SoFi (SOFI) Q3 2026 Earnings Call Transcript

Financial highlights and performance metrics

Adjusted Net Revenue -- $1.4 billion, representing 44% year-over-year growth driven by record contributions from the Lending and Financial Services segments.

Adjusted EPS -- $0.18, reflecting a 64% increase year over year and 50% sequential growth from the second quarter.

Adjusted EBITDA -- $470 million, resulting in a record 34% margin and 70% growth compared to the third quarter of 2025.

Total Members -- 17.1 million, increasing 35% year over year following a record addition of 1.2 million members in the quarter.

Total Products -- 26.7 million, up 44% year over year as the company added a record 2.2 million products in the period.

Lending Adjusted Net Revenue -- $807 million, representing 68% growth year over year and record total loan originations of $16.9 billion.

Net Interest Margin -- 6.14%, reflecting a 16 basis point sequential increase due to higher asset yields and stable cost of funds.

Financial Services Revenue -- $525 million, increasing 25% year over year driven by growth in deposits, interchange fees, and brokerage revenue.

Technology Platform Revenue -- $87 million, decreasing 24% year over year due to a large client transition, although revenue grew 18% when excluding that specific client.

Total Deposits -- $51.3 billion, growing by $5.8 billion in the quarter as the company prioritized expanding its low-cost funding base.

Personal Loan Originations -- $12.6 billion, representing 69% year-over-year growth and a risk-adjusted margin of 7.6%.

Personal Loan Charge-off Rate -- 3.4%, reflecting an 80 basis point improvement year over year as credit performance remained within underwriting tolerances.

Guidance and financial outlook

Full-Year 2026 Revenue Guidance -- $5.04 billion, raised from the previous range of $4.75 billion to $4.85 billion to reflect third quarter outperformance.

Full-Year 2027 Revenue Guidance -- $6.4 billion, introduced as a preliminary outlook representing 27% growth compared to revised 2026 expectations.

Full-Year 2027 Adjusted EPS Guidance -- $0.90, reflecting an adjusted net income target of $1.28 billion for the fiscal year.

Products Per Member -- 1.56, up from 1.47 in the prior year period as existing members opened 51% of all new products in the quarter.

Fee-Based Revenue -- $571 million, accounting for 42% of total adjusted net revenue for the period.

Tangible Book Value -- $9.7 billion, representing $7.48 per share and a 25% increase compared to the third quarter of 2025.

Return on Tangible Common Equity -- 10%, achieved while maintaining a total capital ratio of 17% at the end of the quarter.

Loan Origination Fees -- $271 million, representing a 2.6-fold increase year over year as monetization shifted toward capital-light, fee-based revenue.

Anthony Noto warned that SoFi Plus growth fell below internal expectations during the third quarter because of the impact of nefarious actors, which necessitated operational changes that slowed member acquisition. Management reported that Technology Platform revenue decreased 24% year over year, primarily reflecting the transition of a large client off the platform prior to December 31, 2025.

SoFi Technologies, Inc. (SOFI +14.70%) reported record financial results for the third quarter of 2026, highlighted by a 44% increase in adjusted net revenue and a 64% rise in adjusted EPS. Management raised full-year 2026 guidance and introduced a 2027 outlook that targets $6.4 billion in revenue and $0.90 in EPS. The company reported record member and product additions, reaching 17.1 million members and 26.7 million products. Management stated that the business model is now capable of funding planned 2027 growth through organic capital generation without the need for additional capital raises.

Strategic priorities and growth drivers

CEO Anthony Noto stated, “Our focus is simple. More members, more products, and more optimized revenue per product to create the most value for our shareholders over the long term.” The company achieved the Rule of 40 for the 20th consecutive quarter, reporting a score of 79 based on 44% revenue growth and a 34% EBITDA margin.

Management identified eight distinct business lines that each generate over $100 million in annualized revenue, supporting a long-term goal of 100 million products by the end of 2030. The Financial Services segment reached record interchange fee revenue of $52 million, driven by $31 billion in total annualized spend across money and credit card products.

CFO Chris Lapointe noted that the company's 2027 guidance assumes two additional interest rate hikes and is supported by a total capital ratio of 17%, which remains well above regulatory minimums. The company integrated its acquisition of Composer into its investment products, launching systematic taxable and IRA accounts as part of a strategy to increase assets under management.

Executive remarks on quarterly performance

Speaker 1: Thank you, and good morning. Welcome to SoFi's third quarter 2026 earnings conference call. Joining me today to talk about our results and recent events are Anthony Noto, CEO, and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the investor relations section of our website.

Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release in the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q.

Anthony Noto: Good morning, Everyone. SoFi delivered an exceptional third quarter by any measure. We achieved 35% growth in members and 44% growth in products, leading to another quarter of accelerating revenue growth, reaching $1.4 billion, up 44% versus Q3 2025 and adjusted EPS of $0.18. These are strong results in any environment, but they are even more remarkable when considering how 2026 has turned out.

We now expect 2026 adjusted net revenue of $5.04 billion, up 40% year-over-year and higher than our prior guidance range of $4.75 billion-$4.85 billion. Adjusted EBITDA of $1.66 billion, which implies a 33% margin versus $1.6 billion previously. Adjusted net income of $840 million and a 17% margin versus $825 million previously. An adjusted EPS of $0.61 versus $0.60 previously.

