Core Insights - SoFi has demonstrated impressive growth, with fourth-quarter results for 2025 showing no signs of slowing down [1] - The company raised $1.5 billion by selling additional shares, which has led to concerns about shareholder dilution despite strong capital levels [1][4] Capital Position - SoFi has excess capital, providing safety and financial flexibility for growth [5] - After the recent stock offering, SoFi's capital ratio is 1,000 basis points above the required level, indicating a strong capital position [6] - The company's CFO stated that SoFi's capital is significantly higher than regulatory minimums and internal stress buffers, allowing for potential growth [6] Acquisition Plans - Although there is speculation about a major acquisition, the capital raise was not primarily for this purpose [6] - The CEO mentioned that the company is open to acquisitions if they are more efficient than building products from scratch, particularly in enhancing its technology platform and international expansion [6] - SoFi is interested in acquiring international fintechs that already possess necessary licenses and infrastructure [7]

SoFi app on a tablet in a café workspace, highlighting fintech on-the-go. Key Points SoFi topped expectations with EPS of 13 cents and record revenue of $1.01B, reinforcing operating momentum. Fee-based revenue and stronger cross-buy trends are scaling the model and reducing reliance on balance-sheet growth. Guidance points to continued strength, but the bar is higher now, making flawless execution more important. Interested in SoFi Technologies, Inc.? Here are five stocks we like better. SoFi Tech ...

Management said crypto products and the technology platform are becoming material growth levers alongside the core lending franchise.SoFi crossed its first $1 billion revenue quarter as platform cross-sell pushed members deeper into lending, deposits and investing.SoFi’s platform strategy was a centerpiece of fourth-quarter earnings on Friday (Jan. 30): Bring in members, persuade them to adopt multiple products, and let lending, payments and technology revenue compound.By completing this form, you agree to ...

In the fourth quarter, SoFi’s financial services and technology platform segments combined generated $579 million of revenue, up 61% year-over-year and representing 57% of total revenue, Noto said.Management repeatedly pointed to a shift toward more capital-light and fee-based revenue. Noto said quarterly total fee-based revenue hit a record $443 million, up more than 50% from the prior year; Lapointe put the year-over-year increase at 53%. Executives cited contributions from the Loan Platform Business (LPB ...

SoFi Technologies (NasdaqGS:SOFI) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Company ParticipantsAndrew Jeffrey - Partner and ResearchAnthony Noto - CEOBrian Denyeau - Head of Investor RelationsChris Lapointe - CFOJohn Hecht - Managing DirectorKyle Joseph - Managing DirectorNoah Katz - Senior Equity Research AssociatePeter Christiansen - DirectorReggie Smith - Executive Director of Equity ResearchWilliam Nance - VP of Equity ResearchConference Call ParticipantsDan Dolev - FinTech Equity Research Sen ...

