SoFi Technologies (NASDAQ: SOFI) has increasingly solidified its status as a transformative player within the financial services industry, leveraging innovative digital-first solutions to challenge legacy banking institutions. In the first quarter, the company exceeded Wall Street’s expectations and marked a pivotal milestone by achieving sustained profitability, an essential component of its long-term strategic roadmap. This milestone reflects the successful execution of its diversified business model, which spans lending, financial services sector, and technology platform segments.
Additionally, SoFi’s upward revision of its full-year guidance signals management’s confidence in the company’s momentum and operational discipline. These results have energized investor sentiment and reinforced SoFi’s potential as a high-growth fintech firm capable of scaling profitability, in a competitive landscape.
SoFi Achieves Record Revenue and Member Growth in Q1 2025
SoFi experienced substantial growth in the first quarter of 2025, achieving notable top- and bottom-line results. GAAP net revenue increased by 20% year-over-year to $771.8 million, and adjusted net revenue rose even more, 33%, to $770.7 million compared to the same period in 2024.
The company continued its profitable trajectory, reporting GAAP net income of $71.1 million, which translates to diluted earnings per share (EPS) of $0.06. Adjusted EBITDA, an indicator of operating profitability, reached a record high of $210.3 million, marking a 46% year-over-year increase and resulting in an adjusted EBITDA margin of 27%.
A significant factor in this performance was the accelerated expansion of fee-based revenue, which reached a record $315.4 million, a 67% increase from the previous year. The Financial Services segment demonstrated particular strength, more than doubling its net revenue year-over-year to $303.1 million.
This growth was primarily driven by strong adoption rates of SoFi Money accounts and the expansion of the Loan Platform Business.
SoFi sustained a rapid pace of member and product growth. The company added a record 800,000 new members during the quarter, bringing its total member base to over 10.9 million, a 34% increase from the prior year. Product adoption followed a similar trend, with a record 1.2 million new products added, increasing the total product count to 15.9 million, a 35% year-over-year rise.
Loan originations also reached a record $7.2 billion, a 66% increase year-over-year, with personal loans ($5.5 billion, up 69%), student loans ($1.2 billion, up 59%), and home loans ($518 million, up 54%) all exhibiting strong demand. Furthermore, credit quality metrics improved, as annualized charge-off rates for personal and student loans decreased compared to the previous quarter, and the 90-day personal loan delinquency rate declined for the fourth consecutive quarter.
SoFi Management Raises the Bar
Following a solid first quarter, SoFi's management has revised its full-year 2025 financial outlook upward. The company now anticipates adjusted net revenue in the range of $3.235 billion to $3.310 billion, an increase from the previous $3.200 billion to $3.275 billion, representing a year-over-year growth of 24% to 27%.
Adjusted EBITDA is now projected to be between $875 million and $895 million, up from the earlier $845 million to $865 million, while sustaining a healthy incremental margin forecast. GAAP net income guidance has been increased to $320 million to $330 million, compared to the prior $285 million to $305 million.
As a result, the full-year GAAP EPS forecast has been raised to $0.27 to $0.28 per share, from $0.25 to $0.27. Management also expects tangible book value growth to be approximately $585 million to $600 million for the year. Looking ahead to the second quarter of 2025, SoFi forecasts adjusted net revenue of $785 million to $805 million. They adjusted EBITDA of $200 million to $210 million, with projected GAAP net income of $60 million to $70 million, or $0.05 to $0.06 per share.
Strategic Wins Fueling SoFi's Growth
SoFi's financial performance in early 2025 is significantly driven by its Loan Platform Business growth. This segment, which originates loans for external partners, secured over $8 billion in new commitments within the first few months of the year through substantial agreements with firms like Blue Owl Capital (NYSE: OWL), Fortress Investment Group, and Edge Focus.
Notably, the platform originated $1.6 billion in loans in the first quarter alone for these partners, making a significant contribution to record fee-based revenue. The successful $697.6 million securitization in February, supported by these loan platform assets, highlighted strong capital market interest in SoFi's loan originations and provided capital for ongoing expansion.
Beyond its lending activities, SoFi continued to develop its financial ecosystem. It broadened its alternative investment options for accredited investors through its collaboration with Templum, introducing access to a fund focused on the artificial intelligence (AI) company Anthropic.
The company also launched a fee-based subscription tier for its SoFi Plus membership and unveiled SmartStart, a flexible student loan refinancing product with an initial interest-only payment phase intended to ease borrowers' financial transitions. SoFi also increased its brand visibility through prominent partnerships, including sponsorships of the NBA Play-In Tournament and becoming the presenting partner for CMA Fest.
A Stronger Case for SoFi?
SoFi Technologies' Q1 2025 performance and increased full-year guidance reinforce a positive investment outlook. Achieving GAAP profitability alongside record revenue, EBITDA, member growth, and loan originations demonstrates effective strategy execution. The swift growth and validation of the capital-light Loan Platform Business, coupled with Financial Services expansion, suggest a more varied and potentially stable business.
SoFi must now consistently meet or surpass these heightened expectations and demonstrate its capacity to adapt to the changing economic environment while achieving its long-term growth objectives.
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The article "SoFi Reports Strong Q1 Results, Raises 2025 Full-Year Guidance" first appeared on MarketBeat.
