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SoFi Technologies Q3 2025 Earnings Conference Call

Key Takeaways (AI-Generated)

Financial Performance

- Record adjusted net revenue of $950 million, up 38% year over year

- Recorded an adjusted EBITDA of $277 million, representing a nearly 50% increase year over year, with a 29% margin

- Net income reached $139 million at a 14% margin, with earnings per share of $0.11

- The financial services and technology platform segments generated $534 million in revenue, marking a 57% year-over-year increase

Business Highlights

- Added a record 905,000 new members in Q3, bringing the total number of members to 12.6 million (a 35% year-over-year growth)

- The cross-buy rate reached its highest level since 2022, with 40% of new products opened by existing members

- Launched SoFi Pay for international money transfers utilizing blockchain technology

- Relaunching crypto buy/sell/hold capabilities with dozens of tokens

Financial Guidance

- Raised full-year 2025 guidance: expecting to add approximately 3.5 million members (representing 34% growth)

- Adjusted net revenue guidance increased to approximately $3.54 billion (36% growth)

- Adjusted EBITDA guidance raised to approximately $1.035 billion (29% margin)

- Q4 adjusted EPS forecasted at approximately $0.12

Opportunities

- Plans for market expansion of SoFi Pay into Europe and South America with a native app

- Launch of the SoFi USD stablecoin in 2026 backed by unique Fed reserves

- Strategic partnerships, including collaborations with Southwest Airlines and two major consumer brands

- Implementation of AI across operations to enhance member service and support efficiency

Full Transcript (AI-Generated)

Operator

Speakers remarks, there will be a question and answer session. If you would like to ask questions during this time, simply press * followed by the number one on your telephone keypad. If you would like to withdraw your question, please press * followed by two. Thank you. With that, you may begin your conference.

Company Representative

Thank you and good morning. Welcome to SoFi Technologies' third quarter 2025 earnings conference call. Joining me today to discuss our results and recent developments are Anthony Noto, CEO, and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release in the Investor Relations section of our website.

Unless otherwise stated, we will be referring to adjusted results for the third quarter of 2025 versus the third quarter of 2024. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, discussions regarding our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services, and future business and financial performance.

Our GAAP consolidated income statement and all reconciliations can be found in today’s earnings release and in a subsequent Form 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today’s press release and in subsequent filings made with the SEC, including our upcoming Form 10-Q.

Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events. And now, I’d like to turn the call over to Anthony.

Anthony Noto

Thank you, and good morning, everyone. We had an excellent third quarter. Our one-stop-shop strategy is firing on all cylinders as we continue to deliver exceptional financial performance while also investing in our business to drive durable growth and strong returns over the long term. In fact, our focus on product innovation and brand building has never been stronger.

There’s more happening at SoFi Technologies today than at any other time in my eight years with the company. We are stepping on the gas to accelerate investment in our existing business and entering new areas such as crypto and blockchain, AI, SoFi Pay, providing fiat and crypto banking services, and much more. I will discuss some of these efforts momentarily, but first, let me cover key results for the quarter, starting with the drivers of our durable growth.

We added a record 905,000 new members in Q3, increasing total members by 35% year-over-year, a slight acceleration to 12.6 million SoFi members. We also added a record 1.4 million new products, representing an accelerated growth rate of 36% year-over-year, totaling over 18.6 million products. Cross-buy reached its highest level since 2022, with 40% of new products opened by existing SoFi members.

Our cross-buy rate has increased in each of the past four quarters, demonstrating the effectiveness of our one-stop-shop strategy. Strong member and product growth drove our revenue growth in the third quarter. Adjusted net revenue reached a record $950 million, up 38% year-over-year. Together, our financial services and technology new platform segments generated revenue of $534 million, representing a 57% increase year-over-year and now accounting for 56% of total revenue.

This marks the first time these segments have generated over half a billion dollars in quarterly revenue. In our lending segment, adjusted net revenue grew 23% year-over-year to $481 million, driven by strong originations totaling $6.6 billion, up 23% from the prior year, alongside robust originations of $3.4 billion. In the loan platform business, total originations reached a record $9.9 billion for the third quarter.

This represents an increase of $1.2 billion from our previous record. I am also pleased to report that total fee-based revenue across our business reached a quarterly record of $409 million, up 50% from the prior year, fueled by strong performance in our loan platform business, origination fees, referral fees, interchange revenue, and brokerage fee revenue. On an annualized basis, we are now generating over $1.6 billion in fee-based revenue, reflecting the deliberate diversification of our business toward more capital-efficient revenue streams.

In addition to delivering sustainable growth, we achieved strong returns and profitability in the third quarter. Adjusted EBITDA reached a record $277 million, up nearly 50% year-over-year. Our adjusted EBITDA margin for the quarter was 29%. Our incremental EBITDA margin was 35% as we continue to balance reinvesting in the business to drive long-term growth while delivering profitability.

Net income for the quarter was $139 million, with a margin of 14%. Earnings per share were $0.11. Finally, our tangible book value ended the quarter at $7.2 billion, which includes the benefit from a successful opportunistic capital raise during the quarter. Over the past two years, we have more than doubled our tangible book value.

Our diversified business is uniquely positioned to deliver a winning combination of growth and returns. One way to measure success is through the Rule of 40 calculation, which adds revenue growth and EBITDA margin. We have exceeded the Rule of 40 benchmark every quarter since going public—seventeen consecutive quarters. Over this period, our average Rule of 40 score has been 58, making us a top performer among fintechs and technology companies more broadly.

This quarter, we achieved a score of 67%. Despite these exceptionally strong results, I know that we are just getting started. The addressable markets for each of our products are massive in the United States alone, let alone when considering international markets. By 2026 and beyond, we will uniquely benefit from both major technology supercycles—AI and blockchain—whereas almost every other industry benefits from only one.

