SoFi Technologies, Inc. Common Stock 2026 Q3 Earnings Call

Good morning, everyone. SoFi delivered an exceptional third quarter by any measure. We achieved 35% growth in members and 44% growth in products, leading to another quarter of accelerating revenue growth, reaching $1.4 billion, up 44% versus Q3 2025 and adjusted EPS of $0.18. These are strong results in any environment, but they are even more remarkable when considering how 2026 has turned out. Nine months into the year, the environment looks different than what we expected in January. Our original 2026 guidance assumed two rate cuts. Instead, we have already had one rate hike, and today we are positioned for two more rate hikes this year. The good news is we are executing as well as we ever have. In fact, I now have as much confidence in our ability to drive durable growth in a high-rate environment as I do in a low-rate environment.

Given the momentum in the business and our ability to execute in a higher rate environment, we are raising our full year 2026 guidance to reflect our Q3 outperformance and higher expectations for Q4. We now expect 2026 adjusted net revenue of $5.04 billion, up 40% year-over-year and higher than our prior guidance range of $4.75 billion-$4.85 billion. Adjusted EBITDA of $1.66 billion, which implies a 33% margin versus $1.6 billion previously. Adjusted net income of $840 million and a 17% margin versus $825 million previously. An adjusted EPS of $0.61 versus $0.60 previously. This guidance implies Q4 revenue of approximately $1.375 billion, which equates to year-over-year growth of 36%. Adjusted EBITDA of $492 million, adjusted net income of $276 million, which is a 20% net income margin and adjusted EPS of $0.19.

Momentum across the business is broad-based and visibility remains strong, giving us confidence to provide preliminary 2027 guidance above our previous outlook. After exceeding our 2026 original revenue guidance by $385 million, we now expect to achieve $6.4 billion in 2027 adjusted net revenue, which is 27% year-over-year growth. We also expect to deliver continued strong improvement in profitability, with EBITDA margin increasing to approximately 35%, resulting in $2.24 billion of adjusted EBITDA. We expect adjusted net income of $1.28 billion, reflecting a net income margin of approximately 20% and earnings per share of $0.90. As Chris will walk you through, our plan is funded by our organic capital generation without the need for raising additional capital.

With expected 2026 revenue of $5 billion, we have reached sufficient scale and revenue and diversification across the individual businesses that it only requires someone to understand the trends in our member growth, product growth, and revenue per product to assess and forecast the business. Importantly, we allocate our resources to these three measurements to grow our business and execute our strategy. Clearly, each business has unique drivers of its respective revenue per product, but the trend over the last two-plus years illustrates a modest range and strong durability for these metrics. Our focus is simple. More members, more products, and more optimized revenue per product to create the most value for our shareholders over the long term. Starting this quarter and going forward, we are going to consistently talk about our business through the lens of these three drivers that matter most to our long-term value.

How many members we serve, how many products each member uses, and thus total products, and how much revenue we generate per product. Growth in members and products per member reflects the strength of our Financial Services Productivity Loop and the compounding effect it has on growth. It is also a critical reason we have achieved greater than the Rule of 40 for 20 consecutive quarters. Revenue per product reflects how well we monetize each relationship, which includes many variables, the most important of which are NIM and credit in lending, deposits and spending in SoFi Money, balances and spending in credit card, and return on assets in Invest. Together, they drive durable revenue growth, lifetime value, and our path to 20%-30% returns on tangible common equity, and we will report on them consistently every quarter. Now on to our results. Member activity remains very strong.

We continue to attract above-average earners while spending, saving, and investing trends remain positive. Credit performance once again improved and remains firmly in line with our expectations, with all-in personal loan net charge-off of 3.4%. We are not seeing evidence of a slowdown in how many members borrow, spend, save, or invest. The third quarter demonstrated the continued strength of our strategy, achieving a Rule of 40 score of 79 when combining revenue growth of 44% and an EBITDA margin of 34%, marking the 20th consecutive quarter of exceeding the Rule of 40. We grew members 35% year-over-year to 17.1 million. Total products increased approximately 44% year-over-year to 26.7 million. 51% of new products in the quarter were once again opened by existing members. Products continue to grow faster than members, and products per member increased to approximately 1.56 compared to 1.47 a year ago.

