SoFi Technologies(US:SOFI)2025-10-28 11:03Financial Performance - SoFi reported record net revenue of $961.6 million for Q3 2025, a 38% increase from $697.1 million in Q3 2024[7] - Adjusted net revenue reached a record $949.6 million, up 38% year-over-year from $689.4 million[7] - Net income for Q3 2025 was $139.4 million, representing a 129% increase compared to $60.7 million in Q3 2024[9] - Total financial services products revenue reached $16.1 billion in Q3 2025, a 37% increase from $11.8 billion in Q3 2024[33] - Total net revenue for Q3 2025 reached $961.6 million, a 38% increase from $697.1 million in Q3 2024[78] - Noninterest income for Q3 2025 was $376.5 million, a 41.5% increase from $266.1 million in Q3 2024[87] - The company reported a net income of $139.4 million for Q3 2025, compared to $60.7 million in Q3 2024, representing a 129% increase[78] - Adjusted net income for the nine months ended September 30, 2025, reached $307,771,000, up from $166,192,000 in the same period of 2024, marking a 85.0% increase[118] Member and Product Growth - Member growth reached 12.6 million, up 35% year-over-year, with 905,000 new members added in the quarter[6] - Total products grew to 18.6 million, a 36% increase year-over-year, with 1.4 million new products added[15] - The number of members reached 12,642,375 as of September 30, 2025, a 24.5% increase from 10,127,323 members a year earlier[124] - Total products offered increased to 18,553,053 as of September 30, 2025, up from 14,745,435 in the same period of 2024, marking a growth of 25.5%[124] - The total number of lending products reached 2,462,588 as of September 30, 2025, compared to 2,010,354 a year earlier, indicating a growth of 22.5%[124] Revenue Segments - Fee-based revenue hit a record $408.7 million, up 50% from the prior year, driven by strong performance across various segments[8] - Lending segment GAAP net revenue was $493.4 million, up 25% year-over-year, driven by a 35% increase in net interest income[39] - Technology Platform segment net revenue increased 12% year-over-year to $114.6 million, with a contribution margin of 28%[35] - Lending segment adjusted net revenue was $481.4 million, a 23% increase from the prior year[42] - Total net revenue for the consolidated entity reached $961,600,000 in Q3 2025, compared to $598,618,000 in Q3 2024, reflecting a 60.5% increase[134] - Total net revenue for the Financial Services segment was $419,623,000 in Q3 2025, up from $362,533,000 in Q3 2024, indicating a 15.7% increase[134] Loan Originations and Performance - Loan originations reached a record $9.9 billion, a 57% increase year-over-year, with personal loans at $7.5 billion[10] - Record origination volume of $9.9 billion in Q3 2025, a 57% increase year-over-year, with personal loans at $7.5 billion, up 53%[48][49] - Personal loans origination volume increased by 53% to $7,488,879 thousand in Q3 2025 from $4,892,040 thousand in Q3 2024[58] - Home loans origination volume surged by 93% to $944,651 thousand in Q3 2025 compared to $489,767 thousand in Q3 2024[58] - The personal loan annualized charge-off rate decreased to 2.60% from 2.83% in the prior quarter, indicating improved credit performance[53] - The average loans for personal loans in Q3 2025 were $20,963,542,000 with net charge-offs of $137,342,000, resulting in a charge-off ratio of 2.60%[138] Guidance and Projections - The company raised its 2025 guidance, reflecting confidence in its growth strategy and market position[1] - Management expects to add at least 3.5 million new members in 2025, representing approximately 34% growth from 2024 levels[62] - Adjusted net revenue for 2025 is projected to be approximately $3.54 billion, which is $165 million higher than the previous guidance of $3.375 billion[62] - Adjusted EBITDA is expected to be approximately $1.035 billion, above prior guidance of $960 million, representing an EBITDA margin of 29%[62] - The company anticipates growth in tangible book value of approximately $2.5 billion for the year, significantly higher than the previous guidance of $640 million[63] Financial Ratios and Margins - Adjusted EBITDA margin for Q3 2025 was 29%, compared to 27% in Q3 2024, indicating improved operational efficiency[100] - The adjusted net income margin for Q3 2025 improved to 15%, up from 9% in Q3 2024[118] - Contribution margin for the Lending segment decreased to 53% in Q3 2025 from 60% in Q3 2024[94] - Incremental adjusted contribution margin for Lending was 25% in Q3 2025, down from 36% in Q3 2024[94] Assets and Capital - Total assets as of September 30, 2025, were $45,293,450,000, an increase from $36,250,951,000 as of December 31, 2024, representing a growth of 24.5%[120] - Cash and cash equivalents increased to $3,246,351,000 as of September 30, 2025, compared to $2,538,293,000 at the end of 2024, a rise of 28.0%[120] - Loans held for sale reached $21,587,350,000 as of September 30, 2025, up from $17,684,892,000 at the end of 2024, indicating a growth of 22.0%[120] - Total deposits increased to $32,946,399,000 as of September 30, 2025, from $25,978,204,000 at the end of 2024, reflecting a growth of 26.5%[120] - Total permanent equity rose to $7,148,565 thousand as of September 30, 2025, compared to $5,734,618 thousand in the same period of 2024, reflecting an increase of 24.7%[123]