SoFi Q1 Revenue Hits Record $772M with 34% Member Growth, Posts $71M Profit

Rhea-AI Summary

SoFi reported strong Q1 2025 results with record-breaking performance across key metrics. The company achieved $772 million in net revenue, up 20% year-over-year, and $71 million in net income. Member base grew 34% to 10.9 million, while total products increased 35% to 15.9 million.

Financial highlights include:

• Fee-based revenue up 67% to $315 million
• Adjusted EBITDA increased 46% to $210 million
• Record 800,000 new members joined in Q1
• Financial Services segment doubled revenue to $303 million

The company's Loan Platform Business secured over $8 billion in new commitments, with $1.6 billion in loans originated for third parties in Q1. Credit performance improved with decreased charge-off rates in personal and student loans. SoFi's deposit base grew to $27.3 billion, with 90% coming from direct deposit members.

Insights

Financial Analyst

SoFi delivers strong Q1 with 33% revenue growth, record member additions, and raised 2025 guidance, despite 19% YoY net income decline.

SoFi's Q1 2025 results demonstrate exceptional momentum across key metrics. Adjusted net revenue increased 33% year-over-year to a record $771 million, while adjusted EBITDA jumped 46% to $210 million, representing a robust 27% margin. Fee-based revenue surged 67% to $315 million, highlighting successful diversification beyond interest income.

The company's member acquisition strategy is yielding impressive results, with 800,000 new members added in Q1 alone, bringing the total to 10.9 million (up 34% YoY). Product adoption reached 15.9 million (up 35% YoY), demonstrating effective cross-selling within their ecosystem.

SoFi's Financial Services segment has become a growth powerhouse, with revenue more than doubling to $303.1 million and contribution margin expanding 24 percentage points to 49%. The new Loan Platform Business contributed $96.1 million in quarterly revenue, originating $1.6 billion in loans for third parties.

The deposit strategy is delivering significant cost advantages, with $27.3 billion in total deposits providing funding 189 basis points cheaper than warehouse facilities, translating to approximately $515 million in annual interest expense savings.

Credit quality is improving, with personal loan charge-off rates decreasing to 3.31% and 90-day delinquency rates declining for the fourth consecutive quarter. This indicates prudent risk management despite the expanding loan portfolio.

The Technology Platform segment showed more modest growth of 10% with $103.4 million in revenue and 30% contribution margin.

While GAAP net income of $71.1 million represents a 19% YoY decline, this appears to reflect investments in growth initiatives. Management's decision to raise 2025 guidance signals confidence in continued strong performance.

Fintech Industry Expert

SoFi's Financial Services Productivity Loop strategy delivering results with 101% revenue growth in Financial Services and stronger-than-peers credit performance.

SoFi's Q1 results validate their distinctive "Financial Services Productivity Loop" strategy. By prioritizing product innovation and brand building, they've created a flywheel effect where each additional product increases customer lifetime value. The 36% YoY growth in Financial Services products to 13.8 million demonstrates the effectiveness of this approach.

The Loan Platform Business represents a strategic evolution for SoFi. By originating $1.6 billion in loans for third parties in Q1 alone and securing over $8 billion in new commitments from partners like Blue Owl, Fortress, and Edge Focus, SoFi is diversifying revenue streams while leveraging their core lending expertise without consuming balance sheet capacity.

SoFi's deposit strategy is particularly notable, with over 90% of Money deposits coming from direct deposit members. This high-quality deposit base provides stable, lower-cost funding compared to alternative financing sources, creating a $515 million annual interest expense advantage.

The SoFi Plus subscription model shows promising engagement metrics, with nearly 30% of existing members adopting an additional product within 30 days of enrollment, and over 75% of new-to-SoFi Plus subscribers adopting at least a second product.

Credit performance metrics outshine many peers, with personal loan charge-offs decreasing to 3.31% despite the broadly challenging consumer credit environment. This indicates superior risk assessment and underwriting capabilities.

SoFi's Technology Platform (Galileo and Technisys) continues growing more moderately at 10% YoY, but shows promising diversification beyond traditional financial services with new clients like Wyndham Hotels & Resorts and Mercantil Banco. This diversification could unlock new growth vectors as the banking-as-a-service market evolves.

The simultaneous achievement of 33% revenue growth, 46% EBITDA growth, and continued member acquisition demonstrates SoFi's ability to balance growth and profitability in a challenging market environment.

SoFi Reports Record Q1 2025 Results: Revenue Surges 33% to $771 Million, Achieves Sixth Consecutive Profitable Quarter

Digital financial services provider SoFi Technologies, Inc. (NASDAQ: SOFI) reported strong first-quarter 2025 results on April 29, posting record revenue and member growth while achieving its sixth consecutive quarter of profitability.

