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 DeGrosso. I'm Jill Shea with UBS, and I'm joined with Tim Chiodo, who covers SoFi with me. 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 our performance 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 four 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 standouts 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 a third of new accounts that are open are coming from those two 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.
Yeah. 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 where we have really good market shares, 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 wanted to ensure that we were variable profit positive on a unit economic basis. We're now there and have been for two 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 70 cents 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%-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.
Yeah. 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 waitlist 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, 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, mid-sized 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 is 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 details 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?
Yeah. 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 is 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 billion-dollar 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, 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 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 open an opportunity for the student refis. Can you just elaborate on SoFi's opportunity in student refis and what it could look like when rates come down?
Yeah. 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 rates perspective or a credit quality perspective?
Yeah. 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 GradPlus 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.
Then turning to home lending, I think 2% of all mortgages taken out by SoFi members were actually taken out with SoFi. What's the expectation for where penetration can go in 2026 and beyond, and how do you plan to drive that?
Yeah. I think there's two 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 customer acquisition cost. And then it's outside our existing installed base where we have virtually very, very small market share. So outside of our member base 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. 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.
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 two-thirds of the way through the fourth quarter, do you have any update in terms of credit quality and overall health of the consumer?
Yeah. 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. Delinquency rates were down. And everything is performing in line with expectations here in Q4.
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?
Yep. 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 funds 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.
Unlike other non-banks, we have the ability to offer a higher rate, and we don't have to lower rates at the same pace as the Fed. 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, Joe. 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.
Yeah. 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.
All 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. Well, 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 2026 and beyond.
Yeah. We're excited about the tech platform and the opportunity set. The main thing I would say about tech platform is that it drives our overall product roadmap 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 roadmap, 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. 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 is a great update on technology platform. I'm going to pass it back to Jill to close us 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 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.