SoFi Technologies Inc Stock

Good morning. My name is Hillary, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you.

And with that, we may begin your conference.

Thank you, and good morning. Welcome to SoFi's Third Quarter 2026 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the third quarter of 2026 versus the third quarter of 2025.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage in strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance.

Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q.

Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I'd like to turn the call over to Anthony.

Good morning, everyone. SoFi delivered an exceptional third quarter by any measure. We achieved 35% growth in members and 44% growth in products, leading to another quarter of accelerating revenue growth, reaching $1.4 billion, up 44% versus Q3 2025 and adjusted EPS of $0.18. These are strong results in any environment, but they're even more remarkable when considering how 2026 has turned out. 9 months into the year, the environment looks different than what we expected in January.

Our original 2026 guidance assumed 2 rate cuts. Instead, we've already had 1 rate hike. And today, we are positioned for 2 more rate hikes this year. The good news is we are executing as well as we ever have. In fact, I now have as much confidence in our ability to drive durable growth in a high rate environment as they do in a low rate environment.

Given the momentum in the business and our ability to execute in a higher rate environment, we are raising our full year 2026 guidance to reflect our Q3 outperformance and higher expectations for Q4. We now expect 2026 adjusted net revenue of $5.4 billion, up 40% year-over-year and higher than our prior guidance range of $4.75 billion to $4.85 billion. Adjusted EBITDA of $1.66 billion, which implies a 33% margin versus $1.6 billion previously. Adjusted net income of $840 million and a 17% margin versus $825 million previously and adjusted EPS of $0.61 versus $0.60 previously.

This guidance implies Q4 revenue of approximately $1.37 billion, which equates to year-over-year growth of 36%. Adjusted EBITDA of $492 million adjusted net income of $276 million, which is a 20% net income margin and adjusted EPS of $0.19. We Momentum across the business is broad-based and visibility remains strong, giving us confidence to provide preliminary 2027 guidance above our previous outlook. After exceeding our 2026 original revenue guidance by $385 million we now expect to achieve $6.4 billion in 2027 adjusted net revenue, which is 27% year-over-year growth.

We also expect to deliver continued strong improvement in profitability, with EBITDA margin increasing to approximately 35%, resulting in $2.24 billion of adjusted EBITDA. We expect adjusted net income of $1.28 billion, reflecting a net income margin of approximately 20% and earnings per share of $0.90. And as Chris will walk you through, our plan is funded by our organic capital generation without the need for raising additional capital.

With expected 2026 revenue of $5 billion. We have reached sufficient scale and revenue and diversification across the individual businesses that only requires someone to understand the trends in our member growth, product growth and revenue per product to assess and forecast the business. Importantly, we allocate our resources to these 3 measurements to grow our business and execute our strategy. Clearly, each business has unique drivers of its respective revenue per product, but the trend over the last 2-plus years illustrates a modest range and strong durability for these metrics. Our focus is simple: more members, more products and more optimized revenue per product to create the most value for our shareholders over the long term.

Starting this quarter and going forward, we're going to consistently talk about our business through the lens of these 3 drivers that matter most to our long-term value. How many members we serve how many products each member uses and thus total products and how much revenue we generate per product. Growth in members and products per member reflects the strength of our financial services productivity loop and the compounding effect it has on growth. It is also a critical reason we have achieved greater than the Rule of 40 for 20 consecutive quarters.

Revenue per product reflects how well we monetize each relationship, which includes many variables the most important of which are NIM and credit and lending, deposits and spending in SoFi Money, balances and spending in credit card and return on assets and invest. Together, they drive durable revenue growth, lifetime value and our path to 20% to 30% returns on tangible common equity, and we'll report on them consistently every quarter.

Now on to our results. Member activity remains very strong. We continue to track above average earners while spending, saving and investing trends remain positive. Credit performance once again improved and remained firmly in line with our expectations with all-in personal loan net charge-off of 3.4%. We are not seeing evidence of a slowdown in how many members borrower, spend, save or invest. The third quarter demonstrated the continued strength of our strategy, achieving a Rule of 40 score of 79 when combining revenue growth of 44% and an EBITDA margin of 34%, marking the 20th consecutive quarter of exceeding the Rule of 40.

We grew members 35% year-over-year to 17.1 million. Total products increased approximately 44% year-over-year to 26.7 million, 51% of new products in the quarter were once again opened by existing members. Products continue to grow faster than members and products per member increased to approximately 1.56 compared to 1.47 a year ago. This reflects deeper engagement with our platform continued growth of products per member across our cohorts and the increasing strength of our financial services productivity loop strategy.

Adjusted EBITDA reached a record $470 million, up 70% year-over-year and a record margin of 34%, while adjusted net income reached $243 million, up 74% versus the prior year period and had a record adjusted margin of 18%. Adjusted earnings per share were $0.18, up 64% year-over-year and 50% sequentially. Our revenue mix continues to diversify toward our long-term goal of generating 50% of revenue from fee-oriented businesses. Total Q3 fee-based revenue was $571 million, representing 42% of total revenue compared to 39% in the second quarter. The Lending segment generated approximately $807 million of adjusted net revenue.

Lending net interest income was $670 million, reflecting a strong consolidated net interest margin of 6.14% and which was up 16 basis points sequentially. This also reflects the continued benefit of loan growth, higher returns from interest collected as cash payments on our loans than our fair value marks with lower-than-expected losses and our deposit funded balance sheet. We generated a record $16.9 billion of total loan originations. Loan platform business originations reached approximately $3.8 billion up $74 million from the second quarter, providing additional capacity to serve member demand while expanding our capital-light fee-based revenue opportunity.

Lending product growth remains strong and broad-based. Total lending products increased approximately 39% year-over-year to $3.4 million. Personal loan products grew 45% year-over-year. Student loan products grew 22% year-over-year and home loan products grew 50% year-over-year. Lending revenue grew faster than lending products, reflecting the increasing monetization of our lending relationships. Using period end products, annualized lending revenue per product increased to approximately $942 in Q3 compared with $782 in the third quarter of 2025.

Financial Services revenue reached approximately $525 million, up 25% year-over-year. Financial Services products grew 44% year-over-year to $23.2 million. Within our Financial Services segment, Money and Relay continue to drive the greatest absolute growth with both reaching over 8 million products, year-over-year, they grew 34% and 45%, respectively. We are achieving attractive growth rates in other products as well. Invest grew 37% year-over-year, reaching over 4 million products. Credit card products increased 67% year-over-year to approximately 656,000 with a high percentage of primary card users and strong credit performance.

We also ended the quarter with over 500,000 crypto products and approximately 275,000 SoFi Plus Subscribers. The breadth of products gives us multiple ways to acquire members, deepen engagement and create additional monetization opportunities. Using period end products as a simple proxy, annualized financial services revenue per product increased to approximately $90 in Q3 compared with $88 in the second quarter with credit card and crypto seeing the greatest increase in monetization. The improvement reflects the continued monetization of our member activity through deposits, spending, brokerage, lending referrals, subscriptions, effective interest rate on credit card balances and other fee-based services.

As our product season, we see additional opportunities to increase revenue per product through higher balances, greater transaction activity, increased assets under management and additional cross buy. SoFi Plus is the ultimate example of this model. Not only does the product create a recurring revenue stream of $120 per product per year, but it also increases engagement across money, invest, relay and lending. In fact, approximately 83% of SoFi Plus members were existing Sofi members and 25% of those members added another product after subscribing to SoFi Plus.

There is no better example of the financial services productivity loop at work than SoFi Plus and we remain confident that we can scale SoFi Plus to more than 1 million members as we continue to add to the value proposition and increase awareness among existing members.

Our Financial Services segment revenue growth is therefore coming from both volume and monetization. We're adding more members, increasing the number of products each member uses and expanding the revenue generated by those products. This creates a powerful flywheel. Broadly used financial services products help us acquire members efficiently, deeper engagement creates additional product adoption, lending and fee-based products then allow us to monetize those relationships through both recurring net interest income and capital-light revenue streams.

Our product growth reflects our ability to drive continuous innovation via our technology platform and brand building. Importantly, our technology platform not only supports our product growth and member services, it's also an attractive business in its own right. Technology Platform segment revenue totaled $87 million in the quarter, down 24% year-over-year, primarily due to the previously disclosed transition of a large client. Excluding revenue from that client in both periods, technology platform revenue grew 18% year-over-year. We remain confident in our ability to return to 25% revenue growth in a steady state for the technology platform business. We remain focused on increasing monetization of existing relationships and expanding the platform across issue processing, financial and banking cores and ledgers, payments and risk of fraud.

As we approach the end of 2026, our conviction has never been greater. The results we're reporting today and the increased optimism we have for the future reflect the strength of SoFi's model. We've proven that as our member base scales, our product ecosystem becomes broader, engagement increases and the opportunity to generate revenue from each relationship expands. That compounding dynamic is strengthening the durability of our success and increasing the lifetime value of our members, allowing us to achieve significant growth, improving profitability and returns in both rising rate and declining rate environments.

Let's not forget how far we've come in less than a decade. In 2018, we were largely a single product company built around student loan refinancing with roughly 650,000 members, a tiny fraction of the 17.1 million members we serve today. Since then, we have completely transformed SoFi's culture, business and impact on members. Our team has been relentlessly focused on our everything financial app strategy and has built fully scaled businesses in money, invest, relay, credit card and the loan platform business in just a few years. We became a nationally chartered bank, and we significantly scaled our lending franchise across personal loans, home loans and in school loans.

And in the last year, we have funded a new batch of start-up businesses in Sofi Crypto, Sofi Plus, small, medium business lending, big business banking, Sofi Pay and SoFiUSD. And because of that unwavering focus, we now serve 26.7 million products and no single product defines us. In fact, 87% of our products are financial service products, not lending. Each of our businesses is built to grow on its own and make every other business stronger.

Not too long ago, achieving $100 million in annual revenue was the milestone companies needed to achieve to go public. SoFi now has 8 distinct businesses that each have more than $100 million in annualized revenue and are still growing at over 30% year-over-year in almost all cases. Specifically, we have one business with more than $2 billion in annualized revenue. We have one business with more than $1 billion in annualized revenue. We have three businesses with more than $300 million in revenue and three businesses with more than $100 million in revenue. That is 8 proven scale businesses that will drive our growth for decades to come.

Not to mention the new start-up businesses that I mentioned, which are not yet part of the grade but have higher growth in earlier-stage revenue, such as SoFiUSD, Big Business Banking, SMB, SoFi Plus and Crypto. The ambitions we had for SoFi were bold in 2018 and our ambitions for the future of SoFi and the impact we can have in the lives of our members and clients are even bolder today. Not everything we do will be successful, but our unwavering focus and execution have been critical in beating the 1% odds that a business can reach $100 million in revenue, not just once, but 8 times.

Today, less than a decade later, we see a clear path to achieving 100 million products by the end of 2030, which is a 4x increase from where we stand today. Our plan to reach that 100 million products by 2030 also includes having 5 of our businesses generating $1 billion in revenue or more. 5 more businesses generating at least $500 million in revenue and another 5 generating at least $100 million in revenue.

Achieving our bold objectives will require our team to challenge not only the norms of the industry but even the norms we have created over the last 8 years by continuously innovating to create unmatched value for our members. I hope this provides a more tangible and quantitative perspective on what the future holds for SoFi and the clear path to these bold ambitions.

Our improved outlook is rooted in 3 primary drivers: more members using more products, generating more revenue per product. That is the engine behind our durable growth and our path to 20% to 30% returns on tangible common equity. We've had an unprecedented performance thus far in 2026 and have great visibility for continuing to 2027 and beyond. With 17.1 million members, we are still early in a very large long-term opportunity.

With that, I'll turn it over to Chris.

Thank you, Anthony. Before I walk through the numbers, I want to address two things. How we are putting our balance sheet and excess capital to work and how our business model performed in a rate environment very different from the one we planned for.

First, balance sheet and capital. Member demand for our loans continues to be strong and our strategy of how we split the mix of balance sheet loans versus LPB continues to deliver attractive returns. With strong credit and risk-adjusted margins, loans on the balance sheet continue to deliver durable and recurring net interest income that compounds over time. In fact, in the third quarter, we generated $1.4 billion of cash revenue including $927 million from net interest income, our fourth straight quarter above $1 billion of cash revenue.

This built-in recurring cash revenue gives us better visibility into future revenue. The investments we made in Q1 and Q2 are now delivering 34% EBITDA margins and 18% net income margins and provide sufficient organic capital generation to fund our lending business in 2027 and beyond. We are doing this from a position of strength. Our total capital ratio of 17% and remains well above the regulatory minimum of 10.5% and our internal stress buffer, giving us significant excess capital to keep investing in high-returning growth.

We are now at the point where our current capital position, in addition to our organic capital generation is sufficient to fund our business and our planned growth in 2027. For clarity, our 2027 guidance does not require raising additional capital and no capital raise as assumed or needed in what Anthony laid out. We are confident we can execute that plan organically, given the balance sheet we have built, the capital we will generate organically from the business and the position we are in today.

Second, on the current macro environment. Despite the unexpected rate environment we confronted this year, we delivered our third consecutive quarter of more than 40% revenue growth are raising our full year guidance and giving 2027 guidance 1 quarter earlier than usual. As Anthony mentioned, we now have as much confidence in delivering strong growth in a high rate environment as we do in a low rate environment.

Our hedges were highly effective in a volatile rate environment. We had over $800 million of fair value losses, which were largely offset by about $734 million of hedge gains. This is clear evidence the program worked as intended as the hedge gain offset the move in benchmark rates, while the remainder of the fair value impact was driven by other inputs, which our hedges are not designed to cover. Our exceptional growth year-to-date and high confidence and visibility on future performance demonstrate that our business model is resilient to rate volatility.

That's because of our model and our consistent focus on the 3 drivers that create the most long-term value for shareholders, delivering more members, more products per member and higher revenue per product. Q3 demonstrated strength on all 3. So let me start with members. Member growth is the foundation of our financial results, driving both future revenue and our low-cost deposit funding. For the third quarter, we ended with 17.1 million members, up 35% year-over-year, and we added a record 1.2 million members.

As members deepen their relationship with SoFi, product growth continues to outpace member growth. Over time, that lowers our acquisition cost per product and raises the lifetime value of each member. For the third quarter, total products grew 44% year-over-year to 26.7 million. We added a record 2.2 million products. Products per member rose to 1.56 from 1.54 last quarter and 1.47 a year ago. Approximately 51% of new products came from existing members and 37% of members now use 2 or more products, up from 33% a year ago.

Revenue per product shows how well we monetize those relationships and it increased in both financial services and lending this quarter. We calculate revenue per product as annualized quarterly segment revenue divided by period end products. Financial Services annualized revenue per product was approximately $90, up from $88 last quarter. This was driven by interchange, credit card and SoFi Plus subscription revenue.

Lending annualized revenue per product was approximately $942 up from $920 last quarter. This was driven by growth in net interest income and loan origination fees. Together, more members, more products per member and higher revenue per product drove our 44% adjusted net revenue growth this quarter.

Turning now to our segment performance, starting with lending. For Q3, these strong results were driven by growth in net interest income, which increased 57% year-over-year to $670 million. The balance of our growth came primarily from loan origination fees, which were $271 million, up 2.6x year-over-year. During the quarter, we saw continued record member demand for our lending products.

Personal loan originations were a record $12.6 billion, of which $9 billion was originated for the balance sheet. Our core personal loan product generated a roughly 7.6% risk-adjusted margin in Q3. This consisted of a weighted average coupon of 12.8% and origination fee yield of 1.4%, funding cost of 3.1% and annualized losses of 3.4%. Our ability to generate loans with attractive risk and reward profiles supports our strong revenue growth through both balance sheet lending and our loan platform business. Student loan originations were $2.9 billion, up 96% from the same period last year. And home loan originations were $1.4 billion, up 44% from the prior year.

Turning to Financial Services. For the third quarter, net interest income for this segment was $281 million, up 38% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 13% year-over-year to $244 million for the quarter. During the quarter, we achieved record interchange fee revenue in our Financial Services segment of $52 million, which was up 77% year-over-year and driven by $31 billion in total annualized spend across money and credit card. We also achieved strong brokerage fee revenue of $18 million, which was up 47% year-over-year.

Credit card, in particular, has been a bright spot, and we believe we've cracked the code on profitable customer acquisition and growth. This is evidenced by credit card revenue almost doubling from last quarter. In Q3, we originated approximately $3.8 billion of personal loans, home equity loans and small business loans on behalf of our LPB partners. That, combined with our referral fees and servicing resulted in $153 million of total LPB revenue, up from $3.1 billion in originations and $143 million in revenue last quarter. We also took a significant step forward with LPB by transferring our first SMB and home equity loans through the platform. LPB monetization is driven by several factors, including mix of assets transferred, excess supply and demand as well as timing and structure of new partnerships and extensions. This is a great product for us as it allows us to serve more members in a capital-light manner and our overall goal is to maximize variable profit. As a result, monetization will fluctuate from time to time.

Shifting to our Tech Platform segment. For the quarter, tech platform revenue was approximately $87 million, down 24% year-over-year from the transition of a large client. Excluding revenue from that client, revenue grew 18% year-over-year. Revenue growth was driven by further monetization of existing clients as well as contributions from new clients. Year-to-date, we've added 9 clients, which will continue to grow over time.

Turning to our balance sheet. In the third quarter, total assets grew by $6.8 billion. This was driven primarily by $5.8 billion of loan growth and roughly $1 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $3.6 billion. At the end of the third quarter, our personal loans were marked at 103.3%, down approximately 140 basis points from the prior quarter. Our student loans were marked at 101.9%, down approximately 240 basis points from the prior quarter. And our home loans were marked at 101.5%, down approximately 330 basis points from the prior quarter. In each case, the decline was primarily driven by a higher discount rate. Collectively, there was over an $800 million negative impact from fair value marks, which was primarily offset by hedge gains during the quarter.

On the liability side, total deposits grew by $5.8 billion to $51.3 billion, which included strong growth in member deposits. Member deposit growth reflects more members choosing SoFi as their primary bank, and that funding base lets us grow higher returning assets across our lending products. Our net interest margin was 6.14% for the quarter, up 16 basis points sequentially. This included a 22 basis point increase in average asset yields partially offset by a 1 basis point increase in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future.

Tangible book value grew $2.5 billion year-over-year to $9.7 billion. The tangible book value per share at quarter end is $7.48, up from $5.97 a year ago, a 25% increase. This quarter, we generated a return on tangible common equity of approximately 10%. We're reaching that level while still holding significant excess capital and growing the top line over 40%, and we see a clear path to higher returns as we put that capital to work as our business scales.

Turning to credit performance. Consistent with Anthony's comments on the overall health of the consumer, our credit performance remains very strong overall, performing in line with expectations and driving attractive risk-adjusted returns across all loan types. For personal loans, we saw a very strong credit performance for the quarter. Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 3.4%, down approximately 80 basis points year-over-year and 30 basis points sequentially. This was driven by an improvement in the underlying credit performance as well as growth in average loans on the balance sheet.

The on-balance sheet, 90-day delinquency rate was 42 basis points, in line with the last quarter and the third quarter of 2025. For student loans, the annualized charge-off rate was 63 basis points down 6 basis points from the prior year and up 2 basis points sequentially. The on-balance sheet 90-day delinquency rate was just 13 basis points, in line with last quarter and the third quarter of 2025.

In terms of our regulatory capital ratios, we're very well capitalized. Our total capital ratio of 17% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Similar to last quarter, we continued to deploy excess capital into high-returning loans, bringing our total capital ratio down by 180 basis points sequentially as we normalize toward the low to mid-teens while remaining well above regulatory minimums.

Let me finish with some additional color on our 2026 and 2027 guidance. For Q4 2026, on a segment level, we expect approximately $785 million of revenue in lending, $550 million of revenue in financial services, $90 million of revenue and technology platform and corporate revenue in line with the third quarter. For total adjusted net revenue of approximately $1.375 billion.

For 2027, our preliminary outlook assumes 2 rate hikes in the year and a 24% effective tax rate. Overall, Q3 was a strong quarter, and we continue to have strong momentum in our business, more members, more products in rising revenue per product showing up in revenue, margins and returns.

Let's now begin the Q&A.

[Operator Instructions] Your first question comes from the line of John Hecht from Jefferies.

SMB vending, it's a relatively new category for you guys. It seems like it's got a lot of momentum and a decent amount of strategic focus maybe take a any through what is the specific target market within SMB, the characteristics of the borrowers? And how do we think about call it, the prioritization of that as we go into 2027.

Thank you, John. First thing I'd say is the SMB business is at a very nascent stage. We have driven revenue over the last, call it, 5 years from lead referrals in the small medium business. It really started when we hit COVID and the government was providing PPP loans for SMB companies, and we were having a lot of people come to SoFi looking for those loans, which we didn't provide at the time. We quickly stood up an HTML page for people to apply for the PPP application and we realized there was a big opportunity in our existing consumer customer base to also provide SMB loans to them as many were small business owners.

Over that 5-year period, we've kind of incrementally invested at a very low rate. I think of it as a seed investment to see if we could grow the business. It reached the scale in 2025, that was clear to us, it was time to become a principal in the business and that's not just lending, but it will also be other products and services outside of lending, including checking and savings, et cetera. And so we launched that business as a principal in 2026. I don't want anyone to think it's 1 of the great Is. It's not 1 of the 8 businesses that are generating annual revenue of over $100 million. It's still a start-up business.

But as you mentioned, has great prospects and 1 will invest in over time and we'll continue to grow, while getting the credit rights important, building relationships on the -- building relationships and the unit economics are important. Why? Because these are high repeat customers. Businesses need capital to grow, when they take out a loan, it helps them grow. That gives the motivation and economic incentive to take out another loan and then another loan. And just like the largest corporations in our country, that capital fuels good growth.

And so we want to make sure we build relationships, first and foremost, achieve the right unit economics, and we continue to expand that over and over on a nice linear line. So we're really pleased with where we are, but it's nowhere near where it will be in the future.

Your next question comes from the line of Kyle Joseph from Stephens.

Just want to hone in on the '27 outlook a little more. If you could walk us through some of your high-level assumptions in terms of how you're thinking about each segment contributing to those -- to that outlook?

Before Chris give you the particulars. I just want to add a couple of points. This is a change in behavior for those that have been following us as a public company. We didn't change our behavior because we had the same visibility we've had in the past. We changed our behavior because of the visibility that we have. We've made a considered effort throughout this year to invest in long-term durability of growth you hear us reference exceeding the Rule of 40 for 20 consecutive quarters.

At the end of 2025, when we looked at the incredible growth opportunities we had in front of us that weren't currently funded in 2026, we made a conscious decision to accelerate our investment in those startup businesses that are not in the Grade 8. We needed to drive revenue that would cover those expenses and still deliver the earnings that we had previously given an outlook for in 2026 and beyond. We sit here now in 2026 with $1.4 billion reported in Q3 of revenue. That's -- we also generated $1.4 billion of cash revenue in the quarter, which means we've built a sustainable top line revenue number that can allow us to continue to invest into the future and not just invest in the future in the new businesses, but deliver to the investors greater profitability.

Our net income margins for 2027 or 20%. We will still be growing significantly faster than any other financial services company and many technology companies in 2027 when hitting the low bound range of our long-term net income margins in the mid-range of our long-term EBITDA margins. And so we're going to continue to deliver both revenue growth and good profitability growth with expanding margins. And most importantly, we'll continue to move up towards our goal of return on tangible common equity of 20% to 30%. There's been no point in the company's history that we're at right now where we control our own destiny more than we have in the past and our conviction on our business and the visibility of our business is as strong as it is to give you guidance at the end of the third quarter of '26 for all of 2027.

Chris, let's go through the segment.

Yes. In terms of the overall '27 guidance as it relates to the segments, we're expecting lending to grow 25% year-over-year. we're expecting tech platform to return to growth of 25% year-over-year, and we're expecting our Financial Services segment to grow 35% year-over-year. And from a margin perspective, we're expecting a margin profile generally in line with where we are from a segment perspective right now.

Your next question comes from the line of Andrew Jeff -- pardon me, Andrew Jeffrey from William Blair.

I like to focus on the ARPU KPI and obviously, member growth has been fantastic. Anthony, can you sort of dimensionalize TAM for us? I think you've talked about 40 million to 50 million potential members, where does ARPU go? I mean, can we think about this ultimately is somewhere in the neighborhood of a $30 billion TAM. How are you guys thinking about that over the next several years?

Yes. I don't mean to correct you, but I just want to make sure people understand the difference. Typically, when the word ARPU is used their acronym, it's average revenue per user. Our monetization metric that we referenced in the earnings call, and we've referenced in the past is revenue per product, not per user. And obviously, a member is our user definition and the products per member are greater than 1 and their revenue per product is on an individual product basis.

What I'd say is this, you have to look at it at two different levels. One, we shared with you the annualized revenue per product rates for lending and the annual revenue per product for nonlending FIS businesses. And so there's a lot of upside in many of our individual businesses, and I'll kind of walk through them.

On the financial services side, we have significant upside in revenue per product and invest. The ratio of the revenue that we generate relative to our assets there is well below benchmarks. That will increase based on a number of factors. One, increased assets in that account. Two, more products and services, which will also bring in more assets that involve fees. So certain retirement accounts and trust accounts were very attractive from a revenue relative to AUM standpoint.

In addition to that, we'll continue to benefit from more activity across the products in each individual accounts. So obviously, options and margin create more revenue per asset than the rest of the revenue streams. And those are products that people don't use when they first open an account. Many of our investors are new and novice investors, but they quickly become very talented investors and very astute to the different ways to drive returns. And so that's on the invest side.

The credit card side, we're just getting started. The monetization of the credit card business is really kicking in. We've developed a very good playbook, which I won't go into detail because I don't want anyone on the topic in the credit card business, we're building our credit card business in a responsible way and we feel like we've now the ability to leverage the financial services productivity to not just acquire new card members, but for those part members to become -- to use our card as top of wallet from a primacy standpoint, and our effective interest rate there is going up by the day because we're not utilizing the very possibly 0 balance transfer initiatives to do that. So a lot of upside in credit card as the effective interest rate goes, but also as balances increase.

In SoFi Money, as deposits grow, our monetization within SoFi Money increases, and we continue to see increasing deposits on a per account basis as it relates to that. Someone mentioned -- or John asked a question about the SMB business. significant monetization opportunity as it relates to that. Our LPB business, the monetization is going to be relatively range bound. So I wouldn't put a lot of expectations around that.

SoFi Plus, great monetizing business. We will add more products and services to that over time. Today, it's $10 per month. You could see us adding some premium services that have average revenue per product on top of that.

As you think about the lending businesses, I would say they generally are pretty stable. Personal loans, student loans, in-school loans and home loans are all relatively stable as it relates to revenue per product. There's a lot that goes into that. Obviously, the average loan size, the weighted average cost of capital -- or so the weighted average coupon that we charge, the loss rates that we have and our cost of funds impact all of that. But they're relatively stable and an easy way to kind of forecast the revenue that we generate off of the assets on our balance sheet as it relates to loans.

But I do want to make the broader point. The weighted average revenue per product will likely come down over the time period of 2026 to 2030 because the mix of the lower revenue per product businesses is going to grow faster and increase relative to the higher revenue per product businesses in lending. That's not a bad thing. It's not a bad thing because that's more than offset by the growth in products of those financial services businesses versus the growth of the products in the lending business.

In totality, we believe we have a competitive advantage with the highest lifetime value, which allows us to deliver the best rates on loans, the best rates on checking savings, the best products and services you can get outside of the products free certified financial planners and other things have great value in SoFi Plus. So I would think about the products growing, as we mentioned, to $100 million. I would think about the members growing to a point of at least getting to 2 products per member. And then in addition to that, you can keep average revenue per product flat to slightly down. Our own individual forecast has it down, but it's going to depend on the mix.

Great color.

Your next question comes from the line of Dan Dolev from Mizuho.

Excellent results today. Congrats. Maybe, Chris, can you expand a little bit more on the ability to fund 2027 growth organically?

Sure. Thanks, Dan. So Anthony made this point on the call and I reiterated it, but our 2027 outlook is going to be funded organically through 2 levers. First is utilization of existing excess capacity. And the second is through organic capital creation through our expanded earnings that we outlined.

So in terms of that first lever, today, we have about $9.6 billion of equity capital that's Tier 1 plus Tier 2 capital, and that translates to about $71 billion of risk-weighted asset capacity and that's assuming a 13.5% risk-based capital ratio. And that's $15 billion above where we are today at $56 billion of weighted assets.

In terms of the second lever, organic capital creation, we just guided to approximately $270 million of net income in the fourth quarter and $1.28 billion of full year 2027 net income and that earnings plus stock-based compensation translates to approximately another $14 billion of incremental risk-weighted asset capacity at that same risk-based capital ratio of 13.5%.

So between the 2 levers that we have, we have about $29 billion of risk-weighted asset capacity, which is not planned for nor required to meet our 2027 guidance. As we look beyond 2027, our continued expansion in ROEs as well as organic capital creation is what's going to bind and support our overall growth.

Your next question comes from the line of Devin Ryan from Citizens Bank.

A question on interest rates and implications on the model. Obviously, this year has developed differently than you thought a few months ago, even and going back to the beginning of the year as well with rates continuing to kind of bounce around here, but you're still performing quite well on that front. So as we think about a world where rates potentially shift again and potentially lower. How should we think about the other side of that equation? Hedge portfolio seems like it's working quite well. Would lower interest rates or abrupt change from here still be a tailwind to the model? Or are there other offsets just based on how you guys are set up?

So I'd say 2 things. First, the last time rates went up prior to this, I would say, last 18-month time period, we actually slowed our growth because I was concerned about the macroeconomic environment and higher for longer. Part of that decision was also based on what the state of our other businesses were outside of lending and what our capital position was.

We had a very unique opportunity in 2026 to test our ability to grow through a higher rate environment and how the business would perform. What afforded us that opportunity is that we had a lot more capital on our balance sheet, our business was a lot more diverse and we can lean into it to see if we had the ability to raise the weighted average coupon that we charge relative to the higher benchmark rates to offset that and keep our unit economics where they were in addition to also hedging the business.

And what I'd said in my comments is exactly how I feel. I think we can operate just as well in a high rate environment as we can in a low rate environment. You never know what you can truly do to until you get there, but the results are very clear. Growing revenue at 44% faster than we did in the prior 2 quarters of the year, with rates being the most volatile that they have been is a true testament to the demand for our products and our ability to meet that demand very well.

So in a lower rate environment, there are businesses that do better than others. The housing market will pick up meaningfully. That is a low capital business. So in some ways, it becomes a better margin business with less capital because those are agency mortgages that we don't have to hold on our balance sheet. That said, they don't contribute to the visibility of earnings the way that personal loans do or student loans, given the duration of those loans relative to the home loans growing off the balance sheet.

So there will be gives and takes, but our outlook that we've provided is one that we can deliver if rates stay where they are and go higher and we can deliver if rates go lower. And I'll let Chris add in any particulars.

Nothing else to add.

Your next question comes from the line of Patrick Moly from Piper Sandler.

Chris, maybe just following up on the segment framework you laid out. If I take the 2 guide at the 4Q segment level and then apply the growth rates that you gave there for 2027, I get something like $6.7 billion, which is about $300 million above the guide -- so maybe could you just help me square that difference? Is that just a step up in the corporate line? Or is it conservatism that you baked into that number?

Yes. Yes, there's a slight uptick in the corporate line is the direct and straightforward answer.

Your next question comes from the line of Kyle Peterson from Needham.

Great. And nice results. I wanted to ask on the loan platform business. Nice to see the volumes this quarter kind of back up and were above expectations. So maybe if you could speak a little more to what the demand environment looks like there, both from existing and potential new partners? Just any color there would be great.

Yes. Overall demand remains really robust and strong. We just had record originations that we did on behalf of others of $3.8 billion and really strong revenue at $153 million overall demand that we're seeing remains extremely strong across all asset types. So our traditional unsecured personal loan demand from existing partners as well as new partners continues to grow. We just signed up 2 new partners in this quarter, and we're in several other discussions with others.

We talked about during our last quarterly earnings call that we signed a partnership with BasePoint for $3 billion over 3 years loans. So there's really strong demand from capital markets participants there. And as Anthony mentioned, it's a relatively small part of the business today, but we're legging into it and we'll continue to expand we started issuing our first close on seconds through the platform as well, and there's sufficient demand to continue growing well beyond where we are today.

So where you're going to see the growth is going to continue to be sustained momentum in our unsecured personal loans, but more importantly, increasing demand from closed-end seconds as well as other asset types. We're already pacing ahead this quarter ahead of our $3.8 billion of originations that we did in Q3. And overall take rates are strong in this quarter.

Your next question comes from the line of Lance Jessurun from Scotiabank.

On the tech platform, you've guided the segment to 25% growth next year. Can you help us kind of discuss how much of that comes from third-party clients versus your own products running in the platform. And then the 9 clients this year, how does that kind of ramp into that number?

Yes. What I'd say is I don't look at the business that way. We're building a technology platform that serves SoFi. We have the most complex needs of any fintech company given we have the broadest array of products available solely on a digital platform. We built a technology platform a set of businesses because those were things that SoFi would need over time, but it also turns out that the industry needs them as well.

And so given the product superiority of what we're building, our issue processing is world-class. We have the most modern core in the cloud now that SoFi is now onboarding new members to, not only do we have a 4 that we're using for checking and savings, but bid-business banking was built on the back of the core, not only that, but we were able to launch Crypto [indiscernible] hold on the back of the core. And you'll see our product evolution and launches being faster and faster because we own our own core and it's the most modern in the boot.

In addition to that, we've built out payments as a service repayment hub, which, again, we don't have to align other people to provide. And then last, the fourth growth pillar is fraud and risk, which clearly at our scale of 17 million members, $1.4 billion of revenue this quarter and 27 million products, we are getting attack constantly, but doing a great job of defending our members' assets as well as our shareholders' business.

And so when we build products for SoFi, we are building them and selling them to other people, and we'll generate revenue from both of those assets. Because we're a Fed bank holding company, and we're a national OCC bank, the relationship between SoFi Technology Solutions and the bank is one that has to be at arm's length. They actually have to negotiate arm's length negotiations and rates and fees on those services.

And so the way I think about it is that revenue that the SoFi businesses are paying SoFi Technology Solutions is cost we would otherwise have going outside the system, but instead, they're in the system and they're being allocated to the assets that are being built appropriately. I couldn't even tell you what the SoFi revenue number is in the SoFi technology platform. I know where to look it up if we want to look at it, but it's not something I think about. Why do I not think about it? Because we're building a business that can grow products to 100 million members by 2030. And that can grow members to support that right of about $50 million. That's going to require great technology scaling and great innovation as we start to enter an entirely new era of 2 technology super cycles with AI and blockchain, which we're capturing faster than any other fintech in the United States and, quite frankly, faster than any large bank.

We are the only national bank that is issued a payment stable coin and tokenized deposits. We are the only national bank that has all of its products available on a digital platform and no need to speak to anyone to use those products. that requires great technology in a world that is wrought with people that are trying to attack us, at the same time, ensuring we have the reliability, 24/7, 365 for our members. So it's incredible strategic asset for us that manifests in value creation across internal businesses and external businesses, and we have an obligation to quantify that value given we are a regulated bank.

Your next question comes from the line of Moshe Orenbuch from TD Cowen.

Chris, one of the areas of pushback that I get from some investors is, is the sheer kind of amount of personal loan originations and how much that's grown and the peers. We don't have the industry data yet, but it's grown faster than the industry. Could you talk a little bit about what the -- your forecast is going into 27 on that? Like how do you think about the ability to originate either at these levels higher or where are you thinking?

Yes, absolutely. So we do expect continued momentum in the PL business. But where you're going to see the growth in 2027 is going to be coming from other asset types like our home loans business as well as Solar. So you're not going to see the same type of magnitude in overall originations in the PL business.

But at the end of the day, what we're focused on is delivering the best risk-adjusted returns that we can for our shareholders, and we're delivering really strong returns through our personal loans business. Right now, our risk-adjusted margin for PL is north of 7.5%. And that's increased by over 100 basis points year-over-year, primarily as a function of an increase in origination fees, which were up 2.5x year-over-year, but also from improving losses.

So net-net, we're focused on risk-adjusted returns at the end of the day. We do expect continued momentum in the PL business just given the overall market opportunity that we have today, but you are going to see a little bit of a mix from personal loans towards home loans and student loan rate financing.

Your next question comes from the line of Will Nance from Goldman Sachs.

I wanted to ask a question on the pricing environment in the personal loan business. It looks like the weighted average coupons have been ticking down to the last couple of quarters. And obviously, it's great to see things like that interest margin holding in, despite higher funding costs. But I was wondering if you could provide some color on just how pricing has evolved in personal loans and how you're thinking about kind of the moving pieces there between coupon rates and spread and how much that may being made up on the origination fee side?

Yes. Yes. And I think you hit on it with the origination piece. But we're continuing to price originations to deliver really attractive risk-adjusted returns. And it's important to note that we're not optimizing for any single variable in isolation in that equation.

Historically, weighted average coupon was the primary pricing lever for us. But increasingly, origination fees are an important part of the overall economics. Today, more than 50% of all new PL originations include these origination fees, and we generated approximately $270 million of origination fee revenue in Q3, like I just said, up 2.5x year-over-year and 36% sequentially with the vast majority coming from personal loan borrowers.

So if you loo at WAC plus our current origination fee yield, it was generally flat sequentially. And then after you incorporate lower losses and funding costs, our overall risk-adjusted return increased by about 100 basis points year-over-year.