After exceeding our 2026 original revenue guidance by $385 million, we now expect to achieve $6.4 billion in 2027 adjusted net revenue, which is 27% year-over-year growth. We also expect to deliver continued strong improvement in profitability, with EBITDA margin increasing to approximately 35%, resulting in $2.24 billion of adjusted EBITDA. We expect adjusted net income of $1.28 billion, reflecting a net income margin of approximately 20% and earnings per share of $0.90.

Our focus is simple. More members, more products, and more optimized revenue per product to create the most value for our shareholders over the long term. Starting this quarter and going forward, we are going to consistently talk about our business through the lens of these three drivers that matter most to our long-term value. How many members we serve, how many products each member uses, and thus total products, and how much revenue we generate per product.

Growth in members and products per member reflects the strength of our Financial Services Productivity Loop and the compounding effect it has on growth. It is also a critical reason we have achieved greater than the Rule of 40 for 20 consecutive quarters. Revenue per product reflects how well we monetize each relationship, which includes many variables, the most important of which are NIM and credit in lending, deposits and spending in SoFi Money, balances and spending in credit card, and return on assets in Invest.

Adjusted EBITDA reached a record $470 million, up 70% year-over-year, and a record margin of 34%, while adjusted net income reached $243 million, up 74% versus the prior year period, and at a record adjusted margin of 18%. Adjusted earnings per share were $0.18, up 64% year-over-year, and 50% sequentially. Our revenue mix continues to diversify toward our long-term goal of generating 50% of revenue from fee-oriented businesses.

The lending segment generated approximately $807 million of adjusted net revenue. Lending net interest income was $670 million, reflecting a strong consolidated net interest margin of 6.14%, which was up 16 basis points sequentially. This also reflects the continued benefit of loan growth, higher returns from interest collected as cash payments on our loans than our fair value marks with lower than expected losses in our deposit-funded balance sheet.

Financial Services revenue reached approximately $525 million, up 25% year-over-year. Financial Services products grew 44% year-over-year to $23.2 million. Within our Financial Services segment, SoFi Money and Relay continue to drive the greatest absolute growth, with both reaching over eight million products. Year-over-year, they grew 34% and 45% respectively.

Using period-end products as a simple proxy, annualized financial services revenue per product increased to approximately $90 in Q3, compared with $88 in the second quarter, with credit card and SoFi Crypto seeing the greatest increase in monetization. The improvement reflects the continued monetization of our member activity through deposits, spending, brokerage, lending referrals, subscriptions, effective interest rate on credit card balances, and other fee-based services. As our products season, we see additional opportunities to increase revenue per product through higher balances, greater transaction activity, increased assets under management, and additional cross-buy. SoFi Plus is the ultimate example of this model.

Financial services and technology platform growth

Not only does the product create a recurring revenue stream of $120 per product per year, but it also increases engagement across SoFi Money, Invest, Relay, and lending. In fact, approximately 83% of SoFi Plus members were existing SoFi members, and 25% of those members added another product after subscribing to SoFi Plus. There is no better example of the Financial Services Productivity Loop at work than SoFi Plus, and we remain confident that we can scale SoFi Plus to more than a million members as we continue to add to the value proposition and increase awareness among existing members. Our Financial Services segment revenue growth is therefore coming from both volume and monetization.

We are adding more members, increasing the number of products each member uses, and expanding the revenue generated by those products. This creates a powerful flywheel. Broadly used financial services products help us acquire members efficiently. Deeper engagement creates additional product adoption. Lending and fee-based products then allow us to monetize those relationships through both recurring net interest income and capital-light revenue streams. Our product growth reflects our ability to drive continuous innovation via our technology platform and brand building. Importantly, our technology platform not only supports our product growth and member services, it is also an attractive business in its own right.

Technology platform segment revenue totaled $87 million in the quarter, down 24% year-over-year, primarily due to the previously disclosed transition of a large client. Excluding revenue from that client in both periods, technology platform revenue grew 18% year-over-year. We remain confident in our ability to return to 25% revenue growth in a steady state for the technology platform business. We remain focused on increasing monetization of existing relationships and expanding the platform across issuer processing, financial and banking cores and ledgers, payments, and risk and fraud. As we approach the end of 2026, our conviction has never been greater. The results we are reporting today and the increased optimism we have for the future reflect the strength of SoFi's model.

Expanding product ecosystem and future targets

We have proven that as our member base scales, our product ecosystem becomes broader, engagement increases, and the opportunity to generate revenue from each relationship expands. That compounding dynamic is strengthening the durability of our success and increasing the lifetime value of our members, allowing us to achieve significant growth, improving profitability, and returns in both rising rate and declining rate environments. Let us not forget how far we have come in less than a decade. In 2018, we were largely a single-product company built around student loan refinancing with roughly 650,000 members, a tiny fraction of the 17.1 million members we serve today. Since then, we have completely transformed SoFi's culture, business, and impact on members.

Our team has been relentlessly focused on our everything financial app strategy and has built fully scaled businesses in Money, Invest, Relay, Credit Card, and the Loan Platform Business in just a few years. We became a nationally chartered bank, and we significantly scaled our lending franchise across personal loans, home loans, and in-school loans. In the last year, we have funded a new batch of startup businesses in SoFi Crypto, SoFi Plus, small-medium business lending, Big Business Banking, SoFi Pay, and SoFiUSD. Because of that unwavering focus, we now serve 26.7 million products, and no single product defines us. In fact, 87% of our products are financial service products, not lending.

