Is SoFi Technologies Stock a Buy After Another Record Quarter?

Core Insights - SoFi Technologies' third-quarter results exceeded expectations, with shares dropping approximately 14% post-release, indicating a short-term sentiment correction rather than a fundamental issue [1] Financial Performance - SoFi reported record adjusted net revenue of $950 million, a 38% year-over-year increase, surpassing estimates by 6.6%, marking the eighth consecutive profitable quarter [2][6] - Net income reached $139 million, translating to earnings per share of 11 cents, exceeding consensus estimates by 22% [2] - Adjusted EBITDA was a record $277 million with a 29% margin, while non-lending revenues surged 57% year over year [19] Membership and Product Growth - The membership base expanded by 905,000 new members in the quarter, totaling 12.6 million [5][6] - The company reported 1.4 million new products, with 40% opened by existing members, indicating strong cross-sell capabilities [10] - Fee-based revenues reached a record $409 million, up 57% from the previous year, and are annualizing at over $1.6 billion [12] Strategic Initiatives - SoFi launched SoFi Pay for international payments via blockchain and plans to introduce a SoFi USD stablecoin in 2026 [13] - The relaunch of crypto trading features and the introduction of the AI-driven SoFi Coach are aimed at enhancing user engagement [14] - The SoFi Smart Card was unveiled, offering 5% cash back on food purchases and credit-building features [15] Marketing and Brand Awareness - A partnership with NFL MVP Josh Allen to promote SoFi Plus has increased brand awareness, which has reached an all-time high of 9.1% among U.S. consumers [16] Future Outlook - Management raised 2025 guidance across all metrics, expecting to add about 3.5 million members, adjusted net revenues of $3.54 billion, and adjusted EBITDA of $1.035 billion [21][22] - The company’s tangible book value growth is forecasted at approximately $2.5 billion, significantly above prior guidance [21] Industry Position - SoFi is positioned as a dynamic player in the digital finance sector, with a focus on innovation, brand building, and diversification across capital-light revenue streams [23][24]