The Stock of Sofi is Soaring as it Hits a Record Number of New Customers

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.

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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.

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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.

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Investors responded positively to the news, sending SoFi shares up nearly 6% in premarket trading on Tuesday.

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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.

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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.

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“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.

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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.

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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.

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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.

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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.

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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.

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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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