SoFi Defies Credit Fears as Consumers Keep Spending

Core Insights - SoFi's Q3 earnings report indicates strong credit performance among its prime borrowers, with personal loan charge-offs decreasing to 2.60% from 2.83% in Q2 and student loan charge-offs easing to 0.69% [1][4][8] - The company reported record GAAP net revenue of $961.6 million and net income of $139 million for Q3, alongside a significant increase in membership and product offerings [10] Financial Performance - Personal loan charge-offs fell to 2.60% from 2.83% in the previous quarter, with 90-day delinquencies stable at 43 basis points; student loan charge-offs decreased to 0.69% with 90-day delinquencies at 14 basis points [1][4] - SoFi's personal loan borrowers have a weighted-average FICO score of 745, while student loan borrowers average a score of 773, indicating a strong credit profile [4] - The company achieved nearly $20 billion in annualized transactions through SoFi card and deposit spend, reflecting a 55% year-over-year increase [6] Market Position and Strategy - CEO Anthony Noto highlighted a "flight to quality" among capital markets partners, with increased commitments to buy SoFi-originated loans, suggesting confidence in the company's loan performance [6][8] - The Loan Platform Business originated $3.4 billion for third parties in Q3, and SoFi executed a $466 million securitization backed by those loans [6][8] Product Development and Future Outlook - SoFi launched several new products, including SoFi Pay, a blockchain-enabled remittance service, and plans to relaunch crypto trading, along with a SoFi-branded stablecoin expected in 2026 [9][10] - Management raised full-year 2025 guidance for adjusted revenue to $3.54 billion and adjusted EBITDA to $1 billion, indicating confidence in sustained growth [11]