SoFi revenue jumps 40% to $1.2B as cross-buy hits 51% inflection

SoFi Technologies (NASDAQ: SOFI) reported Q2 adjusted net revenue of $1.2 billion, up 40 percent year over year and beating consensus by $90 million.

"Q2 was our 19th consecutive quarter exceeding the rule of 40 with a score of 70," Anthony Noto, chief executive officer at SoFi Technologies, said.

Adjusted EPS came in at $0.12, topping the $0.11 consensus estimate. Adjusted EBITDA rose 44 percent to $358 million at a 30 percent margin. The company added a record 1.1 million members, bringing total membership to 15.8 million, up 35 percent year over year. Total products grew 42 percent to 24.4 million, with 51 percent of new products opened by existing members, up from 35 percent a year ago.

SoFi raised full-year revenue guidance to $4.75-$4.85 billion, implying 32-35 percent growth, while holding EBITDA guidance at approximately $1.6 billion. Shares fell 5.86 percent in premarket trading to $15.76 as investors weighed the decision to reinvest incremental revenue rather than expand profitability.

Metric	Actual	Consensus	Beat/Miss
Revenue	$1.2B	$1.11B	+8.1%
EPS	$0.12	$0.11	+$0.01
Members added	1.1M	—	Record

Lending revenue jumped 59 percent to $712 million on record originations of $14.8 billion, including $10.7 billion in personal loans, $2.7 billion in student loans, and $1.4 billion in home loans. Financial Services revenue rose 29 percent to $466 million, driven by record interchange fees up 67 percent year over year and brokerage fees that more than doubled. The Technology Platform segment generated $85 million, up 13 percent sequentially.

The Loan Platform Business contributed $143 million in revenue, originating $3.1 billion in personal loans for third-party investors. SoFi expanded the platform to include small-business loans with a three-year, $3 billion agreement from BasePoint Capital, and Sixth Street committed up to $1 billion for personal loans. Home equity lines of credit will begin transferring to a leading global bank in the coming days.

The relaunched SoFi Plus membership tier surpassed 200,000 paid subscribers in its first quarter, generating $24 million in annualized revenue. SoFi Coach, the AI-powered financial guidance tool launched in June, has logged nearly 500,000 conversations with over 90 percent positive feedback.

Personal loan net charge-offs improved to 3.7 percent, down 70 basis points sequentially. Tangible book value per share climbed 56 percent to $7.34. The company's total capital ratio stood at 18.8 percent, well above the 10.5 percent regulatory minimum.

CFO Chris Lapointe said the company is choosing to invest in growth rather than maximize near-term profit. "There are just too many large attractive growth areas for us to invest versus adding even more profitability," he said.

The raised guidance shows management expects demand to remain strong across lending and financial services. Investors will watch whether SoFi Plus subscriber growth reaches the one million target Noto set for the next year, and how the company balances reinvestment against expanding margins toward its 20-30 percent return on tangible common equity target.

This article is for informational purposes only and does not constitute investment advice.