With nearly 13 million members, unmatched technological capabilities, and a business scale featuring $3.8 billion in annualized revenue and a $45 billion balance sheet, we have a rock-solid foundation to build upon. Given these dynamics, I have never been more optimistic about our prospects than I am today. This is why we are further accelerating our level of investment to enhance our existing products by providing the best speed and selection experience, developing new products to help our members achieve financial wellness, and strengthening our trusted brand name.

Our investments will power durable growth and drive stronger returns as we continue to scale. Let me take a moment to discuss our brand-building efforts, which are key to attracting new members to SoFi Technologies and creating a halo effect across our entire offering. During the third quarter, we launched an exciting new partnership with the NFL's Most Valuable Player, Josh Allen, who endorsed our most valuable product and financial service: SoFi Plus.

Our partnership with Josh is resonating with NFL fans, driving a 35% increase in unaided brand awareness among this target audience. Alongside our broader marketing efforts, we pushed unaided brand awareness to an all-time high of 9.1% during the quarter, up from last quarter’s record of 8.5% and more than four times higher than when we went public.

Turning now to our product innovation. Last quarter, I discussed how we are at an unprecedented point in time with two technology supercycles occurring simultaneously in crypto, blockchain, and AI. These supercycles have the potential to completely reinvent the future of financial services, and we have acted swiftly to seize these opportunities. I am pleased to report that this week we launched our first payment product that utilizes blockchain technology to facilitate fast, seamless, low-cost, and secure international payments with the introduction of SoFi Pay.

SoFi Pay enables members to effortlessly send money in local fiat currency abroad by leveraging a Layer 2 blockchain network and delivering local fiat into the recipient's account. It is fully automated within the SoFi app, offering significantly faster speeds and lower costs compared to traditional services. Initially, members will be able to send money to Mexico, with planned phased rollouts in Europe and South America in the near future.

While SoFi Pay will eventually integrate the SoFi USD stablecoin, which is expected to launch in 2026, we also plan to offer the SoFi Pay app natively in international markets, allowing foreign citizens to send money to the US and many other international markets. This is another addition to our comprehensive money movement offerings, enabling members to seamlessly transfer funds through person-to-person payments using a phone number or email address, as well as via Zelle, ACH, self-serve wires, and now the ability to send money internationally with SoFi Pay.

I am also excited to share that this quarter, we will be relaunching the ability to buy, sell, and hold crypto assets, giving members access to dozens of tokens directly within our SoFi app. Beyond offering the best selection, we will also provide unmatched speed and convenience. Members can instantly fund cryptocurrency purchases from their FDIC-insured SoFi Money account, all within the integrated SoFi app.

Members will also have the ability to transfer crypto assets to SoFi and benefit from our broad range of products seamlessly integrated with SoFi North American Bank. And because many of our members may be new to crypto investing, we will support them with high-quality content to help them understand crypto investing and provide them with the peace of mind that comes from working with a regulated bank.

But this is just the beginning of our ambitious crypto and blockchain product roadmap, which will continue to unfold throughout 2026. I could not be more excited about the product roadmap and the multitude of use cases we have for our planned stablecoin, SoFi USD, and our ability to differentiate a stablecoin like no other company given our unique bank license, technological capabilities, portfolio products, and technology platform services.

Turning now to the other supercycle, AI. We continue to test and implement various AI applications across our business. Behind the scenes, AI technology has been instrumental in streamlining our operations to better serve our members. This includes using AI to enhance engagement quality and providing our frontline member service teams with AI-driven tools to identify and resolve member issues more quickly.

AI is now also being used to directly support members. Our AI-powered support chat helps members resolve queries efficiently, driving a noticeable impact on member satisfaction. It is currently integrated with our money and card products and will be rolled out across the entire SoFi platform. This quarter, we have also introduced AI-driven cash codes to qualifying members.

Here’s how it works: From the home screen, members see a button labeled 'Cash to Optimize.' By tapping that button, the Cash Coach will analyze both their SoFi and external accounts to identify suboptimal cash utilization and provide personalized financial suggestions. For instance, if a member is earning just two basis points of interest on deposits with a large bank, it may suggest moving that cash to a SoFi account earning 3.8% or paying down a credit card balance from a large bank with a 25% interest rate.

The Cash Coach is just the beginning. Next year, we will launch a more comprehensive SoFi Coach that incorporates insights across all areas of financial activity—not just cash—helping members understand how to spend less, earn more, and invest the rest. This tool will break down what they must do, what they should do, and what they can do every day across their entire financial lives.

For instance, they could ask the SoFi Coach questions such as how their credit score has changed, how they can reduce their debt costs, how much they spend on subscriptions, how diversified their portfolio is, or how their investment performance compares to peers of the same age. Over time, SoFi Coach will be able to offer even more capabilities, such as providing investment and lending options, assisting with setting up and tracking goals, and simplifying processes like canceling subscriptions and optimizing reward points.

We are thrilled about how this AI-driven tool will help engage members and assist them in spending less than they earn so they can invest the remainder. Ultimately, SoFi Coach will significantly enhance our financial services productivity loop, fostering deeper relationships that drive higher lifetime value. Turning now to product innovation within our segments, starting with the financial services segment and the loan platform business.

The Loan Platform Business (LPB) has been a game-changer for SoFi, diversifying our lending activities in a capital-efficient, low-risk manner. It exemplifies how we leverage our unique technology, customer acquisition, and operational capabilities to build a differentiated platform at scale. During the third quarter, we originated $3.4 billion in loans through our loan platform business, an increase of over $900 million from the previous quarter.

On an annualized basis, after just one year, this business is now operating at a pace of over $13 billion in originations and generating $660 million in high-margin, high-return fee-based revenue. Importantly, we continue to expand the near-term loan platform business volume outside our traditional credit box, effectively monetizing more of the approximately $100 billion in loan applications we were previously unable to fulfill each year.

Looking ahead, the opportunity for this business remains substantial, and demand from our partners continues to grow. Recently, amid emerging concerns in the private credit markets, we have actually seen our LPB partners increase their engagement with SoFi rather than reduce it, reflecting a flight to quality and resilience through interest rate and economic cycles. Over the past eight years, we have worked diligently to develop unique expertise in underwriting, marketing, pricing, insights, and data, and as a result, we are benefiting from this flight to quality.

