and negative changes in fair value attributable to
assumption changes are adjusted out of net income to provide management
and financial users with better visibility into the earnings available
to finance our operations.
(6) Reflects changes in fair value inputs and assumptions, including
conditional prepayment, default rates and discount rates. When third
parties finance our consolidated VIEs through purchasing residual
interests, we receive proceeds at the time of the securitization close
and, thereafter, pass along contractual cash flows to the residual
interest owner. These obligations are measured at fair value on a
recurring basis, which has no impact on our initial financing proceeds,
our future obligations to the residual interest owner (because future
residual interest claims are limited to contractual securitization
collateral cash flows), or the general operations of our business. As
such, these positive and negative non-cash changes in fair value
attributable to assumption changes are adjusted out of net income to
provide management and financial users with better visibility into the
earnings available to finance our operations..
(7) Reflects gain on extinguishment of debt. Gains and losses are
recognized during the period of extinguishment for the difference
between the net carrying amount of debt extinguished and the fair value
of equity securities issued.
(8) Refer to 'Adjusted Net Revenue' above for reconciliation of this
non-GAAP measure.
Tangible Book Value and Tangible Book Value per Common Share
Beginning in the fourth quarter of 2024, the Company modified the presentation of its tangible book value and tangible book value per share, which are non-GAAP measures. Tangible book value is defined as permanent equity, adjusted to exclude goodwill and intangible assets, net of related deferred tax liabilities. Tangible book value per common share represents tangible book value at period-end divided by common stock outstanding at period-end. Prior periods were revised to conform with this presentation.
These measures are utilized by management in assessing our use of equity and capital adequacy. We believe that tangible book value presents a meaningful measure of net asset value, and tangible book value per share provides additional useful information to investors to assess capital adequacy.
The following table reconciles tangible book value to permanent equity, the most directly comparable GAAP measure, and presents the computation of permanent equity per common share and tangible book value per common share for the periods presented:
($ and shares in thousands, except March 31, March 31,
per share amounts) 2025 2024
------------------------------------- ------------ --------------
Permanent equity (GAAP) $ 6,678,514 $ 5,825,605
Non-GAAP adjustments:
Goodwill (1,393,505) (1,393,505)
Intangible assets (279,757) (347,495)
Related deferred tax liabilities 55,780 30,437
---------- ----------
Tangible book value (as of period end)
(non-GAAP) $ 5,061,032 $ 4,115,042
========== ==========
Common stock outstanding (as of period
end) 1,104,104 1,056,491
Book value per common share (GAAP) $ 6.05 $ 5.51
Tangible book value per common share
(non-GAAP) $ 4.58 $ 3.90
Adjusted Net Income, Adjusted Net Income Margin, Incremental Adjusted Net Income Margin and Adjusted EPS
Adjusted net income, adjusted net income margin, incremental adjusted net income margin and adjusted diluted earnings per share are non-GAAP measures. Adjusted net income is defined as net income, adjusted to exclude, as applicable, goodwill impairment expense and certain income tax benefits that are not expected to recur and are not indicative of our core operating performance.
Adjusted diluted earnings per share ("adjusted EPS") is a non-GAAP financial measure that adjusts GAAP diluted earnings per share. Adjusted EPS is computed by dividing net income attributable to common stockholders, adjusted to exclude, as applicable, goodwill impairment expense and certain income tax benefits that are not expected to recur and are not indicative of our core operating performance, by the diluted weighted average number of shares of common stock outstanding during the period, excluding the dilutive impact of the 2029 convertible notes under the if-converted method for which the 2029 capped call transactions would deliver shares to offset dilution.
Adjusted net income margin is computed as adjusted net income divided by adjusted net revenue. Incremental adjusted net income margin is defined as the change in adjusted net income, divided by change in adjusted net revenue. See 'Adjusted Net Revenue' above for a reconciliation of this non-GAAP measure.
Management believes adjusted net income, adjusted net income margin, incremental adjusted net income margin and adjusted EPS are useful because they enable management and investors to assess our core operating performance or results of operations, by removing the effects of certain non cash items and charges to present a comparable view for period over period comparisons of our business.
