SoFi Technologies Stock Price Rallied 9.75% on Q3 2023 Results

The SoFi Technologies Inc (NASDAQ: SOFI) stock price rallied 9.75% after releasing its Q3 earnings results for the three months ended September 30, 2023. The fintech company reportedly generated revenues worth $537.2 million, marking a 26.7% year-on-year increase and beating analysts' estimates by $21.64 million.

SoFi witnessed record-breaking member additions, with a staggering 717,000 new members joining the platform. This surge in membership contributed to an accelerated growth rate of 47%, bringing the firm’s total ending members to an impressive figure of over 6.9 million.

Not only did the company achieve record member growth, but it also saw record product additions, with over 1 million new products bought on its platform. This expansion was met with an accelerating growth rate of 45%, resulting in a total product count of over 10 million.

SoFi’s record-breaking revenue was not confined to a single business segment; instead, it was distributed across all three of its business segments. Notably, 67% of the growth in adjusted net revenue came from its non-lending segments, encompassing the firm’s Technology Platform and Financial Services segments.

On a consolidated level, the fintech firm observed sequential and year-over-year expansion in its net interest margin, which reached an impressive 5.99%. Additionally, the company achieved record sequential deposit growth, totalling $2.9 billion, highlighting the trust and confidence customers place in its services.

The company generated a record adjusted EBITDA of $98 million, with an extraordinary 48% incremental adjusted EBITDA margin. The firm’s overall margin rose to 18%, reinforcing its financial stability. Importantly, all three business segments operated profitably, including the financial services division's first profit. 

Considering the impact of a non-cash impairment of goodwill assets, we reported a net loss of $19.5 million and an EPS loss of $0.03. The company also raised its full-year revenue and EBITDA targets. 

Anthony Noto, SoFi Technologies CEO, said: “We delivered another quarter of record financial results and generated our tenth consecutive quarter of record adjusted net revenue of $531 million. We saw record new member adds of 717,000 and accelerating growth of 47% for total ending members of over 6.9 million, along with record new product adds of over 1 million, also with accelerating growth of 45% to over 10 million total products.”

SoFi Technologies stock price. 

The SoFi Technologies stock price rallied 9.75% to trade at $7.54 from Friday’s closing price of $6.87.