SoFi Technologies Reports Strong Q4 Results

SoFi Technologies Inc., a leading financial-technology company, has announced impressive fourth-quarter results driven by surging lending volumes. The company’s net income for the quarter reached $48 million, or 2 cents per share, compared to a loss of $40 million, or 5 cents per share, in the same period last year. This exceeded analysts’ expectations, who were anticipating the company to break even on a per-share basis.

In addition, SoFi reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $181 million, up significantly from $70 million in the prior year. The FactSet consensus had predicted $142 million.

Total net revenue for the fourth quarter amounted to $615 million, reflecting a substantial 35% increase from the previous year. Analysts had previously forecasted revenue of $575 million.

Looking ahead to the first quarter, SoFi anticipates adjusted net revenue between $550 million and $560 million, along with adjusted EBITDA ranging from $110 million to $120 million. Analysts’ estimates for adjusted net revenue stood at $578 million, with adjusted EPS projected at $125 million.

The company also reported notable growth in origination volumes for various loans. Personal loan volumes rose by 31%, while student loan and home loan volumes surged by 95% and 193%, respectively.

As a result of these impressive financial figures, SoFi’s stock surged by 11% in premarket trading.

Management remains optimistic about its future profitability. They expect the company to continue achieving positive results on a GAAP basis in the first quarter, with estimated GAAP net income between $10 million and $20 million. This exceeds the FactSet consensus of $8 million.

Looking at the full year, SoFi projects GAAP earnings per share ranging from 7 cents to 8 cents, surpassing analysts’ previous expectation of 5 cents.

SoFi Technologies Inc. has undoubtedly experienced a successful quarter, driven by robust lending volumes. With strong profitability and positive projections for the future, the company is well-positioned for continued growth in the financial-technology sector.