Turning to Invest, earlier this month we launched Level One Options, a feature that has been consistently requested by our members. Options provide another avenue for us to grant access to opportunities our members might not otherwise have, enabling them to build portfolios aligned with their financial goals. As part of this rollout, we also provided educational resources explaining how options work, the associated risks, and how to integrate them responsibly into a diversified investment strategy.

Beyond options, we are also expanding our unmatched offerings. In the third quarter, we provided access to IPOs such as StubHub, Klarna, and Figma, and launched the SoFi Agentic AI ETF. During the quarter, we also enhanced our features to make our Invest products more intuitive and engaging. For example, we introduced 24/7 instant transfers between Invest and Money, and embedded rollovers with an enhanced rollover tracker, giving members full visibility and control over their 401(k) rollover process.

In the fourth quarter, we will implement several additional enhancements. We are very excited about the progress made in building an investment platform that provides our members with far more options than they would typically have access to. Turning now to SoFi Money, which has been a core component of our financial services productivity loop. Three years after acquiring our banking license, we now have 6.3 million products and $33 billion in deposits.

Our attractive APY serves as a compelling reason for members to designate us as their primary financial institution. However, members also choose us for our best-in-class products and continuous innovation. For example, we will soon launch the SoFi Smart Card, a new card that combines the best features to help our members spend, save, and pay more effectively. It will be part of our SoFi Plus offering and serve as a platform for ongoing innovation.

The card will offer 5% cashback on food, our highest interest rate on deposits, credit and biller capabilities, borrowing options, and much more. This is yet another way we are pushing the boundaries of what is possible with banking products. Turning now to our lending segment. Lending represents SoFi’s longest-standing core capability and is how our business initially began.

Since that time, we have made significant progress in strengthening both our member acquisition and underwriting capabilities. For loans that we hold on our balance sheet, we focus exclusively on high prime and super prime borrowers with strong cash flow and FICO scores. In fact, the average FICO score of our personal loan borrower is 745, and that of our student loan borrower is 773.

But we don't stop at credit scores. We use proven underwriting techniques to assess each borrower's cash flow and their ability to repay the loan. We are able to do this effectively at scale because we leverage an innovative origination platform that utilizes advanced technology and digitally enabled processes. The result is excellent credit performance that continues today.

In fact, during the third quarter, we saw our net charge-off rates improve even as there have been moderate signs of stress showing up for some other companies. For both personal loans and student loans, net charge-offs decreased by more than 20 basis points in the third quarter. We also have a strong track record of building great lending products that help our members create a better future.

For example, our innovative personal loan product allows members to refinance exorbitantly expensive credit card debt held at other institutions, saving them hard-earned money. No longer will high achievers be misled into chasing rewards only to realize they are paying over 20% interest on unpaid principal balances while earning essentially no interest on deposits in the same bank account.

We've recently made this product even more attractive to our members by introducing an interest-only period to raise awareness of the personal loan product and help ease the transition from making credit card payments to making personal loan payments. Similarly, in student lending, we have completely transformed the landscape, becoming the leading company for refinancing student debt at more affordable rates.

Our student loan refinance product can reduce some members' interest rates by several hundred basis points, which will have a meaningful impact on a $40,000 loan balance. In fact, we estimate that we will save our members over $100 million in interest expenses just on the student loans we refinance during the third quarter. This is why we've made our product even more attractive by rolling out a feature that allows for a gradual step-up in payments to help members find their footing.

We look forward to helping even more members refinance their student loans as interest rates decline in the future. Turning now to home lending, where we are seeing very strong results. Amid the higher-rate environment, we built and launched a home equity loan product to help members take advantage of the equity they have accumulated in their homes, particularly over the last few years.

In the third quarter, just one year after launch, we originated over $350 million in home equity loans, helping us set a record of $945 million in originations for all of home lending. In fact, Q4 will likely be the first quarter where we generate more revenue from home loans than from student loan refinancing, which was our first product and largest product prior to COVID.

At the same time, we are preparing for lower rates to further accelerate our home loans business in 2026. We have not only strengthened our operations but also enhanced our product offerings to make them very attractive to our estimated 3,000,000 members who currently have mortgages elsewhere and to those who may be first-time home buyers. We believe our offering will drive strong growth as the market opens up.

Turning to our Tech Platform segment, this business has been instrumental in our ability to innovate across the SoFi platform and is now enabling a broader range of companies to bring innovative programs that drive greater loyalty and engagement to their customers. In fact, today we are incredibly excited to announce our newest partnership with one of the largest airlines in North America, Southwest Airlines, to power their Rapid Rewards debit card, which combines the convenience of debit payments while earning points on everyday purchases.

We have also secured partnerships with two major consumer brands, our largest collaborations to date, which will be formally announced in due course. These alliances underscore the robust and increasing demand for our market-leading technology to support embedded financial products at scale for some of the most prominent global brands. As demonstrated, it was a highly eventful third quarter at SO5, and we remain as motivated as ever as we conclude the year and move into 2026.

With that, let me now turn the call over to Chris.

Chris Lapointe

Thank you, Anthony. We have delivered another strong quarter as we continue to drive sustainable growth and robust returns, on track to achieve record revenue and our eighth consecutive profitable quarter. For the quarter, revenue increased by 38% year-over-year to a record $950 million. Adjusted EBITDA also reached a record high of $277 million, reflecting a margin of 29%.

Net income amounted to $139 million, with a margin of 14%, and earnings per share were 11 cents. Similar to the previous two quarters, this included a modest benefit related to a lower tax rate. A key driver of our growth was the enhanced contribution from capital-light, non-lending activities, as well as fee-based revenue streams. Our non-lending businesses generated $534 million in revenue, marking a 57% year-over-year increase, and we also achieved record fee-based revenue across all segments totaling $409 million, up 50% year-over-year.

