SoFi Technologies Inc Aktie

Good afternoon. I'm Rick Shane with the JPMorgan Consumer Finance team. Thank you for joining us. I have the pleasure today of welcoming SoFi's CEO, Anthony Noto. While he has been the CEO since 2018, I think that, that really sort of just a little bit of what you've done along the way, served in the military, worked at the NFL, was a technology executive in another company and then joined the company in 2018.

In the time that you've been there, you've really led the transformation from a company that was focused on student loan refinance to a full platform of consumer financial services, most recently adding blockchain and crypto to the platform or a bank now. So it's been a really exciting, I guess, 8 years at this point. Tell us a little bit about sort of what you guys have done and where you see yourselves headed?

Sure. Now that we are able to offer crypto again, which we're doing and buy, sell and hold 30 different coins and have launched our own stablecoin, payment stablecoin called SoFiUSD, we've now kind of transitioned from a one-stop shop to what we like to call the digital financial everything app. And the reason why we've made that transition is that we've reached incredible scale, 15 million members, 22 million products. We're growing at a really high rate. We grew revenue last quarter at 41% following 35% growth in 2025 and over 35% CAGR over the last 5 years. And it really reflects just the breadth of our offering. Our mission is to help people achieve financial independence, which means they reach the point in time where they have enough money to live their dream, whatever that dream may be, the size of family they may want to have, the career they may want to have, where they want to live, the size of home they want, when they want to retire.

And the only way to really deliver on that mission is to help them borrow better, save better, spend better, invest better and protect better. So you need this broad swath of products and hence, the concept of the digital financial services, everything app. I'm very proud of the fact that we've gotten to the point where 85% of our products are non-lending products. Lending products are really critical. In fact, they drive the highest revenue per product, and that helps us drive our competitive advantage in that we have the best lifetime value, the best unit economics, which allows us to give value back in all the other products that we have in better interest rates on checking and savings, lower interest rates on loans, more affordable credit cards, things like smart card, but then to do even more and allow people to elevate above that into something like SoFi Plus and soon-to-be launched subscription cancellization in addition to other bells and whistles like using AI-driven engines to build portfolios.

And so we're at the point in time where we're really starting to see the formula work. What is the formula? We want to teach people to spend less than they make and invest the rest. 70% of the members that we have in SoFi Invest, which is over 3 million products now are from existing members. So we're helping people get to that point where they spend less than they make, and now they're investing with us and they're using our products in a bigger and better way. We recently launched SoFi Plus, relaunched it on April 1 and have been amazed with the progress we've made so far in that. So it's a long way since 2018 when we had 600,000 members and $250 million of revenue to 15 million members now and over $3.5 billion of revenue last year and well on our way in 2026.

Interesting. And what you said just resonates with me. We spend a lot of time trying to explain consumer behavior. And I would describe that Wall Street has not somewhat a pejorative explanation of a lot of consumer behaviors, consumers are stupid. And our explanation has always been that consumers are rational but undisciplined, that they make smart financial decisions, but then end up spending too much money. And it sounds in a lot of ways like that's the foundation of what you're trying to address as well. There -- you're helping them in terms of price discovery, in terms of transparency, make good decisions and then actually hopefully change their behaviors a little bit.

Yes. I'd chalk it up to a few different things. One is education. A second is accessibility and then the third is emotion. When I think about education, I get an e-mail from a potential member, a mother of a daughter. The mother tried to cosign for a loan and for some reason, we didn't approve the loan. We have, hence, approved the loan. But in the e-mail, she's basically saying, my daughter is trying to do the right thing and pay off her loans. She has an incredible burden, $230,000 of student loan debt, and she's going to be a teacher. Why a university would ever let someone take out $230,000 of debt. It's very admirable to be a teacher. It's the lifeblood of our country. It forms the foundation of our children. Our children spend more time with teachers than they do with their parents in their lifetime, quite frankly.

And here's this woman who's graduated from college, which is a big accomplishment, and she's burdened with $230,000 of student loan debt on a salary that's probably $60,000. Like that's an educational problem, and she'll never get out of that hole. We can help her get out of that hole, but she's going to need a lot more help than that. There's an access problem. And what does that mean? People think they have to have access to wealth advisers to invest in the stock market to invest at all. And so it's shocking to me that my 2 brothers, my wife, they didn't buy their first stock until after I joined SoFi. And it wasn't SoFi stock. We made investing more accessible to them. We educated them. We gave them products that were easy to use. We pioneered fractional shares. You may want to buy what you like, like Peter Lynch often articulated.

But if Amazon is $2,000, you can't buy Amazon unless you're willing to lose $2,000 on one stock. But you can buy $1 of Amazon at SoFi. You can buy $1 of Tesla. In fact, you could take $10 and buy 10 different stocks at $1 per stock. We also launched a couple of ETFs at $10 a piece that were S&P 500, lookalike ETFs that have done pretty well. And so if you tried to buy a different ETF that was S&P 500 ETF back at that time, the lowest price point was like $250. Well, I'm comfortable spending $10 on something I don't know. It's basically breakfast out of the house, coffee and maybe a breakfast sandwich. Why would you feel comfortable spending $250 on this thing called an S&P 500 that you've never researched, but you're more comfortable spending $10 on it. So we made diversification and dollar-cost averaging more successful. We've made IPOs more successful, private equity more successful. We've done a couple of SpaceX offerings.

So private investment is more accessible. And then emotion. It's hard to tell your children no. It's Christmas or a holiday or their birthday, and you want them to be happy. And so you charge something or something breaks unexpectedly and emotionally, you need to get it fixed, whatever it may be. And so it's the combination of education, accessibility and emotion that puts people in a financial hole, and we want to teach them not to start in that hole to begin with $230,000, not to buy a house that's their wife's dream house if you can't actually invest and save for retirement. Just being able to save allows you to stay in business, so to speak, but it doesn't allow you to get ahead. It allows you to keep up. And so we have to teach people how to invest, and we believe we have the products, and we're nailing that formula, and I'm excited about the things we'll be launching this year to take it to the next level.

That's great. And I really -- again, given my framework, I really appreciate what you're describing, and it really does resonate with me. Look, one of the big transformations, I mean, there have been so many in your bank now. And again, context here, I've been a financial services analyst for 25 years, I cover the space for a long time. I have been following SoFi for about 3 months and still getting up to speed. So bear with me as I feel my way through this with you guys. And if my questions are a little off, it's because I'm still getting there. But one of the big transformations that we've seen is the expansion of your loan platform business. I think you guys did $13 billion in originations. You're on path on a runway close to $1 billion of revenues. How big is that opportunity? And now I think originally, these were loans that you were seeing that you didn't necessarily want to put on your balance sheet. But as you're seeing the benefits of capital-light originations, how do you see that platform going forward?

Yes. We developed the loan platform business, LPB, as we affectionately call it, to capture the opportunity that we couldn't capture at that moment in time. There could be several reasons for us not capturing the opportunity. First, we declined about 70% of the applicants for personal loans, and that's typically for credit reasons. Second, we can drive more demand than we have originated in personal loans over time. If you go back in time, you'll see that we're originating $2 billion of personal loans in a quarter a couple of years ago, and it slowly has increased. What we found was the more we marketed, the more originations we could drive at affordable price. But there comes a point like in 2024, where higher for longer was a risk, and I didn't feel comfortable underwriting everything that we could.

So at the time, we came up with this idea called the controlled volume business, which then became the loan platform business. We went to managers of assets, people that had capital to put to work and asked them what credit profile they wanted, what return profile they wanted. And then we negotiated with them to create loans for them by tapping into that origination volume that we didn't want to put on our balance sheet from a risk standpoint. There's also volume that we don't want to put on our balance sheet from a credit standpoint as well. And so that's how the loan platform business was born. It's achieved incredible success. We're tapping into more and more originations. We're making people that have high credit card debt more aware that they can move out of 26% interest or 25% interest into 12% interest, amortizing down over a number of years and really cut their cost of borrowing quite meaningfully, which then gives them more freedom to invest or save and do other things.

So that's what drove the business. I think people were disappointed to see our loan platform business revenue down sequentially. What I would tell you is we had more demand for the loan platform business in terms of loans people wanted and to pay us fees than we could produce for them. We look at our business holistically. One of the reasons we've been able to drive diversified growth is that we're not just looking at this quarter or the next. We're looking out 4 to 8 quarters. We're looking at where each business will be. We're allocating capital against those businesses to get us to that 30% compound annual growth that we want to have in revenue and higher in profit over time. And we're allocating our resources.

So the way we think about the balance sheet and the loan platform business is we want to make sure that we've set our company up to deliver 30% compounding growth for as long as we can in revenue, so through 2027, which means we do need net interest income during that time period. In this most recent quarter, we announced $690 million of cash net interest income. If you just actually look at the net interest income line, it adds up to that. So it's not a surprise. That will need to amortize down over time, both because people pay off their loans, and we have to replenish it with balance sheet. So we allocated to our balance sheet what would give us good visibility of that nice revenue stream over time. The rest we allocated to the loan platform business. If we originated more that would have gone to the loan platform business, and it would have been bigger.

The reason why Q3 and Q4 accelerated so much last year versus Q2 is we not only fulfilled our contractual minimums, but we're able to satisfy some in-quarter demand that our partners wanted by spending more in marketing and getting there. And if we hadn't delivered more than a contractual minimum, you probably would have seen a nice linear growth rate from Q2 of 2025 to Q3 of '25 to Q4 of '25 and then still linear in Q1 of '26. But our partners wanted the assets. We were able to produce them at a fair price, and we took advantage of that opportunity. This year is going to be a more balancing act between the balance sheet and LPB. One, because we have more capital; two, we're looking out over the next 8 quarters, not the last 4 quarters.

Okay. And I hope I quote you fairly and warmly, but you've described a crypto supercycle that will transform financial services. You talked about adding crypto to your platform that your clients can now store 30 different cryptocurrencies on the platform. You've launched a stablecoin. When you look at crypto, are you seeing this -- how do you see this rolling out? Is this -- are you offering a speculative tool for your customers a way for them to invest? Or is there a practical day-to-day usage that you're envisioning? Like what makes this transformational other than it's just new and different?

Sure. There's 4 distinct revenue streams that will generate revenue on over the course of the next 12 months and beyond. There's big business banking, SoFiUSD, stablecoin, there's crypto investing, so buy, sell and hold and then there's crypto borrowing, secured borrowing. So let me talk about all 3. First, SoFiUSD. I couldn't be more excited about the prospects of what SoFiUSD brings to the table. This is a stablecoin we just started minting at the end of 2025. You will see it show up in the app in the course of the next couple of weeks. It is both going to be an enterprise product and a consumer product, and let me walk through both. First, we're already in the business of moving money. We do 8 billion transactions a year via Galileo's debit and ACH processing.

We would like all those 8 billion transactions to occur with SoFiUSD, and we think we can actually grow the amount of transactions with SoFiUSD. Think about SoFiUSD as a payment capability that also has a stored value and that we'll make money on that stored value based on the net interest income it generates from it sitting in our Fed master account earning Fed funds without liquidity risk without credit risk and without duration risk, unlike any other stablecoin issuer to date that has to go out and buy treasuries and has to buy securities to generate a yield. So SoFiUSD will become a payment mechanism in our SoFi Technology Services platform that also become a new payment mechanism that allows us to sign new deals with partners.

So we signed a deal and announced a deal with Mastercard, where they're going to use SoFiUSD to do 24/7 settlement, 24 hours a day, 7 days a week. Today, they do 5 days a week settlement, and it's not 24 hours. This will be a huge value to them and their merchants, and this will be a payment mechanism that uses the rails that SoFiUSD rides on. And the capital will sit, again, dollar for dollar back in our Fed master account earning Fed funds. We have other partners that will also use SoFiUSD. So when we launched our trading business for buy, sell and hold different crypto tokens, we are partnering with exchanges and market makers. Those exchanges and market makers do not pass fiat back and forth. They pass stablecoins back and forth. We will use SoFiUSD with all our intermediaries.

Big business banking. We're launching big business banking, not because it was my bright idea. In fact, this was something that was built by somebody else, and it went away. As we were talking to all the intermediaries in the crypto universe, they all asked us to build bank accounts for them because we uniquely at SoFi could operate in both fiat as a national bank and cryptocurrency as a national bank. And so we've launched this product. On July 1, we'll launch it with APIs. So it's completely agentic if you want it to be agentic. And we can operate in both fiat and crypto and help all of these businesses that are crypto-centric do banking more efficiently in a more automated way 24/7. We'll also offer these same services to any other company that needs to operate in stablecoins or crypto.

It could be Amazon, it could be Apple, it could be Booking.com. They're all potential clients for us. We will make money again on the stored value in SoFiUSD and the NIM or net interest income in addition to the fact that big business banking will have a subscription fee, it will have payment fees and all the bells and whistles of being a bank for large companies. And I'm super excited about that because the underlying value of that, the fuel for that will be SoFiUSD.

And then on the consumer side, we will uniquely offer a product that allows people to buy SoFiUSD, and they will get FDIC insurance and they'll get interest. When we launched SoFiUSD and the SoFi app, it will say coming soon. The coming soon piece will be down the road when we create a tokenized deposit and a SoFi Payment coin in one, just like we have today in a SoFi banking account that has a savings account and a checking account. So today, if you put your money into your savings account and you do direct deposit with us, you get 3.8% interest. When you want to pay with that money, we move it out of the savings account into the checking account and then we send it via the debit rails. We'll do the exact same thing with SoFiUSD.

You'll put money into an account that is a custodial -- noncustodial wallet that will give you interest, that will give you FDIC insurance. It will sit with inside SoFi Bank. When you want to pay, you'll lose the FDIC insurance, you lose the interest rate on the tokenized deposits and the stablecoin will be minted and transferred. That will help us build an asset base in SoFiUSD and at some point, become a point-of-purchase mechanism if people want to pay it in that way, in addition to using it for international remittance and other forms. So SoFiUSD, my hope is this is worth billions of dollars of volume over time, and we're generating 1% to 2% of net interest income. So that -- and the big business banking and crypto trading are 3 of the businesses. The fourth is as we build up an asset base under crypto investing, we'll give people secured loans against those assets. And since we're already the lender, this will be very attractive because today, we do no secured lending other than a home equity line or a HELOC.

Okay. I want to think about the use case here for 1 second, just to make sure I understand it. So you talk about the consumer crypto business. My daughter sets up an account. She uses her account, her SoFiUSD account for her savings. She transfers money to her checking and she owes me $100. Can she pay her old fuddy-duddy dad who does not have a SoFi account the $100? Or do I need to enter the ecosystem in some way to be able to participate in the payment with her?

She could. She could do it bank to bank. So if you gave her your routing number and bank account number, she could do it that way. If you have Zelle, she could do it via Zelle. If you have a phone number, she could send it to a phone number, you'll have to click on that link to then take action to put it into your bank account or preferably accept it in a SoFi account and become a SoFi member. If you have an e-mail, she could send it to the e-mail, you can click on that e-mail, put in your routing number and your bank account number and will go into that account automatically. Or again, hopefully, she sends you a referral link for $25 and you sign up for SoFi Money and it goes into your SoFi Money account. So one of the things that we benefit from is we own our own technology.

And SoFi Technology Solutions has 4 strategies for different businesses trying to build, one of which is Payment Hub. The idea of Payment Hub is to have APIs that companies can use in a self-serve way to do any type of payment. So SoFi is benefiting from that investment. So far, they've built self-serve wires. So you can do a wire on SoFi right now, SoFi Money in a matter of 3 minutes to any place in the world, never talking to anyone as safe as any other process. You can also do FedNow, so instant money transfer. And you can do ACH, which I mentioned, you can do debit and you can do person-to-person payment and you can do Zelle. So the SoFi Technology team will keep building out the payment hub options to do any type of payment from any source to any destination, stablecoins being the next area.

Got it. So it is a walled garden with plenty of gates so that you can go see people on the outside.

I would say it's an open platform with the safety and security of a national bank.

Okay. That's fair enough. Look, it's an interesting time, and this is the world I live in. I'm a credit card analyst, consumer finance analyst. We have some concerns about what's happening in terms of consumer credit. You've talked about an early warning dashboard that you maintain that would trigger credit tightening. Can you give us some of the key indicators that you're looking at? And are we starting to see maybe not red flashes, but are you seeing yellow flashes that we should all be thinking about in terms of the consumer?

We look at performance, we look at early warning indicators. We haven't seen a change in the environment at all. Credit is performing as expected. We're still seeing strong performance across the board, in line with our expectations. We've provided those results in the quarter. I haven't seen changes since then. There's a number of different early warning things. The macro things that I focus on the most are unemployment, inflation and rates. If unemployment gets in the 5-plus percent range and is persistent, that's going to be a real problem. It doesn't seem like that's on the horizon. I know there's a lot of concerns over AI. We haven't seen an impact on AI. At the end of the day, our credit is underwritten on cash flow.

The thing that could kill cash flow is losing your job. The other thing that could kill cash flow is taking on other forms of debt that we're not aware of. We do monitor FICO drift. We do monitor other factors to have individual early warning signals. But right now, we're seeing no major issues across the early warning dashboard at the macro level, which looks at unemployment, looks at income levels, looks at debt levels, et cetera. And so we continue to be pretty comfortable in the environment we're operating in. Q1, to me, was a remarkable quarter. If you look at our business, it's really strong across all of the leading indicators. I don't think we've had as much broad-based strength as we did in the quarter in my 8 years at the company, and we're not seeing any changes in the quarter.

There's always a difference between expectations, et cetera. But we have 41% revenue growth at over $1 billion, and that's $1 billion of cash revenue. We had really strong profitability. We've grown our tangible book value by 100% since 2023. So it's been a great environment, and we don't really see it changing. The one thing that is more challenging than we anticipated for this year is rates. We came into the year thinking rates would come down at least twice. Now we're factoring in no rate cuts, which is why we left our guidance for the full year despite beating at where it was. I think if rates do come down unexpectedly, we'll have a huge tailwind in student loan refinancing.

It's already up 100% on its own. Rate cuts would only accelerate even further. Home loans, people are really dying to be able to refinance their mortgages. Many people had adjustable rate mortgages where interest rates are now going up and you need lower rates to refinance at lower levels. Our home loan business, fortunately, is growing 100% year-over-year as well, but rate cuts would accelerate in addition to student loan refinancing. And then on the personal loan side, if there's rate cuts, we'll have people refinancing their existing loans. We have a natural hedge in that we're such a large market share of unsecured personal loans and still gaining share from credit card. As rates come down, we could see a tailwind on the personal loan business as well.

Got it. Look, if you go across the consumer continuum, an affluent consumer, they're spending at the pump might be 15 or 20 basis points a month. A lower-income consumer who's using a vehicle as part of their job, doesn't have the option of working from home, spending the pump might be close to 10%. A 45% increase in gas prices, which is what we've essentially seen in the last month. If we go back to 2022, we saw that have a pretty immediate impact on consumers in the lower middle part of the spectrum. I know that you guys lend higher in the credit continuum, but I am curious how important you think that one inflationary element is.

Our customers have higher income, $100,000 of average household income or more. In the actual products that we lend, it's closer to $150,000. FICO scores in the 750. So 3% interest versus 2% interest is not a big deal. Higher gas prices obviously takes less money out of your pocket. But on a relative basis to the broader portfolio of spending, savings and investing, it hasn't been a factor, and I don't anticipate it being a factor. There are different views on what the right level of sustainable inflation is. I don't think there's a huge difference between 2% and 3%. I think there's a huge difference between 5% and 6% and 2% and 3% for our customers, but we don't see it having an impact.

Great. That's helpful to have you set that context. Look, one of the things that has been another addition to SoFi is SoFi Plus in the subscription model. It's about $10 a month. Historically, we have not seen subscription models be super successful within financial services. Can you tell us a little bit about -- and I say that, and I'm a credit card analyst and you subscribe to premium credit cards. You could argue that there's nothing really different. And what makes premium credit cards, a successful subscription is the value that the consumer sees. Can you talk about how your subscription model is rolling out and what the value proposition is for your consumers?

Sure. And I want to put this in context. We're investing right now in 4 businesses that essentially had 0 revenue over the last year or didn't exist over the last year. So I talked about big business banking didn't exist a year ago. I talked about SoFiUSD didn't exist a year ago. Crypto buy, sell and hold and crypto investing did not exist a year ago. So 4 big businesses that could easily be $100 million revenue businesses pretty quickly like the LPB business ramp so quickly. SoFi Plus is another one. So we launched SoFi Plus originally in the first quarter of 2025, and we learned a lot in 2025. We learned what didn't work.

I think we may have acquired 60,000 paying members during that time period. It was a little bit confusing. You could get SoFi Plus if you were a direct deposit customer and pay nothing for it or if you paid us $10 a month. We spent the year iterating and iterating and learning and asking questions and challenging ourselves and looking at analytics. And I'm telling you people probably when they saw me, they walked the other way, worried I was going to ask them a question about SoFi Plus. I could not be prouder of the progress that we've made over the last year and the success we've seen in just the first 6 weeks of the quarter. So we relaunched SoFi Plus on April 1. We're over 100,000 new SoFi Plus members, I think, as of yesterday, was about 160,000.

That's not a material number relative to 15 million members or even relative to our revenue of over $1 billion. But that's 160,000 people that are going to pay us $10 a month, hopefully, $120 a year for years to come. SoFi Plus is positioned as the best of SoFi. So when you want to use Invest, you can just use regular SoFi Invest. But if you become a SoFi Plus member, you're going to get a better experience, you're going to get better value for us. We've quantified that the value we can create for you if you use SoFi Plus is $1,000 or more in a year. Now you have to take advantage of what we're offering you, but that's the opportunity.

So if you're a direct deposit member today, you're getting about 3.8% interest on your SoFi Money account. If you become a SoFi Plus member, you get 4.5% interest up to $20,000. If you're sitting at $10,000 deposited and 3.8% and you have another $10,000 sitting someplace else, that all should go into SoFi Plus, you'd make more money by paying $120 than by doing anything. So what we've seen so far is 90% of the new SoFi Plus members are existing members, which is perfect. We want our existing members to do more with SoFi and to give them the best of SoFi. So it's the right target. We're seeing a large percentage of them actually taking out another product after they sign up for SoFi Plus and it is a great insight.

We're actually educating people on what else they could do at SoFi, and we're giving them an incentive to do it through SoFi Plus. So it was a direct new revenue stream. If we get to 1 million members, $120 million a year, I'd be super disappointed if 2 years from now, we didn't have at least 1 million members, hopefully, it's sooner. So we get a direct $120 million. There's a bunch of things that will accrue value beyond $120 million, i.e., if we get double the deposits from someone that only has $10,000 to $20,000, another revenue stream, not to mention spending and the ability to use those deposits to monetize our loans. But in addition to that, they're taking out another product. And so cross-buying is happening naturally.

And so we will continue to put more and more value into SoFi Plus to give people the best of SoFi. I'll give you 2 other examples. We just bought a small business called Composer. Now Composer is an AI-driven portfolio creator. You can go on Composer and create your own AI portfolio. Maybe we'll let you do that twice for free. But if you want to do it a third or fourth or fifth time or some other value added, you're going to have to sign up for SoFi Plus to get access to it. We've been building subscription cancellization. One of the things you can ask SoFi Coach when it launches to the public is how much did I spend on subscription in the last 30 days? SoFi Coach, if you have the accounts all connected, you will see those subscriptions from your credit cards. Eventually, you'll be able to click on that and say, cancel and it will cancel automatically.

The first version will be put in your user name and password. As soon as we start canceling subscriptions for you, maybe after the second or third one, we'll say if you'd like to do a fourth or fifth, sign up for SoFi Plus to get unlimited access to subscription cancellization. Again, another way to show how using SoFi's products makes it better together and differentiating that product. So I'm super excited about SoFi Plus. I've been amazed by the growth since April 1. I couldn't be proud of the team because it's classic SoFi, learn, iterate, learn, iterate, and it drives innovation. Now people are trying to create value-added services just for SoFi Plus to drive their own business. 15 million members, 160,000 SoFi Plus members, you do the math, there's a big opportunity there.

And if -- again, it's early days. Let's pretend it's 2 years from now, and you've reached your 1 million members, and it's $120 a year and there's $1,000 of cost savings a year potential. What's the pie chart look of -- how many people are achieving less than $120 worth of value, how many are achieving $121 to $500 and how many are extracting more than $500 -- what percentage are extracting more than $500?

I would be making up the answers at this point. But here's what I will say. When they take out that third product, it is more valuable to us because we have not paid a customer acquisition cost. We have target customer acquisition costs for all of our products. When people cross-buy into those products, that drops to the bottom line. So for example, personal loans and student loans, those products have roughly a $600 to $800 customer acquisition cost. We make $800 to $1,000 in variable profit after the customer acquisition cost. So illustratively, if someone is not a SoFi personal loan borrower that becomes a SoFi Plus member, because they have SoFi Checking and Savings.

They sign up for SoFi Plus, and they take out a loan, that loan has a variable profit of $1,600. It literally doubles the variable profit and the LTV of that personal loan. It more than covers the $120. It more than covers the value that we've created in other places. So our competitive advantage is that we have the highest lifetime value and the best unit economics. And they're only getting stronger at the scale that we have. It allows us to give people better interest rates on checking and savings, lower interest rates on loans and more valuable services like subscription cancellization like Coach, which will launch next year, like Composer.

Got it. Look, you could talk about this all day. I could ask you questions until the last person trying to wander sheepishly out of the room. But in 2 minutes and 23 seconds, she's going to turn out the lights on us. ROE path. How long do you -- I mean, is this a 20%, 30% ROE business? And how long do you think it takes you to get there?

We believe it's a 20% to 30% ROE business. Today, the commitment we've made is that we're going to continue to grow our revenue at over 30%. We want to do that for as long as we can. And as we're doing that, we'll deliver profitability of a 30% incremental margin. Now why are we doing that? We want to show the investment world that this is a high-margin potential business. We've already gotten to 30% EBITDA margins. I don't think it's that far to go to believe this is a 40-plus percent EBITDA margin business, but we're not going to keep driving that margin while we have the growth in front of us. The bigger our revenue gets, over time at that margin profile, the more return will drop to the net income line. And so we think we can get to 20%, 30% ROE. Now that does assume that we're going to have a diversified business.

Over the trailing 12 months, 50% of our net revenue was in lending and 50% of our net revenue was in non-lending. That's the type of mix that will allow us to get to that ROE. If the mix goes even higher to non-lending and noncapital intensive, it will actually drive an even higher ROE. The things that I'm mentioning, SoFi Plus, SoFi Crypto, SoFiUSD, Big Business Banking, they're not capital-intensive businesses. They are high-margin, high-return businesses that will only add to that equation, and we'll continue to balance over time. We talked about 5 new businesses and 5 new revenue streams in SoFi Plus, Big Business Banking, SoFiUSD and crypto trading, investing and then lending.

We still have tremendous growth in SoFi Invest, in LPB, in the credit card business and the SoFi Money business. We released this quarter a measure for cash revenue, and we broke it down between net interest income, which I already mentioned that $690 million of net interest income as well as cash revenue from noninterest income, which was $390 million. You can model the growth of that business in the following way. Take out of it, the $120 million of LPB, which is not really a product-driven business, and then take the remaining and put that over products. That is revenue per product. Our products are growing roughly 35% to 40%. So grow products out at that rate or whatever you're comfortable with over time. The revenue per product is likely going to go up.

Why is revenue per product going to go up? SoFiUSD is new revenue. Crypto trading is new revenue. Big business banking is new revenue. SoFi Plus is new revenue. SoFi Invest is undermonetized. It's at about 70 basis points. It could get to 90 or 100 basis points as we add more valuable services. The credit card is undermonetized. It's about a 13% effective interest rate going up to 17% and hopefully higher than that over time. And the ability for us to continue to add revenue per product and product will drive that other revenue stream that will drive ROE as well. So in total, we're really happy with the composition of our business and what we think the long-term return is.

And the last thing I'd say is there's a couple of metrics that we released that people aren't doing the math on, and I want to do it for them. If you look at our net interest income from Q1 of 2024 to Q1 of 2026, it's roughly $4.6 billion. It's right in the income statement, add it up. It's largely all cash, virtually all cash. So $4.6 billion of cash net interest income people have paid to SoFi. If you look at the premium that's in our balance sheet and that we disclose from fair market value accounting, it's about $2 billion. That means we're generating more than 2x in cash, net interest income cash against the noncash revenue recognition from the premium, which is pretty remarkable when you think about the quality of our loans and the returns. That will also give you greater confidence when I say we can get to a 20% to 30% ROE.

I also said to you that we were going to have so much fun that we're going to turn the lights out on us. We're out of time. But Anthony, thank you so much. It really was a tremendous amount of fun. Thank you.

Thank you.

Good morning. My name is Julienne, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies First Quarter 2026 Earnings Conference Call. [Operator Instructions]

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's First Quarter 2026 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the first quarter of 2026 versus the first quarter of 2025.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements.

Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I would like to turn the call over to Anthony.

Thank you, and good morning, everyone. We've had a remarkable start to 2026. Our relentless member focus continues to drive innovation across our business, leading to our 18th consecutive quarter of the Rule of 40 with a score of [ 72% ] reflecting 41% revenue growth and 31% EBITDA margins. Notably, this was the second consecutive quarter that we have generated more than $1 billion in cash revenue. In Q1, we generated over $1 billion in cash revenue, consisting of approximately $690 million in cash revenue from net interest income and about $390 million in cash revenue from interchange fees, brokerage fees, technology and loan platform fees and loan origination fees. In fact, in both 2025 and 2024, more than 100% of our adjusted net revenue was cash revenue at $3.8 billion in cash revenue in 2025 and $2.7 billion in cash revenue in 2024. Our durable growth with an acceleration in revenue growth and strong returns and profitability is fueled by our consistent focus on innovation and brand building.

Our mission remains the same. We help people reach financial independence to achieve their ambitions, helping them get to the point where they have enough money to live where they want, have the size family they want, the house they want, the career they want and retire when they want. Other financial institutions pick and choose the products they offer based on how much money they can make off of their customers. And as such, they don't deliver the holistic experience people need to make their ambitions a reality. That's why SoFi delivers the everything financial app with unquestionably the most comprehensive set of digital financial tools and resources to help our members get their money right.

Our critical success factor is helping people spend less than they make and invest the rest. Savings is not enough. Saving will help you get by, but investing is critical to get ahead to achieve your dreams. In order to achieve this critical outcome, we must help our members borrow better, save better, spend better, invest better and protect better. we cannot just offer the products that are the most attractive financially. We need to be there for our members not just for the large financial decisions in their lives but are all the days in between.

It's not just our opinion that SoFi's the best. We are hearing it from others as well. In March, we ranked #1 in the J.D. Power 2026 U.S. Investor Satisfaction Study for do-it-yourself investing. This award validates our approach to building our Invest product in a thoughtful member-centric way, and we're excited to now be helping a record number of members invest for a better future.

Also just this month, SoFi was named the #1 U.S. Bank by Forbes in their World's Best Banks ranking, beating out institutions that have been around for decades. As part of this comprehensive survey, response were asked to rate banks on a customer service, digital services, financial advice and perhaps, most importantly, trust. Our goal is to become a household trusted brand name, so we couldn't be more proud of this recognition that we are building trust with our members.

While we are pleased with these achievements, it's still day 1, and we are far from where we aspire to be. In fact, this recognition further fuels our drive, continuous iteration and learning leading to innovation is the key to our success. It powers our growth and it strengthens our returns for shareholders. Over the past 8 years, we've grown members by more than 20x from 650,000 to 14.7 million members. In Q1, we once again added a record number of new members at 1.1 million new members, increasing total members by 35% year-over-year to 14.7 million. We also added a record 1.8 million new products in Q1, increasing total products by 39% year-over-year. We now have 22.2 million products.

SoFi continues to accelerate with 43% of new products opened by existing SoFi members versus 40% last quarter and 36% in Q1 of 2025. This clearly demonstrates the effectiveness of our everything financial services app strategy and our ability to build deeper multiproduct relationships with members, which in turn will drive higher lifetime value.

Our strong member and product growth powered our revenue growth in the first quarter. Adjusted net revenue was ahead of expectations at $1.1 billion. This is up 41% year-over-year, an acceleration from last quarter's very strong growth rate. Our Lending segment had a particularly strong quarter, generating $629 million in adjusted net revenue. Importantly, our net interest income and origination fees in the Lending segment totaled $639 million this quarter. In total, we had our best quarter ever for loan originations at $12.2 billion, which was up nearly $1.7 billion from just last quarter and included record originations across personal, student and home loans.

Of the $12.2 billion in originations, $9.2 billion was for our Lending segment and $3 billion was for our loan platform business. The development of our loan platform business over the last 18 months has allowed us to better meet the borrowing needs of more members. Our strategy for what we put in the balance sheet versus through the loan platform business remains guided by the principle that LPB loan originations reflect the incremental volume we would not otherwise originate for SoFi's balance sheet for a variety of reasons, including capital ratios, managing the overall growth of the balance sheet and their credit profile of borrowers.

In addition to being able to serve more members through these two channels, they also provide greater revenue diversification. For example, Balance sheet originations provide very visible and recurring cash revenue generation through net interest income over the life of the loan. In Q1 2026, we generated $690 million in cash net interest income which provides revenue visibility further contributing to our durable performance and cash generation. But this also comes with default risk and capital usage over the same time period.

LPB loans, on the other hand, paid the majority of cash upfront but free up capital instantly and remove their credit risk for SoFi. Together, financial services and our technology platform generated revenue of over $500 million an increase of 24% year-over-year and representing just under half of our total revenue. Our Financial Services segment continues to deliver impressive revenue growth, up 41% year-over-year to $429 million. The Technology Platform segment delivered net revenue of $75 million, which was negatively impacted by the loss of a previously discussed large customer. Total fee-based revenue across our business was $387 million, up 23% from the prior year.

In addition to delivering durable growth, we delivered strong returns and profitability. In the first quarter, adjusted EBITDA was $340 million, up 62% year-over-year. Our adjusted EBITDA margin for the quarter was 31%. Our incremental EBITDA margin was 41% as we continue to balance reinvesting in the business to drive long-term growth and profitability. Net income in the quarter was $167 million at a margin of 15%. Earnings per share were $0.12 or $0.13 on a constant stock price basis quarter-over-quarter. Finally, our tangible book value ended the quarter at $9.2 billion, up 83% year-over-year and $7.21 per share, which is up 57% year-over-year. It is clear that our diversified business is uniquely built to deliver a winning combination of growth and returns. And we continue to invest heavily to make our existing products even better to build new products to help our members get their money right and to further strengthen our trusted brand name. These investments will power our durable compounding growth and drive strong returns as we continue to scale.

Let me now spend a moment discussing our brand building efforts which are key to driving new members to SoFi, feeding our productivity loop and growth. In the first quarter, our unaided brand awareness rose to an all-time high of 10%. That's up 300 basis points from a year ago. This is a reflection of our ability to meet our members where they are with the message of financial empowerment. So far in 2026, we completed another successful season of TGL presented by SoFi which recorded significant fan engagement and momentum. We also kicked off the NBA playoffs with the SoFi Play-In tournament featuring 6 incredible win-or-go-home games that brought in nearly 20% more viewers than last year and set new records for social and digital viewing. We also expanded our talent partnerships, adding two world-class golfers to Team SoFi, Justin Thomas and Charley Hull. Justin and Charley are true winners who share our passion for helping people get their money right.

Beyond our strong sports marketing efforts, we are engaging with members earlier in their lives so they can build a better future from day 1. For example, this year, we kicked off our Future Wealth Summit, a national campus tour designed to help college students navigate key financial decisions and plan for life after graduation. Students today are making some of the most important [ frontal ] decisions of their lives without the guidance they need. We're excited to bring practical education on banking, credit monitoring and investing to put them on the path to success.

Turning now to product innovation, starting with crypto, which has been a key focus over the past year. We believe the crypto super cycle that is underway will completely transform financial services, enabling frictionless money movement. We are well positioned to benefit from this super cycle given our unique position as a tech company that is underpinned by the strength and stability of being a national bank. This is why we've been building a strong foundation on which we can develop and grow multiple new products and businesses and realize the benefits of crypto and blockchain across our entire ecosystem.

In December, we took a big step forward on this journey with the launch of SoFiUSD. This managed the first national bank to launch its own stablecoin on a public permissionless blockchain. So SoFiUSD is at the heart of our strategy to make it faster, cheaper and safer for people around the world to move money. During Q1, we began minting SoFiUSD, the next step towards building compelling use cases for the coin. We also formed an important partnership with Mastercard to enable SoFiUSD settlement across their global payments network. This will create interoperability between digital assets and fiat currencies and eventually allow for the settlement of transactions 24 hours a day, 7 days a week versus just during business hours now.

This brings me to our new big business banking offering, which was officially launched earlier this month. Today, companies operating fiat and crypto are forced to use multiple providers and are left waiting days for transactions that should take seconds. As a nationally chartered bank, we saw a tremendous opportunity to bring fiat and crypto banking to businesses on a single, integrated and fully regulated platform. Our big business banking clients can hold funds in regulated business deposit accounts with institutional-grade safeguards, move money and crypto in real time with API-driven payments and given fiat and crypto instantly through native SoFiUSD net and burn capabilities while maintaining reserves within SoFi's regulated environment. We will start with companies that are operating in crypto or crypto adjacent industries, but as more and more companies look to operate across both fiat and digital assets, SoFi will be able to support those needs at scale, including on behalf of other large banks.

Turning now to an update on SoFi Plus, our premium membership. Plus is positioned to be the best of every SoFi product, all wrapped into one member experience. On April 1, we relaunched SoFi Plus with significantly enhanced benefits to bring the best of SoFi strategy to life while making a product a pay-only subscription. With the relaunch, we expanded our benefits, which now include our highest APY in deposits at 4.5% for up to $20,000, 1% matched in deposits into taxable SoFi Invest accounts, 1% match on crypto purchases, unlimited one-on-one sessions with financial planners, a boost on SoFi credit card rewards and so much more. Overall, this membership can unlock well over $1,000 in annual value for a fee of just $10 per month, less than the cost of today's lunch and we will continue to roll out product enhancements and expand our offering while also providing special member options for military members and young adults as well as through our SoFi At Work partnerships.