Financial Data and Key Metrics Changes - In 2025, adjusted net revenue reached a record of $3.6 billion, up 38% year-over-year [32] - Adjusted EBITDA was also a record at $1.1 billion, up 58% year-over-year, with a margin of 29% [32] - Net income for the year was $481 million, representing a margin of 13% [32] - In Q4 2025, adjusted net revenue grew 37% year-over-year to $1.013 billion, marking the first billion-dollar quarter [33] - Adjusted EBITDA for Q4 was $318 million, with a margin of 31% [33] Business Line Data and Key Metrics Changes - Financial services generated record revenue of over $1.5 billion in 2025, up 88% from the prior year [34] - The lending segment achieved record adjusted net revenue of over $1.8 billion in 2025, up 24% from the prior year [38] - The tech platform generated record revenue of over $450 million in 2025 [36] - In Q4, the Loan Platform Business generated $194 million in adjusted net revenue, nearly 3x higher than the same period last year [35] Market Data and Key Metrics Changes - The company added a record 1 million new members in Q4, increasing total members by 35% year-over-year to 13.7 million [8] - The company achieved a cross-buy rate of 40% for new products opened by existing members, up 7 percentage points year-over-year [9] - Brand awareness reached an all-time high of 9.6%, up 250 basis points from Q4 2024 [16] Company Strategy and Development Direction - The company aims to leverage its one-stop-shop model to drive durable growth and innovation across its product offerings [5][13] - Plans to expand into new areas such as crypto, AI, and business banking, capitalizing on a strong balance sheet and member base [7][17] - The company is focused on enhancing product quality and brand awareness to drive customer acquisition and reduce marketing costs [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects, citing a strong member base and innovative product offerings [13] - The company expects to increase total members by at least 30% year-over-year in 2026, with adjusted net revenue projected at approximately $4.655 billion [49] - The outlook includes expectations for continued strong revenue growth across all segments, with a focus on capital-light, fee-based revenue [54][55] Other Important Information - The company raised $1.5 billion in new capital in Q4, enhancing its funding base and flexibility for growth opportunities [46] - Tangible book value grew by over $4 billion year-over-year to $8.9 billion, with tangible book value per share increasing by 57% [48] Q&A Session Summary Question: Can you break down the consolidated guidance at the segment level? - Management expects revenue growth of 40% or more for financial services, approximately 23% for lending, and about 20% for the tech platform in 2026 [54] Question: Can you elaborate on the acceleration in KPI growth and its sustainability? - Management noted that unaided brand awareness has increased significantly, and they are confident in reaching higher levels of awareness and product quality to drive growth [58][60] Question: How do you view origination allocation between LPB and other segments? - Management indicated that demand remains robust, and they have flexibility to choose between capital-light fee-based revenue and retaining higher returning assets on the balance sheet [64][66] Question: Can you provide insights on deposit growth and recent downward beta? - Management confirmed that deposit growth is primarily from member deposits, with a consistent downward beta of 60%-70% since launching the bank [70][73] Question: Do you think innovation in fintech could spur more interest from platform customers? - Management expressed optimism that new products like crypto and stablecoin could enhance interest and demand from tech platform customers [75]

SoFi Technologies (NasdaqGS:SOFI) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Speaker5Good morning or good afternoon, all. My name is Adam, and I'll be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this tim ...

Core Insights - SoFi Technologies (SOFI) and OppFi Inc. (OPFI) are both players in the fintech lending sector, with SOFI focusing on prime and near-prime borrowers while OPFI targets subprime borrowers [1] Group 1: SoFi Technologies (SOFI) - SoFi continues to innovate, recently launching SoFi Pay for low-cost international payments and a USD stablecoin, indicating a push towards blockchain integration in financial services [2] - The relaunch of SoFi's crypto trading platform aligns with increased investor interest in cryptocurrencies, while the introduction of SoFi Coach aims to provide personalized financial insights [3] - The SoFi Smart Card offers cash-back rewards and credit-building tools, enhancing customer engagement and brand loyalty [4] - Marketing partnerships, such as with NFL MVP Josh Allen, are increasing SoFi's brand visibility among younger consumers [5] - The acquisition of Galileo Financial Technologies has strengthened SoFi's fintech infrastructure, enabling better payment processing and AI-driven engagement tools [6][7] - The integration of Galileo's technology with SoFi's products enhances operational efficiency and innovation, creating a structural advantage [8] Group 2: OppFi Inc. (OPFI) - OppFi's financial performance is driven by its AI and machine-learning-based underwriting engine, Model 6, which has led to significant profitability growth [9] - In Q3 2025, OppFi reported a 136.9% year-over-year increase in net income, while revenues grew by 13.5%, highlighting the efficiency of its business model [10] - The company's auto-approval rate reached 79.1%, improving operational efficiency and leading to a 79% growth in adjusted EPS [11] - OppFi's Model 6.1 upgrade aims to enhance risk pricing precision, with early results showing a decline in net charge-offs [12] - The Loan Origination Lending Application (LOLA) is expected to further improve scalability and operational efficiency, with testing underway [13][14] - OppFi's disciplined credit assessment combined with rising automation positions it well for profitability in a volatile lending environment [15] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for SOFI indicates a 36.8% growth in sales and a 146.7% increase in EPS for 2025 [16] - SOFI's current quarter sales estimate is $981.89 million, with a year-over-year growth estimate of 32.85% [17] - The Zacks Consensus Estimate for OPFI shows a 13.6% increase in sales and a 65.3% rise in EPS for 2025 [19] - OPFI's current quarter sales estimate is $159.75 million, with a year-over-year growth estimate of 17.71% [20] - OPFI is trading at a forward P/E ratio of 5.78X, significantly lower than SOFI's 41.91X, indicating that OPFI appears cheaper [22] Group 4: Comparative Analysis - SoFi is viewed as the more compelling investment due to its diversified, platform-driven model that supports balanced growth across cycles [23] - OppFi's efficiency gains are notable, but its business is more closely tied to subprime credit conditions, which may increase risk during economic stress [23]