The following table: (i) reconciles adjusted net income to net income, the most directly comparable GAAP measure, (ii) reconciles adjusted EPS to diluted earnings per share, the most directly comparable GAAP measure, and (iii) presents the computations of adjusted net income margin and incremental adjusted net income margin.
2025 vs
Three Months Ended March 31, 2024
------------------------------
($ and shares in
thousands, except
per share
amounts) 2025 2024 $ Change
----------------- --------- --------- -----------
Net income (GAAP) $ 71,116 $ 88,043 $(16,927)
--------- ---------
Adjusted net
income
(non-GAAP) $ 71,116 $ 88,043 $(16,927)
========= =========
Numerator:
Net income
attributable to
common
stockholders --
diluted
(GAAP)(1) $ 71,455 $ 22,523
--------- ---------
Adjusted net
income
attributable to
common
stockholders --
diluted
(non-GAAP) $ 71,455 $ 22,523
========= =========
Denominator:
Weighted average
common stock
outstanding --
diluted 1,185,466 1,042,477
Non-GAAP
adjustments:
Dilutive impact
of 2029
convertible
notes(2) (31,412) --
--------- ---------
Adjusted weighted
average common
stock outstanding
-- diluted
(non-GAAP) 1,154,054 1,042,477
========= =========
Earnings per share
-- diluted
(GAAP)(1) $ 0.06 $ 0.02
Impact of
adjustments per
share -- --
--------- ---------
Adjusted earnings
per share --
diluted
(non-GAAP)(1) $ 0.06 $ 0.02
========= =========
Net income margin
(GAAP) 9% 14%
Adjusted net
revenue
(non-GAAP)(3) $ 770,720 $ 580,648
Adjusted net
income margin
(non-GAAP) 9% 15%
Incremental (9 )%
adjusted net
income margin
(non-GAAP)
(1) Diluted earnings per share and diluted net income attributable to
common stockholders exclude gain on extinguishment of debt, net of tax,
as well as interest expense incurred, net of tax, associated with
convertible note activity during the period as evaluated under the
if-converted method.
(2) This non-GAAP adjustment excludes the dilutive impact of the 2029
convertible notes at stock prices below $14.54, as the 2029 capped call
transactions in place will deliver shares to offset dilution. At stock
prices in excess of $14.54, the Company would have an obligation to
deliver cash or additional shares in excess of the dilution protection
provided by the 2029 capped call transactions.
(3) Refer to 'Adjusted Net Revenue' above for reconciliation of this
non-GAAP measure.
Table 3
SoFi Technologies, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except for Share Data)
March 31, December 31,
2025 2024
------------ --------------
Assets
Cash and cash equivalents $ 2,085,697 $ 2,538,293
Restricted cash and restricted cash
equivalents 630,439 171,067
Investment securities (includes
available-for-sale securities of
$2,072,637 and $1,804,043 at fair value
with associated amortized cost of
$2,065,629 and $1,807,686, as of March
31, 2025 and December 31, 2024,
respectively) 2,153,456 1,895,689
Loans held for sale, at fair value 18,226,063 17,684,892
Loans held for investment, at fair value 9,571,457 8,597,368
Loans held for investment, at amortized
cost (less allowance for credit losses
of $44,369 and $46,684, as of March 31,
2025 and December 31, 2024,
respectively) 1,296,413 1,246,458
Servicing rights 389,780 342,128
Property, equipment and software 316,599 287,869
Goodwill 1,393,505 1,393,505
Intangible assets 279,757 297,794
Operating lease right-of-use assets 77,841 81,219
Other assets (less allowance for credit
losses of $2,789 and $2,444, as of
March 31, 2025 and December 31, 2024,
respectively) 1,328,279 1,714,669
---------- ----------
Total assets $37,749,286 $36,250,951
========== ==========
Liabilities and permanent equity
Liabilities:
Deposits:
Interest-bearing deposits $27,136,167 $25,861,400
Noninterest-bearing deposits 120,361 116,804
---------- ----------
Total deposits 27,256,528 25,978,204
Accounts payable, accruals and other
liabilities 674,385 556,923
Operating lease liabilities 93,135 97,389
Debt 3,046,145 3,092,692
Residual interests classified as debt 579 609
---------- ----------
Total liabilities 31,070,772 29,725,817
---------- ----------
Commitments, guarantees, concentrations
and contingencies
Permanent equity
Common stock, $0.00 par value:
3,100,000,000 and 3,100,000,000
shares authorized; 1,104,104,203 and
1,095,357,781 shares issued and
outstanding as of March 31, 2025 and
December 31, 2024, respectively 110 109
Additional paid-in capital 7,910,058 7,838,988
Accumulated other comprehensive income
(loss) 2,828 (8,365)
Accumulated deficit (1,234,482) (1,305,598)
---------- ----------
Total permanent equity 6,678,514 6,525,134
---------- ----------
Total liabilities and permanent
equity $37,749,286 $36,250,951
========== ==========
Table 4
SoFi Technologies, Inc.