Each of our businesses is built to grow on its own and make every other business stronger. Not too long ago, achieving $100 million in annual revenue was the milestone companies needed to achieve to go public. SoFi now has eight distinct businesses that each have more than $100 million in annualized revenue and are still growing at over 30% year-over-year in almost all cases. Specifically, we have one business with more than $2 billion in annualized revenue. We have one business with more than $1 billion in annualized revenue. We have three businesses with more than $300 million in revenue and three businesses with more than $100 million in revenue.

That is eight proven scale businesses that will drive our growth for decades to come. Not to mention the new startup businesses that I mentioned, which are not yet part of the Great Eight, but have higher growth and earlier-stage revenue, such as SoFiUSD, Big Business Banking, SMB, SoFi Plus, and Crypto. The ambitions we had for SoFi were bold in 2018, and our ambitions for the future of SoFi and the impact we can have in the lives of our members and clients are even bolder today.

Not everything we do will be successful, but our unwavering focus and execution have been critical in beating the 1% odds that a business can reach $100 million in revenue, not just once, but eight times. Today, less than a decade later, we see a clear path to achieving 100 million products by the end of 2030, which is a 4x increase from where we stand today. Our plan to reach that 100 million products by 2030 also includes having five of our businesses generating $1 billion in revenue or more, five more businesses generating at least $500 million in revenue, and another five generating at least $100 million in revenue.

Achieving our bold objectives will require our team to challenge not only the norms of the industry, but even the norms we've created over the last eight years by continuously innovating to create unmatched value for our members. I hope this provides a more tangible and quantitative perspective on what the future holds for SoFi and the clear path to these bold ambitions. Our improved outlook is rooted in three primary drivers, more members using more products, generating more revenue per product. That is the engine behind our durable growth and our path to 20%-30% returns on tangible common equity. We've had unprecedented performance thus far in 2026 and have great visibility for continuing to 2027 and beyond.

With 17.1 million members, we are still early in a very large long-term opportunity. With that, I'll turn it over to Chris.

Chris Lapointe: Thank you, Anthony. Before I walk through the numbers, I want to address two things, how we are putting our balance sheet and excess capital to work, and how our business model performed in a rate environment very different from the one we planned for. First, balance sheet and capital. Member demand for our loans continues to be strong, and our strategy of how we split the mix of Balance Sheet Loans versus LPB continues to deliver attractive returns. With strong credit and risk-adjusted margins, loans on the balance sheet continue to deliver durable and recurring net interest income that compounds over time.

Capital strength and macro resilience

In fact, in the third quarter, we generated $1.4 billion of cash revenue, including $927 million from net interest income, our fourth straight quarter above $1 billion of cash revenue. This built-in recurring cash revenue gives us better visibility into future revenue. The investments we made in Q1 and Q2 are now delivering 34% EBITDA margins and 18% net-income margins and provide sufficient organic capital generation to fund our lending business in 2027 and beyond. We are doing this from a position of strength. Our total capital ratio of 17% remains well above the regulatory minimum of 10.5% in our internal stress buffer, giving us significant excess capital to keep investing in high returning growth.

We are now at the point where our current capital position, in addition to our organic capital generation, is sufficient to fund our business and our planned growth in 2027. For clarity, our 2027 guidance does not require raising additional capital and no capital raise is assumed or needed in what Anthony laid out. We are confident we can execute that plan organically, given the balance sheet we have built, the capital we will generate organically from the business, and the position we are in today. Second, on the current macro environment.

Despite the unexpected rate environment we confronted this year, we delivered our third consecutive quarter of more than 40% revenue growth, are raising our full-year guidance, and giving 2027 guidance one quarter earlier than usual. As Anthony mentioned, we now have as much confidence in delivering strong growth in a high-rate environment as we do in a low-rate environment. Our hedges were highly effective in a volatile rate environment. We had over $800 million of fair value losses, which were largely offset by about $734 million of hedge gains.

This is clear evidence the program worked as intended as the hedge gain offset the move in benchmark rates, while the remainder of the fair value impact was driven by other inputs, which our hedges are not designed to cover. Our exceptional growth year to date and high confidence and visibility on future performance demonstrate that our business model is resilient to rate volatility. That is because of our model and our consistent focus on the three drivers that create the most long-term value for shareholders, delivering more members, more products per member, and higher revenue per product. Q3 demonstrated strength on all three. Let me start with members.

Member growth is the foundation of our financial results, driving both future revenue and our low-cost deposit funding. For the third quarter, we ended with 17.1 million members, up 35% year-over-year, and we added a record 1.2 million members. As members deepen their relationship with SoFi, product growth continues to outpace member growth. Over time, that lowers our acquisition cost per product and raises the lifetime value of each member. For the third quarter, total products grew 44% year-over-year to 26.7 million. We added a record 2.2 million products. Products per member rose to 1.56 from 1.54 last quarter and 1.47 a year ago.

Approximately 51% of new products came from existing members, and 37% of members now use two or more products, up from 33% a year ago. Revenue per product shows how well we monetize those relationships, and it increased in both financial services and lending this quarter. We calculate revenue per product as annualized quarterly segment revenue divided by period end products. Financial services annualized revenue per product was approximately $90, up from $88 last quarter. This was driven by interchange, credit card, and SoFi Plus subscription revenue. Lending annualized revenue per product was approximately $942, up from $920 last quarter. This was driven by growth in net interest income and loan origination fees.

