TLDR:
- SoFi reported Q1 earnings of $0.06 per share, double analyst expectations of $0.03
- Adjusted net revenue grew 33% to $772 million, exceeding Wall Street forecasts
- Financial services segment saw dramatic growth of 101% to $303 million
- Company raised its full-year guidance for revenue and earnings
- CEO Anthony Noto aims to make SoFi one of the top 10 financial institutions in the U.S.
SoFi Technologies (SOFI) delivered better-than-expected first-quarter results on Tuesday, leading the fintech company to raise its full-year outlook. The digital banking platform saw its shares rise 4.5% to $13.79 in premarket trading following the announcement.
The company reported earnings of six cents per share for the quarter, doubling the three cents per share that analysts had predicted according to FactSet. This strong performance was matched by impressive revenue growth.
SoFi’s adjusted net revenue climbed 33% to $772 million. This marked the company’s highest growth rate in five quarters and surpassed Wall Street’s expectations of $739 million.
The stock was down 14% this year prior to this announcement. However, it has gained 87% over the past 12 months, showing long-term investor confidence despite recent volatility.
All business segments showed strength in the quarter. The financial services division was a standout performer with 101% growth, reaching $303 million for the period.
Loan Growth Across Categories
Total loan originations hit $7.2 billion, with $1.6 billion originated in the first quarter alone. Home loan originations saw a 54% increase, partly driven by a new home equity offering launched within the past year.
Fee-based revenue grew 67% to a record $315 million. This diversification of revenue streams helps reduce the company’s reliance on interest income alone.
Student loan originations, which were once SoFi’s core business, increased by 59% to $1.2 billion. This growth shows the company can still expand in its original market while developing new business lines.
Based on these strong results, SoFi raised its guidance for the full year 2025. The company now expects adjusted net revenue between $3.235 billion and $3.310 billion, up from its previous forecast of $3.2 billion to $3.275 billion.
Earnings are now projected to be between 27 and 28 cents per share, higher than the earlier guidance of 25 to 27 cents per share.
The company also raised its forecast for adjusted earnings before interest, taxes, depreciation, and amortization to between $875 million and $895 million, up from $845 million to $865 million previously.
Ambitious Growth Plans
CEO Anthony Noto has set ambitious goals for the company. “From day one over seven years ago, it has always been our mission to become a one-stop shop,” Noto told Barron’s.
Noto has stated his vision for SoFi to become one of the top 10 financial institutions in the U.S. based on market capitalization. The company currently has a market cap of approximately $14.57 billion.
“We are well on our way to having everything we need, and in my mind the only thing between us and those goals is us,” Noto said. “We have a massive opportunity in front of us, and we’re putting our foot on the gas to ship new products and iterate on our current offerings.”
The company’s fully digital platform allows it to avoid the costs of maintaining physical bank branches. This gives SoFi the ability to focus resources on improving user experience through technology.
SoFi’s customer base has expanded ten-fold in the last five years. This rapid growth suggests the company’s offerings are connecting well with consumers.
Wall Street analysts project SoFi’s revenue to increase at a compound annual rate of 18.5% over the next three years.
The company is working to build competitive strengths in an industry dominated by established players like JPMorgan Chase and Bank of America.
SoFi posted its first year of GAAP profit in 2024, with earnings per share of $0.46. Management forecasts EPS to reach $0.68 by 2026, with annual growth of 20% to 25% in the years following.
The recent earnings report showed SoFi’s highest revenue growth rate in five quarters, with adjusted net revenue increasing 33% to $772 million.
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