This reflects deeper engagement with our platform, continued growth of products per member across our cohorts, and the increasing strength of our Financial Services Productivity Loop strategy. Adjusted EBITDA reached a record $470 million, up 70% year-over-year, and a record margin of 34%, while adjusted net income reached $243 million, up 74% versus the prior year period, and at a record adjusted margin of 18%. Adjusted earnings per share were $0.18, up 64% year-over-year, and 50% sequentially. Our revenue mix continues to diversify toward our long-term goal of generating 50% of revenue from fee-oriented businesses. Total Q3 fee-based revenue was $571 million, representing 42% of total revenue, compared to 39% in the second quarter. The lending segment generated approximately $807 million of adjusted net revenue.

Lending net interest income was $670 million, reflecting a strong consolidated net interest margin of 6.14%, which was up 16 basis points sequentially. This also reflects the continued benefit of loan growth, higher returns from interest collected as cash payments on our loans than our fair value marks with lower than expected losses in our deposit-funded balance sheet. We generated a record $16.9 billion of total loan originations. Loan Platform Business originations reached approximately $3.8 billion, up $704 million from the second quarter, providing additional capacity to serve member demand while expanding our capital-light, fee-based revenue opportunity. Lending product growth remains strong and broad-based. Total lending products increased approximately 39% year-over-year to 3.4 million. Personal loan products grew 45% year-over-year, student loan products grew 22% year-over-year, and home loan products grew 50% year-over-year.

Lending revenue grew faster than lending products, reflecting the increasing monetization of our lending relationships. Using period-end products, annualized lending revenue per product increased to approximately $942 in Q3, compared with $782 in the third quarter of 2025. Financial Services revenue reached approximately $525 million, up 25% year-over-year. Financial Services products grew 44% year-over-year to 23.2 million. Within our Financial Services segment, SoFi Money and Relay continue to drive the greatest absolute growth, with both reaching over 8 million products. Year-over-year, they grew 34% and 45% respectively. We are achieving attractive growth rates in other products as well. Invest grew 37% year-over-year, reaching over 4 million products. Credit card products increased 67% year-over-year to approximately 656,000, with a high percentage of primary card users and strong credit performance.

We also ended the quarter with over 500,000 SoFi Crypto products and approximately 275,000 SoFi Plus subscribers. The breadth of products gives us multiple ways to acquire members, deepen engagement, and create additional monetization opportunities. Using period-end products as a simple proxy, annualized financial services revenue per product increased to approximately $90 in Q3, compared with $88 in the second quarter, with credit card and SoFi Crypto seeing the greatest increase in monetization. The improvement reflects the continued monetization of our member activity through deposits, spending, brokerage, lending referrals, subscriptions, effective interest rate on credit card balances, and other fee-based services. As our products season, we see additional opportunities to increase revenue per product through higher balances, greater transaction activity, increased assets under management, and additional cross-buy. SoFi Plus is the ultimate example of this model.

Not only does the product create a recurring revenue stream of $120 per product per year, but it also increases engagement across SoFi Money, Invest, Relay, and lending. In fact, approximately 83% of SoFi Plus members were existing SoFi members, and 25% of those members added another product after subscribing to SoFi Plus. There is no better example of the Financial Services Productivity Loop at work than SoFi Plus, and we remain confident that we can scale SoFi Plus to more than 1 million members as we continue to add to the value proposition and increase awareness among existing members. Our Financial Services segment revenue growth is therefore coming from both volume and monetization. We are adding more members, increasing the number of products each member uses, and expanding the revenue generated by those products. This creates a powerful flywheel. Broadly used financial services products help us acquire members efficiently.