I think the other thing I would note is the overall power of origination fees and what it does to the return profile of these assets. And it's why we're leaning in so heavily in driving that mix and giving our members better selection If you look at an asset or a borrower who pays an origination fee, the overall CPR is about 600 to 700 basis points better than someone who takes out a loan without an origination fee, which thereby extends the overall life of the asset.

In addition to that, the CDR that we've observed on borrowers with an origination fee is about 40 to 50 basis points better than those without. So net-net, you're seeing about 200 to 300 basis points of ROE improvement from assets that have origination fees versus those that don't. So we're looking at the overall Mosaic focused on risk-adjusted margins at the end of the day, but origination fees are playing a much more important piece of the puzzle today.

Your next question comes from the line of Don Fandetti from Wells Fargo.

Can you talk a little bit about your bank funding and kind of the confidence in your ability to grow checking as a percentage of deposits relative to online savings and just lower the overall funding cost of the company?

Yes. What I'd say is I would not look at our AP wide on our products that we give consumers the way you would look at a traditional bank one, we're not just a bank. We use technology to deliver our services. We're a fintech. And part of being a fintech means we don't have a physical presence for people to buy and stop in and open an account. Everything we do deliver digitally. We don't do outbound calls to acquire people either. So our presence is driven by the digital distribution that we have.

One element of digital distribution is what's your value prop. One element of the value prop is what's the leading interest rate. So we use the interest rate for customer acquisition to replace the cost of physical locations to replace the cost of human beings, and it's a great return for us. So we think about that interest rate not just in aggregating deposits, but we also think about it as aggregating new members and those new members then take out more products and the more products they take out against the revenue per product to drive more returns and it drives the flywheel.

SoFi Money is the tip of the sword. It is the best product that leads to cross buy. It also gives us a lot of data on our member. It gives us information on what they're paying on their mortgage. It gives us information that they may have loans. It gives us information they may have credit card debt. It gives us information they may have excess cash sitting there that's not being invested. We're not earning interest. And so it's a strategic product that you can't just look at as a cost of funds.

Chris will explain this in more detail in a second. It's actually cheaper for us to use broker deposits to fund our business than SoFi Money deposits. We will use a mix of them to do it. We're managing to an overall return basis. And when we think about an overall return basis, it starts with our net income margin. And we've said that we can have a net income margin of 20% to 30%. We're forecasting for 2027 a 30% incremental net income margin, and that should become our long-term margin over time, what was given in a range of 20% to 30%. We'll actually be at 20% net income margin next year and still growing incredibly fast.

And so we're looking at what is our net income margin? And then what is our revenue to equity ratio. And as our mix moves from 42% of fee-based revenue to 50% fee-based revenue or higher, the revenue per equity ratio will approach 1, and that will get us to a return of 20% to 30%.

So I'll let Chris give you the particulars on how we think about cost of funds overall and the role of broker deposits and retail deposits.

Yes, absolutely. So overall, we have a full set of tools to fund our originations, including member deposits, brokered CDs, warehouse facilities and then capital markets activities through securitizations and the whole loan sales.

So when you see periods of a lot of rate volatility like we've experienced over the course of the last few quarters, we're going to leverage things like brokered CDs and wholesale funding more heavily. However, the decision is not simply whether wholesale funding is cheaper than deposits in isolation, but rather the marginal cost of funding incremental asset growth versus repricing the broader member deposit base. So we use a mix that provides the best combination to Anthony's point of cost, liquidity, duration and risk-adjusted returns.

Our member deposits remain the long-term foundation for funding our assets with 80% to 90% deposit funding, and that's expected to be the case over time.

The last point I'd make, I'm super excited about this. [indiscernible] AI, and most people think about AI being and you're calling it -- the government is now calling it SI super intelligence. So I want to use SI from now on because I want to make sure we're aligned with all of our regulators.

So a lot of people see SI as a risk to the deposit business. I don't see SI as a risk to deposit business. I think it's going to add a tailwind to what we do. Why? It will provide more transparency of what rates are avail. One of the things that I say all the time to the team is we have great product market fit. As we increase our absolute dollars linearly of marketing, we're not seeing an escalating rate in our customer acquisition cost, which means the #1 gating factor of our noncapital-related businesses is awareness, the more awareness we have the more products we drive. We're driving a lot of their awareness through our marketing today.

But imagine a world in which there's not just search engines to see what rates are out there, but there's actually agents that do searches. And not only are those agents doing searches on what rates are available, they're delineating between the rates, what's hidden fees, what's the requirements, what's the minimum deposits? What's the limits? And they're doing a great job of that. But it's nowhere near where it can be. In a world in which there's 100% transparency, still fight wins every time. Why do we win every time? We have the highest lifetime value, which allows us to give you better rates on loans, better rates on deposits, better products and services. So I love what SI is going to do for the world as it relates to transparency and awareness. In that world, we think we win every time.

And we'll continue to build the network effects and the competitive advantages that allow us to maintain that lifetime value superiority. Let's take the next question.

Your next question comes from the line of Reggie Smith from Loop Capital.

I guess, rate performance on the member growth and deposit growth this quarter. I was somewhat surprise at SoFi Plus you guys had great in last quarter. It looks like you didn't add as many SoFi Plus members this quarter. I think I just saw an end in my act for like 4.4% [indiscernible] are, what's going on there? Are you surprised of the uptake there? And are you still targeting 1 million SoFi Plus members by the end of next year?

We are targeting 1 million SoFi Plus members by the end of next year. In fact, I'm holding the team accountable to achieving 1 million of SoFi Plus members before the end of next year. I had said proves that to be disappointed if we didn't get to 1 million SoFi Plus members by an earlier date than next year. And I'm challenging the team to get there.

In the quarter, in Q3, our SoFi Plus growth was below what we expected. It was primarily due to us making sure that we had the right elements in place as we make offers and as members and nonmembers set up for the product. Bottom line is the growth wasn't where we anticipated it would be, but it was fundamentally due to some of the various factors. And so we had to change some things, which impacted the growth.

That said, those things are fixed. We're in Q4, the growth is reaccelerating again. And I think the product that you see today will involve every month. I am pushing the team incredibly hard at putting more value into SoFi Plus. Think of it as Prime for Amazon. When Amazon first launched Prime, I think it was $99 it's a long time ago, $99 for free shipping. And I was thinking to myself as a research analyst, that, why aren't people going to pay $99? They don't order enough books music and video to get a return on that $99. We'll just pay the shipping. And then Amazon started to put other things of value into Amazon Prime, like free music and free video. We will continue to put more value into SoFi Plus beyond just delivering the best of SoFi and the other product.

So when you use SoFi Plus, we want to give you a better money product, i.e., higher API. We want to give you a better and best product, i.e., higher matches. We want to give you a better credit card product, i.e., higher rewards, lower interest. We want to give you better home loans. In addition to that, we will have SoFi Plus first product. So we're working on subscription cancelizations. There are other companies that charge $999 just for subscription cancelization. It will be free as part of SoFi Plus, not an incremental fate. We bought a company composer, which is AI-generated portfolios. You'll get 1 or 2 of those for free when you use it outside of SoFi Plus, but with SoFi Plus, you'll get as many as you want for that price.

So SoFi Plus will continue to evolve is not going to be static. We're challenging the team every day to increase the value there. Why are we so focused on that because it is literally the best example of the financial services productivity. 85% of the SoFi Plus members are existing members. 45%of them take out another product. They were already our members. Why didn't they take out that product before SoFi Plus because they weren't aware of it, where the value prop wasn't strong enough. And so it creates a great flywheel that we want to keep spinning and spinning faster and faster to drive more members, more products, more revenue per product and it just keeps feeding on itself.

And if we don't get to 1 million by our deadline, so what, we'll get there eventually. There's 17 million members. You can't tell me we can't get at least 1 million of them Brazil by plus, I think it should be several million, but 1 step at a time.

Your next question comes from the line of Craig Maurer from FT Partners.

Curious on the mix between LPB and balance sheet going forward. It was weighted a little bit more towards balance sheet this quarter, and we're getting a lot of questions on how you intend to shape that moving forward?

Sure. So overall, we feel really good about the loan demand that we have, and we expect the origination volumes through the balance of the year and into 2027. As we've said on prior calls and previously, we're not managing to a predetermined split between loans that we retain on our balance sheet and loans that we distribute through our loan platform business. One of the strengths of our model is that we have multiple ways to monetize that demand. And we're going to continue to allocate originations based on where we see the best risk-adjusted returns and long-term durable revenue profile.

Today, we have a really strong capital position and the flexibility to retain more loans and that creates the greatest long-term value for our shareholders. At the same time, demand from our LPB partners remains really robust. We're starting to expand into new asset types and we're seeing really good momentum from existing partners, and we view LPB as an attractive, profitable and capital-efficient business. So I wouldn't expect us to think about this as an either/or decision. We expect both the balance sheet and LPB to continue to grow with the mix determined by capital allocation opportunities, market conditions and partner demand rather than a fixed target.

Your next question comes from the line of Gus Gala from MCH.

Anthony, as we think about banks and fintechs adding more and more products and we think about the financial services blue, right, promise. How has the moat and the sustainability changed I mean, we go back a few years, I think the deposits on being and the charter were big items. This is something that more and more people are pursuing. Clearly, you're standing out in terms of the cross-sell and your cost to serve. Just help us think of that going forward. more strategic question. And I just wanted to clarify on the calendar '30. Do we -- are we kind of seeing, hey, we're at that 50% fee mark? And then are we in that 20% to 30% return on total capital range.

I'll take your first question and then Chris can answer the second one. So this is going to be somewhat of a long answer, but stay with me for a minute. When we -- when I got to the company in 2018 and kind of laid out the strategy, which is exactly what we've done since then and the mission. One of the things that you would have seen on the presentation I gave to the board when I was interviewing for the final interview with the Board in December of 27 is a focus on unit economics. And so companies have done incredibly well with big moats around their business only when they're low-cost operators.

We're not necessarily trying to be a low-cost operator. We're trying to be a profit maximizer per unit economics. And so each of our products when the team is building out their initial business plan, we look at where can the long-term unit economics be? What's the amount of variable profit that we'll generate on that particular product over the long-term. You can imagine when we start that product, the unit economics are not attractive. In fact, credit card is a good example. We have lost a lot of money in the credit card business to get to where we're at. But the unit economics in the long-term are super attractive and it justifies.

So each one of our products, we're trying to actually have superior unit economics relative to everyone else. In addition to that, we have a breadth of products and services, so we have an opportunity to actually have more products per member than anyone else. The combination of having more products than anyone else per member and each of those products having superior unit economics gives us the highest lifetime value. It's the combination of both of those things.

And as long as we have the highest lifetime value, it's like being Walmart or Amazon and being a low-cost operator, they can give their consumers the best prices in the store on the same like-for-like products as anyone else. They can give better services in the store than anyone else because they have lower cost and therefore, more margin to give away. And that drives the retail productivity loop, which is a concept I made a long time ago. And so -- I mentioned a long time ago installed from a great investor, Steve Mendel for [indiscernible] Capital.

I apply the same thing to entertainment industry from entertainment productivity loop. Well, that now applies to the financial services for SoFi. But it actually starts with unit economics across each of our products that are superior and then having more products to offer and having more products per member and everyone else and better unit economics on those products.

That also is important that we are indifferent with what product you use first. if we have the best unit economics in that product and it can survive on its own, which it must, then we're indifferent to what you use, and we can acquire more people, one, because we have the product; and two, we don't necessarily want to shy away from that product. There are many of our products banks don't even offer, which is a huge win for us.

There are other products that are new brainer products. Your federal students are at 8%. We're giving them to you at 6%. We still make a great return on that product. Your credit card debts at 25%. We're giving you a personal loan at 12%, again, a no-brainer product. Deposits, checking and savings a little bit harder, credit card a little bit harder, but all designed to have superior unit economics. So when they add together, we have the highest lifetime value and that's what builds are on top of one product at a time. Chris, why don't you talk about where we'll be in 2030 on mix and ROTCE.

Yes. So I guess specific question was in 2027 on both. So right now, where we are is a 10% ROTCE. As a reminder, ROE is the product of net income margin multiplied by revenue to equity. Today, we're forecasting that our net income margin for next year is going to be 20% with an incremental net income margin of 32%. As we continue to hit our incremental net income margins, that becomes a steady state long-term margin. So we're going to get to -- we expect 30-plus percent net income margins in the long-range outlook.

And then it's about increasing our overall revenue to equity. Today, we're at about 57%. That's up from 55% last quarter and 50% the quarter before that. So we're continuing to expand that multiple as well, and that's a function of growth in fee-based revenue, which will continue to grow over the course of the next several years.

The other thing that will drive that is a greater mix of technology platform revenue, which we gave you an outlook for growth on. But obviously, that business doesn't require capital and the faster it grows and the bigger it gets, the more it will drive that revenue to equity ratio to where we need it to be.

With that, operator, I just want to share some closing remarks and thank all of those that have dialed into the call today.

The third quarter was excellent by any measure. But the opportunity ahead of SoFi is still massive. We approached 2027 with the clearest conviction in our mission and the deepest confidence in our strategy. Thanks to the tenacious execution of our team, we've proven so far as resilience in rising and declining rate environments.

Leading our team is a privilege, especially this year as we've methodically delivered results, that directly refute many of the prognostications of the heaters of the great business we've built to help Americans achieve their dreams. I love where we stand today. We have reached the financial scale and capital position where we can fund our planned growth in 2027 organically and control our own destiny. It's clearer than ever as SoFi's member base scales, our product ecosystem becomes broader, engagement increases and the opportunity to generate revenue from which relationship expands.

The model is working. It's why we're confident that by 2030, we can reach 100 million products, up 4x from today. It doesn't take much imagination to see how that can drive 4x earnings. Don't get me wrong, that is a very ambitious goal and even achieving 3x from where we stand today in products and earnings would be an incredible achievement from where we stood in 2018 and where our stock is valued today. But it's an achievable goal given where we stand today with the right leadership and execution of our proven strategy.

Rest assured that we will continue working every hour of every day to deliver value to our members clients and shareholders. Thank you, and see you next quarter.

Goodbye. This concludes today's call. Thank you for attending. You may now disconnect.

All right. We are going to kick it off now and kicking us off for the entire conference is Chris Lapointe from SoFi. Very excited to have you. Chris has been the long-serving CFO since 2020 and has been at SoFi for longer than that. So thank you for being here.

No, I appreciate you having me. Thanks, Will.

All right. Let's kick it off. I think it might be good to start with the state of the union here. You're coming off several years of really rapid growth. Personal loan originations have grown tremendously. SoFi Plus has seen rapid membership growth kind of straight out of the gate, and you've continued to diversify the product set. Where do you think you are in the evolution of the business and sort of the broadening out from sort of the core personal products?

Yes, absolutely. So we've had a tremendous start to the year here in 2026. We've generated approximately 40% year-over-year revenue growth in each of the first 2 quarters and approximately 30% adjusted EBITDA margins, which puts us at a produced Rule of 40 score of about 70, which is your revenue growth plus adjusted EBITDA margins, which is really unusual given our size and scale as a business. What's just as important is the fact that this isn't a 1- or 2-quarter phenomenon. We've been consistently outpacing the Rule of 40 for the past 20 consecutive quarters. So the last 5 years, we've had a Rule of 40 score north of 40%.

What's even more important is since 2022, our members, our products and our revenue have all compounded at more than 30% each year. So what we're most excited about is despite all of the success that we've had, especially recently, it still feels like we're in early days as a company. It feels just like we were back in 2018 when Anthony and I joined. At that time, we only had 650,000 members. Today, we're adding that many members every 7 to 8 weeks. And the quality of that membership is continuing to improve. This past quarter, we had -- we added double the amount of products relative to members.

We added 2.2 million products versus 1.1 million members, which is the first time that we've achieved that ratio and cross-buy accelerated to 51%, meaning 51% of all new products that were taken out came from existing members on the platform, which demonstrates that our financial services productivity loop and everything app strategy is really working and hitting an inflection point. At the same time, we have all of these newer businesses like SMB, SoFi Plus, SoFi USD, STS, all in their early stages of growth and profitability. So the combination of these maturing businesses growing at the pace that they are as well as all of these new growth vectors makes us really excited to be at the company at this point in time.

Yes. So I guess one of the big changes this year was the pivot to growing the balance sheet and pivoting away slightly from the third-party loan buyers. Q1, you channeled $5.4 billion of loans to the balance sheet. I think that stepped up to around $7.5 billion and then around $10 billion to $11 billion after that. Can you walk us through just the decision framework each quarter? And then talk about how much runway there remains to keep growing the balance sheet at that pace before capital starts to become the binding constraint?

Yes, absolutely. I wouldn't define this necessarily as a pivot away from loan platform business partners. We had excess demand from those parties in each of the last 2 quarters. In fact, we didn't fulfill all of the demand that we have. What I would say is the assessment of risk-adjusted returns and what risk-adjusted return assets would create the most durable revenue given our current capital position is what actually changed. We have a really high risk-based capital ratio, which is far north of the regulatory minimum and where we think we should be operating the business.

This past quarter, we originated $10.7 billion of personal loans, $7.6 billion of which came to the balance sheet, $3.1 billion of which went through our LPB business. And what I would say is we don't manage to a predetermined split between what goes on the balance sheet and what goes through the LPB business. What we're managing to is what's going to deliver us the best risk-adjusted returns given the demand we see from borrowers, the demand that we see from our capital markets partners and the durability of the resulting revenue that we're able to generate.

If we put loans on the balance sheet, we're able to generate predictable recurring net interest income that gives us really good visibility over the course of the next 6 to 8 quarters. On the flip side of that, we can generate revenues through our loan platform business and distribute loans that way, which is much more capital efficient and enables us to serve more members than we otherwise would be able to do. So putting the 2 together, we view them as complementary, and we're going to manage the business to the best risk-adjusted return at any given point in time, given where our capital ratios are, and that's what you saw in Q1 and Q2.

Got it. So as you think about the go-forward levels of capital and funding, risk-based capital came down to 18.8%. You said low to mid-teens is the right long-term level. You have a lot of funding levers between the deposit base, the LPB partnerships, securitization pricing, which has been very favorable. How are you thinking about the funding mix and capital needs over the next couple of years?

Yes. I'll hit on both the funding mix and the capital separately because we have a lot of flexibility across both of them. From a funding perspective, deposits are the foundation of our funding mix. Right now, 93% of the funding stack is coming from high-quality deposits, most of which are from direct deposit relationships. Right now, over 90% of our member deposits are coming from direct deposit members. And we can supplement that funding with unused warehouse lines.

We have significant capacity from a warehouse perspective. We also have great access to the securitization markets, whole loan sales. And you mentioned the 86 basis point spread that we've been able to achieve through the resecuritizations of loans that we put to the LPB business. That's a really good proof point of the demand that we have for loans that are originated by SoFi and the quality of those loans to be able to price those at industry-leading levels.

On the capital front, we have an 18.8% total risk-based capital ratio, which is well north of the 10.5% regulatory minimum that we have and the low to mid-teens level that we want to operate at. The thing I would say is that our capital capacity is not static. As we continue to grow our profitability, our organic capacity is going to continue to increase. At the same time, we're starting to drive more growth into fee-based revenue streams like LPB, like brokerage, like credit card, et cetera, which is going to naturally increase our ability to use less equity to drive even more revenue. So taken together, those levers give us a lot of confidence and flexibility in the model and will be used dynamically going forward.

And then I guess when you think about capital adequacy then for the expected growth you have, like do you foresee any changes in the funding profile of originations between kind of on and off balance sheet?

It's going to be dynamic. Like I said, it's going to be based on risk-adjusted returns. At this point in time, we don't see the need to raise any equity capital under our current operating plan, given where our capital ratios are today and the growth that we're seeing in the loan platform business as well as other fee-based revenue streams.

Got it. Just I guess, on that note, so total originations hit $14.8 billion in Q2, records across 3 of the major products. You sized the TAM is roughly $1 trillion of prime revolving credit card debt. How do you frame the opportunity you're actually going after here? Is this a share gaining story from other personal lenders? How much of the growth do you think is sort of gaining share from existing lending activity versus taking share from credit card balances that have never been refinanced?

I think it's both. But I think the larger opportunity is taking existing revolving credit lines that are outstanding and refinancing them into our personal loans. Right now, you have a lot of prime borrowers who have revolving debt at 25% APY. They could come to us and take out a fixed rate mortgage at half the price at 12%, reduce their interest expense and put themselves on a path to retiring that debt in relatively short order.

One of the inhibitors to that is the fact that it's so largely dependent on awareness. A lot of people just don't know that they can go and refinance their credit card debt into a lower fixed rate personal loan. So we think there's a ton of headroom in that space. We've grown originations quite meaningfully over the course of the last several years as a result of operating in that market. So I think that's the largest opportunity for us. It's a $1 trillion market, and we're still a relatively small share.

I also think we are taking share from legacy financial institutions and banks as well as other digital lenders. Right now, large banks aren't incentivized to refi their credit card debt because of the APYs and the returns that they're getting on those asset types. And then on the flip side, digital lenders that are less mature are capital constrained and have much higher cost of funding.

So our unique blend of our brand, our ability to originate our funding source through our direct deposits, which are very high quality, enable us to compete and take share not only from large banks, but also digital lenders and continue to tap into the huge market opportunity of revolving prime credit. What's also important is that our growth ambitions and aspirations are not predicated on moving downstream in credit. There's huge opportunity for us within our existing credit box to serve members in this very large market.

Great. Maybe just squeeze a quick numbers question in here. So if we think about the guidance for the full year, it implies a ramp in profitability in the back half of the year. You've been messaging that all year. I think you've been pretty consistent about that. Can you just talk about puts and takes first half to second half, your visibility? And maybe like what are the 1 or 2 things that need to go right in order to achieve that?

Yes. So our second half guide, stepping back for a second, when we originally provided guidance for 2026, we were assuming that there were going to be 2 rate cuts. What we're now anticipating and what's baked into our guidance is that there are 1 to 2 rate hikes. And at the same time, our effective tax rate has increased meaningfully as a result of where our share price is.

Despite all of that, we've been able to exceed revenue expectations and profit expectations, and we've been able to raise our overall full year revenue guidance while keeping profitability in line with original expectations. That obviously speaks to the durability of our business and our ability to execute.

In terms of what needs to happen, this does not -- our ability to hit this back half guidance does not require any favorable change in the macro environment right now. As I mentioned, we're expecting 1 to 2 rate hikes. And it's not determined by any single product outpacing anyone's expectations. So it all comes down to execution, continuing to deliver on superior member and product growth, ensuring that credit stays in line to better than expectations. But overall, it's continuing to execute as planned.

Yes. I guess -- so I think you're covered on the rate hike expectations and guidance. Curve has also been steepening. I think our house view is that you will see a steeper curve over time. How does that impact given kind of the point of the curve where you guys land?

Yes. So in -- if rates were to increase from today, like I said, we'd be able to hit our back half guide. Higher rate environment would obviously put pressure on our refi businesses, particularly our student loan refinancing and our home loan refinancing businesses, but we would deploy capital to other products and businesses that tend to do well in higher rate environments, just like we have in the past. We think we're kind of in a good spot from where rates are today. If rates come down, there could be a potential tailwind from us. If rates go up, like I said, that's already baked into our contemplated guide.

Sticking with the macro theme, maybe you could just talk a little bit about the consumer. So credit has been more or less stable. I think broader spending levels have also been fairly robust this year. But what is your data telling you about the health of the consumer right now? And any meaningful changes on that as we sit here at September?

Yes. Our members are really healthy and performing in line with expectations. From a credit perspective, we reported 90-day delinquencies in Q2 at 40 basis points, which was down sequentially from Q1 and NCO rates of 3.7%, which is down 70 basis points as well. So everything is performing in line to better than expected from a consumer credit perspective. And we're also seeing really good spend behavior across our entire membership. We reported $28 billion in annualized spend across our debit and credit products, and we don't see that slowing down here in Q3. So overall, our consumer remains extremely healthy. Spend behavior is really robust, losses and delinquencies performing in line to better than expected.

Got it. All right. Maybe let's pivot a little bit and talk about the loan platform business. You've talked about kind of the future state of offering partners, a menu of asset types, credit profiles. And in Q2, you kind of made a step towards that with a $3 billion funding arrangement for SMB loans and a funding partnership for home equity loans. How are you thinking about the trajectory for LPB volumes from here? And then maybe if you could talk about the fee economics for the new products relative to what we're used to seeing for the stand-alone personal product, that would be helpful, too.

Sure. What I would say is we're really happy with the growth and momentum that we're seeing in that business as well as the deep bench of partners that we have, particularly on the unsecured personal loan side. Where you're going to see the next leg of growth is going to be continuing to broaden out different asset types.

We signed the SMB deal, as you mentioned, and we're starting to pass through closed-end second mortgages through the LPB program as well. So you're going to see an uptick in overall origination volumes in the back half of this year as a result of expanding assets and continued growth in unsecured personal loans.

We have significant committed capacity on the SMB side. We now have to start generating enough demand to continue to fulfill that, which we expect to be able to do. So you'll see a decent uptick here in the back half of the year.

In terms of fee economics, still early days on the SMB and the closed-end second deals. As we generate more and more demand and as those partnerships start to mature and scale, pricing will stabilize and be pretty consistent. But right now, it's still early days. So you'll see some fluctuations from a take rate perspective right now, you could expect it to be generally in line with where we're seeing unsecured personal loan pricing.

Got it. All right. So no big mix shift?

Whatever -- yes, every deal is different. Every partner has different economics depending on the collateral that they're taking.

Right. Okay. All right. That's helpful. Unaided brand awareness hit an all-time high. I think you said 10.4% from roughly 2% when you joined, big deal with Notre Dame announced this year. In the context of higher marketing costs being a factor in the kind of back half weighted guide for this year, how do you think about unaided brand awareness and how that translates to customer acquisition costs over the long term?

Yes, absolutely. So our brand strategy has been relatively consistent over time. We think that the most optimal level of brand spend relative to overall marketing spend is 25% brand, 75% direct product marketing. We're not quite at that mix yet, but we're well on our way, and that helps make all of your direct product marketing work that much more efficiently. But our overall strategy hasn't changed. We want to partner with iconic venues, iconic brands, iconic athletes and artists that embody ambition and enable us to reach an audience that we want to have.

Our SoFi Stadium deal, our TGL deal, all of the artists and athletes that we've partnered with over the years have enabled us to increase brand awareness, which is a really tough metric to move from 2% back in 2018 when Anthony and I joined to 11% today. So we've made really good progress as a result of these investments that we've made. Notre Dame, which we just announced is a natural extension to that strategy. It's a world-class institution with an unmatched national audience and reach and their mission and their values are directly in line with ours. So we're really excited about the partnership and the broad reach and recurring exposure that it's going to give us.

In terms of how we think about customer acquisition costs and the return on these investments, we look at things like awareness. We look at things like traffic. We look at customer acquisition costs. We look at LPB, we look at cross-buy. And all of the metrics that we're observing right now are heading in the right direction. We've moved brand awareness from 2% to 11% while keeping customer acquisition costs generally flat on a per product basis over the course of the last several years. Our overall mission is to continue to increase the lifetime value of our members relative to that customer acquisition cost, and you're seeing the proof in the pudding with 51% cross-buy and stable customer acquisition costs.

I guess on that note on cross-buy, you have seen a nice increase in that over the past year. You mentioned adding twice as many products as members for the first time. Where in the member base are you seeing the most cross-buy activity? And I guess, ask the other -- through the other dimension, where in the products that are you seeing the most cross-buy activity?

Yes. So hitting 51% cross-buy is a great indication that our everything app strategy is really working. Right now, members are commonly coming through our broadly appealing products like SoFi Money and SoFi Relay and then typically cross-buying into our credit card business, our Invest business and other loan product businesses.

Because we don't have to pay a second customer acquisition cost for those people who are cross-buying into those other products, it meaningfully increases the lifetime value of every single member that we're bringing on. So we're super focused on cross-buy and continuing to drive that as it results in better unit economics, better lifetime value.

One other thing that people typically talk about is looking at average revenue per user. We tend to focus on average revenue per product in our business. And what's going to continue to drive lifetime value for our members as well as the financial results is increasing our members, increasing our products per member and increasing revenue per product. And we're seeing meaningful growth across all 3 of those metrics.

If you look at average revenue per product and you exclude Relay because it doesn't -- it's not a revenue-generating product, that has increased 60% over the course of the last 2 years. So the strategy is certainly working, and that's what's going to continue to drive the momentum and the lifetime value in our business.

Yes. Makes sense. On that note, on the product side, you launched SoFi Plus on April 1 as a subscription offering. You already hit 200,000 paying subscribers. I think Anthony said he'd be disappointed if you weren't at 1 million a year from when he said that. Can you unpack the unit economics of this product, 4.5% APY, 1% Invest Match, credit card boost, all for $10 a month. How do you measure the halo effect that this product has on activity levels, engagement and cross-buy?

Yes. So SoFi Plus has been a great business for us. It's still early days, but it's doing exactly what it was designed to do. At the end of Q2, we surpassed 200,000 paying subscribers, which translates to $24 million of annualized revenue. What I would say is that we evaluate the economics across the entire member relationship, not just by comparing the $10 fee that they're paying every single month and tying that to any individual benefit that they're getting.

SoFi Plus is specifically designed to increase product adoption, increase AUM, increase spend behavior and ultimately increasing lifetime value of each of our members. Q2 data that we reported was really encouraging. If you look at all new SoFi Plus paid subscribers, 85% of them came from existing members on the platform and 25% of those actually took out another product after becoming a paid subscriber. Among the members who were new through SoFi Plus, SoFi Money was the biggest beneficiary of that. They were typically coming in through SoFi Plus and then going to SoFi Money. For those who are existing members, SoFi Invest was the biggest beneficiary to that.

Got it. Okay. So a lot of momentum on the investing side.

Yes.

Similar theme then. You're the first nationally chartered bank to launch a consumer crypto trading platform and your own on stablecoin on a public blockchain. You're settling crypto trades and SoFi USD. Big picture, what kind of opportunity does crypto represent for SoFi? And of everything on the road map, trading, staking, custody, lending, which products do you think are ultimately the most impactful to the model?

Yes. So we view consumer crypto and SoFi USD as distinct but complementary opportunities for us. Consumer crypto trading broadens our Invest product and provides our members with a new type of asset to invest in. And then if you look at SoFi USD, that's primarily a payment infrastructure, not necessarily something that every consumer needs to use directly. It's our view that dollars need to be able to move 24 hours a day, 7 days a week and having a fully reserved stablecoin that's issued by a nationally chartered bank can make settlement that much easier, that much faster, more cost effective and always available 24/7.

We're already settling our crypto trading via SoFi USD. Big business banking provides another great commercial opportunity for that. Our Mastercard partnership is moving towards 24/7 card settlement. And then you have international remittances, which provide another great opportunity for that.

Over time, these capabilities is going to be able to provide strong fee-based revenue for us as well as net interest income as well as broaden our overall customer relationships. But it's really too early to say which one of these opportunities or use cases is going to drive the business going forward. But over time, we view the underlying payment rails to have a really significant impact on the SoFi ecosystem longer term.

Yes. Great. Maybe sticking with [indiscernible], big business banking. This went from kind of announcement to live clients over the course of this year, built entirely on your own systems. You made a big hire to run the business, Ben Reynolds, who I remember from Silvergate was instrumental at building the relationships across the crypto ecosystem. What's your vision for this business? And for people who don't kind of understand like the history, like what is the primary value prop of something like the SoFi Exchange Network?

Yes. We're excited about big business banking. Let me step back and talk a little bit about the origins of it. It originally originated from direct customer demand. The exchanges, the market makers and all of the institutions that we were talking to told us that they really needed a regulated banking partner that could match and connect fiat with digital assets and operate 24/7 around the clock. What this platform does is it allows businesses to collect and hold deposits, move money through APIs and convert directly between fiat and digital assets, all within our regulated banking environment.

That creates a stand-alone revenue opportunity for us to generate fee-based income as well as interest income. And it's also going to drive greater adoption and real-world usage of our SoFi USD product. A good example of this is the partnership that we just announced last week, which is Payward. It's a really good example of it. Payward is going to be joining the SoFi Exchange network and listing SoFi USD, which will expand our reach to all of their retail and institutional investors, and we'll also be using Kraken Prime to increase liquidity as well.

Over time, we expect that this will evolve from pure crypto-native companies to other institutions and companies who need to move money real-time 24/7 and settle payments in a much faster and more efficient way. But this is just another example of how our bank, our infrastructure, SoFi USD all reinforces one another and the flywheel is working.

And how do you think about just the revenue model in that business? Is it -- do you see more as a deposit gathering engine or a fee income business?

It's going to be both. So we'll have the ability to hold money at the Fed and generate net interest income, but there will be opportunities to generate true fee income as well as it starts to scale.

Okay. Maybe pivoting to the tech platform business, which you've rebranded to SoFi Technology Solutions across 4 platforms: processing, banking core, ledgers, payments, risk and fraud. You bought Peach Finance in the quarter. Just maybe talk about where you're taking this business strategically and then address the question that we get from investors on why is SoFi the right owner of a third-party tech platform business?

Yes. We used to get that question a lot back in the day when we first acquired Galileo. So I'll hit that one first. SoFi is the right owner for SoFi Tech Solutions because we're both a customer, but we're also a product development partner for the business. The technology allows us to iterate and innovate at a much faster clip than we otherwise would, and we're able to get to market with innovative products like our smart card business or big business banking in a much faster way than we otherwise would.

And we're also providing for a demanding regulated governing body to test these new products that are going to market and help validate the platform. We're currently in the process of migrating SoFi Money to the new cloud-native banking platform and core, which makes SoFi Bank the first major bank reference customer. That should hopefully help unlock and work with other institutions who are looking to modernize their infrastructure.

And strategically, we have unified the business, like you said, around 4 key pillars. It's banking core and ledgers. It's our core processing business, payment hub and risk and fraud. And then the Peach acquisition that we just did expands that to lending and servicing. So we view right now 2026 as being a transition and investment year that positions the business really well heading into stronger growth and momentum into 2027. The strategic benefits that SoFi gets as a result of owning this business are unparalleled given our ability to innovate at the pace that we do.

Makes sense. Maybe we can talk about some of the company's AI initiatives. SoFi Coach launched in June, nearly 0.5 million conversations, good feedback from customers. This is powered by the Relay data set, which came up earlier in the conversation. You also launched Composer on the Invest side. How do you think about monetizing customer-facing AI? Do you view this as more of a retention and engagement tool or potentially its own revenue line down the way?

Yes. We think that we're uniquely positioned from an AI perspective just because of our everything app strategy. We provide the ability to provide financial information across a member's whole financial life if they connect their external accounts. Composer is now integrated into SoFi Invest, so it can generate revenue through greater investing activity, engagement and having more assets on the platform. And Coach is more around providing better engagement, better adoption, retention and lifetime value for our members.

It uses differentiated data that we are able to obtain from customers as long as they provide us permission to do so. and provides them with great tailored advice to what they should be doing in their financial lives each and every day. So it's more of a retention and cross-buy product as opposed to generating revenue on day 1. Over time, we could charge for value-added services and generate more fees. But right now, it's about adoption, building that trust and loyalty and having them deepen their overall relationship with us.

One interesting stat is since launch, our SoFi Coach business has had 0.5 million conversations on it with over a 90% approval rating from those conversations, which speaks to the efficacy of the product and the fact that it's really working and building that trust and loyalty with our members. So we're excited about the opportunity, everything that we've built within Coach. It was one of those things when we first started, we didn't think it would ever take the -- take it to the level that it has, but it's been really beneficial for our members, and we're excited about the future.

That's great. We got a couple of minutes left here. I wanted to finish off with just a longer-term financial question. The growth has been really strong. What is your level of confidence in meeting the 30% revenue growth target going forward through 2028? And then over what time period do you think you can get the target returns up to the 20% to 30% level that you've talked about?

We feel confident. We have large and mature businesses that are growing extremely well. And at the same time, we have less mature businesses, like I said at the top of the hour, that are starting to scale, but not contributing meaningfully. So we have strong confidence in our ability to grow revenue. We're growing products and members, like I said, more than 30% compounded rate over the course of the last few years and revenue is following. In terms of the ROTCE and our ability to get to our 25% to 30% target, it's a pretty simple formula in our mind. It's net income margin multiplied by revenue to average tangible equity.

On the net income margin, we're already delivering 30% incremental net income margins. If you look back over the last 12 months relative to the prior 12 months, our incremental margin was 29%. If you look forward to what's implied in our guide, that implies an incremental margin of 30% as well. So similar to when we first went public and we had aspirations to deliver 30% incremental EBITDA margins, net income margins are following suit, and we're already operating at that level while growing revenue at 40% year-over-year.

And on the other side of the equation, the revenue to average equity, we're continuing to scale our fee-based revenue streams, which will allow us to generate more revenue for every incremental dollar -- for less incremental dollars of equity that we're putting into the business. We just need that ratio to get to 1:1, and we see a clear line of sight to getting there over the course of the coming years as we continue to scale our fee-based revenue. So if we get our net income margin to 30% and our revenue to equity to 1:1 or even slightly less, you're already at your 25% to 30% margin. And for the first time, you're actually able to start seeing that in the numbers.

That's great. Well, I think we're just about out of time, but thanks for joining us today. Really appreciate it.

Thanks for having me.

Good morning. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Second Quarter 2026 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the second quarter of 2026 versus the second quarter of 2025.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release in the subsequent 10-Q filing, which will be made available next month.

Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. I'm pleased to share that we had nothing short of an exceptional quarter. Q2 was our 19th consecutive quarter exceeding the Rule of 40 with a score of 70. This included exceptional revenue growth of 40% year-over-year and a 30% EBITDA margin. Our team has continued to execute at a remarkable level and our business mix has proven its durability driving record growth and profitability in the face of a volatile interest rate environment.

Few businesses have maintained such a strong combination of growth and returns for it has been nearly 5 years and still feels like we're just getting started. Our success is driven by our focus on building innovative products that are far superior to what is available from traditional banks and fintechs alike. Our members recognize this, and as their needs grow, they take out additional products and become our greatest advocates. This in turn fuels our growth and financial performance.

Despite our significant scale, our growth has not slowed. We added a record 1.1 million new members in Q2, increasing total numbers 35% year-over-year to a total of 15.8 million members. To put this in context, we had 650,000 total members when I joined in 2018, and we are now adding that amount every 7 or 8 weeks. We also, for the first time, added twice as many products as members despite having such rapid growth in members.

We added a record 2.2 million new products in Q2 and increasing total products by 42% year-over-year to 24.4 million products. This is a huge milestone for our Everything App strategy as more members take out multiple products driving our competitive advantage and having a superior lifetime value. In fact, we've reached an important inflection point with products per member accelerating over the last 2 quarters. we are starting to hit escape velocity on our path to be the winner that takes most in digital financial services.

Cross-buy continues to accelerate with 51% of new products opened by existing sulfide members. This is up from 43% last quarter and 35% in Q2 of 2025. That's a year-over-year increase of 16 percentage points. This is a reflection of the trust members have in SoFi and the superior products we are building, which work better together and are designed to promote further cross-buy.

Two of the clearest examples of our unique ability to package all that we offer into uniquely differentiated products are SoFi Plus and SoFi Coach. Both are only possible because of our diverse set of products and services and their usage drives cross-buying that powers our financial services productivity loop. SoFi Plus is our premium membership offering that brings the best of every SoFi product into one experience with a value that is unrivaled in the market.

At the start of the second quarter, we relaunched SoFi Plus with significantly enhanced benefits in each of our products. For example, SoFi Money at 4.5% interest, and SoFi Invest with a 1% match while fully transitioning the product to a paid subscription model. The results have exceeded our expectations. After just 1 quarter, we surpassed 200,000 paid subscribers with most of the growth coming from existing members who are upgrading their memberships. This equates to an annualized revenue of over $24 million.

Importantly, we're seeing incredibly strong cross-buy. 85% of new SoFi Plus members were existing members and 25% of those are adding another product after Plus, with SoFi Invest accounting for the highest percentage of the follow-on demand. For new to SoFi members who joined via SoFi Plus, SoFi Money is the main product that is subsequently being adopted. And across both groups, we're seeing a very strong adoption of SoFi Relay and our lending products.

SoFi Plus is doing exactly what we designed it to do. It's creating a recurring revenue stream, it's increasing awareness of the breadth of products in our Everything App, it's driving greater cross buy as well as increasing deposits, spending and AUM in the existing open accounts, all in hand increasing member lifetime value. It's the financial services productivity loop in action. We are encouraged to see the success so far, and I'd be disappointed if we are not at 1 million SoFi Plus members generating annual revenue of $120 million a year from now.

That same strategic focus on deepening member relationships is behind SoFi Coach, which launched in June. SoFi Coach brings together 3 things no other company can. The full picture of a member's personal finances across their SoFi products and third-party products, the trust and security of a regulated bank and soon, the ability to perform actions on behalf of our members. The result is personalized financial guidance across a member's entire financial life that helps them achieve the most critical success factor on their way to realize their ambitions, which is spending less than they make and investing the rest.

A key driver of Coach's success is our unique data set from both our breadth and depth of products, services and activities. Coach is powered by SoFi Relay's hub of financial data that spans 12,000 connected financial institutions, 6.5 billion transactions roughly $0.75 trillion in outstanding balances and over $0.25 trillion in member real-world assets. This unique data set gives SoFi Coach an amazing level of insights on which to base its responses to members' financial questions and soon to be proactive insights to what members can do.

Since Coach's rollout, we've already seen nearly 0.5 million conversations with over 90% positive feedback. Every interaction with Coach gives us real-time insights into what matters most to our members what they need and where we can help them the most. For example, more than half of the conversations to date have focused on investing. We believe we can uniquely help the nearly 65% of Americans over the age of 18 that do not buy stocks, ETFs or invest in robo accounts become great investors. This is just the beginning for Coach, and we'll continue to expand its capabilities.

One of my favorite questions to ask is how much I spent on subscriptions in the last month. Suffice it to say, I'm astonished by how many subscriptions I pay that I no longer need. I cannot wait for our launch of automated subscription management and cancellation coming later this year.

SoFi Plus and Coach are exactly the kinds of products that make our model more powerful over time. They help members get their money right across their entire financial life, they deepen engagement across the platform and they create more opportunities for cross-buy, resulting in more lifetime value that we can reinvest in better interest rates on checking and savings, better interest rates on tokenized deposits, higher matches on contributions to your investor account, lower interest rates on home loans, personal loans into loans and better services like free certified financial planners.

The durable and consistent 35% growth in our members and the inflection point in products per member and cross that we've seen in the last 2 quarters are a direct result of these 2 everything products in our Everything App driving the financial services productivity loop and we cannot be more excited about our strategy and execution coming together as we pull away from the industry.

With that, let me now turn to the second quarter results. In Q2, adjusted net revenue was ahead of expectations and up 40% year-over-year to $1.2 billion. Importantly, our revenue growth continues to be durable and diversified. Total fee-based revenue was $472 million, representing 39% of total revenue in the quarter. This is an increase of 22% from last quarter and up roughly 38% year-over-year when normalizing SoFi Technology Solutions, or STS. The growth was driven by origination fees as well as strong performance from our loan platform business, interchange revenue brokerage fee revenue and SoFi Tech Solutions revenue.

In the second quarter, we generated $1.2 billion in cash revenue. This was our third consecutive quarter of generating over $1 billion in cash revenue. Our lending segment had another very strong quarter, generating a record $712 million in adjusted net revenue. In total, we had our best quarter ever for loan originations at $14.8 billion, which is up over $2.5 billion from just last quarter and included record originations across personal, student and home loans. This was our first $10 billion quarter of personal loans.

Of the $14.8 billion in total originations, $11.7 billion was for our Lending segment and $3.1 billion was for our loan platform business. The diversification across channels demonstrates the strength and optionality that comes from having a fortress balance sheet and strong demand from our capital markets partners. Similar to Q1, we are balancing loans originated for our balance sheet with loan platform business originations that drive both returns and great visibility of net interest income for the next 6 to 8 quarters.

Loans originated for our balance sheet are providing a competitive advantage in a large, durable and highly visible revenue stream with attractive returns, which is allowing us to make massive investments relative to our digital competitors. For example, from Q1 2024 until Q2 2026, we have generated $5.4 billion in cash net interest income, which has allowed us to make significant investments to launch new businesses and drive high rates of growth in both members and products.

Additionally, the net interest income recorded of $5.4 billion is 2.7x the accumulative noncash premium on our balance sheet of $2 billion. So not only is the scale of net interest income revenue in advantage, we are delivering significant returns compared to the original marks recorded in our noncash revenue. Together, our Financial Services and Technology Platform segment generated revenue of $551 million, representing 46% of adjusted net revenue. Over time, we expect these revenue streams to be more than 50% of our revenue and a key driver of our long-term target return on tangible common equity of 20% to 30%, which is now becoming very visible.

In addition to delivering durable growth, we delivered strong returns and profitability. In the second quarter, adjusted EBITDA was $358 million, up 44% year-over-year. Our adjusted EBITDA margin for the quarter was 30%. Our incremental EBITDA margin was 31% as we continue to balance reinvesting in the business to drive long-term growth and balancing profitability. Adjusted net income in the quarter was $160 million at a margin of 13%. Adjusted earnings per share were $0.12, which included a negative impact of roughly $0.05 due to higher-than-expected tax rate. Finally, our tangible book value ended the quarter at $9.5 billion up 80% year-over-year and $7.34 per share, which is up 56% year-over-year.

Let me now turn to brand building and additional product innovations across our business. In the second quarter, unaided brand awareness rose to an all-time high of 10.4%, up 190 basis points year-over-year. It was another exciting quarter. We saw SoFi brand ambassador, Wyndham Clark Wynn, the U.S. Open at Shinnecock. We brought together some of the biggest names in country music for CMA Fest presented by SoFi reaching millions of viewers across ABC, Hulu and YouTube.

SoFi Stadium welcome the world as host the Team USA and several FIFA World Cup knockout round matches putting the SoFi brand on one of the biggest stages in global sports. And just yesterday, we announced a multiyear partnership with Notre Dame Athletics becoming the first brand to appear on the Fighting Irish jerseys across all 26 Varsity sports. In football, Notre Dame is in a class of 1 as the only division 1 program with their own broadcast television media deal, giving them a national television audience for prime time games that is well above the average for 95% of prime time professional and college sports. Similar to the SoFi Stadium deal, SoFi will be seen by millions of unique television viewers each week.

Turning now to our product innovation. 7 of our products were 21.3 million total products are now non-lending products. These include SoFi Money, SoFi Relay, SoFi Invest, SoFi credit card and smart card, SoFi Crypto, SoFi Protect, SoFi Plus and recently launched SoFi Big Business Banking. These products are more broadly appealing are used much more frequently and have vastly lower our customer acquisition costs than our lending products. And as such, with the sword and member acquisition that fuels our downstream loan originations be it cross buy at superior customer acquisition costs.

The breadth and depth of our product ecosystem and the scale we've achieved with 21.3 million non-lending products that members engage with regularly will increasingly strengthen our competitive advantage and drive long-term growth in a way few financial services companies can match. Here are a few highlights. Our invest products grew 38% year-over-year, while brokerage revenue increased nearly 2.5x. That reflects both growing engagement and stronger monetization.

We know savings gets you by, but investment gets you ahead. Savings alone won't get members to their financial goals. They also need to be investing for the long term. Yet 65% of Americans still don't invest. Our goal remains to make investing simpler and more accessible by giving everyday investors access to the best tools and opportunities which they have not historically had.

For example, during the second quarter, we brought AI to SoFi Invest with the launch of Composer by SoFi. Composer lets members turn investing ideas written in plain terms into strategies they can build, test and automate in minutes. It is simple, intuitive and accessible fitting perfectly into the SoFi Invest platform.

In June, we also gave members access to the record-setting SpaceX IPO, which became the largest and most subscribed IPO offering in SoFi's history. It was our 36th IPO offering over the past 5 years. This year alone, we've completed more IPO offerings than in all of 2025, and we're excited about the pipeline of companies that may go public this year.

Just this month, we launched SoFi Social 50 income ETF which gives investors exposure to an options-based income strategy without having to build and manage cover call positions on their own. This fund combines the 50 most widely held stocks across SoFi self-directed brokerage accounts with an actively managed option strategy, seeking monthly income and long-term growth.

Now let me spend a minute on SoFi Credit card. We think we've cracked the code on efficiently acquiring high-quality credit card members. Year-over-year, credit card revenue has more than doubled. In fact, credit card revenue was up nearly 50% and products are up 17% from just last quarter. We're excited by the trends we are seeing, not only in the back book, which reached profitability, but also our ability to add the right members in this important product.

Turning now to Crypto and Big Business Banking where we're building the infrastructure to bring blockchain-based financial services to consumers and businesses alike. We have been pioneers in this space, becoming the first nationally licensed bank that launched crypto trading and our own stable coin and SoFi USD. In the second quarter, we began selling our trading business and SoFi USD, and in Big Business Banking, we began processing transactions on the SoFi Exchange network, enabling our first commercial clients to move money in real-time 24/7.

This marks an important milestone for 2 reasons: first, it creates more real-world commercial use cases for SoFi USD, helping the scale of our new lower cost, faster and safer proprietary payment rows. And second, it significantly expands our enterprise offering for SoFi Technology Solutions, creating new opportunities for both fee-based revenue and net interest income over time.

Big Business Banking clients can now hold funds in regulated insured business deposit accounts move money and digital assets in real time through API-driven payments and seamlessly convert between Fiat and digital assets, all within SoFi's regulated banking environment. We first announced Big Business Banking in January and just months later, it's already in market and serving commercial clients. That speed of execution reflects both our culture and the capabilities of the SoFi Technology Solutions, cloud-native banking core on which Big Business Banking was built entirely.

Big Business banking isn't the only powerful proof point for SoFi Technology Solutions or STS. We've begun onboarding SoFi Money to our new modern foundinated banking core, fully developed by STS and purpose-built for U.S. regulated banking environments. The platform will soon be available to other banks financial institutions and brand partners. This marks the first major U.S. bank to join the platform, serving as a proof point for other large U.S. institutions who wanted to modernize their infrastructure to meet the demands of the evolving financial landscape.

We are also accelerating SoFi Technology Solutions capabilities -- during the quarter, we acquired Peach Finance, adding new platform services across credit card, lines of credit, buy now, pay later and installment lending. The acquisition strengthens our offering for banks, credit unions, fintechs and enterprise clients, while also positioning us to bring SoFi's own credit card processing in-house and launch a full-stack revolving credit card platform for our clients.

Turning now to innovation with our lending products. Since 2024, we've been referring members to small business lenders through our online marketplace. But recently, we identified an opportunity to serve these folks directly with a sofa small business loan. Entrepreneurs and small business owners are the backbone of our economy, yet they are not well served. On one hand, you have banks and credit unions that are not providing the necessary access to capital or doing so at a snail's pace. And on the other hand, we have newer entrants that are charging absorbent rates.

Our new small business loan combines competitive pricing with the speed and simplicity members expect from SoFi, helping us serve more of our members' financial needs seamlessly on one digital platform. We are starting off by originating SMB loans through our loan platform business to establish partners. In the future, we may also create optionality to hold these loans on our balance sheet to generate recurring net interest income.

In the second quarter, we also launched our new home equity line of credit experience, giving members fast access to a revolving line of credit right in the SoFi platform. Unlike most lenders, SoFi offers both home equity lines of credit and home equity loans, allowing us to match members with the right solution while providing a lower cost alternative to unsecured loans and all with the speed and simplicity members expect from SoFi. Together, these products accounted for 1/3 of our record home loan originations during the quarter, help them drive growth as purchase and refinance remaining muted in this high rate environment.

We had an amazing quarter on any measure. Our exceptional member and product growth continue to demonstrate the trust and confidence that our members have in the quality of our products that keeps them coming back for more. Our offering is unmatched across traditional banks, fintechs and everyone in between. We continue to make significant investments in our platform, adding new products like SoFi Coach and making existing products like SoFi Plus even better. These investments reinforce what makes SoFi different a seamless integrated experience that helps our members do more with their money all in one place while advancing our mission to help people get their money right.

Our execution has led us to an important inflection point in our strategy and results. As our member base grows cross-buy increases and engagement deepens, the power of our financial services productivity loop continues to compound. That flywheel is driving higher quality, more durable earnings and positions us to achieve our long-term target of 20% to 30% returns on tangible common equity. We are building a financial services company with a business model that we believe is increasingly differentiated, increasingly profitable and increasingly difficult to replicate.

With that, I'll turn it over to Chris.

Thank you, Anthony. We had a strong second quarter and have great momentum heading into the back half of 2026. Our innovation and brand building continue to power exceptionally strong revenue growth. In the second quarter, adjusted net revenue grew 40% to $1.2 billion. Importantly, we generated $1.2 billion in cash revenue in Q2, our third straight quarter exceeding $1 billion of cash revenue. This included $790 million from net interest income and approximately $420 million from interchange fees, brokerage fees, technology platform fees, loan platform fees and loan origination fees. Cash is defined and accounted for the same universally no matter what type of company it applies to.

In addition to our strong revenue growth, we delivered strong profitability during the quarter. Adjusted EBITDA was $358 million, up 44% year-over-year at a margin of 30%. Adjusted net income was $160 million at a margin of 13%. Net income was up 61% year-over-year. And adjusted earnings per share was $0.12, which included a negative impact of roughly $0.05 due to a higher-than-expected tax rate. This was our 11th consecutive profitable quarter.

Turning now to our segment performance, starting with Financial Services. For the second quarter, Financial Services net revenue was $466 million, up 29% year-over-year. Contribution profit was $213 million, up 13% from last year and contribution margin was 46%. Net interest income for the segment was $249 million, up 29% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 28% to $217 million for the quarter.

During the quarter, we achieved record interchange fee revenue, which was up 67% year-over-year and 25% from just last quarter. This was driven by more than $28 billion in total annualized spend across money and credit card. We also achieved record brokerage fee revenue, which was up 2.4x year-over-year and 20% from just last quarter. During the second quarter, our loan platform business generated $143 million of revenue, driven by the $3.1 billion of personal loans originated on behalf of third parties as well as referrals. This includes $2 million of servicing income recognized in our lending segment.

Our loan platform business helped us achieve another quarterly record in total personal loan originations of $10.7 billion meeting incremental demand from our members beyond what we would put on our balance sheet. Note that during the second quarter, we had significant demand from LPB partners over and above what we decided to fulfill but we did fill all demand from our contractual commitments and more.

We have also recently made several positive advancements with our loan platform business. First, we've reached an agreement with a new partner, Sixth Street, to invest in personal loans totaling up to $1 billion. Second, we've expanded our offering to include our new SMB loan product and we agreed to terms on a 3-year $3 billion agreement with base Point Capital. Third, we just further expanded our offering to include our home equity loans with the first loans being transferred in the coming days to a leading global bank.

Adding 2 new loan types to the loan platform business is a significant achievement that will not only provide opportunities to grow our capital-light fee-based revenue, but it will also allow us to serve more members generating more cross buy over the long term. LPB is a great example of how we can build highly scalable tech-driven platform businesses.

Shifting to our Tech Platform segment. For the second quarter, we delivered net revenue of $85 million up 13% from the prior quarter. Contribution profit was $12 million and a contribution margin of 14%. Revenue growth was driven by further monetization of existing clients as well as contributions from new clients.

Turning to our lending segment performance, which was very strong during the quarter. For Q2, adjusted net revenue for the segment was $712 million, up 59% from the same period last year. Contribution profit was $399 million with a 55% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 54% year-over-year to $573 million. The balance of the growth came primarily from loan origination fees, which were up 64% year-over-year.

During the quarter, we saw continued record member demand for our lending products. For personal loans, we delivered record originations of $10.7 billion, of which $7.6 billion was originated for our balance sheet. The ability to hold loans on our balance sheet is a key differentiator for SoFi, allowing us to generate predictable recurring net interest income and to efficiently deploy our capital to generate strong risk-adjusted returns. For example, our core personal loan product generated a roughly 6.1% risk-adjusted margin in Q2. This consisted of a weighted average coupon of 12.9%, a funding cost of 3.1% and annualized losses of 3.7%.

Our ability to generate loans with attractive risk and return profiles supports our strong revenue growth through both balance sheet lending and our loan platform business. In addition to the record personal loan originations, we also saw record originations in student and home loans. Student loan originations were $2.7 billion, up 2.7x from the same period last year. Home loan originations were $1.4 billion, up 74% from the prior year.

Turning to capital markets, where activity continued to be strong in the second quarter. During the quarter, we transferred $3.1 billion of personal loans through our loan platform business. We also closed $834 million in home loan sales and a blended execution of 101.6%. Consistent with prior quarters, we sold $90 million of late-stage delinquent personal loans. In addition to these loan sales, we executed 2 securitizations of loans originated on behalf of our partners through the loan platform business totaling $1.37 billion.

These transactions priced at an industry-leading cost of funds levels with weighted average spreads of 91 basis points and 86 basis points, respectively. In fact, 86 basis points was our best ever pricing, reflecting exceptional demand for SoFi-originated loans. I would also note that our most recent deal was meaningfully upsized from the original deal size.

Turning to credit performance. Our credit performance remains very strong overall, performing in line with our expectations and driving attractive returns across all loan types. For personal loans, we saw a very strong credit performance during the quarter. Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 3.7%. This 70 basis point decrease from last quarter was driven by an improvement in the underlying credit performance as well as growth in average loans on the balance sheet. Including the impact from the DQ sales, the net charge-off rate was 2.62%. This is down 41 basis points from the first quarter and 21 basis points from the second quarter of 2025.

The on balance sheet, 90-day delinquency rate was 40 basis points, down 7 basis points from last quarter. For student loans, the annualized charge-off rate was 61 basis points, down 4 basis points from the prior quarter. The on balance sheet, 90-day delinquency rate was just 11 basis points, up 1 basis point from the prior quarter.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter which is done alongside an independent valuation specialists. This is based on actual low-level data and considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads.

At the end of the second quarter, our personal loans were marked at 104.7%, down 71 basis points from the prior quarter. This was driven by an increase in the discount rate, which was up due to higher benchmark rates as well as a modest increase in the default rate and prepayment rate assumptions and a small decrease in WACC. At the end of the second quarter, our student loans were marked at 14.4%, down 85 basis points from the prior quarter. This was driven by an increase in the discount rate due to a higher benchmark rate partially offset by a modest decrease in the prepayment rate. The WACC and default rate assumptions remained relatively consistent with the first quarter.

Turning to our balance sheet. In the second quarter, total assets grew by $7.2 billion. This was driven primarily by $5.8 billion of loan growth and roughly $800 million of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $3.6 billion. On the liability side, total deposits grew by $5.3 billion to $45.5 billion, which included strong growth in member deposits. Our net interest margin was 5.98% for the quarter, up 4 basis points sequentially. This included a 7 basis point increase in average asset yields partially offset by a 1 basis point increase in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we are very well capitalized. Our total capital ratio of 18.8% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Over the medium term, we expect to efficiently deploy our excess capital into high-returning assets, while letting our risk-based capital ratio normalize towards the low to mid-teens. Tangible book value grew $4.2 billion year-over-year to $9.5 billion. The tangible book value per share at quarter end is $7.34 up from $4.72 a year ago, a 56% increase.

Let me finish by providing our outlook for the year and some longer-term thoughts. In line with market expectations, we now expect an interest rate outlook consistent with the Fed funds futures and 1 to 2 hikes in 2026 versus the expectation of 2 rate cuts when we first provided our 2026 guidance. Now for our specific guidance. For the full year 2026, we now expect to deliver adjusted net revenue of $4.75 billion to $4.85 billion, which equates to year-over-year growth of approximately 32% to 35%. This is up from our prior guidance of approximately 30% year-over-year growth.

We continue to expect to deliver adjusted EBITDA of approximately $1.6 billion, which equates to an adjusted EBITDA margin of approximately 33% to 34%. Adjusted net income of approximately $825 million, which equates to a net income margin of approximately 17% and the EPS of approximately $0.60. Our EPS guidance now includes a tax rate of 22%, which is approximately 700 basis points higher than our original guidance. At the same mid-teens tax rate as our original guidance, our new guidance today would have actually been $0.65 in EPS instead of our actual guidance of $0.60 in the EPS.

As we look out over the longer term, we are on a path to generating return on tangible common equity in the 20% to 30% range. ROTCE is the product of net income margin times the amount of revenue generated per dollar of tangible equity. For example, a 25% to 30% net income margin combined with approximately $1 of annual revenue for every dollar of tangible common equity produces roughly a 25% to 30% ROTCE. Achieving both a net income margin of 25% to 30% and the revenue of equity ratio of 1 is embedded in our strategy with a very visible path from where we operate today.

First, we expect continued expansion in the net income margins due to both higher margin businesses becoming a larger part of our mix, and we continue to realize operating leverage. Second, we're increasingly generating more revenue without a commensurate increase in equity by growing more capital-light fee-based businesses. We have high visibility and confidence in our target net income margin because our incremental net income margin has already been approximately 30% while growing revenue more than 35%, demonstrating that these margin levels are achievable.

As the business matures and incremental margins increasingly become overall margins, we believe the path to a 25% to 30% net income margin is highly probable. Revenue to equity is a function of revenue mix and capital efficiency. We believe both of those outcomes are achievable over time through execution of the strategy we're already pursuing which is why we have confidence in our long-term return profile. Overall, Q2 was a strong quarter, and we continue to have strong momentum in our business.

Let's now begin the Q&A.

[Operator Instructions] Your first question comes from Devin Ryan with Citizens Bank.

First off, congratulations on the Norte Dame partnership [indiscernible]. So good to see that yesterday, you got a lot of attention. Question just on loan platform and really want to focus on some of the new capabilities with SMB and home equity and the new agreements that you guys have recently announced. Can you just give a little bit of context around the capacity that you see in kind of some of these newer categories? And also, how quickly SoFi can build origination volume into that capacity? And just also how we should think about kind of the fee economics in these new categories as you kind of expand beyond personal loans?

Yes, absolutely. Thanks, Devin. So in terms of the loan platform business, that was originally started a few years ago, primarily as a referral channel where we were setting all of our declines to a marketplace and generating a fee. That evolved over time to where we started to originate on behalf of others in meaningful scale from an unsecured personal loan perspective.

I would say, and I've said this consistently, the Nirvana state for the LPB business is to be able to go to investors with a menu of options and asset types that allows them to pick and choose exactly what they would like from both the risk and reward and return profile perspective. And one of the key things that we needed to achieve was to start expanding the loan platform business into other asset types. And this is the first quarter where we were able to do so. by introducing the SMB partnerships.

There are 2 of them. One is with base point capital for $3 billion over 3 years and the other is with an undisclosed party for several hundred million dollars. And then we are also introducing home equity lines of credit to the mix as well in the coming days.

In terms of the overall size and scale and opportunity and our ability to originate into that, we're just starting to originate in meaningful scale on the SMB side. There's considerable demand from an application start perspective, and you would expect to see economics in the range of where we're executing today to maybe slightly better. On the closed end second and mortgage side, similar story, we're already originating at a pretty good clip right now on a monthly basis and the partnerships that we're talking about are in the $100 million to $200 million per month, but we're talking to several parties.

But we certainly have the ability to originate into that. And again, from an economics perspective, we don't disclose that by party, but you could expect it to be similar to where we're executing today.

The other thing I would add is that as we continue to build out a more diversified portfolio of loan platform businesses, we build new relationships that can benefit existing loan platform businesses. The SMB business is one that we think we can be incredibly competitive on. Similar to personal loans and credit cards, most SMB lenders are charging exorbitant rates of over 30%. We think we can operate meaningfully below that and take significant market share.

If you think about our portfolio of loans and originations more broadly, we are really taking massive market share from high return, high profit margin types of products. So in personal loans, we're underwriting WACC at about 12% compared to credit card at 25%. That's an incredibly compelling value proposition for any individual consumer.

In SMB, as I mentioned, we could be 10 points below where the pricing is on SMB. Closed end also, we can be more competitive than others. And because we're more competitive on price, we get higher quality borrowers, which will only reinforce the productivity loop of originating high-quality borrowers, delivering great return assets to our partners, putting great return assets on our balance sheet driving capital that can continue to fund that. And we're very close to the whole equation playing out.

Your next question comes from Andrew Jeffrey with William Blair.

Great to see the momentum you have in the business. Anthony, kind of a high-level question for you. I know the company has been sort of hyper-focused on driving members given the size of the TAM. And now it seems that cross buys reached a pretty important inflection point. Is this the time to sort of focus on monetization sort of at the margin versus member growth? Or do you think you walk in the gum and we see both metrics rise over the next couple of years?

It's an important point that you bring up. It was an important inflection point for us in this quarter. It started in Q1. We didn't want to overemphasize in Q1 relative to Q2. But make no mistake about it. This is -- the first half of this year has proven that our broad-based Everything App strategy is working. We've seen improvement in products per member in Q1 and Q2. We continue to expect that to happen for the foreseeable future. We have the right portfolio of products where people are organically acquired in the next product.

And so if you think about Relay and you think about SoFi Money, those are tip of the sword products that are broadly appealing. We have over 7 million Money members now over 6 million Relay members. The more Money members we bring in, the more Relay members we bring in, the more downstream benefit we get in SoFi Invest and SoFi Credit card and SoFi SMB as well as all the loan products. And those acquisition costs are basically 0 on those other products, which basically doubled the profitability on the loan side.

And so there's a great flywheel here at work. And what's changed this year is that the SoFi Plus product, the SoFi Crypto product are absolutely driving product per member organically. So as we mentioned in the remarks, SoFi Plus relaunched we're already at over 200,000 paying members, which is on a run rate basis, going to be over $24 million a year, and it's growing very rapidly.

But the most important thing is that 85% of those new SoFi Plus members are existing members and our 1/4 of them were taking out another product after they take out SoFi. So if an existing member takes out SoFi Plus, they have at least 2 products since they're existing and then 25% of them are taking out another product. On layer -- on top of that more broadly appealing products like crypto and more broadly piling products like SMB and now Big Business Banking. And you can see the flyweel really working.

So our growth is going to be driven by members by products per member and by revenue per product. So all 3 working for us, and you saw that in the quarter.

Your next question comes from John Hecht with Jefferies.

Good quarter. Anthony, just I'm wondering if maybe you can give us an update on the competitive excuse me, the competitive environment and like customer acquisition costs and channels? And how are those trends going?

Yes. Outside the loan business, the competition is very benign. Our customer acquisition costs are staying pretty stable. The team is doing a great job of really optimizing unit economics and driving efficient scale and customers. The fact that we're driving 35% year over growth in members and over 40% growth in products and really keeping constant is a function of the great data analytics we have and the value prop that we have.

Each one of our products we absolutely designed to be the best of breed on its own, both from a value prop to the consumer as well as unit economics. So we're indifferent in what product they take first. But we're seeing continued strong demand in our channels at stable pricing in all of the financial services products. The lending products are definitely more competitive, but we have very unique products.

So in personal loans, we're really not competing with big banks. They don't offer personal loans, primarily because they have these huge credit card businesses that they don't want to cannibalize. So we're kind of competing with the smaller companies that don't have as much capital and they have higher cost of funding than us. So we've competed really well. But don't get me wrong, look I'm focused on funnels and pricing every day in the PL business. The student loan business doesn't really have a competitor in the home loan business.

So overall, a pretty benign environment at the top of the funnel, bottom of the funnel, nothing's changed, but it's always been competitive on pricing and we're pretty nimble and have a significant advantage in lower funding costs than others, not to mention a large percentage of home loans are cross bought from existing members and increasingly a higher percentage of personal loans is cross bought again without customer acquisition for us.

Your next question comes from Dan Dolev with Mizuho.

Really nice results, congrats. Just wanted to ask maybe, Chris, can you walk us through the rationale of not raising the EBITDA? Obviously, results are super strong. Just some color on that. I think a lot of investors are asking. Congrats again.

Yes, absolutely. Thanks, Dan. So we ended up raising guidance from a revenue perspective, about $100 million to $200 million. That obviously reflects the continued strong execution and strong demand that we're seeing across the entire business. And as we've said before, when we see opportunities to deploy capital at attractive returns, we're going to lean into them. And that's what we're doing today. There are just too many large attractive growth areas for us to invest versus adding even more profitability.

The profitability opportunity is not going to go away, but choosing not to invest today would come at the expense of capturing that growth opportunity in the future. The incremental revenue gives us, obviously, the additional flexibility to invest in initiatives that we believe will drive long-term growth, while maintaining the EBITDA and EPS guidance that we've provided.

Dan, the other thing I'd say is we don't want to over optimize for the actual EPS that we hit or the actual EBITDA that we hit relative to these bigger growth opportunities. But we also do need to be balanced relative to the environment. And while we couldn't be more positive about the demand for our products, the performance that we're driving with them, the credit trends we're seeing, the spending trends we're seeing as well as the investing trends. All of those things are green and up into the right. And so that's what's allowing us to drive such strong demand.

It's not coming at higher costs, which I think is what a lot of people will point to. The incremental investment is on new growth opportunities. This year, we've launched a number of things that were never in our 2026 plan. We just launched big business banking. We launched SMB. We launched SoFi USD. We launched SoFi Crypto and we're leaning into SoFi Plus because of how well it's doing. So that momentum is absolutely continuing.

The other thing I would just say is we entered the year expecting rate cuts. We're now expecting 2 rate increases. We've not only maintained our guidance for revenue and profitability. We've exceeded expectations on the revenue side. So when we think about the back half of the year, I don't know if there's going to be 2 rate cuts. If they are, we're going to be fine -- sorry, 2 rate increases, if there are, we're going to be fine. If there are no rate increases, we probably have upside to the bottom line. But we have the cushion in our guidance to be prepared to deliver in regardless of the environment.

Your next question comes from Kyle Peterson with Needham.

Great I wanted to talk on the loan platform business. It's -- I think this is the second quarter in a row, you guys have talked about the demand is really good from the buyers, but you guys aren't necessarily fulfilling some of the upsized requests based on the capital levels and unit economics for you guys. So I guess how should we think about -- should that continue on the personal loan side moving forward as you guys still have really strong capital ratios? And I guess, like is any of that volume decision impacted by [indiscernible] starting to get ramped up on the platform?

Yes, absolutely. Thanks, Kyle. So I'd say on how we're feeling about the PL business as it relates to LPB. We're happy with that level of volume. We're able to meet all of our contractual commitments and then some and where you're going to start to see more meaningful growth is in some of these other asset types, and I walked through those earlier in the call during my prepared remarks and in the first question.

As it relates to some of the capital consumption questions and how that pertains to LPB, what I would say is that we're self-funded through our guidance period and the medium-term operating plan that we've laid out. as our profitability continues to improve, our organic capital generation is going to continue to increase as well. combined with continued growth in our capital-light businesses that Anthony has mentioned as well as the flexibility that we have and how we monetize our originations, whether that's through the LPB program or on the balance sheet. We believe that we can operate comfortably within our target capital range without the need to raise capital under our current operating plan.

Your next question comes from Pete Christiansen with Citi.

Really nice results here. Anthony, I'm curious, with introducing some of these more commercial-like products, how should we think about the cross-buy flywheel here or, I guess, in the future and putting it around some of these newer offerings. Is it hey, this is a small business, we could connect to some of the proprietors there maybe for personal banking? Or do you envision some additional services that could serve that market to increase...

Yes. What I'd say is the following, the most common sort of app or stage someone goes through as they come in through SoFi Relay or SoFi Money. They come through really the most prominent next product is going to be SoFi Money. If they come in through SoFi Money, there's going to be a path to relay or to SoFi Invest or to loans.

SMB really was borne out of the fact that a large percentage of our members actually are small business operators and back during COVID, when the government provided PPP loans, we've got a significant amount of demand for applications on PPP loans, even though we were not in the SMB business. We actually stood up an application process that met the government's application criteria and help pass on that demand to lenders. And then on the back of that, we built a marketplace so that we actually get paid for that referral process that we're doing.

So the SMB business is very much synergistic to the rest of our business. And I would think of it as just another use case for an individual to satisfy the needs they have from a borrowing standpoint. We'll obviously follow this up with checking and savings in SMB and other products that are ancillary to that. And so it will add to the flywheel.

Big Business Banking, I don't think is truly appreciated by people outside the company. We were looking to partner with marketplaces and market makers in crypto. And everyone we talked to said, "Can you please be our actual bank? Can you build a Fiat and crypto banking capability that's API-driven." And that's where that business was born out of. And so not only will it be a business on its own, it will drive second-order benefits in driving more usage of SoFi USD.

And the SoFi USD product is going to be driven, obviously, by the net interest income from leaving that cash at the Fed bank and earning Fed funds on it. And so we have a number of pieces of demand for SoFi USD. We have Big Business Banking, which is now up and running and people can use SoFi USD as a form of payment in those payment rails. We have our crypto business, which is actually settling in SoFi USD.

On the consumer side, we have our Devin credit card with MasterCard will begin settling in SoFi USD with MasterCard in the coming weeks. And so these businesses are starting to layer on top of each other and there's synergies across that.

Your next question comes from Will Nance with Goldman Sachs.

I wanted to ask a question on the SoFi Plus commentary that you had and some of the membership growth that you guys have seen. I was hoping you could maybe talk through just the profile of the customers that are adopting the product? What have you seen from a wallet share perspective or an engagement perspective? And have you seen things like average deposit balances increasing or engagement with the SoFi platform increasing on the back of some of those sign-ups.

Yes. Our hope when we relaunched SoFi Plus is that it would increase the awareness of the other products that we offered that existing members may not be aware of or new members may not be aware of because SoFi Plus is meant to be the best of ever individual products. So if you sign up for SoFi Plus compared to just SoFi Money, you get a higher interest rate, you get other bells and whistles. If you sign up for SoFi Plus compared to just SoFi Invest, you get a 1% match. And each product, credit card, better rewards, et cetera.

So of the 206,000 SoFi Plus members that we reported in the quarter, 85% of them are existing members. And so it's the same demographic of our member base already because they are members and the 25% incremental purchases of a new product after SoFi Plus, it's primarily -- the thing that's benefiting the most is invest, and that's really encouraging. That means we're getting -- we're increasing share of wallet. We have investors for the first time that are novice to new investors, but we're also getting investors that are transferring the money because of the match.

Secondarily, the SoFi Money product is the product that benefits if SoFi Plus is in that 15% bucket. So SoFi Plus is the first product of the member. The second product that they're buying is SoFi Money. In terms of the actual second order effects of their existing activity, a SoFi Money member that takes out SoFi Plus 1/4 of them are taken out of third product, but we're actually seeing increases in their deposits on the back of that SoFi Plus subscription sign-up and we're seeing increases in AUM as well, and we're seeing increases in spending.

