SoFi Earnings: Strong Loan Volume Drives Rapid Revenue Growth

Key Morningstar Metrics for SoFi Technologies

• Fair Value Estimate: $18.00
• Morningstar Rating: ★★
• Morningstar Economic Moat Rating: None
• Morningstar Uncertainty Rating: Very High

What We Thought of SoFi Technologies’ Earnings

SoFi Technologies SOFI reported strong fourth-quarter earnings, thanks to excellent growth from both its financial services and lending segments. Net revenue increased 39.6% to $1.02 billion, while diluted earnings per share came in at $0.13. These results translate to a return on tangible equity of 9%.

Why it matters: Despite the good results, SoFi shares are trading lower on Jan. 30, which we largely attribute to high expectations, as there was little to dislike in the firm’s earnings report.

• While we still have some lingering concerns about the long-term reliability of SoFi’s loan platform growth, the current performance of the business is unquestionably strong. Loan platform revenue more than tripled from last year to $190.9 million, providing more than 40% of SoFi’s total growth.
• However, lending in general was strong, with net interest income increasing 31% from last year to $617.3 million thanks to a 34% increase in average loan balances. We expect loan growth to remain strong as SoFi’s recent share issuances have left it with plenty of room to grow its balance sheet with its common equity Tier 1 ratio at 22.8%

The bottom line: We will maintain our $18 per share fair value estimate for no-moat-rated SoFi. Despite weak performance so far in 2026, we think the shares are still materially overvalued following their impressive performance in 2025.

• We think the market is extrapolating too much growth from SoFi’s recent performance, which includes the launch of its loan platform segment. While this business has materially outperformed our initial expectations, we expect growth to slow over time.

Key stats: Along with earnings, SoFi gave its guidance for 2026, which includes its expectation for 30% net revenue growth. This is well above our own expectation of 19.2%, but we note that our short-term revenue projections for SoFi are heavily influenced by loan value assumptions due to its method of accounting.