Sofi Technologies, Inc. · NASDAQ:SOFI
Sofi Technologies — Q1 2025 Earnings Presentation
47 slides from Sofi Technologies's earnings presentation, Apr 29, 2025
Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 2025 April 2025
Slide 2: Disclaimer
Disclaimer Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, ROTCE, Adjusted Net Income, Adjusted Net Income Margin, Incremental
Slide 3: Highlights Q1 2025
Highlights Q1 2025 Durable Growth and Strong Returns Product Innovation and Brand Building • Record Adjusted Net Revenue of $771M (+33% YoY), an • Set new records in members and products. Added a record acceleration and fastest growth in five quarters 800,000 new members and 1.2 million new products
Slide 4: Continuous Innovation and Brand Building
Continuous Innovation and Brand Building SoFi has built a diversified, digital financial services platform through continuous innovation SoFi is a strong and trusted brand • Naming rights partner of SoFi Stadium, home of the L.A. Rams and L.A. Chargers • Presenting Sponsor of the tech-infused golf l
Slide 5: One-Stop Shop for Digital Financial Services
One-Stop Shop for Digital Financial Services SoFi’s digital-first platform helps members realize their ambitions SoFi has developed a suite of financial products that offers the speed, selection, content and convenience that only an integrated digital platform can provide Member Banking Credit Card
Slide 6: Financial Services Productivity Loop
Financial Services Productivity Loop FSPL drives high lifetime value of members leading to a sustainable competitive advantage Financial Services Productivity Loop • Tremendous opportunity with digitally-oriented generations which comprise half of the American population • Brand awareness brings new
Slide 7: Members and Products
Members and Products Strong member and product growth demonstrate the power of innovation and brand-building (1) (2) Members (in thousands) Products (in thousands) CAGR: 52% 10,916 CAGR: 54% 10,127 15,915 14,745 7,542 11,142 5,223 7,895 3,460 5,173 2021 2022 2023 2024 1Q25 2021 2022 2023 2024 1Q25 Y
Slide 8: Durable Growth
Durable Growth SoFi’s diversified business model is built to provide strong growth through different environments (4) (5) (6)* Adjusted Net Revenue (in millions) Adjusted EBITDA (in millions) Adjusted Net Income (in millions) 2025 Guidance 2025 Guidance 2025 Guidance $3,235 - $3,310 $875 - $895 $320
Slide 9: Diversified Revenue
Diversified Revenue Revenue has shifted towards more capital-light, fee-based revenue Adj. Net Revenue Fee-Based Revenue Fee-Based Revenue Mix Tech Platform and Financial Services $ in millions $ in millions $1,626 $1,262 $1,217 $970 63% 59% Q1 $970 Q1 74% 75% 73% Annualized Annualized ~$1.6 billion
Slide 10: Long-Term Approach
Long-Term Approach Continued investment in innovation and brand building will drive long-term growth (5) Adjusted. EBITDA Margin • Targeting an incremental EBITDA margins of ~30%, and reinvesting incremental revenue growth • Proven ability to allocate capital and resources to areas where we see the
Slide 11: Strong Returns
Strong Returns Returns continue to strengthen as the business scales; 6 consecutive profitable quarters Adjusted Earnings Per Share(7)* Tangible Book Value (in millions)(8) ROTCE(9) 2025 Guidance 2025 Guidance $0.27 - $0.28 + $585 - $600 5.8% $0.22 3.9% $0.15 $5,061 $0.06 $4,894 $(0.10) $3,521 (2.8)
Slide 12: Financial Services Segment
Financial Services Segment Financial Services has driven 2x net revenue growth on the year while nearly doubling contribution margin Net Revenue (in millions) Contribution Margin and Profit ($ in millions) 4x noninterest income year-over-year growth 45% net interest income year-over-year growth 49%
Slide 13: SoFi Lending Platform Capabilities
SoFi Lending Platform Capabilities Diversified lending capabilities serve more members while maximizing returns Scope • SoFi’s Lending Platform provides Economic Lending Balance Sheet P S H C optionality to hold loans on the balance SoFi Model Members Loans that fit our risk and return profile are r
Slide 14: Capital Markets Activity
Capital Markets Activity Regular loan sales and securitizations help manage the balance sheet Personal Loans • We executed $3.1 billion of personal, home loan 110% sales, inclusive of LPB • Consistent execution above the fair value 108% marks of loans held on the balance sheet over 106.6% 106.2% 106
Slide 15: Lending Segment
Lending Segment Lending has delivered strong growth at a very attractive contribution margin Adjusted Net Revenue (in millions) (4) Contribution Margin and Profit ($ in millions) 27% year-over-year growth 64% 61% $423 58% 58% 58% $413 $392 $78 $52 $339 $76 $326 $361 $60 $345 $59 $316 $279 $267 $239