So there is a benefit from more products being taken out from SoFi Plus and there's a benefit for more engagement as defined by more deposits, more AUM and more spending. Here's a really interesting data point. I looked back at the Q1 2021 cohort. Of the money members in the Q1 2021 cohort that became money members that quarter with the launch of SoFi Plus, we increased the product per member of that cohort by 1 product in the quarter, which is, if you think about it, that's almost 5 years old, that customer that was acquired, and they added 1 product for the entire cohort in the quarter.

So it's having a really strong impact, and that's why we mentioned in the earnings results and in my comments that we're seeing an inflection point benefiting from the flywheel. Crypto is also contributing to that flywheel as well as a new product.

Your last question will come from Matt Coad with Truist.

Anthony, I just wanted to ask about the spend down of that excess capital that you guys have talked about. So you're in that advantageous position where you have a really strong CET ratio -- CET1 ratio, a lot of capital to spend, but you brought down that CET1 ratio pretty quickly over the past couple of quarters. So could you talk about just capital balance sheet growth and kind of the spend down and the pace of the spend down of that excess capital?

Sure. I'll let Chris get into the numbers in more detail. One of the benefits of growing our balance sheet in Q1 and Q2 of this year is that we have very strong visibility into our revenue for 2027. And that visibility is going to continue because if we maintain our balance sheet at this size, it's going to produce the net interest income that's being delivered today consistently over time, barring a huge change in the economy or overall credit performance we can kind of count on that revenue in the future. And that's a really stable thing to have. So we can, at a minimum, fund a significant amount of investments regardless of the environment that we're in.

And so when people ask like why are you putting loans in the balance sheet, why you're not doing everything through loan platform business because we want to make sure we have revenue in the future that's visible that can deliver no matter what. It's 100% in our control. We layer a loan platform business on top of that, not just in TL, but now SMB and closed-end seconds and it's a very incremental additive return on top of something that's very visible and we have 5 years of history.

I don't know if people heard the numbers that I mentioned about over $5 billion of cash net interest income from what we generated in Q1 of 2024 through Q2 of '26 but that's an astronomical number especially where it's 2x greater than what the cash revenue was recorded as a premium over time, which shows that the loans are really performing.

I'll let Chris talk about where the capital ratios will settle out, et cetera.

Yes. So we exited the quarter at an 18.8% total risk-based capital ratio, which is our binding constraint, that's well above the regulatory limit of 10.5%. As I mentioned in my prepared remarks, we believe that having a risk-based capital ratio in the low to mid-teens is appropriate for this business longer term. And like I said a few minutes ago, based on our current operating plan and the guidance that we've provided, we feel really good about being able to operate within those confines without the need to raise capital.

As you know, as we continue to expand profitability, our organic capital generation will continue to increase. And by continuing to scale our capital-light fee-based revenue streams that will help as well.

Operator, I'd like to end with some closing comments. In closing Q2 marks a clear inflection point in our strategy where Everything App is driving higher products per member, resulting in higher lifetime value, supporting superior levels of investment in our ability to offer more value to our members than anyone else in better rates products and services. This continuous reinforcing cycle of the financial services productivity fuels, durable growth and high returns.

The benefits of this strategy in our view are no longer theoretical or a leap of faith. They are 100% in our control via disciplined execution. I'm often asked why I buy the stock, and the answer is simple. I believe we will achieve the returns that Chris walked through before of 20% to 30% return on tangible common equity, and it's just a matter of when, not if the market can connect the dots to the attractive return potential of our business.

Until then, we're going to keep our heads down and continue to execute and deliver for our members and our shareholders. Thank you, and we look forward to talking to you next quarter.

Goodbye. This concludes today's conference call. You may now disconnect.

Good afternoon. I'm Rick Shane with the JPMorgan Consumer Finance team. Thank you for joining us. I have the pleasure today of welcoming SoFi's CEO, Anthony Noto. While he has been the CEO since 2018, I think that, that really sort of just a little bit of what you've done along the way, served in the military, worked at the NFL, was a technology executive in another company and then joined the company in 2018.

In the time that you've been there, you've really led the transformation from a company that was focused on student loan refinance to a full platform of consumer financial services, most recently adding blockchain and crypto to the platform or a bank now. So it's been a really exciting, I guess, 8 years at this point. Tell us a little bit about sort of what you guys have done and where you see yourselves headed?

Sure. Now that we are able to offer crypto again, which we're doing and buy, sell and hold 30 different coins and have launched our own stablecoin, payment stablecoin called SoFiUSD, we've now kind of transitioned from a one-stop shop to what we like to call the digital financial everything app. And the reason why we've made that transition is that we've reached incredible scale, 15 million members, 22 million products. We're growing at a really high rate. We grew revenue last quarter at 41% following 35% growth in 2025 and over 35% CAGR over the last 5 years. And it really reflects just the breadth of our offering. Our mission is to help people achieve financial independence, which means they reach the point in time where they have enough money to live their dream, whatever that dream may be, the size of family they may want to have, the career they may want to have, where they want to live, the size of home they want, when they want to retire.

And the only way to really deliver on that mission is to help them borrow better, save better, spend better, invest better and protect better. So you need this broad swath of products and hence, the concept of the digital financial services, everything app. I'm very proud of the fact that we've gotten to the point where 85% of our products are non-lending products. Lending products are really critical. In fact, they drive the highest revenue per product, and that helps us drive our competitive advantage in that we have the best lifetime value, the best unit economics, which allows us to give value back in all the other products that we have in better interest rates on checking and savings, lower interest rates on loans, more affordable credit cards, things like smart card, but then to do even more and allow people to elevate above that into something like SoFi Plus and soon-to-be launched subscription cancellization in addition to other bells and whistles like using AI-driven engines to build portfolios.

And so we're at the point in time where we're really starting to see the formula work. What is the formula? We want to teach people to spend less than they make and invest the rest. 70% of the members that we have in SoFi Invest, which is over 3 million products now are from existing members. So we're helping people get to that point where they spend less than they make, and now they're investing with us and they're using our products in a bigger and better way. We recently launched SoFi Plus, relaunched it on April 1 and have been amazed with the progress we've made so far in that. So it's a long way since 2018 when we had 600,000 members and $250 million of revenue to 15 million members now and over $3.5 billion of revenue last year and well on our way in 2026.

Interesting. And what you said just resonates with me. We spend a lot of time trying to explain consumer behavior. And I would describe that Wall Street has not somewhat a pejorative explanation of a lot of consumer behaviors, consumers are stupid. And our explanation has always been that consumers are rational but undisciplined, that they make smart financial decisions, but then end up spending too much money. And it sounds in a lot of ways like that's the foundation of what you're trying to address as well. There -- you're helping them in terms of price discovery, in terms of transparency, make good decisions and then actually hopefully change their behaviors a little bit.

Yes. I'd chalk it up to a few different things. One is education. A second is accessibility and then the third is emotion. When I think about education, I get an e-mail from a potential member, a mother of a daughter. The mother tried to cosign for a loan and for some reason, we didn't approve the loan. We have, hence, approved the loan. But in the e-mail, she's basically saying, my daughter is trying to do the right thing and pay off her loans. She has an incredible burden, $230,000 of student loan debt, and she's going to be a teacher. Why a university would ever let someone take out $230,000 of debt. It's very admirable to be a teacher. It's the lifeblood of our country. It forms the foundation of our children. Our children spend more time with teachers than they do with their parents in their lifetime, quite frankly.

And here's this woman who's graduated from college, which is a big accomplishment, and she's burdened with $230,000 of student loan debt on a salary that's probably $60,000. Like that's an educational problem, and she'll never get out of that hole. We can help her get out of that hole, but she's going to need a lot more help than that. There's an access problem. And what does that mean? People think they have to have access to wealth advisers to invest in the stock market to invest at all. And so it's shocking to me that my 2 brothers, my wife, they didn't buy their first stock until after I joined SoFi. And it wasn't SoFi stock. We made investing more accessible to them. We educated them. We gave them products that were easy to use. We pioneered fractional shares. You may want to buy what you like, like Peter Lynch often articulated.

But if Amazon is $2,000, you can't buy Amazon unless you're willing to lose $2,000 on one stock. But you can buy $1 of Amazon at SoFi. You can buy $1 of Tesla. In fact, you could take $10 and buy 10 different stocks at $1 per stock. We also launched a couple of ETFs at $10 a piece that were S&P 500, lookalike ETFs that have done pretty well. And so if you tried to buy a different ETF that was S&P 500 ETF back at that time, the lowest price point was like $250. Well, I'm comfortable spending $10 on something I don't know. It's basically breakfast out of the house, coffee and maybe a breakfast sandwich. Why would you feel comfortable spending $250 on this thing called an S&P 500 that you've never researched, but you're more comfortable spending $10 on it. So we made diversification and dollar-cost averaging more successful. We've made IPOs more successful, private equity more successful. We've done a couple of SpaceX offerings.

So private investment is more accessible. And then emotion. It's hard to tell your children no. It's Christmas or a holiday or their birthday, and you want them to be happy. And so you charge something or something breaks unexpectedly and emotionally, you need to get it fixed, whatever it may be. And so it's the combination of education, accessibility and emotion that puts people in a financial hole, and we want to teach them not to start in that hole to begin with $230,000, not to buy a house that's their wife's dream house if you can't actually invest and save for retirement. Just being able to save allows you to stay in business, so to speak, but it doesn't allow you to get ahead. It allows you to keep up. And so we have to teach people how to invest, and we believe we have the products, and we're nailing that formula, and I'm excited about the things we'll be launching this year to take it to the next level.

That's great. And I really -- again, given my framework, I really appreciate what you're describing, and it really does resonate with me. Look, one of the big transformations, I mean, there have been so many in your bank now. And again, context here, I've been a financial services analyst for 25 years, I cover the space for a long time. I have been following SoFi for about 3 months and still getting up to speed. So bear with me as I feel my way through this with you guys. And if my questions are a little off, it's because I'm still getting there. But one of the big transformations that we've seen is the expansion of your loan platform business. I think you guys did $13 billion in originations. You're on path on a runway close to $1 billion of revenues. How big is that opportunity? And now I think originally, these were loans that you were seeing that you didn't necessarily want to put on your balance sheet. But as you're seeing the benefits of capital-light originations, how do you see that platform going forward?

Yes. We developed the loan platform business, LPB, as we affectionately call it, to capture the opportunity that we couldn't capture at that moment in time. There could be several reasons for us not capturing the opportunity. First, we declined about 70% of the applicants for personal loans, and that's typically for credit reasons. Second, we can drive more demand than we have originated in personal loans over time. If you go back in time, you'll see that we're originating $2 billion of personal loans in a quarter a couple of years ago, and it slowly has increased. What we found was the more we marketed, the more originations we could drive at affordable price. But there comes a point like in 2024, where higher for longer was a risk, and I didn't feel comfortable underwriting everything that we could.

So at the time, we came up with this idea called the controlled volume business, which then became the loan platform business. We went to managers of assets, people that had capital to put to work and asked them what credit profile they wanted, what return profile they wanted. And then we negotiated with them to create loans for them by tapping into that origination volume that we didn't want to put on our balance sheet from a risk standpoint. There's also volume that we don't want to put on our balance sheet from a credit standpoint as well. And so that's how the loan platform business was born. It's achieved incredible success. We're tapping into more and more originations. We're making people that have high credit card debt more aware that they can move out of 26% interest or 25% interest into 12% interest, amortizing down over a number of years and really cut their cost of borrowing quite meaningfully, which then gives them more freedom to invest or save and do other things.

So that's what drove the business. I think people were disappointed to see our loan platform business revenue down sequentially. What I would tell you is we had more demand for the loan platform business in terms of loans people wanted and to pay us fees than we could produce for them. We look at our business holistically. One of the reasons we've been able to drive diversified growth is that we're not just looking at this quarter or the next. We're looking out 4 to 8 quarters. We're looking at where each business will be. We're allocating capital against those businesses to get us to that 30% compound annual growth that we want to have in revenue and higher in profit over time. And we're allocating our resources.

So the way we think about the balance sheet and the loan platform business is we want to make sure that we've set our company up to deliver 30% compounding growth for as long as we can in revenue, so through 2027, which means we do need net interest income during that time period. In this most recent quarter, we announced $690 million of cash net interest income. If you just actually look at the net interest income line, it adds up to that. So it's not a surprise. That will need to amortize down over time, both because people pay off their loans, and we have to replenish it with balance sheet. So we allocated to our balance sheet what would give us good visibility of that nice revenue stream over time. The rest we allocated to the loan platform business. If we originated more that would have gone to the loan platform business, and it would have been bigger.

The reason why Q3 and Q4 accelerated so much last year versus Q2 is we not only fulfilled our contractual minimums, but we're able to satisfy some in-quarter demand that our partners wanted by spending more in marketing and getting there. And if we hadn't delivered more than a contractual minimum, you probably would have seen a nice linear growth rate from Q2 of 2025 to Q3 of '25 to Q4 of '25 and then still linear in Q1 of '26. But our partners wanted the assets. We were able to produce them at a fair price, and we took advantage of that opportunity. This year is going to be a more balancing act between the balance sheet and LPB. One, because we have more capital; two, we're looking out over the next 8 quarters, not the last 4 quarters.

Okay. And I hope I quote you fairly and warmly, but you've described a crypto supercycle that will transform financial services. You talked about adding crypto to your platform that your clients can now store 30 different cryptocurrencies on the platform. You've launched a stablecoin. When you look at crypto, are you seeing this -- how do you see this rolling out? Is this -- are you offering a speculative tool for your customers a way for them to invest? Or is there a practical day-to-day usage that you're envisioning? Like what makes this transformational other than it's just new and different?

Sure. There's 4 distinct revenue streams that will generate revenue on over the course of the next 12 months and beyond. There's big business banking, SoFiUSD, stablecoin, there's crypto investing, so buy, sell and hold and then there's crypto borrowing, secured borrowing. So let me talk about all 3. First, SoFiUSD. I couldn't be more excited about the prospects of what SoFiUSD brings to the table. This is a stablecoin we just started minting at the end of 2025. You will see it show up in the app in the course of the next couple of weeks. It is both going to be an enterprise product and a consumer product, and let me walk through both. First, we're already in the business of moving money. We do 8 billion transactions a year via Galileo's debit and ACH processing.

We would like all those 8 billion transactions to occur with SoFiUSD, and we think we can actually grow the amount of transactions with SoFiUSD. Think about SoFiUSD as a payment capability that also has a stored value and that we'll make money on that stored value based on the net interest income it generates from it sitting in our Fed master account earning Fed funds without liquidity risk without credit risk and without duration risk, unlike any other stablecoin issuer to date that has to go out and buy treasuries and has to buy securities to generate a yield. So SoFiUSD will become a payment mechanism in our SoFi Technology Services platform that also become a new payment mechanism that allows us to sign new deals with partners.

So we signed a deal and announced a deal with Mastercard, where they're going to use SoFiUSD to do 24/7 settlement, 24 hours a day, 7 days a week. Today, they do 5 days a week settlement, and it's not 24 hours. This will be a huge value to them and their merchants, and this will be a payment mechanism that uses the rails that SoFiUSD rides on. And the capital will sit, again, dollar for dollar back in our Fed master account earning Fed funds. We have other partners that will also use SoFiUSD. So when we launched our trading business for buy, sell and hold different crypto tokens, we are partnering with exchanges and market makers. Those exchanges and market makers do not pass fiat back and forth. They pass stablecoins back and forth. We will use SoFiUSD with all our intermediaries.

Big business banking. We're launching big business banking, not because it was my bright idea. In fact, this was something that was built by somebody else, and it went away. As we were talking to all the intermediaries in the crypto universe, they all asked us to build bank accounts for them because we uniquely at SoFi could operate in both fiat as a national bank and cryptocurrency as a national bank. And so we've launched this product. On July 1, we'll launch it with APIs. So it's completely agentic if you want it to be agentic. And we can operate in both fiat and crypto and help all of these businesses that are crypto-centric do banking more efficiently in a more automated way 24/7. We'll also offer these same services to any other company that needs to operate in stablecoins or crypto.

It could be Amazon, it could be Apple, it could be Booking.com. They're all potential clients for us. We will make money again on the stored value in SoFiUSD and the NIM or net interest income in addition to the fact that big business banking will have a subscription fee, it will have payment fees and all the bells and whistles of being a bank for large companies. And I'm super excited about that because the underlying value of that, the fuel for that will be SoFiUSD.

And then on the consumer side, we will uniquely offer a product that allows people to buy SoFiUSD, and they will get FDIC insurance and they'll get interest. When we launched SoFiUSD and the SoFi app, it will say coming soon. The coming soon piece will be down the road when we create a tokenized deposit and a SoFi Payment coin in one, just like we have today in a SoFi banking account that has a savings account and a checking account. So today, if you put your money into your savings account and you do direct deposit with us, you get 3.8% interest. When you want to pay with that money, we move it out of the savings account into the checking account and then we send it via the debit rails. We'll do the exact same thing with SoFiUSD.

You'll put money into an account that is a custodial -- noncustodial wallet that will give you interest, that will give you FDIC insurance. It will sit with inside SoFi Bank. When you want to pay, you'll lose the FDIC insurance, you lose the interest rate on the tokenized deposits and the stablecoin will be minted and transferred. That will help us build an asset base in SoFiUSD and at some point, become a point-of-purchase mechanism if people want to pay it in that way, in addition to using it for international remittance and other forms. So SoFiUSD, my hope is this is worth billions of dollars of volume over time, and we're generating 1% to 2% of net interest income. So that -- and the big business banking and crypto trading are 3 of the businesses. The fourth is as we build up an asset base under crypto investing, we'll give people secured loans against those assets. And since we're already the lender, this will be very attractive because today, we do no secured lending other than a home equity line or a HELOC.

Okay. I want to think about the use case here for 1 second, just to make sure I understand it. So you talk about the consumer crypto business. My daughter sets up an account. She uses her account, her SoFiUSD account for her savings. She transfers money to her checking and she owes me $100. Can she pay her old fuddy-duddy dad who does not have a SoFi account the $100? Or do I need to enter the ecosystem in some way to be able to participate in the payment with her?

She could. She could do it bank to bank. So if you gave her your routing number and bank account number, she could do it that way. If you have Zelle, she could do it via Zelle. If you have a phone number, she could send it to a phone number, you'll have to click on that link to then take action to put it into your bank account or preferably accept it in a SoFi account and become a SoFi member. If you have an e-mail, she could send it to the e-mail, you can click on that e-mail, put in your routing number and your bank account number and will go into that account automatically. Or again, hopefully, she sends you a referral link for $25 and you sign up for SoFi Money and it goes into your SoFi Money account. So one of the things that we benefit from is we own our own technology.

And SoFi Technology Solutions has 4 strategies for different businesses trying to build, one of which is Payment Hub. The idea of Payment Hub is to have APIs that companies can use in a self-serve way to do any type of payment. So SoFi is benefiting from that investment. So far, they've built self-serve wires. So you can do a wire on SoFi right now, SoFi Money in a matter of 3 minutes to any place in the world, never talking to anyone as safe as any other process. You can also do FedNow, so instant money transfer. And you can do ACH, which I mentioned, you can do debit and you can do person-to-person payment and you can do Zelle. So the SoFi Technology team will keep building out the payment hub options to do any type of payment from any source to any destination, stablecoins being the next area.

Got it. So it is a walled garden with plenty of gates so that you can go see people on the outside.

I would say it's an open platform with the safety and security of a national bank.

Okay. That's fair enough. Look, it's an interesting time, and this is the world I live in. I'm a credit card analyst, consumer finance analyst. We have some concerns about what's happening in terms of consumer credit. You've talked about an early warning dashboard that you maintain that would trigger credit tightening. Can you give us some of the key indicators that you're looking at? And are we starting to see maybe not red flashes, but are you seeing yellow flashes that we should all be thinking about in terms of the consumer?

We look at performance, we look at early warning indicators. We haven't seen a change in the environment at all. Credit is performing as expected. We're still seeing strong performance across the board, in line with our expectations. We've provided those results in the quarter. I haven't seen changes since then. There's a number of different early warning things. The macro things that I focus on the most are unemployment, inflation and rates. If unemployment gets in the 5-plus percent range and is persistent, that's going to be a real problem. It doesn't seem like that's on the horizon. I know there's a lot of concerns over AI. We haven't seen an impact on AI. At the end of the day, our credit is underwritten on cash flow.

The thing that could kill cash flow is losing your job. The other thing that could kill cash flow is taking on other forms of debt that we're not aware of. We do monitor FICO drift. We do monitor other factors to have individual early warning signals. But right now, we're seeing no major issues across the early warning dashboard at the macro level, which looks at unemployment, looks at income levels, looks at debt levels, et cetera. And so we continue to be pretty comfortable in the environment we're operating in. Q1, to me, was a remarkable quarter. If you look at our business, it's really strong across all of the leading indicators. I don't think we've had as much broad-based strength as we did in the quarter in my 8 years at the company, and we're not seeing any changes in the quarter.

There's always a difference between expectations, et cetera. But we have 41% revenue growth at over $1 billion, and that's $1 billion of cash revenue. We had really strong profitability. We've grown our tangible book value by 100% since 2023. So it's been a great environment, and we don't really see it changing. The one thing that is more challenging than we anticipated for this year is rates. We came into the year thinking rates would come down at least twice. Now we're factoring in no rate cuts, which is why we left our guidance for the full year despite beating at where it was. I think if rates do come down unexpectedly, we'll have a huge tailwind in student loan refinancing.

It's already up 100% on its own. Rate cuts would only accelerate even further. Home loans, people are really dying to be able to refinance their mortgages. Many people had adjustable rate mortgages where interest rates are now going up and you need lower rates to refinance at lower levels. Our home loan business, fortunately, is growing 100% year-over-year as well, but rate cuts would accelerate in addition to student loan refinancing. And then on the personal loan side, if there's rate cuts, we'll have people refinancing their existing loans. We have a natural hedge in that we're such a large market share of unsecured personal loans and still gaining share from credit card. As rates come down, we could see a tailwind on the personal loan business as well.

Got it. Look, if you go across the consumer continuum, an affluent consumer, they're spending at the pump might be 15 or 20 basis points a month. A lower-income consumer who's using a vehicle as part of their job, doesn't have the option of working from home, spending the pump might be close to 10%. A 45% increase in gas prices, which is what we've essentially seen in the last month. If we go back to 2022, we saw that have a pretty immediate impact on consumers in the lower middle part of the spectrum. I know that you guys lend higher in the credit continuum, but I am curious how important you think that one inflationary element is.

Our customers have higher income, $100,000 of average household income or more. In the actual products that we lend, it's closer to $150,000. FICO scores in the 750. So 3% interest versus 2% interest is not a big deal. Higher gas prices obviously takes less money out of your pocket. But on a relative basis to the broader portfolio of spending, savings and investing, it hasn't been a factor, and I don't anticipate it being a factor. There are different views on what the right level of sustainable inflation is. I don't think there's a huge difference between 2% and 3%. I think there's a huge difference between 5% and 6% and 2% and 3% for our customers, but we don't see it having an impact.

Great. That's helpful to have you set that context. Look, one of the things that has been another addition to SoFi is SoFi Plus in the subscription model. It's about $10 a month. Historically, we have not seen subscription models be super successful within financial services. Can you tell us a little bit about -- and I say that, and I'm a credit card analyst and you subscribe to premium credit cards. You could argue that there's nothing really different. And what makes premium credit cards, a successful subscription is the value that the consumer sees. Can you talk about how your subscription model is rolling out and what the value proposition is for your consumers?

Sure. And I want to put this in context. We're investing right now in 4 businesses that essentially had 0 revenue over the last year or didn't exist over the last year. So I talked about big business banking didn't exist a year ago. I talked about SoFiUSD didn't exist a year ago. Crypto buy, sell and hold and crypto investing did not exist a year ago. So 4 big businesses that could easily be $100 million revenue businesses pretty quickly like the LPB business ramp so quickly. SoFi Plus is another one. So we launched SoFi Plus originally in the first quarter of 2025, and we learned a lot in 2025. We learned what didn't work.

I think we may have acquired 60,000 paying members during that time period. It was a little bit confusing. You could get SoFi Plus if you were a direct deposit customer and pay nothing for it or if you paid us $10 a month. We spent the year iterating and iterating and learning and asking questions and challenging ourselves and looking at analytics. And I'm telling you people probably when they saw me, they walked the other way, worried I was going to ask them a question about SoFi Plus. I could not be prouder of the progress that we've made over the last year and the success we've seen in just the first 6 weeks of the quarter. So we relaunched SoFi Plus on April 1. We're over 100,000 new SoFi Plus members, I think, as of yesterday, was about 160,000.

That's not a material number relative to 15 million members or even relative to our revenue of over $1 billion. But that's 160,000 people that are going to pay us $10 a month, hopefully, $120 a year for years to come. SoFi Plus is positioned as the best of SoFi. So when you want to use Invest, you can just use regular SoFi Invest. But if you become a SoFi Plus member, you're going to get a better experience, you're going to get better value for us. We've quantified that the value we can create for you if you use SoFi Plus is $1,000 or more in a year. Now you have to take advantage of what we're offering you, but that's the opportunity.

So if you're a direct deposit member today, you're getting about 3.8% interest on your SoFi Money account. If you become a SoFi Plus member, you get 4.5% interest up to $20,000. If you're sitting at $10,000 deposited and 3.8% and you have another $10,000 sitting someplace else, that all should go into SoFi Plus, you'd make more money by paying $120 than by doing anything. So what we've seen so far is 90% of the new SoFi Plus members are existing members, which is perfect. We want our existing members to do more with SoFi and to give them the best of SoFi. So it's the right target. We're seeing a large percentage of them actually taking out another product after they sign up for SoFi Plus and it is a great insight.

We're actually educating people on what else they could do at SoFi, and we're giving them an incentive to do it through SoFi Plus. So it was a direct new revenue stream. If we get to 1 million members, $120 million a year, I'd be super disappointed if 2 years from now, we didn't have at least 1 million members, hopefully, it's sooner. So we get a direct $120 million. There's a bunch of things that will accrue value beyond $120 million, i.e., if we get double the deposits from someone that only has $10,000 to $20,000, another revenue stream, not to mention spending and the ability to use those deposits to monetize our loans. But in addition to that, they're taking out another product. And so cross-buying is happening naturally.

And so we will continue to put more and more value into SoFi Plus to give people the best of SoFi. I'll give you 2 other examples. We just bought a small business called Composer. Now Composer is an AI-driven portfolio creator. You can go on Composer and create your own AI portfolio. Maybe we'll let you do that twice for free. But if you want to do it a third or fourth or fifth time or some other value added, you're going to have to sign up for SoFi Plus to get access to it. We've been building subscription cancellization. One of the things you can ask SoFi Coach when it launches to the public is how much did I spend on subscription in the last 30 days? SoFi Coach, if you have the accounts all connected, you will see those subscriptions from your credit cards. Eventually, you'll be able to click on that and say, cancel and it will cancel automatically.

The first version will be put in your user name and password. As soon as we start canceling subscriptions for you, maybe after the second or third one, we'll say if you'd like to do a fourth or fifth, sign up for SoFi Plus to get unlimited access to subscription cancellization. Again, another way to show how using SoFi's products makes it better together and differentiating that product. So I'm super excited about SoFi Plus. I've been amazed by the growth since April 1. I couldn't be proud of the team because it's classic SoFi, learn, iterate, learn, iterate, and it drives innovation. Now people are trying to create value-added services just for SoFi Plus to drive their own business. 15 million members, 160,000 SoFi Plus members, you do the math, there's a big opportunity there.

And if -- again, it's early days. Let's pretend it's 2 years from now, and you've reached your 1 million members, and it's $120 a year and there's $1,000 of cost savings a year potential. What's the pie chart look of -- how many people are achieving less than $120 worth of value, how many are achieving $121 to $500 and how many are extracting more than $500 -- what percentage are extracting more than $500?

I would be making up the answers at this point. But here's what I will say. When they take out that third product, it is more valuable to us because we have not paid a customer acquisition cost. We have target customer acquisition costs for all of our products. When people cross-buy into those products, that drops to the bottom line. So for example, personal loans and student loans, those products have roughly a $600 to $800 customer acquisition cost. We make $800 to $1,000 in variable profit after the customer acquisition cost. So illustratively, if someone is not a SoFi personal loan borrower that becomes a SoFi Plus member, because they have SoFi Checking and Savings.

They sign up for SoFi Plus, and they take out a loan, that loan has a variable profit of $1,600. It literally doubles the variable profit and the LTV of that personal loan. It more than covers the $120. It more than covers the value that we've created in other places. So our competitive advantage is that we have the highest lifetime value and the best unit economics. And they're only getting stronger at the scale that we have. It allows us to give people better interest rates on checking and savings, lower interest rates on loans and more valuable services like subscription cancellization like Coach, which will launch next year, like Composer.

Got it. Look, you could talk about this all day. I could ask you questions until the last person trying to wander sheepishly out of the room. But in 2 minutes and 23 seconds, she's going to turn out the lights on us. ROE path. How long do you -- I mean, is this a 20%, 30% ROE business? And how long do you think it takes you to get there?

We believe it's a 20% to 30% ROE business. Today, the commitment we've made is that we're going to continue to grow our revenue at over 30%. We want to do that for as long as we can. And as we're doing that, we'll deliver profitability of a 30% incremental margin. Now why are we doing that? We want to show the investment world that this is a high-margin potential business. We've already gotten to 30% EBITDA margins. I don't think it's that far to go to believe this is a 40-plus percent EBITDA margin business, but we're not going to keep driving that margin while we have the growth in front of us. The bigger our revenue gets, over time at that margin profile, the more return will drop to the net income line. And so we think we can get to 20%, 30% ROE. Now that does assume that we're going to have a diversified business.

Over the trailing 12 months, 50% of our net revenue was in lending and 50% of our net revenue was in non-lending. That's the type of mix that will allow us to get to that ROE. If the mix goes even higher to non-lending and noncapital intensive, it will actually drive an even higher ROE. The things that I'm mentioning, SoFi Plus, SoFi Crypto, SoFiUSD, Big Business Banking, they're not capital-intensive businesses. They are high-margin, high-return businesses that will only add to that equation, and we'll continue to balance over time. We talked about 5 new businesses and 5 new revenue streams in SoFi Plus, Big Business Banking, SoFiUSD and crypto trading, investing and then lending.

We still have tremendous growth in SoFi Invest, in LPB, in the credit card business and the SoFi Money business. We released this quarter a measure for cash revenue, and we broke it down between net interest income, which I already mentioned that $690 million of net interest income as well as cash revenue from noninterest income, which was $390 million. You can model the growth of that business in the following way. Take out of it, the $120 million of LPB, which is not really a product-driven business, and then take the remaining and put that over products. That is revenue per product. Our products are growing roughly 35% to 40%. So grow products out at that rate or whatever you're comfortable with over time. The revenue per product is likely going to go up.

Why is revenue per product going to go up? SoFiUSD is new revenue. Crypto trading is new revenue. Big business banking is new revenue. SoFi Plus is new revenue. SoFi Invest is undermonetized. It's at about 70 basis points. It could get to 90 or 100 basis points as we add more valuable services. The credit card is undermonetized. It's about a 13% effective interest rate going up to 17% and hopefully higher than that over time. And the ability for us to continue to add revenue per product and product will drive that other revenue stream that will drive ROE as well. So in total, we're really happy with the composition of our business and what we think the long-term return is.

And the last thing I'd say is there's a couple of metrics that we released that people aren't doing the math on, and I want to do it for them. If you look at our net interest income from Q1 of 2024 to Q1 of 2026, it's roughly $4.6 billion. It's right in the income statement, add it up. It's largely all cash, virtually all cash. So $4.6 billion of cash net interest income people have paid to SoFi. If you look at the premium that's in our balance sheet and that we disclose from fair market value accounting, it's about $2 billion. That means we're generating more than 2x in cash, net interest income cash against the noncash revenue recognition from the premium, which is pretty remarkable when you think about the quality of our loans and the returns. That will also give you greater confidence when I say we can get to a 20% to 30% ROE.

I also said to you that we were going to have so much fun that we're going to turn the lights out on us. We're out of time. But Anthony, thank you so much. It really was a tremendous amount of fun. Thank you.

Thank you.

Good morning. My name is Julienne, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies First Quarter 2026 Earnings Conference Call. [Operator Instructions]

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's First Quarter 2026 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the first quarter of 2026 versus the first quarter of 2025.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements.

Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I would like to turn the call over to Anthony.

Thank you, and good morning, everyone. We've had a remarkable start to 2026. Our relentless member focus continues to drive innovation across our business, leading to our 18th consecutive quarter of the Rule of 40 with a score of [ 72% ] reflecting 41% revenue growth and 31% EBITDA margins. Notably, this was the second consecutive quarter that we have generated more than $1 billion in cash revenue. In Q1, we generated over $1 billion in cash revenue, consisting of approximately $690 million in cash revenue from net interest income and about $390 million in cash revenue from interchange fees, brokerage fees, technology and loan platform fees and loan origination fees. In fact, in both 2025 and 2024, more than 100% of our adjusted net revenue was cash revenue at $3.8 billion in cash revenue in 2025 and $2.7 billion in cash revenue in 2024. Our durable growth with an acceleration in revenue growth and strong returns and profitability is fueled by our consistent focus on innovation and brand building.

Our mission remains the same. We help people reach financial independence to achieve their ambitions, helping them get to the point where they have enough money to live where they want, have the size family they want, the house they want, the career they want and retire when they want. Other financial institutions pick and choose the products they offer based on how much money they can make off of their customers. And as such, they don't deliver the holistic experience people need to make their ambitions a reality. That's why SoFi delivers the everything financial app with unquestionably the most comprehensive set of digital financial tools and resources to help our members get their money right.

Our critical success factor is helping people spend less than they make and invest the rest. Savings is not enough. Saving will help you get by, but investing is critical to get ahead to achieve your dreams. In order to achieve this critical outcome, we must help our members borrow better, save better, spend better, invest better and protect better. we cannot just offer the products that are the most attractive financially. We need to be there for our members not just for the large financial decisions in their lives but are all the days in between.

It's not just our opinion that SoFi's the best. We are hearing it from others as well. In March, we ranked #1 in the J.D. Power 2026 U.S. Investor Satisfaction Study for do-it-yourself investing. This award validates our approach to building our Invest product in a thoughtful member-centric way, and we're excited to now be helping a record number of members invest for a better future.

Also just this month, SoFi was named the #1 U.S. Bank by Forbes in their World's Best Banks ranking, beating out institutions that have been around for decades. As part of this comprehensive survey, response were asked to rate banks on a customer service, digital services, financial advice and perhaps, most importantly, trust. Our goal is to become a household trusted brand name, so we couldn't be more proud of this recognition that we are building trust with our members.

While we are pleased with these achievements, it's still day 1, and we are far from where we aspire to be. In fact, this recognition further fuels our drive, continuous iteration and learning leading to innovation is the key to our success. It powers our growth and it strengthens our returns for shareholders. Over the past 8 years, we've grown members by more than 20x from 650,000 to 14.7 million members. In Q1, we once again added a record number of new members at 1.1 million new members, increasing total members by 35% year-over-year to 14.7 million. We also added a record 1.8 million new products in Q1, increasing total products by 39% year-over-year. We now have 22.2 million products.

SoFi continues to accelerate with 43% of new products opened by existing SoFi members versus 40% last quarter and 36% in Q1 of 2025. This clearly demonstrates the effectiveness of our everything financial services app strategy and our ability to build deeper multiproduct relationships with members, which in turn will drive higher lifetime value.

Our strong member and product growth powered our revenue growth in the first quarter. Adjusted net revenue was ahead of expectations at $1.1 billion. This is up 41% year-over-year, an acceleration from last quarter's very strong growth rate. Our Lending segment had a particularly strong quarter, generating $629 million in adjusted net revenue. Importantly, our net interest income and origination fees in the Lending segment totaled $639 million this quarter. In total, we had our best quarter ever for loan originations at $12.2 billion, which was up nearly $1.7 billion from just last quarter and included record originations across personal, student and home loans.

Of the $12.2 billion in originations, $9.2 billion was for our Lending segment and $3 billion was for our loan platform business. The development of our loan platform business over the last 18 months has allowed us to better meet the borrowing needs of more members. Our strategy for what we put in the balance sheet versus through the loan platform business remains guided by the principle that LPB loan originations reflect the incremental volume we would not otherwise originate for SoFi's balance sheet for a variety of reasons, including capital ratios, managing the overall growth of the balance sheet and their credit profile of borrowers.

In addition to being able to serve more members through these two channels, they also provide greater revenue diversification. For example, Balance sheet originations provide very visible and recurring cash revenue generation through net interest income over the life of the loan. In Q1 2026, we generated $690 million in cash net interest income which provides revenue visibility further contributing to our durable performance and cash generation. But this also comes with default risk and capital usage over the same time period.

LPB loans, on the other hand, paid the majority of cash upfront but free up capital instantly and remove their credit risk for SoFi. Together, financial services and our technology platform generated revenue of over $500 million an increase of 24% year-over-year and representing just under half of our total revenue. Our Financial Services segment continues to deliver impressive revenue growth, up 41% year-over-year to $429 million. The Technology Platform segment delivered net revenue of $75 million, which was negatively impacted by the loss of a previously discussed large customer. Total fee-based revenue across our business was $387 million, up 23% from the prior year.

