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SEC filingSoFi's Q2 2025 net revenue surged 43% YoY to $854.9M, driven by 106% growth in Financial Services and strong Lending contributions, with EPS improving to $0.08.
SoFi delivered a strong second quarter in 2025, with total net revenue of $854.9 million, up 43% year-over-year. Net income surged to $97.3 million from $17.4 million in the prior year, yielding diluted EPS of $0.08 compared to $0.01. The improvement was driven by a 26% increase in net interest income ($517.8 million) and an 81% jump in noninterest income ($337.1 million), which reached a record $377.5 million on a fee-based revenue basis. Net interest margin expanded 3 basis points to 5.86%, benefiting from a favorable shift in deposit mix and lower deposit costs. Provision for credit losses declined 14% to $10.0 million, reflecting improved credit card delinquency rates and tighter underwriting. Total noninterest expenses rose 28% to $732.7 million, with sales and marketing spending up 43% as the company scaled member acquisition.
The Lending segment generated $443.5 million in revenue (+30% YoY) with contribution profit of $244.7 million (+24%). Net interest income grew 33% due to higher personal and student loan origination volumes and longer holding periods. However, the segment's contribution margin contracted to 55% from 58% as directly attributable expenses rose 43%, largely from increased advertising and lead generation costs. The Technology Platform segment posted $109.8 million in revenue (+15%) and contribution profit of $33.2 million (+7%), driven by growth in processing activity and new client implementations, though expense growth outpaced revenue. The Financial Services segment was the standout, with revenue of $362.5 million (+106%) and contribution profit of $188.2 million (+241%). Loan Platform fees soared to $127.4 million (up from $12.0 million), reflecting the ramp-up of fee-based loan origination for third parties. Interchange fees rose 83% on higher credit and debit card spending. The segment's provision for credit losses decreased 14% as credit card charge-off rates dropped sharply.
Management highlighted continued strong demand across lending products, a growing Loan Platform Business, and a healthy deposit base of $29.5 billion. The company expects to benefit from the One Big Beautiful Bill Act's student loan changes, which could drive refinancing opportunities. While no explicit quantitative guidance was provided, the MD&A emphasized investments in marketing and technology to sustain member growth and product adoption, with a focus on expanding fee-based revenue streams. Capital ratios remain strong (SoFi Bank total risk-based capital at 15.3%), providing flexibility for growth.
Net income for H1 2025 was $168M, yet operating cash flow was negative $1.4B, indicating heavy working capital investment. The primary driver was a $2.4B net increase in loans held for sale, reflecting rapid loan origination. Adjustments for fair value changes and provisions provided some offset but were insufficient to offset the loan growth. Capital expenditures increased to $120M (from $74M), indicating continued investment in technology and infrastructure. Free cash flow, though not explicitly stated, is deeply negative given operating cash flow and capex combined. Financing activities provided $4.6B, mainly from $3.8B in net deposit inflows and $0.9B from debt facilities, which funded the investing cash outflow of $3.2B. No share repurchases or common dividends were paid; preferred stock dividends were eliminated after the Series 1 redemption in 2024. The company's cash position remained stable at $2.7B. Overall, the cash flow statement reflects aggressive growth in loans funded by deposit growth, a common pattern for financial platforms scaling lending operations.