SoFi Technologies (SOFI.US) Revenue Surges 44%: Lending Engine Takes Off, Crypto Business Net Profit Only $1.63 Million

According to Woofun AI, the US fintech company SoFi Technologies (SOFI.US) released a record-breaking quarterly financial report on October 27 and accordingly raised its full-year revenue expectations. While its app ecosystem covers multiple scenarios including deposits, investments, and credit cards, the primary growth engine remains its traditional loan business.

This divergence between “front-end product diversification” and “back-end revenue concentration” reveals that SoFi’s dependence on the credit cycle in the process of building a comprehensive financial platform has not fundamentally changed.

From the breakdown of the performance of its three main segments, growth is highly uneven. In the third quarter, the company’s net revenue increased by 44% year-over-year, with net profit reaching $241 million. Among the segments, the loan division was the absolute driver of incremental growth, with net revenue up approximately $328 million year-over-year—an increase far greater than the combined gain of the other two segments. The expansion of personal loan origination directly boosted interest income and origination fees, making SoFi appear as an “all-in-one financial toolkit” to users, while in substance, its financial health remains tightly tied to borrowing demand and loan pricing. In contrast, although the financial services segment also maintained growth, its revenue mix includes business models such as finding borrowers for third parties or offering loan origination services. This means that even without the “financial services” label, the shadow of the loan business is still everywhere.

Notably, the technology platform segment took a downward trajectory, with revenue dropping 24% year-over-year. The decline was mainly attributable to the loss of a major client during the comparison period. Excluding the impact of this client, the remaining business revenue actually grew by 18% year-over-year. These two contrasting figures respectively address “actual reported revenue changes” and “core business intrinsic growth”—demonstrating the company’s exposure to volatility risk in the infrastructure services sector.

Structural changes in funding costs and credit risk are another key variable supporting profit expansion. SoFi’s funding primarily consists of interest-bearing deposits and warehouse financing. According to the report, the average annualized cost of interest-bearing deposits in Q3 was 3.07%, while warehouse financing carried a cost as high as 4.52%. Under equivalent conditions, for every $100 raised, the annualized interest cost difference between these two funding sources is around $1.45.

This cost difference has a significant amplification effect on a large funding base: SoFi estimates that optimization of its funding structure resulted in approximately $745 million in annualized interest expense savings. It is important to emphasize that this is a hypothetical annualized comparison and does not represent actual cash savings for the season, nor can it be directly counted as current profit. The expansion in deposits has provided space for low-cost funding, with deposit balances reaching $51.3 billion by the end of Q3, an increase of $5.8 billion for the quarter.

However, deposits are not zero-cost funds, and their pricing advantage remains constrained by market competition. On the asset side, the annualized write-off rate for personal loans stood at 2.26%, down 34 basis points year-over-year. But this improvement is not simply a result of enhanced credit quality; it is affected by multiple factors such as asset sales, new loan originations, and the sale of overdue loans. Changes in the composition of the loan pool alter the numerator or denominator of the write-off rate, so a mere decline in write-offs cannot directly be interpreted as a synchronous reduction in overall credit risk.

Woofun AI’s analysis indicates that detailed interpretation of statistics is vital for assessing SoFi’s true profitability.

The boom in user metrics and the thin margin reality of the crypto business further reveal the complexity of growth. If Q3-end last year is set as 100, by the end of this year’s Q3, the product index rose to about 144, while the member index reached about 135. Product growth outpacing member growth suggests an increase in products held per member. However, this does not necessarily mean a significant increase in cross-purchasing by existing members; new members opening multiple products at once can also drive the ratio higher.

Additionally, the company’s reported “members” include individuals who have opened accounts, linked external accounts, or used credit score monitoring services, and these counts often remain in the total; “products” also include accounts that have been opened but may no longer remain active. Therefore, these metrics reflect the platform’s expanding reach, rather than the true usage frequency of monthly active users or active product counts. In terms of monetization, financial services segment income per product edged up from $88 last quarter to $90, indicating marginal improvement in single customer value. As for the highly watched crypto business, SoFi relaunched crypto investment services in Q4 2025, and by Q3-end, the number of crypto products reached 503,000.

However, its financial contribution is extremely limited: crypto trading revenue for the season reached $161.6 million, but after deducting $160 million in trading costs, net crypto trading income was only $1.633 million, mainly from order matching fees.

This net amount accounted for just 0.12% of consolidated net revenue for the quarter, highlighting the very minor share of direct crypto trading income within the overall pie. The strategic significance of crypto products currently lies more in providing additional investment entry points for existing members, aiming to create connections with deposits and other products. However, the financial report does not separately disclose cross-contributions from crypto users to other business lines. With the rollout of the tokenized deposit product SoFi Earn for consumers in October, the market is waiting for the next financial report to verify new growth potential.