Turning now to our segment performance within financial services. In the third quarter, net revenue reached $420 million, representing a 76% year-over-year increase. Contribution profit was $226 million, growing nearly 2.3 times compared to last year. The contribution margin stood at 54%, up from 42% last year. Net interest income for this segment was $204 million, a 32% year-over-year increase, primarily driven by growth in member deposits.

Non-interest income surged nearly 2.6 times to $216 million for the quarter, equivalent to over $860 million in high-quality fee-based income on an annualized basis. Notably, improved monetization continues to make a substantial contribution to revenue growth. Financial services revenue per product exceeded $100 for the first time, reaching a record $104 in the third quarter. This reflects a year-over-year increase of over 28%, with continued upside potential as newer products mature.

In Q3, our loan platform business generated $168 million in adjusted net revenue, up 29% from just the previous quarter. Of this, $165 million was driven by $3.4 billion in personal loans originated on behalf of third parties as well as referrals. Additionally, LPB generated $3 million from servicing cash flows, recorded under our lending segment. The growth prospects for this business remain exceptionally strong.

Beyond our LPB revenue, we continue to observe healthy growth in interchange, up 55% year-over-year, fueled by nearly $20 billion in total annualized spending during the quarter across money and credit card transactions. Shifting focus to our tech platform, in the third quarter, we reported net revenue of $115 million, a 12% year-over-year increase. Contribution profit was $32 million, with a contribution margin of 28%. Revenue growth was propelled by ongoing monetization of existing clients, along with new deals signed in emerging client segments.

Turning now to our lending segment. In the third quarter, adjusted net revenue was $481 million, a 23% increase from the same period last year. Contribution profit was $262 million, with a contribution margin of 54%. These strong results were primarily driven by growth in net interest income, which rose 35% year-over-year to $428 million.

During the quarter, we achieved record total loan originations of $9.9 billion, representing a 57% year-over-year increase. Personal loan originations reached a record $7.5 billion, of which $3.4 billion was originated on behalf of third parties through LPB. Overall, personal loan originations were up 53% year over year. Student loan originations amounted to $1.5 billion, a 58% increase from the same period last year, and home loan originations hit a record $945 million, nearly doubling year over year.

Capital markets activity remained very robust in the third quarter. We sold and transferred a record $4.6 billion worth of personal, home, and student loans through our loan platform business. Regarding personal loans, we completed $175 million in whole loan sales with a blended execution of 6.4%. All transactions followed structures similar to other recent personal loan sales, with cash proceeds at or near par, and the majority of the premium consisting of capitalized contractual servicing fees.

These sales included a minor loss-sharing provision exceeding our baseline loss assumptions but were immaterial relative to the exposure we would have retained had we kept the loans. Additionally, we sold $90 million worth of late-stage delinquent personal loans. By selling these loans, we generated incremental positive value over time compared to selling after charge-offs, benefiting from enhanced recovery capabilities and by maintaining servicing rights.

In terms of home loan sales, we closed $585 million at a blended execution rate of 2.9%, while for student loan sales, we closed $377 million at a blended execution rate of 5.9%. In addition to our loan sales, we executed a $466 million securitization of loans originated through our loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investments in the loan platform business.

The transaction priced at industry-leading cost of funds levels, with a weighted average spread of 98 basis points. Turning to credit performance, the financial health of our consumers remains strong, and our credit metrics continue to improve. Our personal loan borrowers have a weighted average income of $157,000 and a weighted average FICO score of 745, while our student loan borrowers also have a weighted average income of $157,000 and a weighted average FICO score of 773.

For personal loans, the annualized charge-off rate decreased by more than 20 basis points to 2.6% from 2.83% in the prior quarter. Excluding the impact of late-stage delinquency sales, we estimate that including recoveries between 90 and 120 days delinquent, the all-in annualized net charge-off rate for personal loans would have been approximately 4.2%, compared to 4.5% last quarter. The on-balance-sheet 90-day delinquency rate remained consistent with the prior quarter at 43 basis points.

For student loans, the annualized charge-off rate also declined by more than 20 basis points to 69 basis points from 94 basis points in the previous quarter. The on-balance-sheet 90-day delinquency rate remained steady at 14 basis points, consistent with the prior quarter. The data continues to support our 7-8% net cumulative loss assumption for personal loans, which aligns with our underwriting tolerance, although we continue to trend below these levels.

Our recent vintages originated from Q4 2022 to Q4 2024 have net cumulative losses of 4.4%, with 39% of unpaid principal balance remaining. This is significantly lower than the 6.08% observed at the same point in time for the 2017 vintage, the last cohort that approached our 7-8% tolerance. The gap between the newer cohort curve and the 2017 cohort widened favorably by an additional 29 basis points, following a 19-basis-point improvement in Q2.

Additionally, examining our Q1 2020 through Q2 2025 originations, 60% of principal has already been repaid, with net cumulative losses standing at 6.7%. Therefore, for life-of-loan losses on this entire cohort to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This would exceed historical levels, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions, as a reminder, we mark our loans at fair value each quarter, considering various factors such as the weighted average coupon, the constant default rate, the conditional prepayment rate, and the discount rate. Based on benchmark rates and spreads at the end of the third quarter, our personal loans were marked at 105.7%, consistent with the prior quarter.

This was primarily a function of a lower benchmark rate, which was mostly offset by higher prepayments and a modest change to the weighted average coupon, as well as a modest change to the annual default rate, which was driven by loan vintage seasoning rather than changes to individual loan loss assumptions. At the end of the third quarter, our student loans were also marked at 5.7%, down 9 basis points from the prior quarter.

This was a function of a modest decrease in the weighted average coupon, partially offset by a lower benchmark rate. Turning to our balance sheet, in July, we raised $1.7 billion of new capital in the form of common equity. This opportunistic raise significantly increased our capital levels and allowed us to reduce our higher-cost debt by $1.2 billion, making our balance sheet even stronger and providing us with greater flexibility to pursue growth opportunities.

