SoFi Earnings: Broad Strength as Impressive Loan Platform Revenue Reaccelerates Growth

Key Morningstar Metrics for SoFi Technologies

• Fair Value Estimate: $14.00
• Morningstar Rating: ★★
• Morningstar Economic Moat Rating: None
• Morningstar Uncertainty Rating: Very High

What We Thought of SoFi Technologies’s Earnings

SoFi Technologies’ SOFI second-quarter results showed strength across business lines, with the loan platform business a standout. Revenue increased 43% from last year to $855 million, while earnings per share rose to $0.08 from just $0.01 in the prior-year period.

Why it matters: SoFi’s shares are trading meaningfully higher on second-quarter results, as revenue and profitability were significantly above company guidance.

• While performance was strong across the board, the new loan platform business was a major source of momentum. Revenue from the segment increased to $127 million from just $12 million last year, making it responsible for nearly half of SoFi’s revenue growth over that period.
• We see the loan platform business as less reliable, though, as the firm must continue to sign new deals to maintain current revenue. That said, the segment’s volume and margins have significantly outperformed our expectations as investor demand for SoFi’s loans has proved to be voracious.

The bottom line: As we incorporate these results, we expect to increase our $14 fair value estimate for no-moat-rated SoFi by 10%-15%. Despite the upgrade, we still see the shares as currently overvalued, given their dramatic performance over the past two months.

• We expect further momentum in the second half of 2025 as SoFi begins to originate loans outside its normal credit box on behalf of third-party investors, further expanding the pool of potential loans to be made.
• SoFi’s loan origination capabilities are larger than its balance sheet can support, but the firm has been able to monetize the strength of its sales channel through its loan platform business. Total originations rose 64% from last year and 22% from the first quarter, to $8.76 billion.

Key stats: Thanks to the strong quarter, SoFi increased its 2025 GAAP earnings per share guidance. It now expects to earn $0.31 per share, up from its prior guidance of $0.27-$0.28.