In addition to delivering durable growth, we delivered strong returns and profitability. In the first quarter, adjusted EBITDA was $340 million, up 62% year-over-year. Our adjusted EBITDA margin for the quarter was 31%. Our incremental EBITDA margin was 41% as we continue to balance reinvesting in the business to drive long-term growth and profitability. Net income in the quarter was $167 million at a margin of 15%. Earnings per share were $0.12 or $0.13 on a constant stock price basis quarter-over-quarter. Finally, our tangible book value ended the quarter at $9.2 billion, up 83% year-over-year and $7.21 per share, which is up 57% year-over-year. It is clear that our diversified business is uniquely built to deliver a winning combination of growth and returns. And we continue to invest heavily to make our existing products even better to build new products to help our members get their money right and to further strengthen our trusted brand name. These investments will power our durable compounding growth and drive strong returns as we continue to scale.

Let me now spend a moment discussing our brand building efforts which are key to driving new members to SoFi, feeding our productivity loop and growth. In the first quarter, our unaided brand awareness rose to an all-time high of 10%. That's up 300 basis points from a year ago. This is a reflection of our ability to meet our members where they are with the message of financial empowerment. So far in 2026, we completed another successful season of TGL presented by SoFi which recorded significant fan engagement and momentum. We also kicked off the NBA playoffs with the SoFi Play-In tournament featuring 6 incredible win-or-go-home games that brought in nearly 20% more viewers than last year and set new records for social and digital viewing. We also expanded our talent partnerships, adding two world-class golfers to Team SoFi, Justin Thomas and Charley Hull. Justin and Charley are true winners who share our passion for helping people get their money right.

Beyond our strong sports marketing efforts, we are engaging with members earlier in their lives so they can build a better future from day 1. For example, this year, we kicked off our Future Wealth Summit, a national campus tour designed to help college students navigate key financial decisions and plan for life after graduation. Students today are making some of the most important [ frontal ] decisions of their lives without the guidance they need. We're excited to bring practical education on banking, credit monitoring and investing to put them on the path to success.

Turning now to product innovation, starting with crypto, which has been a key focus over the past year. We believe the crypto super cycle that is underway will completely transform financial services, enabling frictionless money movement. We are well positioned to benefit from this super cycle given our unique position as a tech company that is underpinned by the strength and stability of being a national bank. This is why we've been building a strong foundation on which we can develop and grow multiple new products and businesses and realize the benefits of crypto and blockchain across our entire ecosystem.

In December, we took a big step forward on this journey with the launch of SoFiUSD. This managed the first national bank to launch its own stablecoin on a public permissionless blockchain. So SoFiUSD is at the heart of our strategy to make it faster, cheaper and safer for people around the world to move money. During Q1, we began minting SoFiUSD, the next step towards building compelling use cases for the coin. We also formed an important partnership with Mastercard to enable SoFiUSD settlement across their global payments network. This will create interoperability between digital assets and fiat currencies and eventually allow for the settlement of transactions 24 hours a day, 7 days a week versus just during business hours now.

This brings me to our new big business banking offering, which was officially launched earlier this month. Today, companies operating fiat and crypto are forced to use multiple providers and are left waiting days for transactions that should take seconds. As a nationally chartered bank, we saw a tremendous opportunity to bring fiat and crypto banking to businesses on a single, integrated and fully regulated platform. Our big business banking clients can hold funds in regulated business deposit accounts with institutional-grade safeguards, move money and crypto in real time with API-driven payments and given fiat and crypto instantly through native SoFiUSD net and burn capabilities while maintaining reserves within SoFi's regulated environment. We will start with companies that are operating in crypto or crypto adjacent industries, but as more and more companies look to operate across both fiat and digital assets, SoFi will be able to support those needs at scale, including on behalf of other large banks.

Turning now to an update on SoFi Plus, our premium membership. Plus is positioned to be the best of every SoFi product, all wrapped into one member experience. On April 1, we relaunched SoFi Plus with significantly enhanced benefits to bring the best of SoFi strategy to life while making a product a pay-only subscription. With the relaunch, we expanded our benefits, which now include our highest APY in deposits at 4.5% for up to $20,000, 1% matched in deposits into taxable SoFi Invest accounts, 1% match on crypto purchases, unlimited one-on-one sessions with financial planners, a boost on SoFi credit card rewards and so much more. Overall, this membership can unlock well over $1,000 in annual value for a fee of just $10 per month, less than the cost of today's lunch and we will continue to roll out product enhancements and expand our offering while also providing special member options for military members and young adults as well as through our SoFi At Work partnerships.

The initial results of SoFi Plus since April 1 relaunch have been incredibly positive. We have seen strong growth in new paying subscribers and the vast majority of new Plus paying subscribers or existing SoFi members who subsequently take out an additional product after signing up for Plus. SoFi Plus is not only driving a recurring and visible cash revenue stream that is enhancing the awareness of the significant breadth of SoFi products as an everything app and in turn, driving greater cross [indiscernible] and increased lifetime value. I would encourage everyone listening to try our rewards calculator on our website to see just how much you can earn from SoFi Plus.

Now to our Tech Platform segment. We entered 2026 with the most comprehensive set of capabilities we've ever offered banks, fintechs and brands. Given the breadth of our products, which extend well beyond the capabilities we acquired through Galileo and Technisys, we will be launching a new unified brand and restructured go to market later this year. Over the coming months, we will roll out the new brand, SoFi Technology Solutions. The new brand reflects the more comprehensive set of products and services that we now offer enterprise clients across a total of 4 platform businesses. First, in processing, we continue to see strong momentum with our client rollouts on our modern cloud-based processing platform. We have 13 new clients that generated revenue in the first quarter that were not generating revenue a year ago including successful implementations with fintechs and major consumer brands.

We've built a healthy pipeline of additional customers and are excited to get more programs off the ground in the future. For example, in 2026, we are launching an expanded relationship with 1 of the top 3 telecommunication brands in the U.S. and a new program with a financial services firm in the short-term lending space.

Our second platform, Banking Core Ledgers and Services includes our modern banking core and the many turnkey API powered solutions needed for banking-as-a-service offerings. In this business, we are about to take a major step forward. This summer, we will complete the implementation of our new core platform with SoFi Bank, our first scaled launch with a U.S. regulated bank. This will serve as a launching point to bring our new banking stack to other institutions. For SoFi Bank, our new core process platform will integrate seamlessly with our payments, fraud and card capabilities and importantly, will support ledgering for stablecoin in day one. In fact, the modern core will serve as the backbone for our planned crypto endeavors. We look forward to bringing this new banking stack to other institutions and building the next generation of our digital application platform.

Our vision for our third technology platform business, Payment Hub, is to provide self-serve payment options across every type of money movement, including stablecoins that are faster, cheaper and more secure. Our API-first approach makes it easy to connect to ACH, same-day ACH, wires, FedNow, person-to-person payments and real-time payments. Partners can manage payment flows with ease, maintain compliance and offer a better customer experience. And we'll soon add SoFiUSD payment APIs to our big business banking offering.

The fourth SoFi Technology Solutions platform focused is our risk and fraud platform. Within this platform, we currently offer 7 products that address transaction fraud, account identity verification and account takeovers including Galileo instant verification engine for real-time API-based account verification, our payment risk platform for transaction fraud and an identity verification service, which covers advanced compliance and sanction scenarios. These products leverage our latest models, often using over 600 data points for a single decision, and we are launching additional products in 2026 to further bolster our risk and fraud offering.

Turning now to innovation within our Lending segment, which is driving record originations across all 3 loan categories. Starting with personal loans, we would support our mission of helping members reach financial independence. With the SoFi Personal Loan, members can refinance absurdly expensive credit card debt held at other institutions so they can stop paying for other people's rewards and focus on their own financial well-being. During the first quarter, we originated record personal loan volume of $8.3 billion, taking share from competition and helping even more members get their money right.

We see significant opportunity to help more people refinance high interest debt, and we will continue to innovate with new product features and leverage technology to improve the member experience. For example, we're rolling out our Personal Loan Doc Coach which uses AI to validate members pay subs and other documents, streamlining the application experience and driving cost savings over time. We're also testing new credit model features that can leverage enhanced data pools. This has the potential to help us make even better decisions that potentially extend credit to more members in the future.

SoFi Student Loans help more and more students finance their education while they are in school as well as supports students who have already graduated by helping them refinance their debt at a lower rate. Student Loans have been a great way to introduce the SoFi brand and what we stand for to members early in their financial journey. Over time, we'll be there as their financial needs grow, which is why the value generated by our student loan business extends well beyond the interest income we collect on the initial loans. In Q1, we had our best quarter of student loan originations ever at $2.6 billion. This is up 2.2x year-over-year but originations volume is more than just a number. In generating this volume, we helped nearly 10,000 members finance their education so they can realize their ambitions, and we helped over 10,000 members to completely pay off their student loan debt.

Turning to Home Lending, which is an area I'm particularly excited about. We've been hard at work creating a fast seamless experience for our members who want to purchase a home, refinance an existing loan or draw equity. Even while the overall home lending market is stagnant, momentum has been building in this business. We set origination records for 4 straight quarters, including Q1 when we originated $1.2 billion in home loans. This is up nearly 2.4x from the first quarter of last year. Here, too, we continue to innovate. For example, last week, we announced a new equity line of credit experience, making it possible for members to access to equity in their homes through a seamless end-to-end experience on the SoFi platform.

Finally, we continue to see healthy growth in our tangible book value. We recognize there has been ongoing discussion around last year's capital raises and their impact on dilution. As we previously explained, these capital raises were opportunistic with proceeds intended to be deployed across a range of opportunities. Based on our analysis, the capital raises would not be dilutive to tangible book value on a per share basis. And this has proven to be the case. Our tangible book value per share increased 57% year-over-year to $7.21, up from $4.58 per share and is up 3% quarter-over-quarter from $7.01 a share. This is nearly $340 million of an increase in absolute terms.

As you can see, our financial results are being driven by continuous innovation that is providing real value to our members. We continue to focus relentlessly on driving innovation and developing products and solutions to help our members navigate all the major financial decisions in their lives and every day in between. We will continue to put our members first and help them achieve their American dream. Over time, the trust that we build with our members will lead to deeper relationships. This, in turn, will drive a higher lifetime value per member and will power our compounding growth and returns.

With that, I'll turn it over to Chris.

Thank you, Anthony. We've had a solid start to the year. Our innovation in brand building is powering exceptionally strong revenue growth. In the first quarter, adjusted net revenue grew 41% to $1.1 billion. This is a further acceleration in the growth rate from the prior quarter. Importantly, we generated $1.1 billion in cash revenue in Q1 which includes approximately $690 million from net interest income and approximately $390 million from interchange fees, brokerage fees, technology and loan platform fees and loan origination fees. Cash is defined and accounted for the same universally no matter what type of company it applies to. In the first quarter, these cash revenue streams were nearly equivalent to our total reported adjusted net revenue. This is the first time we have disclosed our cash revenue as we think it's a helpful financial measure to consider given the different accounting treatments companies use. As we mentioned, it's our second consecutive quarter of more than $1 billion in cash revenue, but I would also note that 100% of our reported adjusted net revenue was cash revenue in both 2024 and 2025. This means that the scale and seasoning of the loans on our balance sheet has reached the point where the upfront noncash premiums on new originations are being balanced by pull to par and other mark-to-market impacts on the existing portfolio leaving the vast majority of our reported revenue being approximately equal to our cash revenue. We have consistently said that over the life of the loan, there is no difference between fair value accounting and cost accounting, and we are seeing that play out in our reported results.

In addition to our strong revenue growth, we delivered strong profitability during the quarter. Adjusted EBITDA was $340 million, up 62% year-over-year at a margin of 31%. Net income was $167 million at a margin of 15%. Net income was up 2.3x year-over-year, and earnings per share was $0.12, which was negatively impacted by $0.01 due to a decrease in discrete tax benefits related to employee stock compensation given share price movement between Q4 2025 and Q1 2026. At a constant share price quarter-over-quarter, EPS would have been $0.13. This was our tenth consecutive profitable quarter.

Turning now to our segment performance, starting with Financial Services. For the first quarter, Financial Services net revenue was $429 million up 41% year-over-year. Contribution profit was $196 million, up 32% from last year, and contribution to margin was 46%. Net interest income for this segment was $228 million, up 31% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 55% to $201 million for the quarter. During the quarter, we continue to see healthy growth in interchange up 54% year-over-year, driven by nearly $25 billion in total annualized spend across money and credit card. We also had record brokerage fee revenue, which more than doubled over the past year.

In terms of our loan platform business, one of our key differentiators at SoFi is having both a very strong balance sheet and an established loan platform business supported by a diverse set of partners that go well beyond private credit asset managers. In fact, during the quarter, we added $3.6 billion of new commitments with 3 new partners, including a leading global bank, a prominent insurance group and a top 5 global private asset management firm. Our diversified model allows us to efficiently channel loan volume based on a number of factors, including borrower demand, capital levels and credit risk with a focus on maximizing risk-adjusted returns. Each channel we utilized provides benefits to our business. For example, our balance sheet lending generates stronger revenues over the life of the loan, whereas LPB generates capital-light fee income with no retained credit risk or loss share agreements. Having this optionality will allow us to generate more a consistent growth through a variety of environments. Overall, during the first quarter, we saw exceptional demand from members, which is reflected in our record personal loan originations of $8.3 billion.

Given our very strong capital ratios, we channeled nearly $5.4 billion of personal loans to our balance sheet and approximately $3 billion through our loan platform business. This deliberate decision resulted in lower LPB originations relative to the fourth quarter, although LPB originations were up 90% year-over-year. I would note that we had significant demand from LPB partners over and above what we decided to fulfill this quarter, but we did sell all demand from our contractual commitments and more.

Turning to our tech platform business, where we delivered net revenue of $75 million in the first quarter reflecting the exit of a large client who fully transitioned off our platform prior to year-end. Contribution profit was $12 million at a contribution margin of 16%.

Turning to our Lending segment performance, which was very strong during the quarter. In addition to record personal loan originations of $8.3 billion, we also saw record originations in student and home loans. Student loan originations were $2.6 billion, up 2.2x from the same period last year. Home loan originations were $1.2 billion, up 2.4x from the prior year. For Q1, adjusted net revenue for the segment was $629 million, up 53% from the same period last year. Contribution profit was $382 million with a 61% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 39% year-over-year to $500 million and the balance of the growth came from loan origination fees, which were up 36% year-over-year in home loan sales, which were up more than 2x year-over-year.

Capital markets activity was strong in the first quarter. We've sold or transferred to our loan platform business, $3.8 billion of personal and home loans. In terms of home loan sales, we closed $765 million at a blended execution of 102.1%. Additionally, we sold $89 million of late-stage delinquent personal loans in line with prior quarters.

In addition to our loan sales, we executed a $919 million securitization of loans originated on behalf of our partners through the loan platform business. The transaction priced at an industry-leading cost of funds level with a weighted average spread of 86 basis points, our best execution for any securitization deal to date. To meet standard industry risk retention requirements, we contributed loans from our balance sheet that represented a 5% vertical slice across the securitizations tranches. Importantly, we do not retain any first loss or horizontal risk position.

Turning to credit performance. Our credit remains strong, performing in line with our expectations and driving attractive returns across all loan types. Our personal loan borrowers have a weighted average income of $154,000 and a weighted average FICO score of 745 while our student loan borrowers have a weighted average income of $161,000 with a weighted average FICO score of 767. For personal loans, the estimated all-in net charge-off rate was flat quarter-over-quarter and down nicely from a year ago. Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 4.4%, which was the same as last quarter and down roughly 40 basis points from the first quarter of 2025. Including the impact from the [ DQ ] sales, the net charge-off rate was 3.03%. This is up 23 basis points from the fourth quarter, but down 28 basis points for the first quarter of 2025. The sequential increase was primarily a function of us maintaining consistent [ DQ ] sales of around $90 million per quarter while our balance sheet grew at a faster pace. Beyond balance sheet, 90-day delinquency rate was 47 basis points, down 5 basis points from the last quarter. For student loans, the annualized charge-off rate was 65 basis points, down 11 basis points from the prior quarter. Beyond balance sheet, 90-day delinquency rate was just 10 basis points, down 4 basis points from the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans, in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originating from Q4 2022 to Q2 2025 have net cumulative losses of 4.64% with 36% unpaid principal balance remaining. This is well below the 6.32% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve widened by 9 basis points during the quarter. In fact, this gap has widened each of the last 7 quarters since we began measurement. Additionally, looking at our Q1 2020 through Q4 2025 originations, 61% of principal has already been paid down with 6.8% in net cumulative losses. Therefore, for life of loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 39% of unpaid principal would need to be approximately 10%. This would be well above past levels at similar points of seasoning, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. These markets are developed alongside a third party, which feeds our actual loan level data into their proprietary model and are reviewed by our independent auditor as detailed in our filings. At the end of the first quarter, our personal loans were marked at 105.4%, down 27 basis points from the prior quarter. This was driven by an increase in the discount rate, which was due to a higher benchmark rate as well as a modest decline in WACC and a modest increase in the default rate assumption. These changes were partially offset by a modest decrease in the prepayment rate. At the end of the first quarter, our student loans were marked at 105.2%, down 40 basis points from the prior quarter. This was driven by an increase in the discount rate due to a higher benchmark rate and was partially offset by a modest decrease in the prepayment rate. The WACC and default rate assumptions remained relatively consistent with the fourth quarter.

Turning to our balance sheet. In the first quarter, total assets grew by $3 billion. This was driven by $4.1 billion of loan growth, partially offset by a reduction in cash, cash equivalents and investment securities of $940 million as a result of using some of our equity to fund loans. Total company-wide cash at quarter end was $3.8 billion. On the liability side, total deposits grew by $2.7 billion to $40.2 billion primarily driven by growth in member deposits. Our net interest margin was 5.94% for the quarter, up 22 basis points sequentially. This included a 25 basis point decrease in cost of funds, partially offset by a 2 basis point decrease in average asset yields. We continue to expect a healthy net interest margin above 5% for the foreseeable future. In terms of our regulatory capital ratios, we are very well capitalized. Our total capital ratio of 21% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $4.2 billion year-over-year to $9.2 billion including the benefit from new capital raised in 2025 as well as organic growth in earnings. The tangible book value per share at quarter end is $7.21 up from $4.58 a year ago, a 57% increase.

Let me finish by providing our outlook for Q2. In line with market expectations, we now expect an interest rate outlook consistent with the Fed funds futures and no rate cuts in 2026. Now for our specific guidance. For the second quarter of 2026, we expect to deliver adjusted net revenue growth of approximately 30% from Q2 '25, which would equate to roughly $1.115 billion, an adjusted EBITDA margin of approximately 30%, which would equate to roughly $330 million and an adjusted net income margin of approximately 12% to 13%, which equates to roughly $0.10 to $0.11 of EPS. As I mentioned in our call in January, each year, we have seasonal payroll taxes during the first two quarters of the year, and we are accelerating marketing expenses in the first half of 2026 in addition to our significant investments in product innovation. This increased expenditure will drive growth in the back half of 2026 and over the long term, and it is reflected in our second quarter guidance.

Looking beyond Q2, we expect to see continued revenue growth and strong growth in EBITDA, net income and EPS, which will get us to our full year guidance, which remains unchanged. Overall, Q1 was a solid start to the year. We continue to have strong momentum in our business and are on track to hit our 2026 and medium-term guidance.

Let's now begin the Q&A.

[Operator Instructions] Our first question comes from Andrew Jeffrey from William Blair.

I appreciate you taking the question. Anthony, I wonder if you can put a little finer point on the decision process by which you determine how much you want to hold on your balance sheet in terms of personal loans versus the LPB. Wouldn't it behoove the company to maximize platform sales in this environment, hence, fee income? I'm just trying to understand exactly what the puts and takes are when you look at that decision every quarter.

Sure. Thank you for the question. We have a lot of optionality when it comes to thinking about how to deploy our capital and how to optimize revenue and profits. Our goal, as we say each quarter is to drive durable revenue growth through innovation and branding and to deliver strong returns. And so when we think about the two options, if we're going to put loans on our balance sheet, they obviously require capital and they have credit risk. But they also have a revenue stream that lasts 2 to 3 years as it relates to personal loans. And so that generates really attractive net interest income to us. But obviously, there's a limit to how much we can put on our balance sheet based on our capital ratios and other risks that we're balancing. LPB revenue, on the other hand, doesn't require capital. We're basically producing on behalf of somebody else. And so it doesn't have retained credit risk and it has the cash flow upfront. And so we'll use those underlying factors as we think about the considerations. But what I said in the prepared remarks and what I'd say here is the loan platform volume that we do is essentially the volume that we would not otherwise do for our balance sheet based on all the factors that I just considered. So putting less on our balance sheet may be a driver, and therefore, we don't want to underwrite it, and we, therefore, do with our loan platform business. Similarly, depending on what our revenue streams are a year from now, we want more NII in that period relative to cash flow in this period. Some people will raise the question about concerns about private credit. We're not really seeing any issues in our own performance nor in the demand that we have for LPB revenue and loans from our partners. In fact, we have demand above our contractual obligations that we have on volume that we're producing. But the volume that we put through that channel is volume that we would not otherwise do in our balance sheet because of either our concerns on credit ratios or the capital ratios or credit profile or growth overall on the balance sheet. So it's a good option to have. But I wouldn't think about it as maximizing near-term revenue, it's a balance between near term and longer term revenue.

Our next question comes from Dan Dolev from Mizuho.

Really strong results here. Congrats. Chris, a question for you. Can you maybe give us some color on the segment level guidance? And then I have a very quick follow-up.

Yes, sure. So as I mentioned in our prepared remarks, we feel really good about our 2026 outlook. We're going to be growing 30% top line and delivering $0.50 of EPS. From a segment perspective, as we've said in the past and in any given period, some of our segments may grow faster than expected. Some may be a bit slower. But we're going to effectively allocate capital and resources to the best opportunities that we see in front of us. Given the strong start that we've had to the year, we now expect lending adjusted net revenue growth of at least 30% for the full year of 2026. We expect our tech platform net revenue to be approximately $325 million for the full year. We continue to expect our Financial Services adjusted net revenue growth of at least 40% and then we continue to expect corporate revenue to be in line with what we did in 2025.

Our next question comes from Kyle Joseph from Stephens.

Two quick questions and I hate to focus on accounting rather than results, but I get a lot of questions here. Chris, just give us your thoughts, walk through your accounting on and rationale for capitalizing the market expenses and how you see that impacting EPS and EBITDA. And then just a follow-up there. Just talk about the JPMorgan facility and the difference between a loan sale versus borrowing. If you could give us some clarity on both those much appreciated.

Sure. Thanks, Kyle. So in terms of the capitalized marketing costs, at a high level, what I would say is that we sometimes partner with third parties as an efficient top-of-funnel marketing channel where we pay success-based commissions for acquiring revenue-generating money and invest members. This does not include acquisition of our lending or our credit card members. From a high-level accounting perspective, those payments are incremental, and we're only incurring them upon successful acquisition of the member so under ASC 340-40, they're accounted for as contract acquisition cost, which is very similar to capitalized software expenses that drive future revenue. As a result, we capitalize those costs and amortize them over the expected member life to better match the cost with the debit interchange and brokerage revenue that those members generate over time. What's also important is that the amortization is treated as an expense in EBITDA and net income, i.e., it lowers EBITDA and net income. So we're simply aligning the timing of the cost with the revenue that it supports.

And then as it relates to the JPMorgan loan sale. Prior to September of 2024, we had a senior secured loan on the balance sheet that had no affiliation with JPMorgan. In September of that same year, we opportunistically sold the loan via a special purpose entity to JPMorgan. At the time of the sale, JPMorgan held a controlling interest in the special purpose entity and SoFi did not retain a controlling interest. At that time and what is customary with any new loan sales, we obtained an independent third-party true sale opinion as part of confirming that the transaction method requirements for sale accounting under GAAP, including legal isolation. Based on that, the loan was appropriately derecognized from our balance sheet.

And just want to emphasize one important point about the marketing expenses that are amortized. They are subtracted from revenue, and therefore, they do result in a lower EBITDA is those amortized marketing costs are not excluded from EBITDA. They are expensed against revenue and lower EBITDA.

Our next question comes from Devin Ryan from Citizens JMP.

Another question on loan platform. Obviously, good to see a few new partners and expanded capacity this quarter. Can you just characterize the current depth of demand from third-party capital providers and where there's the most interest rate now? And also just how that evolves through the quarter just given some of the pockets of volatility. It sounds like a little change there. But ultimately, just kind of what that pipeline looks like. And then on the other side of the equation, [indiscernible] just hear about what you're seeing from customers in terms of personal loan demand and also how you're optimizing the funnel to move faster on originations or just even improve market awareness?

Sure. I'll hit on the loan platform piece, and then I'll let Anthony hit on some of the personal loans. But on the loan platform, business demand from capital partners, it remains extremely robust. We announced several partnerships last year with Blue Owl, Fortress and others, and those partnerships are going extremely well. Each of the partners is buying at their contractual level and even above that in several quarters and each of our partners who have come up on term in their existing contracts have extended their contracts. In addition to that, we recently signed up and announced 3 new partnerships totaling about $3.6 billion of commitments over the course of the next 2 years, and that comes from a large investment bank, a large asset management firm and an insurance fund. So the demand that we're seeing is pretty broad-based. It's across asset managers, it's across insurance funds and several investment banks. We couldn't be happier with the demand that we're seeing. And as Anthony mentioned, it's a great situation to be in to have the flexibility both on the balance sheet with the capital ratios that we have as well as the demand that we're seeing from capital markets participants.

And then as it relates to demand, we had a record originations in personal loans [indiscernible] loan refinancing as well as in home loans, our home loans business more than doubled year-over-year, and I believe our [indiscernible] loan business also more than doubled year-over-year in originations and personal loans remains quite robust. We continue to iterate and learn and innovate on every one of our businesses. While these businesses have scaled quite meaningfully and they've been around and they're long tenured, there's still innovation that can be driven. In personal loans, we continue to find new channels of demand. It is definitely a product that is primarily being used today to refinance expensive credit card debt. And so it's real savings with real amortization of expenses that help people get to a better point financially and get to the point that they spend less than they make and invest the rest. So it's a really critical product for our members. On [indiscernible] and refinancing, we had the highest amount of originations that we've had in our history, which is quite remarkable. And it's a product that again helps people lower the cost instantly relative to their existing federal student loans or even private student loans at a higher rate, and that's a product that will definitely benefit even more so as rates go down, given the amount of savings they have today versus benchmark rates that will only improve. The savings in personal loans are dramatic. The savings in [indiscernible] loans are less attractive, and getting more attractive as rates come down. And then in home loans, we're iterating every day to try to get to an outcome that is super fast for our members. We would like to ideally, and I hesitate to say this because I don't know that we'll ever get there, but we're aspirational. We would like to ideally get to a 10-day application to close on a new home on a first lien loan. Getting to 10 days would be remarkable and would be a unique value proposition. Again, we're trying to differentiate each one of our products based on fast selection content convenience and better together. On the home loan, product is largely one but I think comes down to speed, ease of use, which can be a great benefit from AI, which is what we're using to try to drive that faster experience. So strong growth in all 3 products. Credit is performing well, a lot of capital on our balance sheet, we're taking advantage of the opportunity.

The only other thing I would add, going back to the loan platform business point and what's driving some of the demand that we're seeing from capital markets participants is just this flight to quality situation that we're seeing. We're constantly hearing from our partners that they're really pleased with the execution that they're getting on our [indiscernible] particularly with the REIT securitizations that we're doing. We just did a securitization in January that was upsized and we were able to achieve the best spread that we've ever been able to achieve on one of our securitizations. So I think that's also what's driving some of the demand that we're seeing in the market.

Our next question comes from John Hecht from Jefferies.

Thanks for the commentary, especially on the cash-based revenue. First question is you guys have very good momentum in new member additions. I think it was like 1.1 million, which was a record this quarter. Where -- like what channels are you getting these from? And are there any changing characteristics of the new members now relative to, say, a couple of years ago?

The characteristics of our member acquisition are in line with where they've been historically. Each business has an individual marketing plan that benefits from different channels. The lending business has historically been one that relies on legacy channels such as direct mail, but is heavily influenced by affiliate partnerships. Our SoFi Money product is a broad-based digital strategy that we leverage to drive good marketing efficiencies. Our brokerage business continued to benefit from broader selection and IPOs, alternative assets, private offerings in addition to single stocks without commissions or robo accounts and our ETFs. And that, again, is really an affiliate and visual marketing channel acquisition product. Crypto is the new kid on the street, and we're developing new opportunities for marketing there. I would say we launched crypto in a really fast get to market. If we didn't have the technology platform business, there's no way we've been able to launch crypto buy sell and hold in such a short time period or SoFiUSD. And so we benefit from having that platform. That's something we haven't marketed aggressively yet. We want to make sure the product was scalable and one that was meeting the needs of our members, and we have that confirmation now so we'll continue to benefit from increased awareness of SoFi crypto impacting the P&L. Our credit card boost is actually doing pretty well, and we're excited about the changes that we've made over time. We're starting to see people transition from balanced transfers with 0 APRs actually paying a full APR at a reasonable rate. And so that's contributing to the numbers that we reported this quarter both on the interchange side as well as the revolving side. And then our debit interchange, the amount of debit interchange we're driving today is quite significant and scaled and is also contributing. When we talked about the $390 million of noninterest cash revenue, it's now large enough and scaled enough that it's contributing to the overall business and the marketing that we can put behind it is scaling as well.

The last part that I'll mention is SoFi Plus. We launched SoFi Plus in January of 2025. And it wasn't that great of a product at first. But like with most things we launched, we learn, we iterate, we learn and we iterate, and we relaunched in April 1, it's doing phenomenally well. We're pretty excited about it. It's meant to be a product that's the best of SoFi in one subscription product. It's $10 a month. It's more than $1,000 of value. It's primarily a product our existing members are buying. And not only are they signing up for that product that is going to generate a recurring revenue stream kind of like the net interest income that we have that's very visible and recurring, but moreover, it's driving cross-buy. 50% of the people that sign up for SoFi Plus, which again, are largely existing members take out another product. So not only does it drive the direct revenue stream, it's driving additional cross-buying building awareness of us [indiscernible] at everything happened in Financial Services.

Our next question comes from Kyle Peterson from Needham.

I wanted to dive a little more into the tech platform. I appreciate the segment guidance you guys gave. So I guess I just want to see if you guys give any more granularity on how the year should unfold there? I know you guys have several partnerships and product wins from last year that should be going live as the year unfolds and you also have the refresh. So just see like how the year should unfold and what the different puts and takes are to get you guys there from the 1Q run rate?

Sure. Chris gave you a specific guide for the year on revenue. Clearly, the business revenue was negatively impacted by the loss of one large customer, which we've talked about in the past. So that shouldn't have been a surprise. The tech platform revenue, if you do like-for-like on a year-over-year basis was up about 12% year-over-year. We expect that year-over-year growth rate on a like-for-like basis to accelerate throughout the year both from our existing members growth as well as new partner ads. We mentioned in the prepared remarks that we have 13 new partners that have launched in Q1 2026 and generated revenue in Q1 2026 that were not generating revenue in Q1 of 2025. So that revenue will scale over time. It doesn't come instantly. We also have one partner in the quarter that has an existing installed base, and so that's contributing. We have another integration that will take place throughout the year of a partner with a large installed customer base, which will generate revenue as well.

One of the things that may be hard for people to understand is the significant benefit that we have from owning the technology platform on our own innovation. Obviously, the resources there aren't unlimited. We made the decision last year to build out crypto buy sell and hold, made the decision to launch SoFiUSD. Those products are launched and they will start to generate revenue in 2026. That will be incremental, but they definitely use resources that would otherwise be used for other partners and other services. We're excited about the strategy that we have in SoFi Technology Solutions and the 4 areas being processing, core banking and ledgers, payment hub as well as risk platform. And that go-to-market against those 4 products will help us build good sustained growth and our objective is to get back to 20% to 25% compounding growth over the years to come. This is obviously a year in which revenue is going to be disappointed because we lost that large customer, but we'll try to continue to outperform it and deliver on the numbers that Chris shared with you earlier.

Our next question comes from Pete Christiansen from Citi.

Anthony, I'm just curious how you're thinking about where we are in the credit cycle generally. Obviously, credit performance was pretty good this quarter. With the backdrop of certainly higher tax refunds this year. I guess there's some perception that some underlying data that's pointing to things could get a little bit more challenging later this year, giving to you a political macro stress. Just curious on how you're planning the business around some of these perceptions.

Yes. Credit performance has been strong as we reported. We have an early warning dashboard that looks across a number of macro and microeconomic factors in the performance of our own loans as well. And if that turns yellow and then red, we reduced the tiers that we're willing to underwrite. We're not in that situation in any way, shape or form. The current loans are performing well. The macro has also continued to perform well. And not only are we seeing the strong trends in our own loans across the 3 that we operate in. We're also seeing strong demand from loan platform business buyers and otherwise more broadly. We have a lot of capital on the balance sheet. We have the flexibility to meet the demand from the consumers so the combination of strong demand from consumers plus strong performance in credit and adequate capital would be not to be able to meet that demand and hold some of it on our balance sheet and continue to generate increasing net interest income.

As Chris talked about, we had $690 million of cash net interest income and we want to continue to grow that. It's a great baseline of revenue that allows us to invest aggressively because it's super profitable in these other areas, which helps build up the other revenue stream, which is the noninterest cash revenue of $390 million. And for those that aren't familiar, that $390 million reported in the quarter represents the interchange from debit and credit cards. It represents the fees from loan platform business, our technology revenue our brokerage revenue and our referral fee revenue as well as origination fees that consumers pay us, and it's a cash number.

And our last question today will come from Don Fandetti from Wells Fargo.

Home Lending was obviously a large market and you've had some growth there. Would you consider doing anything on the acquisition side sort of building on what you've done in the past? And if not here, like where would you look for potential acquisitions?

The M&A market is very vibrant. There's a lot of assets for sale. We're remaining disciplined and looking for things that can help us accelerate strategically. We feel like we've done the right acquisitions in home loans, that's not an area that we're currently focused on. It's really driving organic growth and we continue to optimize the operation to quickly meet our members' needs. We're still investing a lot in the home loans. As I mentioned, the business more than doubled from origination standpoint year-over-year. So we're doing a much better job meeting the needs of our members.

As it relates to M&A more broadly, I would say we're prioritizing things tied specifically to SoFi Technology Solutions, technology platform business. We've talked about the fact that we'd like to have a revolving credit processing as well as a core tied to that. As we mentioned in the prepared remarks, on July 1, we will launch SoFi Bank on a new modern quarter as well as ledger, and that will unlock a lot of other capabilities that we'll bring to our partners including simultaneously launching big business banking with an API format and an exchange network for Fiat and crypto currencies. And so the areas that we would probably prioritize from an M&A standpoint are really in the technology space, specifically revolving credit as well as crypto and blockchain services. We want to build out the same infrastructure services that we have in Fiat and crypto. So staking as a service, stablecoins as a Service, wallet as a service, et cetera.

Thank you all. Thank you all for joining today. I want to end with a closing remark. If you've taken anything away from today's call, please take away these key points. Our strategy and execution continue to be unmatched by any company I can think of at our scale and put SoFi in a class of one. We've achieved 18 consecutive quarters of exceeding the Rule of 40, far exceeding it again this quarter at 72%, with 41% revenue growth and 31% EBITDA margins when other companies are stumbling, our revenue growth is accelerating. Most importantly, we generated more than $1 billion in cash revenue, with $690 million in cash net interest income paid to [ Aspire ] members at $390 million in cash revenue from debit and credit card interchange revenue, tech platform revenue, brokerage revenue, LPB revenue, referral revenue and origination fees. These non-lending businesses, which do not require capital and are at lower risk were in their infancy only a few years ago. but now they have reached the critical scale to meaningfully contribute to our overall growth and profitability for years to come. Our focus remains on executing to ensure we're iterating, learning and innovating like never before to generate escape velocity in delivering on our mission for our members. Our goal is to have the greatest impact to our members of any company in the world. And in doing so, we will be the winner that takes the most in driving value for our shareholders. Thank you for joining us today and we look forward to seeing you next quarter.

Goodbye. This concludes today's conference call. You may now disconnect.

Good morning or good afternoon all. My name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions].

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Fourth Quarter and Full Year 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website.

Unless otherwise stated, we'll be referring to adjusted results for the fourth quarter and full year 2025 versus the fourth quarter and full year 2024. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-K filing, which will be made available next month.

Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-K. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now, I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. 2025 was a tremendous year on all fronts. Our member focus drove an unprecedented level of innovation across our business that led to the strongest financial performance in the history of our company. As we begin 2026, we're positioned for another year of unprecedented results, and I could not be more excited. We come into the year with a differentiated one-stop shop model with a full suite of products that allow members to borrow, save, spend, invest and protect better.

A demonstrated track record of driving durable growth through continuous innovation resulted in compound annual growth of nearly 50% from $240 million in 2018 to $3.6 billion in 2025. A scaled member base of 13.7 million members, more than 20x larger than the 650,000 members we had in 2018 and our highest brand awareness ever at nearly 10% versus roughly 2% in 2018. Despite the unprecedented growth, we still have massive addressable markets across our existing businesses and huge opportunities for growth in newer areas like crypto, AI and business banking.

And finally, we have a fortress balance sheet, which we further strengthened through $3.2 billion in new capital, increasing our tangible book value by $2 per share to $7 per share, giving us a broad range of optionality. This gives me great confidence that we will continue to drive durable compounding growth for years to come, resulting in superior financial returns.

