SoFi Technologies (SOFI) Q2 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of GAAP profitability, with Q2 2024 net income of $17.4 million, compared to a $47.5 million loss in Q2 2023.

• Adjusted net revenue grew 22% year-over-year to $597 million, with adjusted EBITDA up 80% to $138 million and a 23% margin.

• Member base grew 41% year-over-year to 8.8 million, and total products rose 36% to 12.8 million, reflecting robust engagement.

• Financial Services and Tech Platform segments drove 46% combined revenue growth, now comprising 45% of adjusted net revenue.

• Management raised full-year 2024 guidance for revenue, EBITDA, and net income.

Financial highlights

• GAAP net revenue increased 20% year-over-year to $598.6 million; adjusted net revenue up 22% to $597 million.

• Net interest income reached $412.6 million, up 42% year-over-year, with a net interest margin of 5.83%.

• Personal loan originations hit a record $4.2 billion, up 12% year-over-year; home loan originations up 71% to $417 million; student loan originations up 86%.

• Financial Services segment revenue reached $176.1 million, up 80% year-over-year, with a contribution profit of $55.2 million.

• Tech Platform revenue was $95.4 million, up 9% year-over-year, with a 33% margin and contribution profit of $31.2 million.

Outlook and guidance

• Q3 2024 guidance: adjusted net revenue of $625–$645 million, adjusted EBITDA of $160–$165 million, GAAP net income of $40–$45 million, and EPS of $0.04.

• Full-year 2024 guidance raised: adjusted net revenue of $2.425–$2.47 billion (17%–19% growth), adjusted EBITDA of $605–$615 million (25% margin), GAAP net income of $175–$185 million, and EPS of $0.09–$0.10.

• Financial Services segment revenue expected to grow over 80% year-over-year; Tech Platform revenue to grow mid-to-high teens percentage.

• Lending revenue now expected to be at least 95% of 2023 levels.

• Total capital ratio expected to exceed 16% at year-end.