SOFIWednesday, 28 Oct 2026
Q3 2026 results
Growth accelerated in Q3 2026 and profit grew faster still: GAAP revenue rose 44% and net income 73%, the 12th consecutive profitable quarter. The membership flywheel is speeding up, with members up 35%, products up 44% and products per member rising to 1.56. Loan originations, up 71%, are the main engine.
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Credit performance is steady, but the assumptions in the fair-value models are quietly becoming more conservative, and that is one to watch in Q4. Profit still comes mainly from the lending segment, and the technology platform and monetisation per product are clear weak spots.
Key evidence
- Overall results (reported before the open on 27 Oct, checked against the original text of SEC 8-K Exhibit 99.1): GAAP revenue $1.385 billion (up 44% YoY), GAAP net income $241 million (up 73%), diluted EPS $0.18, and a 12th consecutive profitable quarter. Tangible book value per share was $7.48 (up 25%). Gross crypto trading of $161.6 million is netted against its cost in the accounts, and revenue counts only the net $1.63 million, so the 44% growth rate is not inflated.
- Membership flywheel: 17.1 million members (up 35%, with a record 1.2 million added in the quarter) and 26.7 million products (up 44%, with 2.2 million added in the quarter). Products per member were 1.56 (1.47 a year earlier). 51% of new products were opened by existing members. Product growth continues to outpace member growth.
- Loan originations were $16.9 billion (up 71%): personal loans $12.6 billion (including $3.6 billion originated for third parties), student loans $2.9 billion (up 96%, an all-time high) and home loans $1.4 billion (up 44%). The blended annualised net charge-off rate on personal loans is about 3.4% (excluding the effect of delinquent loan sales), down 30bp QoQ and 80bp YoY. The student loan charge-off rate is 0.63%.
- Deposits rose by $5.8 billion QoQ to $51.3 billion, and average deposits made up 90% of liabilities. Net interest margin was 6.14% (up 16bp QoQ). The deposit rate is 145bp below warehouse funding, saving about $745 million of interest a year. Net interest income was $930 million (up 59%).
- Technology platform revenue was $87.4 million (down 24% because a large client left last year). Excluding that effect it rose 18%, and it was up 3% QoQ. Contribution margin fell from 28% to 16%. Accounts reached 140 million (up 6 million QoQ). Synergies from the Peach acquisition are not yet visible. Financial services revenue of $525 million (up 25%) grew more slowly than products (up 44%). Annualised revenue per product was $90 ($104 a year earlier, partly because of a change in definition), up $2 QoQ. Contribution margin fell from 54% to 50%. The 503,000 crypto products earn next to nothing and are there mainly to build stickiness.
- Segment profit mix: lending contributed $455 million, financial services $261 million and the technology platform $14.2 million. The profit of the 'all-in-one financial app' still comes mainly from lending.
Catalysts to watch
- 2026 full-year guidance: adjusted revenue of $5.04 billion (up 40%), net income of $840 million and EPS of $0.61
- First guidance for 2027: adjusted revenue of about $6.4 billion (up 27%), net income of $1.28 billion (net margin about 20%) and EPS of $0.90. Growth slows, but profit grows faster than revenue thanks to operating leverage.
- 2030 targets: 100 million products, and revenue of more than $1 billion from each of 5 business lines
- Whether the technology platform synergies from the Peach acquisition materialise
- Whether the Q4 fair-value model assumptions are raised again, which would test whether credit risk really is building
Risks
- Fair-value model assumptions are quietly becoming more conservative. The annual default-rate assumption for personal loans rose from 4.77% to 5.10% and for student loans from 0.73% to 0.89%, while the fair-value premium on personal loans fell from $1.22 billion to $1.02 billion. Management says performance is 'in line with expectations', but the assumptions are weakening.
- Technology platform contribution margin has nearly halved, from 28% to 16%. The hit from the departure of the large client has not been fully absorbed, and Peach synergies are not yet visible.
- Monetisation per product is falling ($90 against $104 last year). Part of that is a change in definition, but it also reflects dilution from new low-monetisation products (crypto, SoFi Plus).
- The 503,000 crypto products earn next to nothing, and using them to lift the product count makes the 'products' metric a lower-quality measure.
- Revenue growth slows from 40% to 27% in 2027, and the phase of rapid expansion is starting to draw to a close.
- Insider trading: EDGAR shows no new Form 4 since 22 Oct.
Sources (2)
- SEC 8-K Exhibit 99.1 (SoFi Q3 2026 earnings release, 27 Oct)
- EDGAR Form 4 search
A brief is a lead for our research, not a verified conclusion or advice.