I will discuss some of what we've planned for the year ahead in a moment, but first, let me begin with our key results for the fourth quarter. Starting with the drivers of our durable growth. We added a record 1 million new members in Q4, increasing total members by 35% year-over-year to 13.7 million SoFi members. This was our first time adding over 1 million members in a single quarter. We also added a record 1.6 million new products in Q4, increasing total products by 37% year-over-year. We now have over 20 million products. Cross-buy continues at an exceptional pace with 40% of new products opened by existing SoFi members. Over the past year, our cross-buy rate has increased by 7 percentage points. This clearly demonstrates the effectiveness of our one-stop shop strategy and our ability to build deeper, multiproduct relationships with members. And as before, we fully leverage new technologies like artificial intelligence.

Our strong member and product growth powered our revenue growth in the fourth quarter. Adjusted net revenue was a record at over $1 billion, up 37% year-over-year, marking our first $1 billion quarter. Together, financial services in our technology platform generated revenue of $579 million, an increase of 61% year-over-year and representing 57% of total revenue.

In our Lending segment, adjusted net revenue grew 15% year-over-year to $486 million. This was driven by strong originations in this segment of $6.8 billion, a 13% increase from the prior year. Combined with the very strong loan platform business originations of $3.7 billion, total originations reached a record of $10.5 billion for the fourth quarter. This is our first quarter originating over $10 billion in loans, demonstrating our ability to originate high-quality loans at scale. In fact, through all of 2025, we originated over $36 billion of loans.

I am also proud to report that total fee-based revenue across our business was a quarterly record at $443 million, up more than 50% from the prior year, driven by a strong performance from our loan platform business, referral fees, interchange revenue and brokerage fee revenue. On an annualized basis, we are now generating nearly $1.8 billion of fee-based revenue, up from less than $1.2 billion in the fourth quarter of 2024. This reflects our delivery diversification towards more capital-light revenue streams.

In addition to delivering durable growth, we delivered strong returns and profitability. In the fourth quarter, adjusted EBITDA was a record at $318 million, up 60% year-over-year. Our adjusted EBITDA margin for the quarter was 31%. This is above our original goal of long-term margins of 30% set when we went public. Our incremental EBITDA margin was 44% as we continue to balance reinvesting in the business to drive long-term growth and profitability. Net income in the quarter was $174 million at a margin of 17%. Earnings per share were $0.13.

Finally, our tangible book value ended the year at $8.9 billion. In 2025, we grew tangible book value by over $4 billion and $2.54 per share. Our diversified business is uniquely built to deliver a winning combination of growth and returns. In the fourth quarter, we achieved a Rule of 40 score of 68%, once again demonstrating the strength of our model and our solid execution. The consistency with which we've exceeded the Rule of 40 continues to put us in [indiscernible] among fintechs and technology companies more broadly.

Despite these exceptionally strong results, I know that we are just getting started. We are still just scratching the surface of the opportunity that exists across each of our existing products and the newer areas like crypto. Given these dynamics, I've never been more optimistic about our prospects than I am today. This is why we will continue to invest heavily to make our existing products even better by providing the best speed selection experience to build new products to help our members get their money right and to further strengthen our trusted brand name. Our investments will power a durable compounding growth and drive stronger returns as we continue to scale.

Let me now spend a moment discussing our brand-building efforts, which are key to driving new members to SoFi, feeding our productivity loop and growth. In 2025, we significantly increased our brand strength, and stature through our first ever music partnerships, including becoming the presenting partner of the CMA Fest and partnering with Country Music Star, Kelsea Ballerini and by expanding our sports partnerships. More recently, we signed [indiscernible] NFL MVP, Josh Allen, to team SoFi. Josh has been instrumental in showcasing the most valuable product in financial services in SoFi Plus. This partnership included ads across some of the most watched NFL game of the season and has continued through the existing postseason playoffs. So far, this has been one of our most successful campaigns ever, more than doubling the effectiveness of our advertising in the targeted market.

This year, we also kicked off season 2 of TGL presented by SoFi with an exciting plan from the biggest names in Dow. So far, the season is off to a great start, building on the momentum from last year with viewing guardians up 22% versus a year ago in the first 5 matches. And later this year, the World Cup will be coming to SoFi Stadium in Los Angeles, allowing fans worldwide to get a glimpse of the nation's most advanced stadium and the most ambitious stage in sports and entertainment.

Our marketing efforts continue to have a strong effect driving unaided brand awareness to an all-time high of 9.6% during the quarter. That's up 250 basis points from the fourth quarter of 2024, a 33% improvement.

Turning now to our product innovation across our business. At SoFi, we are one team united under a common purpose of helping people achieve financial independence to realize their ambitions. We are passionate about meeting our members' needs driving us to work harder and innovate more rapidly to bring them the best products and services in the market. We call this the SoFi way. Guided by the SoFi way with a differentiated business model and capabilities, we are uniquely positioned to benefit from both the crypto and AI technology super cycles taking place.

Only SoFi has the strength and stability that comes with being a national bank, a tech-driven culture with a track record of innovating in the financial services industry and a large and growing member base that embraces innovation. A full set of products that allow us to leverage crypto and blockchain technology in a number of innovative ways and a technology platform that allows us to innovate more rapidly and serve us as a channel to support business clients. Since March, when the OCC made crypto permissible for national banks, we've moved with urgency to bring new products to our members. In October, we enhanced our unprecedented money movement offering with the launch of SoFi Pay, our first payment product that leverages blockchain technology to provide fast, seamless, low cost and safe international payments. We've already expanded SoFi Pay to include over 30 countries including Mexico, India, the Philippines, Brazil and much of Europe. SoFi Pay is available to all members right in their integrated SoFi App, making money movement easier than ever.

In November, we announced SoFi Crypto, once again giving members the ability to invest in dozens of tokens directly in our SoFi app. As the first nationally chartered bank to launch crypto trading for consumers, our members can instantly buy crypto currencies from their FDIC insured deposit account, which is a very meaningful difference. At other providers, customers funds uninsured earning no interest as they wait to fund digital asset purchases. At SoFi, those funds sit in a SoFi money account protected with insurance and earning up to 4% interest.

In December, we took an even bigger step forward through to the launch of our own stablecoin, SoFi [indiscernible] this launch made us the first national bank to issue a stable coin on public permissionless blockchain. Once again, this is a meaningful step forward in differentiation versus the landscape. For every SoFi USD outstanding, we will have a dollar of cash into our Fed master account, which means there is no credit, liquidity or duration risk, and we will share economics with partners for their marketing and distribution services.

SoFi USD will be a game changer for our business as it enables us to be an infrastructure provider for banks, fintechs and enterprise platforms, positioning us at the center of the crypto ecosystem.

As you can see, we're moving quickly, but we have a lot more to do to accomplish our ambitious plans over the near and medium-term horizons. This year, we will leverage SoFi USD to power SoFi Pay and we'll continue to add more contracts to the offering. Over the medium term, we plan to offer a SoFi Pay experience to people outside the United States, allowing them to receive, send, hold and spend money anywhere, all supported by SoFi USD. This initiative could serve as a launching point to build our brand in a more global way.

In 2026 and beyond, we will look to offer additional crypto products and services, including secured lending by crypto currencies, which will give members better rates on their loans, institutional trading and correspondent payments and settlement via stable coins. For members that hold SoFi USD, we will look for innovative ways to provide them with benefits such as interest or other perks.

Beyond our member-facing initiatives, we are hard at work building our business banking offering, which we will begin to launch in 2026. Our ambition is to be the bank for businesses and other financial institutions that want to transact in both [indiscernible] and cryptocurrencies filling a critical gap that has existed in the market. Leveraging our tech platform capabilities and SoFi USD, over time, we will build an offering that includes institutional and crypto trading, making us the first national licensed bank to offer this service, stable coin as a service, cryptocard issuing, digital asset custody and infrastructure services, and the ability to interchange VAT and digital assets in real time through our SoFi exchange network as well as the ability to settle transactions 24/7 on a virtual ledger. We have brought on significant expertise from the crypto and banking industries, and I couldn't be more excited to see this business take shape in the coming years.

Turning now to SoFi Smart Card, which we launched in the fourth quarter. This new all-in-one card and account allows members to earn significant rewards and an industry-leading API while also growing their credit score. Here's how it works. Members can use their SoFi Smart Card to make purchases just like a typical debit or credit card. Purchase amounts are automatically set aside from the deposit in the SoFi account in real time. The balance can be paid in full each month via funds on hand or an alternative bank account or source of funds. And all the while, members are an unlimited 5% cash back rewards at grocery stores.

We built and launched Smart Card in just 4.5 months with the help of our tech platform, a feat that would not have been possible had we relied on another party. This demonstrates once again how our tech platform gives us a greater ability to customize and launch financial services products faster than competition. Beyond helping drive innovation across SoFi's financial services products, we are excited to see renewed energy around innovation within financial services more broadly. This started to take shape in 2025 with big consumer brands like Southwest Airlines and United Airlines come with us to help them launch new programs that drive greater loyalty and engagement from their customers.

Now we are seeing strong interest from an even wider range of companies, including those based internationally, who see the highly supportive business environment in the U.S., particularly for crypto and are interested in launching new products here. Our tech platform business is in a prime position to support these enterprise clients.

Turning to invest. 2025 was a blockbuster year for SoFi Invest in which we significantly expanded our offering to give members the best selection, including investments that have been traditionally reserved for the ultra wealthy. We give members access to private companies, including SpaceX and Epic Games, access to invest in alternative investments through private market funds managed by Cashmere, Fundrise and Liberty Street Advisors, access to invest in IPOs, including [indiscernible], Gemini, Figma and StubHub. We launched Level 1 options in our own SoFi agentic AI ETF. We made rolling over 401(k)s easier and more efficient, and we continue to make our user interface even more intuitive and engaging.

This expanded offering helped drive a 2.2x year-over-year increase in the brokerage revenue, helping drive invest closer to full profitability, which we expect to achieve this year.

Turning now to our Lending segment, which continues to drive strong revenues and allows us to support members at key points in their lives. We show up with a simple but differentiated message. We are here to help you get your money right. Our personal loan product does just that. With a SoFi personal loan, members can refinance absurdly expensive credit card debt held at other institutions so they can stop paying for other people's rewards and focused on their own financial well-being. For example, if a member is able to refinance $40,000 of debt on which they are paying 24% interest with a SoFi personal loan that has an interest rate that's 10 points lower, they can reduce their monthly payment by nearly $200 moving closer to becoming debt-free.

If we would translate that example across the more than 0.5 million loans that were originated in 2025, you can see that we're having a massive impact on our members' lives. SoFi is the preeminent company offering personal loans originating roughly 15% of total U.S. prime volume. However, the opportunity remains massive as the real addressable market is the nearly $1 trillion of prime revolving credit card debt, just sitting there, waiting to be refinanced at up to half the rate. And that $1 trillion opportunity is before even considering the additional debt that is outside of our traditional credit box, but could be refinanced through our loan platform business.

Our student loans are also designed to help our members get their money rate. Here, too, we have become the preeminent company for refinancing student debt, having a massive impact on our members' lives. We estimate that we will save our members over $400 million in interest expense just under student loans we refinanced in 2025. Despite our strong market share in the student loan refinance market, we see continued opportunity for growth. We estimate the total market opportunity to be around $400 million, which would increase by 25% if rates were to drop 50 basis points.

In addition to refinance, we've launched new private in-school student loans options to help people finance their education along the gaps left by the federal graduate programs. These include medical, veterinary, dental and stem loans with more coming soon.

Turning now to home loans where we had our best year of originations and where we are primed for an acceleration in growth when rates decline. In 2025, we originated $3.4 billion of total home loans, surpassing our prior record set in 2021 when the real estate market was added tight. In fact, in the fourth quarter, we originated home loans at an annualized pace of $4.5 billion, nearly 2x the pace of the prior year, and the opportunity for continued growth is massive. Within our own member base, about 90% of those that have home loans have them with other institutions. As rates come down and many of these members look to refinance, we'll be in a prime position to win that business. Additionally, as others within our 13.7 million strong member base look to purchase a home for the first time, we believe they will come to SoFi as a trusted partner.

As you can see, 2025 was an incredible year by any measure, our best year ever. We leaned into what sets us apart, our unique one-stop shop strategy, our ability to innovate and our relentless focus on helping members get their money rate. Heading into 2026, we see a tremendous opportunity, and we continue to be energized by our values in the SoFi way to capture it.

With that, let me now turn the call over to Chris to discuss our financial results for Q4 and 2025.

Thank you, Anthony. 2025 was an exceptional year. Adjusted net revenue for the year was a record at $3.6 billion, up 38% year-over-year. Adjusted EBITDA was also a record at $1.1 billion, up 58% year-over-year at a margin of 29%. This is our first time surpassing $1 billion of EBITDA. Net income was $481 million at a margin of 13%. Net income was up 2.1x, excluding onetime items in the prior year, and earnings per share was $0.39.

We finished the year strong with a great fourth quarter. In Q4, adjusted net revenue grew 37% year-over-year to a record $1.013 billion. Adjusted EBITDA was also a record at $318 million and a margin of 31%. Net income was $174 million at a margin of 17% and earnings per share was $0.13. This was our ninth consecutive profitable quarter.

An important driver of our growth was the increased contribution from capital-light, non-lending and fee-based revenue sources. Our financial services and tech platform businesses generated $579 million of revenue, up 61% year-over-year, and we also generated record fee-based revenue across all segments of $443 million, up 53% year-over-year.

Turning now to our segment performance, starting with Financial Services. Financial Services generated record revenue of over $1.5 billion in 2025, up 88% from the prior year. For the fourth quarter, net revenue was $457 million, up 78% year-over-year. Contribution profit was $231 million, up 2x from last year. And contribution margin was 51%, up from 45% last year. Net interest income for this segment was $208 million, up 30% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew 2.6x to $249 million for the quarter, which equates to nearly $1 billion in high-quality fee-based income on an annualized basis.

Importantly, improved monetization continues its strong contribution to revenue growth. Annualized financial services revenue per product was $104 in the fourth quarter. That's up from $81 in the fourth quarter of 2024, a year-over-year increase of 29%, and we see continued upside as newer products mature.

The successful expansion of our loan platform business was one of our greatest achievements in 2025, further diversifying our revenue and making our growth more durable. We've built this business into a powerhouse. In Q4, our loan platform business generated $194 million in adjusted net revenue, an annualized pace of $775 million, which is nearly 3x higher than the same period last year. And as we head into 2026, we continue to see strong demand from both existing and new partners.

Beyond our loan platform business revenue, we continue to see healthy growth in interchange, up 66% year-over-year, driven by close to $22 billion in total annualized spend in the quarter across money and credit card.

Turning to our tech platform, which generated record revenue of over $450 million in 2025. For the fourth quarter, the Tech Platform business delivered net revenue of $122 million, up 19% year-over-year. Contribution profit was $48 million and a contribution margin of 39%. This includes the remaining revenue earned from a large client who fully transitioned off our platform prior to year-end.

Turning to our Lending segment. Lending generated record adjusted net revenue of over $1.8 billion in 2025, up 24% from the prior year. For the fourth quarter, adjusted net revenue was $486 million, up 15% from the same period last year. Contribution profit was $272 million with a 54% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 29% year-over-year to $445 million. During the quarter, we had record total loan originations of $10.5 billion, up 46% year-over-year. Personal loan originations were a record at $7.5 billion, of which $3.7 billion was originated on behalf of third parties through [ LTV ]. In total, personal loan originations were up 43% year-over-year.

Student loan originations were $1.9 billion, up 38% from the same period last year. Home loan originations were a record $1.1 billion, a year-over-year increase of nearly 2x. Capital markets activity was very strong in the fourth quarter. We sold and transferred through our loan platform business, $4.5 billion of personal and home loans. In terms of personal loans, we closed $100 million of sales in whole loan form at a blended execution of 106.5%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise had if we held on to the loans.

Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge off, both from our improved recovery capabilities and by maintaining servicing.

In terms of home loan sales, we closed $692 million at a blended execution of 102.3%. In addition to our loan sales, we executed a $463 million securitization of loans originated through the loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at an industry-leading cost of funds level with a weighted average spread of 101 basis points.

Turning to credit performance. Our credit remains strong, performing in line with expectations and driving attractive returns across all loan types. Our personal loan borrowers have a weighted average income of $158,000 and a weighted average FICO score of 746, while our student loan borrowers have a weighted average income of $149,000 with a weighted average FICO score of 765.

For personal loans, the annualized charge-off rate was 280 basis points, up 20 basis points from the third quarter. I would note that while this is up from last quarter, it is down slightly from the second quarter and down over 50 basis points from a year ago. In fact, this is our second best quarter since 2022. Importantly, the increase in our balance sheet charge-off rate is driven by mix rather than credit deterioration. In Q4, as a result of increased LTV activity, we retained fewer new loans on the balance sheet. This naturally increases the average age or seasoning of our personal loan portfolio held on the balance sheet. Adjusting for this seasoning, underlying credit trends actually improved quarter-over-quarter.

And we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.4% versus 4.2% last quarter. The on-balance sheet 90-day delinquency rate was 52 basis points, up 9 basis points from last quarter, also driven by portfolio seasoning. I would note that the delinquency rate is down year-over-year.

For student loans, the annualized charge-off rate was 76 basis points, up slightly from 69 basis points in the prior quarter, driven primarily by seasonality as well as the impact of a student loan repurchase that began in Q1 2025 and concluded during the fourth quarter. The on-balance sheet, 90-day delinquency rate was 14 basis points, consistent with the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originating from Q4 2022 to Q1 2025 have net cumulative losses of 4.55% with 37% unpaid principal balance remaining. This is well below the 6.27% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance.

The gap between the newer cohort curve and the 2017 cohort curve widened by 8 basis points during the fourth quarter. In fact, this gap has widened in each of the past 6 quarters since we began measurement.

Additionally, looking at our Q1 2020 through Q3 2025 originations, 60% of principal has already been paid down with 6.8% in net cumulative losses. Therefore, the life of loan losses on its entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This will be well above past levels at similar points of seasoning, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we've marked our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the fourth quarter, our personal loans were marked at 105.7%, down 8 basis points from the prior quarter. This included an increase in the annual default rate, which was primarily driven by loan vintage seasoning, not changes to the individual loan loss assumptions, partially offset by a lower benchmark rate.

At the end of the fourth quarter, our student loans were marked at 105.6%, down 8 basis points from the prior quarter, driven by minor changes in the average coupon and annual default rate.

Turning to our balance sheet. In December, we raised $1.5 billion of new capital in the form of common equity. This was our second opportunistic raise of 2025, giving us great flexibility to pursue organic and inorganic growth opportunities. It also allowed us to further improve our funding base. Over the past 2 quarters, we fully paid down our warehouse lines, reducing our funding costs by an estimated $110 million on an annualized basis, fully mitigating the bottom line impact of the additional shares. In the fourth quarter, including the $1.5 billion of new capital, total assets grew by $5.4 billion. This was driven by $3.1 billion of loan growth and approximately $1.7 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $5.4 billion.

On the liability side, total deposits grew by $4.6 billion to $37.5 billion, primarily driven by growth in member deposits. Our net interest margin was 5.72% for the quarter, down 12 basis points sequentially. This included a 30 basis point decrease in average asset yields as we saw a modest mix shift from personal loans to home and student loans, partially offset by a 15 basis point decrease in cost of funds. We continue to expect a healthy net interest margin above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we are very well capitalized. Our total capital ratio of 22.9% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $4 billion year-over-year to $8.9 billion, including the benefit from the new capital raised. Intangible book value per share at quarter end is $7.01, up from $4.47 a year ago, a 57% increase.

Let me finish by providing our outlook for 2026 in the medium term, starting with the macro assumptions that underpin our financial guide. In line with market expectations, our 2026 assumptions are as follows: an interest rate outlook consistent with the Fed funds futures and 2 rate cuts to get us to a 3.0% to 3.25% exit rate in 2026. Real GDP growth of approximately 2.5% and an unemployment rate in the 4.5% to 5% range.

Now for our specific guidance. For the full year 2026, we expect to increase total members by at least 30% year-over-year. We expect adjusted net revenue of approximately $4.655 billion, which equates to year-over-year growth of approximately 30%. We expect adjusted EBITDA of approximately $1.6 billion, which equates to an EBITDA margin of approximately 34%. We expect adjusted net income to be approximately $825 million, which equates to a margin of approximately 18%. We expect adjusted EPS to be approximately $0.60 per share. The guidance assumes a mid-teens tax rate, which we currently believe to be our effective tax rate in 2026.

For the first quarter of 2026, we expect to deliver adjusted net revenue of approximately $1.04 billion, which is a 35% year-over-year increase compared to 33% in the same period last year. Adjusted EBITDA of approximately $300 million, which equates to a margin of 29% versus 27% in the same period last year. Adjusted net income of approximately $160 million, which equates to a margin of 15% versus 9% in the same period last year. And adjusted EPS of approximately $0.12, 2x the $0.06 delivered in the same period last year.

It's important to note that each year, we have seasonal payroll taxes during the first 2 quarters of the year, and we plan to accelerate marketing expenses in the first half of 2026 relative to Q4 2025.

Overall, 2025 has been a remarkable year for SoFi. We are proud of the strong results we delivered and are excited to build on this momentum in the year ahead. Looking beyond 2026, given our differentiated model, the strength of our balance sheet and the tremendous opportunities that exist across our business and in newer areas, we expect to deliver compounded annual adjusted net revenue growth of at least 30% from 2025 to 2028. Additionally, we expect to deliver compounded annual adjusted earnings per share growth of 38% to 42% from 2025 to 2028. Let's now begin the Q&A.

[Operator Instructions] First question today comes from John Hecht at Jefferies.

Congratulations on the good momentum. I guess first -- I guess my question is, you guys gave some good consolidated guidance. Maybe can you break some of those details out at the segment level?

Sure. I can take that one, John. So overall, like we've said in the past, given that we're right in the middle of 2 super cycles with blockchain and crypto and AI, and the fact that we have significant capital cushion in any scenario that we could have possibly imagined and makes us extremely excited about the outlook for our business, both in the immediate and the longer term.

In terms of our 2026 outlook, we expect continued very strong revenue growth of roughly 30% year-over-year. As it relates to the segments for Financial Services, we expect revenue growth of 40% or more. For Lending, we expect revenue to grow approximately 23% year-over-year. And then for Tech Platform normalized for the transition of a large client, we expect revenue growth of approximately 20%. And then for our Corporate segment, revenue should generally be in line with what we saw in 2025 on a dollar basis.

As we look forward out to the medium term, we're expecting at least 30% annual revenue growth compounded between 2025 and 2028, and 38% to 42% annual compounded EPS growth between 2025 and 2028. From a segment perspective, we expect to see continued momentum across all segments. And given the investments that we've made to date, we see the opportunity to accelerate growth in 2027 and '28 across a number of products that are just starting to scale, including our crypto business, our brokerage business, home loans and student loans given the rate environment. So overall, really optimistic about the outlook, given everything in head of us.

The next question comes from Andrew Jeffrey at William Blair.

Great to see the momentum in the business. Anthony, you've talked about driving awareness. And I think you mentioned today on the call, the opportunity for refinancing at $1 trillion. It looks like perhaps that messaging hit an inflection point this quarter, and you mentioned some of the celebrity partnerships. Can you elaborate a little bit on the acceleration in KPI growth, whether it's sustainable, whether you think this is sort of the tipping point in which consumers say, "Hey, look, it's just simply [indiscernible] we have better answer than traditional banks? Can we sort of declare that we've reached that point in your business model?

Thank you for the question, Andrew. We're just -- we are at 9.6% unaided brand awareness. We would love our unaided brand awareness to continue to grow to get into the mid-20s, which would -- when we get there, likely put as a top 10 financial institution. When I joined, our [indiscernible] brand awareness was around 2%. And for those who aren't familiar with that measure, our needed brand awareness is asked in the following way. When you're thinking about a financial services product, please name 3 companies you would consider. So it doesn't ask about student loans. It doesn't ask about personal loans or any of the other products that we have, it just ask that generic question.

The ability to move from 2% to 9.6% is really, really challenging in the time period that we have. The largest banks in our country, the most well-known banks in our country, the most trusted banks in our country, they've been doing it for centuries and some of them are less than centuries, but a very, very long time. So our team has really crushed it in leveraging a combination of branded advertising and performance-based advertising, and we absolutely partner with big, well-known stars, big, well-known entities like SoFi Stadium and innovative things like SoFi [indiscernible] continue to look for those opportunities. But I'm more than confident than ever that we've reached the point where I can go someplace and someone will say, "Oh, you work for SoFi, I have a SoFi account. That wasn't happening 8 years ago. It happens all the time now.

And so one of our prior [indiscernible] '26 is trying to build product quality to such an extent that we drive virality and our customer acquisition costs go down meaningfully because of word of mouth, because of referrals. We're doing incredibly well now as it relates to our return on marketing spend. You can see that in our margins. We delivered more than our long-term margin originally stated when we went public, which we've now increased directionally. So we do believe we can spend money and get a return on it. We have the analytics of that now down. That's what's allowing us to drive more than 30% member growth consistently over the last 8 years and coupling it with product growth.

The 40% cross-buy number, that is a number that's up almost 10% versus a year ago. And that's not easy to do when you're growing the business so quickly on a new member basis. So we're -- we're really hitting on all cylinders. We feel like we have the right marketing formula, but we're not going to rest on our laurels. I really want us to get that escape velocity where the amount that we spend becomes more and more efficient. And this is before implementing AI. It's really about product quality and awareness and that filtering down to greater productivity of our marketing dollars.

The next question comes from Dan Dolev at Mizuho.

Great quarter and epic medium-term guidance. Congratulations. Wanted to ask you maybe, Chris, about LTV, in terms of like how do you think about originations specifically? And like how much should be allocated to LTV versus the other stuff?

Sure. Thanks, Dan. So step back and talk a little bit about our origination outlook for the entire business. Overall, we had record originations in 2025, which were fueled by strong borrower demand across each and every one of our asset classes. What we're seeing so far in 2026 is that, that demand remains extremely robust, and we have more flexibility than we've ever had as a company entering 2026. We expect the total originations for the company will be up strongly year-over-year. And we have the luxury of, a, choosing to drive capital-light fee-based revenue through our strong capital market pipeline, particularly in the loan platform business, as you mentioned, where we just signed a new partner, and we have several partners at final term sheet stages; or b, we have the opportunity to keep these higher returning assets on our balance sheet and putting our newly raised capital to work.

Ultimately, how we're going to allocate those assets is going to be determined by our overarching goals of serving our members, and driving durable growth to maximize returns for our shareholders in the long run. Given that we have significantly scaled our loan platform business to over $14.5 billion in annualized volume, we've diversified our revenue to 44% in fees, and we have the excess capital, we have phenomenal optionality today.

Holding these loans on our balance sheet results in the highest total return for each and every one of our loans, while transferring them through the loan platform business carries no risk and results in immediate revenue and cash as well as attractive returns for us. So we're really in an enviable position of choosing between 2 great options, and we're going to balance them accordingly.

Next question comes from Kyle Peterson at Needham & Co.

Nice results. I wanted to touch on the deposit growth this quarter. It's really impressive for me to see. So I guess is this still largely coming from member deposits? And then could you guys give us a refresher on what the recent downward beta has been? That would be really helpful.

So a couple of things on deposits. I've said since we -- since we opened the bank, that we have a competitive advantage in being able to offer our members a better value proposition than anyone else on something like SoFi Money, combination of a high APY reward opportunities as well as other services that we provide like free certified financial planning, et cetera. I think as rates continue to go down, our advantage will make itself more clear.

Everyone that we compete against in that top quartile, they kind of fall into 2 buckets. One, they're a newer bank that actually does lending and they have an ability to provide a rate of above Fed funds, but they have a deposit base that's so big, they can't be too aggressive because they'll reprice their entire deposit base. And that's a structural issue that we fundamentally don't have. Second is people that are not actual banks that are using sponsor banks and they can only get Fed funds plus 20 or 30 basis points. Because we have such a large and profitable lending business, we can use that -- those profit pools to give a rate that's unmatched by other people.

We haven't had to do that yet because we've had such great demand for our product, and that's driven the deposits. And I think we'll continue to show that we can be the top quartile API and achieve the level of deposit funding that we want, and it remains relatively sticky. The bulk of our deposits almost 97% are direct deposit customers, and that is high-quality primary account relationships, and that's where we're aimed at.

Yes. And the only other thing I would add to Anthony's comments because you asked about it is the downward beta. We've -- since we launched a bank, we've been at roughly a 60% to 70% beta, and we would expect that to stay consistent going forward.

Next question comes from Reggie Smith of JPMorgan.

Congrats on the quarter and strong guidance. Real quick for me. I guess it sounded like, Anthony, you sounded very, I guess, bullish on some of the new products. I'm thinking about the crypto, thinking about stable coin, thinking about the smart card. And I'm curious, do you think that the innovation that we're seeing on the fintech side could spur more interest in demand from your platform -- platform customers. And historically, I think you guys have lived with kind of card processing and things like that. Good stuff, not is as interesting as some of the newer things that are kind of coming down the pipe, maybe can you talk a little bit about that? And if this could signal or catalyze like a change in adoption and growth in Tech Platform?

Sure. The Tech Platform business is definitely benefiting from, let me say, it could benefit from the areas that you just mentioned. So a year ago, the amount of demand or interest that we had in blockchain, in stable coins and wallets, et cetera, for tech platform partners was really not existent. But since the administration change and the OCC came out with the permissibility of crypto and blockchain among banks, the amount of interest in leveraging the tech platform services has really increased quite meaningfully. We don't have anything to announce yet. We're in tons of dialogues with different types of companies. There are companies that are launching a debit card type of product in LatAm countries that's back to 100% by stable coins. It's not backed by Fiat dollars at all. And so there's a fair amount of that. There's also a fair amount of program managers for that type of product.

And then in the U.S., I think there's less activity from financial institutions for those services it's more in the LatAm countries. But we do anticipate it will spill over to the U.S. and some of the international companies will look to the U.S. because it's a more inviting environment from an administrative standpoint.

I think the [indiscernible] is very important because it will establish into law the permissibility of crypto and blockchain by banks. Right now, we're all relying on the OCC interpreted letters, and it'd be much better if it was locked into law, especially if the administration changes in a couple of years. But I'd say the outlook and opportunities that crypto provide for the tech platform as well as our own business are pretty enormous, and I couldn't be more excited about it. It adds a whole another dimension of growth for us, but it also drives a whole another sort of lens of innovation across all of our products. And when you have as many products that we have and you have an entirely new technology platform, at a lower cost, at faster speed and it safer, it could fundamentally change everything that we do.

The next question comes from Kyle Joseph from Stephens.

On the third quarter call, we talked a lot about capital markets, and I think you guys referenced a flight to quality from investors. Just kind of looking to get an update there. Obviously, sentiments change. But yes, a little bit of a capital markets update and any implications on the competitive front on the personal loan side of things?

Yes. Sure. Thanks. So overall capital markets activity and demand remains extremely robust. We continue to see that flight to quality that we mentioned during the Q3 call. We just had a phenomenal quarter in our loan platform business, transferring $3.7 billion of loans on behalf of others. We just signed a new partner this week for 2026. [indiscernible], and we had several other partners who are in final term sheet stages. So overall, demand can be better from an investor perspective.

As it relates to personal loan competition, we just had record originations of $7.5 billion in the quarter. We're seeing that trend persist into 2026. So all else people, we feel great both from a capital markets perspective as well as a borrower demand perspective.

In terms of how we're thinking about, just as it relates to personal loans and growth in the balance sheet, we are expecting to grow the balance sheet in the double-digit billions, which is in line with what we did in 2025. We're seeing great momentum so far here in early 2026, and we expect that to persist throughout the year.

The next question comes from Peter Christiansen from Citigroup.

Congrats on the great momentum here. Anthony, I'm curious to your perspective. There's been some areas within private credit, which have seen some sentiment change more recently. It doesn't seem like it's too much in the direct consumer lending portion of that area. I'm just curious, from your perspective, what you're seeing from some of your private credit partners and demand flows there?

Yes. What I'd say is the attractiveness of our assets and our loans is tied to the returns that they have and we obviously are focused on a prime customer in the business that we're putting on our balance sheet and mostly what we're doing with partners. And the key is to make sure we're delivering our return -- our target return against that. We'll able to manage the performance of prepayments, the performance of defaults and the performance of interest rates and our cost of funding to deliver great value for our partners. And as long as we keep doing that, they'll continue to be in more demand than supply.

With the amount of capital we have on our balance sheet now, I think you could see our growth in originations and revenue and lending start to close a little bit. In the fourth quarter, our originations were up 40% year-over-year, but our lending revenue was up 15%. And so we're really servicing our partners in a great way, but we could keep more of that production if we so chose especially given our confidence in our returns.

The next question comes from Moshe Orenbuch from TD Securities.

Chris, you talked a little bit about the allocation between the loan platform business and the core product of the balance sheet for your Lending Segment. Could you just kind of tell us what the -- what your -- the contribution from the loan platform business you're expecting in the '26 guide?

Sure. We aren't guiding specifically to origination volumes or LPV volumes for 2026. But what I would say is we just exited 2025 at a $3.65 billion quarter annualizes to about $14.5 billion of originations. We feel good about that level heading into 2026. We have sufficient demand from borrowers, like I said, the new one we just signed up. We have all of our existing partners as well have extended their contracts and often upsize their commitments in period. So there's sufficient demand from capital markets participants in our LTV program.

But like we said, we have a very robust balance sheet, high capital ratios, and we're going to balance the allocation between the two to maximize shareholder value.

The next question comes from William Nance from Goldman Sachs.

Just a lot of good questions already on the call. I just wanted to clarify the comment on the expectation for segment growth rate on the Tech Platform business. I think you mentioned it was pro forma for the large customer migration. Is there any way you could give us a baseline or just a jumping off point there as we think about kind of rolling forward the next quarter? And then I think separately, I think that customer has spoken about like a very large termination fee that they would have to recognize. Could you just confirm that was in this quarter if you recognize if you've already recognized that or just how that's being treated, I appreciate the already questions here.

Yes, sure. So as it relates to the outlook that Chris mentioned, he said 20% growth for the Tech Platform, apples-to-apples without the large customer in both years. We're not going to give you more granularity than that. Our outlook assumes no revenue in 2026 from that large customer. The deal with that large customer ended. The revenue also ended in Q4, and the revenue in the quarter from that large customer was part of our contract, and it was equal to the average of the revenue in the last 6 quarters.

So I think people will characterize that revenue in a lot of different ways, but the simplistic way to look at it is the revenue was tied to the ending of the contract. Our revenue came in at a level that was equal to the average of the last 6 quarters. Chris, I don't know if you'd add anything to that.

No, that's fine.

The next question comes from Jill Shea from UBS.

I just wanted to touch on profitability. You've posted some really nice progress on ROTCE. I think you posted 9% in the fourth quarter. And clearly, there's a lot of momentum in the business, and you've been leaning into capital-light businesses and growing the fee income mix. I'm just wondering if you could touch on the ROE of the business over a longer-term horizon. I think you've mentioned 20% to 30% in the past. Has that changed at all? Is the timing of the past changed at all? Perhaps you can just touch on the overall profitability of the business that you're building?

Jill, I would say that we believe we're building a business that will have superior return on equity, return on tangible equity. We still believe it's in the 20% to 30% range. We are not going to underinvest in the business to get to that number while we're growing at the rate that we're growing. You should expect that we're going to continue to manage the business with a 30% incremental EBITDA margin, and as opposed to trying to drive it higher to maximize the ROE in the near term. Ultimately, if you see us growing less than 15% revenue, you're going to see meaningful margin expansion and thus driving to our long-term ROE.

Between there and here, which hopefully I'm long gone by the time we get down to 15% from a -- not [indiscernible] any longer because I expect to be here for the rest of time, unless, for some reason, someone asked me to leave, I hope we never see 15%. But we would be under delivering on the opportunity in front of us if we didn't keep investing. So we're not just dropping it all into investment. We're dropping some to the bottom line, at least $0.30 of every incremental dollar in an annual period, and that will give you a good indication of how we can drive returns over the long term.

But the growth rates of over 30% that are in front of us this year at the scale that we're at, just says we're just getting started. So we don't want to underinvest in that. Chris, do you have anything else.

The final question we have time for today comes from Devin Ryan at Citizens Financial Group.

This is Noah Katz on for Devin. With over $3 billion raised in the back half of the year, you're entering 2026 with a substantially stronger capital position. How should we think about capital allocation towards balance sheet growth versus other strategic opportunities? And can you speak on your appetite for M&A? And also on M&A, please remind us of the hurdles and considerations there?

Yes. So in terms of how we're thinking about capital allocation, like you said, we have 23% capital ratios today. It's over 1,000 basis points higher than our regulatory minimum and meaningfully higher than the regulatory minimum plus our internal stress buffer. So we feel great about the position that we're in. We're in that enviable position where we can grow and put more assets on the balance sheet. These are very good returning assets, that we're underwriting today, and we feel good about that as well as the LTV partnerships, as I've mentioned a few times during this call.

I'll let Anthony touch on anything as it relates to M&A.

There's a lot of opportunities out there. I would say, more than we've ever seen in 8 years here. But I'd also say the bar is really high for us. And when I say really high, we've looked at dozens and dozens of things, some of which were for sale, some of which were interesting to us. What we're prioritizing are things that can accelerate our growth versus the time it would take to build it ourselves. So one area we're very interested in is technology platform capabilities. And so while it's as a custody as a service, stable coin as a service, being able to provide a market exchange for Fiat and for different types of stable coins. Our pay product, SoFi Pay, we launched in September, it is currently using Bitcoin in the Lightning network, the transport [indiscernible] from the U.S. to Fiat dollars in over 30 countries internationally. And so is there a way for us to accelerate SoFi Pay's international expansion through a technology platform type of acquisition or infrastructure.