Slide 16: Lending Originations
Lending Originations Continued opportunity to drive strong originations across loan types Personal Loans ($ in millions) Student Loans ($ in millions) Home Loans ($ in millions) $2,979 $17,615 $4,294 $2,243 $2,115 $3,289 $3,781 $13,801 $12,221 $3,029 $10,850 $1,820 $2,630 $9,774 $1,484 $2,246 $2,105
Slide 17: Consistent Credit Performance
Consistent Credit Performance Consistent credit performance reflects strong underwriting capabilities and borrowers Net Charge-Offs • Time-tested credit model, underwriting to 5.40% borrower cash flow 5.00% 4.90% 4.80% • Supported by efficient digital process for collecting data 3.98% 3.84% 3.52% •
Slide 18: Personal Loan Credit Performance
Personal Loan Credit Performance Recent vintages continue to outperform prior vintages NCL* by Loan Vintage and Remaining UPB** as of Q4 NCL* by Loan Vintage and Remaining UPB** as of Q1 At 51% remaining unpaid principal, NCL is 3.19% for Q4’22-Q2’24 vintages vs 4.47% At 43% remaining unpaid princip
Slide 19: Personal Loan Credit Performance
Personal Loan Credit Performance Performance is trending better than our underwriting tolerance Q1'20 - Q4'24 Origination & NCL Analysis Total Originations Q1'20 - Q4'24 $49B Remaining UPB on Total Originations Of the $49B of Q1’20-Q4’24 principal originated, 41% $20.3B remains outstanding Q1'20-Q4'
Slide 20: Technology Platform Segment
Technology Platform Segment Technology Platform has delivered steady growth and a consistent contribution margin Net Revenue (in millions) Contribution Margin and Profit ($ in millions) 10% year-over-year growth 33% 33% 32% 31% $103 $103 $103 30% $33 $32 $94 $95 $31 $31 $31 1Q24 2Q24 3Q24 4Q24 1Q25
Slide 21: Technology Platform Segment
Technology Platform Segment The Tech Platform gives clients the ability to create, launch, and run digital financial products Technology Platform Accounts (millions)(10) User Experience 168 158 Web & Mobile Conversational 145 Physical Card Virtual Card Banking Banking 131 100 Payment Deposit Account
Slide 22: Capital Ratios
Capital Ratios SoFi maintains strong levels of capital well above regulatory minimums SoFi Technologies as of 1Q 2025 (11) (11) Required(12) ($ in thousands) Amount Ratio Minimum CET1 risk-based capital $4,588,665 15.3% 7.0% Tier 1 risk-based capital $4,588,665 15.3% 8.5% Total risk-based capital $4
Slide 23: Funding and Net Interest Margin
Funding and Net Interest Margin SoFi’s strong member-driven funding base supports a stable net interest margin Funding Base Net Interest Margin • Since acquiring a bank license in 2022, we’ve grown deposits to $27B 11% 10% • ~90% deposit funded 22% • ~90% of deposits coming from durable 43% direct d
Slide 24: Guidance FY2025 & Q2 2025
Guidance FY2025 & Q2 2025 $ in millions, except per share amounts Updated FY 2025 Guidance Business / Segment Expectations: 2024 Actual Low High Prior FY 2025 Guidance • Member growth of at least 2.8 million, or 28% from 2024 levels (4) Adjusted net revenue $2,606 $3,235 $3,310 $3,200 - $3,275 • Inc
Slide 25: Financial Supplement
Financial Supplement
Slide 26: Company Metrics
Company Metrics FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Company Metrics (1) Members 5,656 6,240 6,957 7,542 8,132 8,774 9,373 10,127 10,916 QoQ % 8.3 % 10.3 % 11.5 % 8.4 % 7.8 % 7.9 % 6.8 % 8.1 % 7.8 % YoY % 46.2 % 44.5 % 46.7 % 44.4 % 43.8 % 40.6 % 3
Slide 27: Segment Financials
Segment Financials FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Lending Segment Student Loan Originations $ 525,373 $ 395,367 $ 919,330 $ 789,970 $ 751,680 $ 736,518 $ 943,584 $ 1,348,970 $ 1,191,463 Personal Loan Originations 2,951,358 3,740,981 3,885,967
Slide 28: Segment Financials
Segment Financials FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Lending Segment Net interest income $ 201,047 $ 231,885 $ 265,215 $ 262,626 $ 266,536 $ 279,212 $ 316,268 $ 345,210 $ 360,621 Total noninterest income 136,034 99,556 83,758 90,500 63,940 61,49
Slide 29: Net Interest Margin Components
Net Interest Margin Components FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Average Balances Total interest-earning assets $ 17,239,960 $ 20,357,082 $ 22,856,717 $ 25,698,397 $ 27,428,608 $ 28,484,764 $ 30,779,049 $ 31,670,474 $ 33,647,318 Interest-bearing
Slide 30: Fair Value of Loans
Fair Value of Loans FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Personal Loans Unpaid principal $ 10,039,769 $ 12,171,935 $ 14,177,004 $ 14,498,629 $ 14,332,874 $ 15,040,190 $ 16,199,604 $ 16,589,623 $ 16,825,564 Accumulated interest 69,049 82,868 105,156