The initial results of SoFi Plus since April 1 relaunch have been incredibly positive. We have seen strong growth in new paying subscribers and the vast majority of new Plus paying subscribers or existing SoFi members who subsequently take out an additional product after signing up for Plus. SoFi Plus is not only driving a recurring and visible cash revenue stream that is enhancing the awareness of the significant breadth of SoFi products as an everything app and in turn, driving greater cross [indiscernible] and increased lifetime value. I would encourage everyone listening to try our rewards calculator on our website to see just how much you can earn from SoFi Plus.

Now to our Tech Platform segment. We entered 2026 with the most comprehensive set of capabilities we've ever offered banks, fintechs and brands. Given the breadth of our products, which extend well beyond the capabilities we acquired through Galileo and Technisys, we will be launching a new unified brand and restructured go to market later this year. Over the coming months, we will roll out the new brand, SoFi Technology Solutions. The new brand reflects the more comprehensive set of products and services that we now offer enterprise clients across a total of 4 platform businesses. First, in processing, we continue to see strong momentum with our client rollouts on our modern cloud-based processing platform. We have 13 new clients that generated revenue in the first quarter that were not generating revenue a year ago including successful implementations with fintechs and major consumer brands.

We've built a healthy pipeline of additional customers and are excited to get more programs off the ground in the future. For example, in 2026, we are launching an expanded relationship with 1 of the top 3 telecommunication brands in the U.S. and a new program with a financial services firm in the short-term lending space.

Our second platform, Banking Core Ledgers and Services includes our modern banking core and the many turnkey API powered solutions needed for banking-as-a-service offerings. In this business, we are about to take a major step forward. This summer, we will complete the implementation of our new core platform with SoFi Bank, our first scaled launch with a U.S. regulated bank. This will serve as a launching point to bring our new banking stack to other institutions. For SoFi Bank, our new core process platform will integrate seamlessly with our payments, fraud and card capabilities and importantly, will support ledgering for stablecoin in day one. In fact, the modern core will serve as the backbone for our planned crypto endeavors. We look forward to bringing this new banking stack to other institutions and building the next generation of our digital application platform.

Our vision for our third technology platform business, Payment Hub, is to provide self-serve payment options across every type of money movement, including stablecoins that are faster, cheaper and more secure. Our API-first approach makes it easy to connect to ACH, same-day ACH, wires, FedNow, person-to-person payments and real-time payments. Partners can manage payment flows with ease, maintain compliance and offer a better customer experience. And we'll soon add SoFiUSD payment APIs to our big business banking offering.

The fourth SoFi Technology Solutions platform focused is our risk and fraud platform. Within this platform, we currently offer 7 products that address transaction fraud, account identity verification and account takeovers including Galileo instant verification engine for real-time API-based account verification, our payment risk platform for transaction fraud and an identity verification service, which covers advanced compliance and sanction scenarios. These products leverage our latest models, often using over 600 data points for a single decision, and we are launching additional products in 2026 to further bolster our risk and fraud offering.

Turning now to innovation within our Lending segment, which is driving record originations across all 3 loan categories. Starting with personal loans, we would support our mission of helping members reach financial independence. With the SoFi Personal Loan, members can refinance absurdly expensive credit card debt held at other institutions so they can stop paying for other people's rewards and focus on their own financial well-being. During the first quarter, we originated record personal loan volume of $8.3 billion, taking share from competition and helping even more members get their money right.

We see significant opportunity to help more people refinance high interest debt, and we will continue to innovate with new product features and leverage technology to improve the member experience. For example, we're rolling out our Personal Loan Doc Coach which uses AI to validate members pay subs and other documents, streamlining the application experience and driving cost savings over time. We're also testing new credit model features that can leverage enhanced data pools. This has the potential to help us make even better decisions that potentially extend credit to more members in the future.

SoFi Student Loans help more and more students finance their education while they are in school as well as supports students who have already graduated by helping them refinance their debt at a lower rate. Student Loans have been a great way to introduce the SoFi brand and what we stand for to members early in their financial journey. Over time, we'll be there as their financial needs grow, which is why the value generated by our student loan business extends well beyond the interest income we collect on the initial loans. In Q1, we had our best quarter of student loan originations ever at $2.6 billion. This is up 2.2x year-over-year but originations volume is more than just a number. In generating this volume, we helped nearly 10,000 members finance their education so they can realize their ambitions, and we helped over 10,000 members to completely pay off their student loan debt.

Turning to Home Lending, which is an area I'm particularly excited about. We've been hard at work creating a fast seamless experience for our members who want to purchase a home, refinance an existing loan or draw equity. Even while the overall home lending market is stagnant, momentum has been building in this business. We set origination records for 4 straight quarters, including Q1 when we originated $1.2 billion in home loans. This is up nearly 2.4x from the first quarter of last year. Here, too, we continue to innovate. For example, last week, we announced a new equity line of credit experience, making it possible for members to access to equity in their homes through a seamless end-to-end experience on the SoFi platform.

Finally, we continue to see healthy growth in our tangible book value. We recognize there has been ongoing discussion around last year's capital raises and their impact on dilution. As we previously explained, these capital raises were opportunistic with proceeds intended to be deployed across a range of opportunities. Based on our analysis, the capital raises would not be dilutive to tangible book value on a per share basis. And this has proven to be the case. Our tangible book value per share increased 57% year-over-year to $7.21, up from $4.58 per share and is up 3% quarter-over-quarter from $7.01 a share. This is nearly $340 million of an increase in absolute terms.

As you can see, our financial results are being driven by continuous innovation that is providing real value to our members. We continue to focus relentlessly on driving innovation and developing products and solutions to help our members navigate all the major financial decisions in their lives and every day in between. We will continue to put our members first and help them achieve their American dream. Over time, the trust that we build with our members will lead to deeper relationships. This, in turn, will drive a higher lifetime value per member and will power our compounding growth and returns.

With that, I'll turn it over to Chris.

Thank you, Anthony. We've had a solid start to the year. Our innovation in brand building is powering exceptionally strong revenue growth. In the first quarter, adjusted net revenue grew 41% to $1.1 billion. This is a further acceleration in the growth rate from the prior quarter. Importantly, we generated $1.1 billion in cash revenue in Q1 which includes approximately $690 million from net interest income and approximately $390 million from interchange fees, brokerage fees, technology and loan platform fees and loan origination fees. Cash is defined and accounted for the same universally no matter what type of company it applies to. In the first quarter, these cash revenue streams were nearly equivalent to our total reported adjusted net revenue. This is the first time we have disclosed our cash revenue as we think it's a helpful financial measure to consider given the different accounting treatments companies use. As we mentioned, it's our second consecutive quarter of more than $1 billion in cash revenue, but I would also note that 100% of our reported adjusted net revenue was cash revenue in both 2024 and 2025. This means that the scale and seasoning of the loans on our balance sheet has reached the point where the upfront noncash premiums on new originations are being balanced by pull to par and other mark-to-market impacts on the existing portfolio leaving the vast majority of our reported revenue being approximately equal to our cash revenue. We have consistently said that over the life of the loan, there is no difference between fair value accounting and cost accounting, and we are seeing that play out in our reported results.

In addition to our strong revenue growth, we delivered strong profitability during the quarter. Adjusted EBITDA was $340 million, up 62% year-over-year at a margin of 31%. Net income was $167 million at a margin of 15%. Net income was up 2.3x year-over-year, and earnings per share was $0.12, which was negatively impacted by $0.01 due to a decrease in discrete tax benefits related to employee stock compensation given share price movement between Q4 2025 and Q1 2026. At a constant share price quarter-over-quarter, EPS would have been $0.13. This was our tenth consecutive profitable quarter.

Turning now to our segment performance, starting with Financial Services. For the first quarter, Financial Services net revenue was $429 million up 41% year-over-year. Contribution profit was $196 million, up 32% from last year, and contribution to margin was 46%. Net interest income for this segment was $228 million, up 31% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 55% to $201 million for the quarter. During the quarter, we continue to see healthy growth in interchange up 54% year-over-year, driven by nearly $25 billion in total annualized spend across money and credit card. We also had record brokerage fee revenue, which more than doubled over the past year.

In terms of our loan platform business, one of our key differentiators at SoFi is having both a very strong balance sheet and an established loan platform business supported by a diverse set of partners that go well beyond private credit asset managers. In fact, during the quarter, we added $3.6 billion of new commitments with 3 new partners, including a leading global bank, a prominent insurance group and a top 5 global private asset management firm. Our diversified model allows us to efficiently channel loan volume based on a number of factors, including borrower demand, capital levels and credit risk with a focus on maximizing risk-adjusted returns. Each channel we utilized provides benefits to our business. For example, our balance sheet lending generates stronger revenues over the life of the loan, whereas LPB generates capital-light fee income with no retained credit risk or loss share agreements. Having this optionality will allow us to generate more a consistent growth through a variety of environments. Overall, during the first quarter, we saw exceptional demand from members, which is reflected in our record personal loan originations of $8.3 billion.

Given our very strong capital ratios, we channeled nearly $5.4 billion of personal loans to our balance sheet and approximately $3 billion through our loan platform business. This deliberate decision resulted in lower LPB originations relative to the fourth quarter, although LPB originations were up 90% year-over-year. I would note that we had significant demand from LPB partners over and above what we decided to fulfill this quarter, but we did sell all demand from our contractual commitments and more.

Turning to our tech platform business, where we delivered net revenue of $75 million in the first quarter reflecting the exit of a large client who fully transitioned off our platform prior to year-end. Contribution profit was $12 million at a contribution margin of 16%.

Turning to our Lending segment performance, which was very strong during the quarter. In addition to record personal loan originations of $8.3 billion, we also saw record originations in student and home loans. Student loan originations were $2.6 billion, up 2.2x from the same period last year. Home loan originations were $1.2 billion, up 2.4x from the prior year. For Q1, adjusted net revenue for the segment was $629 million, up 53% from the same period last year. Contribution profit was $382 million with a 61% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 39% year-over-year to $500 million and the balance of the growth came from loan origination fees, which were up 36% year-over-year in home loan sales, which were up more than 2x year-over-year.

Capital markets activity was strong in the first quarter. We've sold or transferred to our loan platform business, $3.8 billion of personal and home loans. In terms of home loan sales, we closed $765 million at a blended execution of 102.1%. Additionally, we sold $89 million of late-stage delinquent personal loans in line with prior quarters.

In addition to our loan sales, we executed a $919 million securitization of loans originated on behalf of our partners through the loan platform business. The transaction priced at an industry-leading cost of funds level with a weighted average spread of 86 basis points, our best execution for any securitization deal to date. To meet standard industry risk retention requirements, we contributed loans from our balance sheet that represented a 5% vertical slice across the securitizations tranches. Importantly, we do not retain any first loss or horizontal risk position.

Turning to credit performance. Our credit remains strong, performing in line with our expectations and driving attractive returns across all loan types. Our personal loan borrowers have a weighted average income of $154,000 and a weighted average FICO score of 745 while our student loan borrowers have a weighted average income of $161,000 with a weighted average FICO score of 767. For personal loans, the estimated all-in net charge-off rate was flat quarter-over-quarter and down nicely from a year ago. Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 4.4%, which was the same as last quarter and down roughly 40 basis points from the first quarter of 2025. Including the impact from the [ DQ ] sales, the net charge-off rate was 3.03%. This is up 23 basis points from the fourth quarter, but down 28 basis points for the first quarter of 2025. The sequential increase was primarily a function of us maintaining consistent [ DQ ] sales of around $90 million per quarter while our balance sheet grew at a faster pace. Beyond balance sheet, 90-day delinquency rate was 47 basis points, down 5 basis points from the last quarter. For student loans, the annualized charge-off rate was 65 basis points, down 11 basis points from the prior quarter. Beyond balance sheet, 90-day delinquency rate was just 10 basis points, down 4 basis points from the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans, in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originating from Q4 2022 to Q2 2025 have net cumulative losses of 4.64% with 36% unpaid principal balance remaining. This is well below the 6.32% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve widened by 9 basis points during the quarter. In fact, this gap has widened each of the last 7 quarters since we began measurement. Additionally, looking at our Q1 2020 through Q4 2025 originations, 61% of principal has already been paid down with 6.8% in net cumulative losses. Therefore, for life of loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 39% of unpaid principal would need to be approximately 10%. This would be well above past levels at similar points of seasoning, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. These markets are developed alongside a third party, which feeds our actual loan level data into their proprietary model and are reviewed by our independent auditor as detailed in our filings. At the end of the first quarter, our personal loans were marked at 105.4%, down 27 basis points from the prior quarter. This was driven by an increase in the discount rate, which was due to a higher benchmark rate as well as a modest decline in WACC and a modest increase in the default rate assumption. These changes were partially offset by a modest decrease in the prepayment rate. At the end of the first quarter, our student loans were marked at 105.2%, down 40 basis points from the prior quarter. This was driven by an increase in the discount rate due to a higher benchmark rate and was partially offset by a modest decrease in the prepayment rate. The WACC and default rate assumptions remained relatively consistent with the fourth quarter.

Turning to our balance sheet. In the first quarter, total assets grew by $3 billion. This was driven by $4.1 billion of loan growth, partially offset by a reduction in cash, cash equivalents and investment securities of $940 million as a result of using some of our equity to fund loans. Total company-wide cash at quarter end was $3.8 billion. On the liability side, total deposits grew by $2.7 billion to $40.2 billion primarily driven by growth in member deposits. Our net interest margin was 5.94% for the quarter, up 22 basis points sequentially. This included a 25 basis point decrease in cost of funds, partially offset by a 2 basis point decrease in average asset yields. We continue to expect a healthy net interest margin above 5% for the foreseeable future. In terms of our regulatory capital ratios, we are very well capitalized. Our total capital ratio of 21% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $4.2 billion year-over-year to $9.2 billion including the benefit from new capital raised in 2025 as well as organic growth in earnings. The tangible book value per share at quarter end is $7.21 up from $4.58 a year ago, a 57% increase.

Let me finish by providing our outlook for Q2. In line with market expectations, we now expect an interest rate outlook consistent with the Fed funds futures and no rate cuts in 2026. Now for our specific guidance. For the second quarter of 2026, we expect to deliver adjusted net revenue growth of approximately 30% from Q2 '25, which would equate to roughly $1.115 billion, an adjusted EBITDA margin of approximately 30%, which would equate to roughly $330 million and an adjusted net income margin of approximately 12% to 13%, which equates to roughly $0.10 to $0.11 of EPS. As I mentioned in our call in January, each year, we have seasonal payroll taxes during the first two quarters of the year, and we are accelerating marketing expenses in the first half of 2026 in addition to our significant investments in product innovation. This increased expenditure will drive growth in the back half of 2026 and over the long term, and it is reflected in our second quarter guidance.

Looking beyond Q2, we expect to see continued revenue growth and strong growth in EBITDA, net income and EPS, which will get us to our full year guidance, which remains unchanged. Overall, Q1 was a solid start to the year. We continue to have strong momentum in our business and are on track to hit our 2026 and medium-term guidance.

Let's now begin the Q&A.

[Operator Instructions] Our first question comes from Andrew Jeffrey from William Blair.

I appreciate you taking the question. Anthony, I wonder if you can put a little finer point on the decision process by which you determine how much you want to hold on your balance sheet in terms of personal loans versus the LPB. Wouldn't it behoove the company to maximize platform sales in this environment, hence, fee income? I'm just trying to understand exactly what the puts and takes are when you look at that decision every quarter.

Sure. Thank you for the question. We have a lot of optionality when it comes to thinking about how to deploy our capital and how to optimize revenue and profits. Our goal, as we say each quarter is to drive durable revenue growth through innovation and branding and to deliver strong returns. And so when we think about the two options, if we're going to put loans on our balance sheet, they obviously require capital and they have credit risk. But they also have a revenue stream that lasts 2 to 3 years as it relates to personal loans. And so that generates really attractive net interest income to us. But obviously, there's a limit to how much we can put on our balance sheet based on our capital ratios and other risks that we're balancing. LPB revenue, on the other hand, doesn't require capital. We're basically producing on behalf of somebody else. And so it doesn't have retained credit risk and it has the cash flow upfront. And so we'll use those underlying factors as we think about the considerations. But what I said in the prepared remarks and what I'd say here is the loan platform volume that we do is essentially the volume that we would not otherwise do for our balance sheet based on all the factors that I just considered. So putting less on our balance sheet may be a driver, and therefore, we don't want to underwrite it, and we, therefore, do with our loan platform business. Similarly, depending on what our revenue streams are a year from now, we want more NII in that period relative to cash flow in this period. Some people will raise the question about concerns about private credit. We're not really seeing any issues in our own performance nor in the demand that we have for LPB revenue and loans from our partners. In fact, we have demand above our contractual obligations that we have on volume that we're producing. But the volume that we put through that channel is volume that we would not otherwise do in our balance sheet because of either our concerns on credit ratios or the capital ratios or credit profile or growth overall on the balance sheet. So it's a good option to have. But I wouldn't think about it as maximizing near-term revenue, it's a balance between near term and longer term revenue.

Our next question comes from Dan Dolev from Mizuho.

Really strong results here. Congrats. Chris, a question for you. Can you maybe give us some color on the segment level guidance? And then I have a very quick follow-up.

Yes, sure. So as I mentioned in our prepared remarks, we feel really good about our 2026 outlook. We're going to be growing 30% top line and delivering $0.50 of EPS. From a segment perspective, as we've said in the past and in any given period, some of our segments may grow faster than expected. Some may be a bit slower. But we're going to effectively allocate capital and resources to the best opportunities that we see in front of us. Given the strong start that we've had to the year, we now expect lending adjusted net revenue growth of at least 30% for the full year of 2026. We expect our tech platform net revenue to be approximately $325 million for the full year. We continue to expect our Financial Services adjusted net revenue growth of at least 40% and then we continue to expect corporate revenue to be in line with what we did in 2025.

Our next question comes from Kyle Joseph from Stephens.

Two quick questions and I hate to focus on accounting rather than results, but I get a lot of questions here. Chris, just give us your thoughts, walk through your accounting on and rationale for capitalizing the market expenses and how you see that impacting EPS and EBITDA. And then just a follow-up there. Just talk about the JPMorgan facility and the difference between a loan sale versus borrowing. If you could give us some clarity on both those much appreciated.

Sure. Thanks, Kyle. So in terms of the capitalized marketing costs, at a high level, what I would say is that we sometimes partner with third parties as an efficient top-of-funnel marketing channel where we pay success-based commissions for acquiring revenue-generating money and invest members. This does not include acquisition of our lending or our credit card members. From a high-level accounting perspective, those payments are incremental, and we're only incurring them upon successful acquisition of the member so under ASC 340-40, they're accounted for as contract acquisition cost, which is very similar to capitalized software expenses that drive future revenue. As a result, we capitalize those costs and amortize them over the expected member life to better match the cost with the debit interchange and brokerage revenue that those members generate over time. What's also important is that the amortization is treated as an expense in EBITDA and net income, i.e., it lowers EBITDA and net income. So we're simply aligning the timing of the cost with the revenue that it supports.

And then as it relates to the JPMorgan loan sale. Prior to September of 2024, we had a senior secured loan on the balance sheet that had no affiliation with JPMorgan. In September of that same year, we opportunistically sold the loan via a special purpose entity to JPMorgan. At the time of the sale, JPMorgan held a controlling interest in the special purpose entity and SoFi did not retain a controlling interest. At that time and what is customary with any new loan sales, we obtained an independent third-party true sale opinion as part of confirming that the transaction method requirements for sale accounting under GAAP, including legal isolation. Based on that, the loan was appropriately derecognized from our balance sheet.

And just want to emphasize one important point about the marketing expenses that are amortized. They are subtracted from revenue, and therefore, they do result in a lower EBITDA is those amortized marketing costs are not excluded from EBITDA. They are expensed against revenue and lower EBITDA.

Our next question comes from Devin Ryan from Citizens JMP.

Another question on loan platform. Obviously, good to see a few new partners and expanded capacity this quarter. Can you just characterize the current depth of demand from third-party capital providers and where there's the most interest rate now? And also just how that evolves through the quarter just given some of the pockets of volatility. It sounds like a little change there. But ultimately, just kind of what that pipeline looks like. And then on the other side of the equation, [indiscernible] just hear about what you're seeing from customers in terms of personal loan demand and also how you're optimizing the funnel to move faster on originations or just even improve market awareness?

Sure. I'll hit on the loan platform piece, and then I'll let Anthony hit on some of the personal loans. But on the loan platform, business demand from capital partners, it remains extremely robust. We announced several partnerships last year with Blue Owl, Fortress and others, and those partnerships are going extremely well. Each of the partners is buying at their contractual level and even above that in several quarters and each of our partners who have come up on term in their existing contracts have extended their contracts. In addition to that, we recently signed up and announced 3 new partnerships totaling about $3.6 billion of commitments over the course of the next 2 years, and that comes from a large investment bank, a large asset management firm and an insurance fund. So the demand that we're seeing is pretty broad-based. It's across asset managers, it's across insurance funds and several investment banks. We couldn't be happier with the demand that we're seeing. And as Anthony mentioned, it's a great situation to be in to have the flexibility both on the balance sheet with the capital ratios that we have as well as the demand that we're seeing from capital markets participants.

And then as it relates to demand, we had a record originations in personal loans [indiscernible] loan refinancing as well as in home loans, our home loans business more than doubled year-over-year, and I believe our [indiscernible] loan business also more than doubled year-over-year in originations and personal loans remains quite robust. We continue to iterate and learn and innovate on every one of our businesses. While these businesses have scaled quite meaningfully and they've been around and they're long tenured, there's still innovation that can be driven. In personal loans, we continue to find new channels of demand. It is definitely a product that is primarily being used today to refinance expensive credit card debt. And so it's real savings with real amortization of expenses that help people get to a better point financially and get to the point that they spend less than they make and invest the rest. So it's a really critical product for our members. On [indiscernible] and refinancing, we had the highest amount of originations that we've had in our history, which is quite remarkable. And it's a product that again helps people lower the cost instantly relative to their existing federal student loans or even private student loans at a higher rate, and that's a product that will definitely benefit even more so as rates go down, given the amount of savings they have today versus benchmark rates that will only improve. The savings in personal loans are dramatic. The savings in [indiscernible] loans are less attractive, and getting more attractive as rates come down. And then in home loans, we're iterating every day to try to get to an outcome that is super fast for our members. We would like to ideally, and I hesitate to say this because I don't know that we'll ever get there, but we're aspirational. We would like to ideally get to a 10-day application to close on a new home on a first lien loan. Getting to 10 days would be remarkable and would be a unique value proposition. Again, we're trying to differentiate each one of our products based on fast selection content convenience and better together. On the home loan, product is largely one but I think comes down to speed, ease of use, which can be a great benefit from AI, which is what we're using to try to drive that faster experience. So strong growth in all 3 products. Credit is performing well, a lot of capital on our balance sheet, we're taking advantage of the opportunity.

The only other thing I would add, going back to the loan platform business point and what's driving some of the demand that we're seeing from capital markets participants is just this flight to quality situation that we're seeing. We're constantly hearing from our partners that they're really pleased with the execution that they're getting on our [indiscernible] particularly with the REIT securitizations that we're doing. We just did a securitization in January that was upsized and we were able to achieve the best spread that we've ever been able to achieve on one of our securitizations. So I think that's also what's driving some of the demand that we're seeing in the market.

Our next question comes from John Hecht from Jefferies.

Thanks for the commentary, especially on the cash-based revenue. First question is you guys have very good momentum in new member additions. I think it was like 1.1 million, which was a record this quarter. Where -- like what channels are you getting these from? And are there any changing characteristics of the new members now relative to, say, a couple of years ago?

The characteristics of our member acquisition are in line with where they've been historically. Each business has an individual marketing plan that benefits from different channels. The lending business has historically been one that relies on legacy channels such as direct mail, but is heavily influenced by affiliate partnerships. Our SoFi Money product is a broad-based digital strategy that we leverage to drive good marketing efficiencies. Our brokerage business continued to benefit from broader selection and IPOs, alternative assets, private offerings in addition to single stocks without commissions or robo accounts and our ETFs. And that, again, is really an affiliate and visual marketing channel acquisition product. Crypto is the new kid on the street, and we're developing new opportunities for marketing there. I would say we launched crypto in a really fast get to market. If we didn't have the technology platform business, there's no way we've been able to launch crypto buy sell and hold in such a short time period or SoFiUSD. And so we benefit from having that platform. That's something we haven't marketed aggressively yet. We want to make sure the product was scalable and one that was meeting the needs of our members, and we have that confirmation now so we'll continue to benefit from increased awareness of SoFi crypto impacting the P&L. Our credit card boost is actually doing pretty well, and we're excited about the changes that we've made over time. We're starting to see people transition from balanced transfers with 0 APRs actually paying a full APR at a reasonable rate. And so that's contributing to the numbers that we reported this quarter both on the interchange side as well as the revolving side. And then our debit interchange, the amount of debit interchange we're driving today is quite significant and scaled and is also contributing. When we talked about the $390 million of noninterest cash revenue, it's now large enough and scaled enough that it's contributing to the overall business and the marketing that we can put behind it is scaling as well.

The last part that I'll mention is SoFi Plus. We launched SoFi Plus in January of 2025. And it wasn't that great of a product at first. But like with most things we launched, we learn, we iterate, we learn and we iterate, and we relaunched in April 1, it's doing phenomenally well. We're pretty excited about it. It's meant to be a product that's the best of SoFi in one subscription product. It's $10 a month. It's more than $1,000 of value. It's primarily a product our existing members are buying. And not only are they signing up for that product that is going to generate a recurring revenue stream kind of like the net interest income that we have that's very visible and recurring, but moreover, it's driving cross-buy. 50% of the people that sign up for SoFi Plus, which again, are largely existing members take out another product. So not only does it drive the direct revenue stream, it's driving additional cross-buying building awareness of us [indiscernible] at everything happened in Financial Services.

Our next question comes from Kyle Peterson from Needham.

I wanted to dive a little more into the tech platform. I appreciate the segment guidance you guys gave. So I guess I just want to see if you guys give any more granularity on how the year should unfold there? I know you guys have several partnerships and product wins from last year that should be going live as the year unfolds and you also have the refresh. So just see like how the year should unfold and what the different puts and takes are to get you guys there from the 1Q run rate?

Sure. Chris gave you a specific guide for the year on revenue. Clearly, the business revenue was negatively impacted by the loss of one large customer, which we've talked about in the past. So that shouldn't have been a surprise. The tech platform revenue, if you do like-for-like on a year-over-year basis was up about 12% year-over-year. We expect that year-over-year growth rate on a like-for-like basis to accelerate throughout the year both from our existing members growth as well as new partner ads. We mentioned in the prepared remarks that we have 13 new partners that have launched in Q1 2026 and generated revenue in Q1 2026 that were not generating revenue in Q1 of 2025. So that revenue will scale over time. It doesn't come instantly. We also have one partner in the quarter that has an existing installed base, and so that's contributing. We have another integration that will take place throughout the year of a partner with a large installed customer base, which will generate revenue as well.

One of the things that may be hard for people to understand is the significant benefit that we have from owning the technology platform on our own innovation. Obviously, the resources there aren't unlimited. We made the decision last year to build out crypto buy sell and hold, made the decision to launch SoFiUSD. Those products are launched and they will start to generate revenue in 2026. That will be incremental, but they definitely use resources that would otherwise be used for other partners and other services. We're excited about the strategy that we have in SoFi Technology Solutions and the 4 areas being processing, core banking and ledgers, payment hub as well as risk platform. And that go-to-market against those 4 products will help us build good sustained growth and our objective is to get back to 20% to 25% compounding growth over the years to come. This is obviously a year in which revenue is going to be disappointed because we lost that large customer, but we'll try to continue to outperform it and deliver on the numbers that Chris shared with you earlier.

Our next question comes from Pete Christiansen from Citi.

Anthony, I'm just curious how you're thinking about where we are in the credit cycle generally. Obviously, credit performance was pretty good this quarter. With the backdrop of certainly higher tax refunds this year. I guess there's some perception that some underlying data that's pointing to things could get a little bit more challenging later this year, giving to you a political macro stress. Just curious on how you're planning the business around some of these perceptions.

Yes. Credit performance has been strong as we reported. We have an early warning dashboard that looks across a number of macro and microeconomic factors in the performance of our own loans as well. And if that turns yellow and then red, we reduced the tiers that we're willing to underwrite. We're not in that situation in any way, shape or form. The current loans are performing well. The macro has also continued to perform well. And not only are we seeing the strong trends in our own loans across the 3 that we operate in. We're also seeing strong demand from loan platform business buyers and otherwise more broadly. We have a lot of capital on the balance sheet. We have the flexibility to meet the demand from the consumers so the combination of strong demand from consumers plus strong performance in credit and adequate capital would be not to be able to meet that demand and hold some of it on our balance sheet and continue to generate increasing net interest income.

As Chris talked about, we had $690 million of cash net interest income and we want to continue to grow that. It's a great baseline of revenue that allows us to invest aggressively because it's super profitable in these other areas, which helps build up the other revenue stream, which is the noninterest cash revenue of $390 million. And for those that aren't familiar, that $390 million reported in the quarter represents the interchange from debit and credit cards. It represents the fees from loan platform business, our technology revenue our brokerage revenue and our referral fee revenue as well as origination fees that consumers pay us, and it's a cash number.

And our last question today will come from Don Fandetti from Wells Fargo.

Home Lending was obviously a large market and you've had some growth there. Would you consider doing anything on the acquisition side sort of building on what you've done in the past? And if not here, like where would you look for potential acquisitions?

The M&A market is very vibrant. There's a lot of assets for sale. We're remaining disciplined and looking for things that can help us accelerate strategically. We feel like we've done the right acquisitions in home loans, that's not an area that we're currently focused on. It's really driving organic growth and we continue to optimize the operation to quickly meet our members' needs. We're still investing a lot in the home loans. As I mentioned, the business more than doubled from origination standpoint year-over-year. So we're doing a much better job meeting the needs of our members.

As it relates to M&A more broadly, I would say we're prioritizing things tied specifically to SoFi Technology Solutions, technology platform business. We've talked about the fact that we'd like to have a revolving credit processing as well as a core tied to that. As we mentioned in the prepared remarks, on July 1, we will launch SoFi Bank on a new modern quarter as well as ledger, and that will unlock a lot of other capabilities that we'll bring to our partners including simultaneously launching big business banking with an API format and an exchange network for Fiat and crypto currencies. And so the areas that we would probably prioritize from an M&A standpoint are really in the technology space, specifically revolving credit as well as crypto and blockchain services. We want to build out the same infrastructure services that we have in Fiat and crypto. So staking as a service, stablecoins as a Service, wallet as a service, et cetera.

Thank you all. Thank you all for joining today. I want to end with a closing remark. If you've taken anything away from today's call, please take away these key points. Our strategy and execution continue to be unmatched by any company I can think of at our scale and put SoFi in a class of one. We've achieved 18 consecutive quarters of exceeding the Rule of 40, far exceeding it again this quarter at 72%, with 41% revenue growth and 31% EBITDA margins when other companies are stumbling, our revenue growth is accelerating. Most importantly, we generated more than $1 billion in cash revenue, with $690 million in cash net interest income paid to [ Aspire ] members at $390 million in cash revenue from debit and credit card interchange revenue, tech platform revenue, brokerage revenue, LPB revenue, referral revenue and origination fees. These non-lending businesses, which do not require capital and are at lower risk were in their infancy only a few years ago. but now they have reached the critical scale to meaningfully contribute to our overall growth and profitability for years to come. Our focus remains on executing to ensure we're iterating, learning and innovating like never before to generate escape velocity in delivering on our mission for our members. Our goal is to have the greatest impact to our members of any company in the world. And in doing so, we will be the winner that takes the most in driving value for our shareholders. Thank you for joining us today and we look forward to seeing you next quarter.

Goodbye. This concludes today's conference call. You may now disconnect.

Good morning or good afternoon all. My name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions].

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Fourth Quarter and Full Year 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website.

Unless otherwise stated, we'll be referring to adjusted results for the fourth quarter and full year 2025 versus the fourth quarter and full year 2024. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-K filing, which will be made available next month.

Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-K. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now, I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. 2025 was a tremendous year on all fronts. Our member focus drove an unprecedented level of innovation across our business that led to the strongest financial performance in the history of our company. As we begin 2026, we're positioned for another year of unprecedented results, and I could not be more excited. We come into the year with a differentiated one-stop shop model with a full suite of products that allow members to borrow, save, spend, invest and protect better.

A demonstrated track record of driving durable growth through continuous innovation resulted in compound annual growth of nearly 50% from $240 million in 2018 to $3.6 billion in 2025. A scaled member base of 13.7 million members, more than 20x larger than the 650,000 members we had in 2018 and our highest brand awareness ever at nearly 10% versus roughly 2% in 2018. Despite the unprecedented growth, we still have massive addressable markets across our existing businesses and huge opportunities for growth in newer areas like crypto, AI and business banking.

And finally, we have a fortress balance sheet, which we further strengthened through $3.2 billion in new capital, increasing our tangible book value by $2 per share to $7 per share, giving us a broad range of optionality. This gives me great confidence that we will continue to drive durable compounding growth for years to come, resulting in superior financial returns.

I will discuss some of what we've planned for the year ahead in a moment, but first, let me begin with our key results for the fourth quarter. Starting with the drivers of our durable growth. We added a record 1 million new members in Q4, increasing total members by 35% year-over-year to 13.7 million SoFi members. This was our first time adding over 1 million members in a single quarter. We also added a record 1.6 million new products in Q4, increasing total products by 37% year-over-year. We now have over 20 million products. Cross-buy continues at an exceptional pace with 40% of new products opened by existing SoFi members. Over the past year, our cross-buy rate has increased by 7 percentage points. This clearly demonstrates the effectiveness of our one-stop shop strategy and our ability to build deeper, multiproduct relationships with members. And as before, we fully leverage new technologies like artificial intelligence.

Our strong member and product growth powered our revenue growth in the fourth quarter. Adjusted net revenue was a record at over $1 billion, up 37% year-over-year, marking our first $1 billion quarter. Together, financial services in our technology platform generated revenue of $579 million, an increase of 61% year-over-year and representing 57% of total revenue.

In our Lending segment, adjusted net revenue grew 15% year-over-year to $486 million. This was driven by strong originations in this segment of $6.8 billion, a 13% increase from the prior year. Combined with the very strong loan platform business originations of $3.7 billion, total originations reached a record of $10.5 billion for the fourth quarter. This is our first quarter originating over $10 billion in loans, demonstrating our ability to originate high-quality loans at scale. In fact, through all of 2025, we originated over $36 billion of loans.

I am also proud to report that total fee-based revenue across our business was a quarterly record at $443 million, up more than 50% from the prior year, driven by a strong performance from our loan platform business, referral fees, interchange revenue and brokerage fee revenue. On an annualized basis, we are now generating nearly $1.8 billion of fee-based revenue, up from less than $1.2 billion in the fourth quarter of 2024. This reflects our delivery diversification towards more capital-light revenue streams.

In addition to delivering durable growth, we delivered strong returns and profitability. In the fourth quarter, adjusted EBITDA was a record at $318 million, up 60% year-over-year. Our adjusted EBITDA margin for the quarter was 31%. This is above our original goal of long-term margins of 30% set when we went public. Our incremental EBITDA margin was 44% as we continue to balance reinvesting in the business to drive long-term growth and profitability. Net income in the quarter was $174 million at a margin of 17%. Earnings per share were $0.13.

Finally, our tangible book value ended the year at $8.9 billion. In 2025, we grew tangible book value by over $4 billion and $2.54 per share. Our diversified business is uniquely built to deliver a winning combination of growth and returns. In the fourth quarter, we achieved a Rule of 40 score of 68%, once again demonstrating the strength of our model and our solid execution. The consistency with which we've exceeded the Rule of 40 continues to put us in [indiscernible] among fintechs and technology companies more broadly.

Despite these exceptionally strong results, I know that we are just getting started. We are still just scratching the surface of the opportunity that exists across each of our existing products and the newer areas like crypto. Given these dynamics, I've never been more optimistic about our prospects than I am today. This is why we will continue to invest heavily to make our existing products even better by providing the best speed selection experience to build new products to help our members get their money right and to further strengthen our trusted brand name. Our investments will power a durable compounding growth and drive stronger returns as we continue to scale.

Let me now spend a moment discussing our brand-building efforts, which are key to driving new members to SoFi, feeding our productivity loop and growth. In 2025, we significantly increased our brand strength, and stature through our first ever music partnerships, including becoming the presenting partner of the CMA Fest and partnering with Country Music Star, Kelsea Ballerini and by expanding our sports partnerships. More recently, we signed [indiscernible] NFL MVP, Josh Allen, to team SoFi. Josh has been instrumental in showcasing the most valuable product in financial services in SoFi Plus. This partnership included ads across some of the most watched NFL game of the season and has continued through the existing postseason playoffs. So far, this has been one of our most successful campaigns ever, more than doubling the effectiveness of our advertising in the targeted market.

This year, we also kicked off season 2 of TGL presented by SoFi with an exciting plan from the biggest names in Dow. So far, the season is off to a great start, building on the momentum from last year with viewing guardians up 22% versus a year ago in the first 5 matches. And later this year, the World Cup will be coming to SoFi Stadium in Los Angeles, allowing fans worldwide to get a glimpse of the nation's most advanced stadium and the most ambitious stage in sports and entertainment.

Our marketing efforts continue to have a strong effect driving unaided brand awareness to an all-time high of 9.6% during the quarter. That's up 250 basis points from the fourth quarter of 2024, a 33% improvement.

Turning now to our product innovation across our business. At SoFi, we are one team united under a common purpose of helping people achieve financial independence to realize their ambitions. We are passionate about meeting our members' needs driving us to work harder and innovate more rapidly to bring them the best products and services in the market. We call this the SoFi way. Guided by the SoFi way with a differentiated business model and capabilities, we are uniquely positioned to benefit from both the crypto and AI technology super cycles taking place.