Together, more members, more products per member, and higher revenue per product drove our 44% adjusted net revenue growth this quarter. Turning now to our segment performance, starting with lending. For Q3, these strong results were driven by growth in net interest income, which increased 57% year-over-year to $670 million. The balance of our growth came primarily from loan origination fees, which were $271 million, up 2.6x year-over-year. During the quarter, we saw continued record member demand for our lending products. Personal loan originations were a record $12.6 billion, of which $9 billion was originated for the balance sheet. Our core personal loan product generated a roughly 7.6% risk-adjusted margin in Q3.

This consisted of a weighted average coupon of 12.8%, an origination fee yield of 1.4%, funding cost of 3.1%, and annualized losses of 3.4%. Our ability to generate loans with attractive risk and reward profiles supports our strong revenue growth through both balance sheet lending and our Loan Platform Business. Student loan originations were $2.9 billion, up 96% from the same period last year. Home loan originations were $1.4 billion, up 44% from the prior year. Turning to financial services. For the third quarter, net interest income for this segment was $281 million, up 38% year-over-year, which was primarily driven by growth in member deposits. Non-interest income grew 13% year-over-year to $244 million for the quarter.

During the quarter, we achieved record interchange fee revenue in our Financial Services segment of $52 million, which was up 77% year-over-year and driven by $31 billion in total annualized spend across SoFi Money and credit card. We also achieved strong brokerage fee revenue of $18 million, which was up 47% year-over-year. Credit card, in particular, has been a bright spot, and we believe we've cracked the code on profitable customer acquisition and growth. This is evidenced by credit card revenue almost doubling from last quarter. in Q3, we originated approximately $3.8 billion of personal loans, home equity loans, and small business loans on behalf of our LPB partners.

That, combined with our referral fees and servicing, resulted in $153 million of total LPB revenue, up from $3.1 billion in originations and $143 million in revenue last quarter. We also took a significant step forward with LPB by transferring our first SMB and home equity loans through the platform. LPB monetization is driven by several factors, including mix of assets transferred, excess supply and demand, as well as timing and structure of new partnerships and extensions. This is a great product for us, as it allows us to serve more members in a capital-light manner, and our overall goal is to maximize variable profit. As a result, monetization will fluctuate from time to time.

Shifting to our Tech Platform segment. For the quarter, Tech Platform revenue was approximately $87 million, down 20% year-over-year from the transition of a large client. Excluding revenue from that client, revenue grew 18% year-over-year. Revenue growth was driven by further monetization of existing clients, as well as contributions from new clients. Year to date, we've added nine clients, which will continue to grow over time. Turning to our balance sheet. In the third quarter, total assets grew by $6.8 billion. This was driven primarily by $5.8 billion of loan growth and roughly $1 billion of growth in cash equivalents, and investment securities. Total company-wide cash at quarter-end was $3.6 billion.

At the end of the third quarter, our personal loans were marked at 103.3%, down approximately 140 basis points from the prior quarter. Our student loans were marked at 101.9%, down approximately 240 basis points from the prior quarter. Our home loans were marked at 101.5%, down approximately 330 basis points from the prior quarter. In each case, the decline was primarily driven by a higher discount rate. Collectively, there was over an $800 million negative impact from fair value marks, which was primarily offset by hedge gains during the quarter. On the liability side, total deposits grew by $5.8 billion-$51.3 billion, which included strong growth in member deposits.

Member deposit growth reflects more members choosing SoFi as their primary bank, and that funding base lets us grow higher-returning assets across our lending products. Our net interest margin was 6.14% for the quarter, up 16 basis points sequentially. This included a 22 basis point increase in average asset yields, partially offset by a one-basis point increase in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future. Tangible book value grew $2.5 billion year-over-year to $9.7 billion. The tangible book value per share at quarter end is $7.48, up from $5.97 a year ago, a 25% increase. This quarter, we generated a return on tangible common equity of approximately 10%.

We are reaching that level while still holding significant excess capital and growing the top line over 40%, and we see a clear path to higher returns as we put that capital to work as our business scales. Turning to credit performance. Consistent with Anthony Noto's comments on the overall health of the consumer, our credit performance remains very strong overall, performing in line with expectations and driving attractive risk-adjusted returns across all loan types. For personal loans, we saw very strong credit performance for the quarter. Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 3.4%, down approximately 80 basis points year-over-year and 30 basis points sequentially.

This was driven by an improvement in the underlying credit performance, as well as growth in average loans on the balance sheet. The on-balance sheet 90 day delinquency rate was 42 basis points, in line with the last quarter and the third quarter of 2025. For student loans, the annualized charge-off rate was 63 basis points, down six basis points from the prior year and up two basis points sequentially. The on-balance sheet 90-day delinquency rate was just 13 basis points, in line with last quarter and the third quarter of 2025. In terms of our regulatory capital ratios, we are very well capitalized.

Our total capital ratio of 17% at quarter end is well above the regulatory minimum of 10.5%, as well as our additional internal stress buffer. Similar to last quarter, we continued to deploy excess capital into high-returning loans, bringing our total capital ratio down by 180 basis points sequentially as we normalize toward the low to mid-teens, while remaining well above regulatory minimums. Let me finish with some additional color on our 2026 and 2027 guidance. For Q4 2026, on a segment level, we expect approximately $785 million of revenue in lending, $550 million of revenue in financial services, $90 million of revenue in technology platform, and corporate revenue in line with the third quarter.

For total adjusted net revenue of approximately $1.375 billion. For 2027, our preliminary outlook assumes two rate hikes in the year and a 24% effective tax rate. Overall, Q3 was a strong quarter, and we continue to have strong momentum in our business. More members, more products, and rising revenue per product showing up in revenue, margins, and returns. Let's now begin the Q&A.