Average Balances and Net Interest Earnings Analysis
(Unaudited)
Three Months Ended March 31, 2025 Three Months Ended March 31, 2024
------------------------------------------- -------------------------------------------
Average Interest Average Average Interest Average
($ in thousands) Balances Income/Expense Yield/Rate Balances Income/Expense Yield/Rate
----------------------- ----------- ---------------- ------------ ----------- ---------------- ------------
Assets
Interest-earning
assets:
Interest-bearing
deposits with banks $ 2,738,657 $ 25,987 3.85% $ 3,120,567 $ 37,268 4.80%
Investment securities 2,031,588 26,344 5.26 767,789 10,202 5.34
Loans 28,877,073 711,481 9.99 23,540,252 618,441 10.57
---------- ---- ---------- ---------- ---- ----------
Total interest-earning
assets 33,647,318 763,812 9.21 27,428,608 665,911 9.76
---------- ---- ---------- ---------- ---- ----------
Total
noninterest-earning
assets. 3,822,660 3,006,934
---------- ----------
Total assets $37,469,978 $30,435,542
========== ==========
Liabilities, Temporary
Equity and Permanent
Equity
Interest-bearing
liabilities:
Demand deposits $ 1,988,318 $ 2,371 0.48% $ 2,528,655 $ 11,398 1.81%
Savings deposits 23,694,819 216,671 3.71 14,317,371 162,445 4.56
Time deposits 502,562 6,357 5.13 2,974,750 37,608 5.08
---------- ---- ---------- ---------- ---- ----------
Total
interest-bearing
deposits 26,185,699 225,399 3.49 19,820,776 211,451 4.29
Warehouse facilities 1,988,643 26,390 5.38 2,141,601 34,860 6.55
Securitization debt 73,781 581 3.20 333,957 3,658 4.40
Other debt 1,755,695 12,716 2.94 1,751,789 13,224 3.04
---------- ---- ---------- ---------- ---- ----------
Total debt 3,818,119 39,687 4.22 4,227,347 51,742 4.92
Residual interests
classified as debt 579 -- -- 5,004 -- --
---------- ---- ---------- ---------- ---- ----------
Total interest-bearing
liabilities 30,004,397 265,086 3.58 24,053,127 263,193 4.40
---------- ---- ---------- ---------- ---- ----------
Total
noninterest-bearing
liabilities 851,676 718,828
---------- ----------
Total liabilities 30,856,073 24,771,955
---------- ----------
Total temporary equity -- 320,374
Total permanent equity 6,613,905 5,343,213
---------- ----------
Total liabilities,
temporary equity and
permanent equity $37,469,978 $30,435,542
========== ==========
Net interest income $ 498,726 $ 402,718
==== ========== ==== ==========
Net interest margin 6.01% 5.91%
Table 5
Company Metrics
March 31, December September June 30, March 31, December September June 30, March 31,
2025 31, 2024 30, 2024 2024 2024 31, 2023 30, 2023 2023 2023
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -------------
Members 10,915,811 10,127,323 9,372,615 8,774,236 8,131,720 7,541,860 6,957,187 6,240,091 5,655,711
Total Products 15,915,425 14,745,435 13,650,730 12,776,430 11,830,128 11,142,476 10,447,806 9,401,025 8,554,363
Total
Products --
Lending
segment 2,129,833 2,010,354 1,890,761 1,786,580 1,705,155 1,663,006 1,593,906 1,503,892 1,416,122
Total
Products --
Financial
Services
segment 13,785,592 12,735,081 11,759,969 10,989,850 10,124,973 9,479,470 8,853,900 7,897,133 7,138,241
Total Accounts
-- Technology
Platform
segment 158,432,347 167,713,818 160,179,299 158,485,125 151,049,375 145,425,391 136,739,131 129,356,203 126,326,916
Total Products,
excluding
digital
assets(1) 15,915,425 14,745,435 13,650,730 12,776,430 11,830,128 10,876,881 9,984,685 8,965,949 8,139,065
Total
Products,
excluding
digital
assets --
Financial
Services
segment(1) 13,785,592 12,735,081 11,759,969 10,989,850 10,124,973 9,213,875 8,390,779 7,462,057 6,722,943
SoFi Invest,
excluding
digital
assets(1) 2,684,658 2,525,059 2,394,367 2,332,045 2,224,705 2,115,046 2,001,951 1,880,701 1,795,617
(1) In the fourth quarter of 2023, we transferred the crypto services
provided by SoFi Digital Assets, LLC, and began closing existing
digital assets accounts and removing the account from Invest products.
