SoFi Proves the Bears Wrong Again With a Record Quarter

SoFi Technologies Inc. (NASDAQ: SOFI) surged more than 5% in pre-market trading after delivering another strong quarter. Earnings per share (EPS) of 13 cents beat expectations for 11 cents by 18%. It was also a 160% improvement on a year-over-year (YOY) basis.

But the number generating the most enthusiasm came on the top line. SoFi delivered quarterly revenue of $1.01 billion. This was the first time in the company’s history that it had hit that landmark. The revenue number was also up 36% YOY, due in part to the addition of 1 million new customers in the quarter.

Tangible book value grew to $8.9 billion, an increase of $1.7 billion quarter-over-quarter, and return on tangible common equity reached 9.0%. This means the fundamental case for SoFi continues to strengthen even as skeptics question the valuation.

The primary takeaway from SoFi’s earnings report is that earnings matter. SoFi continues to deliver strong performance that has delighted its shareholders and confounded its critics.

SoFi's Growth Story Keeps Getting Better

SoFi has grown from being a student loan provider into a diversified, digital financial services platform. It's what makes SoFi stand out among other financial sector stocks. What's particularly impressive about SoFi's performance is the quality of growth across multiple dimensions.

The company's adjusted EBITDA reached a record $318 million, representing a 31% margin. That’s a significant expansion from the 29% margin in Q4 2024. This demonstrates SoFi's ability to scale efficiently while maintaining profitability, a feat it has achieved for nine consecutive quarters.

The key has been the company's focus on continuous innovation. In 2025, those innovations included SoFi Pay, crypto trading, and the SoFiUSD stablecoin.

The launch of SoFiUSD made SoFi the first national bank to issue a stablecoin on a public, permissionless blockchain—a move that positions the company at the intersection of traditional banking and digital assets. Meanwhile, the SoFi Smart Card launch showcased the company's ability to deliver unique value propositions that help members build credit while earning rewards.

SoFi's Flywheel Continues to Fuel Growth

The diversification strategy is clearly paying off. Fee-based revenue hit $443 million in the quarter, up 53% YOY and now representing 44% of adjusted net revenue. This shift toward capital-light revenue streams is exactly what long-term investors want to see, as it reduces the company's reliance on interest rate-sensitive lending income.

Perhaps most telling is SoFi's "Financial Services Productivity Loop" performance. Cross-buy reached 40% in Q4. That’s a 7% YOY increase. This metric reveals that members aren't just signing up for one product; they're embracing SoFi's one-stop-shop model.

The flywheel effect becomes even more noticeable in numbers like record loan originations of $10.5 billion and deposit growth of $4.6 billion to nearly $38 billion.

The company also maintained strong credit quality, with personal loan net charge-offs of 2.80%, down 57 basis points from a year earlier. This performance is particularly noteworthy given the challenging macroeconomic environment and demonstrates SoFi's disciplined underwriting approach.

The Bar Will Get Raised Again

If there's one area where the bulls may want to exercise caution, it's next year's revenue and earnings outlook. To put it simply, the easy comps are over. SoFi's guidance for FY 2026 calls for adjusted net revenue of approximately $4.655 billion—representing 30% YOY growth—and adjusted EBITDA of around $1.6 billion with a 34% margin.

That means that the company delivering revenue of over $1 billion in the quarter will now be the expectation, not the outlier. Management is also projecting net income of approximately $825 million for 2026, representing a 72% increase, with diluted EPS of around 60 cents.

These ambitious targets will require flawless execution, but SoFi's track record of consistently exceeding the "Rule of 40" (which combines revenue growth and EBITDA margin) with an average score of 58% over four years suggests the company has the operational excellence to deliver.

SOFI’s Earnings Spark a Potential Trend Reversal

Prior to earnings, SOFI stock was down 6.9% in 2026 and more than 16% since it reached its all-time high in November 2025. The sell-off was already showing technical signs of weakening momentum, and the earnings report is likely to confirm a bullish reversal.

Investors will want to see how the report impacts analyst sentiments. The post-earnings surge has pushed SOFI stock above the consensus price target of $25.50. However, in early trading, the stock had given up those gains and was falling in sympathy with the broader market.

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The article "SoFi Proves the Bears Wrong Again With a Record Quarter" first appeared on MarketBeat.