Only SoFi has the strength and stability that comes with being a national bank, a tech-driven culture with a track record of innovating in the financial services industry and a large and growing member base that embraces innovation. A full set of products that allow us to leverage crypto and blockchain technology in a number of innovative ways and a technology platform that allows us to innovate more rapidly and serve us as a channel to support business clients. Since March, when the OCC made crypto permissible for national banks, we've moved with urgency to bring new products to our members. In October, we enhanced our unprecedented money movement offering with the launch of SoFi Pay, our first payment product that leverages blockchain technology to provide fast, seamless, low cost and safe international payments. We've already expanded SoFi Pay to include over 30 countries including Mexico, India, the Philippines, Brazil and much of Europe. SoFi Pay is available to all members right in their integrated SoFi App, making money movement easier than ever.

In November, we announced SoFi Crypto, once again giving members the ability to invest in dozens of tokens directly in our SoFi app. As the first nationally chartered bank to launch crypto trading for consumers, our members can instantly buy crypto currencies from their FDIC insured deposit account, which is a very meaningful difference. At other providers, customers funds uninsured earning no interest as they wait to fund digital asset purchases. At SoFi, those funds sit in a SoFi money account protected with insurance and earning up to 4% interest.

In December, we took an even bigger step forward through to the launch of our own stablecoin, SoFi [indiscernible] this launch made us the first national bank to issue a stable coin on public permissionless blockchain. Once again, this is a meaningful step forward in differentiation versus the landscape. For every SoFi USD outstanding, we will have a dollar of cash into our Fed master account, which means there is no credit, liquidity or duration risk, and we will share economics with partners for their marketing and distribution services.

SoFi USD will be a game changer for our business as it enables us to be an infrastructure provider for banks, fintechs and enterprise platforms, positioning us at the center of the crypto ecosystem.

As you can see, we're moving quickly, but we have a lot more to do to accomplish our ambitious plans over the near and medium-term horizons. This year, we will leverage SoFi USD to power SoFi Pay and we'll continue to add more contracts to the offering. Over the medium term, we plan to offer a SoFi Pay experience to people outside the United States, allowing them to receive, send, hold and spend money anywhere, all supported by SoFi USD. This initiative could serve as a launching point to build our brand in a more global way.

In 2026 and beyond, we will look to offer additional crypto products and services, including secured lending by crypto currencies, which will give members better rates on their loans, institutional trading and correspondent payments and settlement via stable coins. For members that hold SoFi USD, we will look for innovative ways to provide them with benefits such as interest or other perks.

Beyond our member-facing initiatives, we are hard at work building our business banking offering, which we will begin to launch in 2026. Our ambition is to be the bank for businesses and other financial institutions that want to transact in both [indiscernible] and cryptocurrencies filling a critical gap that has existed in the market. Leveraging our tech platform capabilities and SoFi USD, over time, we will build an offering that includes institutional and crypto trading, making us the first national licensed bank to offer this service, stable coin as a service, cryptocard issuing, digital asset custody and infrastructure services, and the ability to interchange VAT and digital assets in real time through our SoFi exchange network as well as the ability to settle transactions 24/7 on a virtual ledger. We have brought on significant expertise from the crypto and banking industries, and I couldn't be more excited to see this business take shape in the coming years.

Turning now to SoFi Smart Card, which we launched in the fourth quarter. This new all-in-one card and account allows members to earn significant rewards and an industry-leading API while also growing their credit score. Here's how it works. Members can use their SoFi Smart Card to make purchases just like a typical debit or credit card. Purchase amounts are automatically set aside from the deposit in the SoFi account in real time. The balance can be paid in full each month via funds on hand or an alternative bank account or source of funds. And all the while, members are an unlimited 5% cash back rewards at grocery stores.

We built and launched Smart Card in just 4.5 months with the help of our tech platform, a feat that would not have been possible had we relied on another party. This demonstrates once again how our tech platform gives us a greater ability to customize and launch financial services products faster than competition. Beyond helping drive innovation across SoFi's financial services products, we are excited to see renewed energy around innovation within financial services more broadly. This started to take shape in 2025 with big consumer brands like Southwest Airlines and United Airlines come with us to help them launch new programs that drive greater loyalty and engagement from their customers.

Now we are seeing strong interest from an even wider range of companies, including those based internationally, who see the highly supportive business environment in the U.S., particularly for crypto and are interested in launching new products here. Our tech platform business is in a prime position to support these enterprise clients.

Turning to invest. 2025 was a blockbuster year for SoFi Invest in which we significantly expanded our offering to give members the best selection, including investments that have been traditionally reserved for the ultra wealthy. We give members access to private companies, including SpaceX and Epic Games, access to invest in alternative investments through private market funds managed by Cashmere, Fundrise and Liberty Street Advisors, access to invest in IPOs, including [indiscernible], Gemini, Figma and StubHub. We launched Level 1 options in our own SoFi agentic AI ETF. We made rolling over 401(k)s easier and more efficient, and we continue to make our user interface even more intuitive and engaging.

This expanded offering helped drive a 2.2x year-over-year increase in the brokerage revenue, helping drive invest closer to full profitability, which we expect to achieve this year.

Turning now to our Lending segment, which continues to drive strong revenues and allows us to support members at key points in their lives. We show up with a simple but differentiated message. We are here to help you get your money right. Our personal loan product does just that. With a SoFi personal loan, members can refinance absurdly expensive credit card debt held at other institutions so they can stop paying for other people's rewards and focused on their own financial well-being. For example, if a member is able to refinance $40,000 of debt on which they are paying 24% interest with a SoFi personal loan that has an interest rate that's 10 points lower, they can reduce their monthly payment by nearly $200 moving closer to becoming debt-free.

If we would translate that example across the more than 0.5 million loans that were originated in 2025, you can see that we're having a massive impact on our members' lives. SoFi is the preeminent company offering personal loans originating roughly 15% of total U.S. prime volume. However, the opportunity remains massive as the real addressable market is the nearly $1 trillion of prime revolving credit card debt, just sitting there, waiting to be refinanced at up to half the rate. And that $1 trillion opportunity is before even considering the additional debt that is outside of our traditional credit box, but could be refinanced through our loan platform business.

Our student loans are also designed to help our members get their money rate. Here, too, we have become the preeminent company for refinancing student debt, having a massive impact on our members' lives. We estimate that we will save our members over $400 million in interest expense just under student loans we refinanced in 2025. Despite our strong market share in the student loan refinance market, we see continued opportunity for growth. We estimate the total market opportunity to be around $400 million, which would increase by 25% if rates were to drop 50 basis points.

In addition to refinance, we've launched new private in-school student loans options to help people finance their education along the gaps left by the federal graduate programs. These include medical, veterinary, dental and stem loans with more coming soon.

Turning now to home loans where we had our best year of originations and where we are primed for an acceleration in growth when rates decline. In 2025, we originated $3.4 billion of total home loans, surpassing our prior record set in 2021 when the real estate market was added tight. In fact, in the fourth quarter, we originated home loans at an annualized pace of $4.5 billion, nearly 2x the pace of the prior year, and the opportunity for continued growth is massive. Within our own member base, about 90% of those that have home loans have them with other institutions. As rates come down and many of these members look to refinance, we'll be in a prime position to win that business. Additionally, as others within our 13.7 million strong member base look to purchase a home for the first time, we believe they will come to SoFi as a trusted partner.

As you can see, 2025 was an incredible year by any measure, our best year ever. We leaned into what sets us apart, our unique one-stop shop strategy, our ability to innovate and our relentless focus on helping members get their money rate. Heading into 2026, we see a tremendous opportunity, and we continue to be energized by our values in the SoFi way to capture it.

With that, let me now turn the call over to Chris to discuss our financial results for Q4 and 2025.

Thank you, Anthony. 2025 was an exceptional year. Adjusted net revenue for the year was a record at $3.6 billion, up 38% year-over-year. Adjusted EBITDA was also a record at $1.1 billion, up 58% year-over-year at a margin of 29%. This is our first time surpassing $1 billion of EBITDA. Net income was $481 million at a margin of 13%. Net income was up 2.1x, excluding onetime items in the prior year, and earnings per share was $0.39.

We finished the year strong with a great fourth quarter. In Q4, adjusted net revenue grew 37% year-over-year to a record $1.013 billion. Adjusted EBITDA was also a record at $318 million and a margin of 31%. Net income was $174 million at a margin of 17% and earnings per share was $0.13. This was our ninth consecutive profitable quarter.

An important driver of our growth was the increased contribution from capital-light, non-lending and fee-based revenue sources. Our financial services and tech platform businesses generated $579 million of revenue, up 61% year-over-year, and we also generated record fee-based revenue across all segments of $443 million, up 53% year-over-year.

Turning now to our segment performance, starting with Financial Services. Financial Services generated record revenue of over $1.5 billion in 2025, up 88% from the prior year. For the fourth quarter, net revenue was $457 million, up 78% year-over-year. Contribution profit was $231 million, up 2x from last year. And contribution margin was 51%, up from 45% last year. Net interest income for this segment was $208 million, up 30% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 2.6x to $249 million for the quarter, which equates to nearly $1 billion in high-quality fee-based income on an annualized basis.

Importantly, improved monetization continues its strong contribution to revenue growth. Annualized financial services revenue per product was $104 in the fourth quarter. That's up from $81 in the fourth quarter of 2024, a year-over-year increase of 29%, and we see continued upside as newer products mature.

The successful expansion of our loan platform business was one of our greatest achievements in 2025, further diversifying our revenue and making our growth more durable. We've built this business into a powerhouse. In Q4, our loan platform business generated $194 million in adjusted net revenue, an annualized pace of $775 million, which is nearly 3x higher than the same period last year. And as we head into 2026, we continue to see strong demand from both existing and new partners.

Beyond our loan platform business revenue, we continue to see healthy growth in interchange, up 66% year-over-year, driven by close to $22 billion in total annualized spend in the quarter across money and credit card.

Turning to our tech platform, which generated record revenue of over $450 million in 2025. For the fourth quarter, the Tech Platform business delivered net revenue of $122 million, up 19% year-over-year. Contribution profit was $48 million and a contribution margin of 39%. This includes the remaining revenue earned from a large client who fully transitioned off our platform prior to year-end.

Turning to our Lending segment. Lending generated record adjusted net revenue of over $1.8 billion in 2025, up 24% from the prior year. For the fourth quarter, adjusted net revenue was $486 million, up 15% from the same period last year. Contribution profit was $272 million with a 54% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 29% year-over-year to $445 million. During the quarter, we had record total loan originations of $10.5 billion, up 46% year-over-year. Personal loan originations were a record at $7.5 billion, of which $3.7 billion was originated on behalf of third parties through [ LTV ]. In total, personal loan originations were up 43% year-over-year.

Student loan originations were $1.9 billion, up 38% from the same period last year. Home loan originations were a record $1.1 billion, a year-over-year increase of nearly 2x. Capital markets activity was very strong in the fourth quarter. We sold and transferred through our loan platform business, $4.5 billion of personal and home loans. In terms of personal loans, we closed $100 million of sales in whole loan form at a blended execution of 106.5%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise had if we held on to the loans.

Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge off, both from our improved recovery capabilities and by maintaining servicing.

In terms of home loan sales, we closed $692 million at a blended execution of 102.3%. In addition to our loan sales, we executed a $463 million securitization of loans originated through the loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at an industry-leading cost of funds level with a weighted average spread of 101 basis points.

Turning to credit performance. Our credit remains strong, performing in line with expectations and driving attractive returns across all loan types. Our personal loan borrowers have a weighted average income of $158,000 and a weighted average FICO score of 746, while our student loan borrowers have a weighted average income of $149,000 with a weighted average FICO score of 765.

For personal loans, the annualized charge-off rate was 280 basis points, up 20 basis points from the third quarter. I would note that while this is up from last quarter, it is down slightly from the second quarter and down over 50 basis points from a year ago. In fact, this is our second best quarter since 2022. Importantly, the increase in our balance sheet charge-off rate is driven by mix rather than credit deterioration. In Q4, as a result of increased LTV activity, we retained fewer new loans on the balance sheet. This naturally increases the average age or seasoning of our personal loan portfolio held on the balance sheet. Adjusting for this seasoning, underlying credit trends actually improved quarter-over-quarter.

And we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.4% versus 4.2% last quarter. The on-balance sheet 90-day delinquency rate was 52 basis points, up 9 basis points from last quarter, also driven by portfolio seasoning. I would note that the delinquency rate is down year-over-year.

For student loans, the annualized charge-off rate was 76 basis points, up slightly from 69 basis points in the prior quarter, driven primarily by seasonality as well as the impact of a student loan repurchase that began in Q1 2025 and concluded during the fourth quarter. The on-balance sheet, 90-day delinquency rate was 14 basis points, consistent with the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originating from Q4 2022 to Q1 2025 have net cumulative losses of 4.55% with 37% unpaid principal balance remaining. This is well below the 6.27% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance.

The gap between the newer cohort curve and the 2017 cohort curve widened by 8 basis points during the fourth quarter. In fact, this gap has widened in each of the past 6 quarters since we began measurement.

Additionally, looking at our Q1 2020 through Q3 2025 originations, 60% of principal has already been paid down with 6.8% in net cumulative losses. Therefore, the life of loan losses on its entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This will be well above past levels at similar points of seasoning, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we've marked our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the fourth quarter, our personal loans were marked at 105.7%, down 8 basis points from the prior quarter. This included an increase in the annual default rate, which was primarily driven by loan vintage seasoning, not changes to the individual loan loss assumptions, partially offset by a lower benchmark rate.

At the end of the fourth quarter, our student loans were marked at 105.6%, down 8 basis points from the prior quarter, driven by minor changes in the average coupon and annual default rate.

Turning to our balance sheet. In December, we raised $1.5 billion of new capital in the form of common equity. This was our second opportunistic raise of 2025, giving us great flexibility to pursue organic and inorganic growth opportunities. It also allowed us to further improve our funding base. Over the past 2 quarters, we fully paid down our warehouse lines, reducing our funding costs by an estimated $110 million on an annualized basis, fully mitigating the bottom line impact of the additional shares. In the fourth quarter, including the $1.5 billion of new capital, total assets grew by $5.4 billion. This was driven by $3.1 billion of loan growth and approximately $1.7 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $5.4 billion.

On the liability side, total deposits grew by $4.6 billion to $37.5 billion, primarily driven by growth in member deposits. Our net interest margin was 5.72% for the quarter, down 12 basis points sequentially. This included a 30 basis point decrease in average asset yields as we saw a modest mix shift from personal loans to home and student loans, partially offset by a 15 basis point decrease in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we are very well capitalized. Our total capital ratio of 22.9% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $4 billion year-over-year to $8.9 billion, including the benefit from the new capital raised. Intangible book value per share at quarter end is $7.01, up from $4.47 a year ago, a 57% increase.

Let me finish by providing our outlook for 2026 in the medium term, starting with the macro assumptions that underpin our financial guide. In line with market expectations, our 2026 assumptions are as follows: an interest rate outlook consistent with the Fed funds futures and 2 rate cuts to get us to a 3.0% to 3.25% exit rate in 2026. Real GDP growth of approximately 2.5% and an unemployment rate in the 4.5% to 5% range.

Now for our specific guidance. For the full year 2026, we expect to increase total members by at least 30% year-over-year. We expect adjusted net revenue of approximately $4.655 billion, which equates to year-over-year growth of approximately 30%. We expect adjusted EBITDA of approximately $1.6 billion, which equates to an EBITDA margin of approximately 34%. We expect adjusted net income to be approximately $825 million, which equates to a margin of approximately 18%. We expect adjusted EPS to be approximately $0.60 per share. The guidance assumes a mid-teens tax rate, which we currently believe to be our effective tax rate in 2026.

For the first quarter of 2026, we expect to deliver adjusted net revenue of approximately $1.04 billion, which is a 35% year-over-year increase compared to 33% in the same period last year. Adjusted EBITDA of approximately $300 million, which equates to a margin of 29% versus 27% in the same period last year. Adjusted net income of approximately $160 million, which equates to a margin of 15% versus 9% in the same period last year. And adjusted EPS of approximately $0.12, 2x the $0.06 delivered in the same period last year.

It's important to note that each year, we have seasonal payroll taxes during the first 2 quarters of the year, and we plan to accelerate marketing expenses in the first half of 2026 relative to Q4 2025.

Overall, 2025 has been a remarkable year for SoFi. We are proud of the strong results we delivered and are excited to build on this momentum in the year ahead. Looking beyond 2026, given our differentiated model, the strength of our balance sheet and the tremendous opportunities that exist across our business and in newer areas, we expect to deliver compounded annual adjusted net revenue growth of at least 30% from 2025 to 2028. Additionally, we expect to deliver compounded annual adjusted earnings per share growth of 38% to 42% from 2025 to 2028. Let's now begin the Q&A.

[Operator Instructions] First question today comes from John Hecht at Jefferies.

Congratulations on the good momentum. I guess first -- I guess my question is, you guys gave some good consolidated guidance. Maybe can you break some of those details out at the segment level?

Sure. I can take that one, John. So overall, like we've said in the past, given that we're right in the middle of 2 super cycles with blockchain and crypto and AI, and the fact that we have significant capital cushion in any scenario that we could have possibly imagined and makes us extremely excited about the outlook for our business, both in the immediate and the longer term.

In terms of our 2026 outlook, we expect continued very strong revenue growth of roughly 30% year-over-year. As it relates to the segments for Financial Services, we expect revenue growth of 40% or more. For Lending, we expect revenue to grow approximately 23% year-over-year. And then for Tech Platform normalized for the transition of a large client, we expect revenue growth of approximately 20%. And then for our Corporate segment, revenue should generally be in line with what we saw in 2025 on a dollar basis.

As we look forward out to the medium term, we're expecting at least 30% annual revenue growth compounded between 2025 and 2028, and 38% to 42% annual compounded EPS growth between 2025 and 2028. From a segment perspective, we expect to see continued momentum across all segments. And given the investments that we've made to date, we see the opportunity to accelerate growth in 2027 and '28 across a number of products that are just starting to scale, including our crypto business, our brokerage business, home loans and student loans given the rate environment. So overall, really optimistic about the outlook, given everything in head of us.

The next question comes from Andrew Jeffrey at William Blair.

Great to see the momentum in the business. Anthony, you've talked about driving awareness. And I think you mentioned today on the call, the opportunity for refinancing at $1 trillion. It looks like perhaps that messaging hit an inflection point this quarter, and you mentioned some of the celebrity partnerships. Can you elaborate a little bit on the acceleration in KPI growth, whether it's sustainable, whether you think this is sort of the tipping point in which consumers say, "Hey, look, it's just simply [indiscernible] we have better answer than traditional banks? Can we sort of declare that we've reached that point in your business model?

Thank you for the question, Andrew. We're just -- we are at 9.6% unaided brand awareness. We would love our unaided brand awareness to continue to grow to get into the mid-20s, which would -- when we get there, likely put as a top 10 financial institution. When I joined, our [indiscernible] brand awareness was around 2%. And for those who aren't familiar with that measure, our needed brand awareness is asked in the following way. When you're thinking about a financial services product, please name 3 companies you would consider. So it doesn't ask about student loans. It doesn't ask about personal loans or any of the other products that we have, it just ask that generic question.

The ability to move from 2% to 9.6% is really, really challenging in the time period that we have. The largest banks in our country, the most well-known banks in our country, the most trusted banks in our country, they've been doing it for centuries and some of them are less than centuries, but a very, very long time. So our team has really crushed it in leveraging a combination of branded advertising and performance-based advertising, and we absolutely partner with big, well-known stars, big, well-known entities like SoFi Stadium and innovative things like SoFi [indiscernible] continue to look for those opportunities. But I'm more than confident than ever that we've reached the point where I can go someplace and someone will say, "Oh, you work for SoFi, I have a SoFi account. That wasn't happening 8 years ago. It happens all the time now.

And so one of our prior [indiscernible] '26 is trying to build product quality to such an extent that we drive virality and our customer acquisition costs go down meaningfully because of word of mouth, because of referrals. We're doing incredibly well now as it relates to our return on marketing spend. You can see that in our margins. We delivered more than our long-term margin originally stated when we went public, which we've now increased directionally. So we do believe we can spend money and get a return on it. We have the analytics of that now down. That's what's allowing us to drive more than 30% member growth consistently over the last 8 years and coupling it with product growth.

The 40% cross-buy number, that is a number that's up almost 10% versus a year ago. And that's not easy to do when you're growing the business so quickly on a new member basis. So we're -- we're really hitting on all cylinders. We feel like we have the right marketing formula, but we're not going to rest on our laurels. I really want us to get that escape velocity where the amount that we spend becomes more and more efficient. And this is before implementing AI. It's really about product quality and awareness and that filtering down to greater productivity of our marketing dollars.

The next question comes from Dan Dolev at Mizuho.

Great quarter and epic medium-term guidance. Congratulations. Wanted to ask you maybe, Chris, about LTV, in terms of like how do you think about originations specifically? And like how much should be allocated to LTV versus the other stuff?

Sure. Thanks, Dan. So step back and talk a little bit about our origination outlook for the entire business. Overall, we had record originations in 2025, which were fueled by strong borrower demand across each and every one of our asset classes. What we're seeing so far in 2026 is that, that demand remains extremely robust, and we have more flexibility than we've ever had as a company entering 2026. We expect the total originations for the company will be up strongly year-over-year. And we have the luxury of, a, choosing to drive capital-light fee-based revenue through our strong capital market pipeline, particularly in the loan platform business, as you mentioned, where we just signed a new partner, and we have several partners at final term sheet stages; or b, we have the opportunity to keep these higher returning assets on our balance sheet and putting our newly raised capital to work.

Ultimately, how we're going to allocate those assets is going to be determined by our overarching goals of serving our members, and driving durable growth to maximize returns for our shareholders in the long run. Given that we have significantly scaled our loan platform business to over $14.5 billion in annualized volume, we've diversified our revenue to 44% in fees, and we have the excess capital, we have phenomenal optionality today.

Holding these loans on our balance sheet results in the highest total return for each and every one of our loans, while transferring them through the loan platform business carries no risk and results in immediate revenue and cash as well as attractive returns for us. So we're really in an enviable position of choosing between 2 great options, and we're going to balance them accordingly.

Next question comes from Kyle Peterson at Needham & Co.

Nice results. I wanted to touch on the deposit growth this quarter. It's really impressive for me to see. So I guess is this still largely coming from member deposits? And then could you guys give us a refresher on what the recent downward beta has been? That would be really helpful.

So a couple of things on deposits. I've said since we -- since we opened the bank, that we have a competitive advantage in being able to offer our members a better value proposition than anyone else on something like SoFi Money, combination of a high APY reward opportunities as well as other services that we provide like free certified financial planning, et cetera. I think as rates continue to go down, our advantage will make itself more clear.

Everyone that we compete against in that top quartile, they kind of fall into 2 buckets. One, they're a newer bank that actually does lending and they have an ability to provide a rate of above Fed funds, but they have a deposit base that's so big, they can't be too aggressive because they'll reprice their entire deposit base. And that's a structural issue that we fundamentally don't have. Second is people that are not actual banks that are using sponsor banks and they can only get Fed funds plus 20 or 30 basis points. Because we have such a large and profitable lending business, we can use that -- those profit pools to give a rate that's unmatched by other people.

We haven't had to do that yet because we've had such great demand for our product, and that's driven the deposits. And I think we'll continue to show that we can be the top quartile API and achieve the level of deposit funding that we want, and it remains relatively sticky. The bulk of our deposits almost 97% are direct deposit customers, and that is high-quality primary account relationships, and that's where we're aimed at.

Yes. And the only other thing I would add to Anthony's comments because you asked about it is the downward beta. We've -- since we launched a bank, we've been at roughly a 60% to 70% beta, and we would expect that to stay consistent going forward.

Next question comes from Reggie Smith of JPMorgan.

Congrats on the quarter and strong guidance. Real quick for me. I guess it sounded like, Anthony, you sounded very, I guess, bullish on some of the new products. I'm thinking about the crypto, thinking about stable coin, thinking about the smart card. And I'm curious, do you think that the innovation that we're seeing on the fintech side could spur more interest in demand from your platform -- platform customers. And historically, I think you guys have lived with kind of card processing and things like that. Good stuff, not is as interesting as some of the newer things that are kind of coming down the pipe, maybe can you talk a little bit about that? And if this could signal or catalyze like a change in adoption and growth in Tech Platform?

Sure. The Tech Platform business is definitely benefiting from, let me say, it could benefit from the areas that you just mentioned. So a year ago, the amount of demand or interest that we had in blockchain, in stable coins and wallets, et cetera, for tech platform partners was really not existent. But since the administration change and the OCC came out with the permissibility of crypto and blockchain among banks, the amount of interest in leveraging the tech platform services has really increased quite meaningfully. We don't have anything to announce yet. We're in tons of dialogues with different types of companies. There are companies that are launching a debit card type of product in LatAm countries that's back to 100% by stable coins. It's not backed by Fiat dollars at all. And so there's a fair amount of that. There's also a fair amount of program managers for that type of product.

And then in the U.S., I think there's less activity from financial institutions for those services it's more in the LatAm countries. But we do anticipate it will spill over to the U.S. and some of the international companies will look to the U.S. because it's a more inviting environment from an administrative standpoint.

I think the [indiscernible] is very important because it will establish into law the permissibility of crypto and blockchain by banks. Right now, we're all relying on the OCC interpreted letters, and it'd be much better if it was locked into law, especially if the administration changes in a couple of years. But I'd say the outlook and opportunities that crypto provide for the tech platform as well as our own business are pretty enormous, and I couldn't be more excited about it. It adds a whole another dimension of growth for us, but it also drives a whole another sort of lens of innovation across all of our products. And when you have as many products that we have and you have an entirely new technology platform, at a lower cost, at faster speed and it safer, it could fundamentally change everything that we do.

The next question comes from Kyle Joseph from Stephens.

On the third quarter call, we talked a lot about capital markets, and I think you guys referenced a flight to quality from investors. Just kind of looking to get an update there. Obviously, sentiments change. But yes, a little bit of a capital markets update and any implications on the competitive front on the personal loan side of things?

Yes. Sure. Thanks. So overall capital markets activity and demand remains extremely robust. We continue to see that flight to quality that we mentioned during the Q3 call. We just had a phenomenal quarter in our loan platform business, transferring $3.7 billion of loans on behalf of others. We just signed a new partner this week for 2026. [indiscernible], and we had several other partners who are in final term sheet stages. So overall, demand can be better from an investor perspective.

As it relates to personal loan competition, we just had record originations of $7.5 billion in the quarter. We're seeing that trend persist into 2026. So all else people, we feel great both from a capital markets perspective as well as a borrower demand perspective.

In terms of how we're thinking about, just as it relates to personal loans and growth in the balance sheet, we are expecting to grow the balance sheet in the double-digit billions, which is in line with what we did in 2025. We're seeing great momentum so far here in early 2026, and we expect that to persist throughout the year.

The next question comes from Peter Christiansen from Citigroup.

Congrats on the great momentum here. Anthony, I'm curious to your perspective. There's been some areas within private credit, which have seen some sentiment change more recently. It doesn't seem like it's too much in the direct consumer lending portion of that area. I'm just curious, from your perspective, what you're seeing from some of your private credit partners and demand flows there?

Yes. What I'd say is the attractiveness of our assets and our loans is tied to the returns that they have and we obviously are focused on a prime customer in the business that we're putting on our balance sheet and mostly what we're doing with partners. And the key is to make sure we're delivering our return -- our target return against that. We'll able to manage the performance of prepayments, the performance of defaults and the performance of interest rates and our cost of funding to deliver great value for our partners. And as long as we keep doing that, they'll continue to be in more demand than supply.

With the amount of capital we have on our balance sheet now, I think you could see our growth in originations and revenue and lending start to close a little bit. In the fourth quarter, our originations were up 40% year-over-year, but our lending revenue was up 15%. And so we're really servicing our partners in a great way, but we could keep more of that production if we so chose especially given our confidence in our returns.

The next question comes from Moshe Orenbuch from TD Securities.

Chris, you talked a little bit about the allocation between the loan platform business and the core product of the balance sheet for your Lending Segment. Could you just kind of tell us what the -- what your -- the contribution from the loan platform business you're expecting in the '26 guide?

Sure. We aren't guiding specifically to origination volumes or LPV volumes for 2026. But what I would say is we just exited 2025 at a $3.65 billion quarter annualizes to about $14.5 billion of originations. We feel good about that level heading into 2026. We have sufficient demand from borrowers, like I said, the new one we just signed up. We have all of our existing partners as well have extended their contracts and often upsize their commitments in period. So there's sufficient demand from capital markets participants in our LTV program.

But like we said, we have a very robust balance sheet, high capital ratios, and we're going to balance the allocation between the two to maximize shareholder value.

The next question comes from William Nance from Goldman Sachs.

Just a lot of good questions already on the call. I just wanted to clarify the comment on the expectation for segment growth rate on the Tech Platform business. I think you mentioned it was pro forma for the large customer migration. Is there any way you could give us a baseline or just a jumping off point there as we think about kind of rolling forward the next quarter? And then I think separately, I think that customer has spoken about like a very large termination fee that they would have to recognize. Could you just confirm that was in this quarter if you recognize if you've already recognized that or just how that's being treated, I appreciate the already questions here.

Yes, sure. So as it relates to the outlook that Chris mentioned, he said 20% growth for the Tech Platform, apples-to-apples without the large customer in both years. We're not going to give you more granularity than that. Our outlook assumes no revenue in 2026 from that large customer. The deal with that large customer ended. The revenue also ended in Q4, and the revenue in the quarter from that large customer was part of our contract, and it was equal to the average of the revenue in the last 6 quarters.

So I think people will characterize that revenue in a lot of different ways, but the simplistic way to look at it is the revenue was tied to the ending of the contract. Our revenue came in at a level that was equal to the average of the last 6 quarters. Chris, I don't know if you'd add anything to that.

No, that's fine.

The next question comes from Jill Shea from UBS.

I just wanted to touch on profitability. You've posted some really nice progress on ROTCE. I think you posted 9% in the fourth quarter. And clearly, there's a lot of momentum in the business, and you've been leaning into capital-light businesses and growing the fee income mix. I'm just wondering if you could touch on the ROE of the business over a longer-term horizon. I think you've mentioned 20% to 30% in the past. Has that changed at all? Is the timing of the past changed at all? Perhaps you can just touch on the overall profitability of the business that you're building?

Jill, I would say that we believe we're building a business that will have superior return on equity, return on tangible equity. We still believe it's in the 20% to 30% range. We are not going to underinvest in the business to get to that number while we're growing at the rate that we're growing. You should expect that we're going to continue to manage the business with a 30% incremental EBITDA margin, and as opposed to trying to drive it higher to maximize the ROE in the near term. Ultimately, if you see us growing less than 15% revenue, you're going to see meaningful margin expansion and thus driving to our long-term ROE.

Between there and here, which hopefully I'm long gone by the time we get down to 15% from a -- not [indiscernible] any longer because I expect to be here for the rest of time, unless, for some reason, someone asked me to leave, I hope we never see 15%. But we would be under delivering on the opportunity in front of us if we didn't keep investing. So we're not just dropping it all into investment. We're dropping some to the bottom line, at least $0.30 of every incremental dollar in an annual period, and that will give you a good indication of how we can drive returns over the long term.

But the growth rates of over 30% that are in front of us this year at the scale that we're at, just says we're just getting started. So we don't want to underinvest in that. Chris, do you have anything else.

The final question we have time for today comes from Devin Ryan at Citizens Financial Group.

This is Noah Katz on for Devin. With over $3 billion raised in the back half of the year, you're entering 2026 with a substantially stronger capital position. How should we think about capital allocation towards balance sheet growth versus other strategic opportunities? And can you speak on your appetite for M&A? And also on M&A, please remind us of the hurdles and considerations there?

Yes. So in terms of how we're thinking about capital allocation, like you said, we have 23% capital ratios today. It's over 1,000 basis points higher than our regulatory minimum and meaningfully higher than the regulatory minimum plus our internal stress buffer. So we feel great about the position that we're in. We're in that enviable position where we can grow and put more assets on the balance sheet. These are very good returning assets, that we're underwriting today, and we feel good about that as well as the LTV partnerships, as I've mentioned a few times during this call.

I'll let Anthony touch on anything as it relates to M&A.

There's a lot of opportunities out there. I would say, more than we've ever seen in 8 years here. But I'd also say the bar is really high for us. And when I say really high, we've looked at dozens and dozens of things, some of which were for sale, some of which were interesting to us. What we're prioritizing are things that can accelerate our growth versus the time it would take to build it ourselves. So one area we're very interested in is technology platform capabilities. And so while it's as a custody as a service, stable coin as a service, being able to provide a market exchange for Fiat and for different types of stable coins. Our pay product, SoFi Pay, we launched in September, it is currently using Bitcoin in the Lightning network, the transport [indiscernible] from the U.S. to Fiat dollars in over 30 countries internationally. And so is there a way for us to accelerate SoFi Pay's international expansion through a technology platform type of acquisition or infrastructure.

We're also very interested in international countries and the licenses some small companies could have. In addition to that, in technology platform, we don't have revolving credit card processing and issuing. It's something we can build ourselves, but if there's a technology that's not that expensive, and we don't have to pay for a business, we may do that and leverage our technology platform in core plus their processing to enter the revolving credit technology platform services space.

There are some horizontal things that we've looked at, but nothing of interest. As you know, we've talked about building big business banking, and we look at some SMB platforms to see if they would accelerate our opportunity there. The fact of the matter is they don't. We're likely going to build that ourselves, big business banking that is, which we have seen really strong positive response from the marketplace as it relates to the need of these services to be a bank that can do both [indiscernible] and crypto.

So we feel really good about having optionality in our balance sheet. I don't feel good about finding stuff at the price that we want. So so far, what I'd say is it's all going to be organic. But if something presents itself in the area that I mentioned at the right price versus doing it internally, we would act on that. But the bar is really high.

I know that was our last question. So I just want to wrap the call up. First, thank you all for joining. 2025 was an exceptional year by any measure. The more I went through our results in preparation for Earnings Day, the more I was able to truly [ brass ] how exceptional the fourth quarter and full year are looking through any lens, and how far we've come over the last 8 years. I could not be more proud of our team for building a diverse, resilient business that is impacting our members in an unbelievable way, and that positions us to overcome whatever obstacles are thrown our way.

All of that said, I think it's an understatement to say that we're just getting started, and I am more excited about what lies ahead than I have ever been at SoFi. You can rest assured that we will move faster than we ever have, we'll work smarter than we ever have, and we'll be more resilient than we ever have to capture the massive opportunity in front of us, fresh horses we ride and look forward to seeing you next quarter.

This concludes today's conference call. You may now disconnect your lines.

So thank you very much for joining us today. We are joined by SoFi Technologies. We have CFO, Chris Lapointe, with us here today as well as Investor Relations, Mike Ioanilli and Michael Del Grosso. So I'm Jill Shea with UBS, and I'm joined with Tim Chiodo, who covers SoFi with me. So I'll turn it over to Tim to kick us off.

All right. We're going to start with the recent update and Q4 quarter-to-date trends. So you recently raised the full year guidance basically across the board, revenue, EBITDA, income, EPS and total members. Maybe talk a little bit about some of the parts of the business that have really been driving that.

Sure. And first, Jill and Tim, thanks for having me. I really appreciate being here again. So in terms of overall performance year-to-date, it's been a great year so far in 2025, really strong operating trends across the board, a number of records. It's really been a testament of the strong brand awareness that we have in our product, really unique product innovation and continuing to iterate each and every day. We've been raising our guidance throughout the year and most recently, again, heading into Q4. We now expect to add over 3.5 million members on the year and generate $3.54 billion of adjusted net revenue, which represents about 36% growth. Like I said, that's a testament to the unaided brand awareness that we've been able to achieve and product innovation. This past quarter, we reached a record high at 9% versus where we were back in 2019, 2020 of just low single digits.

In terms of some of the segment level performance and what's exceeding expectations, within lending, we're seeing really good momentum and renewed interest in student loan refinancing as well as home loans, and we're having a really strong year in unsecured personal loans. But what's really been the game changer for us in terms of outperformance has been our Financial Services business, where we're seeing really strong trends across the board within interchange and brokerage fees, both of those are up 70% year-to-date. And then the real game changer for us has been our loan platform business, which is up 4x year-to-date from just expanding less than 4 quarters ago.

So really good momentum across the board that we're seeing. We also have made a deliberate shift into focusing on fee-based revenue sources that are less risky, capital-light, high ROE. This past quarter, 40% of total revenue was fee-based revenue, up from where we typically have been at about 25%. So good momentum there that we expect to continue throughout Q4 as well.

Excellent. Well, one of the stands out to us was the cross-buy, so reaching really its highest levels in the past few years. About 40% of new products open were from existing SoFi members. Maybe talk a little bit about that in context of your one-stop shop strategy.

Sure. It's a demonstration that our one-stop strategy is really working. So we talked a little bit about unaided brand awareness. That obviously brings people into the funnel and into the platform. But what really drives cross-buy is having unique differentiated products that work better when they're used together. This past quarter, we were at 40% cross-buy. That's our fourth consecutive quarter of having increasing cross-buy rates. And again, that's a testament to the quality of our product and innovation.

In terms of where the cross-buy is coming from, it's a number of places across our SoFi Money and SoFi Relay product, those are the tip of the sword acquisition channels for us, where about 1/3 of new accounts that are opened are coming from those 2 products. And then the real beneficiaries of cross-buy are our invest product as well as our lending product.

All right. Excellent. Thank you, Chris. We're going to move a little bit into product innovation first broadly and then a few specific things. So you noted and you clearly have plenty of room to do this in terms of accelerating some of the level of investment behind product innovation. Maybe just tell us a little bit about what's driving that and where some of those dollars are going.