In the third quarter, including this new capital, total assets grew by $4.2 billion. This growth was driven by $2.7 billion in loan expansion and approximately $1.2 billion in growth in cash, cash equivalents, and investment securities. Total company-wide cash at the end of the quarter amounted to $3.7 billion. On the liability side, total deposits increased by $3.4 billion to $32.9 billion, primarily due to growth in member deposits.

The net interest margin for the quarter was 5.84%, a decrease of 2 basis points sequentially. This included a 7-basis-point decline in average yields, reflecting a modest shift in mix from personal loans to home and student loans, and a 3-basis-point increase in the cost of funds, which was largely offset by strong growth in interest-earning assets. We continue to anticipate healthy net interest margins above 5% for the foreseeable future.

Regarding our regulatory capital ratios, we remain very well capitalized. Our total capital ratio of 20.2% at quarter-end is well above the regulatory minimum of 10.5%, as well as our additional internal stress buffer. Tangible book value increased sequentially by $1.9 billion to $7.2 billion, including the benefit from the new capital raised. Intangible book value per share at quarter-end stood at $5.97, up from $4.08 a year ago, representing a 46% increase.

Let me conclude by providing our revised outlook for 2025 as we head into the fourth quarter. For the full year 2025, we now expect to add approximately 3.5 million members, representing roughly 34% year-over-year growth, exceeding our prior guidance of 3 million members and 30% growth. We now anticipate adjusted net revenue of approximately $3.54 billion, surpassing our previous guidance of $3.375 billion.

This equates to year-over-year growth of approximately 36%, an increase from our prior guidance of 30%. We now expect Adjusted EBITDA of approximately $1.035 billion, above our prior guidance of $960 million, representing a 29% margin. We now forecast adjusted net income of approximately $455 million, surpassing our prior guidance of $370 million, and adjusted earnings per share (EPS) of approximately $0.37, above our previous guidance of $0.31.

This translates to fourth-quarter adjusted EPS of approximately $0.12, assuming a Q4 tax rate of approximately 10%. We now project growth in tangible book value of approximately $2.5 billion for the year, exceeding our prior guidance of around $640 million. We have had an excellent year thus far and look forward to finishing on a strong note. Let’s now proceed to the Q&A session.

Operator

At this time, we would like to remind everyone that to ask a question, press * followed by the number 1 on your telephone keypad. Please note that we will only take one question per person at a time. To ask additional questions, please rejoin the queue. Our final question comes from the line of Dan Dolev at Mizuho. Dan, please go ahead; your line is open.

Dan Dolev

Hey, Chris Anthony, amazing job. Very, very proud of you guys. Wanted to know, I mean, the question we're getting from investors for the past like month or so is consumer credit. I mean, you guys have done incredibly well looking at delinquencies coming down. But can you give us an overview of, you know, what's going on? Maybe there's a FICO sort of differentiated thing here that helps so far. Just maybe an overall view of like how the health of the consumer credit across the different FICO bands would be great. And congrats again.

Anthony Noto

Sure. Thank you, Dan. The first message is our credit performance is very strong. We have very robust performance by our members across each of the products. Not just the performance of credit, but the spending that we see in SoFi Money, the engagement that we see in SoFi Invest, and general behavior overall. We've been in the lending business for quite a long period of time.

When I joined in 2018, one of our key priorities was focused on the quality of our loans over quantity, and to ensure that those loans were durable through an economic cycle, through an interest rate cycle, and any liquidity dislocations. And so we're constantly making adjustments to marketing channels, the trade-off between pricing and credit approvals, and the unit economics of a loan.

We focus on maintaining a 40 to 50% variable profit margin on our loans. And so sometimes we can drive more volume, sometimes higher margins, but it’s a constant data science opportunity for us to refine our loans. And the strength of the Consumer Loan performance speaks for itself. It’s reflected in the numbers. You can see our net charge-offs declined, i.e., improved versus last quarter.

If you go back over the last couple of years, you'll see that we made numerous credit-related changes to ensure the performance remained high-quality as we navigated a 500-basis point interest rate increase, and now we’re seeing rates come down. So we’re observing really strong trends in the channels and great demand from high-quality borrowers, and we feel confident that if anything changes, we’ll make the necessary adjustments accordingly.

To remind everyone, we aim for a lifetime loan loss rate between 7 and 8%, and all indications are that we’re below that, as Chris has mentioned in the past.

Chris Lapointe

Yeah. And the only other thing I would add to Anthony’s point is that we’re also seeing really good demand from capital markets partners, which we view as a flight to quality. So all in all, we remain vigilant as always, but our balance sheet is strong with high-quality loans, excess capital, and solid liquidity, and our partners are active and looking to expand their relationships with us, which is a true testament to the credit we’re underwriting.

Operator

The next question comes from John Heck from Jefferies. John, please go ahead. Your line is open.

John Heck

John, you may be on mute. Sorry everyone, apologies for the technical difficulties, but congratulations on a strong quarter and thank you for taking my questions. My question primarily revolves around the interest rate environment, particularly the declining rates if we consider the forward curve. I am curious about how a lower rate environment might impact the volume mix on the lending side, and specifically, at what point do you anticipate a significant surge in student loan refinancing activity? Additionally, could you discuss your expectations regarding deposit beta and its implications for net interest margin (NIM) over the next few quarters?

Anthony Noto

Thank you, John. We have emphasized this in the past—our business is diverse not because we decided one day to diversify it, but as a result of our strategy to be a one-stop shop. We have scaled our operations across the portfolio of products we offer, positioning ourselves as a one-stop solution to such an extent that we can drive various businesses depending on the characteristics of the environment.

When interest rates were high, we adopted a specific strategy. As rates decline, we are implementing an alternative strategy, and it is proving effective. If rates remain at their current levels, I believe our business will continue to perform exceptionally well. I could not be more optimistic about our near-term trends and our outlook for 2026 relative to our prior long-term guidance. Therefore, I feel very positive about the current environment.