Small business lending market strategy

John Hecht: Hey, guys. Thanks very much for taking my questions. SMB lending. It is a relatively new category for you guys. It seems like it has got a lot of momentum and a decent amount of strategic focus. Maybe take us halfway through what is the specific target market within SMB and the characteristics of the borrowers, and how do we think about the prioritization of that as we go into 2027?

Anthony Noto: Thank you, John. First thing I would say is the SMB business is at a very nascent stage. We have driven revenue over the last five years from lead referrals in the small-medium business. It really started when we hit COVID and the government was providing PPP loans for SMB companies, and we were having a lot of people come to SoFi looking for those loans, which we did not provide at the time. We quickly set up an HTML page for people to apply for the PPP application, and we realized there was a big opportunity in our existing consumer customer base to also provide SMB loans to them, as many were small business owners.

Over that five-year period, we have incrementally invested at a very low rate, think of it as a seed investment, to see if we could grow the business. It reached the scale in 2025 that it was clear to us it was time to become a principal in the business, and that is not just lending, but it will also be other products and services outside of lending, including checking and savings, et cetera. So we launched that business as a principal in 2026. I do not want anyone to think it is one of the Great Eight. It is not one of the eight businesses that are generating annual revenue of over $100 million.

It is still a startup business. But as you mentioned, it has great prospects and one we will invest in over time and will continue to grow. Now, getting the credit right is important. Building relationships and the unit economics are important. Why? Because these are high repeat customers. Businesses need capital to grow. When they take out a loan, it helps them grow. That gives them motivation and economic incentive to take out another loan and then another loan. Just like the largest corporations in our country, that capital fuels the growth.

So we want to make sure we build relationships first and foremost, achieve the right unit economics, and we continue to expand that over and over on a nice linear line. So we are really pleased with where we are, but it is nowhere near where it will be in the future.

Outlook and segment growth expectations

Kyle Joseph: Hey. Good morning, Anthony and Chris. Thanks for taking my question. Just want to hone in on the 2027 outlook a little more. If you could walk us through some of your high-level assumptions in terms of how you're thinking about each segment contributing to that outlook. Thanks.

Anthony Noto: Before Chris gives you the particulars, I just want to add a couple of points. This is a change in behavior for those who have been following us as a public company. We didn't change our behavior because we had the same visibility we've had in the past. We changed our behavior because of the visibility that we have. We've made a concerted effort throughout this year to invest in long-term durability of growth. You hear us reference it's exceeding the Rule of 40 for 20 consecutive quarters.

At the end of 2025, when we looked at the incredible growth opportunities we had in front of us that weren't currently funded in 2026, we made the conscious decision to accelerate our investment in those startup businesses that are not in the Great Eight. We needed to drive revenue that would cover those expenses and still deliver the earnings that we had previously given an outlook for in 2026 and beyond. We sit here now in 2026 with $1.4 billion reported in Q3 of revenue. We also generated $1.4 billion of cash revenue in the quarter, which means we have built a sustainable top-line revenue number that can allow us to continue to invest into the future.

Not just invest in the future in the new businesses, but deliver to the investors greater profitability. Our net income margins for 2027 are 20%. We will still be growing significantly faster than any other financial services company and many technology companies in 2027 when hitting the low bound range of our long-term net income margins and the mid-range of our long-term EBITDA margins. We are going to continue to deliver both revenue growth and good profitability growth with expanding margins, and most importantly, we will continue to move up towards our goal of return on tangible common equity of 20%-30%.

There has been no point in the company's history than where we are at right now, where we control our own destiny more than we have in the past. Our conviction on our business and the visibility of our business is as strong as it is to give you guidance at the end of the third quarter of 2026 for all of 2027. Chris, let us go through the segment.

Chris Lapointe: Yeah. In terms of the overall 2027 guidance as it relates to the segments, we are expecting lending to grow 25% year-over-year. We are expecting tech platform to return to growth of 25% year-over-year, and we are expecting our Financial Services segment to grow 35% year-over-year. From a margin perspective, we are expecting a margin profile generally in line with where we are from a segment perspective right now.

Revenue per product monetization metrics

Andrew Jeffrey: Hi. Good morning, guys. Appreciate you taking the question. I like the focus on the ARPU KPI, and obviously member growth has been fantastic. Anthony, can you sort of dimensionalize TAM for us? I think you've talked about 40 million-50 million potential members. Where does ARPU go? Can we think about this ultimately as somewhere in the neighborhood of a $30 billion TAM? How are you guys thinking about that over the next several years?

Anthony Noto: Yeah, I don't mean to correct you, but I just want to make sure people understand the difference. Typically, when the word ARPU is used, or acronym, it's average revenue per user. Our monetization metric that we reference in the earnings call, and we've referenced in the past, is revenue per product, not per user. And obviously, a member is our user definition, and the products per member are greater than one, and their revenue per product is on an individual product basis. What I'd say is this, you have to look at it at two different levels.

One, we shared with you the annualized revenue per product rates for lending and the annual revenue per product for non-lending FS businesses. So there's a lot of upside in many of our individual businesses, and I'll kind of walk through them. On the financial services side, we have significant upside in revenue per product in Invest. The ratio of the revenue that we generate relative to our assets there is well below benchmarks. That will increase based on a number of factors. One, increased assets in that account. Two, more products and services, which will also bring in more assets that involve fees.