We're also very interested in international countries and the licenses some small companies could have. In addition to that, in technology platform, we don't have revolving credit card processing and issuing. It's something we can build ourselves, but if there's a technology that's not that expensive, and we don't have to pay for a business, we may do that and leverage our technology platform in core plus their processing to enter the revolving credit technology platform services space.

There are some horizontal things that we've looked at, but nothing of interest. As you know, we've talked about building big business banking, and we look at some SMB platforms to see if they would accelerate our opportunity there. The fact of the matter is they don't. We're likely going to build that ourselves, big business banking that is, which we have seen really strong positive response from the marketplace as it relates to the need of these services to be a bank that can do both [indiscernible] and crypto.

So we feel really good about having optionality in our balance sheet. I don't feel good about finding stuff at the price that we want. So so far, what I'd say is it's all going to be organic. But if something presents itself in the area that I mentioned at the right price versus doing it internally, we would act on that. But the bar is really high.

I know that was our last question. So I just want to wrap the call up. First, thank you all for joining. 2025 was an exceptional year by any measure. The more I went through our results in preparation for Earnings Day, the more I was able to truly [ brass ] how exceptional the fourth quarter and full year are looking through any lens, and how far we've come over the last 8 years. I could not be more proud of our team for building a diverse, resilient business that is impacting our members in an unbelievable way, and that positions us to overcome whatever obstacles are thrown our way.

All of that said, I think it's an understatement to say that we're just getting started, and I am more excited about what lies ahead than I have ever been at SoFi. You can rest assured that we will move faster than we ever have, we'll work smarter than we ever have, and we'll be more resilient than we ever have to capture the massive opportunity in front of us, fresh horses we ride and look forward to seeing you next quarter.

This concludes today's conference call. You may now disconnect your lines.

So 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 Del Grosso. So I'm Jill Shea with UBS, and I'm joined with Tim Chiodo, who covers SoFi with me. So 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 outperformance 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 4 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 stands out 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 1/3 of new accounts that are opened are coming from those 2 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.

Yes. 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 that -- where we have really good market share. 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 want to ensure that we're variable profit positive on a unit economic basis. We're now there and have been for 2 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 $0.70 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% to 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.

Yes. 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 wait list 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 is, 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, midsized 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 it's 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 detailed 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?

Yes. 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 it's 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 $1 billion 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 relative 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 a lot of -- 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 opens up opportunity for the student refis. Can you just elaborate on SoFi's opportunity in student refi and what it could look like when rates come down?

Yes. 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 rate perspective or a credit quality perspective?

Yes. 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 Grad PLUS 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.

And then turning to home lending. I think 2% of all mortgages taken out by SoFi members were actually taken out with SoFi. So what's the expectation for where penetration can go in 2026 and beyond? And how do you plan to drive that?

Yes. I think there's 2 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 second acquisition cost. And then it's outside our existing installed base where we have virtually very, very small market share. So outside of our marketplace 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. We -- 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.

And 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 2/3 of the way through the fourth quarter, do you have any update in terms of credit quality and overall health of the consumer?

Yes. 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. Delinquencies rates were down and everything is performing in line with expectations here in Q4.

And then 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?

Yes, 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 fund 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. And unlike other nonbanks, we have the ability to offer a higher rate, and we don't have to lower rates at the same pace as the Fed, and 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, Jill. 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?

Yes. 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.

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. 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 '26 and beyond?

Yes. We're excited about the Tech Platform and the opportunity set. Main thing I would say about Tech Platform is that it drives our overall product road map 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 road map, 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. We -- 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 was a great update on technology platform. I'm going to pass it back to Jill to close this 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 our -- 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.

We'll begin, I think it's beginning. All right. Great. So for our next panel, we're joined by SoFi CEO, Anthony Noto. Anthony has served as CEO of SoFi since 2018, steering the company through its transformation into a full-service digital bank. And today, he announced the launch of the crypto trading platform as well. His career spans leadership roles at Twitter, the NFL, Goldman Sachs. He's also a graduate of West Point. And as today, as Veterans Day, thank you for your service. I was actually at West Point last week for the Army game. It's really good.

It's beautiful there. Great time of year.

Yes. Well, thanks for joining us. Maybe, Anthony, you could start with running down where we are with SoFi as a story, the key initiatives ahead that are going to drive growth from an already impressive starting point today?

Sure. It's hard to talk about where we are without starting with where we've come from. I joined in approximately January of '18. We set out on a mission that's still our mission today and a strategy that's still our strategy today. And our goal was to essentially help overachievers, people that have done well academically, done well professionally, help them get to the point that they could live their ambitions. Their ambitions could be what size family they want to have, what size home, career they wanted to have, retire when they want to have, live where they want to live.

And it was our view that this cohort of overachievers had been largely left behind by banks because it was hard to make money on them. And increasingly, banks had scaled to the point where they're exiting businesses based on what their ROE was as opposed to what the member or person actually needed and that was my pitch to the Board in December of '17, and we've sort of executed on this one-stop shop approach because there's no way to help people get to where they want to be financially if you don't help them spend less than they make and invest the rest.

Savings is not going to get you there. Investing is critical. And if you don't spend less than you make, you can't invest. So relatively simple formula. It requires us to do everything we possibly can with them, either for all the major decisions they're making in their lives, paying for college, buying a house, getting married, having children but also all the days in between. So we have more information to help them when they make those big decisions.

In 2018, we generated about $250 million of revenue, and we had about 650,000 members. We are about to launch SoFi Money, SoFi Invest and a couple of other products and services. Today, we're on track to do over $3.5 billion of revenue. We just reported results and had over 12 million members and expect to continue to add to that quite significantly, it grew about 35%. We're over 18 million products growing 36%. And we've been profitable, I think, for 8 quarters in a row and are driving really good margins, both on EBITDA and net income margin and growing book value quite meaningfully.

In terms of where we go from here, we think we can sustain significant levels of growth, just focusing on what we're already doing and helping to drive continued brand awareness, driving continued trust, continuing to iterate on the products, making them faster, providing better selection, better features, better functionality, making the entire app more useful and more integrated in addition to providing great content and convenience and making the products all work better together. We think just that alone, we can grow pretty meaningfully from here. If you look at our last 16 quarters, we've exceeded the Rule of 40, which is revenue growth plus EBITDA margin and we've done that 16 quarters in a row with an average of 58%, which is quite remarkable for a financial services company. The business when I joined had 2 products that are both lending products that were basically 100% of revenue in lending, and now we're down to about 45% of revenue in lending.

Lending is a great product, but it's also capital intensive. It can, in some ways, gate your growth. Our growth is really ungated now given the scale we have in the rest of our products and services, and we truly can offer products across the borrowing, savings, spending, investing and protecting. The new initiatives beyond what I already talked about is we mentioned crypto this morning. This is step one of a long road map of products that we will continue to bring to market. I believe blockchain and digital assets are a technology super cycle, similar to AI that will impact every element of the financial services world globally and actually have a bigger impact in third world countries and economies that haven't benefited from banking and capital availability over time.

We'll launch a SoFi USD stablecoin, both the payment stablecoin and deposit stablecoin. The payment stablecoin, we hope to introduce in January, if not sooner. It will be part of SoFi Pay, which we just launched a couple of weeks ago, which is the ability to send payments from the United States across the lightning network, to, in this case, Mexico, into local Fiat. We'll launch Europe and Brazil before the end of the year. But so far stablecoin will be part of that transmission payment process. Our crypto business that we announced this morning, the payments that flow between us and other third parties will all be done with SoFi USD.

SoFi USD will also be used at point of sale. SoFi USD will also be a currency and a tokenization of loans that will also be offered to all of our partners that generate 8 billion transactions, debit or ACH transactions through the Galileo platform per year. And we'll market SoFi USD to every large bank, every regional bank, every consumer company that accepts digital assets and everyone in between. And so we have significant aspirations there. We have secured lending aspirations tied to digital assets and many other investment opportunities.

Beyond that, within invest, we've made a really, really big push to increase awareness for our Invest product. We'll continue to do that. We're actually rolling out crypto in Hong Kong in addition to the United States.

So can you maybe expound on SoFi Pay a little bit more? Like who will you be competing against to what are you trying to achieve versus sort of what you have right now? You hit on it a little bit or maybe you just dig deeper a little bit.

Yes. I've waited a long time to be able to say the word SoFi Pay. We purposely don't talk about our products external or internally based on traditional industry nomenclature. So I hate the word SoFi checking. SoFi say, I just -- I'm like, no, it's a money account. We put money in an account and you should be able to do whatever you want with the money in that account. It's a money account. That's why it's called SoFi Money. But the reality is, is when you're regulated as we are as a national bank, which I'm very proud of, there actually is nomenclature that you have to use, checking account, that's actually what it's called in a savings account, it's what it's called. But the functionality that we provide for that account is really put money in that account, you earn interest, 3.8% API. You earn reward points for money in that account. You can send money via instant self-serve wires, which I would encourage you to try. It's amazing. I have children, they need to send wires for different things. And without teaching them 1 thing about ABA accounts or routing numbers or Swift numbers, they could send a wire in 5 minutes.

And it verifies your identity in real time every time. We can do international remittance now. We can do ACH, we can do debit. We're adding Fed now. We do Zelle uniquely. We do person-to-person payments either via e-mail or phone number. We do bill pay, we do physical checks. So we have -- obviously, bank transfers. We have all these ways to pay. And so SoFi Pay is really a way to bring that set of products and services to the masses around the world as a way to spend globally.

The first version of it is this international remittance, but you'll see it evolve over time to be the place you put money when you want to pay and it can draw from any account, fund from any account, could fund from SoFi checking account, fund from SoFi savings account, fund from a SoFi brokerage account, fund from an ex-bank account. And so we want to help people move money as fast as they would like to move it so they can get on with what they want to achieve at the lowest cost and the safest.

So I guess like there's all these digital wallets out there today. Wouldn't this be competing with them?

100%. It's going to compete with every way you move money. So -- and the reason why we call it SoFi Pay is, you pick where you want the money to come from, you pick the way you wanted to travel or where you want it to go, and we'll pick the lowest cost way fastest way and safest way to get there.

Got it.

And it will be fully integrated in our app. It's not meant to be a stand-alone app. It's meant to be that SoFi Money is a tip of a sword for acquisition for us. SoFi Relay is the tip of the sword. SoFi Plus is, and this will be another way for us to create these unique need -- meet these unique needs and then bring that person into the fold of SoFi.

So I assume like the primary customer acquisition channel will be people that are using our products today. And then after that, like do you roll out a broader marketing strategy? Like how do you go about getting customers?

Yes. I think this product will actually appeal equally to non SoFi members as SoFi members. So when I say tip of the sword, this will be a primary SoFi first product for a lot of people. That maybe didn't understand what SoFi does or even though we spend nearly $1 billion of marketing, our unaided brand awareness is roughly 10%. So that means when you ask 100 people when you need a financial services product named 3 companies, you don't give them any names. 10 out of 100 people would have mentioned SoFi. That means 90 out of 100 people wouldn't put us in their top 3 or even now to put us in our country. So we have a huge opportunity to grow that unaided brand awareness. We think it needs to get to 30% for us to achieve super scale and be on our way to a $1 trillion company. We have to do much more than that, obviously. So this is a product that will help introduce people for the product that are in that 90.

And how do you educate the customers on your products?

Yes. SoFi Pay is a really easy telegraphic thing to communicate as opposed to SoFi Money, which may not be that obvious or SoFi Investment may not be that obvious. So there's a lot of different ways to market the product. Our goal is to have it available through partners as a way to pay in that moment and to use it to switch the way they pay and give them economic incentives, both the merchant and the consumer to do that. But we'll also market it from an acquisition vehicle in other ways. So for SoFi Pay and get X reward points or sign up for SoFi Pay and get X back when you pay. Referrals is another example.

Got it. So you rolled out crypto trading capabilities today with SoFi crypto. What will differentiate your product? And what kind of expectations do you have for it?

Sometimes, it's better to be lucky than good. I never imagine a day that the OCC would say that a national bank, and there's different types of charters, we have the best charter in my mind. We're not a trust bank. We're the first national bank that is offering crypto trading in the United States. And I think we'll be the only 1 for a short period of time, but we'll continue to differentiate. When we launched SoFi Invest back in 2019, we launched with cryptocurrency to build and invest in it. And then in 2023, we were forced to close it down because it was deemed as not permissible by the Fed in a bank holding company. March 7 of this year, the OCC came out with an interpretive letter that said crypto trading or investing, not in those exact words, was permissible by banks. And we ran as fast as we could reintroduce the product but it's even -- it's way better than it was before, and here's why.

We have to invest a significant amount of money in the infrastructure, in the processes, in the people and the technology to ensure that we safeguard people's money. We have a huge responsibility for safety and soundness. It's governed by the OCC. It's governed by the Fed and the bank holding company. And people want to know that what they do is safe. They want to know they can trust their partner with. Well, having a national bank license telegraph significantly the amount of safeguards that are in place for people with cryptocurrency. And so we know there's a growing interest in cryptocurrency or digital assets. What people are worried about is, are they going to get hurt by a company going out of business? Are they going to get scammed. And so having that sale of approval as a bank is super helpful. So all the things that we do to build the rest of our businesses have gone into SoFi crypto. One additional benefit compared to others that we'll compete with is you do not have to put your money in one of these wallets, but you don't know where it sits. You don't know if it's insured, you don't know if you're being hacked.

It actually is going to sit in your SoFi Money account. So if you want to buy Bitcoin, you transfer money into a SoFi Money account, which is checking and savings. You can earn interest with that money sitting there. You could pay any way you want. You don't have to use it on crypto, but the second you put in an order for Bitcoin and it executes we would draw the money from that account. We put into the marketplace to the third parties, and we execute it for you. You don't have to fund the crypto account. So all you're really doing is signing up for the ability to buy, sell or hold crypto and you're getting the benefits of this great checking savings account that gives you 3.8% interest allows you to pay any way you want, not keep your money locked up.

One of the challenges with crypto accounts and wallets is that your money is kind of siloed. You have to remember, I have $5,000 there that I haven't invested yet. I want to move it someplace right now. It's not so easy. If it's sitting in SoFi Money, you can send it all the ways I just mentioned instantly.

Got it. So it sounds like you have a big ambitions about building this platform and ecosystem. And you want to offer a lot of different products. Like how quickly do you think you can get there?

Well, I mean, it's not -- I mean, we built a SoFi crypto buy sell and hold technology -- we were able to buy some technology that was in a company that had gone out of business that was proven and scalable. So we've gotten there pretty quickly from March. We're going to do institutional buy, sell and hold as well. So that's around the corner. I mentioned SoFi USD by January, hopefully sooner, and our team is listening and knows that I'm telling everyone hopefully sooner. I think it will be a very short walk to the rest of the products. We can move very fast. We have a great engineering product and design team. We have a great business unit leader for our crypto ambitions. And we believe first to market matters a lot. It's not the only factor, but getting there first and building trust before someone screws it up is pretty critical.

So do you feel like you might be behind some of the nonbank competitors given I mean, as a regulated entity?

What I'd say is they're already doing billions and billions of dollars of trading. So it would be misleading if I didn't say we're behind. Like we just started trading today for the first time in 2 years. So they have more volume than us. They have more customers than us. They have more years of experience than us. We will absolutely kick their buts because we are a national bank. We'll provide a level of safety and soundness that they'll only desire to do, and they'll never get there without the investment. They won't make the investment unless they have to do it from a regulatory standpoint. And I don't think they have the intestinal fortitude to climb the mountain that we've climbed that are now on the other side of to get that bank license.

And it's not just about technology and KYC and AML and BSA and all these other buzzwords. It's about liquidity. It's about quality of assets. It's about the management team, quality of earnings and vibrancy in tough times. Having to survive the fallout of First Republic, Silicon Valley Bank, Signature Bank as a technology financial services company that's in those similar markets is a true testament to how battle-tested our technology is, our processes and our safeguards. So I think it's a huge advantage and allows us to differentiate in the marketplace. And because we've done that investment, I think we can move faster and safer.

So you described crypto as a super cycle. AI is obviously another one. How are you incorporating AI into your processes at SoFi?

We have over 40 proof of concepts going on at the company currently. If you'd asked me that question, September of 2024, I don't think I could have really made an argument for more than a handful of proof of concepts. Here's the different ways we're using it. We're using it to remediate account takeovers faster. So we automate that process now. We're using AI to basically remediate account takeovers faster. We're now implementing that into restrictions -- account restrictions. We're actually doing the same thing with disputes and resolving disputes faster and quicker. It not only makes a great member experience or improved member experience. It lowers cost, provides better accuracy. I call that defensive. There's one thing that we talk about internally that's not that broadly talked about in the investment community, which is second order effects.

If you launch a product that's the best of checking and savings you want like SoFi Money, first order effects as you grow that to 6 million, 7 million members, $32 billion of deposits, x billion dollars of transactions. But what you also grow on a second order basis is disputes, account takeovers, fraud, all those different issues. And so up until 2024, no company in the sort of ecosystem of Silicon Valley technology investment was focused on solving second order effects. There are now companies that exist just to solve account takeovers, just their resolve disputes just to provide protections on transactions and authorizations. And so that's super exciting. And we'll make the experience better, and we'll move more transactions digitally from physical.

The second area is offensive. And so in our app right now, you can click on Cash Coach. Cash Coach will look at the cash you have in all of your accounts, you have to connect those accounts to us or if you have them all with SoFi. And we got cash in all your accounts and look at all your spending and we'll try to predict how much excess cash you'll have and how to optimize its location. You may have a credit card balance that's only $1,000, but you're paying 25% interest on it, pay down your credit card and basically pay yourself 25% interest by paying it down. You may have $10,000 sitting in a checking account bearing no interest, and you can simply move it to SoFi Money and get 3.8%. You may have a credit card that's maxed out and it's playing 25% interest, and we can refinance you at 12% through an unsecured personal loan. So Cash Coach is giving you options to optimize your cash. There's something that we have a launch that we're working at right now called Coach overall.

And we make fun of these things internally. I see T-shirts with my face on it and hats so they make me smile. And hopefully, they make other people smile when coach helps you get your money right. But Coach is really meant to be like the equivalent of a chat GPT for you at SoFi. So for example, my credit card was run up to $6,000. I just paid it off about 8 days ago and like, I didn't spend $6,000 on anything. I went in and clicked on Coach. I said, please give me a list of every transaction that's happened on my SoFi credit card since I paid the bill off x days ago, 10 seconds, it has every transaction. Please aggregate them by merchant. And all of a sudden, I'm like, holy cow, my family is spending a lot of money at DoorDash and on Uber and a lot of money on Apple and we have 4 Netflix accounts. We're the only family in the country that's actually paying for multiple Netflix accounts.

But you can ask other things, how do I improve my credit score? How do I lower my cost of debt -- can I refinance my mortgage? Am I diversified enough? How may I change my risk profile. And so that's something that will come out later and will be something that's unique to SoFi because we have all this data on you, but we also have all this data on other people, and we can train models based on that data. And so being a one-stop shop, all of a sudden becomes a differentiator on usable data to help you get your money right.

In the end, we want that product to proactively answer for you the 3 questions every day. What must you do in your financial life that day to get your money right? What should you do and what could you do?

So it sounds like you're using AI for better engagement for cross-selling other products. Is there a cost savings component.

There's definitely cost savings on dispute resolution, account takeovers, fraud restrictions, -- but there's also a cost savings, in my mind, by personalizing experiences to help people get to the point they need something quicker and faster, and that's going to help on customer acquisition costs. We are using it for marketing and making our ads have higher click-through rates, better conversion, and that drives customer acquisition costs down as well. So it's really proliferating the entire company in every area and 40 proofs of concepts are not it's not easy to do, but there's that much opportunity and we can do these things on small individual tasks or big offensive opportunities.

Perfect. Maybe you could switch gears and just talk about the health of the consumer because there's just a lot of different data points we're getting around that. And -- it sounds like they're mixed. So I'm just curious sort of what you're seeing inside your portfolio. There's a lot of chatter about student debt and students. So maybe just filter through all of the different demographics as well.

Sure. So first, the level set, we go after a higher than mainstream customers. So $100,000 income or higher. Our average FICO scores for our personal loans and student loans are in the 750 range, so higher income, higher credit. That doesn't mean we don't have a lot of people below that in check and savings account or invest. We do -- but generally, that's the target audience that we go after from a credit standpoint. We've seen very strong performance of credit.

We announced our quarter, I think, 12 days ago. It's only been 12 days. We haven't seen a change in credit, you can imagine. And it's performed really well, and it's improved meaningfully over the last 2 years. Now a lot of that is because we're doing a good job of underwriting. But it's us -- but we're doing -- we're seeing credit performance improve while significantly increasing our originations. Last quarter, we were up to about $9 billion in total originations, $7 billion of unsecured personal loans, at least to do like $3 billion or $4 billion. And so when you grow that type of amount of originations, you could potentially see some decay in credit performance that we haven't. We haven't changed our credit box. And so within the credit box even at higher volume, we've seen consistent performance.

The other 2 things we look at are spending on a point-of-sale standpoint, which is very strong. And then, of course, investing and we're seeing really strong engagement on the investment side. So we're not really seeing any deterioration in the consumer at all. The things I always focus on beyond our own data is what's going on with employment. And I've said before until unemployment gets above 5%, I'd even say slightly higher than that 5.25%, I don't worry about the economy. The things I do worry about that are not related to the consumer because we haven't seen that deterioration is what's going on with liquidity, what's going on with credit more broadly. And so when I hear things about credit deteriorating in other places, I pay attention, and we try to follow a number of leading indicators.

So it's not like we're oblivious to it. We're just not seeing it translate to us nor the upstream effects of whoever is having challenges with credit. And similarly, we're looking at credit card spend. It's obviously great to have partnerships with Visa, Mastercard, may provide a lot of healthy information that we look at. The thing in the past that I think has caught people by surprise in environments like we're in as liquidity issues, but rates are going down and quantitative tightening is ending. And so liquidity really shouldn't be an issue, although you got to look for those canaries in the coal mine, but we haven't heard or seen anything like that yet.

Are student loans that?

Student loans have done -- so for those that don't know, we do 2 types of student loans. One is someone has an existing federal student loan, and it's at a certain rate their credit score is meaningfully better than the average credit score that determines that rate when they graduated, and we help refinance them at a lower rate because their credit is better than what the rate is. They may have a 7% rate, we can refinance them at 5% sort of like a mortgage when mortgage rates go down. So that product has slowly been getting back to a normalized level. I think last quarter, we did just under $1 billion, and it's doing fine. We're not seeing any meaningful change in that business.

The other business that we do in student loans is actually in-school loans that we've slowly been building over the last 8 years. One win behind the back of that business is the government's decision and I don't think it's finalized to stop funding graduate school loans or grad Plus loans, so medical school, law school, business school, and so that will have to come from the private sector. We're happy to provide that financing for people that are qualified. It's actually even more attractive loan than our student loan and financing. Rates are meaningfully higher, almost 30% to 40% higher. Credit performance is actually as good as the student loan refinancing. And so it's almost 30% higher interest charged without a higher loss rate and the funding costs are very similar. So that would be a very nice business to add to SoFi.

I'll give you a fun fact that we mentioned on our earnings call, we expect in the fourth quarter to generate more revenue in our home loans business than revenue we generate in our student loan refinancing business which is a remarkable stat when you think about it that we didn't have a home loans business in 2019, we closed it down and student loan refinancing was the first business the company was founded on. Many people think that's the only product we still have. But it's nothing negative about student loan financing. It just shows you how far we've diversified the business away from capital intensity and a loan book that's unsecured.

And so for that grab plus opportunity, when and if it arises, like how do you intend to go after it?

We have a sales team that's been calling on universities for the last, I think, 6 years, it's led by a great general manager and they're out selling to those universities to get qualified to be a lender for the graduate students.

Got it. So you guys feel like you're in a good position there to...

I think we're in a great position. The best position to be is one of the largest companies in your industry don't even offer the product.

And it's very reliable that banks don't offer a lot of the products that people need. So maybe you could just talk a little bit while we're on the topic, student loan refi and the current addressable market for that and how it fits into the broader SoFi picture?

Yes. I don't want to downplay -- it's an awesome product, the members that we have at SoFi that, that's their first product or a good product or great members. They do many other products for us. It's just not going to scale the way the rest of the business is scaling. Home loans is going to be a much, much bigger business. I mean it already is and the rates are still relatively high. Personal loans, I think, can be -- continue to grow meaningfully. We're attacking the credit card industry. Basically, you don't realize this to you get into the nitty-gritty of it, but here's the deep dark secret about credit cards. It's rooting the financial fabric of our country. It's rooting the financial fabric of our country.

And I wish we could do more to educate Americans that these large banks are offering these premium credit cards with huge rewards. In fact, last night in my TV in my hotel room, it said, sign up for x card 125,000 bonus points. Someone is going to get addicted to those bonus points, and they're going to start spending not thinking about whether they can make the full payment at the end of the month to get to more reward points to get a free airline ticket. The fact that they're actually paying 25% interest on that $1,000 balance that they're not worried about paying off is offsetting any savings they have on the reward points. And so it's almost like a dichotomy in that banks are supposed to help you, but they're giving you these reward points as a drug that you keep chasing, not realizing you're building this balance that you're not going to pay off maybe it's first $500 that you don't pay off, then it's $1,000, then it's $2,000.

You're getting charged 20% to 25% interest. Like who realizes they're paying that amount of interest. And if you go back and look I'm pretty confident there are people in this room that have not paid off their entire balance every month in their lives. And so we're going after that audience and refinancing them from 25% down to 12%. And the great thing about that personal loan that refinanced them off of that 25% is there's no prepayment penalties, you could pay it just as much as you used to pay and pay it off twice as fast. You could actually refinance if rates go down again without a prepayment penalty, without any additional fees. So it's a great product. So home loans and personal loans are going to be meaningfully greater than student loan refinancing, but it's a good acquisition to find great customers.

Great. So let's shift gears. LPB has been a great driver of fee revenue. it's provided diversification to your revenue base. What do you see as the long-term opportunity for that business?

I think it's pretty significant. We -- there's 2 elements to this. One is what's the volume of loans that we can generate through our marketing engine, through our underwriting engine, our credit engine and service? And what's the volume of loans we want to put on our balance sheet. And the answer to that question is that the amount we can generate is meaningfully greater than what we actually want to underwrite and keep on our balance sheet or even want to sell. And so we can help be an origination engine for all of these dollars out there that have to buy assets at insurance companies and asset managers, et cetera. So I think it will continue to be a pretty big opportunity. The area that's new and different that we have less experience in is we turned down 70% of the applicants for unsecured personal loans at SoFi, 70%. We believe that the cohort of near prime applicants that we don't approve will be equally attractive.

We have to build some history on that credit performance, but we think it will be equally as attractive. I think Chris has said it on the call, it's there's $100 billion of declined loans on our platform. We don't think all $100 billion are loans that people would want. But there's probably 25% of it that near-prime lenders would love to have, and we're just not in that business. And so that would be an additional driver of the loan platform business.

And so are your LPV partners still active? Or are you speaking with new potential partners?

Both. We have a bunch of repeat customers that have had made annual commitments. They've renewed those annual commitments. They've upped the amount they're doing. We do have people that do an annual commitment and then intra-quarter, they come in and ask for more. We're in dozens of conversations with new partners. And so we're hiring if you go on our website and look at capital markets. We're hiring a lot of capital markets people. The capital markets people call on the asset managers and help get those deals done, and we have more inbound interest than we have, we call them capital markets, but essentially salespeople. So we're hiring quite meaningfully to help meet the demand of what's coming in.

And so this is a question I have, just like where is all this growth coming from? Is it coming from people refinancing their credit card loans as you sort of described? Or do you think it's people levering up more than they did before? Like how would you...

It's people refinancing their credit cards. So we asked the question. We're very cognizant that someone may refinance their credit card debt down and then run their credit card bill back up and one way to eliminate credit issues is identifying that. Loan stocking is another thing that we have to identify. By the way, AI does -- we don't use AI to predict cash flow because it's a knowable thing. So if you want money from us, give us the things that tell us what your cash flow is, if you don't want money from us, don't answer the questions. But we shouldn't use AI to predict cash flow. We actually -- it's a knowable thing we should underwrite to knowable things. But we can use AI as a way to detect first-party fraud, people loan stacking and other behaviors that increase the credit risk of that person post us refinancing them. But the real addressable market is the credit card trillion dollar-plus market.

Got it. Maybe we could shift gears and talk about Home Lending. You kind of touched on it a little bit. Maybe you talked about the opportunity.

I just think it's the most important economic and emotional decision people will make in their lives. When they buy a home, and we need to be there. It's a hard business to make money on. We're finally at that point that we're making money on it, and it's growing very nicely. When rates come down, I think we're in a great position to refinance our members' mortgages for our members that have mortgages, only 2% of them have them have it through SoFi. So there's a huge opportunity from our existing members in refinancing their home loans as rates come down and purchase will be a big opportunity as well, and we're prepared for that.

And like the origination channel, is this direct?

We -- just everything else we do, we do direct mail, digital, performance marketing, television, pretty much all the channels you'd imagine, radio, et cetera.

Got it. Can we talk about like rate cuts and how it impacts NII for you guys?

So rate increases, rate cuts, we're able to make adjustments in what we're doing to maintain net interest income and interest margin, we're managing to returns. And so -- we have pretty good data and analytics and testing capabilities to maintain the right types of spreads relative to the risk that we're taking. Declining rate environment is a hell of a lot better than a rising rate environment. And so I'd be super excited to see rates come down in another 100. I think another 100 basis points would be gangbusters for student loan refinancing for personal loans. I also think -- the home loan business would benefit meaningfully 200 basis points would be really significant. Our investments will also benefit as rates come down because people will make less on savings.

Cool. Could we talk about the tech platform business, when we'll see the benefit from new contracts coming online?

Yes. We provided a perspective on the tech platform business that our transition strategically to large banks and to installed bases. I mean 2 things happened. One, large consumer businesses that have installed bases that want to be in financial services, that has done incredibly well. We've signed United and launched that T-Mobile shift their portfolio over to us. We announced Southwest Airlines and Wyndham, and those are all launched. So we're making really good traction there. Large financial institutions have been slower to make decisions and quite frankly, with the change in administration, I think all the demand for large financial institutions to upgrade their technology is gone because they're not getting the pressure to do it. But there's a lot of other products and services that we can offer those 2 channels. And we said we'd give an outlook for 2026 once we get there to kind of bring it all together because there's just a lot in flux.

The biggest benefit of our technology platform business doesn't show up in the P&L, and that's the ability to build infrastructure technology for SoFi. The innovation that you see in our app and on our website and driving this growth, it's a direct result of owning that technology platform, not to mention it's just a very good business in terms of the revenue it has and the marginal profitability it has. And so everything we want to do in crypto, we want our technology platform team to build for us and to build for other people. And that technology is not something that's replacing stuff at banks. If you look at regional banks or large banks, they don't have crypto trading technology. They don't have secured lending capabilities. They don't have stablecoins. And so as we build all these technologies for SoFi, in digital assets and in blockchain, we are going to provide those services to others, and that will be a much bigger opportunity then, say, converting a big financial institution is core because they're not replacing something and it's added, which is a much easier decision for them.

Got it. So we have a couple of minutes left. I figured if there's any questions from the audience, I will take them. If anyone has any, otherwise, I got 1 or 2 more. Questions?

Regional banks and other banks they don't have an infrastructure today. What do you think is needed for them to see from, say for example safety.

Yes. So this is a commercial to all of them and to all of you that are investors to tell them, we want them to use SoFi USD. And here's why they so use SoFi USD versus any other stablecoin. We are a national charter bank. We are a bank holding company. We have access to the Fed window Fed bank accounts. And so when someone gives you $1 for a stablecoin, that dollar is supposed to be put into reserves. We are going to put that dollar at our Fed bank account. What does that mean? Others will put it at in T-bills or treasury bonds, et cetera. They all have duration risk. They'll have liquidity risk. And even though we don't like to admit it, they also have credit risk. But when you put the dollar into the Fed bank account, it has 0 credit risk. It has 0 liquidity risk, and it will be bankruptcy remote. And so -- and it doesn't have duration risk.

And so my pitch to everyone is we're going to build the technology in our tech platform business. You could wrap our SoFi USD coin with your own name. We'll do all the minting, all the burning. We'll do all the treasury work. We will give you Fed funds, which we get by putting in the Fed funds without the credit risk, without the duration risk and without the liquidity risk. And we think that's a product that every regional bank, every large GSIP should use, and they shouldn't start other companies that then have to apply for a license and then have to prove they can do this. We're a bank, we're already in third-party technology services. And we're going to ensure that it has phenomenal distribution because we're going to give it to our consumers. We're going to give it to the people who do the 8 billion transactions to our technology platform, the ACH and debit and it will have a lot of distribution through those different points, which is critical for a stablecoin. And we'll do it in all the necessary currencies outside the U.S.

There's one over there. Do you have to convert it to Fiat to do that?

We will have to provide stablecoins in non-U.S. dollars. So it will just be a different smart contract and a different treasury method.

Yes, you launched crypto trading this morning. You're charging 100 basis point flat fee buy and sell, if I'm correct, I think what it says. Right now, across the spectrum, we're seeing the cost ranges from 5 basis points to 4%. So first off, do you think being at 100 basis points, is a relative advantage? Or do you think that's less of a factor of drawing interactions versus, say, a coin base that's charging 200 basis points.

No. I mean we want to make it cheaper, faster and safer for people to do anything with us. So we'll be competitive on price. That's an initial point of view. We'll see how things go. If we can lower it, we'll lower it. We like to say that there's only a few competitive advantages in life. Amazon and Walmart's competitive advantage, they are a low-cost operators. So they provide the best prices, best selection, best service. I believe we have the best unit economics, best lifetime value, so we can provide the best prices, the best services and the best selection. And so we'll compete our butts off to get that to be very competitive.

Just turn the volume up a little bit.

Just long-term, where do you think that is going? Are we going to -- it's going to follow the same long range as equities and...

It's really hard for me to predict where it's going, but I know this will be incredibly competitive and have the economics to be more competitive than other people to have a competitive advantage on price.

We are out of time. Thank you so much, Anthony. Appreciate it.

Thank you.

Good morning or good afternoon. My name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q3 2025 Earnings Conference Call. [Operator Instructions].

With that, you may begin your conference.

Thank you, and good morning. Welcome to SoFi's Third Quarter 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the third quarter of 2025 versus the third quarter of 2024.

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage in strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events.

And now I'd like to turn the call over to Anthony.

Thank you, and good morning, everyone. We had an excellent third quarter. Our one-stop-shop strategy is firing on all cylinders as we continue to deliver exceptional financial performance while also investing in our business to drive durable growth and strong returns over the long term. In fact, our focus on product innovation and brand building has never been stronger. There's more happening at SoFi today than at any other time in my 8 years with the company. We are stepping on the gas to accelerate the investment in our existing businesses and entering new areas like crypto and blockchain, AI, SoFi Pay, providing [ Fiat ] and crypto banking services and so much more. I'll discuss some of these efforts momentarily. But first, let me cover our key results for the quarter.

Starting with the drivers of our durable growth. We added a record 905,000 new members in Q3, increasing total members by 35% year-over-year, a slight acceleration to 12.6 million SoFi members. We also added a record 1.4 million new products, also representing an acceleration of growth to 36% year-over-year and over 18.6 million products. Cross-buy reached its highest level since 2022, with 40% of new products opened by existing SoFi members. Our cross-buy rate has increased in each of the past 4 quarters demonstrating the effectiveness of our one-stop-shop strategy. Our strong member and product growth powered our revenue growth in the third quarter. Adjusted net revenue was a record at $950 million, up 38% year-over-year.

Together, our Financial Services and Technology Platform segments generated revenue of $534 million, which is up 57% year-over-year and now represents 56% of total revenue. This is the first time these segments have generated more than $0.5 billion of quarterly revenue.

In our Lending segment, adjusted net revenue grew 23% year-over-year to $481 million, driven by strong originations in this segment of $6.6 billion, up 23% from the prior year. Combined with a very strong $3.4 billion of originations in the loan platform business, total originations reached a record of $9.9 billion for the third quarter. This is an increase of $1.2 billion from our prior record.

I'm also proud to report that total fee-based revenue across our business was also a quarterly record at $409 million, up 50% from the prior year, driven by strong performance from our loan platform business, origination fees, referral fees, interchange revenue and brokerage fee revenue.

On an annualized basis, we're now generating over $1.6 billion of fee-based revenue, reflecting the deliberate diversification of our business towards more capital-light revenue streams.

In addition to delivering durable growth, we delivered strong returns and profitability. In the third quarter, adjusted EBITDA was a record at $277 million, up nearly 50% year-over-year. Our adjusted EBITDA margin for the quarter was 29%. Our incremental EBITDA margin was 35% as we continue to balance reinvesting in the business to deliver long-term growth and delivering profitability. Net income for the quarter was $139 million at a margin of 14%. Earnings per share were $0.11. Finally, our tangible book value ended the quarter at $7.2 billion, which includes the benefit from a successful opportunistic capital raise during the quarter. Over the past 2 years, we have more than doubled our tangible book value.

