S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
SAN FRANCISCO - On Tuesday, SoFi Technologies, Inc. (NASDAQ:SOFI) reported second-quarter results that exceeded analyst expectations and raised its full-year guidance, driven by record fee-based revenue and strong member growth.
The fintech company’s shares jumped 6.76% in pre-market trading after the release.
The digital financial services provider posted adjusted net revenue of $858 million for the second quarter, significantly beating the analyst consensus of $804.23 million and representing a 44% YoY increase. Adjusted earnings per share came in at $0.08, surpassing expectations of $0.06. The company also reported record adjusted EBITDA of $249.1 million, up 81% from the same period last year.
"We had an exceptional second quarter, driving durable growth and strong returns through our relentless focus on product innovation and brand building," said Anthony Noto, CEO of SoFi.
SoFi’s performance was fueled by robust member acquisition, with a record 850,000 new members joining in the quarter, bringing the total to 11.7 million, up 34% YoY. The company also added a record 1.26 million new products, increasing its total to 17.1 million, also up 34% from the prior year.
Fee-based revenue was a standout performer, surging 72% YoY to a record $377.5 million, driven by SoFi’s Loan Platform Business, origination fees, referrals, and interchange revenue. The company originated a record $8.8 billion in loans during the quarter, including $2.4 billion through its Loan Platform Business.
Personal loan originations increased 66% YoY to $7.0 billion, while student loan volume rose 35% to $1.0 billion. Home loan volume jumped 92% to $799 million compared to the same quarter last year.
SoFi also demonstrated improved credit performance, with the personal loan annualized charge-off rate decreasing to 2.83% from 3.31% in the prior quarter.
Based on its strong first-half performance, SoFi raised its full-year 2025 guidance, now expecting adjusted net revenue of approximately $3.375 billion, up from its previous range of $3.235 to $3.310 billion. This represents approximately 30% annual growth. The company also increased its adjusted EBITDA forecast to $960 million, with an expected EBITDA margin of 28%, and raised its GAAP EPS guidance to $0.31 per share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.