In this video, I will be talking about SoFi (SOFI -5.00%), the extension of the federal student loan payment moratorium and what that means for the company, and some reminders regarding Galileo. You can find the video below, but here are some highlights.
- The Biden administration on Wednesday announced that it will extend the pause on federal student loan payments to Aug. 31, 2022. At that point I wouldn't be surprised to see another extension.
- SoFi has updated its adjusted net revenue and adjusted EBITDA guidance for 2022. It now expects $1.47 billion and $100 million, respectively, a reduction from previous guidance of $1.57 billion and $180 million.
- This is a short-term headwind -- yes, it's gone on longer than expected, but it will turn into a tailwind in the future.
- SoFi's loan segment is also becoming smaller as banking and Galileo become bigger.
- SoFi is now offering 1.25% annual percentage yield on checking and savings accounts. This is 41 times the national average checking rate.
- Galileo, which is a big part of SoFi's future success, reached 100 million accounts last quarter. Galileo's API manages account setups, direct deposits, and a lot more features that you could expect from a fintech company in 2022.
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*Stock prices used were the closing prices of April 6, 2022. The video was published on April 7, 2022.