So certain retirement accounts and trust accounts are very attractive from a revenue relative to AUM standpoint. In addition to that, we'll continue to benefit from more activity across the products in each individual account. So obviously, options and margin create more revenue per asset than the rest of the revenue streams, and those are products that people don't use when they first open an account. Many of our investors are new and novice investors, but they quickly become very talented investors and very astute to the different ways to drive returns. So that's on the Invest side. The credit card side, we're just getting started. The monetization of the credit card business is really kicking in.

We've developed a very good playbook, which I won't go into detail because I don't want anyone to copy in the credit card business. But we're building our credit card business in a responsible way, and we feel like we've nailed the ability to leverage the Financial Services Productivity Loop to not just acquire new card members, but for those card members to use our card as top of wallet from a privacy standpoint. Our effective interest rate there is going up by the day because we are not utilizing the very costly zero balance transfer initiatives to do that. A lot of upside in credit card as that effective interest rate goes, but also as balances increase.

In SoFi Money, as deposits grow, our monetization within SoFi Money increases, and we continue to see increasing deposits on a per account basis as it relates to that. Someone mentioned, or John asked the question about the SMB business. Significant monetization opportunity as it relates to that. Our LPB business, the monetization is going to be relatively range bound, so I would not put a lot of expectations around that. SoFi Plus, great monetizing business. We will add more products and services to that over time. Today it is $10 per month. You could see us adding some premium services that have average revenue per product on top of that.

As you think about the lending businesses, I would say they generally are pretty stable. Personal loans, student loans, in-school loans, and home loans are all relatively stable as it relates to revenue per product. There is a lot that goes into that. Obviously, the average loan size, the weighted average cost of capital, or sorry, the weighted average coupon that we charge, the loss rates that we have, and our cost of funds impact all of that. But they are relatively stable and an easier way to kind of forecast the revenue that we generate off of the assets on our balance sheet as it relates to loans. But I do want to make the broader point.

The weighted average revenue per product will likely come down over the time period of 2026-2030 because the mix of the lower revenue per product businesses is going to grow faster and increase relative to the higher revenue per product businesses in lending. That is not a bad thing. It is not a bad thing because that is more than offset by the growth in products of those financial services businesses versus the growth of the products in the lending business.

In totality, we believe we have a competitive advantage with the highest lifetime value, which allows us to deliver the best rates on loans, the best rates on checking and savings, the best products and services you can get outside of the products with free certified financial planners and other things of great value in SoFi Plus. So I would think about the products growing, as we mentioned, to 100 million. I would think about the members growing to a point of at least getting to two products per member. In addition to that, you can keep average revenue per product flat to slightly down. Our own individual forecast has it down, but it's going to depend on the mix.

Organic funding capacity and interest rates

Dan Dolev: Hey, guys. Excellent results today. Congrats. Maybe Chris, can you expand a little bit more on the ability to fund 2027 growth organically? Thank you so much.

Chris Lapointe: Sure. Thanks, Dan. Anthony made this point on the call, and I reiterated it, but our 2027 outlook is going to be funded organically through two levers. First is utilization of existing excess capacity, and the second is through organic capital creation through our expanded earnings that we outlined. In terms of that first lever, today we have about $9.6 billion of equity capital. That is tier one plus tier two capital, and that translates to about $71 billion of risk-weighted asset capacity, and that is assuming a 13.5% risk-based capital ratio, and that is $15 billion above where we are today at $56 billion of risk-weighted assets.

In terms of the second lever, organic capital creation, we just guided to approximately $270 million of net income in the fourth quarter and $1.28 billion of full-year 2027 net income. That earnings plus stock-based compensation translates to approximately another $14 billion of incremental risk-weighted asset capacity at that same risk-based capital ratio of 13.5%. So between the two levers that we have, we have about $29 billion of risk-weighted asset capacity, which is not planned for nor required to meet our 2027 guidance. As we look beyond 2027, our continued expansion in ROEs as well as organic capital creation is what is going to fund and support our overall growth.

Devin Ryan: Thanks. Good morning. Question on interest rates and implications on the model. Obviously, this year has developed differently than thought a few months ago even, and going back to the beginning of the year as well, with rates continuing to kind of bounce around here. But you are still performing quite well on that front. So as we think about a world where rates potentially shift again and potentially lower, how should we think about the other side of that equation? The hedge portfolio seems like it is working quite well.

Would lower interest rates or abrupt change from here still be a tailwind to the model or are there other offsets just based on how you guys are set up? Thanks.

Anthony Noto: I would say two things. First, the last time rates went up prior to this, I would say last 18 month time period, we actually slowed our growth because I was concerned about the macroeconomic environment and higher for longer. Part of that decision was also based on what the state of our other businesses were outside of lending and what our capital position was. We had a very unique opportunity in 2026 to test our ability to grow through a higher rate environment and how the business would perform.

What afforded us that opportunity is that we had a lot more capital on our balance sheet, our business was a lot more diverse, and we could lean into it to see if we had the ability to raise the weighted average coupon that we charge relative to the higher benchmark rates to offset that and keep our unit economics where they were, in addition to also hedging other business. What I said in my comments is exactly how I feel. I think we can operate just as well in a high-rate environment as we can in a low-rate environment. You never know what you can truly do until you get there, but the results are very clear.

Growing revenue at 44%, faster than we did in the prior two quarters of the year with rates being the most volatile that they have been, is a true testament to the demand for our products and our ability to meet that demand very well. In a lower rate environment, there are businesses that do better than others. The housing market will pick up meaningfully. That is a low-capital business. In some ways, it becomes a better margin business with less capital because those are agency mortgages that we do not have to hold on our balance sheet.