Yes. What's driving the overall investment and level there has been the market opportunity that we have across our entire ecosystem of products. This includes our products that -- where we have really good market share. So our personal loans and student loan refinancing, where we're continuing to innovate and iterate and put marketing dollars behind, especially as rates start to come down, the total addressable market for student loans expands. Home loans where we don't have a meaningful market share right now, we're less than 0.1% of the overall market is a huge opportunity for us. We've expanded our product set there. We now not only do first lien mortgages, but we do refis, we do jumbos, we do home equity loans. Home equity loans this past quarter represented about $350 million of our total $950 million of originations, and that's continuing to grow, and it's a great asset for us. So you're continuing to see us invest there, and there's a ton of headroom just given where our market share is.

In some of our other products where we don't have a meaningful market share, there's opportunity to continue to drive meaningful growth. That's in our deposit franchise with SoFi Money, where we have about $30 billion of deposits, 90% of which are from direct deposit members, but that's only a fraction of what's available in the market today, especially with the large money centers. Brokerage, we haven't put meaningful dollars behind our brokerage business because we want to ensure that we're variable profit positive on a unit economic basis. We're now there and have been for 2 quarters. So expect us to put more marketing dollars and investment behind that business. We recently rolled out Level 1 options, which is going to be a key growth driver for us as well.

And then you have all the new products that we're investing in, given some of the secular trends that we're seeing. We recently announced SoFi Crypto, a return to that, SoFi Pay, which is our global remittance product, and we'll soon launch our SoFi stablecoin.

What I would say in terms of our overall philosophy on investment is that we've been pretty consistent in wanting to reinvest $0.70 of every incremental dollar of revenue back into the business in order to drive sustainable and durable revenue growth for decades to come. That overall philosophy has not changed, and we are certainly in investment mode given the opportunity set in front of us.

One thing I would note is, and Anthony mentioned this a few firesides ago, the EPS guide that we gave for 2026, the low end of that range represents a high-growth scenario, and we're certainly in that time right now. We're investing extremely heavily right now in all of those areas that I just mentioned. But we're also delivering meaningful and outsized returns. This past quarter, we're up about 300 basis points on an ROE basis relative to where we were in Q3 of 2024. Longer term, we expect our business to be a 20% to 30% ROE business and the pace at which we get there will depend on top line growth.

All right. Excellent, Chris. You just touched on it briefly, but maybe we could expand a little bit more on some of the crypto efforts. So you mentioned SoFi Pay and then also the relaunch of buy, sell and hold. Just talk a little bit more about those specific offerings.

Yes. We're extremely excited about getting back into SoFi Crypto and the recent announcement of SoFi Pay and the upcoming stablecoin initiative. What I would say on crypto, we just announced it. We're letting people off the wait list already. We're excited about that opportunity and the differentiated product that we're able to bring to market today relative to where we were several years ago when we were in the marketplace, primarily because it's permissible to operate as a bank in this space.

Two reasons that we're highly differentiated as it relates to the bank. First is we know our members trust and want to use a regulated entity to do their crypto trading as opposed to traditional exchanges that aren't regulated and don't have a bank license. We know that because we've surveyed a number of people and 60% of respondents have come back and said that they would prefer to use a regulated entity, which we obviously are.

The second benefit is, and this is a testament to the hard work and effort of our Tech Platform team who has built great solutions for us is that a member who wants to buy crypto on our platform will be able to transfer money directly from their FDIC insured checking and savings account on SoFi that's generating 3.6% interest to purchase that crypto. And they don't have to let their cash sit idly in an unregulated non-FDIC insured account that's not generating any type of interest. And then third is we offer a bunch of educational tools to help our members make the best financial decisions, particularly when investing in this type of asset type.

In terms of SoFi Pay, it's another example in form of selection in our unprecedented money movement capabilities. It leverages Layer 2 blockchain network to do global remittance and send money in a much faster and lower cost manner than other providers can do. We're still in the very early days of this, but it's going to be a great product for us. Eventually, we will want to roll out SoFi stablecoin and utilize that through SoFi Pay and have that drive our overall global remittance effort, but we're still early days.

And then as it relates to the stablecoin, we're really excited about that as well. Like I said, it will first help drive global remittance, but in the future, we're going to market this to large banks, midsized banks, large consumer brands who accept digital payments as well as exchanges and market makers in the crypto space who will essentially be able to wrap their consumer brand around our SoFi USD stablecoin, and they're going to end up choosing us because we're a regulated bank. We have access to the Fed window where we can put deposits that are tied directly to the SoFi USD stablecoin. And in turn for that, we could pay that interest back to our partners who can either record that or generate revenue or pass it on to their consumers and create a really unique value proposition.

So there's a number of use cases that we will be able to have with SoFi USD stablecoin, and we're really excited about the opportunity.

All right. Really appreciate that, Chris. I'm going to turn it over to Jill. We're going to move on to the loan platform business.

Thanks, Tim. So clearly, a hot topic with investors and it's clearly top of mind in terms of the loan platform business. You've announced a number of partnerships with Fortress and Blue Owl among some others. Some of those agreements have detailed publicly disclosed, others do not. So maybe you can just help us think about the volume or cadence of the loan platform business. How should we think about origination volumes and just overall personal loan volumes as we go forward?

Yes. Like I said before, it's been a game changer for our business. We just started expanding beyond it being a referral business and a decline monetization funnel for us to originating on behalf of others and really utilizing our marketing capabilities, operational capabilities, risk capabilities in exchange for a more diversified and durable revenue stream. So this past quarter, we did $3.4 billion of originations on behalf of others. We're now operating at a $13 billion run rate and generating $660 million of annualized revenue.

If you were to look at just our announced partners, Fortress Blue Owl, Edge Focus, that would translate to about $1.3 billion of originations per quarter. And like I said, we're at $3.4 billion right now. So that's a function of having a number of other partners on the platform as well as seeing a bit of flight to quality where existing partners are coming to us and saying they want to upsize their purchases over the course of the next several quarters.

So really good momentum that we're seeing in that business. I truly think we're just starting to scratch the surface right now because we're only doing unsecured personal loans through the platform today, and the vast majority of them are directly within our credit box and what we would otherwise hold on our balance sheet.

A few quarters ago, we started to do stuff that we would not otherwise hold on our balance sheet, but it's still really good credit, but it's still a tiny fraction of what we could do. Right now, we're turning down about $100 billion of personal loan applications coming through the platform every single year. So even if we were able to capture a small percentage of that, 5%, 10%, 15%, that's a meaningful growth driver just for that business.

In addition to that, we'd love to be able to expand beyond unsecured personal loans and offer other types of asset classes and go to our investors with a menu of options that allows them to pick assets based on their risk tolerance and investment profile. So I think we're just starting here. The demand is extremely strong from capital markets participants as well as borrowers.

In terms of how we should think about the cadence going forward, we've said publicly that we think this could be a $1 billion business. We're well on our way to that in just 12 months. We'll provide more guidance on how we think about that as we get to our Q4 earnings call. But we did say that Q4, we would see an increase in LPB originations relative to Q3. We've seen really good momentum in that over the last several quarters. And then from a personal loan origination perspective, there is some seasonality in Q4, and we always expect that. Historically, we've managed through it, but there is a little bit of seasonality.

Great. That's helpful. Maybe just turning to the balance sheet. In light of the recent capital raise and very strong capital ratios, I think you're running about 20% now relative well above your regulatory minimums. Can you just talk about the appetite to grow the balance sheet and what we should expect over the next year or so?

Sure. The capital raise that we did after our last earnings call was purely opportunistic and provides us with a lot of flexibility and optionality to grow the business both organically and inorganically and provides a lot of -- just a lot of optionality for us. We're happy with the pace of growth that we've been seeing recently. We would expect heading forward that we would grow the balance sheet at a good pace, and we'll provide more guidance on what we expect that to be coming out of Q4. But again, this is a great optionality for us.

And then perhaps just turning to student lending. You have made the comment that lower rates opens up opportunity for the student refis. Can you just elaborate on SoFi's opportunity in student refi and what it could look like when rates come down?

Yes. We have a good opportunity. You've seen good momentum in that business over the course of the last several quarters. Right now, we estimate there to be about a $400 billion total addressable market within our credit box and where we can price our loans today. We estimate that a 50 basis point drop would increase the total addressable market by about 25% and further decreases in benchmark rates could expand it much more meaningfully. So overall, good opportunity for us. Back in 2019, when rates were lower than where they are today, we were originating about $1.7 billion per quarter. We maxed out or peaked at $2.4 billion in Q4 of 2019 or about a $9.5 billion run rate. That was when we were a much smaller scale and we had lower market share. So the opportunity is pretty significant.

And then just in terms of the government decision to potentially stop funding graduate school loans, can you just talk about why those loans would be attractive to you, either from a rate perspective or a credit quality perspective?

Yes. These would be great potential borrowers. These are people who have good credit history. They're well educated. Think of these as doctors, lawyers, MBA students, nurses, and very high average income. We estimate right now that the total addressable market for the Grad PLUS program is about $14 billion. And given that we would be one of a handful of market participants and people who could originate in that space, we would have the ability to take our fair share of that.

And then turning to home lending. I think 2% of all mortgages taken out by SoFi members were actually taken out with SoFi. So what's the expectation for where penetration can go in 2026 and beyond? And how do you plan to drive that?

Yes. I think there's 2 growth vectors for the home loans business. I think it's within our existing installed base, as you just alluded to, where we wouldn't have to pay a meaningful second acquisition cost. And then it's outside our existing installed base where we have virtually very, very small market share. So outside of our marketplace or outside of our installed base, we're less than 0.1% of the overall market. Even if we were to expand that to 1% or 2%, that's a meaningful growth driver for us. Within our existing installed base, like you said, only 2% of all SoFi members who have some type of mortgage take it out with SoFi. I think part of that is a function of -- expanding that as part of that is a function of having the product set. We historically only did conforming loans and refis. We now do home equity loans. We're going to be rolling out home equity lines of credit and putting more marketing dollars behind all of this.

And I think the second part of it is brand awareness. We -- a lot of folks don't know that we do home loans. So you're going to start to see us put more marketing dollars behind that as well.

And then maybe just zooming out here and turning to the macro and credit quality. You did see improvement in your net charge-off rates last quarter on personal loans and student loans. Now that we're about 2/3 of the way through the fourth quarter, do you have any update in terms of credit quality and overall health of the consumer?

Yes. Overall, our view has not changed since the Q3 earnings call. Really good progress and trends that we saw in NCO rates as well as delinquencies in Q3. We continued to bend the curve. NCO rates were down 20 basis points. Delinquencies rates were down and everything is performing in line with expectations here in Q4.

And then just a question on funding and the margin. You're running your NIM at, call it, 5.8%, and that's well above your margin guidance of 5% plus. Can you just talk about the puts and takes on the margin? And also what are you seeing on the deposit side?

Yes, there are a number of puts and takes. The thing I would say is that we've been able to maintain a really healthy net interest margin. This past quarter was 5.84%. And that's a function of a number of things. First, we've been able to maintain really healthy asset yields in rising rate environments. We've proven that we've been able to raise rates and our weighted average coupon at a faster pace than where rates have gone. In a declining rate environment, we've been able to hold prices and not decrease them at the same pace as where rates have gone.

So on the asset side, we've been able to maintain really strong yields. On the cost of fund side, we've been able to lower our overall cost of funds because we've been able to displace higher cost of funds through warehouse lines, brokered CDs and other more expensive cost of funds. So it's a function of those two things that have enabled us to maintain really healthy NIM margins.

The other thing I would note is that you can't look at the net interest margin in isolation either. We take a more holistic view to the member and are looking to drive the highest lifetime value for each and every one of our members at the lowest customer acquisition cost. And the way that we do that is by providing differentiated products, differentiated selection. Price is a really important form of that selection. We're right now offering an industry-leading APY of 3.6% if you do direct deposit. And unlike other nonbanks, we have the ability to offer a higher rate, and we don't have to lower rates at the same pace as the Fed, and we can still offer a very unique value proposition and give that all back to our members because of the cohesive product set that we have built and our focus on lifetime value as opposed to any specific product or metric.

Very helpful. I'll kick it back over to Tim.

All right. Thank you, Jill. All right. We're going to move into a little bit on the Financial Services segment. So last year at this time at the conference, we were talking about annualized revenue per product at about $81, and now we're up to $104 as of the most recent quarter. So it's a nice big increase. Chris, maybe you could talk a little bit about the drivers of that increase over the past year. And then maybe more importantly, how investors should think about that number going forward?

Yes. Overall drivers of the increase in monetization of Financial Services has primarily been a function of the expansion of our loan platform business, where we're generating extremely good returns at a low customer acquisition cost. We're also seeing good momentum in spend behavior with our interchange being up over 70% year-to-date and brokerage fees, particularly as we've rolled out new monetization features like Level 1 options. That will continue to grow as we expand the loan platform business and roll out crypto and other products.

Right. Thank you, Chris. All right. We're going to move to the Tech Platform. So Tech Platform. So revenue growth in that segment was up about 12% this past quarter, and it was driven by a combination of continued monetization of your existing clients, but also there were a bunch of new deals that were signed and a few that you called out. One in particular was Southwest. Maybe you could talk a little bit more about some of the momentum in that segment and how we should think about the onboarding of new clients and how significant those contributions might be as we head into '26 and beyond?

Yes. We're excited about the Tech Platform and the opportunity set. Main thing I would say about Tech Platform is that it drives our overall product road map for all of our consumer products, and it's done a really good job of that. You don't always see it in the revenue or profit numbers, but the team has done a phenomenal job of being our overall driver of the product road map, which has enabled us to innovate and iterate at a much faster clip than we otherwise could.

As it relates to the existing business and financial profile, we've seen good momentum, particularly in the customer pipeline of interest. We recently announced the Southwest, United and T-Mobile deals, all of whom are very large installed bases of consumers, and we're excited about those businesses. It speaks volumes to our technology capabilities if large consumer brands like that are choosing us to provide them with Financial Services.

So we're excited about that business. The evolution and overall arc line of the revenue profile has changed as has the sales cycle. When we first acquired the Galileo business, it was primarily focused on fintechs, bank-in-a-box type companies where we would sign up a lot of them and generate decent revenue from each one, but the integration and sales cycle was really quick. We -- that evolved to focusing on more durable revenue streams, larger customers, banks, consumer brands with large installed bases. And we did that because we wanted to create more durability of revenue.

We were also benefiting from the fact that following the Silicon Valley Bank situation and First Republic situation, there was a lot of regulatory pressure for folks to get better real-time visibility into managing their assets and liabilities. We were in a prime position to be able to offer those types of products and services. But the sales cycle and integration cycles are extremely long, especially when displacing core architecture and core technologies.

We're now at an interesting point from a macro perspective where we're able to partner with other businesses to provide financial products and services, particularly in the crypto space. It's much easier to add on and bolt on new products and services within an existing ecosystem than it is to rip out an entire core and replace it. So we view the opportunity set bigger than it ever has been and really proud of the team for the progress that it's made in signing up some of these larger customers.

All right. Thank you, Chris. This was a great update on technology platform. I'm going to pass it back to Jill to close this out with the final question.

Yes. Thanks, Tim. So maybe one last one. Just with your capital levels above 20%, could you just provide any update in terms of plans for M&A? Is there anything that's of interest to you that you would potentially deploy some capital?

Sure. So our -- like you said, our capital levels at 20% provides us with significant optionality to explore both inorganic and organic opportunities. We look at a number of assets every single day. There's nothing imminent at this point of time, but we have a ton of optionality, particularly as we're heading into 2026.

Great. Thanks so much, Chris. We really appreciate you joining us here in Arizona.

Really appreciate it, guys. Thanks.

Thank you.

We'll begin, I think it's beginning. All right. Great. So for our next panel, we're joined by SoFi CEO, Anthony Noto. Anthony has served as CEO of SoFi since 2018, steering the company through its transformation into a full-service digital bank. And today, he announced the launch of the crypto trading platform as well. His career spans leadership roles at Twitter, the NFL, Goldman Sachs. He's also a graduate of West Point. And as today, as Veterans Day, thank you for your service. I was actually at West Point last week for the Army game. It's really good.

It's beautiful there. Great time of year.

Yes. Well, thanks for joining us. Maybe, Anthony, you could start with running down where we are with SoFi as a story, the key initiatives ahead that are going to drive growth from an already impressive starting point today?

Sure. It's hard to talk about where we are without starting with where we've come from. I joined in approximately January of '18. We set out on a mission that's still our mission today and a strategy that's still our strategy today. And our goal was to essentially help overachievers, people that have done well academically, done well professionally, help them get to the point that they could live their ambitions. Their ambitions could be what size family they want to have, what size home, career they wanted to have, retire when they want to have, live where they want to live.

And it was our view that this cohort of overachievers had been largely left behind by banks because it was hard to make money on them. And increasingly, banks had scaled to the point where they're exiting businesses based on what their ROE was as opposed to what the member or person actually needed and that was my pitch to the Board in December of '17, and we've sort of executed on this one-stop shop approach because there's no way to help people get to where they want to be financially if you don't help them spend less than they make and invest the rest.

Savings is not going to get you there. Investing is critical. And if you don't spend less than you make, you can't invest. So relatively simple formula. It requires us to do everything we possibly can with them, either for all the major decisions they're making in their lives, paying for college, buying a house, getting married, having children but also all the days in between. So we have more information to help them when they make those big decisions.

In 2018, we generated about $250 million of revenue, and we had about 650,000 members. We are about to launch SoFi Money, SoFi Invest and a couple of other products and services. Today, we're on track to do over $3.5 billion of revenue. We just reported results and had over 12 million members and expect to continue to add to that quite significantly, it grew about 35%. We're over 18 million products growing 36%. And we've been profitable, I think, for 8 quarters in a row and are driving really good margins, both on EBITDA and net income margin and growing book value quite meaningfully.

In terms of where we go from here, we think we can sustain significant levels of growth, just focusing on what we're already doing and helping to drive continued brand awareness, driving continued trust, continuing to iterate on the products, making them faster, providing better selection, better features, better functionality, making the entire app more useful and more integrated in addition to providing great content and convenience and making the products all work better together. We think just that alone, we can grow pretty meaningfully from here. If you look at our last 16 quarters, we've exceeded the Rule of 40, which is revenue growth plus EBITDA margin and we've done that 16 quarters in a row with an average of 58%, which is quite remarkable for a financial services company. The business when I joined had 2 products that are both lending products that were basically 100% of revenue in lending, and now we're down to about 45% of revenue in lending.

Lending is a great product, but it's also capital intensive. It can, in some ways, gate your growth. Our growth is really ungated now given the scale we have in the rest of our products and services, and we truly can offer products across the borrowing, savings, spending, investing and protecting. The new initiatives beyond what I already talked about is we mentioned crypto this morning. This is step one of a long road map of products that we will continue to bring to market. I believe blockchain and digital assets are a technology super cycle, similar to AI that will impact every element of the financial services world globally and actually have a bigger impact in third world countries and economies that haven't benefited from banking and capital availability over time.

We'll launch a SoFi USD stablecoin, both the payment stablecoin and deposit stablecoin. The payment stablecoin, we hope to introduce in January, if not sooner. It will be part of SoFi Pay, which we just launched a couple of weeks ago, which is the ability to send payments from the United States across the lightning network, to, in this case, Mexico, into local Fiat. We'll launch Europe and Brazil before the end of the year. But so far stablecoin will be part of that transmission payment process. Our crypto business that we announced this morning, the payments that flow between us and other third parties will all be done with SoFi USD.

SoFi USD will also be used at point of sale. SoFi USD will also be a currency and a tokenization of loans that will also be offered to all of our partners that generate 8 billion transactions, debit or ACH transactions through the Galileo platform per year. And we'll market SoFi USD to every large bank, every regional bank, every consumer company that accepts digital assets and everyone in between. And so we have significant aspirations there. We have secured lending aspirations tied to digital assets and many other investment opportunities.

Beyond that, within invest, we've made a really, really big push to increase awareness for our Invest product. We'll continue to do that. We're actually rolling out crypto in Hong Kong in addition to the United States.

So can you maybe expound on SoFi Pay a little bit more? Like who will you be competing against to what are you trying to achieve versus sort of what you have right now? You hit on it a little bit or maybe you just dig deeper a little bit.

Yes. I've waited a long time to be able to say the word SoFi Pay. We purposely don't talk about our products external or internally based on traditional industry nomenclature. So I hate the word SoFi checking. SoFi say, I just -- I'm like, no, it's a money account. We put money in an account and you should be able to do whatever you want with the money in that account. It's a money account. That's why it's called SoFi Money. But the reality is, is when you're regulated as we are as a national bank, which I'm very proud of, there actually is nomenclature that you have to use, checking account, that's actually what it's called in a savings account, it's what it's called. But the functionality that we provide for that account is really put money in that account, you earn interest, 3.8% API. You earn reward points for money in that account. You can send money via instant self-serve wires, which I would encourage you to try. It's amazing. I have children, they need to send wires for different things. And without teaching them 1 thing about ABA accounts or routing numbers or Swift numbers, they could send a wire in 5 minutes.

And it verifies your identity in real time every time. We can do international remittance now. We can do ACH, we can do debit. We're adding Fed now. We do Zelle uniquely. We do person-to-person payments either via e-mail or phone number. We do bill pay, we do physical checks. So we have -- obviously, bank transfers. We have all these ways to pay. And so SoFi Pay is really a way to bring that set of products and services to the masses around the world as a way to spend globally.

The first version of it is this international remittance, but you'll see it evolve over time to be the place you put money when you want to pay and it can draw from any account, fund from any account, could fund from SoFi checking account, fund from SoFi savings account, fund from a SoFi brokerage account, fund from an ex-bank account. And so we want to help people move money as fast as they would like to move it so they can get on with what they want to achieve at the lowest cost and the safest.

So I guess like there's all these digital wallets out there today. Wouldn't this be competing with them?

100%. It's going to compete with every way you move money. So -- and the reason why we call it SoFi Pay is, you pick where you want the money to come from, you pick the way you wanted to travel or where you want it to go, and we'll pick the lowest cost way fastest way and safest way to get there.

Got it.

And it will be fully integrated in our app. It's not meant to be a stand-alone app. It's meant to be that SoFi Money is a tip of a sword for acquisition for us. SoFi Relay is the tip of the sword. SoFi Plus is, and this will be another way for us to create these unique need -- meet these unique needs and then bring that person into the fold of SoFi.

So I assume like the primary customer acquisition channel will be people that are using our products today. And then after that, like do you roll out a broader marketing strategy? Like how do you go about getting customers?

Yes. I think this product will actually appeal equally to non SoFi members as SoFi members. So when I say tip of the sword, this will be a primary SoFi first product for a lot of people. That maybe didn't understand what SoFi does or even though we spend nearly $1 billion of marketing, our unaided brand awareness is roughly 10%. So that means when you ask 100 people when you need a financial services product named 3 companies, you don't give them any names. 10 out of 100 people would have mentioned SoFi. That means 90 out of 100 people wouldn't put us in their top 3 or even now to put us in our country. So we have a huge opportunity to grow that unaided brand awareness. We think it needs to get to 30% for us to achieve super scale and be on our way to a $1 trillion company. We have to do much more than that, obviously. So this is a product that will help introduce people for the product that are in that 90.

And how do you educate the customers on your products?

Yes. SoFi Pay is a really easy telegraphic thing to communicate as opposed to SoFi Money, which may not be that obvious or SoFi Investment may not be that obvious. So there's a lot of different ways to market the product. Our goal is to have it available through partners as a way to pay in that moment and to use it to switch the way they pay and give them economic incentives, both the merchant and the consumer to do that. But we'll also market it from an acquisition vehicle in other ways. So for SoFi Pay and get X reward points or sign up for SoFi Pay and get X back when you pay. Referrals is another example.

Got it. So you rolled out crypto trading capabilities today with SoFi crypto. What will differentiate your product? And what kind of expectations do you have for it?

Sometimes, it's better to be lucky than good. I never imagine a day that the OCC would say that a national bank, and there's different types of charters, we have the best charter in my mind. We're not a trust bank. We're the first national bank that is offering crypto trading in the United States. And I think we'll be the only 1 for a short period of time, but we'll continue to differentiate. When we launched SoFi Invest back in 2019, we launched with cryptocurrency to build and invest in it. And then in 2023, we were forced to close it down because it was deemed as not permissible by the Fed in a bank holding company. March 7 of this year, the OCC came out with an interpretive letter that said crypto trading or investing, not in those exact words, was permissible by banks. And we ran as fast as we could reintroduce the product but it's even -- it's way better than it was before, and here's why.

We have to invest a significant amount of money in the infrastructure, in the processes, in the people and the technology to ensure that we safeguard people's money. We have a huge responsibility for safety and soundness. It's governed by the OCC. It's governed by the Fed and the bank holding company. And people want to know that what they do is safe. They want to know they can trust their partner with. Well, having a national bank license telegraph significantly the amount of safeguards that are in place for people with cryptocurrency. And so we know there's a growing interest in cryptocurrency or digital assets. What people are worried about is, are they going to get hurt by a company going out of business? Are they going to get scammed. And so having that sale of approval as a bank is super helpful. So all the things that we do to build the rest of our businesses have gone into SoFi crypto. One additional benefit compared to others that we'll compete with is you do not have to put your money in one of these wallets, but you don't know where it sits. You don't know if it's insured, you don't know if you're being hacked.

It actually is going to sit in your SoFi Money account. So if you want to buy Bitcoin, you transfer money into a SoFi Money account, which is checking and savings. You can earn interest with that money sitting there. You could pay any way you want. You don't have to use it on crypto, but the second you put in an order for Bitcoin and it executes we would draw the money from that account. We put into the marketplace to the third parties, and we execute it for you. You don't have to fund the crypto account. So all you're really doing is signing up for the ability to buy, sell or hold crypto and you're getting the benefits of this great checking savings account that gives you 3.8% interest allows you to pay any way you want, not keep your money locked up.

One of the challenges with crypto accounts and wallets is that your money is kind of siloed. You have to remember, I have $5,000 there that I haven't invested yet. I want to move it someplace right now. It's not so easy. If it's sitting in SoFi Money, you can send it all the ways I just mentioned instantly.

Got it. So it sounds like you have a big ambitions about building this platform and ecosystem. And you want to offer a lot of different products. Like how quickly do you think you can get there?

Well, I mean, it's not -- I mean, we built a SoFi crypto buy sell and hold technology -- we were able to buy some technology that was in a company that had gone out of business that was proven and scalable. So we've gotten there pretty quickly from March. We're going to do institutional buy, sell and hold as well. So that's around the corner. I mentioned SoFi USD by January, hopefully sooner, and our team is listening and knows that I'm telling everyone hopefully sooner. I think it will be a very short walk to the rest of the products. We can move very fast. We have a great engineering product and design team. We have a great business unit leader for our crypto ambitions. And we believe first to market matters a lot. It's not the only factor, but getting there first and building trust before someone screws it up is pretty critical.

So do you feel like you might be behind some of the nonbank competitors given I mean, as a regulated entity?

What I'd say is they're already doing billions and billions of dollars of trading. So it would be misleading if I didn't say we're behind. Like we just started trading today for the first time in 2 years. So they have more volume than us. They have more customers than us. They have more years of experience than us. We will absolutely kick their buts because we are a national bank. We'll provide a level of safety and soundness that they'll only desire to do, and they'll never get there without the investment. They won't make the investment unless they have to do it from a regulatory standpoint. And I don't think they have the intestinal fortitude to climb the mountain that we've climbed that are now on the other side of to get that bank license.

And it's not just about technology and KYC and AML and BSA and all these other buzzwords. It's about liquidity. It's about quality of assets. It's about the management team, quality of earnings and vibrancy in tough times. Having to survive the fallout of First Republic, Silicon Valley Bank, Signature Bank as a technology financial services company that's in those similar markets is a true testament to how battle-tested our technology is, our processes and our safeguards. So I think it's a huge advantage and allows us to differentiate in the marketplace. And because we've done that investment, I think we can move faster and safer.

So you described crypto as a super cycle. AI is obviously another one. How are you incorporating AI into your processes at SoFi?

We have over 40 proof of concepts going on at the company currently. If you'd asked me that question, September of 2024, I don't think I could have really made an argument for more than a handful of proof of concepts. Here's the different ways we're using it. We're using it to remediate account takeovers faster. So we automate that process now. We're using AI to basically remediate account takeovers faster. We're now implementing that into restrictions -- account restrictions. We're actually doing the same thing with disputes and resolving disputes faster and quicker. It not only makes a great member experience or improved member experience. It lowers cost, provides better accuracy. I call that defensive. There's one thing that we talk about internally that's not that broadly talked about in the investment community, which is second order effects.

If you launch a product that's the best of checking and savings you want like SoFi Money, first order effects as you grow that to 6 million, 7 million members, $32 billion of deposits, x billion dollars of transactions. But what you also grow on a second order basis is disputes, account takeovers, fraud, all those different issues. And so up until 2024, no company in the sort of ecosystem of Silicon Valley technology investment was focused on solving second order effects. There are now companies that exist just to solve account takeovers, just their resolve disputes just to provide protections on transactions and authorizations. And so that's super exciting. And we'll make the experience better, and we'll move more transactions digitally from physical.

The second area is offensive. And so in our app right now, you can click on Cash Coach. Cash Coach will look at the cash you have in all of your accounts, you have to connect those accounts to us or if you have them all with SoFi. And we got cash in all your accounts and look at all your spending and we'll try to predict how much excess cash you'll have and how to optimize its location. You may have a credit card balance that's only $1,000, but you're paying 25% interest on it, pay down your credit card and basically pay yourself 25% interest by paying it down. You may have $10,000 sitting in a checking account bearing no interest, and you can simply move it to SoFi Money and get 3.8%. You may have a credit card that's maxed out and it's playing 25% interest, and we can refinance you at 12% through an unsecured personal loan. So Cash Coach is giving you options to optimize your cash. There's something that we have a launch that we're working at right now called Coach overall.

And we make fun of these things internally. I see T-shirts with my face on it and hats so they make me smile. And hopefully, they make other people smile when coach helps you get your money right. But Coach is really meant to be like the equivalent of a chat GPT for you at SoFi. So for example, my credit card was run up to $6,000. I just paid it off about 8 days ago and like, I didn't spend $6,000 on anything. I went in and clicked on Coach. I said, please give me a list of every transaction that's happened on my SoFi credit card since I paid the bill off x days ago, 10 seconds, it has every transaction. Please aggregate them by merchant. And all of a sudden, I'm like, holy cow, my family is spending a lot of money at DoorDash and on Uber and a lot of money on Apple and we have 4 Netflix accounts. We're the only family in the country that's actually paying for multiple Netflix accounts.

But you can ask other things, how do I improve my credit score? How do I lower my cost of debt -- can I refinance my mortgage? Am I diversified enough? How may I change my risk profile. And so that's something that will come out later and will be something that's unique to SoFi because we have all this data on you, but we also have all this data on other people, and we can train models based on that data. And so being a one-stop shop, all of a sudden becomes a differentiator on usable data to help you get your money right.

In the end, we want that product to proactively answer for you the 3 questions every day. What must you do in your financial life that day to get your money right? What should you do and what could you do?

So it sounds like you're using AI for better engagement for cross-selling other products. Is there a cost savings component.

There's definitely cost savings on dispute resolution, account takeovers, fraud restrictions, -- but there's also a cost savings, in my mind, by personalizing experiences to help people get to the point they need something quicker and faster, and that's going to help on customer acquisition costs. We are using it for marketing and making our ads have higher click-through rates, better conversion, and that drives customer acquisition costs down as well. So it's really proliferating the entire company in every area and 40 proofs of concepts are not it's not easy to do, but there's that much opportunity and we can do these things on small individual tasks or big offensive opportunities.

Perfect. Maybe you could switch gears and just talk about the health of the consumer because there's just a lot of different data points we're getting around that. And -- it sounds like they're mixed. So I'm just curious sort of what you're seeing inside your portfolio. There's a lot of chatter about student debt and students. So maybe just filter through all of the different demographics as well.

Sure. So first, the level set, we go after a higher than mainstream customers. So $100,000 income or higher. Our average FICO scores for our personal loans and student loans are in the 750 range, so higher income, higher credit. That doesn't mean we don't have a lot of people below that in check and savings account or invest. We do -- but generally, that's the target audience that we go after from a credit standpoint. We've seen very strong performance of credit.

We announced our quarter, I think, 12 days ago. It's only been 12 days. We haven't seen a change in credit, you can imagine. And it's performed really well, and it's improved meaningfully over the last 2 years. Now a lot of that is because we're doing a good job of underwriting. But it's us -- but we're doing -- we're seeing credit performance improve while significantly increasing our originations. Last quarter, we were up to about $9 billion in total originations, $7 billion of unsecured personal loans, at least to do like $3 billion or $4 billion. And so when you grow that type of amount of originations, you could potentially see some decay in credit performance that we haven't. We haven't changed our credit box. And so within the credit box even at higher volume, we've seen consistent performance.

The other 2 things we look at are spending on a point-of-sale standpoint, which is very strong. And then, of course, investing and we're seeing really strong engagement on the investment side. So we're not really seeing any deterioration in the consumer at all. The things I always focus on beyond our own data is what's going on with employment. And I've said before until unemployment gets above 5%, I'd even say slightly higher than that 5.25%, I don't worry about the economy. The things I do worry about that are not related to the consumer because we haven't seen that deterioration is what's going on with liquidity, what's going on with credit more broadly. And so when I hear things about credit deteriorating in other places, I pay attention, and we try to follow a number of leading indicators.

So it's not like we're oblivious to it. We're just not seeing it translate to us nor the upstream effects of whoever is having challenges with credit. And similarly, we're looking at credit card spend. It's obviously great to have partnerships with Visa, Mastercard, may provide a lot of healthy information that we look at. The thing in the past that I think has caught people by surprise in environments like we're in as liquidity issues, but rates are going down and quantitative tightening is ending. And so liquidity really shouldn't be an issue, although you got to look for those canaries in the coal mine, but we haven't heard or seen anything like that yet.

Are student loans that?

Student loans have done -- so for those that don't know, we do 2 types of student loans. One is someone has an existing federal student loan, and it's at a certain rate their credit score is meaningfully better than the average credit score that determines that rate when they graduated, and we help refinance them at a lower rate because their credit is better than what the rate is. They may have a 7% rate, we can refinance them at 5% sort of like a mortgage when mortgage rates go down. So that product has slowly been getting back to a normalized level. I think last quarter, we did just under $1 billion, and it's doing fine. We're not seeing any meaningful change in that business.

The other business that we do in student loans is actually in-school loans that we've slowly been building over the last 8 years. One win behind the back of that business is the government's decision and I don't think it's finalized to stop funding graduate school loans or grad Plus loans, so medical school, law school, business school, and so that will have to come from the private sector. We're happy to provide that financing for people that are qualified. It's actually even more attractive loan than our student loan and financing. Rates are meaningfully higher, almost 30% to 40% higher. Credit performance is actually as good as the student loan refinancing. And so it's almost 30% higher interest charged without a higher loss rate and the funding costs are very similar. So that would be a very nice business to add to SoFi.

I'll give you a fun fact that we mentioned on our earnings call, we expect in the fourth quarter to generate more revenue in our home loans business than revenue we generate in our student loan refinancing business which is a remarkable stat when you think about it that we didn't have a home loans business in 2019, we closed it down and student loan refinancing was the first business the company was founded on. Many people think that's the only product we still have. But it's nothing negative about student loan financing. It just shows you how far we've diversified the business away from capital intensity and a loan book that's unsecured.

And so for that grab plus opportunity, when and if it arises, like how do you intend to go after it?

We have a sales team that's been calling on universities for the last, I think, 6 years, it's led by a great general manager and they're out selling to those universities to get qualified to be a lender for the graduate students.

Got it. So you guys feel like you're in a good position there to...

I think we're in a great position. The best position to be is one of the largest companies in your industry don't even offer the product.

And it's very reliable that banks don't offer a lot of the products that people need. So maybe you could just talk a little bit while we're on the topic, student loan refi and the current addressable market for that and how it fits into the broader SoFi picture?

Yes. I don't want to downplay -- it's an awesome product, the members that we have at SoFi that, that's their first product or a good product or great members. They do many other products for us. It's just not going to scale the way the rest of the business is scaling. Home loans is going to be a much, much bigger business. I mean it already is and the rates are still relatively high. Personal loans, I think, can be -- continue to grow meaningfully. We're attacking the credit card industry. Basically, you don't realize this to you get into the nitty-gritty of it, but here's the deep dark secret about credit cards. It's rooting the financial fabric of our country. It's rooting the financial fabric of our country.

And I wish we could do more to educate Americans that these large banks are offering these premium credit cards with huge rewards. In fact, last night in my TV in my hotel room, it said, sign up for x card 125,000 bonus points. Someone is going to get addicted to those bonus points, and they're going to start spending not thinking about whether they can make the full payment at the end of the month to get to more reward points to get a free airline ticket. The fact that they're actually paying 25% interest on that $1,000 balance that they're not worried about paying off is offsetting any savings they have on the reward points. And so it's almost like a dichotomy in that banks are supposed to help you, but they're giving you these reward points as a drug that you keep chasing, not realizing you're building this balance that you're not going to pay off maybe it's first $500 that you don't pay off, then it's $1,000, then it's $2,000.

You're getting charged 20% to 25% interest. Like who realizes they're paying that amount of interest. And if you go back and look I'm pretty confident there are people in this room that have not paid off their entire balance every month in their lives. And so we're going after that audience and refinancing them from 25% down to 12%. And the great thing about that personal loan that refinanced them off of that 25% is there's no prepayment penalties, you could pay it just as much as you used to pay and pay it off twice as fast. You could actually refinance if rates go down again without a prepayment penalty, without any additional fees. So it's a great product. So home loans and personal loans are going to be meaningfully greater than student loan refinancing, but it's a good acquisition to find great customers.

Great. So let's shift gears. LPB has been a great driver of fee revenue. it's provided diversification to your revenue base. What do you see as the long-term opportunity for that business?