This process was completed in the first quarter of 2024.
Members
We refer to our customers as "members". We define a member as someone who has a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring service. Our members have access to our CFPs, our member events, our content, educational material, news, and our tools and calculators, which are provided at no cost to the member. We view members as an indication not only of the size and a measurement of growth of our business, but also as a measure of the significant value of the data we have collected over time.
Once someone becomes a member, they are always considered a member unless they are removed in accordance with our terms of service, in which case, we adjust our total number of members. This could occur for a variety of reasons--including fraud or pursuant to certain legal processes--and, as our terms of service evolve together with our business practices, product offerings and applicable regulations, our grounds for removing members from our total member count could change. The determination that a member should be removed in accordance with our terms of service is subject to an evaluation process, following the completion, and based on the results, of which, relevant members and their associated products are removed from our total member count in the period in which such evaluation process concludes. However, depending on the length of the evaluation process, that removal may not take place in the same period in which the member was added to our member count or the same period in which the circumstances leading to their removal occurred. For this reason, our total member count may not yet reflect adjustments that may be made once ongoing evaluation processes, if any, conclude. Beginning in the first quarter of 2024, we aligned our methodology for calculating member and product metrics with our member and product definitions to include co-borrowers, co-signers, and joint- and co-account holders, as applicable. Quarterly amounts for prior periods were determined to be immaterial and were not recast.
Total Products
Total products refers to the aggregate number of lending and financial services products that our members have selected on our platform since our inception through the reporting date, whether or not the members are still registered for such products. Total products is a primary indicator of the size and reach of our Lending and Financial Services segments. Management relies on total products metrics to understand the effectiveness of our member acquisition efforts and to gauge the propensity for members to use more than one product.
In our Lending segment, total products refers to the number of personal loans, student loans and home loans that have been originated through our platform through the reporting date, inclusive of loans which we originate as part of our Loan Platform Business, whether or not such loans have been paid off. If a member has multiple loan products of the same loan product type, such as two personal loans, that is counted as a single product. However, if a member has multiple loan products across loan product types, such as one personal loan and one home loan, that is counted as two products. The account of a co-borrower or co-signer is not considered a separate lending product.
In our Financial Services segment, total products refers to the number of SoFi Money accounts (inclusive of checking and savings accounts held at SoFi Bank and cash management accounts), SoFi Invest accounts, SoFi Credit Card accounts (including accounts with a zero dollar balance at the reporting date), referred loans (which are originated by a third-party partner to which we provide pre-qualified borrower referrals), SoFi At Work accounts and SoFi Relay accounts (with either credit score monitoring enabled or external linked accounts) that have been opened through our platform through the reporting date. Checking and savings accounts are considered one account within our total products metric. Our SoFi Invest service is composed of two products: active investing accounts and robo-advisory accounts. Our members can select any one or combination of the types of SoFi Invest products. If a member has multiple SoFi Invest products of the same account type, such as two active investing accounts, that is counted as a single product. However, if a member has multiple SoFi Invest products across account types, such as one active investing account and one robo-advisory account, those separate account types are considered separate products. The account of a joint- or co-account holder is considered a separate financial services product. In the event a member is removed in accordance with our terms of service, as discussed under "Members" above, the member's associated products are also removed.