That said, they do not contribute to the visibility of earnings the way that personal loans do or student loans given the duration of those loans relative to the home loans going off the balance sheet. There will be gives and takes, but our outlook that we have provided is one that we can deliver if rates stay where they are and go higher, and one we can deliver if rates go lower. I will let Chris add in any particulars.

Chris Lapointe: No, nothing else to add aside from what you just said.

Loan platform demand and personal loan growth

Patrick Moley: Yeah, Good Morning. Thanks for taking the question. Chris, maybe just following up on the segment framework you laid out. If I take the 2026 guide at the 4Q segment level and then apply the growth rates that you gave there for 2027, I get something like $6.7 billion, which is about $300 million above the guide. So maybe could you just help me square that difference? Is that just a step up in the corporate line or is it conservatism that you baked into that number? Thanks.

Chris Lapointe: Yes. There's a slight uptick in the corporate line is the direct and straightforward answer.

Patrick Moley: Okay. Thank you.

Kyle Peterson: Great. Good morning, guys, and nice results. Wanted to ask on the Loan Platform Business, nice to see the volumes this quarter push back up. We are above expectations. So maybe if you could speak a little more to what the demand environment looks like there, both from existing and potential new partners. Any color there would be great.

Chris Lapointe: Overall demand remains really robust and strong. We just had record originations that we did on behalf of others of $3.8 billion and really strong revenue at $153 million. Overall demand that we are seeing remains extremely strong across all asset types. So our traditional unsecured personal loan demand from existing partners as well as new partners continues to grow. We just signed up two new partners in this quarter, and we are in several other discussions with others. We talked about during our last quarterly earnings call that we signed a partnership with BasePoint for $3 billion over three years of SMB loans. So there is really strong demand from capital markets participants there.

As Anthony mentioned, it is a relatively small part of the business today, but we are leaning into it and we will continue to expand. We started issuing our first closed-end seconds through the platform as well, and there's sufficient demand to continue growing well beyond where we are today. So where you're going to see the growth is going to continue to be sustained momentum in our unsecured personal loans. But more importantly, increasing demand from closed-end seconds as well as other asset types. We're already pacing ahead this quarter ahead of our $3.8 billion of originations that we did in Q3. And overall take rates are strong in this quarter.

Technology platform scale and strategy

Lance Jessurun: Hey, guys. Thanks for taking my question. On the tech platform, you've guided the segment to 25% growth next year. Can you help us discuss how much of that comes from third-party clients versus your own products running on the platform? And then the nine clients this year, how does that ramp into that number?

Anthony Noto: Yeah, what I'd say is I don't look at the business that way. We're building a technology platform that serves SoFi. We have the most complex needs of any fintech company, given we have the broadest array of products available solely on a digital platform. We built the technology platform set of businesses because those were things that SoFi would need over time. But it also turns out that the industry needs them as well. And given the product superiority of what we're building, our issuer processing is world-class. We have the most modern core in the cloud now that SoFi's now onboarding new members to.

Not only do we have a core that we're using for checking and savings, but Big Business Banking was built on the back of the core. Not only that, we were able to launch Crypto buy, sell, and hold on the back of the core. You will see our product evolution and launches being faster and faster because we own our own core, and it is the most modern in the cloud. In addition to that, we have built out payments as a service or payment hub, which again, we do not have to rely on other people to provide.

The fourth growth pillar is fraud and risk, which clearly at our scale of 17 million members, $1.4 billion of revenue this quarter, and 27 million products, we are getting attacked constantly, but doing a great job of defending our members' assets as well as our shareholders' business. When we build products for SoFi, we are building them and selling them to other people, and we will generate revenue from both of those assets. Because we are a Fed bank holding company and we are a national OCC bank, the relationship between SoFi Tech Solutions and the bank is one that has to be at arm's length.

They actually have to negotiate arm's length negotiations and rates and fees on those services. The way I think about it is that revenue that the SoFi businesses are paying SoFi Tech Solutions is cost we would otherwise have going outside the system. Instead, they are in the system, and they are being allocated to the assets that are being built appropriately. I could not even tell you what the SoFi revenue number is in the SoFi Technology platform. I know where to look it up if I want to look at it, but it is not something I think about. Why do I not think about it?

Because we are building a business that can grow products to 100 million members by 2030, that can grow members to support that of about 50 million. That is going to require great technology scaling and great innovation as we start to enter an entirely new era of two technology super cycles with AI and blockchain, which we are capturing faster than any other fintech in the U.S., and quite frankly, faster than any large bank. We are the only national bank that has issued a payment stablecoin and tokenized deposits. We are the only national bank that has all of its products available on a digital platform and no need to speak to anyone to use those products.

That requires great technology in a world that is wrought with people that are trying to attack us, at the same time ensuring we have the reliability 24/7, 365 for our members. It is an incredible strategic asset for us that manifests in value creation across internal businesses and external businesses, and we have an obligation to quantify that value given we are a regulated bank.

Personal loan pricing and origination fees

Moshe Orenbuch: Great. Thanks. Chris, one of the areas of pushback that I get from some investors is just the sheer amount of personal loan originations and how much that's grown, and it appears, we don't have the industry data yet, that it's grown faster than the industry. Could you talk a little bit about what your forecast is going into 2027 on that? How do you think about the ability to originate either at these levels higher or where are you thinking? Thank you.

