SoFi Technologies Reports Net Revenue of $734 Million and Net Income of $332 Million for Q4 2024, Demonstrating Durable Growth and Strong Returns

Record Adjusted Net Revenue Grew 24% Driven by 52% Combined Growth in Financial Services and Tech Platform Segments, Representing 49% of Total Adjusted Net Revenue

34% Growth in Members and 32% Growth in Products in 2024 Remain Key Drivers of Growth

Record Fee Based Revenue of $289 Million Increased 63%, Reinforcing Strength of Increased Mix of Higher ROE Revenue

Management Announces 2025 Guidance

SAN FRANCISCO--(BUSINESS WIRE)--January 27, 2025-- 

SoFi Technologies, Inc. $(SOFI)$, a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, reported financial results today for its fourth quarter and fiscal year ended December 31, 2024.

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Note: For additional information on our company metrics, including the definitions of "Members", "Total Products" and "Technology Platform Total Accounts", see Table 6 in the "Financial Tables" herein. Beginning in the first quarter of 2024, new member and new product addition metrics for the relevant period reflect actual growth or declines in members and products that occurred in that period whereas the total number of members and products reflects not only the growth or decline of each metric in the current period but also additions or deletions due to prior period factors, if any. (Graphic: SoFi Technologies)

"2024 was SoFi's best year ever," said Anthony Noto, CEO of SoFi Technologies, Inc.

"Our ability to deliver durable growth and strong returns throughout the year was once again the direct result of our relentless focus on innovation and brand building. SoFi set new records in revenue, profit, members, and products in 2024, and we look forward to continuing to build momentum on this in 2025."

Noto continued: "In the fourth quarter, our Financial Services and Tech Platform segments made up a record 49% of SoFi's adjusted net revenue, up from 40% in the year ago quarter. These businesses grew revenue by a combined 52% year-over-year, a testament to our continued execution and deliberate shift towards capital-light, higher ROE, cash, fee based revenue streams."

 
Consolidated Results Summary 
 
                    Three Months Ended 
                       December 31,                 Year Ended December 31, 
                    ------------------  ----        -----------------------  ---- 
($ in thousands, 
except per share 
amounts)              2024      2023     % Change      2024        2023       % Change 
                     -------   -------  ----------   ---------   ---------   ---------- 
Consolidated -- 
GAAP 
Total net revenue   $734,125  $615,404    19%       $2,674,859  $2,122,789     26% 
Net income (loss)    332,473    47,913   594%          498,665    (300,742)   n/m 
Net income (loss) 
 attributable to 
 common 
 stockholders -- 
 diluted             332,473    24,615   n/m           434,776    (341,167)   n/m 
Earnings (loss) 
 per share 
 attributable to 
 common 
 stockholders -- 
 diluted            $   0.29  $   0.02   n/m        $     0.39  $    (0.36)   n/m 
Consolidated -- 
Non-GAAP(1) 
Adjusted net 
 revenue            $739,112  $594,245    24%       $2,606,170  $2,073,940     26% 
Adjusted EBITDA      197,957   181,204     9%          666,480     431,737     54% 
Adjusted net 
 income (loss)        61,030    47,913    27%          227,222     (53,568)   n/m 
Adjusted net 
 income (loss) 
 attributable to 
 common 
 stockholders -- 
 diluted              61,030    24,615   148%          163,333     (93,993)   n/m 
Adjusted earnings 
 (loss) per share 
 -- diluted         $   0.05  $   0.02   150%       $     0.15  $    (0.10)   n/m 
 
 
 
(1)    For more information and reconciliations of these non-GAAP measures to 
       the most comparable GAAP measures, see "Non-GAAP Financial Measures" 
       and Table 2 to the "Financial Tables" herein. 
 

Product Highlights

SoFi is a financial services company that leverages technology to serve people and enterprises. SoFi's continuous investments in innovation and brand building yielded several milestones in the year, fueling significant member and product growth and paving the way for future growth.

Among the highlights:

   -- 
 Member and product adds in Q4 reached 785 thousand and 1.1 million, 
      respectively, setting new quarterly records. 
 
   -- 
 SoFi Money reached record highs in Accounts, Total Deposits, and Direct 
      Deposit members. Additionally, we introduced Zelle and improved our 
      self-service wire transfers. 
 
