SoFi Technologies (SOFI 6.57%), a digital finance platform offering banking, lending, and investment services, reported earnings for the second quarter of fiscal 2025 on July 29, 2025. The most important news from the release was the company's significant outperformance of analyst expectations for both revenue (non-GAAP) and earnings (GAAP). Non-GAAP revenue was $858 million for Q2 2025, ahead of the $804.23 million non-GAAP consensus, while non-GAAP earnings per share reached $0.08, also beating the $0.06 estimate. Compared to the prior-year period, adjusted revenue grew 44% and GAAP net income rose to $97 million from $17 million. The quarter saw continued strong member and product growth, as well as record lending and fee-based revenue. Overall, this was a quarter of operational momentum and improved profitability, punctuated by several new milestones for the company.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.08 | $0.06 | $0.01 | 7000 % |
| Revenue (Non-GAAP) | $858 million | $804.23 million | $597 million | 44 % |
| Net Income (GAAP) | $97 million | $17 million | 470.6 % | |
| Adjusted EBITDA | $249 million | $138 million | 80 % | |
| Total Members | 11.7 million | 8.8 million | 34 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Recent Focus
SoFi Technologies provides a range of digital financial products through its platform, targeting both individuals and other businesses. Its offerings span personal loans, student loans, home loans, checking and savings accounts, credit cards, brokerage services, and financial dashboards. The company combines these into a single app with the aim of being a one-stop shop for managing money.
Recently, SoFi has been focused on expanding its integrated financial platform by cross-selling additional products to existing members, boosting fee-based income, and using its bank charter to lower funding costs. By acquiring technology providers Galileo, a payments processing platform, and Technisys, a core banking software provider, SoFi has also pushed into enterprise services. This diversification and increased emphasis on recurring, capital-light fee revenue streams have become central to its strategy.
Quarter Highlights: Growth, Margins, and New Developments
The second quarter featured notable growth across nearly every key metric. Member count rose to 11.7 million, up 34%, and the total number of products on the platform reached 17.1 million, mirroring the same rate of increase. Notably, 35% of all new products adopted came from existing members using SoFi for additional services, underlining the value of the company’s "productivity loop" approach to customer engagement.
Lending remained a powerful engine for growth, with total loan originations hitting $8.8 billion, up 64%. Personal loan originations made up $7.0 billion of that total, increasing 66%, while home loans grew 92% year-over-year to $799 million. One third of home loan volume now comes from home equity loans, a product only recently launched. Student loan originations climbed 35% year-over-year. Despite rapid expansion, credit quality indicators such as the annualized personal loan charge-off rate declined to 2.83% from 3.84% in Q2 2024. Ninety-day delinquency rates on personal loans hit a multi-quarter low at 0.42%.
In terms of revenue streams, SoFi’s fee-based income reached $377.5 million, up 72% year-over-year, while Net interest income (GAAP) grew to $517.8 million, a 26% increase. The Financial Services segment more than doubled its GAAP net revenue to $362.5 million, with the contribution margin for the unit rising 21 points to 52%. The Loan Platform Business, which originates loans for third parties and carries little direct credit risk, originated $2.4 billion of loans and is now approaching a $9.5 billion annualized pace.
The company’s bank charter remains a strategic strength, with deposits now at $29.5 billion as of June 30, 2025. Nearly 90% of SoFi Money deposits (inclusive of Checking and Savings and cash management accounts) are from members who set up direct deposit, which results in an average funding rate 1.87 percentage points lower than warehouse lending facilities. This funding advantage supported a net interest margin of 5.86%. Tangible book value per share increased to $4.72 from $3.94 in the prior-year period.
On the technology side, SoFi's Technology Platform segment net revenue rose to $110 million, up 15% year-over-year. However, accounts on the platform grew only 1 %, reflecting a slowdown compared to other segments. Management highlighted new client wins but noted they expect most of the impact to appear in later periods. Brand awareness also hit a new high, and the company teased future launches in crypto investing and artificial intelligence-driven financial tools.
Financial Outlook and What to Watch
Management raised its outlook for the year. It now forecasts non-GAAP adjusted net revenue of approximately $3.38 billion, adjusted EBITDA of $960 million, and GAAP net income of $370 million for the full year. Previous guidance ranged from $3.24 to $3.31 billion for adjusted net revenue and $875 to $895 million for adjusted EBITDA. The company expects at least 3.0 million new members, or approximately 30% growth.
Key areas to watch ahead include the pace of technology platform expansion, lending cycle sustainability, and the regulatory environment. While the company’s loan growth and credit metrics are strong, management notes that consumer credit and regulation remain possible headwinds. SoFi Technologies does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
