$SoFi Tech(SOFI.US)Context: SoFi reported Q3 GAAP net revenue of $1.385 billion, up 44% YoY, while adjusted net revenue …
$SoFi Tech(SOFI.US)
Context: SoFi reported Q3 GAAP net revenue of $1.385 billion, up 44% YoY, while adjusted net revenue reached $1.371 billion. GAAP net income rose 73% to $241 million, with diluted earnings of $0.18 per share. Adjusted EBITDA increased 70% to approximately $470 million, representing a 34% margin. SoFi added a record 1.2 million members during the quarter, taking its membership base to 17.1 million, up 35% from a year earlier. Total products climbed 44% to 26.7 million. Importantly, 51% of new products were opened by existing members. Total loan originations rose 71% to a record $16.9 billion. Personal loans accounted for approximately $12.6 billion, student loans $2.9 billion, and home loans $1.4 billion. Deposits increased $5.8 billion during the quarter to $51.3 billion. SoFi estimates its deposit-funded model delivers approximately $745 million in annualized interest-expense savings compared with warehouse financing. Net interest margin improved 16 basis points sequentially to 6.14%. Management raised its 2026 adjusted net revenue guidance & introduced targets of $6.4 billion in adjusted net revenue, $2.24 billion in adjusted EBITDA, and $0.90 in adjusted EPS. That implies roughly 27% revenue growth and 48% adjusted EPS growth compared with its 2026 guidance. The difference points to expected operating leverage, meaning profits could grow faster than revenue as the business scales.
My Trade: Trimmed my position yesterday as recent months data showed that the bullish momentum for Sofi is hard to maintain.Inn hindsight, perhaps being patient could have allowed me to sell at a better price now.
Takeaway: The stock's response was decisive. Trading volume exceeded 160 million shares yesterday, more than three times its recent daily average. That level of activity suggests the earnings release prompted a major reassessment, although it can not tell us how much buying came from long-term investors rather than short covering. @Captain's Treasure
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