Fintech company SoFi Technologies (SOFI) announced first-quarter results that surpassed analyst expectations, significantly boosted by the addition of a record number of new customers. The positive financial performance and optimistic future guidance led to an increase in SoFi’s stock price in premarket trading on Tuesday.
Record Customer Acquisition and Q1 Performance
SoFi reported adding an impressive 800,000 new customers during the first quarter, marking a record for the company. This strong customer growth contributed to overall results that exceeded Wall Street models. The firm posted adjusted net revenue of $771 million for the quarter, topping the $739 million consensus estimate tracked by FactSet.
SoFi attributed this revenue strength partly to successful investments in enhancing brand awareness. The company also achieved profitability on a Generally Accepted Accounting Principles (GAAP) basis for the sixth consecutive quarter, reporting earnings per share of 6 cents, double the analyst forecast.
Robust Growth in Fee-Based Revenue and Originations
Fee-based revenue emerged as a significant driver of growth, reaching a new record of $315 million in the quarter, a substantial 67% increase compared to the same period last year.
Loan origination volumes also demonstrated strong year-over-year growth across key categories:
- Personal loans originated totaled $5.5 billion, up 69% from a year ago.
- Student loan originations reached $1.2 billion, a 59% increase year-over-year.
- Home loan origination volume grew by 54% year-over-year to $518 million.
Improving Credit Performance Noted
SoFi indicated that its credit performance is showing signs of improvement. The annualized personal loan charge-off rate for the first quarter was reported at 3.31%, a slight improvement from 3.37% in the fourth quarter. The company noted that these figures include the impact of asset and delinquency sales. Excluding these sales, SoFi estimated the annualized net charge-off rate for personal lending would have been 4.8% in the first quarter, down from 4.9% in the prior quarter.
Raised Full-Year Financial Outlook
Based on its strong start to the year, SoFi raised its financial forecast for the full year 2025. The company now expects adjusted net revenue to be between $3.235 billion and $3.310 billion, an increase from the previous guidance range of $3.200 billion to $3.275 billion. Furthermore, the outlook for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was also increased, now projected to be between $875 million and $895 million, up from the prior range of $845 million to $865 million.
Second Quarter Projections
Looking ahead to the second quarter, SoFi projects adjusted net revenue in the range of $785 million to $805 million. The forecast for adjusted EBITDA for the second quarter is set between $200 million and $210 million. These projections are generally above the current analyst expectations tracked by FactSet, which anticipate $783 million in revenue and $196 million in EBITDA for the period.
CEO Highlights Sustainable Advantage
SoFi Chief Executive Anthony Noto commented on the results, stating, “These results demonstrate the strength of SoFi’s unique strategy, combination of businesses, and product architecture, which give us a sustainable competitive advantage with the highest lifetime value per member.” His remarks underscored confidence in the company’s business model and future prospects.
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