SoFi Stock Pops on Outlook Raise as Members Keep Piling In — Update

By Dean Seal

SoFi Technologies stock touched a record high after the company raised its guidance and said profit surged fivefold in the second quarter, citing a flood of new members for its ballooning suite of products.

Shares jumped more than 19% to a high of $25.11 after the opening bell, their highest level since SoFi went public by merging with a blank-check company in June 2021.

The San Francisco financial-services company said Tuesday that it now expects adjusted revenue of about $3.38 billion in 2025, a $65 million jump from the upper-end of its prior outlook.

Annual net income should now hit about $370 million, ahead of SoFi's previous target for $320 million to $330 million.

The beefed-up projections follow bustling growth in the first half of the year. SoFi concluded the first six months with a roster of 11.7 million members and over 17.1 million products. It added 850,000 of those members in the second quarter, up 34% from the same time a year earlier, along with 1.26 million new products, another 34% gain.

Most of that product growth came from SoFi's financial-services arm. Its online-lending platform remained popular, with lending revenue up 30% in the second quarter, but more than half of the quarterly top line came from non-lending products this time, Chief Executive Anthony Noto said.

SoFi has been building out differentiated offerings and translating that varied product growth to member growth and retention, Noto said. The company expects to add at least 3 million new members over the course of 2025, which would add 30% to its 2024 tally.

"The returns that we're driving really reflect the diverse product offering we have," he said. "We're the only digital provider that has a complete assortment of financial services products for all of your needs."

For the second quarter, SoFi's profit jumped to $97.3 million, or 8 cents a share, from $17.4 million, or 1 cent a share, a year earlier. Adjusted earnings, which strip out one-time items, were also 8 cents a share. Analysts polled by FactSet had been expecting 6 cents a share.

Revenue rose 43%, at $854.9 million, topping analyst forecasts for $804 million, according to FactSet.

The top line of the financial-services business doubled to $362.5 million, partially driven by an influx of consumer deposits that added 39% to SoFi's net interest income. Noninterest income meanwhile quadrupled. Revenue was up 22% from its investment platform, 32% from its credit-card offering and 40% for its budget-planning and money-tracking platform.

SoFi's technology platform, which provides financial-services infrastructure to other businesses, put up $109.8 million in revenue, a 15% gain. The lending business notched a 33% increase in net interest income as average loan balances grew.

Even with the year-over-year growth seen so far in 2025, SoFi still hasn't started benefiting from the two "technology super cycles" of artificial intelligence or cryptocurrencies, which will be tailwinds going forward, Noto said. The company has started using AI in its back office to ease certain functions and resolve member questions faster.

By the end of the year, SoFi plans to let customers buy, sell and trade cryptocurrencies again, a capability that it previously had to shutter but will reopen now that the regulatory backdrop for digital assets has eased. It also aims to launch the ability to do international payments that leverage the Bitcoin network, Noto said.

"We think that cryptocurrency will impact every part of our business," Noto said.

Write to Dean at dean.seal@wsj.com