Technology Platform Total Accounts
In our Technology Platform segment, total accounts refers to the number of open accounts at Galileo as of the reporting date. We include intercompany accounts on the Galileo platform as a service in our total accounts metric to better align with the Technology Platform segment revenue which includes intercompany revenue. Intercompany revenue is eliminated in consolidation. Total accounts is a primary indicator of the accounts dependent upon our technology platform to use virtual card products, virtual wallets, make peer-to-peer and bank-to-bank transfers, receive early paychecks, separate savings from spending balances, make debit transactions and rely upon real-time authorizations, all of which result in revenues for the Technology Platform segment. We do not measure total accounts for the Technisys products and solutions, as the revenue model is not primarily dependent upon being a fully integrated, stand-ready service.
Table 6
Segment Financials
(Unaudited)
Quarter Ended
--------------------------------------------------------------------------------------------------
March December
($ and shares in March 31, December September June 30, 31, 31, September June 30, March 31,
thousands) 2025 31, 2024 30, 2024 2024 2024 2023 30, 2023 2023 2023
--------- --------- --------- --------- -------- -------- ---------- --------- -----------
Lending
Net interest
income $360,621 $345,210 $316,268 $279,212 $266,536 $262,626 $ 265,215 $231,885 $201,047
Total noninterest
income 52,752 72,586 79,977 61,493 63,940 90,500 83,758 99,556 136,034
------- ------- ------- ------- ------- ------- -------- ------- -------
Total net
revenue 413,373 417,796 396,245 340,705 330,476 353,126 348,973 331,441 337,081
Adjusted net
revenue --
Lending(1) 412,334 422,783 391,892 339,052 325,323 346,541 342,481 322,238 325,086
Contribution
profit --
Lending(2) 238,935 245,958 238,928 197,938 207,719 226,110 203,956 183,309 209,898
Technology
Platform
Net interest
income $ 413 $ 473 $ 629 $ 555 $ 501 $ 941 $ 573 $ -- $ --
Total noninterest
income 103,014 102,362 101,910 94,883 93,865 95,966 89,350 87,623 77,887
------- ------- ------- ------- ------- ------- -------- ------- -------
Total net
revenue(2) 103,427 102,835 102,539 95,438 94,366 96,907 89,923 87,623 77,887
Contribution
profit --
Technology
Platform 30,913 32,107 32,955 31,151 30,742 30,584 32,191 17,154 14,857
Financial
Services
Net interest
income $173,199 $160,337 $154,143 $139,229 $119,713 $109,072 $ 93,101 $ 74,637 $ 58,037
Total noninterest
income 129,920 96,183 84,165 36,903 30,838 30,043 25,146 23,415 23,064
------- ------- ------- ------- ------- ------- -------- ------- -------
Total net
revenue 303,119 256,520 238,308 176,132 150,551 139,115 118,247 98,052 81,101
Contribution
profit (loss) --
Financial
Services(2) 148,332 114,855 99,758 55,220 37,174 25,060 3,260 (4,347) (24,235)
Corporate/Other
Net interest
income
(expense) $(35,507) $(35,851) $(40,030) $ (6,412) $ 15,968 $ 17,002 $ (13,926) $(15,396) $(23,074)
Total noninterest
income (loss) (12,653) (7,175) 59 (7,245) 53,634 9,254 (6,008) (3,702) (837)
------- ------- ------- ------- ------- ------- -------- ------- -------
Total net
revenue
(loss)(2) (48,160) (43,026) (39,971) (13,657) 69,602 26,256 (19,934) (19,098) (23,911)
Consolidated
Net interest
income $498,726 $470,169 $431,010 $412,584 $402,718 $389,641 $ 344,963 $291,126 $236,010
Total noninterest
income 273,033 263,956 266,111 186,034 242,277 225,763 192,246 206,892 236,148
------- ------- ------- ------- ------- ------- -------- ------- -------
Total net
revenue 771,759 734,125 697,121 598,618 644,995 615,404 537,209 498,018 472,158
Adjusted net
revenue(1) 770,720 739,112 689,445 596,965 580,648 594,245 530,717 488,815 460,163
Net income (loss) 71,116 332,473 60,745 17,404 88,043 47,913 (266,684) (47,549) (34,422)
Adjusted
EBITDA(1) 210,337 197,957 186,237 137,901 144,385 181,204 98,025 76,819 75,689
(1) Adjusted net revenue and adjusted EBITDA are non-GAAP financial
measures. For additional information on these measures and
reconciliations to the most directly comparable GAAP measures, see
"Non-GAAP Financial Measures" and Table 2 to the "Financial Tables"
herein.