I do have concerns about certain factors, such as credit risks and elevated inflation. We monitor asset flows and other indicators. It is not that we are unconcerned; rather, we feel highly confident about the positive aspects compared to potential challenges as rates decrease. I believe our business will only improve if unemployment remains below 5 to 5.5% and inflation stabilizes at around 3%.

I think we are in a very favorable environment. I do not subscribe to the belief that inflation should necessarily be 2%. I think 3% is entirely acceptable. I also believe global stability will play a crucial role. I consider potential disruptions in three areas: first, economic factors such as unemployment; second, financial liquidity, with rates trending downward rather than upward; and third, macroeconomic factors beyond our control, including exogenous events.

As interest rates decline, our student loan business will benefit significantly. Rates have been very high over the past three years, with federal student loan rates remaining elevated, allowing us to provide substantial savings. For instance, on a $70,000 balance, we will undoubtedly benefit from lower rates in student loan refinancing. Additionally, the home equity market, the home loan market, and the broader real estate sector will benefit from lower rates, both in terms of refinancing and new purchases.

Regarding refinancing, less than 5% of our members with mortgages have them with us. So if you consider everyone on our platform using SoFi and look at the number of those individuals with home loans or mortgages, only 5% of those with mortgages are with us. This represents a significant opportunity for us to market lower mortgage costs to them, and we have the technology to assess their current rates and deliver personalized messages.

We have developed the back-end infrastructure and operational capabilities to deliver reliable mortgages within a specific timeframe. We feel very confident about this. Regarding SoFi Money, I've mentioned this before and will reiterate: in a high-rate environment, non-banks can compete with us on interest rates. However, many choose not to because they aim to maximize profits.

When rates are high, including Fed funds, it is relatively easy for non-banks and non-lending companies to compete. But when Fed funds are low, it becomes exceedingly difficult for such entities to compete with us. Our competitive advantage will become evident, demonstrating that our broad-based product portfolio delivers the highest lifetime value, enabling us to offer superior yields while others struggle to match them.

Given that we operate both as a lending institution and an insured deposit-taking entity, and given our extensive membership base that we can efficiently target for cross-selling, 40% of our product growth in the most recent quarter came from cross-buying, with our member base growing by 35%.

Chris Lapointe

The only additional point I would add, John, regarding your comments on deposit betas and net interest margin (NIM) over the next few quarters is that we have been highly successful in maintaining healthy NIM margins. Last quarter, we achieved 5.84%. Maintaining these robust margins has been driven by our loan pricing betas as well as, obviously, our cost of funds.

On the loan pricing betas front, we have demonstrated that in rising rate environments, we have been able to outpace rate increases and maintain strong pricing. In declining rate environments, we have sustained solid pricing above where rates have fallen. From an asset yield perspective, we have managed to maintain strong asset yields while reducing our overall cost of deposits, all while ensuring healthy growth in member deposits.

Last quarter, we historically operated at a deposit beta of around 65 to 70%. We expect this trend to continue moving forward.

Operator

The next question comes from Kyle Joseph from Stephens. Please go ahead; your line is open.

Kyle Joseph

Good morning, everyone. Thank you for taking my question. I just wanted to get your thoughts on the competitive environment. Clearly, we observed your guidance for membership growth increase, which is certainly a positive development. Is this primarily due to internal marketing efforts and brand awareness, or can we interpret it as a sign of potentially reduced competition in the market? You mentioned capital providers and the flight to quality that you are witnessing. I would appreciate your insights on this matter.

Anthony Noto

It is a function of multiple factors. First, unaided brand awareness. Our objective is to enhance unaided brand awareness further, as it enhances productivity across our digital marketing capabilities and performance marketing. We discussed achieving 9.1% unaided brand awareness in Q3, and we expect this trend to continue into Q4.

We have several new product launches that will contribute not only directly because they are new offerings but also indirectly by raising awareness that we are a one-stop shop. Specifically, our goal is to launch the ability to buy, sell, and hold crypto by the end of the year. We will continue rolling out to other international markets.

The second category is new products, and the third is that we have a solid understanding of which channels to market, which products to offer, and have an accurate read on customer acquisition costs by channel. Therefore, we are ensuring that we continue to scale marketing efficiently, focusing on profitability and growth.

Our confidence stems from being able to execute this strategy more effectively in Q4 compared to Q3, in addition to the upcoming new product launches and the benefits derived from increased brand awareness. This is driving our confidence. Our goals continue to progress along a linear curve to ensure that we do not deviate from the efficient frontier of marketing, brand awareness, and spending. However, there is significant upside potential if we choose to grow even faster by maintaining efficient spending rates.

Operator

The next question comes from Andrew Jeffrey of William Blair. Andrew, please go ahead. Your line is open.

Andrew Jeffrey

Thank you. I appreciate you taking the question this morning. Anthony, as you see faster growth in the non-personal loan business, which I think is very encouraging from a diversification standpoint, does that change your thinking on how you fund that growth on the balance sheet, whether it's deposit-driven versus the loan platform business? And are there opportunities in the loan platform business for non-personal loans? I’m just trying to understand what the funding mix looks like as the donation mix shifts a bit.

Anthony Noto

Certainly, there are definitely opportunities in the loan platform business for non-personal loans, and Chris and the capital markets team are working on that. Funding through deposits is definitely an element that drives our durability and confidence in lending. The reliance on deposits will likely decrease over time, and our cost of funds will also likely decline over time based on several decisions we make.

Regarding how we allocate our capital, I do believe you will continue to see us drive revenue streams that are not tied to capital. Currently, 56% of our revenues come from our tech platform and financial services business, which has grown significantly over time. You can see the benefits to our profitability metrics, ROA, and tangible book value growth related to that.

There are several initiatives underway that we haven’t discussed publicly, which will also help as we leverage blockchain technologies specifically in the lending space. These will contribute to driving strong diversification of funding for our balance sheet.

Operator

The next question comes from Kyle Peterson at Needham. Kyle, please go ahead; your line is open.

