SoFi Defies Credit Fears as Consumers Keep Spending

SoFi reported its Q3 earnings Tuesday morning (Oct. 28), and the message was straightforward: Its mostly prime borrowers look resilient, and their spending is steady.

Pressed by analysts on consumer credit, CEO Anthony Noto said the company’s real-time view across checking, investing and lending shows “very strong” credit performance and day-to-day activity.

“The first message is our credit performing very well … not just the performance of credit, but the spending that we see in SoFi Money [digital banking], the engagement that we see in SoFi Invest and general behavior overall,” Noto told analysts.

CFO Chris Lapointe underscored that assessment, saying “the health of our consumer remains strong and our credit continues to improve.” Personal‑loan borrowers carry a weighted‑average FICO of 745; student‑loan borrowers average a 773, LaPointe said. The personal‑loan annualized charge‑off rate fell to 2.60% from 2.83% last quarter, with 90‑day delinquencies holding at 43 basis points. Student‑loan charge‑offs eased to 0.69%, with 90‑day delinquencies at 14 basis points.

On the macro backdrop, Noto said the company is positioned to do well if rates stay where they are and to benefit if they fall. Lower rates would “meaningfully” lift student‑loan refinancing and help home‑equity and mortgage demand, he said.

The company expects to maintain healthy net‑interest margins and has historically run a 65-70% deposit rate, LaPointe noted. LaPointe said SoFi card and deposit spend totaled nearly $20 billion in annualized transactions, up 55% year over year, which he interpreted as evidence of healthy consumer activity.

Capital Markets

He also described a “flight to quality” among capital‑markets partners, with several upsizing commitments to buy SoFi‑originated loans. The Loan Platform Business originated $3.4 billion for third parties in Q3, and SoFi executed a $466 million securitization backed by those loans.

Management said buyers are consolidating toward platforms they view as higher quality, and several partners increased commitments heading into Q4. There was some investor concern in that area, but at least one Wall Street analyst firm filed a bullish report after the call.

“Investor attention is focused on signs of deteriorating consumer health and private credit exposure,” wrote Andrew Jeffrey at analyst firm William Blair. “However, SoFi continues to fire on all cylinders. The company saw 20-basis-point-plus improvements in losses across personal and student loans while delinquencies were about stable sequentially, all while accelerating core origination (excluding LPB) growth to about 23% from 19%, quarter over quarter. Personal loan NCOs were the lowest in two years. Despite macro concerns around private credit, SoFi suggested it has seen an uptick in demand, with $3.4 billion of originations in the third quarter. We believe SoFi is benefiting from a flight to quality driven by superior loan performance.”

Other developments from the call:

Product pipeline: SoFi launched SoFi Pay, a blockchain‑enabled remittance service, and said it will relaunch crypto trading, letting members buy, sell and hold dozens of tokens within the SoFi app while previewing plans for a SoFi‑branded stablecoin in 2026. The firm also rolled out an AI‑powered Cash Coach and teased a coming SoFi Smart Card with rewards and credit‑builder features.

Student loans: Asked about potential federal moves, including possible sales of government‑held student‑loan portfolios, Noto said SoFi would “absolutely dig into it” for both acquisition and servicing opportunities and stands ready to fill gaps if federal lending limits tighten.

SoFi reported record GAAP net revenue of $961.6 million (adjusted: $949.6 million) and net income of $139 million for Q3. The company added a record 905,000 new members, bringing total membership to 12.6 million, and 1.4 million new products for 18.6 million total products. Fee‑based revenue hit a quarterly record, and deposits grew to $32.9 billion.

Management raised full‑year 2025 guidance for adjusted revenue, adjusted EBITDA and adjusted EPS. The company raised its 2025 guidance again, projecting $3.54 billion in adjusted revenue and $1 billion in adjusted EBITDA, signaling confidence in sustained growth.