Our diversified business is uniquely built to deliver a winning combination of growth and returns. One way to measure this success is the rule of 40 calculation, which is revenue growth plus EBITDA margin. We've beaten the rule of 40 benchmark every quarter since going public. That's 17 straight quarters. Over that time, our average rule of 40 score is 58, making us a top performer among fintechs and technology companies more broadly. And this quarter, we hit 67%. Despite these exceptionally strong results, I know that we are just getting started. The addressable markets across each of our products are massive in the United States, let alone in addition to international markets.

In 2026 and beyond, we will uniquely start to benefit from both of the technology super cycles in AI and blockchain where almost every other industry only benefits from one. And with nearly 13 million members, the unmatched capabilities of our technology and the business scale of $38 billion in annualized revenue and a $45 billion balance sheet, we have a rock solid foundation to build on. Given these dynamics, I've never been more optimistic about our prospects than I am today. This is why we are further accelerating our level of investment to make our existing products even better by providing the best speed, selection and experience to build new products to help our members get their money right and to further strengthen our trusted brand name.

Our investments will power our durable growth and drive stronger returns as we continue to scale. Let me now spend a moment discussing our brand building efforts, which are key to driving new members to SoFi and create a halo effect across our entire offering.

During the third quarter, we launched an exciting new partnership with the NFL's most valuable player, Josh Allen, to promote the most valuable product in financial services, SoFi Plus. Our partnership with Josh is resonating with NFL fans, driving a 35% increase in unaided brand awareness among that target audience. Along with our broader marketing efforts, we drove unaided brand awareness to an all-time high of 9.1% during the quarter, up from last quarter's record of 8.5% and more than 4x higher than it was when we went public.

Turning now to our product innovation. Last quarter, I spoke about how we are an unprecedented point in time with 2 technology super cycles taking place in crypto, blockchain and AI. These super cycles have the power to completely reinvent the future of financial services, and we have moved fast to take advantage of these opportunities. I'm pleased to report that this week, we launched our first payment product that leverages blockchain technology to provide fast, seamless, low cost and safe international payments with the launch of SoFi Pay. SoFi Pay gives members the ability to seamlessly send money in local [indiscernible] abroad by leveraging a layer 2 blockchain network and delivering local fiat into the account of the recipient. It's fully automated in the SoFi app at [indiscernible] faster speeds and lower costs compared to traditional services.

Members will first be able to send money to Mexico with planned stage rollouts in Europe and South America in the near future. The SoFi Pay wallet will over time integrate SoFi USD stable coin that we hope to launch in 2026. We also have plans to offer the SoFi Pay app natively in the international markets for foreign citizens to send money to the U.S. and many other international markets. This is another addition to our unprecedented money movement offering, which allows members to seamlessly send money through person-to-person payments with a phone number, e-mail address as well as Zelle, ACH, self-serve wires and now the ability to send money International with SoFi Pay.

I am also excited to share that this quarter, we'll be launching -- actually relaunching the ability to buy, sell and hold crypto assets, which will give members access to dozens of tokens directly in our SoFi app. Beyond offering the best selection, we will also be providing the best speed and convenience. Members can instantly fund buying cryptocurrencies from their FDIC-insured SoFi Money account, all within the integrated SoFi app.

Members will also have the ability to transfer the crypto assets to SoFi and benefit from our broad range of products that are seamlessly integrated with our SoFi North American bank. And because many of our members may be new to crypto investing, we will support them with the best content to help them understand crypto investing and provide them with a peace of mind that comes from working with a regulated bank.

But this is just the beginning of our ambitious crypto and blockchain product road map that will continue to come to life in 2026. I could not be more excited about the product road map and the multitude of use cases we have for our planned stablecoin, SoFi USD and our ability to differentiate a stable coin, like no other company, given our unique bank license, technology capabilities, portfolio products and technology platform services.

Turning now to the other super cycle AI. We continue to test and implement a number of AI applications across our business. Behind the scenes, AI technology has been key to streamlining our operations to better serve our members. This has included using AI higher-quality engagement and giving our frontline member service team AI-driven tools to more quickly identify and resolve member issues.

AI is also now being used to directly support members. Our AI support chat is helping members resolve questions in an efficient way, driving a noticeable impact on member satisfaction. It's currently integrated with our money and card products and will be rolled out across the entire SoFi platform this quarter. We have also launched the AI-driven Cash Coach to qualifying members. Here's how it works. From the home screen, members see a button saying cash to optimize. By tapping that button, the Cash Coach will look across both their SoFi and external accounts to see where cash utilization is suboptimal and provide them with personalized financial suggestions.

For example, if a member is earning just 2 lousy basis points of interest on deposits with a big bank, it may suggest moving that cash to a SoFi account earning 3.8%. Paying down a big bank credit card balance from a big bank that has a 25% interest rate. Cash Coach is just the beginning. Next year, we will launch a more comprehensive SoFi Coach that incorporates insights across all areas of financial activity, not just cash, which will be able to help members understand how to spend less than they make and invest the rest right, breaking down what they must do, what they should do and what they can do every day across their entire financial lives.

For example, they could ask the SoFi Coach questions like, how has my credit score changed? How can I reduce my cost of debt? How much do I spend on subscriptions? How diversified is my portfolio? How is my investment compared to others of my age. Over time, SoFi Coach will be able to do even more like provide investment and lending options to choose from, helps set up and track goals and simplify processes like canceling subscriptions and optimizing reward points. We are so excited about how this AI-driven tool will help engage members and help them spend less than they make so they can invest the rest. Ultimately, SoFi Coach will supercharge our financial services productivity loop and lead to a deeper relationship that drives a higher lifetime value.

Turning now to product innovation within our segments, starting with the Financial Services segment and the loan platform business. LPB has been a game changer for SoFi, diversifying our lending activity in a capital-light, low-risk way. It's a prime example of how we can leverage our unique tech customer acquisition and operations capabilities to build a differentiated platform at scale. During the third quarter, we originated $3.4 billion of loans through our loan platform business, an increase of over $900 million from just last quarter. On an annualized basis, after just 1 year, this business is now running at a pace of over $13 billion of originations and $660 million of high-margin, high-return fee-based revenue.

Importantly, we continue to increase the loan platform business near-term volume that is outside of our traditional credit box effectively monetizing more of the roughly $100 billion of loan applications that we were not able to meet each year. Looking ahead, the opportunity for this business remain significant and demand from our partners continues to increase. Recently, as some concerns have emerged within the private credit markets, we've actually seen our LPB partners lean in to do more with SoFi, not less, reflecting a flight to quality and durability through interest rate and economic cycles. We have worked hard over the last 8 years to develop unique skills in underwriting, marketing, pricing, insights and data. And as such, we are benefiting from this flight to quality.

Turning to invest. Earlier this month, we launched Level 1 options, which has been consistently a requested feature by our members. Options are another way we are providing access to our members that they otherwise wouldn't have so they can build portfolios that align with their financial goals. As part of this rollout, we also provide educational resources explaining how options work, the risks involved and how to integrate them responsibly into a diversified investment strategy. Beyond options, we're also expanding our unmatched selection in the third quarter by providing access to IPOs like [ StubHub, Carna and Figma ] and by launching the SoFi AgenticAI ETF.

During the quarter, we also improved our features to make our invest products more intuitive and engaging. For example, we launched 24/7 instant transfers between invest and money, and we launched embedded rollovers and an enhanced rollover tracker given members full visibility and control over their 401(k) rollover process. In the fourth quarter, we'll be making a number of additional enhancements. We are very excited about the progress made to build an investment platform that provides our members with way more options than what they would typically have access to.

Turning now to SoFi Money, which has been a core part of our financial services productivity loop. In 3 years after acquiring our banking license, we have 6.3 million products and $33 billion of deposits. Our attractive API is a compelling reason for members to make us their primary financial institution, but members also come to us for our best-in-class products and continued innovation. For example, we will soon be launching the SoFi smart card, a new card that brings together the best features to help our members spend, save and pay better. It will be part of our SoFi Plus offering, and it will serve as a platform for continuous innovation.

The card will offer 5% back on food, our highest interest rate on deposits, credit builder capabilities, borrowing capabilities and so much more. This is yet another way in which we are pushing the limits on what is possible with banking products.

Turning now to our Lending segment. Lending is the most tenured core capability of SoFi and is how our business got its start. Since that time, we have made significant progress strengthening both our member acquisition and our underwriting capabilities. For loans that we hold on our balance sheet, we focus exclusively on high prime and super prime borrowers with strong cash flow and FICO scores. In fact, the average FICO score of our personal loan borrower is 745, and our student loan borrower is 773, but we don't stop at credit scores. We use [indiscernible] underwriting techniques to assess each individual borrowers' cash flow and their ability to repay the loan. We are able to do this effectively at scale because of our innovative originations platform that leverages advanced technology and digitally-enabled processes. The result is excellent credit performance that continues today.

In fact, during the third quarter, we saw our net charge-off rates improved even as there has been moderate signs of stress showing up for some other companies. For both personal loans and student loans, net charge-offs were down more than 20 basis points in the third quarter.

We also have a strong track record of building great lending products that help our members create a better future. For example, our innovative personal loan product allows members to refinance observably expensive credit card debt held at other institutions to save their hard-earned money. No longer will overachievers be suckered into chasing rewards only to realize they are paying over 20% interest on unpaid principal balances while earning essentially no interest on that same bank's deposit account.

We've recently made this product even more attractive to our members by rolling out an interest-only period to raise awareness of the personal loan product and help ease the transition from making credit card payments to making personal loan payments. Similarly, in student lending, we have completely changed the game, becoming the preeminent company for refinancing student debt at more affordable rates. Our student loan refinance product can reduce some member's interest rate by a couple of hundred basis points, which will have a meaningful impact with a $40,000 loan balance. In fact, we estimate that we will save our members over $100 million in interest expense just on the student loans we refinanced during the third quarter. This is why we've made our product even more attractive by rolling out a feature that allows for the gradual step-up in payments to help members find their footing. We look forward to helping even more members refinance their student loans as interest rates come down in the future.

Turning now to Home Lending, where we are seeing very strong results. In the midst of the higher rate environment, we built and launched a home equity loan product to help members take advantage of their equity that has been built up in their homes particularly over the last few years. In the third quarter, just 1 year after launch, we originated over $350 million of home equity loans, helping us set a record of $945 million of originations for all of home lending. In fact, Q4 will likely be the first quarter where we generate more revenue from home loans than from student loan refinance, which was our first product and the largest product prior to COVID.

At the same time, we are preparing for lower rates to further accelerate our home loans business in 2026. We've not only strengthened our operations, but we have also enhanced our product to make them very attractive to estimated 3 million members who currently have mortgages elsewhere and to those who may be first-time homebuyers. We believe our offering will drive strong growth as the market opens up.

Turning to our Tech Platform segment. This business has been instrumental in our ability to innovate across the SoFi platform, and it's now allowing a broader range of companies to bring innovative programs that drive greater loyalty and engagement to their customers. In fact, today, we are incredibly excited to announce our newest partnership with one of the largest airlines in North America, Southwest Airlines to power their Rapid Rewards debit card, which combines the convenience of debit payments while earning points on everyday purchases. We have also signed on 2 major consumer brands, our largest set, which will be announced in due course.

These partnerships are a reflection of the strong and growing demand for our market-leading technology to power embedded financial products at scale for some of the most well-known brands around the world. As you can see, it was an eventful third quarter at SoFi. And we are as energized as ever as we wrap up the year and head into 2026.

With that, let me now turn the call over to Chris.

Thank you, Anthony. We've delivered another strong quarter as we continue to drive durable growth and strong returns on the way to delivering record revenue in our eighth consecutive profitable quarter. For the quarter, revenue grew 38% year-over-year to a record $950 million. Adjusted EBITDA was also a record at $277 million and a margin of 29%. Net income was $139 million at a margin of 14% and earnings per share was $0.11. Similar to the last 2 quarters, this included a small benefit related to a lower tax rate.

An important driver of our growth was the increased contribution from capital-light non-lending as well as fee-based revenue sources. Our nonlending businesses generated $534 million of revenue, up 57% year-over-year and we also generated record fee-based revenue across all segments of $409 million, up 50% year-over-year.

Turning now to our segment performance. In terms of financial services, for the third quarter, net revenue was $420 million, up 76% year-over-year. Contribution profit was $226 million, up nearly 2.3x from last year. Contribution margin was 54%, up from 42% last year. Net interest income for the segment was $204 million, up 32% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew nearly 2.6x to $216 million for the quarter, which equates to over $860 million in high-quality fee-based income on an annualized basis.

Importantly, improved monetization continues its strong contribution to revenue growth. Financial services revenue per product surpassed $100 for the first time, reaching a record $104 in the third quarter. That's up over 28% year-over-year, and we see continued upside as newer products mature. In Q3, our loan platform business generated $168 million in adjusted net revenue, up 29% from just last quarter. Of this, $165 million was driven by the $3.4 billion of personal loans originated on behalf of third parties as well as referrals. Additionally, LPB generated $3 million from servicing cash flows, which is recorded in our lending segment. The growth opportunity for this business continues to be very strong. Beyond our LPB revenue, we continue to see healthy growth in interchange, up 55% year-over-year, driven by close to $20 billion in total annualized spend in the quarter across money and credit card.

Shifting to our tech platform. For the third quarter, we delivered net revenue of $115 million, up 12% year-over-year. Contribution profit was $32 million at a contribution margin of 28%. Revenue growth was driven by continued monetization of existing clients, along with new deals signed in new client segments.

Turning now to our Lending segment. For the third quarter, adjusted net revenue was $481 million, up 23% from the same period last year. Contribution profit was $262 million with a 54% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 35% year-over-year to $428 million. During the quarter, we had record total loan originations of $9.9 billion up 57% year-over-year. Personal loan originations were a record at $7.5 billion, of which $3.4 billion was originated on behalf of third parties through LPB. In total, personal loan originations were up 53% year-over-year. Student loan originations were $1.5 billion, up 58% from the same period last year. And home loan originations were a record $945 million, a year-over-year increase of nearly 2x.

Capital markets activity was very strong in the third quarter. We sold and transferred through our loan platform business, a record $4.6 billion of personal, home and student loans. In terms of personal loans, we closed $175 million of sales in the whole loan form at a blended execution of 106.4%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise if we held on to the loans.

Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge-off, both from our improved recovery capabilities and by maintaining servicing.

In terms of home loan sales, we closed $585 million at a blended execution of 102.9%. And in terms of student loan sales, we closed $377 million at a blended execution of 105.9%. In addition to our loan sales, we executed a $466 million securitization of loans originated through our loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at industry-leading cost of funds levels with a weighted average spread of 98 basis points.

Turning to credit performance. The health of our consumer remains strong and our credit continues to improve. Our personal loan borrowers have a weighted average income of $157,000 and a weighted average FICO score of 745 while our student loan borrowers also have a weighted average income of $157,000 with a weighted average FICO score of 773.

For personal loans, the annualized charge-off rate declined by more than 20 basis points to 2.6% from 2.83% in the prior quarter. Had we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.2% versus 4.5% last quarter. The on-balance sheet 90-day delinquency rate was 43 basis points, consistent with the prior quarter. For student loans, the annualized charge-off rate also declined more than 20 basis points to 69 basis points from 94 basis points in the prior quarter. The on-balance sheet 90-day delinquency rate was 14 basis points, consistent with the prior quarter.

The data continues to support our 7% to 8% net cumulative loss assumption for personal loans in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originated from Q4 2022 to Q4 2024 have net cumulative losses of 4.4% with 39% unpaid principal balance remaining. This is well below the 6.08% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve, widened by a more favorable 29 basis points after a widening improvement of 19 basis points in Q2. Additionally, looking at our Q1 2020 through Q2 2025 originations, [ 60% ] principal has already been paid down with 6.7% in net cumulative losses. Therefore, for life-of-loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This would be well above past levels, further underscoring our confidence in achieving loss rates below our 8% tolerance.

Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the third quarter, our personal loans were marked at 105.7%, in line with the prior quarter. This was primarily a function of a lower benchmark rate, which was mostly offset by higher prepayments and a modest change to the weighted average coupon as well as a modest change to the annual default rate, which was driven by loan vintage seasoning, not changes to the individual loan loss assumptions.

At the end of the third quarter, our student loans were also marked at 105.7%, down 9 basis points from the prior quarter. This was a function of a modest decrease in the weighted average coupon, partially offset by a lower benchmark rate.

Turning to our balance sheet. In July, we raised $1.7 billion of new capital in the form of common equity. This opportunistic raise significantly increased our capital levels and allowed us to reduce our higher cost debt by $1.2 billion, making our balance sheet even stronger and giving us great flexibility to pursue growth opportunities. In the third quarter, including this new capital, total assets grew by $4.2 billion. This was driven by $2.7 billion of loan growth and approximately $1.2 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $3.7 billion.

On the liability side, total deposits grew by $3.4 billion to $32.9 billion primarily driven by growth in member deposits. Net interest margin was 5.84% for the quarter, down 2 basis points sequentially. This included a 7 basis point decrease in average yields as we saw a modest mix shift from personal loans to home and student loans and a 3 basis point increase in cost of funds, which was mostly offset by strong growth in interest-earning assets. We continue to expect healthy net interest margins above 5% for the foreseeable future.

In terms of our regulatory capital ratios, we remain very well capitalized. Our total capital ratio of 20.2% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $1.9 billion sequentially to $7.2 billion, including the benefit from the new capital raised. Intangible book value per share at quarter end is $5.97, up from $4.08 a year ago, a 46% increase.

Let me now finish by providing our revised outlook for 2025. As we head into fourth quarter, for the full year 2025, we now expect to add approximately 3.5 million members, which represents approximately 34% year-over-year growth, above our prior guidance of 3 million members and 30% growth. We now expect adjusted net revenue of approximately $3.54 billion, above our prior guidance of $3.375 billion. This equates to year-over-year growth of approximately 36%, an increase from our prior guide of 30%. We now expect an adjusted EBITDA of approximately $1.035 billion, above our prior guidance of $960 million. This represents a 29% margin.

We now expect adjusted net income of approximately $455 million, above our prior guidance of $370 million. And adjusted EPS of approximately $0.37 above our prior guidance of $0.31. This equates to fourth quarter adjusted EPS of approximately $0.12, which assumes a Q4 tax rate of approximately 10%. We now expect growth in tangible book value of approximately $2.5 billion for the year, above our prior guidance of around $640 million.

We've had a great year thus far and look forward to a strong finish. Let's now begin the Q&A.

[Operator Instructions] Our first question comes from the line of Dan Dolev at Mizuho.

Chris, Anthony, amazing job. Very, very proud of you guys. Wanted to know, I mean, the question we're getting from investors for the past like month or so is consumer credit. I mean you guys have done incredibly well looking at NCOs coming down. But can you give us an overview of what's going on, maybe there's a FICO sort of differentiated thing here that helps sulfide just maybe an overall view of like how the health of the consumer credit across the different FICO trenches would be great. And congrats again.

Sure. Thank you, Dan. The first message is our credit is performing very well. We have very strong performance by our members across each of the products, not just the performance of credit, but the spending that we see in SoFi Money. The engagement that we see in SoFi Invest and general behavior overall. We've been in the lending business for a pretty long period of time. When I joined in 2018, one of our key priorities is focused on quality of our loans over quantity and to make sure that those loans are durable through an economic cycle and through an interest rate cycle and any liquidity dislocations.

And so we're constantly making changes to what marketing channels we're in. The trade-up between pricing and credit approvals, the unit economics of a loan, we focus on having a 40% to 50% variable profit margin on our loans and so sometimes we can drive more volume. Sometimes we can drive higher margin. But it's a constant data science opportunity for us to perfect our loans. And the strength of the [indiscernible] speaks for itself, it's in the numbers. You can see our net charge-offs declined i.e., improved versus last quarter.

If you go back over the last couple of years, you'll see that we made a lot of credit changes to ensure that performance stayed high quality when we went through a 500 basis point interest increase and now we're seeing rates come down. So we're seeing really strong trends in the channels and great demand from high-quality borrowers. And we feel really confident if anything changes, we'll make the adjustments accordingly.

To remind everyone, we focus on a life loan loss between 7% and 8%, and all indications are that we're below that, as Chris has mentioned in the past.

Yes. And the only other thing I would add to Anthony's point is that we're also seeing really good demand from capital markets partners, which we view as a flight to quality. So all in all, we remain vigilant as always, but our balance sheet is strong with high-quality loans, excess capital and solid liquidity, and our partners are active and looking to expand their relationships with us, and that's a true testament to the credit that we're underwriting.

The next question comes from John Hecht from Jefferies.

Congratulations on a good quarter. I guess my question is predominantly around the rate environment -- decreasing rates if you think about the forward curve. I'm wondering if you guys could talk about how the lower rate environment will affect the volume mix on the lending side? And particularly at what point do you think that could be a pretty big spike in student loan refinance activity?

And then second, unrelated is maybe talk about what you guys expect in terms of deposit beta and what that means for NIM over the next few quarters?

Thank you, John. We've said this in the past, our business is diverse, not because we woke up and said we should make our business diverse because of our strategy of being a one-stop shop. We've scaled our businesses across the portfolio of products that we offer being a one-stop-shop to a level that in environments, we can drive different businesses based on the characteristics of that environment. When rates were high, we took a specific strategy. As rates are coming down, we're taking alternative strategy and it's working. If rates stay exactly where they are, I think our business continues to operate incredibly well. I couldn't be more optimistic about our near-term trends and what we'll do in 2026 relative to our prior long-term guidance.

So I do worry about things like credit. I do worry about things like heightened inflation. We look at asset flows, et cetera, et cetera. So it's not like we're not worried about things. We just feel really good about the positive things versus the things that could cause a problem.

As rates come down, I think our business only gets better. If we stay with unemployment below 5% to 5.5% and inflation is at 3%, I think we're in a really great environment. I'm not a student of believing inflation should be 2%. I think 3% is perfectly fine. I think we have global stability that will also be important. I think about things that could disrupt us as, one, economic, i.e., unemployment; two, financial liquidity. Rates are coming down, not going up. And then 3 is the macroeconomic factors that are at our control and exogeous events. As rates go down, our student loan business will benefit meaningfully. Rates have been very high for the last 3 years. Federal student rates are high, and we can give them a significant savings on a $70,000 balance. So we'll benefit from lower rates in student loan refinancing for sure.

The home equity market, the home loan market, the real estate market more broadly, will benefit from lower rates, both in refinancing as well as purchase. As it relates to refinancing, less than 5% of our members that have mortgages have been with us. So if you take everyone that's on our platform that's using SoFi and you look at the number of those people that have home loans or mortgages, only 5% of those with mortgages are with us. It's a huge opportunity for us to market a lower cost of a mortgage to them. And we have the technology to know where the rates are to deliver personalized messages to them, and we've built the back end and operational capabilities to deliver reliable mortgage in a specific period of time. So we feel really great about that.

As it relates to SoFi Money, I've said this in the past, I'll say it again, it's starting to show itself now. In a high-rate environment, nonbanks can compete with us on interest rate. Many choose not to because they're trying to make more money with NIM, but it's easy when rates are high when Fed funds are high. When Fed funds is low, it's going to be really hard for nonbank and nonlending companies to compete with us. Our competitive advantage will come through and show the world that we have the highest lifetime value in a broad based portfolio of products allows us to give a superior yield when others are struggling to provide that yield because of the fact that we have both lending and we're insured deposit institution, and we have a broad-based membership that we can market to efficiently for cross-buy. In the most recent quarter, 40% of our product growth came from cross-buy, that's with our members growing 35%. Chris, would you add anything?

Yes. The only other thing I would add, John, to your comments on deposit betas and NIM over the next few quarters. There's been really successful in maintaining healthy NIM margins. This last quarter, we were at 5.84%. Maintaining these strong margins has been a function of the loan pricing betas that we have as well as obviously, our cost of funds. What we've demonstrated on the loan pricing beta front is in rising rate environments, we've been able to outpace rates and maintain really strong pricing. In down rate environments, we've been able to maintain solid pricing above where rates have gone. And then from an asset yield perspective, we've been able to maintain strong asset yields and reduce our overall cost of deposits, all while maintaining healthy growth in member deposits last quarter. Historically, we've been at about a 65% to 70% deposit beta. We would expect that to continue going forward.

The next question comes from Kyle Joseph from Stephens.

I just wanted to get your thoughts on the competitive environment. Obviously, we saw your guidance for membership growth go up, which is obviously a positive. Is that a function of just kind of internal marketing efforts and brand awareness? Or can we step back and think about things potentially getting less competitive out there? I think you talked about capital providers and the flight to quality you're seeing. So I just want to get your commentary there?

It's a function of many factors, first, unaided brand awareness. Our goal is to drive unaided brand awareness higher. It provides productivity across our digital marketing capabilities and performance marketing. And so we talked about the 9.1% unaided burn awareness that we achieved in Q3 that we expect to continue into Q4. We have a number of new product launches that will also contribute that will not just contribute directly because they're new products, but they'll also contribute indirectly after raising awareness that we're a one-stop shop.

Specifically, our goal is to launch buy sell and hold crypto by the end of the year. We'll continue to roll out SoFi Pay to other international markets. And so the second bucket is new products. And then the third, we have a pretty good understanding of what channels to market what product is in and have a good read on customer acquisition costs by channel. And so we're just ensuring that we continue to add more marketing at an efficient rate, focused on profitability and growth, and it's our confidence in being able to do that in a bigger way in Q4 than we did in Q3 in addition to the new product launches that we'll have, and the benefit from a brand awareness. So that's driving our confidence.

I will tell you our goal is to continue to move along a linear curve to make sure that we're not falling off that efficient frontier of marketing and brand awareness and spending. But there's a lot of upside from spending at efficient rates if we chose to grow even faster.

The next question comes from Andrew Jeffrey of William Blair.

Anthony, as you see faster growth in the non personal loans business, which I think is really encouraging from a diversification standpoint, does that change your thought on how you fund that growth on balance sheet deposit driven versus the loan platform business? And are there opportunities in the loan platform business for nonpersonal loans? Just trying to think about what the funding mix looks like as the origination mix shifts a little bit?

Sure. There are definitely opportunities in the loan platform business from nonpersonal loans, and Chris and the capital markets team is working on that. Funding off of deposits is definitely an element that drives our durability and our confidence in lending. The dependency on deposits will likely reduce over time and our cost of funds will also likely come down over time based on a bunch of decisions that we make as it relates to how to spend our capital.

I do think you'll continue to see us drive revenue streams that are not connected to capital. 56% of our revenue is now coming from our tech platform and financial services business, and that's up pretty meaningfully over time. And you can see the benefit to our profitability line and our ROE and our tangible book value growth related to that. So there's a number of initiatives that we have, that we haven't talked about publicly that will also help as we leverage blockchain technologies in the lending space specifically that will help drive strong diversification of funding for our balance sheet.

Next question comes from Kyle Peterson at Needham & Company.

Nice results. I wanted to drill down in the loan platform business, in particular. I know there's at least another fintech lender that kind of recently said that at least some of the loan -- buyers and such on -- from institutional investors, we're kind of consolidating purchases to kind of fewer platforms. I guess was the strength this quarter was it broad-based in terms of you guys adding participants on the platform, on the funding side? Or was it fairly concentrated with existing partners? Just any color there? And if you guys are seeing anything similar would be really helpful?

Yes. Thanks, Kyle. So we saw growth across both new partners as well as existing partners who have partnerships with us. What we actually saw is a bit of a flight to quality where existing partners -- a number of existing partners came to us and asked to upsize their commitments, not only in Q3 but Q4. So we expect continued momentum to occur in the last quarter of the year. And then we also saw some growth in new partners as well as expanded credit. So net-net, it was growth across the board.

The next question comes from Reggie Smith at JPMorgan.

Great quarter. I guess I had a follow-up on the loan platform business as well. Is there a way to kind of frame the number of buyers on the platform and kind of what your mixed full quarter capacity looks like? And then also talk about the process, I think you mentioned [indiscernible] about how companies upsize their commitment?

At the end, Reggie, but I think you asked about the process for how companies upsize their commitments. In terms of your first question about the number of buyers on the platform and what the next quarter's capacity looks like, we aren't going to disclose the number of buyers that we have. We have disclosed a few publicly with Fortress and Blue Owl, but we have a number of partners on the platform. What capacity looks like next quarter, we did $3.4 billion of originations on behalf of others this past quarter in Q3. We expect that to continue to grow heading into Q4.

In terms of how companies upsize their commitments they typically come to us intra-quarter if they have excess capacity or demand for incremental loans. And if we're able to fulfill by the end of the quarter, we'll do so.

The behavior we're seeing of consolidation down to higher quality that you mentioned, we think we're benefiting from that based on the activity we've seen from those partners.

The next question comes from Peter Christiansen from Citigroup.

Nice trends here for sure. Anthony, I was just wondering, can you remind us where we are in your investment cycle, perhaps not just like the marketing or performance marketing, branding, those sorts of things, but maybe more so on capabilities. I know you're going to be onboarding some new clients on the tech platform pretty soon and now building out crypto, whether that's partnered or native. Just if you could frame for us where we are in the investment cycle.

Yes. I would like to invest a lot more than we're investing, but we're trying to balance both growth and being responsible for delivering profitability and good returns. We don't want to go after penny less growth. And so the gating factor that we've put on and talked about publicly is to have at least a 30% incremental EBITDA margin. And I say the word at least because if the business does well relative to expectations, it's hard to spend back in a quarter. We may accelerate some hiring, but that really doesn't impact the near-term quarter. It impacts the next quarter. And we've hired a lot more people in 2025 than we set out at the beginning of the year because we've been driving both strong top line growth and really strong incremental profitability.

I would love to spend every dollar we cut down to that 30% incremental EBITDA margin. It's not always possible to do that. That 30% incremental EBITDA margin will be the standard until we see our growth drop below, call it, 15%. I think as long as we're growing above that, we should invest in the business to make the top line as large as it can be. And then over time, we can slow down our spending and drive margin expansion, but we're definitely not in the mode of driving margin expansion unless we outperform compared to the 30% incremental EBITDA margin. The areas we're investing is we'll continue to iterate our existing products. We're focused every day on 5 things of our existing products, fast, selection, content and convenience and then make them better together.

There are some products that are new that will increase the investment in such as SoFi Plus. We're really pleased with the progress we've made there. There will be additional things that we add into SoFi Plus as it relates to value, one of which is the smart card. We think it's the best of any card. It will have high rewards, 5% on food. They'll also have high interest or highest API. In addition to that, you can also build your credit score and you'll be able to use that relationship with us to potentially borrow both ahead of time and post transactions. And that will be an evolving feature set after we launched that will continue based on how we learn our members want to use the product, but focusing on the smart things that they want, and making it half the best of everything.

We talked about Cash Coach on the call. There's a number of AI initiatives to help people spend less than they make and invest the rest. It is a unique formula that we can deliver on in addition to the investing piece. One of the things that's interesting about our buy, sell and hold for crypto is that the way we'll launch this product is going to be pretty novel. Someone will open up the SoFi Money account. If they don't have a SoFi Money account, they'll fund that SoFi Money account and then all their purchases are drawn from that SoFi Money account. What's the benefit of that? Well, that SoFi Money account has FDIC insurance. and we've added additional insurance for our members if they opt in, up to $2 million, not just $250,000.

So Someone can have an FDIC insured bank account where they keep their funds and seamlessly be able to buy cryptocurrency and the money moves from 1 entity to the next seamlessly behind the scenes. A very efficient process that I think will be very differentiated, and we'll be the first bank to offer buy, sell and hold crypto. We've mentioned stable coin on the call. I can just tell you, every day, there's a new opportunity for us to leverage the SoFi USD stable coin that we'll plan to launch. And we have some unique advantages that we're already a Tier 1 bank.

What do I mean by that? Because we are a Tier 1 insurer deposit institution, we could take the reserves of our stable point and put them at the Fed and earned Fed funds. What does that mean? Zero credit risk, zero liquidity risk. There's not a stable coin provider in the United States that can make that claim. Very differentiated, super excited about it, and there's a number of other applications there. You can imagine that Fed funds that we earn on those reserves, they can be given back to the consumer. They can be given to businesses to accept our payment at point of sale, and it can provide a lot of different benefits to other ecosystem partners because them to want to partner with us as opposed to a non-Tier 1 nationally licensed brand.

So we're going to invest as much as we can to that 30% incremental EBITDA margin and sustain high levels of growth until it slows down and then will drive profitability.

The next question comes from Moshe Orenbuch from TD Securities.

Maybe a little bit about the competitive dynamic in the personal loan business. I saw one of your close competitors got acquired by a large bank. Do you think -- first, do you think that makes the business kind of a better competitive dynamic if that happens? Or maybe just talk about that a little bit? And if you could also just address. You talked about becoming more capital light. How much of that do you think comes out of the personal loan business in terms of doing less for your balance sheet or proportionately more in the loan platform side?

In terms of competition for PL, I'd say it's generally been a competitive environment. But from entities that are not large national banks are the top 10 banks in our country, they just don't offer this product. I think there's a lot of reasons for why they don't offer this product. It's a gap in their portfolio that allows us to really gain, I think, more members at efficient costs. I think the reason why they probably don't offer their product is because they [indiscernible] people so about on credit cards, and it's such a great ROE product that they don't want to cannibalize the credit card.

The way you make money in the credit card business is to revolving balances. Well, credit cards average in the United States over 20% interest on those revolving balances. If you actually had a prime member or super prime member, and told them they're going to charge 20%. They wouldn't sign up for that any day. But if you put that behind a fancy name of the card and all these benefits and high rewards, no one sees the high interest rate that they get. And they chase those reward points. I'm thinking they're getting some benefits from it. Then they end up with a balance that they can't pay off after 1 month. And then they said they'll do it after 2 months. And before you know, it's been 6 months. They now have a $10,000, $15,000 balance, they're paying 20% to 30% interest on it.

Would you refinance them with a personal loan at 12%? Probably not. So I think this is a product that we're going to own from a leadership standpoint. We'll continue to fight away at these huge balances where people are paying over 20% interest when they can come to us and pay 12%, again, prime and super prime customers.

And then what I would say on your point about being capital light and how much of it comes out of the PL business, what I would say is total personal loan originations were up 53% this past quarter -- year-over-year and 7% sequentially to a record of $7.5 billion. So we don't see much in terms of overall cannibalization given our current market share, which is about 15% of total unsecured loans. Out there within our credit box and that doesn't even scratch the surface of all of the outstanding credit card debt, as Anthony mentioned.

So, we're seeing really good momentum on the LTV side, and we're adding loans to the balance sheet at a pace that we are comfortable and happy with. This past quarter, we added about $2.7 billion of personal loans -- to the balance sheet, which is a good healthy [indiscernible] for us.

Our final question today comes from Devin Ryan, Citizens Financial Group.

I want to come back to the student loan opportunity. Obviously, you talked about kind of the outlook moving into a better place there with the rate environment. Can you talk a little bit about how you see some of the actions of this administration driving kind of a better environment, whether it's the big beautiful bill. And then a few weeks ago, there was obviously headlines around the government exploring, selling some of its $1.7 trillion in balances, which would seem pretty interesting for you guys. So love to get some thoughts on that. I'm not sure if you can speak to it directly, but just more broadly, if you can, just what you think that means for the market and kind of the direction of travel?

Yes. I think it's all very positive for SoFi. I think we benefit from all of those decisions as they get made. We look at assets from time to time that are for sale. If the government decides to sell their student loan portfolio, we'll absolutely dig into it. It'd be a great customer acquisition tool not to mention the fact that we can make a significant profit on that portfolio of assets.

As it relates to potentially reducing the amount, someone can borrow in order to go to college or grad school or business school or medical school or a law school, we'll be there to fill the hole. We want to help our members achieve the financial independence so they can live their ambitions. Paying for college, paying for a home is absolutely a critical decision they make. And we have to be there for all those major decisions they make. So we'll absolutely be there if they need a solution that the federal government is not providing. And that will also be a great business. Our in-school business for loans is a very profitable business that's very attractive and doing more of that would be even better than the student loan refinancing.

At higher rates, it's backed by credit of another person and people really do want to pay back the benefit that they receive from getting a college education. So that would also be an opportunity.

I would say more broadly, as we think about our educational system and think about the changing needs from a technology standpoint, AI, there may be new types of loans that we could get into from a [indiscernible] perspective that's outside of a 4-year type of experience that's more suited for the professional environment new graduates will enter into. So I think we'll actually see some innovation because of what the government is doing and because of the impact technology is having on hiring undergrounds.

As you can see, it was an eventful quarter at SoFi and we are energized as we wrap up 2025 and headed 2026, today's results reflect the durability of the foundation our team has been tirelessly building over the last 8 years. It was not clear before today. I think it's safe to say that our results demonstrate that we truly have become a one-stop shop for your financial needs all in 1 digital platform. Many others have talked about achieving this strategy, but to date, no one else has come close to the breadth of products or complexity of operations that we have, not to mention the revenue scale we have, the profitability we're generating and the durability and broad diversification of revenue across our portfolio of products.

This success positions us the best to benefit from the 2 tech super cycle unfolding and the continued strong sector transition globally from traditional finance companies to fintech companies.

Suffice it to say, I'm more confident than ever that our strategy and our execution will continue to deliver our sustainable competitive advantage with the highest lifetime value and we'll accelerate our investment to ensure we maintain our lead. Along the way, we will remain guided by the SoFi Way. We are all operating as founders, problem solvers and partners to bring the best products and services to our members so we can have a meaningful impact on their lives, and lead them to a better, more secure financial feature. By acting in the best interest of our members, we will build deeper relationships across our one-stop shop platform that will lead to durable growth and strong returns for our shareholders for decades to come.

Thank you for joining our call, and we look forward to talking to you next quarter.

This concludes today's conference call. You may now disconnect.