SoFi Raises 2026 Outlook as Q3 Revenue Jumps 44%

Social Finance Inc. raised its full-year 2026 outlook after reporting record third-quarter revenue and profitability, supported by rapid lending growth, stronger financial-services monetization and continued member expansion. The digital financial-services company also issued 2027 targets that call for further revenue growth and margin expansion, while its Technology Platform remained below year-earlier levels.

SoFi generated $1.385 billion in GAAP net revenue in the third quarter, up from $961.6 million a year earlier. Adjusted net revenue rose 44% year over year to a record $1.371 billion, while adjusted EBITDA increased to $469.8 million from $276.9 million. The adjusted EBITDA margin reached 34%, compared with 29% in the prior-year quarter.

GAAP net income climbed to $241.0 million from $139.4 million. Adjusted net income rose to $243.0 million, representing an 18% adjusted net income margin, while both GAAP diluted EPS and adjusted diluted EPS were $0.18. SoFi said the quarter marked its 12th consecutive profitable quarter and its 20th straight quarter exceeding the Rule of 40.

Cash revenue, a non-GAAP measure, totaled $1.386 billion, broadly matching adjusted net revenue. That included $927 million from net interest income and $460 million from technology and loan-platform fees, loan-origination fees, interchange fees and brokerage fees.

Lending and financial services lead growth

The Lending segment produced adjusted net revenue of $807.4 million, up 68% year over year. Contribution profit increased to $454.9 million from $261.6 million, with a 56% contribution margin.

Total loan originations reached a record $16.93 billion, compared with $9.93 billion a year earlier. Personal-loan originations rose to $12.62 billion, student-loan originations increased to $2.92 billion and home-loan originations reached $1.36 billion. The quarter also included $27.1 million of small-business loan originations.

Annualized lending adjusted revenue per product increased to $942 from $782 in the third quarter of 2025. Lending products totaled 3.43 million, up 39% year over year.

SoFi said credit performance remained in line with its expectations. The personal-loan net charge-off rate was 3.4% in the quarter, or 2.3% excluding sales of delinquent loans, while the student-loan net charge-off rate was 0.63%. Personal-loan borrowers had a weighted-average FICO score of 743 and weighted-average income of $150,000; the corresponding student-loan figures were 761 and $154,000.

Financial Services segment revenue rose 25% to $525.1 million. Net interest income increased 38% to $281.3 million, while noninterest income grew 13% to $243.8 million. Contribution profit reached $261.0 million, up from $225.6 million, for a 50% contribution margin.

The company added 1.17 million members during the quarter, bringing the total to 17.07 million, 35% higher than a year earlier. New product additions reached 2.24 million, lifting total products to 26.67 million, up 44%. Products per member increased to a record 1.56 from 1.47 a year earlier, while the cross-buy rate reached 51%, an increase of 11 percentage points.

Fee-based revenue totaled $571 million, rising 21% from the second quarter and 40% year over year. It accounted for 42% of adjusted net revenue, supporting SoFi’s strategy of expanding capital-light revenue sources alongside balance-sheet lending. Annualized Financial Services revenue per product was approximately $90.

The Technology Platform remained a weaker part of the quarter. Segment revenue fell to $87.4 million from $114.6 million a year earlier, while contribution profit declined to $14.2 million from $32.4 million. Technology Platform accounts totaled 140.4 million, compared with 157.9 million in the prior-year period. SoFi said it launched a unified SoFi Tech Solutions brand in 2026 spanning processing, banking core ledgers and services, payments, and risk and fraud products.

Deposits and capital expand

Deposits increased by $5.8 billion from the previous quarter to $51.3 billion. Deposit funding represented 93% of SoFi’s funding base, and the company estimated that its shift toward deposits had reduced annualized funding expense by $745 million. Net interest margin was 6.14%, up from 5.84% a year earlier.

Tangible book value, a non-GAAP measure, rose by $235 million sequentially to $9.70 billion, or $7.48 per common share. Return on tangible common equity was 9.9%. SoFi reported a 16.9% common equity Tier 1 capital ratio and a 17.0% total risk-based capital ratio, both above the regulatory minimums presented by the company.

SoFi raises 2026 outlook and sets 2027 targets

SoFi now expects full-year 2026 adjusted net revenue of approximately $5.04 billion, compared with its previous range of $4.75 billion to $4.85 billion. Adjusted EBITDA is projected at about $1.66 billion, up from the prior estimate of approximately $1.60 billion, while adjusted net income is expected to reach roughly $840 million versus $825 million previously.

The company also forecasts 2026 adjusted diluted EPS of approximately $0.61, compared with its prior $0.60 estimate. The guidance assumes a 22% full-year tax rate, compared with the mid-teens rate assumed when the original EPS forecast was issued.

For 2027, management expects adjusted net revenue of about $6.4 billion, adjusted EBITDA of approximately $2.24 billion and adjusted net income of roughly $1.28 billion. The implied adjusted EBITDA margin is about 35%, while the adjusted net income margin is expected to be approximately 20%. Adjusted diluted EPS is projected at roughly $0.90, based on an assumed 24% tax rate.

Longer term, SoFi is targeting return on tangible common equity in the 20% to 30% range. Management expects adjusted net income margins to expand as businesses mature and higher-margin operations become a larger part of the revenue mix. The company also expects fee-based revenue to rise from roughly 40% of total revenue to more than 50% over time, though it did not provide a timetable.

SoFi’s outlook remains subject to changes in economic conditions, inflation, interest rates, tariffs and broader geopolitical developments. The presentation also identified credit and pricing accuracy, regulatory and compliance requirements, access to capital, product execution, cybersecurity and technology reliability as material uncertainties. The company’s ability to meet its guidance also depends on maintaining profitability, expanding fee-based revenue, growing deposits and members, and effectively managing its lending and newer digital-asset initiatives.