SoFi Technologies Q1 Earnings & Revenues Beat Estimates, Rise Y/Y

Core Insights - SoFi Technologies (SOFI) reported strong first-quarter 2025 results, with earnings and revenues exceeding expectations, yet the stock declined by 5.7% post-release [1] Financial Performance - Quarterly earnings were six cents per share, surpassing the consensus estimate by 100% and increasing 200% year over year [1] - Revenues reached $770.7 million, exceeding the consensus by 3.8% and rising 19.5% year over year [1] - The Financial Services segment generated net revenues of $303.1 million, more than doubling year over year [2] - The Technology Platform and Lending segments reported revenues of $103.4 million and $413.4 million, reflecting increases of 10% and 25% year over year, respectively [2] Loan Platform Contribution - The Loan Platform Business contributed $96.1 million to consolidated adjusted net revenues, with $92.8 million from originating $1.6 billion in personal loans and $3.3 million from servicing cash flow [3] Margin Analysis - Adjusted EBITDA for the quarter was $210.3 million, a 46% increase from $144.4 million in the prior year, with an adjusted EBITDA margin of 27%, improving by 200 basis points year over year [4] Balance Sheet and Cash Flow - SoFi ended the quarter with cash and cash equivalents of $2.1 billion, down from $2.5 billion in the previous quarter [5] - Operating cash for the quarter was $59 million, with capital expenditures of $12.4 million and $61 million paid out in dividends [5] 2025 Guidance - For the full year 2025, SoFi expects revenues between $3.24 billion and $3.31 billion, lower than the Zacks Consensus Estimate of $3.36 billion [6] - Adjusted EBITDA is projected to range from $875 million to $895 million, above prior guidance [6] - EPS guidance for 2025 is now between 27 and 28 cents per share, exceeding previous guidance and the Zacks Consensus Estimate [6] Q2 2025 Expectations - Management anticipates adjusted net revenues of $785 million to $805 million for Q2 2025, with adjusted EBITDA forecasted at $200 million to $210 million [7] - EPS for Q2 is expected to be in the range of 5 to 6 cents per share, aligning with the higher end of the Zacks Consensus Estimate [7]