SoFi Technologies (SOFI.US) revenue surged 44%: loan engines boomed, and the net profit of the crypto business was only $1.63 million

According to Woofun AI, the US fintech company SoFi Technologies (SOFI.US) released a record quarterly earnings report on October 27 and raised its full-year revenue forecast. Although its app ecosystem covers diverse scenarios such as deposits, investments, and credit cards, the core engine driving the fastest growth is still the traditional loan business.

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

Judging from the breakdown of the performance of the three divisions, growth was extremely uneven. In the third quarter, the company's net revenue increased 44% year over year, and net profit reached US$241 million. Among them, the loan division was the absolute main incremental force, and its net revenue increased by about US$328 million year over year, an increase far greater than the other two segments combined. The expansion of the scale of personal loan disbursements has directly boosted interest income and issuance expenses, so that the company's image as a “one-stop financial instrument library” in the eyes of users is still closely linked to loan demand and loan pricing in terms of finance. In contrast, although the financial services segment continues to grow, its revenue structure includes businesses that find borrowers or provide loan issuance services for third parties, which means that even if the “financial services” label is removed, the shadow of the loan business is still everywhere.

Notably, the Technology Platforms segment followed a downward trajectory, with revenue falling 24% year over year. This decline was mainly due to the exit of one major customer during the comparison period. Excluding the impact of this major customer, revenue from the remaining businesses actually increased 18% year over year. These two very different data each answered the questions of “actual changes in reported revenue” and “internal growth potential of the core business”, showing the company's risk of volatility in the infrastructure services sector.

Structural changes in capital costs and credit risk are another key variable supporting profit expansion. SoFi's funding sources mainly consist of interest-bearing deposits and warehouse financing. Financial reports show that the average annualized cost of interest-bearing deposits in the third quarter was 3.07%, while warehousing financing costs were as high as 4.52%. The difference in annualized interest costs between these two methods is approximately $1.45 for every $100 raised under the same conditions.

The amplification effect of this cost difference under a large capital base is significant: SoFi estimates that the optimization of the financing source structure has led to annual interest cost savings of approximately US$745 million. It should be emphasized that this is a hypothetical annualized comparison value. It is not an actual cash savings for the quarter, nor can it be directly included in current profit. The expansion in deposit size provided room for low-cost funding. Deposit balances reached $51.3 billion at the end of the third quarter, an increase of $5.8 billion in a single quarter.

However, deposits are not cost-free capital, and their pricing advantages are still limited by market competition. On the asset side, the annualized write-off rate for personal loans was 2.26%, a year-on-year decrease of 34 basis points. However, the improvement in this indicator was not simply due to an increase in credit quality, but was disrupted by multiple factors such as asset sales, new loan investment, and overdue loan sales. Dynamic changes in the structure of the loan pool will change the numerator or denominator of the write-off rate; therefore, a decrease in the write-off rate alone cannot directly assert that overall credit risk will decrease simultaneously.

Woofun AI collates data and shows that this kind of detailed interpretation of the statistical caliber is critical to evaluating its true profitability.

The boom in user metrics and the marginal truth of the crypto business have further revealed the complexity of business growth. The end of the third quarter of last year was set at 100. By the end of the third quarter of this year, the product count index had risen to about 144, while the membership index was about 135. The product growth rate is faster than the member growth rate, indicating that each member's corresponding product holdings have increased. However, this does not necessarily mean that the cross-purchase rate of existing members has increased dramatically; new members can also boost this ratio by opening multiple products at once.

In addition, “members” in the company's statistics include people who have opened accounts, linked external accounts, or used credit score monitoring services, and are generally continuously included in the total; “products” also include accounts that have been opened but may no longer be actively used. Therefore, these metrics reflect more of an increase in the reach of the platform rather than the actual usage frequency of monthly active users or active products. In terms of monetization, the financial services segment's revenue per product rose slightly from $88 in the previous quarter to $90, showing a marginal improvement in the value of a single customer. Regarding the high-profile crypto business, SoFi relaunched its crypto investment service in the fourth quarter of 2025, and the number of Crypto products reached 50.3 million at the end of the third quarter.

However, its financial contribution was extremely limited: crypto trading revenue for the quarter was $161.6 million. After deducting $160 million in transaction costs, net crypto trading revenue was only $16.33 million, mainly from order matching fees.

This net amount accounted for only 0.12% of the quarter's consolidated net revenue, indicating that direct crypto transaction revenue accounted for a very low share of the overall market. The current strategic significance of crypto products is more to increase investment portals for existing members in order to link with other products such as deposits, but the financial report does not separately disclose the cross-contributions of crypto users to other businesses. With the launch of SoFi Earn, a tokenized deposit product for consumers in October, the market is waiting for it to validate new growth potential in its next earnings report.