I think it's pretty significant. We -- there's 2 elements to this. One is what's the volume of loans that we can generate through our marketing engine, through our underwriting engine, our credit engine and service? And what's the volume of loans we want to put on our balance sheet. And the answer to that question is that the amount we can generate is meaningfully greater than what we actually want to underwrite and keep on our balance sheet or even want to sell. And so we can help be an origination engine for all of these dollars out there that have to buy assets at insurance companies and asset managers, et cetera. So I think it will continue to be a pretty big opportunity. The area that's new and different that we have less experience in is we turned down 70% of the applicants for unsecured personal loans at SoFi, 70%. We believe that the cohort of near prime applicants that we don't approve will be equally attractive.

We have to build some history on that credit performance, but we think it will be equally as attractive. I think Chris has said it on the call, it's there's $100 billion of declined loans on our platform. We don't think all $100 billion are loans that people would want. But there's probably 25% of it that near-prime lenders would love to have, and we're just not in that business. And so that would be an additional driver of the loan platform business.

And so are your LPV partners still active? Or are you speaking with new potential partners?

Both. We have a bunch of repeat customers that have had made annual commitments. They've renewed those annual commitments. They've upped the amount they're doing. We do have people that do an annual commitment and then intra-quarter, they come in and ask for more. We're in dozens of conversations with new partners. And so we're hiring if you go on our website and look at capital markets. We're hiring a lot of capital markets people. The capital markets people call on the asset managers and help get those deals done, and we have more inbound interest than we have, we call them capital markets, but essentially salespeople. So we're hiring quite meaningfully to help meet the demand of what's coming in.

And so this is a question I have, just like where is all this growth coming from? Is it coming from people refinancing their credit card loans as you sort of described? Or do you think it's people levering up more than they did before? Like how would you...

It's people refinancing their credit cards. So we asked the question. We're very cognizant that someone may refinance their credit card debt down and then run their credit card bill back up and one way to eliminate credit issues is identifying that. Loan stocking is another thing that we have to identify. By the way, AI does -- we don't use AI to predict cash flow because it's a knowable thing. So if you want money from us, give us the things that tell us what your cash flow is, if you don't want money from us, don't answer the questions. But we shouldn't use AI to predict cash flow. We actually -- it's a knowable thing we should underwrite to knowable things. But we can use AI as a way to detect first-party fraud, people loan stacking and other behaviors that increase the credit risk of that person post us refinancing them. But the real addressable market is the credit card trillion dollar-plus market.

Got it. Maybe we could shift gears and talk about Home Lending. You kind of touched on it a little bit. Maybe you talked about the opportunity.

I just think it's the most important economic and emotional decision people will make in their lives. When they buy a home, and we need to be there. It's a hard business to make money on. We're finally at that point that we're making money on it, and it's growing very nicely. When rates come down, I think we're in a great position to refinance our members' mortgages for our members that have mortgages, only 2% of them have them have it through SoFi. So there's a huge opportunity from our existing members in refinancing their home loans as rates come down and purchase will be a big opportunity as well, and we're prepared for that.

And like the origination channel, is this direct?

We -- just everything else we do, we do direct mail, digital, performance marketing, television, pretty much all the channels you'd imagine, radio, et cetera.

Got it. Can we talk about like rate cuts and how it impacts NII for you guys?

So rate increases, rate cuts, we're able to make adjustments in what we're doing to maintain net interest income and interest margin, we're managing to returns. And so -- we have pretty good data and analytics and testing capabilities to maintain the right types of spreads relative to the risk that we're taking. Declining rate environment is a hell of a lot better than a rising rate environment. And so I'd be super excited to see rates come down in another 100. I think another 100 basis points would be gangbusters for student loan refinancing for personal loans. I also think -- the home loan business would benefit meaningfully 200 basis points would be really significant. Our investments will also benefit as rates come down because people will make less on savings.

Cool. Could we talk about the tech platform business, when we'll see the benefit from new contracts coming online?

Yes. We provided a perspective on the tech platform business that our transition strategically to large banks and to installed bases. I mean 2 things happened. One, large consumer businesses that have installed bases that want to be in financial services, that has done incredibly well. We've signed United and launched that T-Mobile shift their portfolio over to us. We announced Southwest Airlines and Wyndham, and those are all launched. So we're making really good traction there. Large financial institutions have been slower to make decisions and quite frankly, with the change in administration, I think all the demand for large financial institutions to upgrade their technology is gone because they're not getting the pressure to do it. But there's a lot of other products and services that we can offer those 2 channels. And we said we'd give an outlook for 2026 once we get there to kind of bring it all together because there's just a lot in flux.

The biggest benefit of our technology platform business doesn't show up in the P&L, and that's the ability to build infrastructure technology for SoFi. The innovation that you see in our app and on our website and driving this growth, it's a direct result of owning that technology platform, not to mention it's just a very good business in terms of the revenue it has and the marginal profitability it has. And so everything we want to do in crypto, we want our technology platform team to build for us and to build for other people. And that technology is not something that's replacing stuff at banks. If you look at regional banks or large banks, they don't have crypto trading technology. They don't have secured lending capabilities. They don't have stablecoins. And so as we build all these technologies for SoFi, in digital assets and in blockchain, we are going to provide those services to others, and that will be a much bigger opportunity then, say, converting a big financial institution is core because they're not replacing something and it's added, which is a much easier decision for them.

Got it. So we have a couple of minutes left. I figured if there's any questions from the audience, I will take them. If anyone has any, otherwise, I got 1 or 2 more. Questions?

Regional banks and other banks they don't have an infrastructure today. What do you think is needed for them to see from, say for example safety.

Yes. So this is a commercial to all of them and to all of you that are investors to tell them, we want them to use SoFi USD. And here's why they so use SoFi USD versus any other stablecoin. We are a national charter bank. We are a bank holding company. We have access to the Fed window Fed bank accounts. And so when someone gives you $1 for a stablecoin, that dollar is supposed to be put into reserves. We are going to put that dollar at our Fed bank account. What does that mean? Others will put it at in T-bills or treasury bonds, et cetera. They all have duration risk. They'll have liquidity risk. And even though we don't like to admit it, they also have credit risk. But when you put the dollar into the Fed bank account, it has 0 credit risk. It has 0 liquidity risk, and it will be bankruptcy remote. And so -- and it doesn't have duration risk.

And so my pitch to everyone is we're going to build the technology in our tech platform business. You could wrap our SoFi USD coin with your own name. We'll do all the minting, all the burning. We'll do all the treasury work. We will give you Fed funds, which we get by putting in the Fed funds without the credit risk, without the duration risk and without the liquidity risk. And we think that's a product that every regional bank, every large GSIP should use, and they shouldn't start other companies that then have to apply for a license and then have to prove they can do this. We're a bank, we're already in third-party technology services. And we're going to ensure that it has phenomenal distribution because we're going to give it to our consumers. We're going to give it to the people who do the 8 billion transactions to our technology platform, the ACH and debit and it will have a lot of distribution through those different points, which is critical for a stablecoin. And we'll do it in all the necessary currencies outside the U.S.

There's one over there. Do you have to convert it to Fiat to do that?

We will have to provide stablecoins in non-U.S. dollars. So it will just be a different smart contract and a different treasury method.

Yes, you launched crypto trading this morning. You're charging 100 basis point flat fee buy and sell, if I'm correct, I think what it says. Right now, across the spectrum, we're seeing the cost ranges from 5 basis points to 4%. So first off, do you think being at 100 basis points, is a relative advantage? Or do you think that's less of a factor of drawing interactions versus, say, a coin base that's charging 200 basis points.

No. I mean we want to make it cheaper, faster and safer for people to do anything with us. So we'll be competitive on price. That's an initial point of view. We'll see how things go. If we can lower it, we'll lower it. We like to say that there's only a few competitive advantages in life. Amazon and Walmart's competitive advantage, they are a low-cost operators. So they provide the best prices, best selection, best service. I believe we have the best unit economics, best lifetime value, so we can provide the best prices, the best services and the best selection. And so we'll compete our butts off to get that to be very competitive.

Just turn the volume up a little bit.

Just long-term, where do you think that is going? Are we going to -- it's going to follow the same long range as equities and...

It's really hard for me to predict where it's going, but I know this will be incredibly competitive and have the economics to be more competitive than other people to have a competitive advantage on price.

We are out of time. Thank you so much, Anthony. Appreciate it.

Thank you.

Good morning or good afternoon. My name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q3 2025 Earnings Conference Call. [Operator Instructions].

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Third Quarter 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the third quarter of 2025 versus the third quarter of 2024.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage in strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. We had an excellent third quarter. Our one-stop-shop strategy is firing on all cylinders as we continue to deliver exceptional financial performance while also investing in our business to drive durable growth and strong returns over the long term. In fact, our focus on product innovation and brand building has never been stronger. There's more happening at SoFi today than at any other time in my 8 years with the company. We are stepping on the gas to accelerate the investment in our existing businesses and entering new areas like crypto and blockchain, AI, SoFi Pay, providing [ Fiat ] and crypto banking services and so much more. I'll discuss some of these efforts momentarily. But first, let me cover our key results for the quarter.

Starting with the drivers of our durable growth. We added a record 905,000 new members in Q3, increasing total members by 35% year-over-year, a slight acceleration to 12.6 million SoFi members. We also added a record 1.4 million new products, also representing an acceleration of growth to 36% year-over-year and over 18.6 million products. Cross-buy reached its highest level since 2022, with 40% of new products opened by existing SoFi members. Our cross-buy rate has increased in each of the past 4 quarters demonstrating the effectiveness of our one-stop-shop strategy. Our strong member and product growth powered our revenue growth in the third quarter. Adjusted net revenue was a record at $950 million, up 38% year-over-year.

Together, our Financial Services and Technology Platform segments generated revenue of $534 million, which is up 57% year-over-year and now represents 56% of total revenue. This is the first time these segments have generated more than $0.5 billion of quarterly revenue.

In our Lending segment, adjusted net revenue grew 23% year-over-year to $481 million, driven by strong originations in this segment of $6.6 billion, up 23% from the prior year. Combined with a very strong $3.4 billion of originations in the loan platform business, total originations reached a record of $9.9 billion for the third quarter. This is an increase of $1.2 billion from our prior record.

I'm also proud to report that total fee-based revenue across our business was also a quarterly record at $409 million, up 50% from the prior year, driven by strong performance from our loan platform business, origination fees, referral fees, interchange revenue and brokerage fee revenue.

On an annualized basis, we're now generating over $1.6 billion of fee-based revenue, reflecting the deliberate diversification of our business towards more capital-light revenue streams.

In addition to delivering durable growth, we delivered strong returns and profitability. In the third quarter, adjusted EBITDA was a record at $277 million, up nearly 50% year-over-year. Our adjusted EBITDA margin for the quarter was 29%. Our incremental EBITDA margin was 35% as we continue to balance reinvesting in the business to deliver long-term growth and delivering profitability. Net income for the quarter was $139 million at a margin of 14%. Earnings per share were $0.11. Finally, our tangible book value ended the quarter at $7.2 billion, which includes the benefit from a successful opportunistic capital raise during the quarter. Over the past 2 years, we have more than doubled our tangible book value.

Our diversified business is uniquely built to deliver a winning combination of growth and returns. One way to measure this success is the rule of 40 calculation, which is revenue growth plus EBITDA margin. We've beaten the rule of 40 benchmark every quarter since going public. That's 17 straight quarters. Over that time, our average rule of 40 score is 58, making us a top performer among fintechs and technology companies more broadly. And this quarter, we hit 67%. Despite these exceptionally strong results, I know that we are just getting started. The addressable markets across each of our products are massive in the United States, let alone in addition to international markets.

In 2026 and beyond, we will uniquely start to benefit from both of the technology super cycles in AI and blockchain where almost every other industry only benefits from one. And with nearly 13 million members, the unmatched capabilities of our technology and the business scale of $38 billion in annualized revenue and a $45 billion balance sheet, we have a rock solid foundation to build on. Given these dynamics, I've never been more optimistic about our prospects than I am today. This is why we are further accelerating our level of investment to make our existing products even better by providing the best speed, selection and experience to build new products to help our members get their money right and to further strengthen our trusted brand name.

Our investments will power our durable growth and drive stronger returns as we continue to scale. Let me now spend a moment discussing our brand building efforts, which are key to driving new members to SoFi and create a halo effect across our entire offering.

During the third quarter, we launched an exciting new partnership with the NFL's most valuable player, Josh Allen, to promote the most valuable product in financial services, SoFi Plus. Our partnership with Josh is resonating with NFL fans, driving a 35% increase in unaided brand awareness among that target audience. Along with our broader marketing efforts, we drove unaided brand awareness to an all-time high of 9.1% during the quarter, up from last quarter's record of 8.5% and more than 4x higher than it was when we went public.

Turning now to our product innovation. Last quarter, I spoke about how we are an unprecedented point in time with 2 technology super cycles taking place in crypto, blockchain and AI. These super cycles have the power to completely reinvent the future of financial services, and we have moved fast to take advantage of these opportunities. I'm pleased to report that this week, we launched our first payment product that leverages blockchain technology to provide fast, seamless, low cost and safe international payments with the launch of SoFi Pay. SoFi Pay gives members the ability to seamlessly send money in local [indiscernible] abroad by leveraging a layer 2 blockchain network and delivering local fiat into the account of the recipient. It's fully automated in the SoFi app at [indiscernible] faster speeds and lower costs compared to traditional services.

Members will first be able to send money to Mexico with planned stage rollouts in Europe and South America in the near future. The SoFi Pay wallet will over time integrate SoFi USD stable coin that we hope to launch in 2026. We also have plans to offer the SoFi Pay app natively in the international markets for foreign citizens to send money to the U.S. and many other international markets. This is another addition to our unprecedented money movement offering, which allows members to seamlessly send money through person-to-person payments with a phone number, e-mail address as well as Zelle, ACH, self-serve wires and now the ability to send money International with SoFi Pay.

I am also excited to share that this quarter, we'll be launching -- actually relaunching the ability to buy, sell and hold crypto assets, which will give members access to dozens of tokens directly in our SoFi app. Beyond offering the best selection, we will also be providing the best speed and convenience. Members can instantly fund buying cryptocurrencies from their FDIC-insured SoFi Money account, all within the integrated SoFi app.

Members will also have the ability to transfer the crypto assets to SoFi and benefit from our broad range of products that are seamlessly integrated with our SoFi North American bank. And because many of our members may be new to crypto investing, we will support them with the best content to help them understand crypto investing and provide them with a peace of mind that comes from working with a regulated bank.

But this is just the beginning of our ambitious crypto and blockchain product road map that will continue to come to life in 2026. I could not be more excited about the product road map and the multitude of use cases we have for our planned stablecoin, SoFi USD and our ability to differentiate a stable coin, like no other company, given our unique bank license, technology capabilities, portfolio products and technology platform services.

Turning now to the other super cycle AI. We continue to test and implement a number of AI applications across our business. Behind the scenes, AI technology has been key to streamlining our operations to better serve our members. This has included using AI higher-quality engagement and giving our frontline member service team AI-driven tools to more quickly identify and resolve member issues.

AI is also now being used to directly support members. Our AI support chat is helping members resolve questions in an efficient way, driving a noticeable impact on member satisfaction. It's currently integrated with our money and card products and will be rolled out across the entire SoFi platform this quarter. We have also launched the AI-driven Cash Coach to qualifying members. Here's how it works. From the home screen, members see a button saying cash to optimize. By tapping that button, the Cash Coach will look across both their SoFi and external accounts to see where cash utilization is suboptimal and provide them with personalized financial suggestions.

For example, if a member is earning just 2 lousy basis points of interest on deposits with a big bank, it may suggest moving that cash to a SoFi account earning 3.8%. Paying down a big bank credit card balance from a big bank that has a 25% interest rate. Cash Coach is just the beginning. Next year, we will launch a more comprehensive SoFi Coach that incorporates insights across all areas of financial activity, not just cash, which will be able to help members understand how to spend less than they make and invest the rest right, breaking down what they must do, what they should do and what they can do every day across their entire financial lives.

For example, they could ask the SoFi Coach questions like, how has my credit score changed? How can I reduce my cost of debt? How much do I spend on subscriptions? How diversified is my portfolio? How is my investment compared to others of my age. Over time, SoFi Coach will be able to do even more like provide investment and lending options to choose from, helps set up and track goals and simplify processes like canceling subscriptions and optimizing reward points. We are so excited about how this AI-driven tool will help engage members and help them spend less than they make so they can invest the rest. Ultimately, SoFi Coach will supercharge our financial services productivity loop and lead to a deeper relationship that drives a higher lifetime value.

Turning now to product innovation within our segments, starting with the Financial Services segment and the loan platform business. LPB has been a game changer for SoFi, diversifying our lending activity in a capital-light, low-risk way. It's a prime example of how we can leverage our unique tech customer acquisition and operations capabilities to build a differentiated platform at scale. During the third quarter, we originated $3.4 billion of loans through our loan platform business, an increase of over $900 million from just last quarter. On an annualized basis, after just 1 year, this business is now running at a pace of over $13 billion of originations and $660 million of high-margin, high-return fee-based revenue.

Importantly, we continue to increase the loan platform business near-term volume that is outside of our traditional credit box effectively monetizing more of the roughly $100 billion of loan applications that we were not able to meet each year. Looking ahead, the opportunity for this business remain significant and demand from our partners continues to increase. Recently, as some concerns have emerged within the private credit markets, we've actually seen our LPB partners lean in to do more with SoFi, not less, reflecting a flight to quality and durability through interest rate and economic cycles. We have worked hard over the last 8 years to develop unique skills in underwriting, marketing, pricing, insights and data. And as such, we are benefiting from this flight to quality.

Turning to invest. Earlier this month, we launched Level 1 options, which has been consistently a requested feature by our members. Options are another way we are providing access to our members that they otherwise wouldn't have so they can build portfolios that align with their financial goals. As part of this rollout, we also provide educational resources explaining how options work, the risks involved and how to integrate them responsibly into a diversified investment strategy. Beyond options, we're also expanding our unmatched selection in the third quarter by providing access to IPOs like [ StubHub, Carna and Figma ] and by launching the SoFi AgenticAI ETF.

During the quarter, we also improved our features to make our invest products more intuitive and engaging. For example, we launched 24/7 instant transfers between invest and money, and we launched embedded rollovers and an enhanced rollover tracker given members full visibility and control over their 401(k) rollover process. In the fourth quarter, we'll be making a number of additional enhancements. We are very excited about the progress made to build an investment platform that provides our members with way more options than what they would typically have access to.

Turning now to SoFi Money, which has been a core part of our financial services productivity loop. In 3 years after acquiring our banking license, we have 6.3 million products and $33 billion of deposits. Our attractive API is a compelling reason for members to make us their primary financial institution, but members also come to us for our best-in-class products and continued innovation. For example, we will soon be launching the SoFi smart card, a new card that brings together the best features to help our members spend, save and pay better. It will be part of our SoFi Plus offering, and it will serve as a platform for continuous innovation.

The card will offer 5% back on food, our highest interest rate on deposits, credit builder capabilities, borrowing capabilities and so much more. This is yet another way in which we are pushing the limits on what is possible with banking products.

Turning now to our Lending segment. Lending is the most tenured core capability of SoFi and is how our business got its start. Since that time, we have made significant progress strengthening both our member acquisition and our underwriting capabilities. For loans that we hold on our balance sheet, we focus exclusively on high prime and super prime borrowers with strong cash flow and FICO scores. In fact, the average FICO score of our personal loan borrower is 745, and our student loan borrower is 773, but we don't stop at credit scores. We use [indiscernible] underwriting techniques to assess each individual borrowers' cash flow and their ability to repay the loan. We are able to do this effectively at scale because of our innovative originations platform that leverages advanced technology and digitally-enabled processes. The result is excellent credit performance that continues today.

In fact, during the third quarter, we saw our net charge-off rates improved even as there has been moderate signs of stress showing up for some other companies. For both personal loans and student loans, net charge-offs were down more than 20 basis points in the third quarter.

We also have a strong track record of building great lending products that help our members create a better future. For example, our innovative personal loan product allows members to refinance observably expensive credit card debt held at other institutions to save their hard-earned money. No longer will overachievers be suckered into chasing rewards only to realize they are paying over 20% interest on unpaid principal balances while earning essentially no interest on that same bank's deposit account.

We've recently made this product even more attractive to our members by rolling out an interest-only period to raise awareness of the personal loan product and help ease the transition from making credit card payments to making personal loan payments. Similarly, in student lending, we have completely changed the game, becoming the preeminent company for refinancing student debt at more affordable rates. Our student loan refinance product can reduce some member's interest rate by a couple of hundred basis points, which will have a meaningful impact with a $40,000 loan balance. In fact, we estimate that we will save our members over $100 million in interest expense just on the student loans we refinanced during the third quarter. This is why we've made our product even more attractive by rolling out a feature that allows for the gradual step-up in payments to help members find their footing. We look forward to helping even more members refinance their student loans as interest rates come down in the future.

Turning now to Home Lending, where we are seeing very strong results. In the midst of the higher rate environment, we built and launched a home equity loan product to help members take advantage of their equity that has been built up in their homes particularly over the last few years. In the third quarter, just 1 year after launch, we originated over $350 million of home equity loans, helping us set a record of $945 million of originations for all of home lending. In fact, Q4 will likely be the first quarter where we generate more revenue from home loans than from student loan refinance, which was our first product and the largest product prior to COVID.

At the same time, we are preparing for lower rates to further accelerate our home loans business in 2026. We've not only strengthened our operations, but we have also enhanced our product to make them very attractive to estimated 3 million members who currently have mortgages elsewhere and to those who may be first-time homebuyers. We believe our offering will drive strong growth as the market opens up.

Turning to our Tech Platform segment. This business has been instrumental in our ability to innovate across the SoFi platform, and it's now allowing a broader range of companies to bring innovative programs that drive greater loyalty and engagement to their customers. In fact, today, we are incredibly excited to announce our newest partnership with one of the largest airlines in North America, Southwest Airlines to power their Rapid Rewards debit card, which combines the convenience of debit payments while earning points on everyday purchases. We have also signed on 2 major consumer brands, our largest set, which will be announced in due course.

These partnerships are a reflection of the strong and growing demand for our market-leading technology to power embedded financial products at scale for some of the most well-known brands around the world. As you can see, it was an eventful third quarter at SoFi. And we are as energized as ever as we wrap up the year and head into 2026.

With that, let me now turn the call over to Chris.

Thank you, Anthony. We've delivered another strong quarter as we continue to drive durable growth and strong returns on the way to delivering record revenue in our eighth consecutive profitable quarter. For the quarter, revenue grew 38% year-over-year to a record $950 million. Adjusted EBITDA was also a record at $277 million and a margin of 29%. Net income was $139 million at a margin of 14% and earnings per share was $0.11. Similar to the last 2 quarters, this included a small benefit related to a lower tax rate.

An important driver of our growth was the increased contribution from capital-light non-lending as well as fee-based revenue sources. Our nonlending businesses generated $534 million of revenue, up 57% year-over-year and we also generated record fee-based revenue across all segments of $409 million, up 50% year-over-year.

Turning now to our segment performance. In terms of financial services, for the third quarter, net revenue was $420 million, up 76% year-over-year. Contribution profit was $226 million, up nearly 2.3x from last year. Contribution margin was 54%, up from 42% last year. Net interest income for the segment was $204 million, up 32% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew nearly 2.6x to $216 million for the quarter, which equates to over $860 million in high-quality fee-based income on an annualized basis.

Importantly, improved monetization continues its strong contribution to revenue growth. Financial services revenue per product surpassed $100 for the first time, reaching a record $104 in the third quarter. That's up over 28% year-over-year, and we see continued upside as newer products mature. In Q3, our loan platform business generated $168 million in adjusted net revenue, up 29% from just last quarter. Of this, $165 million was driven by the $3.4 billion of personal loans originated on behalf of third parties as well as referrals. Additionally, LPB generated $3 million from servicing cash flows, which is recorded in our lending segment. The growth opportunity for this business continues to be very strong. Beyond our LPB revenue, we continue to see healthy growth in interchange, up 55% year-over-year, driven by close to $20 billion in total annualized spend in the quarter across money and credit card.

Shifting to our tech platform. For the third quarter, we delivered net revenue of $115 million, up 12% year-over-year. Contribution profit was $32 million at a contribution margin of 28%. Revenue growth was driven by continued monetization of existing clients, along with new deals signed in new client segments.

Turning now to our Lending segment. For the third quarter, adjusted net revenue was $481 million, up 23% from the same period last year. Contribution profit was $262 million with a 54% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 35% year-over-year to $428 million. During the quarter, we had record total loan originations of $9.9 billion up 57% year-over-year. Personal loan originations were a record at $7.5 billion, of which $3.4 billion was originated on behalf of third parties through LPB. In total, personal loan originations were up 53% year-over-year. Student loan originations were $1.5 billion, up 58% from the same period last year. And home loan originations were a record $945 million, a year-over-year increase of nearly 2x.

Capital markets activity was very strong in the third quarter. We sold and transferred through our loan platform business, a record $4.6 billion of personal, home and student loans. In terms of personal loans, we closed $175 million of sales in the whole loan form at a blended execution of 106.4%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise if we held on to the loans.

Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge-off, both from our improved recovery capabilities and by maintaining servicing.

In terms of home loan sales, we closed $585 million at a blended execution of 102.9%. And in terms of student loan sales, we closed $377 million at a blended execution of 105.9%. In addition to our loan sales, we executed a $466 million securitization of loans originated through our loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at industry-leading cost of funds levels with a weighted average spread of 98 basis points.

Turning to credit performance. The health of our consumer remains strong and our credit continues to improve. Our personal loan borrowers have a weighted average income of $157,000 and a weighted average FICO score of 745 while our student loan borrowers also have a weighted average income of $157,000 with a weighted average FICO score of 773.

For personal loans, the annualized charge-off rate declined by more than 20 basis points to 2.6% from 2.83% in the prior quarter. Had we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.2% versus 4.5% last quarter. The on-balance sheet 90-day delinquency rate was 43 basis points, consistent with the prior quarter. For student loans, the annualized charge-off rate also declined more than 20 basis points to 69 basis points from 94 basis points in the prior quarter. The on-balance sheet 90-day delinquency rate was 14 basis points, consistent with the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originated from Q4 2022 to Q4 2024 have net cumulative losses of 4.4% with 39% unpaid principal balance remaining. This is well below the 6.08% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve, widened by a more favorable 29 basis points after a widening improvement of 19 basis points in Q2. Additionally, looking at our Q1 2020 through Q2 2025 originations, [ 60% ] principal has already been paid down with 6.7% in net cumulative losses. Therefore, for life-of-loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This would be well above past levels, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the third quarter, our personal loans were marked at 105.7%, in line with the prior quarter. This was primarily a function of a lower benchmark rate, which was mostly offset by higher prepayments and a modest change to the weighted average coupon as well as a modest change to the annual default rate, which was driven by loan vintage seasoning, not changes to the individual loan loss assumptions.

At the end of the third quarter, our student loans were also marked at 105.7%, down 9 basis points from the prior quarter. This was a function of a modest decrease in the weighted average coupon, partially offset by a lower benchmark rate.

Turning to our balance sheet. In July, we raised $1.7 billion of new capital in the form of common equity. This opportunistic raise significantly increased our capital levels and allowed us to reduce our higher cost debt by $1.2 billion, making our balance sheet even stronger and giving us great flexibility to pursue growth opportunities. In the third quarter, including this new capital, total assets grew by $4.2 billion. This was driven by $2.7 billion of loan growth and approximately $1.2 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $3.7 billion.

On the liability side, total deposits grew by $3.4 billion to $32.9 billion primarily driven by growth in member deposits. Net interest margin was 5.84% for the quarter, down 2 basis points sequentially. This included a 7 basis point decrease in average yields as we saw a modest mix shift from personal loans to home and student loans and a 3 basis point increase in cost of funds, which was mostly offset by strong growth in interest-earning assets. We continue to expect healthy net interest margins above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we remain very well capitalized. Our total capital ratio of 20.2% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $1.9 billion sequentially to $7.2 billion, including the benefit from the new capital raised. Intangible book value per share at quarter end is $5.97, up from $4.08 a year ago, a 46% increase.

Let me now finish by providing our revised outlook for 2025. As we head into fourth quarter, for the full year 2025, we now expect to add approximately 3.5 million members, which represents approximately 34% year-over-year growth, above our prior guidance of 3 million members and 30% growth. We now expect adjusted net revenue of approximately $3.54 billion, above our prior guidance of $3.375 billion. This equates to year-over-year growth of approximately 36%, an increase from our prior guide of 30%. We now expect an adjusted EBITDA of approximately $1.035 billion, above our prior guidance of $960 million. This represents a 29% margin.

We now expect adjusted net income of approximately $455 million, above our prior guidance of $370 million. And adjusted EPS of approximately $0.37 above our prior guidance of $0.31. This equates to fourth quarter adjusted EPS of approximately $0.12, which assumes a Q4 tax rate of approximately 10%. We now expect growth in tangible book value of approximately $2.5 billion for the year, above our prior guidance of around $640 million.

We've had a great year thus far and look forward to a strong finish. Let's now begin the Q&A.

[Operator Instructions] Our first question comes from the line of Dan Dolev at Mizuho.

Chris, Anthony, amazing job. Very, very proud of you guys. Wanted to know, I mean, the question we're getting from investors for the past like month or so is consumer credit. I mean you guys have done incredibly well looking at NCOs coming down. But can you give us an overview of what's going on, maybe there's a FICO sort of differentiated thing here that helps sulfide just maybe an overall view of like how the health of the consumer credit across the different FICO trenches would be great. And congrats again.

Sure. Thank you, Dan. The first message is our credit is performing very well. We have very strong performance by our members across each of the products, not just the performance of credit, but the spending that we see in SoFi Money. The engagement that we see in SoFi Invest and general behavior overall. We've been in the lending business for a pretty long period of time. When I joined in 2018, one of our key priorities is focused on quality of our loans over quantity and to make sure that those loans are durable through an economic cycle and through an interest rate cycle and any liquidity dislocations.

And so we're constantly making changes to what marketing channels we're in. The trade-up between pricing and credit approvals, the unit economics of a loan, we focus on having a 40% to 50% variable profit margin on our loans and so sometimes we can drive more volume. Sometimes we can drive higher margin. But it's a constant data science opportunity for us to perfect our loans. And the strength of the [indiscernible] speaks for itself, it's in the numbers. You can see our net charge-offs declined i.e., improved versus last quarter.

If you go back over the last couple of years, you'll see that we made a lot of credit changes to ensure that performance stayed high quality when we went through a 500 basis point interest increase and now we're seeing rates come down. So we're seeing really strong trends in the channels and great demand from high-quality borrowers. And we feel really confident if anything changes, we'll make the adjustments accordingly.

To remind everyone, we focus on a life loan loss between 7% and 8%, and all indications are that we're below that, as Chris has mentioned in the past.

Yes. And the only other thing I would add to Anthony's point is that we're also seeing really good demand from capital markets partners, which we view as a flight to quality. So all in all, we remain vigilant as always, but our balance sheet is strong with high-quality loans, excess capital and solid liquidity, and our partners are active and looking to expand their relationships with us, and that's a true testament to the credit that we're underwriting.

The next question comes from John Hecht from Jefferies.

Congratulations on a good quarter. I guess my question is predominantly around the rate environment -- decreasing rates if you think about the forward curve. I'm wondering if you guys could talk about how the lower rate environment will affect the volume mix on the lending side? And particularly at what point do you think that could be a pretty big spike in student loan refinance activity?

And then second, unrelated is maybe talk about what you guys expect in terms of deposit beta and what that means for NIM over the next few quarters?

Thank you, John. We've said this in the past, our business is diverse, not because we woke up and said we should make our business diverse because of our strategy of being a one-stop shop. We've scaled our businesses across the portfolio of products that we offer being a one-stop-shop to a level that in environments, we can drive different businesses based on the characteristics of that environment. When rates were high, we took a specific strategy. As rates are coming down, we're taking alternative strategy and it's working. If rates stay exactly where they are, I think our business continues to operate incredibly well. I couldn't be more optimistic about our near-term trends and what we'll do in 2026 relative to our prior long-term guidance.

So I do worry about things like credit. I do worry about things like heightened inflation. We look at asset flows, et cetera, et cetera. So it's not like we're not worried about things. We just feel really good about the positive things versus the things that could cause a problem.

As rates come down, I think our business only gets better. If we stay with unemployment below 5% to 5.5% and inflation is at 3%, I think we're in a really great environment. I'm not a student of believing inflation should be 2%. I think 3% is perfectly fine. I think we have global stability that will also be important. I think about things that could disrupt us as, one, economic, i.e., unemployment; two, financial liquidity. Rates are coming down, not going up. And then 3 is the macroeconomic factors that are at our control and exogeous events. As rates go down, our student loan business will benefit meaningfully. Rates have been very high for the last 3 years. Federal student rates are high, and we can give them a significant savings on a $70,000 balance. So we'll benefit from lower rates in student loan refinancing for sure.

The home equity market, the home loan market, the real estate market more broadly, will benefit from lower rates, both in refinancing as well as purchase. As it relates to refinancing, less than 5% of our members that have mortgages have been with us. So if you take everyone that's on our platform that's using SoFi and you look at the number of those people that have home loans or mortgages, only 5% of those with mortgages are with us. It's a huge opportunity for us to market a lower cost of a mortgage to them. And we have the technology to know where the rates are to deliver personalized messages to them, and we've built the back end and operational capabilities to deliver reliable mortgage in a specific period of time. So we feel really great about that.

As it relates to SoFi Money, I've said this in the past, I'll say it again, it's starting to show itself now. In a high-rate environment, nonbanks can compete with us on interest rate. Many choose not to because they're trying to make more money with NIM, but it's easy when rates are high when Fed funds are high. When Fed funds is low, it's going to be really hard for nonbank and nonlending companies to compete with us. Our competitive advantage will come through and show the world that we have the highest lifetime value in a broad based portfolio of products allows us to give a superior yield when others are struggling to provide that yield because of the fact that we have both lending and we're insured deposit institution, and we have a broad-based membership that we can market to efficiently for cross-buy. In the most recent quarter, 40% of our product growth came from cross-buy, that's with our members growing 35%. Chris, would you add anything?

Yes. The only other thing I would add, John, to your comments on deposit betas and NIM over the next few quarters. There's been really successful in maintaining healthy NIM margins. This last quarter, we were at 5.84%. Maintaining these strong margins has been a function of the loan pricing betas that we have as well as obviously, our cost of funds. What we've demonstrated on the loan pricing beta front is in rising rate environments, we've been able to outpace rates and maintain really strong pricing. In down rate environments, we've been able to maintain solid pricing above where rates have gone. And then from an asset yield perspective, we've been able to maintain strong asset yields and reduce our overall cost of deposits, all while maintaining healthy growth in member deposits last quarter. Historically, we've been at about a 65% to 70% deposit beta. We would expect that to continue going forward.

The next question comes from Kyle Joseph from Stephens.

I just wanted to get your thoughts on the competitive environment. Obviously, we saw your guidance for membership growth go up, which is obviously a positive. Is that a function of just kind of internal marketing efforts and brand awareness? Or can we step back and think about things potentially getting less competitive out there? I think you talked about capital providers and the flight to quality you're seeing. So I just want to get your commentary there?

It's a function of many factors, first, unaided brand awareness. Our goal is to drive unaided brand awareness higher. It provides productivity across our digital marketing capabilities and performance marketing. And so we talked about the 9.1% unaided burn awareness that we achieved in Q3 that we expect to continue into Q4. We have a number of new product launches that will also contribute that will not just contribute directly because they're new products, but they'll also contribute indirectly after raising awareness that we're a one-stop shop.

Specifically, our goal is to launch buy sell and hold crypto by the end of the year. We'll continue to roll out SoFi Pay to other international markets. And so the second bucket is new products. And then the third, we have a pretty good understanding of what channels to market what product is in and have a good read on customer acquisition costs by channel. And so we're just ensuring that we continue to add more marketing at an efficient rate, focused on profitability and growth, and it's our confidence in being able to do that in a bigger way in Q4 than we did in Q3 in addition to the new product launches that we'll have, and the benefit from a brand awareness. So that's driving our confidence.

I will tell you our goal is to continue to move along a linear curve to make sure that we're not falling off that efficient frontier of marketing and brand awareness and spending. But there's a lot of upside from spending at efficient rates if we chose to grow even faster.

The next question comes from Andrew Jeffrey of William Blair.

Anthony, as you see faster growth in the non personal loans business, which I think is really encouraging from a diversification standpoint, does that change your thought on how you fund that growth on balance sheet deposit driven versus the loan platform business? And are there opportunities in the loan platform business for nonpersonal loans? Just trying to think about what the funding mix looks like as the origination mix shifts a little bit?

Sure. There are definitely opportunities in the loan platform business from nonpersonal loans, and Chris and the capital markets team is working on that. Funding off of deposits is definitely an element that drives our durability and our confidence in lending. The dependency on deposits will likely reduce over time and our cost of funds will also likely come down over time based on a bunch of decisions that we make as it relates to how to spend our capital.

I do think you'll continue to see us drive revenue streams that are not connected to capital. 56% of our revenue is now coming from our tech platform and financial services business, and that's up pretty meaningfully over time. And you can see the benefit to our profitability line and our ROE and our tangible book value growth related to that. So there's a number of initiatives that we have, that we haven't talked about publicly that will also help as we leverage blockchain technologies in the lending space specifically that will help drive strong diversification of funding for our balance sheet.

Next question comes from Kyle Peterson at Needham & Company.

Nice results. I wanted to drill down in the loan platform business, in particular. I know there's at least another fintech lender that kind of recently said that at least some of the loan -- buyers and such on -- from institutional investors, we're kind of consolidating purchases to kind of fewer platforms. I guess was the strength this quarter was it broad-based in terms of you guys adding participants on the platform, on the funding side? Or was it fairly concentrated with existing partners? Just any color there? And if you guys are seeing anything similar would be really helpful?

