What SoFi Technology's Latest Earnings Mean for Long-Term Investors

Core Insights - SoFi Technologies has shown significant growth, with shares up 54% in 2025, indicating strong investor confidence [1][2] - The company reported a 43% increase in revenue to $855 million for the three months ending June 30, driven by a substantial increase in its customer base [4][6] Financial Performance - SoFi added 846,000 net new members, totaling over 11.7 million, a 34% year-over-year increase [4] - The financial services segment saw revenue more than double, highlighting the company's innovative approach [5] - Loan originations reached a record $8.8 billion, a 64% year-over-year increase, with personal loans rising 66% [7] Risk Management - The net charge-off rate for personal loans decreased to 2.83%, the lowest in at least 10 quarters, indicating effective risk management [8] - SoFi targets an affluent customer base, with an average FICO score of 743 and an average yearly income of $161,000, providing a financial safety cushion [9] Profitability - SoFi has achieved seven consecutive quarters of positive net income, with diluted earnings per share (EPS) of $0.08, up from $0.01 in Q2 2024 [10] - Analysts estimate SoFi's EPS will grow at a compound annual rate of 23.2% from 2024 to 2027, suggesting strong future profitability [11]