The fintech company announced adjusted net revenue reached a record $770.7 million, up 33% from the same period last year, while GAAP net revenue increased 20% to $771.8 million. SoFi reported net income of $71.1 million, resulting in diluted earnings per share of $0.06, a 200% increase from $0.02 in Q1 2024.

The company also reported record adjusted EBITDA of $210.3 million, representing a 46% year-over-year increase and achieving a 27% adjusted EBITDA margin.

Member and Product Growth Accelerates

SoFi recorded substantial growth in its user base, adding 800,000 new members in the quarter to reach a total of 10.9 million members, a 34% increase year-over-year. The company also reported 1.2 million new product additions, bringing total products to 15.9 million, up 35% from the prior year.

According to the release, Financial Services products represented 90% of total product growth, increasing by 36% year-over-year to 13.8 million. SoFi Money and SoFi Relay both grew 41% year-over-year, reaching 5.5 million and 5.1 million products, respectively.

"We are off to a tremendous start in 2025. In Q1, we delivered durable growth and strong returns driven by our relentless focus on product innovation and brand building," said Anthony Noto, CEO of SoFi. "We delivered our highest revenue growth rate in five quarters, driven by new records in members, products, and fee-based revenue."

Financial Services Segment Doubles Revenue

The Financial Services segment emerged as a standout performer, with revenue more than doubling year-over-year to $303.1 million. The segment's net interest income grew 45% to $173.2 million, while noninterest income quadrupled to $129.9 million compared to Q1 2024.

SoFi's Loan Platform Business contributed significantly, adding $96.1 million to consolidated adjusted net revenue, with $92.8 million driven by $1.6 billion of personal loans originated on behalf of third parties.

The segment's contribution profit reached $148.3 million, a $111.2 million improvement from the prior year, with contribution margin expanding by 24 percentage points to 49%.

Total deposits grew to $27.3 billion, with over 90% of SoFi Money deposits coming from direct deposit members, the company reported.

Technology Platform and Lending Performance

SoFi's Technology Platform segment reported net revenue of $103.4 million, a 10% increase year-over-year, with a contribution profit of $30.9 million and a 30% contribution margin. During the quarter, the company launched a co-branded debit card program with Wyndham Hotels & Resorts and signed a new deal with Mercantil Banco.

The company expanded its Loan Platform Business with over $8 billion in new commitments, finalizing deals with Blue Owl, Fortress, and Edge Focus. Including this business, SoFi originated a record $7.2 billion in loans in the quarter and grew home loan originations by 54% year-over-year.

SoFi also reported improved credit performance, with the annualized charge-off rate for personal loans decreasing from 3.37% to 3.31% compared to Q4 2024, and student loans decreasing from 62 basis points to 47 basis points.

Financial Metrics and Balance Sheet

Net interest income reached $498.7 million for the first quarter, up 24% year-over-year, driven by a 23% increase in average interest-earning assets and an 82 basis points decrease in cost of funds.

The company's net interest margin improved to 6.01%, up 10 basis points sequentially from 5.91% in the previous quarter. SoFi noted that the average rate on deposits was 189 basis points lower than warehouse facilities, translating to approximately $515 million in annual interest expense savings.

Equity grew by $153.4 million during the quarter to $6.7 billion, representing $6.05 of book value per share. Tangible book value increased by $167.1 million to $5.1 billion, or $4.58 per share, up from $3.90 per share in the prior year period.

Fee Revenue and Guidance

Fee-based revenue reached a record $315.4 million, increasing 67% year-over-year. The Financial Services and Technology Platform segments together generated $406.5 million of net revenue, a 66% increase from the prior year period.

Following the strong first-quarter performance, SoFi's management raised its financial guidance for 2025, though specific updated guidance figures were not provided in the press release.

This article is based solely on information provided in SoFi Technologies, Inc.'s press release dated April 29, 2025. The content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Stock Titan and its writers make no representations as to the accuracy, completeness, or timeliness of the information. Investors should conduct their own due diligence before making any investment decisions.

Source: SoFI

FAQ

What was SOFI's revenue and profit in Q1 2025?

SOFI reported record net revenue of $771.8 million in Q1 2025, up 20% year-over-year, with a net income of $71.1 million and earnings per share of $0.06.

How many new members did SOFI add in Q1 2025?

SOFI added a record 800,000 new members in Q1 2025, bringing total members to 10.9 million, representing a 34% increase from the previous year.

What is SOFI's loan origination volume for Q1 2025?

SOFI originated a record $7.2 billion in loans during Q1 2025, including $1.6 billion through their Loan Platform Business on behalf of third parties.

How much did SOFI's Financial Services revenue grow in Q1 2025?

SOFI's Financial Services segment revenue more than doubled year-over-year to $303.1 million in Q1 2025, with net interest income up 45% and noninterest income quadrupling.

What is SOFI's deposit growth in Q1 2025?

SOFI's total deposits grew to $27.3 billion, with over 90% of SoFi Money deposits coming from direct deposit members.