Yes. Thanks, Kyle. So we saw growth across both new partners as well as existing partners who have partnerships with us. What we actually saw is a bit of a flight to quality where existing partners -- a number of existing partners came to us and asked to upsize their commitments, not only in Q3 but Q4. So we expect continued momentum to occur in the last quarter of the year. And then we also saw some growth in new partners as well as expanded credit. So net-net, it was growth across the board.

The next question comes from Reggie Smith at JPMorgan.

Great quarter. I guess I had a follow-up on the loan platform business as well. Is there a way to kind of frame the number of buyers on the platform and kind of what your mixed full quarter capacity looks like? And then also talk about the process, I think you mentioned [indiscernible] about how companies upsize their commitment?

At the end, Reggie, but I think you asked about the process for how companies upsize their commitments. In terms of your first question about the number of buyers on the platform and what the next quarter's capacity looks like, we aren't going to disclose the number of buyers that we have. We have disclosed a few publicly with Fortress and Blue Owl, but we have a number of partners on the platform. What capacity looks like next quarter, we did $3.4 billion of originations on behalf of others this past quarter in Q3. We expect that to continue to grow heading into Q4.

In terms of how companies upsize their commitments they typically come to us intra-quarter if they have excess capacity or demand for incremental loans. And if we're able to fulfill by the end of the quarter, we'll do so.

The behavior we're seeing of consolidation down to higher quality that you mentioned, we think we're benefiting from that based on the activity we've seen from those partners.

The next question comes from Peter Christiansen from Citigroup.

Nice trends here for sure. Anthony, I was just wondering, can you remind us where we are in your investment cycle, perhaps not just like the marketing or performance marketing, branding, those sorts of things, but maybe more so on capabilities. I know you're going to be onboarding some new clients on the tech platform pretty soon and now building out crypto, whether that's partnered or native. Just if you could frame for us where we are in the investment cycle.

Yes. I would like to invest a lot more than we're investing, but we're trying to balance both growth and being responsible for delivering profitability and good returns. We don't want to go after penny less growth. And so the gating factor that we've put on and talked about publicly is to have at least a 30% incremental EBITDA margin. And I say the word at least because if the business does well relative to expectations, it's hard to spend back in a quarter. We may accelerate some hiring, but that really doesn't impact the near-term quarter. It impacts the next quarter. And we've hired a lot more people in 2025 than we set out at the beginning of the year because we've been driving both strong top line growth and really strong incremental profitability.

I would love to spend every dollar we cut down to that 30% incremental EBITDA margin. It's not always possible to do that. That 30% incremental EBITDA margin will be the standard until we see our growth drop below, call it, 15%. I think as long as we're growing above that, we should invest in the business to make the top line as large as it can be. And then over time, we can slow down our spending and drive margin expansion, but we're definitely not in the mode of driving margin expansion unless we outperform compared to the 30% incremental EBITDA margin. The areas we're investing is we'll continue to iterate our existing products. We're focused every day on 5 things of our existing products, fast, selection, content and convenience and then make them better together.

There are some products that are new that will increase the investment in such as SoFi Plus. We're really pleased with the progress we've made there. There will be additional things that we add into SoFi Plus as it relates to value, one of which is the smart card. We think it's the best of any card. It will have high rewards, 5% on food. They'll also have high interest or highest API. In addition to that, you can also build your credit score and you'll be able to use that relationship with us to potentially borrow both ahead of time and post transactions. And that will be an evolving feature set after we launched that will continue based on how we learn our members want to use the product, but focusing on the smart things that they want, and making it half the best of everything.

We talked about Cash Coach on the call. There's a number of AI initiatives to help people spend less than they make and invest the rest. It is a unique formula that we can deliver on in addition to the investing piece. One of the things that's interesting about our buy, sell and hold for crypto is that the way we'll launch this product is going to be pretty novel. Someone will open up the SoFi Money account. If they don't have a SoFi Money account, they'll fund that SoFi Money account and then all their purchases are drawn from that SoFi Money account. What's the benefit of that? Well, that SoFi Money account has FDIC insurance. and we've added additional insurance for our members if they opt in, up to $2 million, not just $250,000.

So Someone can have an FDIC insured bank account where they keep their funds and seamlessly be able to buy cryptocurrency and the money moves from 1 entity to the next seamlessly behind the scenes. A very efficient process that I think will be very differentiated, and we'll be the first bank to offer buy, sell and hold crypto. We've mentioned stable coin on the call. I can just tell you, every day, there's a new opportunity for us to leverage the SoFi USD stable coin that we'll plan to launch. And we have some unique advantages that we're already a Tier 1 bank.

What do I mean by that? Because we are a Tier 1 insurer deposit institution, we could take the reserves of our stable point and put them at the Fed and earned Fed funds. What does that mean? Zero credit risk, zero liquidity risk. There's not a stable coin provider in the United States that can make that claim. Very differentiated, super excited about it, and there's a number of other applications there. You can imagine that Fed funds that we earn on those reserves, they can be given back to the consumer. They can be given to businesses to accept our payment at point of sale, and it can provide a lot of different benefits to other ecosystem partners because them to want to partner with us as opposed to a non-Tier 1 nationally licensed brand.

So we're going to invest as much as we can to that 30% incremental EBITDA margin and sustain high levels of growth until it slows down and then will drive profitability.

The next question comes from Moshe Orenbuch from TD Securities.

Maybe a little bit about the competitive dynamic in the personal loan business. I saw one of your close competitors got acquired by a large bank. Do you think -- first, do you think that makes the business kind of a better competitive dynamic if that happens? Or maybe just talk about that a little bit? And if you could also just address. You talked about becoming more capital light. How much of that do you think comes out of the personal loan business in terms of doing less for your balance sheet or proportionately more in the loan platform side?

In terms of competition for PL, I'd say it's generally been a competitive environment. But from entities that are not large national banks are the top 10 banks in our country, they just don't offer this product. I think there's a lot of reasons for why they don't offer this product. It's a gap in their portfolio that allows us to really gain, I think, more members at efficient costs. I think the reason why they probably don't offer their product is because they [indiscernible] people so about on credit cards, and it's such a great ROE product that they don't want to cannibalize the credit card.

The way you make money in the credit card business is to revolving balances. Well, credit cards average in the United States over 20% interest on those revolving balances. If you actually had a prime member or super prime member, and told them they're going to charge 20%. They wouldn't sign up for that any day. But if you put that behind a fancy name of the card and all these benefits and high rewards, no one sees the high interest rate that they get. And they chase those reward points. I'm thinking they're getting some benefits from it. Then they end up with a balance that they can't pay off after 1 month. And then they said they'll do it after 2 months. And before you know, it's been 6 months. They now have a $10,000, $15,000 balance, they're paying 20% to 30% interest on it.

Would you refinance them with a personal loan at 12%? Probably not. So I think this is a product that we're going to own from a leadership standpoint. We'll continue to fight away at these huge balances where people are paying over 20% interest when they can come to us and pay 12%, again, prime and super prime customers.

And then what I would say on your point about being capital light and how much of it comes out of the PL business, what I would say is total personal loan originations were up 53% this past quarter -- year-over-year and 7% sequentially to a record of $7.5 billion. So we don't see much in terms of overall cannibalization given our current market share, which is about 15% of total unsecured loans. Out there within our credit box and that doesn't even scratch the surface of all of the outstanding credit card debt, as Anthony mentioned.

So, we're seeing really good momentum on the LTV side, and we're adding loans to the balance sheet at a pace that we are comfortable and happy with. This past quarter, we added about $2.7 billion of personal loans -- to the balance sheet, which is a good healthy [indiscernible] for us.

Our final question today comes from Devin Ryan, Citizens Financial Group.

I want to come back to the student loan opportunity. Obviously, you talked about kind of the outlook moving into a better place there with the rate environment. Can you talk a little bit about how you see some of the actions of this administration driving kind of a better environment, whether it's the big beautiful bill. And then a few weeks ago, there was obviously headlines around the government exploring, selling some of its $1.7 trillion in balances, which would seem pretty interesting for you guys. So love to get some thoughts on that. I'm not sure if you can speak to it directly, but just more broadly, if you can, just what you think that means for the market and kind of the direction of travel?

Yes. I think it's all very positive for SoFi. I think we benefit from all of those decisions as they get made. We look at assets from time to time that are for sale. If the government decides to sell their student loan portfolio, we'll absolutely dig into it. It'd be a great customer acquisition tool not to mention the fact that we can make a significant profit on that portfolio of assets.

As it relates to potentially reducing the amount, someone can borrow in order to go to college or grad school or business school or medical school or a law school, we'll be there to fill the hole. We want to help our members achieve the financial independence so they can live their ambitions. Paying for college, paying for a home is absolutely a critical decision they make. And we have to be there for all those major decisions they make. So we'll absolutely be there if they need a solution that the federal government is not providing. And that will also be a great business. Our in-school business for loans is a very profitable business that's very attractive and doing more of that would be even better than the student loan refinancing.

At higher rates, it's backed by credit of another person and people really do want to pay back the benefit that they receive from getting a college education. So that would also be an opportunity.

I would say more broadly, as we think about our educational system and think about the changing needs from a technology standpoint, AI, there may be new types of loans that we could get into from a [indiscernible] perspective that's outside of a 4-year type of experience that's more suited for the professional environment new graduates will enter into. So I think we'll actually see some innovation because of what the government is doing and because of the impact technology is having on hiring undergrounds.

As you can see, it was an eventful quarter at SoFi and we are energized as we wrap up 2025 and headed 2026, today's results reflect the durability of the foundation our team has been tirelessly building over the last 8 years. It was not clear before today. I think it's safe to say that our results demonstrate that we truly have become a one-stop shop for your financial needs all in 1 digital platform. Many others have talked about achieving this strategy, but to date, no one else has come close to the breadth of products or complexity of operations that we have, not to mention the revenue scale we have, the profitability we're generating and the durability and broad diversification of revenue across our portfolio of products.

This success positions us the best to benefit from the 2 tech super cycle unfolding and the continued strong sector transition globally from traditional finance companies to fintech companies.

Suffice it to say, I'm more confident than ever that our strategy and our execution will continue to deliver our sustainable competitive advantage with the highest lifetime value and we'll accelerate our investment to ensure we maintain our lead. Along the way, we will remain guided by the SoFi Way. We are all operating as founders, problem solvers and partners to bring the best products and services to our members so we can have a meaningful impact on their lives, and lead them to a better, more secure financial feature. By acting in the best interest of our members, we will build deeper relationships across our one-stop shop platform that will lead to durable growth and strong returns for our shareholders for decades to come.

Thank you for joining our call, and we look forward to talking to you next quarter.

This concludes today's conference call. You may now disconnect.

All right. We are going to kick off. Next up, we have SoFi CEO, Anthony Noto. Anthony, thank you for joining us today. It's nice to be here with fellow Goldman alum and CEO of what has been a very disruptive fintech in the market. So thank you for joining us.

Thank you for having me.

All right. Let's kick it off. I mean, you have had a very impressive first half of the year. You significantly increased originations through your loan platform business. You've also been beginning to reintroduce your crypto platform. You've rolled out some stablecoin-based product initiatives around remittances and the core personal loan product in the lending segment is also growing very well. You completed a very significant capital raise in recent months. As you look out at the business, like what are your main strategic priorities from here over the next 12 to 18 months?

Sure. We're executing the same strategy that we laid out when I joined the company almost 8 years ago in 2018. Same mission, same strategy to be a one-stop shop for all your financial services needs. We want to help people reach the point that they have enough money to do what they want, that could be the career they want, the size family they want, where they live when they retire, et cetera. In order to get to that point, we have to help them with all of their financial decisions, all the big decisions and all the days in between. So we talk about internally and have been for the last 8 years about helping people spend better, save better, invest better and protect better. And we use those verbs purposely because the traditional constructs of financial services products aren't what we're solving for. We're solving for helping people spend less than they make, invest the rest, and so we have to be there for all the days that they're spending money and all the big decisions that they make.

I couldn't be prouder to the fact that for the last 16 quarters we've delivered durable growth through 2 drivers: innovation and brand building. We have to be a trusted household brand name, and we have a world-class team in helping us build that. But we also have to help people save less than they make and invest the rest. And for the last 16 quarters, we've been able to deliver greater than a Rule of 40 for each individual quarter.

If you look at each year since 2023, we've actually had over a Rule of 40 or Rule of 50. And so there's a couple of ways of driving it. First and foremost is we want to drive member growth of at least 30% and product growth of at least 30%. The monetization follows from there.

In terms of specific areas of investment, we've announced a couple that we're really excited about. The first is SoFi Pay. The ability to use a product to pay anybody anywhere in the world is our long-term goal. It will start off with being able to send U.S. dollars to foreign countries through Bitcoin network and then into [ Fiat ] on the back end. Over time, we'll add to that SoFi stablecoin that will be part of SoFi Pay in many other parts of our business. In addition to that, we're rebuilding, as you mentioned, buy, sell and hold in cryptocurrency, and we're super excited about bringing that to our -- back to our members, which we had to get out of a couple of years ago.

We did a survey 50% of our members would invest in cryptocurrencies if we offer them. More importantly, more than 60% of the people that we surveyed that were also nonmembers, want to do it with a licensed national bank, which, of course, we have. AI is another big area of investment, and that's already showing us really good cost savings on the operational side, but also the second order effects of the rate of growth that we have, account takeovers, AML resolution, dispute resolution and fraud capabilities. So AI is not just about driving growth and helping our members get their money right through things like cash coach, but also reducing our costs so we can reinvest in better prices, better interest rates, for our members.

In addition to that, we launched SoFi Plus in January of 2025. And it's proven to be what we were really hoping for, a product that helps our members do more with us. And so it's a subscription product where we're giving them premium services and 90% of our new SoFi Plus members are existing members and 75% of them are taking out another product after they open SoFi Plus. So last night, we launched a new campaign with Josh Allen. Josh is the quarterback for the Buffalo Bills. He was the most valuable player in the National Football League last year. He helped us launch the campaign that SoFi Plus is the most valuable financial subscription product that you could have. So lots of areas of investment as it relates to the consumer side. We're also investing meaningfully in the tech platform side to drive that business and drive new adoption from new partners.

Got it. That makes sense. Maybe we'll just get the obligatory macro question out of the way. There's been a lot of focus on the health of the consumer, some of the recent job postings. Interest rates have come down, general market expectation is a rate cut this month. How are you thinking about the health of the consumer based on what you have seen year-to-date? And how do you think about the outlook?

We're seeing really strong consistent demand that's helped us drive the growth that we've been achieving last quarter. We had 44% revenue growth, 29% margins, really strong. Our outlook was very positive, and we've seen those trends continue in terms of the demand from the consumer. Credit is also performing well, and so we've seen no change there. Within the SoFi Money business, spending trends have been very positive, and we've seen really good activity on assets under management as it relates to our invest business. So I've seen no changes coming out of our guidance before and feel confident in the outlook we have.

It's probably the most optimistic I've been in my 8 years at the company in terms of the growth of our current businesses and what they can produce and then layer on top of that, the initiatives that I mentioned that would be incremental over the next couple of years.

Yes. That makes sense. You mentioned a lot of the work that you've done on the brand side. You've invested a lot on the brand over time. It's more of a household name than some of the more niche players in the industry that are focused just more on pure-play lending. Where do you hope to position SoFi in the consumer's mind relative to some of the incumbent banking providers out there?

Sure. We want to build a lifetime relationship with our members. We call them members for a reason. We want to offer them all the products they need to get their money right and solve for that equation of spending less than they make and invest in the rest. So we have to have all those products. And we're the only company that I'm aware of digitally that offers 4 different types of loans in home loans, home equity loans, student loans, student loan refinancing, unsecured personal loans, offers and invest products. Even some of the larger competitors in the Invest business are not offering single stocks without commissions, fractional shares which we pioneered. SoFi ETFs uniquely built for our investor base for diversified investing, dollar cost averaging, robo accounts for those people that want to invest and have to think about how they're allocating their capital, IPOs, alternative assets and even private offerings, and we'll continue to add to that equation as well.

So we're going after people with household income of $100,000 or more. People that have done well academically, have done well successfully, and they're not getting all the products and services from the big banks. One example I'd like to point out is our unsecured personal loan. It's starting to get a lot more attention from the investment community. It's been a great product for us. Why does that product exists? Well, my theory is that the reason why that product is not offered to people with 100,000 household income or higher as opposed to just the high net wealth individuals, is banks would much rather have that person using their credit card, and running up a revolving balance that pays a 25% interest rate. It's a complete crime to be offering that product to that person. And so our personal is uniquely benefiting from the banking industry, really taking advantage of their members.

Try to get a home loan from your bank. You name the big bank, top 5 banks in the country, again, got to be a high net wealth individual to get access to that product. Otherwise, you're going to a mortgage lender only. We offer mortgages, not because we can make a lot of money because it's an important economic decision that people will make, probably the largest economic decision we'll make and the greatest emotional decision to make. We have to be there for all of those needs, and we don't want to be in a position where we can't offer a product that someone needs so they go to somebody else.

And so, I mean the company got to start with a lot more of these more lending-oriented relationships. The concentration in lending has come down over time. As you think about deepening relationships over time, like how do you measure the growth in what I'll kind of broadly call primary customer relationships? How do you measure it? What do you think are the products that can get SoFi top of mind kind of more frequently than the occasional loan product?

Over the last 2 years, our SoFi Money account has been a great driver of primary relationships. I think we offer 1 of the best accounts, the best of checking and savings in one. SoFi Money, you can get 3.8% interest if you do direct deposit with us, no fees, 2-day early paycheck, free certified financial planner at your -- whenever you need to set up an appointment for them, you set it up in the app, they call you right when you have that appointment. In addition to that, you can pay any way that you want. I think we're the only product where you can pay via Zelle because we're a bank. You can pay via phone number, you can pay via an e-mail address and you can also pay with self-serve wires and we'll continue to add to that, including a stablecoin by SoFi. And -- so we think we complete out that entire value proposition relative to other people. 90% of our deposits from direct deposit customers because we build that account to serve all their needs. Well, you need to do that in order to become a primary relationship.

We'll offer a product sometime in the future that actually is even better than SoFi Money, that's another version of that, that adds even more value on top of what we're already doing with SoFi Money. So we're excited about that product. SoFi really is also proven to be a really good product and that people can connect all their accounts to 1 place at SoFi, all their credit cards, even if they're not SoFi credit cards, all their bank accounts, all their investment accounts. And they can see in 1 place everything they're spending, all of their income coming in, how their investments are doing. And that enablement allows us to build something like cash coach that looks across your entire financial picture, tells you how much cash you have everywhere and then gives you options and where you can allocate that cash. Sometimes it's paying off a credit card that has a revolving balance. Sometimes it's putting into an interest rate product like our SoFi savings account or investing in something like our robo accounts.

No, that makes sense. On the loan platform side, a new business over the last year or so, and you've invested a lot to get it to where it is. You've been growing really significantly over the last couple of quarters. I guess, can you talk a little bit about the customer experience when they go through this channel versus a regular SoFi customer? And maybe talk a little bit about how this platform kind of broadens out the addressable market of consumers.

Sure. For those that are not familiar, the loan platform business is when we build a relationship with someone that wants us to produce loans for them within a certain credit criteria, we get paid a fee for our origination platform, our marketing platform or servicing platform et cetera, all of which we built for our own business. At first, that business was really about volume in our credit box that was above and beyond what we would like to do from a risk perspective to allow us to serve more members. We do the servicing. They're a SoFi member, but that loan is somebody else's, and we simply get paid a fee for that. This most recent quarter, for the first time, we started doing some loans outside our credit box. Now those are loans that we wouldn't have otherwise underwritten that they've contractually taken at the point of origination, we have paid a fee for that. So it's capital-light, low risk, but it helps us reach more members and satisfy their needs and then build a relationship with them with other products and services.

I think we're just scratching the surface and the opportunity. What we found is the more money that we spend to build awareness of the personal loan product, the more demand we would get. And at some point, that demand was more than we would want to put on our balance sheet itself. And so this other business allowed us to continue to tap into that demand. I really think we've hit a sort of a new vein of growth and that we're finding people that do have credit card debt beyond 30 days, they may be carrying it for 45 days or for 4 months or so they get their next bonus. While it's not that they're paying 25% interest on that balance with us, they can refinance at 12% or 13% that could term out as long as they want. There's no prepayment penalties. If rates go down, they could refinance, if they want to pay it off in 2 months, even though it's 2 years, they could do that as well. It's a great product.

And so having these loan platform buyers allows us to keep building into that marketplace. I think we've just scratched the surface on what we can do. That's within our credit box. Outside our credit box, we declined more than $100 billion of loan applicants a year. And so now we're turning some of that into revenue and new relationships.

And maybe you can talk about that a little bit, just the opportunity to expand the SoFi customer base to borrowers that didn't historically meet the credit box on the way in the front door. What is your ability to market? Is the product set tailor made for that type of consumer?

One of the things we did back in 2018 when I joined was -- 1 of our top priorities was to improve the quality of our loans. And I think we've built a world-class underwriting engine and technology capability. But along with that, is also world-class marketing capabilities. It is really hard to find people that don't necessarily need money, but you could lower their cost of debt. So someone that may have $15,000 of credit card debt that they know they can pay off whenever they want to, but for whatever reason, they're keeping a revolving balance until the next thing happens. Well, that person is really hard to find because they're actually looking to refinance their debt. They can make the payments they need to make until they pay it off. So you have to find the right marketing channels. It's actually counterintuitive. The channels that have the highest customer acquisition costs are actually the best performing loans. And if you have the lowest customer acquisition costs are the worst performing loans. And so we've developed that marketing expertise to find the right people with the right profile. And so they've been coming all along, but we've declined them. Now we're able to actually satisfy some of their needs and gives us better efficiency in our marketing dollars, and we get paid for it.

No, I mean, that seems like a big opportunity to move into -- I mean, it is a less competitive part of the market. It's a place where a lot of the incumbent banks don't focus. How do you think about the monetization opportunity in the loan platform business kind of vis-a-vis the normal credit box? It sounds like it would be more revenue rich and more customer rich?

Yes. It's capital light. It's high revenue. It allows us to reinvest in the business. And then for that member, we want them to sign it for a certified financial planner. We want them to switch the SoFi Money account to switch to a SoFi investor account. If we can help them improve their credit score, lower their cost of debt, spend less than they make and starting -- getting them investing sooner, they'll get to their goals faster. You can't save your way to your financial goals. You have to invest. It's just not that possible to scale your savings just by getting 3% or 4% interest.

I guess what are you watching from the customers that come in through that channel for kind of ancillary product adoption.

Just like with the rest of our business, we want to answer 3 questions for them every day by using technology, having things like rely and having multiple products gives us intel to what they're doing with their money. So we want to use AI and other technologies to answer 3 questions for them proactively a day. What must you do in your financial life to stay, what could you do and what should you do? And those 3 questions. You can answer once you have a primary relationship with them.

Makes sense. I wanted to hit on the capital raise over the last month. You did a capital raise right after earnings. Could you talk about just why you raised capital? I think the guidance around balance sheet strategy has been for like single-digit growth in the balance sheet. So how do you view this capital? Is there any change in the balance sheet strategy? Is it for M&A? Is it opportunistic? Just how do you think about uses of proceeds?

Yes. It was a completely opportunistic decision. We have some debt that's high cost that we could refinance. In addition to that, there's some small M&A that we could do. 2 areas we're investing aggressively in are cryptocurrency and blockchain as well as AI. For the first time in the 8 years that I've been at SoFi, the venture capital community, the growth equity community is actually investing in second order effects of the growth of our business and fintech generally. If we scale deposits to almost $30 billion the way we've had over the last 8 years, scale our member base to close to 12 million members at the end of last quarter and driving a significant amount of spending, you also drive up fraud, you drive up account takeovers, you drive up disputes. And so what technologies can be deployed to bring those costs down. While there's a ton of AI companies that are being built just for those second order effects before we were the only ones investing in those.

Now the entire investment community is doing that, and it gives us a great opportunity to maybe buy 1 or 2 of these small companies, put them into our tech platform business and then bring that to the masses in terms of all the other fintech companies and financial institutions. So this capital could allow us to do that as well. And having more capital for changing decisions down the road is also valuable. In terms of balance sheet, no changes in our balance sheet strategy whatsoever.

That's very clear. I was hoping you could talk about just the funding environment in general. The growth of loan platform is in part kind of helped by the growth of private credit industry, the amount of interest that there has been a kind of deploying capital into consumer assets. So I was wondering if you could talk a little about -- talk a little bit about SoFi's access to funding in the loan platform business. How do you think about the sustainability of the funding? And how do you think about where we are in kind of the overall funding cycle?

The first thing I'd say is we're -- we want to build durable revenue streams. We don't want flashes in the pan. We're picking partners that we know are able to sustain their asset management business that have the capital to continue to invest in this over time. And similarly, it took us this long to get to the point. We think you count on us delivering a great credit product time and time again. We've been doing it for 8 years. We've gone through 2 interest rate cycles. We've gone through a recession. We've gone through COVID. Our credit is well proven, and our underwriting capabilities are well proven. So that was an important step to get to.

But also the scale that we can produce really matters, being able to produce $2 billion for a partner a year, $5 billion for another partner, that really matters. So our partners were picking. We're making sure they're durable partners that they have a sustained business over many decades, and it will continue into the future. It's been a great relationship, and we've had people renew their deals and it remains really positive.

Very good. You've mentioned crypto several times throughout this presentation. So I wanted to pivot to some of the new products that you have outside of lending. SoFi had to step away from the crypto space for regulatory reasons several years ago, you're reintroducing it now. Where are you in that journey today? You mentioned M&A could be an accelerant to that process. So how are you evaluating what needs to get done kind of internally and externally for that product to go live?

So for the last 16 quarters in the last 4 years, we've been able to deliver consistent Rule of 40 or higher in the low 50s to 60. This year will be 60 in addition to 2023, that was 62 and the mid-50s between those. That's before we've even gotten to considering the growth opportunity of crypto or AI. To me, there are both technology super cycles that we uniquely benefit from. Most companies, most sectors aren't benefiting from both of those super cycles the way that we are.

And within crypto, there's a number of things that we'll do. But I would say, broadly, we're approaching it that it affects every part of our business, payment capabilities, lending capabilities, investing capabilities, tech platform capabilities. So the first thing that we'll launch before the end of the year is buy, sell or hold in crypto, which we used to have. In addition to that, we're working really hard on a stablecoin strategy. And it's actually complementary to the buy, sell and hold strategy as well as our payments in our tech platform business.

As we build out buy, sell and hold crypto, we're interacting with marketplaces, with custody and clearing firms, settlement firms, et cetera. Those crypto centric companies, they don't deal in Fiat. They are going to -- and we are going to transmit economic value between us, the SoFi stablecoin. At first, we may use another stablecoin, but when we launch SoFi stablecoin, that will be the means of economic value transfer, which is faster, cheaper and more secure than the systems they have today in the traditional investing world. In addition to that, we think SoFi stablecoin will play a role in SoFi Pay. So we announced the ability to send Fiat dollars through the Bitcoin network into Fiat dollars internationally. SoFi stablecoin will provide that ability as well.

SoFi stablecoin will also be an ability to use SoFi Pay to pay at retail and to motivate merchants to accept SoFi stablecoin because they don't have to pay interchange. And we may even be able to give them an economic incentive to accept SoFi stablecoin. Why? We have a bank. When we bring in and we develop SoFi stablecoin, and we have a dollar for dollar back stablecoin, we could deposit that in our Fed banking account, earn 4% that we can give away to all the participants to take our product versus someone else. Similarly, SoFi stablecoin will be used when we start tokenizing loans as the means of transferring payment. In addition to that, bring it to our tech platform partners where we have over 100 million accounts and convincing them to use that as a lower cost faster and safer way to transmit payments.

And I guess outside of the kind of the crypto ecosystems and the partners that you'll be working with, how do you think about driving adoption and kind of bringing some of these crypto solutions to other players in the ecosystem that haven't -- that are not as crypto forward to SoFi?

So 1 of the areas that has become more evident to us as an opportunity ties into our tech platform and having a bank. So we have a small, small, medium business today where we do lead generation for providers of SMB services like checking accounts, savings accounts and loans. A member comes, SoFi consumer member comes, applies for a loan, applies for a chain account, we give that qualified lead to a partner. We think there's an opportunity in what I would call corporate banking or business banking, going to the large e-commerce companies, so large online retailers and offering them Fiat and crypto banking services. Today, no 1 is offering at 1 bank Fiat and crypto banking services. And SoFi will endeavor to do that. It will take us a while to build it out, but there's a large unmet need from big consumer companies that are going to have to operate in both of these worlds. And in addition to that, there are crypto-centric companies that are in great need of having banking services for their companies, private companies like Paxos and Pitco and Talos and you name all the other companies, some of which have recently gone public. We want to offer them banking services in both Fiat and crypto. They don't want to operate in Fiat solely. And clearly, operating just in crypto is not realistic. And so that's another area that we'll be able to tap into. I also left out providing lending in a secured way backed by crypto assets.

Yes. That makes a lot of sense. You also mentioned tokenizing loans. Can you talk about some of the financial services plumbing. What is the problem that you're trying to solve? I think people have a good sense for the cost and the natural costs that you're trying to avoid in payments -- in a payments context, but could you help articulate the benefit of tokenizing real-world assets and financial assets like you're talking about.

Sure. We want to use our technology platform to tokenize any asset, but the first asset that they should tokenize is our loans. Why is that the case? Our loans provide a great ROA. I wish I could buy them myself. Obviously, there's a conflict of interest. I can't. But if I was a retail investor, I still couldn't buy the SoFi loans. It's not at the nominations that I could buy. There's a qualified investor profile, et cetera, et cetera. So how do we take those loans and make them available in other loans at $1 at a time or $2 at a time. We've seen the impact of tokenization of other assets as in the case of bitcoin and cryptocurrency. So this is a longer-term vision over time to be able to offer these assets that have not been accessible to retail investors, just like we're offering IPOs and alternative asset classes like private equity and private credit and private real estate and venture capital. So that's why we would tokenize the loans in addition to making a more liquid market for other buyers of our loans that are institutional investors.

Yes, makes sense. Just on the traditional investing side, you've highlighted already the -- how advanced the platform is in terms of offering kind of alternative asset classes to retail investors, 1 of the hardest asset classes to get access to -- for most retail investors. What are the key initiatives in the traditional -- in the SoFi Invest platform today that you are most focused on? And how do you think about kind of driving the brokerage platform to be higher top of mind for consumers and customers at SoFi?

Yes. We are attracting a very different investor than some of the competitive set in the fintech world. We're making investors. We're creating investors by helping them balance their budgets. They spend less than they make and invest the rest. And that's a very unique proposition. If you don't start investing during your 30s or 40s, there is no way you're going to make up for a lost 10 years of compounding from investing in your 20s. So getting them to invest $1 or $2 at a time makes a difference, and they get up the learning curve pretty quickly.

One of the products that we haven't had in SoFi Invest that we've been working on and that we'll have by the end of the year as Level 1 options. Now you may say, why do you not have Level 1 options? Well, we haven't had it because our investors really -- it wasn't a product that was great for them. Well, 8 years later, they really want that product, and it's 1 that we've been building and we'll be able to bring to them. But we're not going to spend a lot of time on those, what I'd say, more corner cases of investing assets and investing capability. We're going to stick to more than mainstream asset classes along the way. Today, we do provide certified financial planners that can help them with their investing, and we could specialize that even further over time.

The biggest opportunity we have for SoFi Invest is just awareness, making people aware that we're offering IPOs. We have 3 this week. We had 2 last week, making people aware that we have alternative asset classes that they typically haven't had access to, but now they do through interval funds. We offer KKR and Franklin Templeton and Arc Investments and a number of others that we just announced. And so that education process -- when you have as many products as we have, getting these things to the forefront are hard to do and using technology is a way to get there.

On the robo product, I mean, what kind of competitive advantage is having all these alternative asset classes. I mean, I've used them. I don't think there's much of an alternative allocation in those products that seems like a competitive advantage versus almost every other retail robo-adviser.

Yes. So our Robo-Advisor products are more driven by style of investing, aggressive, moderate and conservative as opposed to a specific asset class per se, then we execute that strategy for them as an automated process. The alternative asset classes, you can find them in our app, these are products that were typically only available to high net wealth individuals, just like IPOs, but offering IPOs at IPO prices is unique and getting access to some of these world-class alternative investors is really differentiated. And it helps bring investors to the table and see what else we have. And they realize, oh, there are 1 stop shop just for investing. I don't need to have 4 different investing accounts. I could do it all with SoFi. The big hole up till now is cryptocurrency, which hopefully will solve by the end of the year. I shouldn't say hopefully, we will have by the end of the year.

Well, maybe from there, we can talk about other product initiatives within the organization beyond crypto, stablecoins and remittances, what other products could we see SoFi launch over time?

You could see us be more aggressive on the offensive side of AI. Today, we just finished the POC on account takeover where we saw in the POC. It may not translate to the full deployment, a 60% improvement in account takeover resolution. We're right now testing with dispute resolution. AML/BSA is another area that's an opportunity. We've also launched with Sierra as a partner in our chat app on SoFi Money, solving problems with AI, which has shown really strong improvement in containment rates as opposed to abandonment rates. That's all on the cost side, but it also builds trust and it builds confidence in people and their ability to solve problems in real time.

I mentioned before, we want to answer 3 questions for you every day must, should and could do. And cash coach is 1 example of that, but you can imagine us launching an expense that looks at all your expenses and does benchmarking versus others, your age, your income, your demographic and making suggestions view of how you get your expenses down. But in addition to that, we think there's a real opportunity to change the nature of how we deliver content to you today, the content in the app and most financial services company apps is all in words. There's no videos. There's no tutorials, there's no interaction. AI can help us translate these suggestions, these opportunities to you in a video format as if you're walking into a branch. And so I think there's a huge opportunity to create that level of interaction at the next stage to give people confidence in making these decisions.

No, that makes sense. Just switching gears to the tech platform business that kind of dovetails nicely. You've been talking about the constructive conversations you're having for the platform. You've got a pipeline of clients going live in 2026. What's sort of the latest on the outlook for that business?

Yes. No change. The opportunity set is still large, knocking it down and getting the deals done is still the work to be done. I think crypto activity is a new opportunity in AI is also a new opportunity. Some of that will be organic, some of that will be M&A. But the deals that we announced for next year in January were important wins for us, and we just recently launched 1 of those, and we have work to do on those. So that business has been, I think, through a couple of cycles, the winter of higher interest rates really caused banks -- financial institutions to pull back from technology spending. You now have crypto investments that people are making in AI investments. Those are new opportunities. And so we're continuing to build strong relationships and be there for when they're making decisions. But the most important element in that business is getting the third parties or counterparties or partners to make decisions on the investments they're going to make. And we need to see that come back in addition to building new products in crypto and AI that I mentioned.

So maybe to tie together the AI theme with the tech platform. We talked a lot about Agentic commerce in the industry. I know it's early days. It's hard to know where exactly things are headed, but you can imagine more demand for something like the tech platform from AI companies and people who want to drive card issuance for Agentic commerce purposes. What are the conversations like in your industry that you're having? And how do you see about that as an opportunity for SoFi?

I think those are conversations that are on the come for large financial institutions. I think they're more relevant for companies that have embedded finance that don't have the expertise. And there's different segments of the market. You have government, you have B2B, you have consumer embedded finance, you have big financial institutions. I think these conversations are actually more relevant for mid-market and small market banks and credit unions that can't afford to invest in crypto that can't afford to invest in AI and the other nonfinancial companies that are not even in this business.

Yes, makes sense. I want to hit on the regulatory environment. One of the major things of this new administration has been a deregulatory focus across numerous industries, including financial services. Could you just talk about kind of before and after how things have changed in your day to day from a regulatory perspective?

I think the environment obviously has changed. There's more decisiveness. There is clear path to getting to where you want to go. One of the things I think that's underappreciated by the market, most likely because we haven't said much about it is, we actually ended up with having the best possible license to operate in all these new areas. So when we first got our OCC banking license and got a bank holding company license from the Fed, it was not allowable to have cryptocurrency inside a bank, couldn't operate with stablecoins, bitcoin, buy, sell and hold, et cetera. It was viewed as potentially being permissible outside of the bank and the bank holding company, but even that got turned down as we saw and we had to exit that business. Today, you can actually do buy, sell and hold and stablecoins inside a bank. Well, guess who has a bank? SoFi. So the OCCs interpretive letters that came out in April were a windfall for us. We don't -- there's no license for us to go get. We actually have the best license.

You'll see a bunch of crypto companies or crypto centric companies that offer stablecoins or that often buy, sell and hold apply for OCC licenses and they'll apply for nondepository insured trust, that will limit what they can do. It will not limit what we can do. We haven insured deposits as an OCC license bank. So it is a huge advantage. That's a benefit that we have in not only launching the businesses ourselves, but when we go and market our tech platform capabilities to consumer companies and nonfinancial institutions, we could say to them, this is going to be part of our bank as a service and will be under that regulatory regime or will be part of the bank holding company under the Fed regime. So the regulatory environment providing that clarity actually gives us a competitive advantage given the licenses that we have.

And just in terms of the amount of time you're speaking to or thinking about the regulatory apparatus that SoFi deals with on a day-to-day basis. I mean just the intensity of the oversight or the focus that the regulators have. Have you noticed a change there?

What I'd say is this, there's nothing that the regulatory examiners or the regulatory framework requires that we wouldn't be doing already. All of the requirements under our bank license and bank holding license are meant to serve 1 thing, safety and soundness of our institution for our members. And we're aligned with that interest. The amount of time we spend on it is the amount of time it takes to be the best at it, and that's our focus. We can have more exams or less exams. The standard is still the same. We have to have a bank that people trust. We have to have a place when they need to spend their money, they could spend their money. When they need to speak to somebody, they could speak to somebody. When they need a transaction, then that transaction is going to happen. We have to be a household brand name that they trust more than their best friend, their closest relative. And that requires more than what the regulatory environment is. It's a commitment and a culture to that, and we've built it. It's a huge moat that's around us, and that will serve us well over time.

