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SoFi posted a solid quarter of growth on Wednesday, even as its banking-as-a-service platform struggles.
Adjusted net revenue for SoFi climbed 41% to a record $1.1 billion, exceeding analyst estimates for $1.05 billion, according to data compiled by Bloomberg.
“We had an excellent first quarter,” CEO Anthony Noto said in a statement, citing how the company added 1.1 million new members during the period, bringing its total user base up 35% to 14.7 million.
On a non-adjusted basis, profits for the San Francisco, Calif.-based fintech bank reached $167 million, or $0.12 per share, in line with what the Street expected. Adjusted EBITDA also beat analyst expectations, rising 62% year over year to $340 million.
SoFi’s stock fell 6% in premarket trading on Wednesday.
After reaching lofty highs last fall, SoFi’s stock has since faced some pressure. Shares have fallen 30% year to date as of Tuesday’s close.
Last year, the firm lost Chime (CHYM), a key client on its technology platform. And in March, activist short seller Muddy Waters disclosed a short position in SoFi’s stock, claiming the company used aggressive accounting and off-balance sheet structures to hide credit risk.
SoFi denied the allegations, expressing its intent to “explore potential legal action” and saying the short seller’s findings are “designed to deceive investors.”
Investors also worry that the fintech bank carries a high degree of consumer credit risk against a potential downturn in the labor market.
Read more: SoFi review (2026): Online banking with (almost) zero fees
Like other financial services apps, SoFi is actively expanding its product and service offerings as the Trump administration is pushing to deregulate the financial services and banking industry. The company’s strategy caters to young, affluent professionals.
SoFi reported a net charge-off ratio of 2.07% in the first quarter, compared to 2.37% in the year-ago period. This percentage of loans the company has written off as uncollectible fell across all loan categories except student loans, which rose 18 basis points over the same period.
Proceeds from the company’s core lending offerings rose 55% from the year-ago quarter to $642 million. Its financial services segment, which includes SoFi’s investing platform and credit cards, climbed 41% to $429 million but missed expectations of $474 million.
More recently, SoFi has moved into the crypto world by rolling out crypto trading to customers and launching its own dollar-pegged stablecoin late last year.
Revenue of SoFi’s technology platform, where it sells banking-as-a-service and other infrastructure, fell 27% to $75 million. The firm cited the impact of a large client fully leaving its platform before the end of last year as a contributor to the decline, according to the report.
Chime shared plans to transition off SoFi’s platform early last year, according to the company’s S-1 filing. Earlier this year, Mizuho analyst Dan Dolev expressed the view that news of SoFi’s loss of Chime as a customer was a major source of its weak stock reaction, calling the concerns “overblown.”
David Hollerith covers the financial sector, ranging from the country’s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.
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