   -- 
 SoFi Invest continued to provide Main Street investors with the tools 
      to help them achieve their ambitions. We launched access to unique 
      investment products like the Templum Cosmos Fund, which offers sole 
      exposure to SpaceX, and our new robo-advisor platform in partnership with 
      BlackRock. 
 
   -- 
 Loan Platform Business posted record results, generating $63.2 million 
      in loan platform fees driven by $1.1 billion of personal loan volume 
      generated on behalf of third parties in the quarter. In the full year of 
      2024, our Loan Platform Business originated and transferred a record $2.1 
      billion of personal loan volume. 
 
   -- 
 Tech Platform signed several new partnerships across a broad range of 
      industries. Galileo was selected by the US Department of the Treasury as 
      the processing partner for Direct Express, a prepaid debit card program 
      which provides millions of people access to federal benefits. The company 
      also signed a large retail financial services provider of short-term 
      consumer loans, card services, check cashing, and other products. Lastly, 
      we signed a leading hotel rewards brand for a new co-branded debit card 
      program. 
 
   -- 
 Student Loans saw its best quarter of originations since the end of 
      2021, reaching $1.3 billion, a 71% year-over-year increase. 
 
   -- 
 Home Loans saw its best quarter of originations since 2021 across all 
      products -- purchase, refinancing and home equity loans -- with 
      originations of $577 million, a 87% year-over-year increase. 
 
   -- 
 Credit performance continues to improve. On-balance sheet 90 day 
      personal loan delinquency rate decreased to 55 basis points from 57 basis 
      points in the prior quarter, while personal loan annualized charge-off 
      rate decreased to 3.37% from 3.52% in the prior quarter. 
 
   -- 
 SoFi ended the quarter with its highest average unaided brand awareness 
      of all time, reaching over 7%, a 170 basis point increase from the prior 
      year period. 
 

Consolidated Results

SoFi reported a number of key financial achievements. For the fourth quarter of 2024, GAAP net revenue of $734.1 million increased 19% relative to the prior-year period's $615.4 million. Record adjusted net revenue of $739.1 million grew 24% from the corresponding prior-year period of $594.2 million. For the full-year of 2024, GAAP net revenue of $2.7 billion increased 26% relative to the prior-year period's $2.1 billion. Record adjusted net revenue of $2.6 billion grew 26% from the corresponding prior-year period of $2.1 billion.

For the fourth quarter of 2024, total fee based revenue of $289.5 million increased 63% year-over-year. For full year 2024, fee based revenue of $969.9 million increased 74% year-over-year. This was driven by strong performance across origination fees, Loan Platform Business, as well as interchange, brokerage and referrals.

SoFi reported its fifth consecutive quarter and first full year of GAAP profitability. For the fourth quarter, GAAP net income reached $332.5 million and diluted earnings per share reached $0.29. When adjusting for non-recurring benefits related to deferred taxes, adjusted net income reached $61.0 million and adjusted diluted earnings per share reached $0.05 in the quarter. For full year 2024, GAAP net income reached $498.7 million and diluted earnings per share reached $0.39. When adjusting for non-recurring benefits related to deferred taxes, adjusted net income reached $227.2 million and adjusted diluted earnings per share reached $0.15 in 2024.

Fourth quarter record adjusted EBITDA of $198.0 million increased 9% from the prior year period's $181.2 million. This represents an adjusted EBITDA margin of 27%. Full-year 2024 record adjusted EBITDA of $666.5 million increased 54% from the prior year's $431.7 million. This represents an adjusted EBITDA margin of 26%. All three segments achieved record contribution profit in 2024.

Permanent equity grew by $403.7 million during the quarter, ending at $6.5 billion and $5.96 of permanent equity per share. Tangible book value grew by $465.3 million during the quarter and $1.4 billion during the year, ending at $4.9 billion and $4.47 of tangible book value per share, up from $3.61 per share in the prior year period.

Net interest income of $470.2 million for the fourth quarter was up 21% year-over-year. This was driven by a 23% increase in average interest-earning assets and a 68 basis points decrease in cost of funds, mostly offset by a 62 basis points decrease in average yields year-over-year. Net interest income of $1.7 billion for full-year 2024 was up 36% year-over-year. This was driven by a 38% increase in average interest-earning assets, and a 17 basis points decrease in cost of funds, partially offset by a 7 basis points decrease in average yields year-over-year.

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