SoFi Technologies (SOFI) reported its strongest first-quarter revenue ever on Wednesday, posting adjusted net revenue of $1.087 billion—a 41% year-over-year increase that surpassed analyst expectations of $1.04 billion. The company's net income more than doubled to $166.7 million, while adjusted earnings per share came in at $0.12, matching the Zacks consensus estimate.
The results, released before the U.S. market open, underscore SoFi's ability to sustain robust growth even as the broader digital lending environment faces headwinds. CEO Anthony Noto described the quarter as 'excellent,' highlighting the company's expansion into digital assets as a key diversifier.
Lending Surge Drives Top Line
Lending remained the primary growth engine, with total originations skyrocketing 68% to $12.18 billion. Personal loans accounted for the bulk at $8.34 billion, followed by student loans ($2.61 billion) and home loans ($1.22 billion). Revenue from the lending segment jumped 55% to $642.4 million, reflecting strong demand across product lines.
On the funding side, total deposits rose by $2.7 billion to $40.2 billion, while net interest margin expanded 22 basis points sequentially to 5.94%. SoFi's loan-platform segment, which includes loan referrals and off-balance-sheet originations, contributed $140.8 million in adjusted net revenue. The company also secured $3.6 billion in new commitments through three separate partners.
Digital Assets Push and Stablecoin Launch
SoFi deepened its foothold in digital assets by launching SoFiUSD, a dollar-backed stablecoin designed to maintain a 1:1 peg with the U.S. dollar. The company is developing settlement tools in collaboration with partners such as Mastercard, signaling a strategic pivot toward crypto-native financial services.
Technology Platform Remains a Weak Spot
Not all segments performed equally. The Technology Platform segment saw revenue plunge 27% to $75.1 million, while enabled accounts fell 16% year-over-year following the departure of a major client that completed its exit from the platform before the end of 2025. Contribution profit for the segment dropped 61%, underscoring the ongoing drag from client concentration.
Credit Quality and Guidance
Credit metrics showed mixed signals. The annualized charge-off rate on personal loans improved 28 basis points year-over-year to 3.03%, though it ticked up from 2.80% in the prior quarter. Management noted that personal-loan credit performance remained within expectations.
SoFi reaffirmed its full-year 2026 guidance: at least 30% member growth, adjusted net revenue of approximately $4.655 billion, adjusted EBITDA of roughly $1.6 billion, adjusted net income near $825 million, and adjusted EPS of about $0.60. For the second quarter, the company projects adjusted net revenue growth of around 30%.
Market Context and Valuation
The stock has faced selling pressure ahead of the report, with 24/7 Wall St. recently setting a $19 price target and reiterating a 'hold' rating, citing a 28.34% year-to-date decline and a steep 49x forward earnings multiple. Despite strong growth, the Technology Platform contraction and elevated valuation leave limited room for error. SoFi added 35% more members, reaching 14.7 million, while product count grew 39% to 22.2 million.
As the market digests the report alongside major tech earnings and a looming Federal Reserve decision, SoFi's narrative shifts from pure growth to the sustainability of its lending momentum and the path to margin expansion. The stock's next moves will likely hinge on whether the company can narrow the gap between its lofty valuation and its evolving earnings trajectory.
