SoFi Technologies Inc. reported a strong first-quarter performance, adding a record 800,000 new customers and delivering results that exceeded Wall Street’s expectations. The financial-technology company’s ability to both outperform in the latest quarter and raise its full-year guidance stood out, especially as many other companies have merely maintained or even trimmed their forecasts amid economic uncertainty.
Mizuho analyst Dan Dolev praised SoFi’s upbeat guidance in a note to clients, noting that raising forecasts while others remain cautious reflects a high level of operational stability. “Upping [the] guide when others, at best, maintain [theirs] is a sign of stability,” he commented.
SoFi now expects adjusted net revenue for the full year to fall between $3.235 billion and $3.310 billion, a boost from its earlier estimate of $3.200 billion to $3.275 billion. The company also raised its forecast for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), projecting between $875 million and $895 million — up from the previous $845 million to $865 million range.
Investors responded positively to the news, sending SoFi shares up nearly 6% in premarket trading on Tuesday.
The company posted adjusted net revenue of $771 million for the first quarter, which beat the $739 million average forecast by analysts surveyed by FactSet. SoFi attributed its strong top-line performance in part to increased investments in brand awareness, which have helped grow its customer base and expand market reach.
A standout area of strength was SoFi’s fee-based revenue, which climbed 67% year over year to a record $315 million. The company also remained profitable on a generally accepted accounting principles (GAAP) basis for the sixth consecutive quarter, earning 6 cents per share — twice the 3 cents per share that analysts had been expecting.
“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,” said SoFi CEO Anthony Noto in a statement.
In terms of lending, SoFi originated $5.5 billion in personal loans during the quarter, up 69% compared to the same period a year ago. Student-loan originations totaled $1.2 billion, a 59% year-over-year increase, while home-loan originations hit $518 million, marking a 54% rise.
The company also noted a positive trend in credit performance. SoFi reported a 3.31% annualized charge-off rate for personal loans in the first quarter, an improvement over the 3.37% rate seen in the fourth quarter of last year. This measure reflects the percentage of loans the company writes off as uncollectible. SoFi clarified that these figures account for a combination of asset sales, new originations, and delinquency sales.
If SoFi had not sold certain late-stage delinquent loans, the estimated annualized net charge-off rate for its personal lending business would have been 4.8% in the first quarter, compared to 4.9% in the prior quarter. This marginal improvement in credit health suggests that the company is managing risk effectively while growing its loan book.
Looking ahead to the second quarter, SoFi is projecting adjusted net revenue in the range of $785 million to $805 million. The company also expects adjusted EBITDA of $200 million to $210 million. These forecasts are slightly ahead of analyst expectations compiled by FactSet, which called for $783 million in adjusted revenue and $196 million in EBITDA.
SoFi’s continued momentum, expanding customer base, and improved profitability have made it one of the more resilient players in the fintech space. Its diversified business model — which spans lending, technology services, and financial products — appears to be yielding sustainable growth, even as broader economic conditions remain challenging.
Overall, SoFi’s strong quarter and raised outlook have reinforced investor confidence in the company’s long-term prospects. By beating expectations and boosting its guidance when many others are playing defense, SoFi has signaled that its strategy is working — and that it’s well-positioned to capitalize on future opportunities in the evolving financial services landscape.
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