Kyle Peterson

Great, good morning. Thank you for taking my question. Regarding these results, I’d like to delve into the loan platform business specifically. I know there’s at least one other fintech lender that recently mentioned some loan buyers, institutional investors consolidating purchases onto fewer platforms. Was the strength this quarter broad-based in terms of you adding participants on the platform on the funding side, or was it fairly concentrated with existing partners? Any additional insights there would be helpful if you’re seeing anything similar. Thank you.

Chris Lapointe

Yeah, thanks Kyle. So we saw growth across both new partners as well as existing partners who have partnerships with us. What we actually observed was a flight to quality, where a number of existing partners approached us to increase their commitments not only for Q3 but also for Q4. Therefore, we anticipate continued momentum in the final quarter of the year. Additionally, we witnessed growth among new partners and expanded credit lines. Overall, there was growth across the board.

Operator

The next question comes from Reggie Smith at JP Morgan. Reggie, please go ahead. Your line is open.

Reggie Smith

Hey guys, great quarter. I have a follow-up question on the loan platform business. Could you provide some context around the numbers, specifically the number of buyers on the platform and what your capacity looks like over the next four quarters? Also, could you elaborate on the process? I think Chris mentioned earlier how companies are increasing their commitments, but Reggie, I believe your question relates to the process by which companies upsize their commitments.

Chris Lapointe

Regarding your first question about the number of buyers on the platform and next quarter's capacity, we will disclose the number of buyers we have. We have publicly disclosed a few, such as Fortress and Blue Owl, but we have multiple partners on the platform. As for capacity in the next quarter, we facilitated $3.4 billion in originations on behalf of others in Q3, and we expect that figure to continue growing as we head into Q4.

As for how companies increase their commitments, they typically approach us during the quarter if they have excess capacity or incremental loan demand, and if we're able to fulfill their requests by the end of the quarter, we will do so. The trend of consolidation towards higher-quality platforms that you mentioned is definitely something we are observing. We believe we are benefiting from this trend based on the activity we see from our partners.

Operator

The next question comes from Peter Christensen from Citigroup Pizza. Please go ahead. Your line is open.

Peter Christensen

Thank you. Good morning. Thank you for the question, and indeed, there are some positive trends here. Anthony, I was wondering if you could remind us where we currently stand in your investment cycle—not just regarding aspects like marketing, performance marketing, or branding—but more specifically on capabilities. I know that you will soon be onboarding new clients onto the tech platform and expanding into crypto, whether through partnerships or natively. Could you provide some context on where we are in the investment cycle? Thank you.

Anthony Noto

Yes, I would like to invest much more than we currently are, but we are trying to strike a balance between growth and being responsible stewards of profitability and generating solid returns. We do not want to pursue unprofitable growth at any cost. Therefore, the limiting factor we have publicly communicated is maintaining at least a 30% incremental EBITDA margin.

I emphasize the word 'at least' because if the business performs better than expected, it becomes challenging to reinvest within a quarter. In such cases, we may accelerate hiring, though this typically does not affect the current quarter but rather the next. We have hired significantly more people in 2025 than initially planned at the start of the year because we have been achieving both strong top-line growth and robust incremental profitability.

I would love to allocate every available dollar toward investments until we reach that 30% incremental EBITDA margin. However, this is not always feasible. This 30% threshold for current EBITDA margins will remain our benchmark unless our growth rate falls below, say, 15%. As long as we continue to grow above that level, we should invest in the business to maximize revenue potential. Over time, we can then moderate spending and focus on margin expansion.

We are certainly not prioritizing margin expansion unless we exceed the 30% incremental EBITDA margin target. Our investment focus includes continuously iterating on our existing products. Every day, we concentrate on five key areas of our offerings: fast selection, content, convenience, and making them work seamlessly together—what we call 'Better Together.'

There are some newer products where we will increase investment, such as SoFi Plus. We are very pleased with the progress we have made there. We will introduce additional features into SoFi Plus related to value, one of which is the smart card. We believe it will be the best card available, offering high rewards—5% on food—and also providing the highest APY.

Beyond that, users will also be able to build their credit scores and leverage their relationship with us to potentially borrow funds both before and after transactions. This feature set will evolve post-launch based on member feedback and usage patterns. Our goal is to focus on delivering intelligent features that meet user needs and combine the best of everything.

We discussed Cash Coach during the call. There are several AI-driven initiatives aimed at helping individuals spend less than they earn and invest the surplus—a unique formula we are well-positioned to deliver. One interesting aspect of our buy, sell, and hold functionality for crypto is that the way we plan to launch this product will be quite innovative.

An individual will open a SoFi Money account. If they do not already have a SoFi Money account, they will fund it, and subsequently, all their purchases will be drawn from that SoFi Money account. What is the benefit of this? Well, that SoFi Money account is FDIC-insured, and we have added additional insurance for our members who opt-in, covering them up to $2,000,000, not just $250,000.

Thus, an individual can have an FDIC/AIC-insured bank account where they keep their funds and seamlessly purchase cryptocurrency, with the money moving efficiently between entities behind the scenes. This highly efficient process, I believe, will be highly differentiated, and we will be the first bank to offer the ability to buy, sell, and hold cryptocurrency.

We mentioned stablecoin on the call. Every day presents a new opportunity for us to leverage the SoFi USD stablecoin, which we plan to launch. We possess unique advantages as a Tier 1 institution. What do I mean by that? As a Tier 1 insured depository institution, we can place the reserves of our stablecoin at the Fed in the form of Fed funds.

What does that mean? Zero credit risk, zero liquidity risk. There is no stablecoin provider in the United States that can make such a claim — a highly differentiated position, and we are extremely excited about it. Additionally, there are several other applications. You can imagine the Fed funds we earn on those reserves being returned to consumers or given to businesses to accept payments at the point of sale. It can also provide various benefits to other ecosystem partners, incentivizing them to partner with us rather than a non-Tier 1 nationally licensed bank.

We will invest as much as possible to achieve that 30% incremental margin and sustain high levels of growth until the growth rate slows, at which point we will focus on driving profitability.

