SoFi Technologies Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did SOFI Beat Earnings? Q1 2025 Results
SoFi Technologies kicked off 2025 with a standout quarter, posting Q1 GAAP diluted EPS of $0.06 against a consensus estimate of $0.03, a beat of 93.55%, while revenue of $771.76 million cleared expectations by 4.45%. The driving force behind the outperformance was a Financial Services segment that more than doubled revenue to $303.12 million, fueled by explosive Loan Platform Business growth and interchange fees up 90% year over year, helping lift adjusted EBITDA to a record $210.34 million at a 27% margin. Member growth was equally striking, with a record 800,000 new additions bringing total membership to 10.9 million, up 34% annually. Credit quality continued to improve, with personal loan charge-off rates edging down to 3.31%. Management responded to the momentum by raising full-year 2025 guidance, now targeting adjusted net revenue of $3.23 to $3.31 billion and GAAP EPS of $0.27 to $0.28, though some observers note that the lagging Technology Platform, up just 10% to $103.43 million, remains the key hurdle to a premium valuation.
- Record 800,000 new members in Q1, total reaching 10.9 million (up 34% YoY)
- Fee-based revenue up 67% YoY to record $315.4 million
- Net interest income up 24% YoY to $498.7 million driven by 23% growth in average interest-earning assets and 82 bps decrease in cost of funds
- Financial Services segment revenue more than doubled YoY driven by SoFi Money, Loan Platform Business expansion, and SoFi Invest innovations
- Record loan origination volume of $7.2 billion up 66% YoY
- Interchange fee revenue up 90% YoY from nearly $16 billion annualized spend
- Net interest margin expanded 10 bps sequentially to 6.01%
- Total deposits grew to $27.3 billion with over 90% from direct deposit members
“We are off to a tremendous start in 2025. In Q1, we delivered durable growth and strong returns driven by our relentless focus on product innovation and brand building.”
SoFi Technologies CEO, on the earnings call
Forward Guidance & Outlook
Management raised full-year 2025 guidance across all metrics. Adjusted net revenue is now expected at $3.235–$3.310 billion (up $35 million from prior range), implying 24%–27% annual growth. Adjusted EBITDA guidance raised to $875–$895 million. GAAP net income now expected at $320–$330 million (from $285–$305 million). GAAP EPS raised to $0.27–$0.28 per share. Tangible book value growth expected at approximately $585–$600 million. At least 2.8 million new members expected in 2025 (28% growth from 2024). For Q2 2025, management expects $785–$805 million adjusted net revenue, $200–$210 million adjusted EBITDA, $60–$70 million GAAP net income, and $0.05–$0.06 GAAP EPS. Guidance assumes a 26% tax rate for the remainder of 2025.
SOFI YoY Financials
SOFI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.