Very good. Well, I think with that, we're just about out of time. But thanks so much for having the conversation with me. Thanks for attending the conference this year.

Thank you.

Good morning or good afternoon all, and welcome to the SoFi Technologies Q2 2025 Earnings Conference Call. [Operator Instructions]

Thank you. And with that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Second Quarter 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can [ see ] the presentation accompanying our earnings release in the Investor Relations section of our website. Unless otherwise stated, we'll be referring to the adjusted results for the second quarter of 2025 versus the second quarter of 2024.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month.

Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. We had an excellent second quarter as we continue to drive durable growth and strong returns through our relentless focus on product innovation and brand building. Our one-stop shop strategy is stronger than ever, further accelerating our year-over-year growth in adjusted net revenue to 44%, the highest growth rate in over 2 years, and driving a 5.6x year-over-year increase in earnings.

I'll begin by covering our key results for the quarter, starting with our durable growth, which continues to be driven by the growth of members and products. We added a record 850,000 new members in Q2, increasing total members by 34% year-over-year to 11.7 million SoFi members. We also added a record 1.3 million new products, representing 34% year-over-year growth to over 7 million products. Cross-buy remained strong in the second quarter, with 35% of new products opened by existing SoFi members. We have proven once again that our strategy is successful in driving new members to SoFi and getting existing members to do more with us.

Our strong member and product growth powered our revenue growth in the second quarter. Adjusted net revenue was a record of $858 million, up 44% year-over-year. Together, our Financial Services and Technology Platform segments generated $472 million of revenue, up 74% year-over-year and now representing 55% of total revenue. In our Lending segment, adjusted net revenue grew 32% year-over-year to $447 million driven by strong originations in the segment of $6.3 billion, up 18% from the prior year.

Combined with the very strong $2.4 billion of originations in the Loan Platform Business, total originations reached a record of $8.8 billion for the second quarter. This is an increase of $1.5 billion from just last quarter. Total fee-based revenue across our business was also a quarterly record of $378 million, up 72% from the prior year. This was driven by strong performance from our Loan Platform Business, origination fees, referral fees, interchange revenue and brokerage fee revenue. On an annualized basis, we are now generating over $1.5 billion of fee-based revenue, reflecting the deliberate diversification of our business towards more capital-light revenue streams.

In addition to delivering durable growth, we delivered strong returns and profitability. In the second quarter, all three segments delivered record contribution profit at attractive margins. Adjusted EBITDA for the quarter was a record of $249 million, up 81% year-over-year. Our adjusted EBITDA margin for the quarter was 29%. Our incremental EBITDA margin was 43% as we continue to balance reinvesting in the business to drive long-term growth and profitability.

Net income for the quarter was $97 million at a margin of 11%. Earnings per share were $0.08. Finally, our tangible book value ended the quarter at $5.3 billion, a year-over-year increase of over $1 billion and a quarter-over-quarter increase of nearly $200 million. This strong financial performance is driven by our consistent, disciplined investment across our diverse portfolio of businesses focused on building a trusted brand name, continuously enhancing existing products and developing new products to help our members get their money right.

As the only one-stop shop for digital financial services, our investments can drive greater long-term growth because we have more ways to attract members to our platform and more ways to grow with them once they're here. Let me give an example of how this works. A member may come to us through SoFi Relay, a free product that analyze a member's finances and provides tangible options for how they can spend less than they earn so they can invest the rest. For perspective, it costs less than $15 to acquire a SoFi Relay member. Based on the ease of use and the quality of the insights, this member decides to move their checking and savings accounts from a big bank to our SoFi Money product.

To get our best APY, the member enrolls in direct deposit, instantly making them a SoFi Plus member with access to our best benefits, included unlimited access to financial planners, loan discounts, more rewards and unique experiences. This member instantly goes from earning just 2 basis points of interest at the big bank to earning 3.8% at SoFi. So on $10,000 of saving deposits, they earn about $380 in annual interest compared to just $2 at the big bank. With this extra cash in hand, the member opens a SoFi Invest account, taking advantage of the 1% match on recurring investment deposits paid in reward points, another benefit of their SoFi Plus membership.

Later, the same member sees a recommendation in their home feed to consolidate credit card debt where they are paying north of 20% interest into a SoFi personal loan at a rate in the low teens, resulting in more savings. The member puts the money they save on a lower cost loan in a SoFi Vault to save for a down payment on a home and take advantage of our home lending product. Every day, stories like this unfold as members turn to SoFi products for every major decision in their financial lives and every day in between. Along the way, we're creating lifelong relationships that deliver real financial value to our members and to our business.

Because these relationships often stem from just one initial product with one acquisition cost, we generate significantly more favorable unit economics. In the example above, we would generate a variable profit of about $1,800 on the personal loan before even considering the opportunity to grow the relationship with the home loan or other products. As we do more with each member, we drive a higher lifetime value, which is our sustainable competitive advantage, and allows us to continuously reinvest in our business to provide better products, lower interest rates on loans, higher rates on savings accounts, boost on recurring investments and even more free financial services and, in turn, driving the power of our virtuous cycle.

The concrete result of this virtuous cycle is superior compounded growth over the last 5 years including nearly 50% revenue growth, member growth of 58% and product growth of 60%. Despite the significant growth we have achieved to date, we are just getting started. The existing opportunity in front of us is massive, and the opportunity is growing through our own innovations to expand our addressable markets and by rapidly advancing technology. In fact, we are at an unprecedented point in time with two technology super cycles taking place. Crypto and blockchain as well as AI have the power to completely reinvent the future of financial services. As a tech forward digital one-stop shop, we are uniquely positioned to capture the opportunities presented.

Let me take a moment to discuss some of our recent investments in these areas as well as our ongoing investments in brand building and product innovation across our platform. Starting with crypto and blockchain. I am very excited that during the second quarter, we announced the first two of many planned crypto and blockchain innovations across our products and services.

First is self-serve international money transfers, which will allow SoFi Money members to seamlessly and securely transfer money to people in dozens of countries, whether it's to support family abroad or make purchases outside the U.S. or manage their money across borders. These transfers will be fully automated in the SoFi app at significantly faster speeds and lower costs compared to traditional services, putting more money in people's pockets faster. And these transfers can also be done by businesses.

Here's how it works. A member deposits funds in their SoFi Money account. Through to the SoFi app, they initiate a transfer by entering the recipient and the amount to send in U.S. dollars. Funds are automatically transmitted on a secure, well-known blockchain network and convert into local currency at the destination then rapidly deposited into the recipients account in the Fiat currency of choice.

This process is fast and easy. It can take under a minute and it will be done with full transparency with exchange rates and fees upfront, and it will be available 24/7 on the SoFi app. And you can imagine the day when the SoFi app is deployed internationally for payments coming from non-U.S. countries to the U.S. The ability to leverage blockchain technology to send money internationally is yet another enhancement of SoFi's unprecedented money movement offering.

The second crypto-related innovation is our return to crypto investing. We are excited to once again be able to provide members with the ability to buy, sell and hold a selection of cryptocurrencies like Bitcoin and Ethereum. In a recent survey of our members who invest in crypto, we found that 60% would prefer to work with a nationally licensed bank like SoFi over their current primary crypto exchange. This is another benefit of having a bank license and yet another way we are providing our members options to invest for their future.

We now offer members the ability to buy and sell single stocks without commissions or fees, our award-winning robo advisory products, SoFi-branded ETFs, IPOs and IPO prices, alternative investments including new private market funds from asset management firms including Cashmere, Fundrise and Liberty Street Advisors which we added this month and, soon, crypto. Both self-serve international money transfers and crypto investing are expected to launch later this year with more innovations to come. Crypto is a key area of focus for our management team and we have brought onboard significant expertise including substantial engineering talent to advance these new initiatives.

The cost, speed and security of paying, buying and spending are worse today than they will ever be in the future. Faster, safer and cheaper options will only get better and better every year. Over time, we see opportunities across our entire platform including offering stablecoins, providing members the ability to borrow against their crypto assets, expanding payment options and introducing new staking features as well as blockchain and digital asset infrastructure capabilities for other companies offered by our technology platform. Blockchain and crypto have the potential to be a game changer for SoFi and our members.

Turning now to AI. We're implementing and testing AI applications across our business from enhancing back-office processes like dispute resolution and filing suspicious activity reports to improving how we interact with our members to help them get their money right, and we have brought on teams of engineers to drive these efforts forward.

One specific member-facing application that I'm particularly excited about is Cash Coach. Cash Coach will be a part of our Relay product and will look across your cash held at SoFi and elsewhere and tell you how much you actually have, how little you might be earning at other institutions and how you can optimize your cash to drive a better return. Cash Coach is just the beginning. In the future, we plan to roll out coaches across our platform to help members understand what they must do, what they should do and what they can do across their financial lives every day.

Let me now shift to our brand-building efforts, which are key to establishing SoFi as a trusted household name. These investments increase the overall awareness of SoFi and have a halo effect that makes our performance marketing of each product more efficient. During the second quarter, we unveiled our first ever music partnership as the presenting partner of the Country Music Association's CMA Fest, the world's largest and longest-running country music festival.

Beyond the exposure of having our name appear everywhere the CMA Fest brand goes at the festival and on broadcast, we also offered exclusive perks to SoFi Plus members, enriching the value of our premium membership offering. We've also partnered with award-winning artist, Kelsea Ballerini, across our marketing channels to inspire others about the importance of reaching financial independence. Together, our marketing efforts drove unaided brand awareness to an all-time high this quarter, reaching 8.5%, up from 7% last quarter.

Turning now to product innovation within our segments, starting with the Financial Services segment and the Loan Platform Business, which is having a profound impact on our business overall. As a reminder, LPB leverages our customer acquisition, operations and service capabilities to originate customized loan portfolios on behalf of third parties. We typically move these loans through our balance sheet in a matter of days so they don't require additional capital and we do not retain any credit risk after transfer. With LPB, we collect a fee for each loan transferred, supporting our strong growth in fee-based revenue.

Prior to the second quarter, the vast majority of our LPB volume consisted of loans within our prime credit box but over and above the volume we want to put on our balance sheet. However, during the second quarter, we meaningfully increased the proportion of loans that are near prime with higher WACC, effectively monetizing more of the roughly $100 billion of loan applications that we are not able to meet each year. This expansion, along with the large agreements that were previously announced, helped drive record LPB origination volume of $2.4 billion, an increase of 57% from just last quarter.

On an annualized basis, after just 1 year, this business is running at a pace of over $9.5 billion of originations and over $0.5 billion of high-margin, high-return fee-based revenue. It is now bigger than our student loan refinancing business, our first business, and we see further upside still. We remain incredibly optimistic about the Loan Platform Business, which continues to move closer to becoming a $1 billion revenue business. As we look further down the road, we see the potential to tokenize SoFi loans to make them more widely available in liquid markets and increments of dollars rather than tens of thousands of dollars such that anyone can invest in loans just like they do equities.

Turning to our Tech Platform segment. This business has been instrumental in our ability to innovate across the SoFi platform. It allows us to more rapidly develop, test and roll out new products while also providing significant cost savings versus relying solely on third parties. For example, SoFi used the Tech Platform's Cyberbank Konecta, an AI-powered virtual personal banking assistant, to provide seamless support to members across digital channels and reduce operational costs. This adoption has led to a 65% faster average response times and cut our chat abandonment in half.

Tech Platform innovation is not only helping SoFi, but our clients overall. Banco Nación, one of Argentina's largest financial institutions, selected our Cyberbank Digital platform to modernize their digital banking infrastructure. The implementation which started with corporate banking has already resulted in a 25% increase in organic client growth and reduced inflammation time from months to just 4 business days. They've now positioned themselves to unify mobile and desktop banking systems for over 10 million consumer banking customers as well.

We also continue to make strong progress diversifying our client base beyond traditional financial service firms and fintechs. Earlier this year, Tech Platform launched a first-of-its-kind reward debit program with Wyndham Hotels & Resorts, and we've signed two additional travel and hospitality companies that are expected to launch before the end of this year. In total, we anticipate having approximately 10 new clients that contribute revenue in Q1 2026 that did not contribute revenue in Q1 2025.

Now turning to our Lending segment, where we had another fantastic quarter of originations. Despite this being our longest-standing business, we see significant growth opportunities across our loan types and are enhancing our product offering to capture them. For example, we are already leaders in the personal loan market with roughly 15% of the prime segment, However, we know that the top use of a personal loan is to refinance expensive credit card debt, which makes the real addressable market much larger.

Americans in the prime credit category have over $700 billion of outstanding credit card debt, which means that the true opportunity is a large multiple of the volume that we are currently originating. This is one reason why in the second quarter, we launched a new personal loan product for prime credit card customers that carry a revolving balance and are making mostly interest-only payments. While it's very early days, we are pleased with the interest in this product and to be generating awareness among members that SoFi can help them get their money right instead of being gouged by our competitors.

In student loan lending, we had another strong quarter with nearly $1 billion of originations, up 35% from a year ago. Given the evolving student lending landscape, in the second quarter, we launched a refinancing solution, which allows for lower payments in the early part of the loan and steps up into paying regular payments after this introductory period. This allows members to find their footing and build long-term savings, and it's another innovative way we are targeting the estimated $280 billion of student loans that can currently be refinanced at a more attractive rate.

With the elimination of the government's Grad PLUS program and the capping of the parent PLUS program, we see further opportunities for in-school lending and student loan refinance.

Turning to home lending. Total home loan originations reached nearly $800 million in the second quarter. This is an increase of more than 90% year-over-year despite the elevated rate environment. One key driver of this growth has been our home equity loan offering, a particularly attractive product in this high rate environment. In the second quarter, we had our best quarter of home equity originations surpassing last quarter's record. This product, which we didn't have a year ago, accounted for nearly 1/3 of our home lending volume.

As interest rates come down, we are planning for an acceleration in demand for both home purchase and refinance. To put the opportunity in perspective, we have nearly 3 million members with a home loan held at another institution, and we believe we are well positioned to capture a significant portion of the refinance volume as the rate environment improves.

Our success in the second quarter is a clear validation of our strategy and execution. And as you can see, we are just scratching the surface of the tremendous opportunities for growth that exist across each of our products and segments. Furthermore, the opportunities are growing driven by both our ability to expand our addressable markets through our innovation and the rapidly advancing technology, including blockchain and AI.

As the only digitally native one-stop shop for financial services, we are uniquely positioned to capture the increasing opportunities on our way to becoming a top 10 financial institution. I assure you that our team is working tirelessly to add even more value to members and to seize the opportunity in front of us.

With that, let me turn the call over to Chris.

Thank you, Anthony. It has been a strong start to the year as we continue to drive durable growth and strong returns. We exceeded each metric that we guided to on our last call on the way to delivering accelerating revenue growth in our seventh consecutive profitable quarter.

For the quarter, revenue accelerated and grew 44% year-over-year to a record $858 million. Adjusted EBITDA was also a record at $249 million and a margin of 29%. Net income was $97 million at a margin of 11% and earnings per share was $0.08. This included a small benefit of about $0.01 related to a lower-than-expected effective tax rate. An important driver of the acceleration of growth was the increased contribution from capital-light nonlending as well as fee-based revenue sources. Our nonlending businesses generated $472 million of revenue, up 74% year-over-year, and we also generated record fee-based revenue across all businesses of $378 million, up 72% year-over-year.

Turning now to our segment performance. In terms of Financial Services, for the second quarter, net revenue was $363 million, more than double that of Q2 2024. Contribution profit was $188 million, up nearly 3.4x from last year. And contribution margin was 52%, up from 31% last year. Net interest income for this segment was $193 million, up 39% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew nearly 4.6x to $169 million in the quarter, which equates to over $650 million in high-quality fee-based income on an annualized basis.

Importantly, improved monetization continues its strong contribution to revenue growth. Financial Services revenue per product increased from $64 in the second quarter of '24 to $98 in the second quarter of '25. That's up over 50%, and we see continued upside as newer products mature.

In Q2, our Loan Platform Business generated $131 million in adjusted net revenue, up 36% from just last quarter. Of this, $127 million was driven by the $2.4 billion of personal loans originated on behalf of third parties as well as referrals. Additionally, LPB generated $3 million from servicing cash flows, which is recorded in our Lending segment. The growth opportunity for this business continues to be very strong. In addition to our LPB revenue, we continue to see healthy growth in interchange, up 83% year-over-year, driven by close to $18 billion in total annualized spend in the quarter across money and credit card.

Shifting to our Tech Platform. For the second quarter, we delivered net revenue of $110 million, up 15% year-over-year. Contribution profit was $33 million at a contribution margin of 30%. Revenue growth was driven by continued monetization of existing clients along with new deals signed in new client segments.

Turning now to our Lending segment. For the second quarter, adjusted net revenue was $447 million, up 32% from the same period last year. Contribution profit was $245 million with a 55% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 33% year-over-year to $373 million. During the quarter, we had record total loan originations of $8.8 billion, up 64% year-over-year. Personal loan originations were a record at $7 billion, of which $2.4 billion was originated on behalf of third parties through LPB.

In total, personal loan originations were up 66% year-over-year. Student loan originations were $993 million, up 35% from the same period last year. And home loan originations were $799 million, a year-over-year increase of more than 90%.

Capital markets activity was very strong in the second quarter. We sold and transferred through our Loan Platform Business over $3.4 billion of personal and home loans. In terms of personal loans, we closed $201 million of sales in whole loan form at a blended execution of 105.8%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise had if we held onto the loans.

Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge off both from our improved recovery capabilities and by maintaining servicing. In terms of home loan sales, we closed $779 million at a blended execution of 102.2%.

In addition to our personal loan and home loan sales, we executed a $690 million securitization of loans originated through our LPB business, our second securitization of collateral originated through LPB. Importantly, this channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at an industry-leading cost of funds levels with a weighted average spread of 101 basis points.

Turning to credit performance. The health of our consumer remains strong and we're not seeing any signs of weakness. Our personal loan borrowers have a weighted average income of $161,000 and a weighted average FICO score of 743, while our student loan borrowers have a weighted average income of $136,000 with a weighted average FICO score of 768. Our credit trends continue to be strong after seeing delinquencies peak early last year.

For personal loans, the on-balance sheet 90-day delinquency rate was 42 basis points in the quarter, a decrease of 4 basis points sequentially. The annualized charge-off rate also declined to 2.83% versus 3.31% in the prior quarter. Had we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.5% versus 4.8% last quarter.

For student loans, the on-balance sheet 90-day delinquency rate was in line with last quarter at 13 basis points. The annualized charge-off rate for student loans increased 47 basis points to 94 basis points. This was primarily due to a few discrete items. First, we switched servicers for our student loans, which resulted in some charge-offs being delayed from Q1 to Q2 as well as some customer payment disruptions in the second quarter. Second, we purchased a portfolio of student loans at the end of Q1 that have had a higher charge-off rate in line with our expectations at the time of purchase and reflective of the price we paid for those assets. Excluding those items, normalized charge-offs across the first and second quarters would be approximately 64 basis points in Q1 and 68 basis points in Q2, in line with previous quarters, and we expect normalized levels going forward.

The data continues to support our 7% to 8% maximum LIFO loan loss assumption for personal loans, in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originated from Q4 2022 to Q3 2024 have net cumulative losses of 4.23% with 41% unpaid principal balance remaining. This is well below the 5.75% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance.

The gap between the newer cohort curve and the 2017 cohort curve widened by a more favorable 19 basis points after a widening improvement of 16 basis points in Q1. Additionally, looking at our Q1 2020 through Q1 2025 originations, 60% of principal has already been paid down with 6.7% in net cumulative losses. Therefore, for life of loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This would be well above past levels, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the second quarter, our personal loans were marked at 105.7%, up 28 basis points from the end of the prior quarter. This change was primarily a function of the discount rate decreasing by 20 basis points to 4.67% due to the underlying benchmark rate decrease by 25 basis points and spreads widening by 5 basis points.

As we've previously noted, both of these changes are empirical based on actual market data, not assumptions. Additionally, any fair value impacts that resulted from interest rate changes were offset nearly 1:1 by hedges. Additionally, the annual default rate decreased by 9 basis points and the conditional prepayment rate decreased by 8 basis points. Slightly offsetting these impacts was a 13 basis point decrease in the weighted average coupon.

At the end of the second quarter, our student loans were marked at 105.8%, up 61 basis points from the end of the prior quarter. This change was a function of the discount rate decreasing by 25 basis points to 3.97% driven by the underlying benchmark rate decreasing by 27 basis points, partially offset by 2 basis points of spread widening. Slightly offsetting this impact was a 35 basis point increase in the conditional prepayment rate and a 3 basis point decrease in the weighted average coupon. There was no material change to the annual default rate.

Turning to our balance sheet. In the second quarter, total assets grew by $3.4 billion, driven by $3.1 billion of loan growth and approximately $220 million of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $2.7 billion. On the liability side, total deposits grew by $2.3 billion to $29.5 billion, primarily driven by growth in member deposits.

Net interest margin was 5.86% for the quarter, down 15 basis points sequentially. This included a 24 basis point decrease in average yield as we saw a modest mix shift from personal loans to student loans, which was partially offset by an 11 basis point decrease in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we remain very well capitalized. Our total capital ratio of 14.4% at quarter end remains comfortably above the regulatory minimum of 10.5% as well as our additional internal stress buffer. The quarter-over-quarter change in capital was driven by the strong loan growth during the quarter.

Tangible book value grew $194 million sequentially to $5.3 billion. Intangible book value per share at quarter end is $4.72, up from $3.94 a year ago.

Let me now finish by providing our revised outlook for 2025. Given our strong first half of the year, for 2025, we now expect to add over 3 million members, which represents approximately 30% year-over-year growth. We now expect adjusted net revenue of approximately $3.375 billion, above our prior guidance of $3.235 billion to $3.310 billion. This equates to year-over-year growth of approximately 30%, an increase from our prior guide of 24% to 27%.

We now expect an adjusted EBITDA of approximately $960 million, above our prior guidance of $875 million to $895 million. This represents a 28% margin. We now expect adjusted net income of approximately $370 million, above our prior guidance of $320 million to $330 million; and adjusted EPS of approximately $0.31, above our prior guidance of $0.27 to $0.28. We now expect growth in tangible book value of approximately $640 million for the year, above our prior guidance of $585 million to $600 million.

Overall, it's been a strong first half of 2025 and we're looking forward to a great second half.

Let's now begin the Q&A.

[Operator Instructions] Our first question today comes from John Hecht from Jefferies.

Congratulations on another good quarter, guys. On just -- maybe a broad question about guidance. You've given full year guidance, but I'm wondering if there's anything you could share about the cadence from the third and the fourth quarter, maybe all the way to the segment level, if there's any changes there in terms of the contribution. And then you've given medium-term guidance. I'm wondering maybe you can give an update on that or your confidence around achieving that.

Yes. Thanks, John. So overall, we're really pleased to be able to raise our 2025 guidance. In terms of some of the segment-level specifics, for Financial Services, what we had previously guided to was 60% to 65% year-over-year growth. we're obviously pacing well above that and we expect that to continue in the back half of the year. For both Tech Platform and Lending, what we had originally guided to was low double-digit to teens year-over-year growth in 2025, and we remain confident in that. And then in aggregate, what you should expect is for Q4 to be higher than Q3 across all of our metrics, revenue, EBITDA, net income and EPS.

In terms of our medium-term guidance, what I would say is we feel really good about it. We continue to expect to exceed 25% compounded annual revenue growth from '23 to '26, and we really remain confident in delivering our EPS target of $0.55 to $0.80 in 2026. What I would say is that the mix of our business continues to change meaningfully and, as such, our outlook for each respective revenue segment is going to change. And we're going to update our outlook when we give our detailed 2026 guidance. But at a high level, our mix and growth expectations are changing given the real-time opportunities that have presented themselves, including faster-than-expected adoption of our LPB business. And what's even more significant than that is participation by LPB investors outside of our credit box.

In addition to that, some of the news that we got on the OCC that certain crypto activities are permissible, and the implications for large banks and their tech decisions based on recent regulatory climate both also impact our outlook. So suffice it to say, these opportunities and dynamics have changed our priorities and how we've allocated resources thus far in 2025 and how we're thinking about allocating resources in the second half of this year and into 2026. So overall, the mix and drivers are likely to change, but we remain even more confident in the aggregate outlook of 25% or more, of compounded annual revenue growth from '23 to '26 and EPS in the range of $0.55 to $0.80 in '26.

And John, I would just add, we feel great about the business. It's operating in all cylinders. The results show that our outlook shows that for 2025, I think our biggest challenge beyond 2025, quite frankly, is deciding what not to do. There are more opportunities on the table for us than ever before. It feels like we're just getting started, even though we've been at this for 8 years and delivering good, consistent growth over that time period. Our goal and prioritization will be to allocate resources to those segments and those businesses that can drive the best compounded growth over decades as opposed to just a couple of years with the overall goal of an ROE that's 20% to 30%.

So as Chris mentioned, there's a few things that turned out to be a lot bigger opportunity sooner than we thought, and we're going to allocate resources to those. We hope to be able to allocate research to everything, but that's unlikely, but feel great about the outlook.

The next question comes from Dan Dolev from Mizuho.

Anthony and Chris, so epic results here. Congrats on our end. Can we quickly discuss the Tech Platform and the Chime migration? That's been a topic that we've been getting a lot of questions on. So specifically, is the migration complete? And what is the impact on the overall accounts?

Sure. I can take that, Dan. So we don't give guidance on Tech Platform accounts. What we have guided to is low double digits to teens revenue growth for the Tech Platform in 2025. And as I just mentioned, that expectation has not changed up until this point. While migration is not complete, we have made really good progress on signing up new partners that are going to contribute in 2026.

And the exact give and take of those new partners coming on board and the loss of any existing partners will be firmed up by year-end, and we'll give a new update on guidance for all the in and outs after our Q4 2025 earnings call. We do anticipate, as we've mentioned previously, having approximately 10 new clients that are going to contribute revenue in Q1 2026 that did not contribute revenue in Q1 of 2025.

The next question comes from Andrew Jeffrey of William Blair.

Chris and/or Anthony, whoever wants to take it, can you talk a little bit about the anticipated funding mix going forward? This was a very strong origination quarter obviously across the board, and the Loan Platform Business is ramping really nicely. You also had excellent deposit growth. So I just wonder if you can help us a little bit, recognizing the very high like sort of basically infinite returns on capital from the platform business versus the balance sheet and sort of how you think you're going to use each going forward to sustain your growth.

Yes. Chris and I will tag team. The first thing I'd say is we really want to balance the different business lines to drive an optimized return on equity. We clearly are in a unique spot now on the origination platform where we're not just selling our technology capabilities and originations based on loans that are in our credit box but now outside our credit box for the first time. And that's a whole new frontier for us. And so the opportunity set there really is open-ended because it's capital light, and capital-light businesses, as you mentioned, drive better ROE.

That said, we want to make sure we serve our members well and don't just focus on the absolute percent -- sorry, the percentage of ROE but the absolute dollars as well. And having balance sheet at some of our loans for sale at a later point in time and generating the NIM is also contributing to our profitability and visibility both. So it's a balancing act on both. I'll turn it to Chris to talk about specific funding mix.

Yes. In terms of the specific funding mix, what I would say as it relates to deposits, right now we're about 85% to 90% deposit funded. That's our long-term target. So you could expect deposits to grow roughly in line with loan growth on the balance sheet. The one thing I would add -- and we continue to have ample warehouse capacity as well.

The one thing I would add to what Anthony was saying is we have opened up a new frontier by originating on behalf of others outside of our credit box. In an ideal world and going forward, the plan is to expand even beyond that and include other asset types like our student loan refinancing in school loans, mortgages, et cetera. So there's ample opportunity, a ton of headroom, and we won't be constrained by the overall growth in deposits.

Next question comes from Kyle Peterson from Needham &Co.

Nice results. Wanted to ask about in the Loan Platform Business, really impressive results this quarter, great to hear about some of the near prime ramp here. I wanted to think about, could we see another leg up in 3Q as some of this near prime stuff continues to ramp? Or is 2Q kind of a pretty good run rate that we should use moving forward? Just want to get a sense of your appetite as to like what the growth opportunity is here versus like what the implied second quarter run rate is.

Sure. I can take that. So overall, momentum is really strong. We just did $2.4 billion of originations on behalf of others. That was up from $1.6 billion last quarter. We did expand outside of our credit box. What I would say is we aren't guiding specifically to LPB originations in the back half of this year, but we do expect continued growth in momentum in both Q3 and Q4.

The next question is from Moshe Orenbuch from TD Securities.

Maybe to kind of follow up on the Loan Platform Business. Could you just talk a little bit about the scope of kind of the partner agreements that you've got? Like how much capacity is there? How long do they last? That type of thing. And maybe just to add on the comment about loan tokenization, is that to use as a funding vehicle? Or is that a loan sale vehicle or both?

Yes. The first thing I'd say is that the demand for the loan platform business is pretty broad-based and deep. Asset managers have capital that's coming in every day that they need to deploy against adequate ROE. We are very unique in our origination capabilities across the credit spectrum, but also we have great history and reliability and our underwriting capabilities from a technology standpoint, our marketing servicing capabilities and our servicing.

And so those with assets can more easily access originations through our platform than their own or others, and it's also going to be a steady stream of volume given how well capitalized we are and that we are -- we have a bank license. Those things really matter. Some of the other fintech lenders that can participate in these sales and forward flows, they don't have deposit funding. They're not a bank. They have different regulatory regimes covering them. We have the most stringent regulatory regime and the most visible and stable funding which factors into this as well, especially when you think about other things like fair lending and disparate treatment.

The other thing I'd say about the Loan Platform Business is that we are not going to be able to serve everyone. And we want to pick partners that are focused on the long term, not the near term.so we're trying not to do deals that could be a flash in the pan, gone here one day and gone to next. We want durability in our relationships. We've learned that well over the last 8 years from our Technology Platform business that this is very similar to. We want to make an investment in the long-term players that really see the value of our originations and our Technology Platform more broadly.

Yes. And just a follow on to that, the only thing I would add just to remind folks of the LPB agreements that we have in place and that we've announced. So we had an initial $2 billion deal with Fortress that started in Q3 2024, and then that deal extended for another $2 billion over the next year starting in Q3 of 2025. We also announced a $5 billion deal with Blue Owl, which was a 2-year deal starting in Q1 of 2025. And then we also announced a combination deal with Fortress and Edge Focus. That's $1.2 billion over 2 years which started to scale in Q1 of this year. What's important to note, as Anthony alluded to, is that we have other partnerships with impressive firms, including investment banks and other investment managers that are also representing meaningful value for us today.

The next question comes from Peter Christiansen from Citigroup.

Great results here. Anthony, I was wondering if you could just talk about discretionary spend. You're clearly punching above the incremental margin target for this year. How do you think about spending for the remainder of the year on a discretionary basis towards things like member acquisition? Or is it accelerating certain product development? And then as the Loan Platform Business actually becomes a larger piece of the overall business, do you think SoFi still maintains that 30% incremental margin kind of target?

So I think you're starting to recognize we clearly have a lot of operating leverage in the model and our margins could be well in excess of 30% on the EBITDA line. I've been a student of the evolution of direct-to-consumer technology companies starting back in 1999, and I think it's really critical that we invest for the future. We want to compound 25% revenue growth for decades, not just for a couple of years. So we don't want to underinvest in the business. In the quarter, if we start to outperform relative to expectations on the revenue line, we're going to have a hard time spending that money back in the quarter. And so if you see us above the 30% incremental EBITDA margin in a quarter, it's because we outperformed relative to what we thought and we couldn't spend the money fast enough. But we are going to make sure that we keep putting $0.70 of every incremental revenue dollar back into the business.

In terms of where we're spending it, the greatest increase in the spending in the back half of the year is in our engineering product and design areas. Specifically, we're investing in some new products that complement the SoFi Money product. We're investing in level 1 options as it relates to the Invest business. We're investing more and hiring more people in the user experience in Invest. Our Invest business is starting to gain really nice traction and momentum as we continue to see greater awareness of the broad selection we have. We're really unique. We're the only digital provider that's providing individual stocks without commissions, fractional shares, which I'd note we pioneered our own SoFi ETFs, one of which is award-winning and outperforming its pure class, quite significantly a symbol -- a share of Foxtrot Yankee.

We also offer IPOs. We're currently offering the Figma IPO. We also have robo accounts that have been award winning. And we've introduced private investing through our partnership with Templum, We had an offering with SpaceX recently as well as a couple of others and more to come. And then alternative assets were launched a year ago. And within alternative assets, we're providing opportunities to invest in venture capital funds, venture fund to funds, private credit, private real estate, private long-short -- I'm sorry, public long-short hedge funds in addition to private growth equity. So the Invest business is getting incremental investment as well.

In addition to that, we're hiring significantly in crypto to relaunch buy, sell and hold by the end of the year. We'd like to also introduce a stablecoin. We're really happy that The Genius Act was passed into a bill. It's going to take about 12 months to 18 months for all the different regulatory bodies that come out with rulemaking as it relates to The Genius Act. So all those potential competitors in stablecoin, they won't be able to really apply and get a license approved by the OCC until the back end of that time period.

Because we are already a bank and because the OCC put out an interpretive letter that allows and it's permissible for stablecoins at banks to be launched, we can launch sooner than other people. We want to be very thoughtful about how we launched that product and what -- how it's differentiated in the marketplace so we're not going to rush to get there, but we definitely have a head start because we already have the bank license. So we've allocated a lot of capital to crypto.

In addition to that, we're spending a lot incrementally on AI. It's a great efficiency driver. We're right now investing in things like account takeover and getting resolution of those in a very short period of time as well as dispute resolution. We mentioned Cash Coach on the call. In addition to that, we're using AI to file SAR, suspicious activity reports. So it's a significant amount of incremental investment. It's going to drive growth in years to come, not in quarters to come. But in the near term, we're able to also invest in marketing and to keep the really strong member growth that's driving product growth that then is driving revenue growth.

The next question comes from Kyle Joseph from Stephens.

Just wanted to -- taking a look at the Lending segment. I know it's hard to do in isolation these days, but you had strong growth in [ ANR ] and then the contribution margin profit had been fairly stable. Obviously, there are some things in that business that you can't control like interest rates. But with the success of the home equity product you guys talked about and some of the student lending -- or some of the changes on the student lending side of the business, just how are you thinking about kind of growth opportunities and profit margins in that segment?

Yes, I'd say the margins in that segment will -- in the Lending segment will stay fairly consistent. It's a business that we have great visibility on. It's a business we own the technology sort of end to end with some partner additional overlays in there. So we feel great about the business. Our home equity business, we didn't have a year ago. It's obviously benefiting from rates being high, and that is really closing down the mortgage refinancing market and making the purchase market more difficult. So people are taking out home equity loans to do remodels instead of purchases.

We've never been in a position that we're in right now as it relates to home loans more broadly. What do I mean by that? We have a team that's fully staffed. We have an end-to-end operation that we can control from the front end to the back end, and we are ready and poised and able to capture the opportunity when rates come down. I couldn't be more excited about what will happen in the home loan business as rates come down given the capacity we have and the technology advances we have and the leadership of our team there. So if we're doing quite well in this high rate environment, it will only be magnitudes better when rates come down.

And then as it relates to the student loan business, we are seeing a pickup in student loan refinancing. It feels like a light has gone on in the last month or so. We've seen a pickup in the amount of refinancing and the interest in the product overall. I'd like to remind everybody, that was our first and biggest business. It's now smaller than our LPB business, which tells you our diversification strategy moving towards fee-based revenue and capital-light revenues really working. But it's still going to contribute, and we're excited about what we're seeing and the underlying trends there for the first time in a while.

Our final question today comes from Reggie Smith at JPMorgan.

Lots to talk about here. But I was curious, you mentioned all the investment in your Invest segment. Where are you guys on your monetization journey for that product? I know you attract different users than Robinhood, but just curious what the unit economics look like there today and kind of longer term.

And then I guess more broadly, and I don't expect you to give me the actual KPI figures, but how do you guys manage or look at that business from a KPI perspective? I'm not sure if assets under management is an important factor, engagement. Like what are the KPIs you look at internally to assess that business?

Thank you, Reggie. We're excited about the invest business. The monetization is slowly starting to improve as we get more assets we drive more monetization through a number of back-end revenue streams, as we do IPOs and we get greater AUM into products like our robo product as well as the private alternative asset investments and private companies. They all have revenue generation that are integrated into the product experience. Obviously, we don't charge commissions on single stocks or fractional shares and some of our ETFs are also without fees. But we are seeing a nice pickup in monetization there. We are profitable on a variable profit basis in the Lending business, but the variable profit dollars is not greater than the fixed costs. So we're not contribution profit positive yet but we'll get there in the very short order.

Our goal there is to continue to give the best selection, the best service and the best information and we'll continue to roll out new products. Level 1 options will be a revenue contributor that -- because it's a really well monetized product. In addition to that, we haven't really focused on margin lending. It's a secured form of lending. Our rate there is sort of off market. We need to bring it down and make it more attractive, which we have plans to do. This product also benefits significantly from members coming into SoFi someplace else and then cross-buying in to Invest. But we're going to spend even more marketing dollars on acquiring Invest-first members as opposed to just cross-bought members. So there's a lot of upside in the business.

We don't talk about international that frequently, but we do have an invest business in Hong Kong. And they just received approval for cryptocurrency offering in Hong Kong. So we're excited about that opportunity as well. So we'll continue to invest in acquisition organically and driving the cross-buy in addition to improved monetization in that product and that service. Then let's add on top of that cryptocurrency, which is a great monetization vehicle as well. And so you could see our monetization start to approach industry standards. We're about 50% of the benchmark. But all the things I just mentioned will improve the monetization quite meaningfully and get us to where everyone else is.

In terms of the metrics we focus on, we focus on total number of products within Invest. We look at the different mix of products within Invest. What are the first -- what of the members in Invest that are first to SoFi versus cross-bought. We obviously look at AUM and net flows, and all those metrics have been really positive.