Slide 31: 90+ Day Delinquencies
90+ Day Delinquencies FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Personal Loans Total Unpaid principal $ 10,039,769 $ 12,171,935 $ 14,177,004 $ 14,498,629 $ 14,332,874 $ 15,040,190 $ 16,199,604 $ 16,589,623 $ 16,825,564 Unpaid principal 90+ day DQ 37,754
Slide 32: Select Balance Sheet Information
Select Balance Sheet Information Assets Liabilities and Permanent Equity $ in thousands Q1'25 Q1'25 Cash & cash equivalents $ 2,085,697 Revolving credit facility $ 486,000 Restricted cash & cash equivalents 630,439 Personal loan warehouse facilities 352,621 Investment Securities 2,153,456 Student lo
Slide 33: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Net Revenue (GAAP) $ 472,158 $ 498,018 $ 537,209 $ 615,404 $ 644,995 $ 598,618 $ 697,121 $ 734,125 $ 771,759 (15) Servicing rights - changes in FMV (12,084) (8,601)
Slide 34: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Full Year (in 000’s) 2021 2022 2023 2024 Net Revenue (GAAP) $ 984,872 $ 1,573,535 $ 2,122,789 $ 2,674,859 (15) Servicing rights - changes in FMV 2,651 (39,651) (34,700) (6,280) (16) Residual interests classified as debt - changes in FMV 22,802 6,608 425
Slide 35: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Non-GAAP Reconciliations Net Revenue (GAAP) $ 472,158 $ 498,018 $ 537,209 $ 615,404 $ 644,995 $ 598,618 $ 697,121 $ 734,125 $ 771,759 (15) Servicing rights - changes
Slide 36: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Full Year (in 000’s) 2021 2022 2023 2024 Non-GAAP Reconciliations Net Revenue (GAAP) $ 984,872 $ 1,573,535 $ 2,122,789 $ 2,674,859 (15) Servicing rights - changes in FMV 2,651 (39,651) (34,700) (6,280) (16) Residual interests classified as debt - changes
Slide 37: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Non-GAAP Reconciliations Net Revenue - Lending (GAAP) $ 337,081 $ 331,441 $ 348,973 $ 353,126 $ 330,476 $ 340,705 $ 396,245 $ 417,796 $ 413,373 (15) Servicing rights
Slide 38: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Non-GAAP Reconciliations Net Income (Loss) (GAAP) $ (34,422) $ (47,549) $ (266,684) $ 47,913 $ 88,043 $ 17,404 $ 60,745 $ 332,473 $ 71,116 Income tax benefit from re
Slide 39: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Full Year (in 000’s) 2021 2022 2023 2024 Non-GAAP Reconciliations Net Income (Loss) (GAAP) $ (483,937) $ (320,407) $ (300,742) $ 498,665 Income tax benefit from release of tax valuation allowance — — — (258,401) Income tax benefit from restructuring — —
Slide 40: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s, except per share amounts) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Non-GAAP Reconciliations Numerator: Net income (loss) attributable to common stockholders — diluted (GAAP) $ (44,390) $ (57,628) $ (276,873
Slide 41: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Full Year (in 000’s, except per share amounts) 2021 2022 2023 2024 Non-GAAP Reconciliations Numerator: Net income (loss) attributable to common stockholders — diluted (GAAP) $ (524,363) $ (360,832) $ (341,167) $ 434,776 Non-GAAP adjustments: Income tax b
Slide 42: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Full Year FY 2025 (in 000’s, except per share amounts) 2022 2023 2024 Q1’25 Non-GAAP Reconciliations Numerator: Net income (loss) attributable to common stockholders — diluted (GAAP) $ (360,832) $ (341,167) $ 434,776 $ 71,455 Non-GAAP adjustments: Income
Slide 43: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2023 FY 2024 FY 2025 (in 000’s, except per share data) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Non-GAAP Reconciliations Total permanent equity (GAAP) $ 5,234,072 $ 5,257,661 $ 5,053,388 $ 5,234,612 $ 5,825,605 $ 5,901,494 $ 6,121,481 $ 6
Slide 44: Footnotes to Financial Statements
Footnotes to Financial Statements
Slide 45: Footnotes
Footnotes (1) We refer to our customers as “members”. We define a member as someone who has a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring servi
Slide 46: Footnotes
Footnotes (8) Tangible book value is defined as permanent equity, adjusted to exclude goodwill and intangible assets, net of related deferred tax liabilities. Tangible book value per common share represents tangible book value at period-end divided by common stock outstanding at period-end. (9) Retu
Slide 47: Footnotes
Footnotes (20) Transaction-related expenses in 2024 and 2023 primarily included financial advisory and professional services costs associated with our acquisition of Wyndham. Transaction-related expenses in 2022 primarily included financial advisory and professional services costs associated with ou