SoFi Technologies, Inc. · Q2 2026 call

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.

To put this in context, we had 650,000 total members when I joined in 2018, and we are now adding that amount every seven or eight 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, increasing total products by 42% year-over-year to 24.4 million products.

After just one 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. […] I'd be disappointed if we are not at 1 million SoFi Plus members generating annual revenue of $120 million a year from now.

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

we generated $1.2 billion in cash revenue in Q2, our third straight quarter exceeding $1 billion of cash revenue. […] Cash is defined and accounted for the same universally, no matter what type of company it applies to.

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%.

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%.

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 toward the low to mid-teens.

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.

This is the first quarter where we were able to do so by introducing the SMB partnerships. There are two of them. One is with BasePoint Capital for $3 billion over three years, the other is with an undisclosed party for several hundred million dollars.

We ended up raising guidance from a revenue perspective about $100 million-$200 million. […] There are just too many large attractive growth areas for us to invest versus adding even more profitability.

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. […] 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 entered the year expecting rate cuts. We're now expecting two rate increases. We've not only maintained our guidance for revenue and profitability, we've exceeded expectations on the revenue side.

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?" That's where that business was born out of.

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. The answer is simple: I believe we will achieve the returns that Chris walked through before of 20%-30% return on tangible common equity.