Chris Lapointe: Yep. Absolutely. We do expect continued momentum in the PL business. But where you're going to see the growth in 2027 is going to be coming from other asset types like our home loans businesses as well as SLR. So you're not going to see the same type of magnitude in overall originations in the PL business. But at the end of the day, what we're focused on is delivering the best risk-adjusted returns that we can for our shareholders, and we're delivering really strong returns through our personal loans business.

Right now, our risk-adjusted margin for PL is north of 7.5%, and that's increased by over 100 basis points year-over-year, primarily as a function of an increase in origination fees, which are up 2.5x year-over-year, but also from improving losses. Net-net, we're focused on risk-adjusted returns at the end of the day. We do expect continued momentum in the PL business just given the overall market opportunity that we have today. But you are going to see a little bit of a mix from personal loans towards home loans and student loan refinancing.

Will Nance: Hey, thanks for squeezing me in here. I wanted to ask a question on the pricing environment and the personal loan business. It looks like the weighted average coupons have been ticking down for the last couple of quarters, and obviously it's great to see things like net interest margin holding in despite higher funding costs. I was wondering if you could provide some color on just how pricing has evolved in personal loans and how you're thinking about kind of the moving pieces there between coupon rates and spread and how much that maybe is being made up on the origination fee side.

Chris Lapointe: Yeah. I think you hit on it with the origination fees. We're continuing to price originations to deliver really attractive risk-adjusted returns. It's important to note that we're not optimizing for any single variable in isolation in that equation. Historically, weighted average coupon was the primary pricing lever for us. Increasingly, origination fees are an important part of the overall economics. Today, more than 50% of all new PL originations include these origination fees, and we generated approximately $270 million of origination fee revenue in Q3. Like I just said, up 2.5x year-over-year and 36% sequentially, with the vast majority coming from personal loan borrowers.

So if you look at WAC plus our current origination fee yield, it was generally flat sequentially. After you incorporate lower losses and funding costs, our overall risk-adjusted return increased by about 100 basis points year-over-year. I think the other thing I would note is the overall power of origination fees and what it does to the return profile of these assets. It's why we're leaning in so heavily into driving that mix and giving our members better selection.

If you look at an asset or a borrower who pays an origination fee, the overall CPR is about 600-700 basis points better than someone who takes out a loan without an origination fee, which thereby extends the overall life of the asset. In addition to that, the CDR that we've observed on borrowers with an origination fee is about 40-50 basis points better than those without. Net-net, you are seeing about 200-300 basis points of ROE improvement from assets that have origination fees versus those that do not. We are looking at the overall mosaic focus on risk-adjusted margins at the end of the day, but origination fees are playing a much more important piece to the puzzle today.

Bank funding strategy and member deposits

Don Fandetti: Hi, good morning. Can you talk a little bit about your bank funding and kind of the confidence in your ability to grow checking as a percentage of deposits relative to online savings and just lower the overall funding cost of the company?

Anthony Noto: Yeah. I would not look at our APY on our products that we give consumers the way you would look at a traditional bank. One, we're not just a bank. We use technology to deliver our services. We're a fintech, and part of being a fintech means we don't have a physical presence for people to walk by and stop in and open an account. Everything we do is delivered digitally. We don't do outbound calls to acquire people either. So our presence is driven by the digital distribution that we have. One element of digital distribution is what's your value prop? One element of the value prop is what's the leading interest rate?

So we use the interest rate for customer acquisition to replace the cost of physical locations, to replace the cost of human beings, and it's a great return for us. So we think about that interest rate not just in aggregating deposits, but we also think about it aggregating new members, and those new members then take out more products. The more products they take out against the revenue per product, we drive more returns, and it drives the flywheel. SoFi Money is the tip of the sword. It is the best product that leads to cross-buy. It also gives us a lot of data on our member. It gives us information on what they're paying on their mortgage.

It gives us information that they may have loans. It gives us information they may have credit card debt. It gives us information they may have excess cash sitting there that's not being invested or not earning interest. So it's a strategic product that you can't just look at as a cost of funds. Chris will explain this in more detail in a second. It's actually cheaper for us to use brokered deposits to fund our business than SoFi Money deposits. We will use a mix of them to do it. We're managing to an overall return basis. When we think about an overall return basis, it starts with our net income margin.

We've said that we can have a net income margin of 20%-30%. We're forecasting for 2027 a 30% incremental net income margin, and that should become our long-term margin over time. But we've given a range of 20%-30%. We'll actually be at 20% net income margin next year and still growing incredibly fast. So we're looking at what is our net income margin and then what is our revenue to equity ratio. As our mix moves from 42% of fee-based revenue to 50% fee-based revenue or higher, the revenue per equity ratio will approach one, and that will get us to a return of 20%-30%.

I'll let Chris give you the particulars on how we think about cost of funds overall and the role of brokered deposits and retail deposits.

Chris Lapointe: Yep, absolutely. Overall, we have a full set of tools to fund our originations, including member deposits, brokered CDs, warehouse facilities, and capital markets activities through securitizations and whole loan sales. When you see periods of a lot of rate volatility like we've experienced over the course of the last few quarters, we're going to leverage things like brokered CDs and wholesale funding more heavily. However, the decision is not simply whether wholesale funding is cheaper than deposits in isolation, but rather the marginal cost of funding incremental asset growth versus repricing the broader member deposit base. We use a mix that provides the best combination, to Anthony's point, of cost, liquidity, duration, and risk-adjusted return.

Our member deposits remain the long-term foundati