SOFI Achieves Record Quarterly Member Growth and Crosses $1 Billion Revenue Milestone
Feb 25, 2026 (20 hr ago)
Positive
SOFI reported its first quarter above $1 billion in adjusted net revenue, adding over one million new members for the first time ever.
Record Q4 Operational Performance
- Delivered first adjusted net revenue quarter above $1 billion, reporting $1.013 billion, up 37% year-over-year1
- Added over 1 million new members in Q4, a first for the company, bringing total members to 13.7 million1
- Achieved GAAP net income of $174 million, marking the ninth consecutive profitable quarter with a 17% net income margin1
Revenue Diversification and Segment Strength
- Fee-based revenue hit a record $443 million, now comprising 44% of adjusted net revenue, showing platform evolution1
- Financial Services and Technology Platform segments combined generated $579 million in revenue, marking a 61% year-over-year increase1
- Lending remained a core contributor, generating $486 million in adjusted net revenue for the quarter1
Business Model Evolution and Strategic Outlook
- The company has transformed from a student loan refiner into a vertically integrated digital financial platform2
- Management guided for at least 30% member growth and $4.655 billion in adjusted net revenue for 20261
- SOFI is shifting toward balance sheet funding, which impacts its earnings power and overall business model2
Operational Challenges and Executive Activity
- Despite revenue growth, the company reported negative operating cash flows of approximately -$1.31 billion and free cash flow of -$1.37 billion3
- Reported EBIT margin sits at -3.3% and pre-tax profit margin at -6.1%, indicating profitability challenges3
- Executive Steven J. Freiberg sold a significant portion of his stake in the company3, 4
- The company faces external pressures from rising borrowing costs and competitive offerings from peer banks3
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Why Sofi Technologies at $18 Makes Zero Sense
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