SoFi raises 2025 guidance, targets $3.375B revenue amid accelerated member growth and new blockchain initiatives
Jul. 29, 2025 5:08 PM ET
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Earnings Call Insights: SoFi Technologies, Inc. (SOFI) Q2 2025
Management View- CEO Anthony J. Noto highlighted "an excellent second quarter as we continue to drive durable growth and strong returns through our relentless focus on product innovation and brand building." He reported SoFi added a record 850,000 new members in Q2, bringing total members to 11.7 million, while product count grew by 1.3 million to over 17 million products. Noto emphasized, "Adjusted net revenue was a record of $858 million, up 44% year-over-year. Together, our Financial Services and Technology Platform segments generated $472 million of revenue, up 74% year-over-year and now representing 55% of total revenue."
- Noto announced two major blockchain and crypto initiatives: "First is self-serve international money transfers… The second crypto-related innovation is our return to crypto investing. We are excited to once again be able to provide members with the ability to buy, sell and hold a selection of cryptocurrencies like Bitcoin and Ethereum." Both are expected to launch later this year.
- The CEO highlighted significant Loan Platform Business (LPB) growth: "During the second quarter, we meaningfully increased the proportion of loans that are near prime with higher WACC, effectively monetizing more of the roughly $100 billion of loan applications that we are not able to meet each year. This expansion, along with the large agreements that were previously announced, helped drive record LPB origination volume of $2.4 billion, an increase of 57% from just last quarter."
- CFO Christopher Lapointe stated, "We exceeded each metric that we guided to on our last call on the way to delivering accelerating revenue growth in our seventh consecutive profitable quarter. For the quarter, revenue accelerated and grew 44% year-over-year to a record $858 million. Adjusted EBITDA was also a record at $249 million and a margin of 29%. Net income was $97 million at a margin of 11% and earnings per share was $0.08."
Outlook- Lapointe raised full-year guidance: "We now expect adjusted net revenue of approximately $3.375 billion, above our prior guidance of $3.235 billion to $3.310 billion. This equates to year-over-year growth of approximately 30%, an increase from our prior guide of 24% to 27%. We now expect an adjusted EBITDA of approximately $960 million, above our prior guidance of $875 million to $895 million. We now expect adjusted net income of approximately $370 million, above our prior guidance of $320 million to $330 million; and adjusted EPS of approximately $0.31, above our prior guidance of $0.27 to $0.28."
- Lapointe reiterated confidence in medium-term guidance: "We continue to expect to exceed 25% compounded annual revenue growth from '23 to '26, and we really remain confident in delivering our EPS target of $0.55 to $0.80 in 2026."
Financial Results- SoFi reported record adjusted net revenue of $858 million, adjusted EBITDA of $249 million, and net income of $97 million. Fee-based revenue reached $378 million, up 72% year-over-year, with annualized fee-based revenue now over $1.5 billion. Total loan originations reached $8.8 billion for the second quarter, up $1.5 billion from last quarter.
- Financial Services segment net revenue was $363 million, with contribution profit of $188 million and 52% margin. Tech Platform net revenue was $110 million. Lending segment adjusted net revenue was $447 million, contribution profit $245 million, and 55% margin. Personal loan originations were $7 billion, including $2.4 billion via LPB.
- SoFi's tangible book value ended the quarter at $5.3 billion, a quarter-over-quarter increase of nearly $200 million.
Q&A- John Douglas Hecht (Jefferies) asked about the cadence of results for Q3 and Q4 and updated guidance. Christopher Lapointe answered, "For Financial Services, what we had previously guided to was 60% to 65% year-over-year growth. We're obviously pacing well above that and we expect that to continue in the back half of the year… Q4 to be higher than Q3 across all of our metrics."
- Dan Dolev (Mizuho) inquired about the Tech Platform and Chime migration. Lapointe said, "While migration is not complete, we have made really good progress on signing up new partners that are going to contribute in 2026."
- Andrew William Jeffrey (William Blair) asked about the funding mix. Noto replied, "We really want to balance the different business lines to drive an optimized return on equity… The opportunity set there really is open-ended because it's capital light, and capital-light businesses, as you mentioned, drive better ROE."
- Kyle David Peterson (Needham & Co.) questioned LPB growth. Lapointe responded, "We do expect continued growth in momentum in both Q3 and Q4."
- Moshe Ari Orenbuch (TD Cowen) asked about LPB partner agreements and loan tokenization. Lapointe referenced specific deals: "We had an initial $2 billion deal with Fortress… a $5 billion deal with Blue Owl… and a combination deal with Fortress and Edge Focus."
- Peter Corwin Christiansen (Citigroup) discussed discretionary spending and margins. Lapointe said, "We're going to make sure that we keep putting $0.70 of every incremental revenue dollar back into the business. The greatest increase in the spending in the back half of the year is in our engineering product and design areas." He also detailed investments in crypto, AI, and product development.
- Reginald Lawrence Smith (JPMorgan) asked about Invest segment monetization. Noto explained, "The monetization is slowly starting to improve as we get more assets we drive more monetization through a number of back-end revenue streams… We're about 50% of the benchmark."
Sentiment Analysis- Analysts conveyed a positive tone, frequently congratulating management on results and focusing on growth drivers, new product initiatives, and guidance raises.
- Management maintained a confident and optimistic tone in both prepared remarks and Q&A, highlighting strong performance, execution, and future opportunities. Phrases like "feel great about the business" and "could not be more excited about our future" indicated high confidence.
- Compared to the previous quarter, both management and analysts displayed increased positivity, with greater focus on upside opportunities and accelerated growth.
Quarter-over-Quarter Comparison- Guidance was raised this quarter: revenue growth now expected at 30% vs. prior 24%-27% range, with EBITDA, net income, EPS, and tangible book value targets all increased.
- Member and product growth accelerated, with 850,000 new members added (vs. 800,000 last quarter) and 1.3 million new products (vs. 1.2 million).
- LPB origination volume increased to $2.4 billion from $1.6 billion last quarter, with a broader move into near prime lending.
- Fee-based revenue and non-lending businesses showed increased contribution. Technology and blockchain/crypto innovation initiatives were more prominent this quarter.
- Management tone was more bullish, emphasizing the "massive opportunity" and new growth frontiers, compared to already positive but more measured tone in Q1.
- Analysts focused more on growth momentum and new initiatives, with less concern about macro uncertainty than last quarter.
Risks and Concerns- Management noted the main challenge is prioritizing among numerous growth opportunities, stating, "our biggest challenge beyond 2025, quite frankly, is deciding what not to do."
- No significant credit quality or consumer weakness was reported; credit trends remain strong.
- Analysts raised questions about Tech Platform partner transitions, LPB partner durability, and discretionary spending allocation, but management expressed confidence and provided specifics on mitigation and strategic selection of long-term partners.
Final Takeaway
SoFi delivered record growth in the second quarter of 2025, surpassing guidance across all key metrics and raising full-year targets. The company is accelerating investments in blockchain, crypto, and AI, expanding its Loan Platform Business into new credit segments, and reporting robust member and product growth. Management expressed high confidence in sustaining 25%+ compound annual revenue growth through 2026 and highlighted the evolving mix toward capital-light, fee-driven business lines, reinforcing SoFi’s positioning as a digital financial services leader with expanding market opportunity.
Read the full Earnings Call Transcript |