At this time, I would like to turn the call back to Anthony...

Great. With that, thank you, operator, and thank you all for joining today. I'm going to spend probably 2 to 3 minutes on a closing a little bit longer than we normally have done. We're really excited about something that we rolled out at our company recently as we think about trying to become the best culture in the world. I've talked about publicly since I got here nearly 8 years ago that we want to have the best culture in the world. And that may sound like hyperbole, but it's not when you really think about the critical success factors having the best culture in the world.

It really comes down to leadership, alignment and accountability. It doesn't require capital. It doesn't require IP. It doesn't require big capabilities or licenses. It requires leadership, alignment and accountability. And we are sticking to that goal regardless of how audacious it may sound because we think those three things we can control and do them better than anyone else. I could not be more excited about our future. We're more proud of our team. And I'm really excited about rolling out publicly the SoFi Way, which will be available in social media after the call.

But let me spend a few minutes talking about it. Over the last 8 years, we have always charted our own course, not just a technology company, not just a bank, but a team that stayed true to our mission, our members, our strategy and our core values despite the changes in what's most popular for the day. Redefining an entire industry wasn't bound to be easy work and it's not for the faint of heart. It takes a certain group of people with diverse perspectives and expertise but with a common sense of purpose, willing to challenge assumptions but to always do the right thing, proving that innovation and responsibility don't have to compete but can combine to create something truly unconventional in the world.

That's the SoFi Way. And now more than ever, we're doubling down on our culture and on the behaviors that make SoFi what it is so we can serve our members and clients better than ever before.

First, we must all act as founders. Great companies are often born from great founders with a bold vision and tenacity for making it succeed. But when everyone in the organization has the same mentality as the person who started it, that's a secret weapon. At SoFi, we all act as founders of the business, acting with urgency, doing the right thing, always taking ownership, making our footprint bigger than our foot. We all act as problem solvers. It doesn't take too long to realize that running after problems is in SoFi DNA.

That's because we're doing something that's never been done before. So we iterate, learn and innovate to fix what's broken for our members, clients and colleagues. We want to understand how things work, to get to the truth with all the right data and perspectives and to iterate, learn and improve on everything we do. We take pride in being gritty, liking hard challenges, setting ambitious goals and taking accountability for results. And we all act as partners. It all starts with our members and clients. We obsess over their needs and helping them realize their ambitions. We seek to wind on their behalf together as missionaries for SoFi.

It's why we take care of each other, especially those in the front line who are closest to those we serve. We embrace our differences and help each other grow, and we never forget to smile. Thank you for your interest in SoFi. Thank you for your support. Fresh horses we ride.

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

Okay. Good afternoon, everyone. Thank you for coming to our technology conference, the Mizuho Technology Conference. I have the pleasure of hosting Chris -- my friend, Chris Lapointe today, CFO of SoFi. Thank you.

Thank you for having me, Dan.

Of course. Give you a little background, Chris joined from Uber Technologies, where he was Global Head of FP&A, Corporate Finance and Fintech. Prior to Uber, Chris was VP of TMT Investment Banking at Goldman Sachs just across the street. He holds an MBA from The Tuck School of Business at Dartmouth and a BA degree in Math and Economics from Dartmouth College. So thank you, Chris, for being here.

Thank you for having me.

Of course. So yes, maybe let's start a little bit with the macro. The macro is top of mind these days for many investors. Can you maybe talk to us a little bit about the health of your members and how you're feeling about credit these days?

Absolutely. So we're continuing to see really positive trends with our member base. Overall, we've built a business that's diversified and durable that has enabled us to withstand all the headwinds that we've faced over the years. And despite all the macro volatility that we have right now, we've never felt better about our business than we have today. And our member base remains extremely healthy.

Looking back at Q1, we just posted really strong results, probably our best quarter ever. We had record member and product growth. We had record revenue with growth accelerating. We had record originations, really strong and improving credit, really robust capital ratios and solid product innovation across the board, and we're continuing to see really good momentum here in Q2.

When thinking about some of the key metrics that underpin the health of our consumer and what we track, looking back at Q1 in terms of the overall credit, in our personal loans business, we saw our third consecutive quarter of declining NCO rates. And similarly, in our student loan refinancing business, we saw 2 consecutive quarters of declining NCO rates. That's a function of having a really high-quality member with high FICO scores and high average income. The average FICO score for our borrower base is right in the $750 range, and the average income is anywhere in between $135,000 and $160,000 depending on the loan product.

Going a bit further, if you look at where loss curves are trending right now, they're meaningfully below where our life of loan loss tolerance is of 7% to 8%. And more broadly, if you look at recent vintages, the delta between that 7% to 8% loss curve, which is the last time we approached that was back in 2017, and what we're seeing in recent vintages, that gap has continued to widen. We've had 2 consecutive quarters in a row where that gap has widened.

And then the second key indicator that we look at is spend behavior for our member base across both our debit and our credit card. In Q1, we ended up doing about $16 billion of annualized spend across our debit and credit program. That was up from $14 billion in Q4 of 2024, and growth continues to increase here as we're sitting in Q2.

Notwithstanding all of that, we're constantly monitoring underlying credit internal trends that we're seeing as well as broader macro trends. And we make changes as necessary when things deteriorate. But we've been successful in navigating in these types of macro uncertain times, and today is no different than that.

And let's maybe touch a little bit on the LPB growth initiatives, so -- and a big emphasis for you guys to expand there. Can you maybe walk us through the potential benefits of LPB in terms of the P&L capital ratios and the balance sheet more broadly?

Sure. The Loan Platform Business has been an absolute game changer for us. Within just a few quarters of expanding that business, we've generated in Q1 $380 million of annualized high-quality, high-margin revenue. As a reminder for folks, with our Loan Platform Business, we're originating loans on behalf of other third parties. And in exchange for that activity, we receive an upfront fee. And that's a high -- that's fee-based revenue, that's high quality, low risk associated with it and very little capital intensity. We expect that business to be a $1 billion business on an annualized basis over time, and we're well on our way. Just in Q1 alone, we've signed significant contracts with over $8 billion of volume year-to-date, and that's going to help us accelerate here in Q2.

In addition to being a really good source of fee-based revenue for us, it's also really good from a credit perspective because we're only -- we're originating on behalf of others. We're originating a loan, putting on our balance sheet for a very short period of time before transferring it. So we aren't taking any credit risk associated with that. It's also capital-light for the exact same reasons, which helps accelerate our higher-ROE businesses and further reinvest back into the business.

And then the other important element of this is that we retain the servicing associated with all of these loans that are originated, which allows us to serve more members and have them cross-buy into other Financial Services products.

And maybe can we touch on the demand on the borrower side but also on the capital market side?

Yes. Demand is the best that we've seen up until this point both from a borrower perspective as well as from an investor perspective. On the borrower side, in Q1, we just did $7.2 billion of originations across the business. That was up 66% year-over-year. And we also had about $3 billion of capital markets activity inclusive of the Loan Platform Business.

At the time of the last earnings call, as I just mentioned, we had signed over $8 billion of loan partnership agreements just year-to-date, which is going to help us accelerate that business from an originations perspective here heading into Q2. We just did $1.6 billion of originations in Q1 and about $1.1 billion in Q4 of last year. And we expect to see another acceleration here in Q2, which we're really excited about.

I think the other thing to point out is that up until this point, the vast majority of loans that have gone through the Loan Platform Business have been strictly within our strict credit policy or underwriting criteria. And that's -- currently, we're underwriting, call it, about $20 billion of unsecured personal loans within our stringent credit criteria. There's also about $100 billion of applications that we get each year that we do not underwrite because it doesn't fall within our credit criteria. And we're starting to see meaningful investor demand for that collateral in addition to stuff that we would otherwise hold on our balance sheet. So capturing even a small portion of that $100 billion would further propel this business looking forward.

In addition to that, one of the best things about this business is that we give investors a customized pool of collateral based on their yield desire or their credit desire or certain characteristics of that loan. But that's been purely focused on our unsecured personal loans business up until this point.

Looking forward, in an ideal world, what we'd do is we would not only give investors access to customized portfolios based on their yield characteristics or loss profiles across a certain asset class, but be able to expand that across different asset classes. So instead of just doing unsecured personal loans, we'd love to be able to offer pools that include in-school loans, student loan refinancings, mortgages, home equity loans, et cetera. So we're really optimistic about that business and the fact that it's high fee-based, low risk and high returns for us.

The only other thing I would call out as it relates to demand from a capital markets perspective is that we just closed on our second securitization of the year this past Friday. It was a $700 million deal. This was collateral that was originally transferred through the Loan Platform Business. And we executed at really favorable spreads and reset the market once again. So we're really excited about the progress that we're making with our SCLP program and being able to execute 2 very strong transactions in a short period of time, which further exemplifies the demand we're seeing for our collateral.

And as we think about SoFi over time, like how do you think about the balance between holding loans on your balance sheet versus the evolution of LPB?

What I would say there is we've built and expanding on our -- expanded on our lending capabilities in order to meet the demands both from a borrower perspective, so potential members, but also a capital markets perspective. And by doing so, it's provided us with the ability to not only hold loans on the balance sheet at meaningful scale and generate a consistent recurring set of net interest income that we can predict, and it comes back every single year, but it also allows us to generate meaningful fee-based revenue streams because all excess demand that we don't want to hold on our balance sheet, we can put through the Loan Platform Business. This flexibility has really provided us with incremental diversification as well as durability and has allowed us to be able to grow in all types of macro environments.

In terms of how we're thinking about the balance sheet and this mix going forward, in the near term, we expect modest balance sheet growth in the single-digit billions for 2025, and all excess demand that we're seeing from borrowers would go through the Loan Platform Business. Now that can change depending on demand and scale of the Loan Platform Business over time. But we're really proud of the diversification that we've built within our overall lending capabilities.

And can we ask about how has the cross-buy trended recently? And how has that impacted business performance for SoFi?

Yes. The flywheel effect is certainly working for us. We have more and more members taking out additional products once they get into our ecosystem and build that trust and loyalty. Overall, our cross-buy rate has been hovering around 30% to 35% over the course of the last several years. And that's critically important because it helps drive our overall growth as well as expand our margins.

Just to put this into perspective with a real-life example because it really helps paint the picture. Assume for a second someone comes into our ecosystem and takes out a personal loan. And for that member and on that personal loan, we generate about $2,000 of revenue from them through net interest income over time. Now assume for a second that it costs about $800 to acquire that number and about $200 in operational costs to originate that loan. That translates to about $1,000 of variable profit or 50% margin for that individual with that specific product.

Now take a different member who may come in through our Relay product. And it costs us $10 to $12 to acquire that member. And the likelihood once they join the Relay product and start using it, the likelihood for them to take out a second or third product is really high. Assume for a second they take out a personal loan that's similar to the characteristics that, that first person just took out. We would still generate $2,000 of revenue on that personal loan, but we wouldn't have to pay that second acquisition cost of $800. And that variable profit of $1,000 goes to $1,800 or 90% margins. This is critically important because 30% of all products that are taken out on our platform right now are coming from existing members on the platform where we don't have to pay that second customer acquisition cost.

This flywheel effect, which we call the Financial Services Productivity Loop, is what's really driving momentum in overall growth and margin expansion. If you look back over the course of the last 4 years or so, we've grown our members and products, on average, 50% per year. And at the same time, margins have expanded -- or EBITDA margins have expanded from 0% to 25% over that same period of time. And that's all a function of the Financial Services Productivity Loop in action.

And maybe shift gears to student loans. So a big business for you. The administration is exploring the privatization of various student lending programs. How is SoFi positioned should that occur? And how are you thinking about student lending more broadly?

Yes. So the vast majority of our student loan business is in the form of student loan refinancings right now, but we do have a very healthy in-school program as well. In terms of the overall privatization of student loans, we're constantly monitoring legislation. And at the end of the day or overall, we believe that more competition in the student loan space is better for both the borrower, the student, as well as their families. And we think that given our experience in this space that we're extremely well positioned to be able to help serve those borrowers and students, not only for student loans but for the broader financial services industry at large.

As it relates to the broader opportunity that we have within student loans, we estimate there to be about a $280 billion total addressable market of student loan refinancings. Given where we can price the assets today and where our credit profile is, right now, we have about a 60% to 70% market share. That's been growing over time and we expect it to continue to improve. So we have a really good opportunity there. We -- as rates have started to come down and federal borrowers have started to go back into repayment, we're starting to see some really good momentum.

This past quarter, we did $1.2 billion of originations. That was up about 60% year-over-year. And as rates continue to come down, that $280 billion total addressable market will continue to expand, and we'll have our fair share of it. So we're excited about the opportunity. We're continuing to monitor legislation, and we'll be there for members as they need us.

And maybe let's talk about another big opportunity, which is home lending. So home lending products have been a smaller part of your business, but you've recently expressed optimism about prospects here. Can you maybe help us understand the opportunity of that product?

Yes. We're excited about the home loans business given the changes that we've made to the product as well as the opportunity set that's in front of us. Just to put things into perspective, if you were to rewind back to when we went public, interest rates were 0 -- Fed funds was 0%. The economy was in a good spot. And we were originating about $700 million of mortgages and generating $30 million of revenue at the time. And the refi market was booming, and that was predominantly what we were originating.

And fast forward over the course of the next few years, interest rates increased from 0 to 500 basis points. The refi market basically went away. We moved into a purchase market, which is a much different animal when it comes to back-end operations and fulfillment capabilities. So we realized that we needed to reengineer the product both from a product like offering perspective but also from a fulfillment and servicing perspective.

So in 2023, we ended up acquiring a business called Wyndham Capital Mortgage. It's got a great technology. We've integrated the business. That's shored up by our back-end fulfillment capabilities as well as servicing capabilities and really set us up to be able to scale this business. In addition to that, in 2024, we ended up launching new products, one of which was home equity loans, which has been a really good growth driver for that business over the course of the last several quarters. In Q1 alone, about 1/3 of our overall originations in home lending came from these home equity loans, and that was a product that we didn't even have a year ago.

But overall, originations are starting to pick up steam. We ended up growing them about 54% year-over-year in Q1. And we're really excited about the opportunity given that we have a full product suite now as well as our fulfillment capabilities all shored up.

The other thing I would say is in addition to the massive addressable market that we have now that we have the product -- full product suite with people who are not our members today, there's a huge opportunity with our existing installed base. One of my favorite stats and where we push the team often is less than 2% of all SoFi members who actually have some type of mortgage product has it with SoFi. So imagine if we were to scale that to 3%, 5%, 10%, 15%, there's a huge opportunity to generate meaningful revenue and meaningful returns from our existing member base where we don't have to pay that large second customer acquisition cost. So overall, we're really excited and we're making good momentum in that business.

And then you mentioned interest rates, so maybe that's a good segue for that. So what is your interest rate expectations? And how might lower rates impact SoFi's business?

Yes. Overall, interest rate expectations are in line with where consensus is today. Right now, there's about 2 rate cuts priced in for the rest of the year. In terms of how it's going to impact the business, we've built a diversified business that tends to succeed in different rate environments. You saw us navigate going from 0 to 500 basis point of rate increases. Our personal loans business did extremely well as people are looking to refi at a variable rate interest rate debt into fixed rate terms.

You saw our money business do extremely well because we were able to offer a really competitive APY and scale that business as well as our deposit base, which really helped with interest expense. And just generally speaking, though, we think that a down rate environment is really favorable for our business. One, it's going to further propel demand for our student loan refinancing business as well as our home loan refinancing business. And we've also demonstrated in down rate environments that we have really good pricing power, particularly in our personal loans, where there have been several quarters where rates have come down and we've been able to maintain pricing and actually increase the weighted average coupon of our portfolio.

And on the flip side of that, on the liability side of the equation, the betas on our deposit base are in the 65% to 70% range, which has helped us generate expanding NIM margins in the 6% range. So overall, given the accelerated demand that we would expect to see in a down rate environment as well as the pricing power that we have on the asset side, particularly with our personal loans, gives us really good excitement in a down rate environment.

And maybe let's talk about another great business. The Tech Platform business has had some nice wins. And you've alluded to some opportunities in the pipeline. What is driving those wins? And how should investors be thinking about growth in that business?

Yes. So we've seen really good uptick in demand in the Tech Platform business over the last several quarters. Just to put things into perspective, if you were to rewind back to when we acquired the Galileo business, interest rates were really low and we were in a good spot. As interest rates started to increase, it put meaningful pressure on demand for our Tech Platform products. And at the same time, we're in the process of reengineering our strategy to focus on larger, more durable customers with large installed bases, particularly financial services firms as well as consumer brands.

So we've made meaningful progress there. We're proud to say that over the course of the last several quarters, we've had good momentum and signed a number of different deals. You saw our Direct Express announcement where we're working with the government and the treasury and 3.5 million consumers. That will be a great business for us that's predictable and will start generating meaningful revenue for us in 2026. We recently launched a unique debit rewards program with Wyndham Hotels. We have a deal down in Latin America with Mercantil Banco, which does both personal and business banking services. And we expect to announce a few deals across the hospitality and travel space throughout the course of this year. So overall, really good momentum that we're seeing. We also have about 10 deals right now that did not contribute to revenue in Q1 2025 but we do expect to contribute in 2026. But overall, really good momentum.

Great. Yes. We're about 5 minutes to the end. So I've got 2 more questions here. So let's talk about crypto. Crypto is a hot topic given the OCC's imperative letter. What is -- what are the ambitions of SoFi here? And how do you see this in terms of the market? Is it a winner-takes-it-all environment? And what can happen in crypto for SoFi?

Yes. Overall, there's a lot of demand from our members for digital assets and crypto products, and we're excited to get back into that business. One of our goals is to help our members achieve financial independence in order to realize their ambitions. And in order to do that, we need to be there for them along their financial journey and every day in between and offer them products that they demand and will help them get their money right.

We used to be in the crypto business and offered members the ability to buy and sell coins. We got out of that business once we got the bank charter. Given the change in the regulatory environment, we're going to take the opportunity to get back in that business, particularly in buying and selling coins. But we also expect to be able to expand our offerings, whether that's through secured lending against crypto or other activities through our Tech Platform business. But we're evaluating a lot of things right now and are excited about the opportunity and the growth that, that could provide our business and the opportunity it could provide our members.

And maybe my final question here, macro. So given where we stand today, how are you thinking about the remainder of the year? You were very confident in April. What is your expectation of the macro right now?

We feel great about the business. We haven't felt as good as we have and as we do today. The strength of the consumer is extremely healthy, particularly our member base. Credit is holding in there, and we're continuing to bend the curve. Overall spend behavior is really strong. We posted strong Q1 results and ended up increasing our guidance for the remainder of the year, and we still expect to meet that guidance.

So overall, we feel really opportunistic. We're proud of what we've built up into this point. The momentum is certainly starting to shift. We have a lot of tailwinds at our back, and we couldn't be more excited.

Great. And I think we might have another 3 minutes. So if there's an opportunity to take a question from the audience. Well, I think we've addressed all the important topics.

Wonderful. Well, really appreciate you having me, Dan. And thanks, everyone, for joining.

Thank you.

Thank you.

All right. Thanks, Jim. I guess that's my cue that it's time to start. So let me just read off the disclosure here. My name is Andrew Jeffrey. I'm the fintech analyst at William Blair. And I'm required to inform you that a complete list of research disclosures or potential conflicts of interest are available on our website, williamblair.com.

It's really my pleasure to be able to introduce Chris Lapointe, the CFO of SoFi. This is one of our favorite names. Anybody who's talked to me about this knows how enthusiastic we are about SoFi. Very thematically, we believe that there's a structural shift taking place in U.S. consumer finance, whereby younger consumers, especially as they become more affluent and advance in their careers, are increasingly going to be and have become dissatisfied with traditional banks. They want better experiences. They want better products. They want fairer products. They want faster credit decisions. And SoFi, by being a vertically integrated digital bank that's very thoughtfully built and thoughtfully run and continues to evolve its products, we think, fits into that theme extremely well.

And with that, I'll let Chris walk you through the presentation.

Excellent. Well, thank you very much. Good afternoon, everyone. Thanks for having me, Andrew. It's a pleasure to be here at the conference. Here's our quick disclaimer as well, which is on our investor website, which you can all read at your leisure.

But here's what I'm going to cover today. So some of you may be new to the SoFi story, so today, I'm going to cover our differentiated business model, the significant growth that we've delivered over the course of the last several years and the incredible opportunity that we have ahead of us Overall, we haven't been this excited or confident in our business than we are today. So let's start with our mission and strategy.

At SoFi, we're building a mission-driven company to help people achieve financial independence in order to realize their ambitions, which means helping our members get to the point where they have enough money to do what they want. That means having the family that they want, the career that they want, et cetera. In order to do that, we need to have a lifetime relationship with them and be there for all of their major financial decisions and every day in between. Everything that we do at SoFi is guided by our focus on helping our members get their money right, and we're achieving this mission by being the only digital one-stop shop for financial services in the marketplace today.

We offer a comprehensive set of products and services to help our members borrow better, save better, invest better, protect better and spend better, all of which are seamlessly integrated into our digital platform. We aim to be the best in class across each and every one of our products, but we also believe that our products work even better when they're used together. Across each and every one of our products, we want to differentiate them by providing the best speed, the best selection, the best content and the best convenience.

This means being the fastest place to open an account, providing the most comprehensive selection of features, providing a number of ways to move money seamlessly, safely and efficiently and bringing products and insights that were once reserved for the ultra-wealthy to everyday people in a digital and easy-to-use fashion. Unlike the traditional financial institutions, we have a technology DNA and are unencumbered by outdated technology or bureaucratic silos that get in the way of the member experience. This allows us to innovate and scale the business at a much more rapid clip.

So our one-stop shop strategy also leads to a sustainable competitive advantage, which is being able to produce the highest lifetime value per member at the lowest customer acquisition cost. So here's how it works. We end up attracting new members of SoFi through any one of our new products and having a trusted brand name and exceptional products. Once a member takes out that first product, we build that trust and loyalty with them such that they are -- have a higher propensity to take out additional products.

For example, during the first quarter, nearly 1/3 of all new products that were opened up came from existing members on the platform. When that member takes out a second product, we don't have to pay the second acquisition cost, which essentially allows us to drive a very high lifetime value per member at a much lower customer acquisition cost. Having these really good unit economics allows us to reinvest in our business, which provides with better -- provides the member with better products and better services, better pricing and better selection. This flywheel effect, which we end up calling our financial services productivity loop, ends up powering our continued growth.

And the opportunity in front of us, as Andrew mentioned, is massive. Half of the American population is digitally native. And at the same time, there's a growing mistrust in traditional banks. We're here to provide a much better option that is truly member centric.

So this next page shows how our business has evolved over time to becoming a strong diversified business that it is today. Starting around 2018 when Anthony and I joined the company, we invested significantly in improving existing products and bringing new products to market. Over the past several years, we've launched our SoFi Money product, our SoFi Relay product, SoFi Invest, SoFi Protect, SoFi credit cards, in-school student loans, home equity loans, and we've strengthened our capabilities with strategic acquisitions of Galileo, Technisys and Wyndham Capital Mortgage. Along the way, we've consistently rolled out new products and innovative features. For example, we were pioneers in fractional shares and bringing alternative investments in IPOs to everyday people.

Today, the SoFi platform has a full set of financial services products, but we're never going to stop innovating and bringing even better products and features to our members. Just this quarter, we ended up announcing a new personal loan and a student loan refinancing new product. And given the changing regulations, we're also actively exploring opportunities of bringing crypto and blockchain technology offerings across our business. Given our broad product offering and technology platform, we believe that there could be meaningful benefits for our members and our business.

So what has been the result of all of this innovation and brand building? We've seen exceptional member and product growth. Since we went public in 2021, we scaled both our members and products at a compounded rate of over 50%. We now have approximately 11 million members and over 15 million products, and we believe we're just starting.

In fact, the last quarter was our best quarter ever in terms of overall member growth and product growth. We ended up adding 800,000 new members, which was up 34% year-over-year, and we added 1.2 million new products, which was up 35% year-over-year.

Our member and product growth are the leading indicators of our overall financial performance. From '21 to 2024, we ended up growing adjusted net revenue at a 37% CAGR. And this year, we expect to generate well over $3 billion in adjusted net revenue, which is up more than 3x of what we delivered back in 2021. We also meaningfully improved our profitability by delivering $666 million of EBITDA in 2024 at a 26% margin, while net income was $227 million at a 9% margin. And I'm going to provide a little bit more detail on profitability in a moment, but first, I want to start by talking a little bit about the diversification of our revenue.

So as we've grown our business, we've also taken action to diversify our revenue streams. This has meant broadening our sources of income to include more fee-based revenue, which is capital light, has a higher ROE and gives us greater durability throughout cycles. Our fee-based income comes from a variety of sources, including origination fees, referral fees, interchange revenue, brokerage free revenue in our Loan Platform business, which I'm going to hit on here in a minute.

In 2021, our fee-based revenue was about 26% of total revenue, and in the first quarter of 2025, it comprised 41% of overall revenue. On an annualized basis, we generated $1.2 billion of fee-based revenue in the first quarter, and we continue to see meaningful upside there.

Beyond the top line growth that we've exhibited, we've also strengthened our return profile. We ended up turning profitable in Q4 2023 and have since delivered 6 straight quarters of net income profitability. Our annualized ROTCE was about 6% in the first quarter, but over the long term, we see our business as being capable of generating an ROE in the 20% to 30% range while still generating significant growth. Ultimately, we're focused on generating an attractive mix of durable growth and strong returns for our shareholders.

Let me now turn to the segments, starting first with our Financial Services segment, which has been a key driver of our overall growth and revenue diversification efforts. Our Financial Services segment includes our SoFi Money and SoFi Invest businesses, our Credit Card business and our Loan Platform business. Year-over-year, revenue has doubled while also nearly doubling our contribution margin to roughly 50%. Noninterest income in this segment, which is primarily fee-based income from Loan Platform business fees, brokerage fees and interchange has increased 4x.

Let me now spend a few minutes talking about Relay and SoFi Plus, 2 of our financial services products that are integral to our strategy and demonstrate the power of our one-stop shop model. Our Relay product allows members to understand their spending patterns across their accounts within and outside of SoFi. We've seen tremendous scale and indirect value creation from Relay, which is now over 5 million products and grew 41% year-over-year. Relay is an important product because it serves as a top of -- the tip of the sword, attracting new members to SoFi and then driving attractive cross-buy patterns into SoFi products. As an example, 1/3 of Relay first members that cross buy adopt over 3 products today.

SoFi Plus on the other hand is our premium membership tier, bringing together the best of all we have to offer across our products and creating over $1,000 in value for our members each year. Until recently, these benefits were accessible to members by setting up a direct deposit, but more recently, we've created a subscription fee option where members gain access to these premium services and more through a $10 monthly fee. While the subscription option is still new, we're seeing very promising behavior among our new subscribers.

For new subscribers to the program, 90% of them were existing members on the platform and 1/3 of those took out an additional product within 30 days of enrolling in SoFi Plus. And then of the remaining 10%, at least 75% have taken out a second product and 40% have taken out a third product within just 30 days of enrollment of the subscription service. The success of these products obviously shows that members truly value our one-stop shop model and further demonstrates our financial services productivity loop, which is a key part of our overall strategy.

So I now want to spend just a minute discussing our SoFi Money business, which we see as our next billion-dollar revenue business. In 2022, we ended up receiving our banking license, which gave us the opportunity to provide deposit products to our members, which is a critical in becoming their primary financial services provider while also significantly reducing our overall cost of funding for our loans, which historically were funded through warehouse providers. This was a critically important development in our strategy and has been one of the key differentiators versus our peers.

In just a few years, we've grown our deposit base to over $27 billion in deposits, which has strengthened our balance sheet with durable, sticky consumer deposits. Today, over 90% of all of our direct -- all of our member deposits are coming from direct deposit members and over 97% of those deposits are fully insured by the FDIC.

How have we been able to grow these deposits so quickly? First, by providing an unmatched value proposition that is both easy to use and is very fast. We're the only company that allows our members to move money in a frictionless way through digital person-to-person payments via a phone number or an e-mail address and via Zelle ACH or self-serve wires. Second, we're offering in a very attractive APY to our members that is typically in the top quartile, while the big banks are offering a couple of basis points. Because of our business model and the attractive loan yields that we generate, we're able to offer a strong APY while still maintaining a healthy net interest margin well above 5%.

In addition to the member benefits, we have a strong deposit base that has enabled us to lower our funding costs, saving us an estimated $515 million per year versus what we would be paying for warehouse funding had we not obtained the banking license. SoFi Money has essentially become a game changer for our business.

Turning now to our Lending segment, which is currently our largest and most profitable segment overall. Within this segment, we offer personal loans, student loan refinancing, in-school loans and home loans and home equity loans. In the first quarter, this segment delivered over $1.6 billion of annualized adjusted net revenue and has consistently delivered a contribution margin in the range of about 60%.

Our largest category of loans is our personal loans, which are used to consolidate more expensive credit card debt and a variety of other uses. Personal loans are our best quarter ever in Q1 with over $5.5 billion in total originations, and we continue to see really strong demand in that product.

Our student loan business is primarily student loan for refinancing, which has meant that we faced headwinds in recent years from the student loan moratorium and higher interest rates. However, with student loan payments starting to resume, we're starting to see positive momentum in that business and an acceleration in originations. First quarter originations were up nearly 60% year-over-year. And then our home lending business faced some headwinds from higher interest rates over the course of the last few years, which has given us the operational and servicing, which has provided some real headwinds, but we haven't just sat there idly. We took that time to redesign and redevelop that product.

First, in 2023, we ended up acquiring Wyndham Capital Mortgage, which has given us the operational and servicing capabilities to scale our home loans business. And then second, in 2024, we ended up introducing a home equity loan product. And this product has diversified our growth, which has made the business much more durable through various rate cycles. This product, which we didn't have just a year ago, accounted for more than 1/3 of our overall home lending volume during the first quarter. And it was our best quarter ever for home equity originations, and this should only improve from where we are today. When interest rates come down, we do expect to see an acceleration both in our student loan refinancing business as well as for demand in our home loans as we're well positioned to capitalize on the opportunity.

So let me now zoom out for a second and discuss a relatively new business that has really transformed our lending platform capabilities. Historically, we would originate loans, hold them on the balance sheet for a period of time, and then sellers securitize through the capital markets in order to manage our balance sheet capacity. We continue to do this through our Lending segment today, and it's a great business, but it is also capital intensive. Last year, we ended up creating more optionality to meet the strong demand that we have both from members as well as capital markets participants through our Loan Platform business.

Here's how this business works. So we end up partnering with loan buyers in the capital markets such as Fortress and Blue Owl, and we deliver loans that meet their specific investment needs. We earn a set fee per loan that we deliver, and we retain the servicing of those loans and the membership relationship, giving us great cross-buy opportunities. Importantly, we move these loans to our partners in a matter of 2 to 3 days, so we are not bearing any of the ongoing credit risk or capital requirements. Our Loan Platform business is allowing us to significantly scale our origination volumes without growing our balance sheet beyond our stated targets.

This has been a huge unlock for us over the course of the last few quarters. In the first quarter of 2025, we ended up originating $1.6 billion of LPB volume and generated nearly $100 million in total LPB revenue. In the second quarter, we expect another meaningful increase in both volume and revenue.

So far, the vast majority of loans that we've originated through the Loan Platform business have similar characteristics to what we would hold on our balance sheet today. However, we see further opportunity to originate great loans that are outside of our very narrow credit box, which would open up in an entirely new market for our business and allow us to monetize a portion of the roughly $100 billion of loans that we're currently turning down in the personal loans business on an annualized basis.

When we add our LPB to our originate-to-sell business, we now have the continuum of options that allow us to generate consistent growth and attractive returns in a variety of economic environments. I would note that the capital markets demand for our loans continues to be extremely robust, and that continues into Q2. During the first quarter, we sold and transferred through our LPB business $3.1 billion of personal and home loans, and we have not seen any signs of slowing.

Turning now to credit. I want to reiterate that we do not retain any credit risk associated with our LPB loans since we move them to our partners shortly after origination. For our balance sheet loans, we've seen credit improve with net charge-offs for our personal loans and student loans continuing to decline this past quarter and sequentially. Our borrowers continue to be really strong and healthy. The average FICO score of our borrowers are around 750, and they have strong average incomes averaging about $134,000 for student loan borrowers and $158,000 for our personal loan borrowers.

Staying on credit here for a moment. We underwrite on the personal loan side to a 7% to 8% average life of loan loss. If we compare our recent vintages back to 2017, the last vintages to reach that or close to approach the 7% to 8% level, we see that losses are trending well below that level. In fact, the gap between the newer cohorts that we've originated ended up widening by a more favorable 16 basis points this past quarter after widening of about 15 basis points in Q4.

Additionally, looking at our Q1 2020 through Q4 2024 originations, 59% of principal has already been paid down with 6.7% in cumulative losses. Therefore, for our life-of-loan losses to end up coming close to that 8%, the charge-off rate on the remaining 41% of unpaid principal balance would need to be approximately 10%. And this would be well above past cohorts at similar points of seasoning, which further underscores our confidence in achieving life of loan losses below our 8% threshold.

Turning now to capital. On top of our regulatory minimums, we maintain an internal stress buffer, which determines the minimum capital level where we feel comfortable operating given the composition of our balance sheet, our growth opportunities and the current environment that we're in today. At the end of the quarter, we had a total risk-based capital ratio of 15.5%, which included incremental capacity beyond our internal stress test buffer and is well above the regulatory minimum of 10.5%.

Turning now to our Tech Platform segment, which offers businesses the ability to launch and run financial products from bank accounts and debit card to ACH and wire payments to BNPL and more as well as offering a cloud-based core banking system. Our Tech Platform business also underpins our SoFi product offering, allowing us to launch customized products for more -- and expand more rapidly and effectively.

For example, we have a Pay in 4 product and our self-service wires that we recently rolled out. Those were built entirely on our in-house Tech Platform. We're able to build and launch these products in a fraction of the time and at a much lower cost compared to a bank operating on a legacy platform or by partnering with another third party.

Our revenue generation and margins have been steady. However, we have recently diversified our client base to provide incremental growth opportunities, and we're seeing really good momentum today. We've had a diverse set of client wins, including financial services firms, government programs and large consumer brands in this business, and the opportunity, we'll see as these newer deals start to generate more meaningful revenue over the course of 2026.

So over the past few years, we've overcome significant headwinds, including the sharp rise in interest rates that brought down several major banking institutions as well as a moratorium that we face on our largest, most profitable business in student loan refinancing. But despite those headwinds, we grew substantially. We ended up strengthening our returns and also built a more durable and diversified business. We're now an even stronger business, better positioned to take advantage of the significant opportunity in front of us. And as we approach the midpoint of 2025, we have really, really good momentum. Our first quarter was one of our best quarters ever with record member and product growth, record revenue, record originations, strong credit, strong capital and new product innovations across the board.

Our strong Q1 in terms of overall financial performance has allowed us to increase our outlook for the remainder of the year across all key measures, and we stated that during our last earnings call. And particularly, we were able to raise guidance on an adjusted net revenue to $3.235 billion to $3.31 billion, which equates to year-over-year growth of 24% to 27%. We now also expect adjusted EBITDA of $875 million to $895 million, adjusted net income in the range of $320 million to $330 million, and adjusted EPS of $0.27 to $0.28, which is above our prior guidance of $0.25 to $0.27. We've also increased our medium-term revenue guidance covering the period of 2023 to 2026 to now be above 25% annualized growth, and we're really excited about the opportunity ahead of us and looking forward to the rest of the year and the year ahead of us. Thank you.

Thanks, Chris. Awesome. So we've got about 5 minutes left in the formal session before we go to breakout, so I'm going to ask you a couple of questions just for the group's benefit. So clearly, you've seen really good demand for your paper. Can you talk about product demand? Get a lot of sort of macro questions, and I guess part of that is sort of broad product demand and then part of it is to drill down on sort of the dynamics within student loans. I mean, on one hand, you could see increased demand for student loan consolidation, I'm assuming, and/or personal loans. On the other hand, there may be some concerns about sort of the credit quality associated with those products. So a couple of questions in there.

Yes, absolutely. So overall, across the board, we're seeing really strong demand for our products, which is obviously a reflection of the relentless focus that we have on innovation and brand building. Like I said, we just reported our best quarter ever for member and product growth. We ended up adding 800,000 new members, 1.2 million new products, growing to nearly 11 million members and 16 million products. Cross buy that we're seeing from existing members continues to be extremely strong, and it accounts for roughly 1/3 of all new products that are taken out in a given quarter. That's been consistent for the last few years.

And then we also had our best quarter ever in terms of overall loan originations at $7.2 billion in total. Our members today remain extremely strong and active. During the first quarter, we ended up seeing about $16 billion of annualized spend across both our debit and our credit products, and that continues to grow and accelerate.

And then on the Tech Platform side, we've diversified beyond the traditional fintechs and are now working with large government programs, consumer brands and in addition to the traditional banks and fintechs. Our recent wins and others in RFP processes are going to have a meaningful impact in 2026 and beyond.

As it relates to some of the student loan stuff that you're talking about, overall, we see a few dynamics at play. The resumption of student -- of federal student loan repayments, we view as a positive tailwind to our business. As federal borrowers go back into repayment, many are going to look to us to refi at a much better price that we can offer relative to where we are. Right now, there's about a $280 billion total addressable market that we calculate for borrowers who are directly within our credit box and where we can price the product today, and we have a very large market share of north of 60%. So we feel good about continuing to be able to scale that business, particularly as people start to resume payments.

I think the second tailwind that we expect is if rates do, in fact, come down, we view that as another really good tailwind to that business when rates -- when Fed funds was in the 1.75% to 2% range, we were originating at a quarterly clip of about $2.4 billion, which is about $9.5 billion annualized. Today, we're at about $1 billion, so meaningful upside in that business and overall demand for our products, and our consumer remains extremely healthy.

Okay. Awesome. So I think we'll call that the end of the formal presentation, and for those of you who would like to stick around for a breakout, please do. We're going to do it in this room since it's the last presentation of the day.