SoFi Technologies, Inc. Q4 FY2025 earnings call

2025 was an exceptional year for SoFi. They added a record 1 million new members and 1.6 million new products in Q4, with 40% of new products opened by existing members. Adjusted net revenue reached a record over $1 billion in Q4, up 37% year-over-year. Financial services and the technology platform contributed $579 million in revenue, a 61% year-over-year increase, accounting for 57% of total revenue. The Lending segment saw adjusted net revenue grow 15% to $486 million, driven by strong originations. SoFi made significant strides in crypto, launching products like SoFi Pay, SoFi Crypto, and SoFi USD. The SoFi Smart Card was introduced in the fourth quarter. Brand-building efforts included music and sports partnerships, boosting brand awareness to 9.6%. The company also plans to roll out its business banking offering in 2026.

In 2025, the Financial Services segment generated record revenue of over $1.5 billion, up 88% from the prior year. For the fourth quarter, net revenue was $457 million, up 78% year-over-year. Contribution profit was $231 million, up 2x from the prior year, with a contribution margin of 51%. The Tech Platform business generated record revenue of over $450 million in 2025. In the fourth quarter, it delivered net revenue of $122 million, up 19% year-over-year. The Lending segment generated record adjusted net revenue of over $1.8 billion in 2025, up 24% from the prior year. In the fourth quarter, adjusted net revenue was $486 million, up 15% from the same period last year. The loan platform business in Q4 generated $194 million in adjusted net revenue, an annualized pace of $775 million, nearly 3x higher than the same period last year.

For 2026, SoFi anticipates total member growth of at least 30% year-over-year. Adjusted net revenue is projected to be approximately $4.655 billion, a 30% year-over-year increase. Adjusted EBITDA is expected to be around $1.6 billion, with an EBITDA margin of approximately 34%. Adjusted net income is estimated to be $825 million, and adjusted EPS is projected to be $0.60 per share. From 2025 to 2028, the company expects at least 30% compound annual growth in adjusted net revenue and 38%-42% compound annual growth in adjusted EPS.

Risks include macroeconomic fluctuations, intensifying competition, and regulatory changes that could impact the company's crypto and other business ventures.

Q: John Hecht asked about breaking down consolidated guidance by segment.

A: The executive stated 2026 revenue growth of roughly 30% overall, with Financial Services expected to grow by 40% or more, Lending at approximately 23% year-over-year, Tech Platform normalized for a large client at around 20% growth, and the Corporate segment generally in line with 2025 levels.

Q: Andrew Jeffrey inquired about brand awareness and KPI growth.

A: Anthony Noto mentioned unaided brand awareness at 9.6%, aiming for mid-20s, and discussed marketing effectiveness, a 40% cross-buy rate, and the importance of product quality for virality.

Q: Dan Dolev asked about LTV allocation.

A: Chris Lapointe said originations are robust, with flexibility to choose capital-light fee-based revenue via the loan platform or balance sheet lending to maximize shareholder value.

Q: Kyle Peterson asked about deposit growth.

A: Anthony Noto and Chris Lapointe discussed deposit growth driven by SoFi's competitive APY, high-quality direct deposit customers, and a downward beta of 60%-70%.

Q: Reggie Smith asked about tech platform and crypto innovation.

A: Anthony Noto said crypto presents enormous opportunities for the tech platform, with interest from international companies and potential for growth across products.

Q: Kyle Joseph asked about capital markets update.

A: Chris Lapointe stated capital markets activity remains strong, with robust demand for loans and partnerships, and continued growth in personal loan originations.

Q: Jill Glaser Shea asked about ROE.

A: Anthony Noto said the company aims for 20%-30% ROE, balancing investment in growth with delivering returns, and expects to manage with a 30% incremental EBITDA margin.

Q: Noah Katz asked about capital allocation and M&A.

A: Chris Lapointe said the company has strong capital ratios and can allocate capital to balance sheet growth and LTV partnerships, with Anthony Noto noting a high bar for M&A, prioritizing opportunities to accelerate growth through organic means or strategic acquisitions at the right price.