SoFi Technologies (SOFI) surged over 8% on Tuesday during early trading after the fintech firm delivered stronger-than-expected first-quarter results and raised its full-year guidance.
The earnings beat—combined with a sharp uptick in new members and record fee-based revenue—helped reverse part of the stock’s recent volatility and reinforced investor confidence in the company's long-term strategy.SoFi reported adjusted earnings per share of $0.06 for the March quarter, doubling Wall Street expectations of $0.03, according to FactSet. Revenue climbed 33% to $770.7 million, outpacing analyst forecasts of $738.9 million and marking the firm’s fastest topline growth in five quarters.
CEO Anthony Noto credited the performance to across-the-board strength: “We delivered our highest revenue growth rate in five quarters, driven by new records in members, products, and fee-based revenue.” The company added 800,000 new members in the quarter, bringing its total to 10.9 million—up 34% year-over-year. Deposits grew to $27.3 billion, a 25% annual increase, boosting net interest income and trimming the company’s cost of capital.
Financial Services Growth Offsets Lending Headwinds
While loan originations grew 66% year-over-year to $7.25 billion—bolstered by a 54% jump in home loans and a 59% rise in student loan volume—analysts note that higher interest rates and federal relief programs continue to weigh on broader lending demand. Morgan Stanley projects just 5% growth in loan originations for the quarter, a sharp slowdown from last year's double-digit gains.
However, SoFi’s diversified model helped counteract these pressures. Financial services revenue more than doubled to $303 million, driven by strength in banking, investing, and credit card activity. Fee-based revenue soared 67% to a record $315 million, highlighting the firm’s ability to monetize new products and deepen customer engagement.
The company’s private investing platform, Cosmos, is set to ramp up in coming quarters, and management believes such diversified fee streams could offset cyclical lending trends. SoFi’s average customer still holds fewer than 1.5 products, signaling significant cross-sell potential as the user base expands.
Guidance Raised as SoFi Eyes Top-Tier Fintech Status
On the heels of the strong quarter, SoFi lifted its full-year 2025 revenue forecast to a range of $3.235 billion to $3.310 billion, up from $3.200 billion to $3.275 billion. Full-year EPS is now projected at $0.27 to $0.28, above prior guidance and consensus estimates. Adjusted EBITDA is also expected to climb to as much as $895 million, reflecting confidence in operating leverage and product innovation.
Noto, who has led the company since 2018, reiterated his ambition to turn SoFi into a top-10 U.S. financial institution by market capitalization. “We have a massive opportunity in front of us, and we’re putting our foot on the gas to ship new products and iterate on our current offerings,” he told Barron’s. With a market cap hovering near $14.6 billion, the company still has ground to cover—but its growth trajectory suggests momentum is building.
Volatility Lingers, but Fundamentals Strengthen
Despite a 111% gain over the past 12 months, SoFi shares remain down nearly 7% year-to-date, underscoring the stock’s roller-coaster behavior. After peaking at $18.50 in January, the stock plunged below $10 in March before rebounding to the $14 range in April. Analysts warn of continued turbulence tied to customer acquisition costs, macro headwinds, and credit risk, with GuruFocus flagging five cautionary indicators for the stock.
Still, analysts from Mizuho Securities described SoFi as “a beacon of stability in turbulent times,” while Jefferies cited the company’s record loan originations and upgraded guidance as signs of sustained demand, particularly from private credit investors. JMP Securities (JPM) recently initiated coverage with a “Buy” rating, calling SoFi an “inflection point story with exceptional growth potential.”
With second-quarter guidance expected in July and an investor day slated for November, SoFi’s ability to turn new members into long-term revenue—and maintain its innovation pace—will be closely watched by markets eager for clarity in a still-fractured fintech landscape.
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