Shares of digital bank SoFi Technologies (SOFI +1.78%) stock gained 13% in August, according to data provided by S&P Global Market Intelligence. It was coming off of an excellent earnings report at the end of July, and it announced new blockchain-based products that are exciting the market.
Banking for a new generation
SoFi targets students and young professionals, but increasingly, it's targeting anyone who's looking for easy-to-use banking services with low fees and high savings rates.
It began its life as a lending company, and that's still its main segment. Lending revenue accounted for about half of the total in the 2025 second quarter, and as interest rates come down, the lending segment is gaining momentum. Total originations increased 64% year over year in the second quarter, with a 66% increase in personal loans, 35% in student loans, and 92% in home loans. Total lending revenue was up 30% over last year, and contribution profit rose 24%.
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But SoFi has expanded into a full financial services platform, and the non-lending services, like SoFi Money and SoFi Invest, are growing much faster. Financial services segment revenue increased 106% over last year in the second quarter, and contribution profits was up 241%. These are mostly low-cost, fee-based products, enhancing both growth and profitability.
Total adjusted net revenue increased 44% year over year in the second quarter, and earnings per share (EPS) climbed 700% from $0.01 last year to $0.08 this year.
The future is wide open
While the market cheered SoFi's blowout performance in the second quarter, it was at least equally enthusiastic about SoFi's innovations. SoFi announced the return of cryptocurrency trading to its platform a few months ago, and it followed that up with the news that it was going to start offering global remittances, a form of wire transfers, through its app using a blockchain network. It recently added more details, explaining that it's going to partner with Lightspark, which provides blockchain infrastructure, to send money by converting it to Bitcoin and then converting it into local currency.
NASDAQ: SOFI
Key Data Points
SoFi added 850,000 new customers in the second quarter, record add-ons and a 34% increase year over year. These are predominantly young professionals just starting out with learning how to manage their finances, and 90% of SoFi Money deposits come from direct deposit. That's a recurring revenue stream that should keep SoFi growing, and as these customers develop greater financial management needs, they present greater growth opportunities. SoFi looks poised to deliver for investors for years to come.