(2) Technology Platform segment total net revenue includes intercompany
fees. The equal and offsetting intercompany expenses are reflected
within all three segments' directly attributable expenses, as well as
within expenses not allocated to segments. The intercompany revenues
and expenses are eliminated in consolidation. The revenues are
eliminated within Corporate/Other and the expenses represent a
reconciling item of segment contribution profit (loss) to consolidated
income (loss) before income taxes.
Table 7
Disaggregated Revenue
(Unaudited)
Three Months Ended March 31,
----------------------------------
($ in thousands) 2025 2024
--------------------------------- ------------- ------------
Revenue from contracts with
customers
Financial Services
Referrals, loan platform
business $ 19,700 $ 10,702
Referrals, other 2,530 2,034
Interchange 22,812 12,002
Brokerage 6,985 4,034
Other 1,731 927
------------- ------------
Total financial services $ 53,758 $ 29,699
------------- ------------
Technology Platform
Technology services 85,988 84,650
Other 636 1,260
------------- ------------
Total technology platform 86,624 85,910
------------- ------------
Total revenue from contracts
with customers 140,382 115,609
------------- ------------
Other sources of revenue
Loan origination, sales, and
securitizations 48,358 57,000
Servicing 4,447 6,974
Loan platform business, other 73,050 12
Other 6,796 62,682
------------- ------------
Total other sources of
revenue $ 132,651 $ 126,668
------------- ------------
Total noninterest income $ 273,033 $ 242,277
============= ============
Table 8
Analysis of Charge-Offs
(Unaudited)
Three Months Ended March 31, 2025 Three Months Ended March 31, 2024
------------------------------------- -------------------------------------
Average Net Average Net
($ in thousands) Loans Charge-offs Ratio Loans Charge-offs Ratio
----------------- ----------- ------------- --------- ----------- ------------- ---------
Personal loans $18,394,833 $ 150,074 3.31% $15,664,935 $ 134,387 3.45%
Student loans 9,051,465 10,597 0.47% 6,983,205 10,417 0.60%
Home loans 226,734 -- --% 49,759 -- --%
Secured loans 757,030 -- --% 451,121 -- --%
Credit card 297,637 7,990 10.89% 269,688 10,546 15.73%
Commercial and
consumer banking 149,374 3 0.01% 121,544 18 0.06%
---------- --------- ---------- ---------
Total loans $28,877,073 $ 168,664 2.37% $23,540,252 $ 155,368 2.65%
========== ========= ========== =========
Table 9
Regulatory Capital
(Unaudited)
March 31, 2025 March 31, 2024
----------------------- ---------------------
Required
($ in thousands) Amount(1) Ratio(1) Amount Ratio Minimum(2)
------------------- ----------- ---------- ----------- -------- ------------
SoFi Technologies
-----------------
CET1 risk-based
capital $ 4,588,665 15.3% $ 3,991,968 17.1% 7.0%
Tier 1 risk-based
capital 4,588,665 15.3% 3,991,968 17.1% 8.5%
Total risk-based
capital 4,632,758 15.5% 4,042,980 17.3% 10.5%
Tier 1 leverage 4,588,665 13.0% 3,991,968 14.0% 4.0%
Risk-weighted assets 29,916,797 23,335,645
Quarterly adjusted
average assets 35,382,231 28,599,819
(1) Estimated.
(2) Required minimums presented for risk-based capital ratios include the
required capital conservation buffer.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250429676374/en/
CONTACT: Investors:
SoFi Investor Relations
IR@sofi.com
Media:
SoFi Media Relations
PR@sofi.com
(END) Dow Jones Newswires
April 29, 2025 07:01 ET (11:01 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.