Core Insights - SoFi Technologies, Inc. (SOFI) shares have increased by 40% over the past six months, significantly outperforming an industry that has declined by 12% during the same period [1][8]. Group 1: Product Innovation and Strategic Expansion - SoFi's management emphasizes innovation, introducing SoFi Pay for fast, low-cost international payments via blockchain technology, and launching a USD stablecoin to integrate blockchain into mainstream finance [3]. - The relaunch of SoFi's crypto trading platform allows users to manage digital assets directly within the app, aligning with renewed interest in cryptocurrencies [4]. - The introduction of the SoFi Smart Card offers cash-back rewards and credit-building tools, enhancing customer engagement and brand loyalty [5]. - Marketing partnerships, such as collaboration with NFL MVP Josh Allen to promote SoFi Plus, are increasing brand visibility among younger consumers [6]. Group 2: Fintech Integration and Growth Path - The acquisition of Galileo Financial Technologies has strengthened SoFi's fintech infrastructure, powering essential components like payment processing and AI-driven engagement tools [9]. - Operating under a single corporate umbrella allows for deep integration between SoFi's products and Galileo's technology, improving operational efficiency and innovation [10]. - This relationship creates a feedback loop where Galileo benefits from SoFi's scale, enhancing its offerings for external clients and positioning SoFi as a vertically integrated fintech platform [11]. Group 3: Analyst Projections and Financial Performance - The Zacks Consensus Estimate projects a fourth-quarter 2025 EPS of $0.12, indicating a 140% year-over-year increase, with earnings expected to grow 147% in 2025 and 61% in 2026 [12][15]. - Revenue growth estimates suggest a 32% increase in the fourth quarter and full-year growth of 37% in 2025 and 26% in 2026, reflecting confidence in SoFi's diversified business model [13][14]. Group 4: Valuation Concerns - SoFi currently trades at a forward P/E of 45.77, more than double the industry average of 22.93, indicating that the market is pricing in aggressive growth expectations [16]. - This elevated valuation leaves limited room for error, as any slowdown in growth or market volatility could trigger a pullback [17]. Group 5: Competitive Landscape - SoFi faces intense competition from established banking institutions like JPMorgan and Bank of America, which are rapidly expanding their digital capabilities [18][19]. - Competing with these legacy giants will be a significant test of SoFi's long-term resilience as it scales its operations [19].

Core Viewpoint - SoFi's stock experienced a decline of over 6% following the announcement of a $1.5 billion capital raise, which was unexpected given the company's current financial position and capital requirements [1] Group 1: Capital Raise Details - The recent capital raise is not the first for SoFi this year, as the company previously raised $1.7 billion in July, which helped reduce higher-cost debt by $1.2 billion and strengthened its balance sheet [4] - SoFi's announcement regarding the use of funds was vague, stating they would be for "general corporate purposes," which raises questions about the specific intentions behind the capital raise [1] Group 2: Market Reaction - Stock sales typically lead to dilution, and it is common for shares to fall after such offerings; SoFi priced its shares at $27.50, below the trading price at the time, contributing to the stock's decline [2] Group 3: Growth Opportunities - SoFi has several growth avenues, including a recently relaunched cryptocurrency trading business and plans to integrate SoFi Pay with a forthcoming stablecoin, indicating a focus on expanding its service offerings [5] - The company is positioned to grow by capturing market share from traditional banks, which often lack the agility of fintech companies [5] Group 4: Capital Efficiency - The company has demonstrated discipline in its capital raises, suggesting that the efficiency of capital deployment will be crucial in determining the success of this new round of funding [6]