Operator

The next question comes from Moshe Orenbuch from TD Securities. Your line is now open. Please go ahead.

Moshe Arenbuch

Great, thank you. Perhaps you could speak a bit about the competitive dynamics in the personal loan business. One of your close competitors was acquired by a large bank. Do you think that improves the competitive landscape if that happens? Could you elaborate on that a bit? Additionally, you mentioned becoming more capital-light. How much of that shift do you think will come from the personal loan business, in terms of reducing the burden on your balance sheet or proportionally increasing activity on the loan platform side?

Anthony Noto

In terms of competition for personal loans (PL), I would say it has generally been a competitive environment. However, entities that are not large national banks or the top ten banks in our country simply do not offer this product. I believe there are many reasons why they don't provide this product. It represents a gap in their portfolio that allows us to gain more members at efficient costs.

The reason they likely don’t offer this product is that they charge exorbitant rates on credit cards, which are such high Return on Equity (ROE) products that they don’t want to cannibalize their credit card business. The way profits are made in the credit card industry is through revolving balances. In the United States, credit cards average over 20% interest on those revolving balances.

If you actually had a prime or super-prime member and told them they would be charged 20%, they wouldn’t sign up for it. But if you market it under a fancy card name with various benefits and high rewards, no one notices the high interest rate, and they chase those reward points, thinking they’re getting some benefits.

Eventually, they end up with a balance they can’t pay off within one month. They say they’ll do it after two months, but before they know it, six months have passed, and now with a $10,000 balance, they’re paying 20% to 30% interest on it. Would you refinance them with a personal loan at 12%? Probably not. So, I think this is a product we will dominate from a leadership standpoint, and we will continue to chip away at these large balances where people are paying over 20% interest when they could come to us and pay 12%—again targeting prime and super-prime customers.

Chris Lapointe

Regarding your point about capital A and how much of it comes out of the PL business, I would say total personal loan originations were up 53% this past quarter year-over-year and 7% sequentially, reaching a record of $7.5 billion. Given our current market share, which is approximately 15% of total unsecured loans within our credit box, we don’t see much overall cannibalization.

And that doesn’t even scratch the surface of all the outstanding credit card debt, as Anthony mentioned. We’re seeing really good momentum on the LPB side, and we’re adding loans to the balance sheet at a pace that we are comfortable with and pleased about. This past quarter, we added about $2.7 billion of personal loans to the balance sheet, which is a healthy growth rate for us.

Operator

Our final question today comes from Devin Ryan at Citizens Financial Group. Devin, please go ahead. Your line is open.

Devin Ryan

Thank you so much. Good morning, everyone. I’d like to revisit the student loan opportunity. We’ve clearly discussed how the outlook is improving given the current interest rate environment. Could you elaborate on how some of the actions taken by this administration are fostering a more favorable environment? This includes the major legislative bill and other initiatives over the past few weeks. There have been headlines about the government exploring the sale of part of its $1.7 trillion student loan portfolio, which seems quite intriguing for your organization. So, I’d love to hear your thoughts on that. If you can’t address it directly, perhaps you could share your perspective on what this might mean for the market and the broader trajectory.

Anthony Noto

Yes, I believe it’s all very positive for SoFi Technologies. We stand to benefit from all those decisions if they are implemented. We periodically evaluate assets that are up for sale. If the government decides to sell its student loan portfolio, we will certainly examine it closely. It would serve as an excellent customer acquisition tool, not to mention the potential for significant profitability from that portfolio of assets, especially as it relates to potentially reducing the amount someone needs to borrow to attend college, graduate school, business school, medical school, or law school.

We’ll be there to fill any gaps. Our mission is to help our members achieve financial independence so they can pursue their ambitions. Paying for college or purchasing a home represents a critical decision in their lives, and we need to be present for all such pivotal moments. So, we will absolutely step in if there’s a need for solutions that the federal government does not provide.

That would also present a great business opportunity, particularly in the education loan segment. It’s a highly profitable business—very attractive. Expanding in this area would be even more advantageous than student loan refinancing alone. These loans carry higher interest rates, are backed by the borrower’s creditworthiness, and borrowers are generally motivated to repay them due to the value they derive from obtaining a college education. So, this would indeed represent a compelling opportunity.

More broadly, as we consider our education system and the evolving demands driven by technological advancements—such as AI—there may be opportunities to introduce new types of loans beyond the traditional four-year degree model. These could be better aligned with the professional environments that new graduates are entering. Therefore, I believe we will witness some innovation spurred by both the government’s actions and the impact of technology on hiring practices among undergraduates.

Operator

Great, thank you, operator. Back to you.

Anthony Noto

Thank you, Alfred. Apologies for that. As you can see, it was an eventful quarter at SoFi Technologies, and we are energized as we conclude 2025 and move into 2026. Today’s results underscore the strength of the foundation our team has worked tirelessly to build over the last eight years. While this wasn’t evident before today, I believe it’s now safe to say that our performance demonstrates we have truly become a one-stop shop for all your financial needs on a single digital platform.

Many others have discussed achieving this strategy, but to date no one else has approached the breadth of products or complexity of operations that we possess. Not to mention the revenue scale we achieve, the profitability we generate, and the durability and broad diversification of revenue across our product portfolio. This success positions us best to capitalize on the two technology supercycles unfolding and the ongoing robust global transition from traditional finance companies to fintech firms.

Suffice it to say, I am more confident than ever that our strategy and execution will continue to deliver a sustainable competitive advantage with the highest lifetime value. We will accelerate our investments to ensure we maintain our leadership position along the way. We will remain guided by the SoFi way. We are all operating as founders, problem solvers, and partners to bring the best products and services to our members so we can make a meaningful impact on their lives and guide them toward a better, more secure financial future.

By acting in the best interests of our members, we will build deeper relationships across our One Stop Shop platform, leading to durable growth and strong returns for our shareholders for decades to come. Thank you for joining our call. We look forward to speaking with you again next quarter. Goodbye.

Operator

This concludes today's conference call. You may now disconnect.

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