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SOFI · Forward model · Corporate/Other · Bear case

What has to happen in Corporate/Other

Model as of

This page changes Corporate/Other inside the complete SOFI model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

SOFI forward model
Horizon
Consolidated fair value $7.21 all other verticals held in this portfolio case
Final-quarter revenue −$40M -3% of company revenue
Explicit segment contribution −$675M EBITDA less segment capex, before corporate items

The three things that can break a lender at once. Credit turns, so the 55% Lending contribution margin gives back the improvement it has made; deposit costs stop falling, so the 6.05% revenue yield on the book compresses faster than the glide assumes; and the pool of third-party buyers for loans thins, so the Loan Platform Business fee that made record originations possible without record balance-sheet growth gets smaller. SoFi names all three risks itself. The tell is already in the guidance: management raised the revenue outlook for 2026 and left adjusted EBITDA, adjusted net income and adjusted EPS exactly where they were, which is what growth being reinvested rather than banked looks like.

Corporate/Other

Basis quarter−$57M
Final quarter−$40M
Final revenue mix-3%

Not a business — the reconciling column, and it is carried here because it is a revenue line rather than an expense. Negative $56.9M in the basis quarter: unallocated net interest expense at the holding company, the elimination of the intersegment fees SoFi's businesses pay Galileo, and items the chief operating decision maker does not push down to a segment. It is included so that the four lines sum to reported total net revenue instead of running 4.7% above it. It is also the least forecastable line on the page — it was positive $16.0M across the first nine months of 2024 and has been negative in every quarter since.

Last four quarters
2025 Q3 −$66M Reported
2025 Q4 −$53M Estimated
2026 Q1 −$46M Reported
2026 Q2 −$57M Reported
Unallocated net interest expenseElimination of intersegment Technology Platform feesItems not allocated to reportable segments
Sequential growth +2.0%/qtr decaying toward +1.0% 2% a quarter more negative. Half of this column is intersegment elimination that grows with Galileo.
Corporate/Other

Latest: −$40M (2031Q2E)

Period Value
2024Q3 −$40M
2024Q4 −$43M
2025Q1 −$48M
2025Q2 −$61M
2025Q3 −$66M
2025Q4 −$53M
2026Q1 −$46M
2026Q2 −$57M
2026Q3E −$56M
2026Q4E −$56M
2027Q1E −$55M
2027Q2E −$54M
2027Q3E −$53M
2027Q4E −$52M
2028Q1E −$51M
2028Q2E −$50M
2028Q3E −$49M
2028Q4E −$48M
2029Q1E −$48M
2029Q2E −$47M
2029Q3E −$46M
2029Q4E −$45M
2030Q1E −$44M
2030Q2E −$43M
2030Q3E −$42M
2030Q4E −$41M
2031Q1E −$40M
2031Q2E −$40M

Assumptions & reasoning

  • This line exists so the model's consolidated revenue equals SoFi's reported total net revenue in every historical quarter. Without it the three operating segments sum to $1,275.6M in the basis quarter against a reported $1,218.7M.
  • It has changed sign inside the history window — positive $15.97M across the first nine months of 2024, negative $56.9M now — which is why its projection is the assumption on this page a reader should trust least.
  • Roughly half of the basis-quarter figure is the elimination of the $27.8M of intersegment fees SoFi's own businesses pay the Technology Platform. That half is structural and grows with Galileo's internal usage rather than with anything external.
  • Because the projection grows it slowly more negative, this line becomes a smaller drag as a share of revenue over the horizon — from 4.7% of the basis quarter to under 1% at the terminal. That is a real assumption, not an accounting identity.
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