SoFi Technologies (NASDAQ: SOFI) announced a stellar performance for the fourth quarter of 2024, achieving record adjusted net revenue of $739.1 million, a 24% year-over-year (YoY) increase. The company posted GAAP net income of $332.5 million and diluted EPS of $0.29, showcasing robust financial performance across its segments. The growth was primarily driven by a 52% combined increase in Financial Services and Tech Platform revenue.
- Adjusted Net Revenue: $739.1 million (up 24% YoY)
- GAAP Net Income: $332.5 million
- Diluted EPS: $0.29
- Fee-Based Revenue: $289.5 million (up 63%)
- Net Interest Income: $470.2 million (up 21%)
- Adjusted EBITDA: $198 million (up 9%)
- Member Base: Reached 10.1 million (up 34%)
- Total Products: 14.7 million (up 32%)
- Total Deposits: $26.0 billion (90% from direct deposit members)
Positive and Negative Aspects
| Positive | Negative |
|---|---|
| Record adjusted net revenue of $739.1M, up 24% YoY | Net interest margin decreased 11 basis points YoY to 5.91% |
| GAAP net income of $332.5M with EPS of $0.29 | Lending segment contribution margin declined to 58% from 65% YoY |
| Fee-based revenue increased 63% to $289.5M | Technology Platform segment growth slowed to 6% YoY |
| Member base grew 34% to 10.1M | |
| Financial Services segment revenue up 84% to $256.5M | |
| Total deposits reached $26.0B |
Analyst Insights
Financial analysts have praised SoFi’s transformation, highlighting its strategic pivot to higher-margin, capital-light revenue streams. The Financial Services and Technology Platform segments now represent 49% of adjusted net revenue, up from 40% last year. SoFi’s deposit strategy, which has driven deposits to $26.0 billion, offers a cost advantage of 193 basis points over warehouse facilities, translating to annual interest expense savings of $500 million.
Additionally, SoFi demonstrated strong risk management as 90-day personal loan delinquency rates improved to 0.55%, and charge-off rates decreased to 3.37%. The Financial Services segment saw an impressive 84% revenue growth, with contribution margins expanding to 45% (up 27 percentage points YoY), underscoring the scalability of SoFi’s platform.
Outlook
With key partnerships such as the US Treasury’s Direct Express program and new enterprise clients, SoFi is well-positioned for continued growth in its Technology Platform segment. While revenue impacts from these initiatives will materialize more significantly in 2026, SoFi’s robust performance and strategic direction signal a promising future.
