SoFi Technologies, Inc.

Good morning or good afternoon all. My name is Adam and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q3 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Thank you. With that, you may begin your conference.

Thank you and good morning. Welcome to SoFi's third quarter 2025 earnings conference call. Joining me today to talk about our results in recent events are Anthony Noto, CEO, and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the investor relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the third quarter of 2025 versus the third quarter of 2024. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include but are not limited to our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services, and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10Q filing which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events. And now I'd like to turn the call over to Anthony.

Thank you and good morning, everyone. We had an excellent third quarter. Our one-stop-shop strategy is firing on all cylinders as we continue to deliver exceptional financial performance while also investing in our business to drive durable growth and strong returns over the long term. In fact, our focus on product innovation and brand building has never been stronger. There's more happening at SoFi today than at any other time in my eight years with the company. We are stepping on the gas to accelerate the investment in our existing businesses and entering new areas like crypto and blockchain, AI, SoFi Pay, providing fiat and crypto banking services, and so much more. I'll discuss some of these efforts momentarily, but first, let me cover key results for the quarter. Starting with the drivers of our durable growth. We added a record 905,000 new members in Q3, increasing total members by 35% year-over-year, a slight acceleration to 12.6 million SoFi members. We also added a record 1.4 million new products, also representing an acceleration in growth to 36% year-over-year, and over 18.6 million products. Crossbuy reached its highest level since 2022, with 40% of new products opened by existing SoFi members. Our cross-buy rate has increased in each of the past four quarters, demonstrating the effectiveness of our one-stop shop strategy. Our strong member and product growth powered our revenue growth in the third quarter. Adjusted net revenue was a record at $950 million, up 38% year-over-year. Together, our financial services and technology platform segments generated revenue of $534 million, which is up 57% year-over-year, and now represents 56% of total revenue. This is the first time these segments have generated more than half a billion dollars of quarterly revenue. In our lending segment, adjusted net revenue grew 23% year-over-year, to $481 million, driven by strong originations in this segment of $6.6 billion, up 23% from the prior year. Combined with the very strong $3.4 billion originations in the loan platform business, total originations reached a record of $9.9 billion for the third quarter. This is an increase of $1.2 billion from our prior record. I'm also proud to report that total fee-based revenue across our business was also a quarterly record at $409 million, up 50% from the prior year, driven by strong performance from our loan platform business, origination fees, referral fees, interchange revenue, and brokerage fee revenue. On an annualized basis, we're now generating over $1.6 billion of fee-based revenue, reflecting the deliberate diversification of our business towards more capital light revenue streams. In addition to delivering durable growth, we delivered strong returns and profitability. In the third quarter, adjusted EBITDA was a record at $277 million, up nearly 50% year over year. Our adjusted EBITDA margin for the quarter was 29%. Our incremental EBITDA margin was 35% as we continue to balance reinvesting in the business, deliver long-term growth, and delivering profitability. Net income for the quarter was $139 million at a margin of 14%. Earnings per share were 11 cents. Finally, our tangible book value ended the quarter at $7.2 billion, which includes the benefit from a successful opportunistic capital raise during the quarter. Over the past two years, we have more than doubled our tangible book value. Our diversified business is uniquely built to deliver a winning combination of growth and returns. One way to measure the success is the rule of 40 calculation, which is revenue growth plus EBITDA margin. We've beaten the Rule of 40 benchmark every quarter since going public. That's 17 straight quarters. Over that time, our average Rule of 40 score is 58, making us a top performer among fintechs and technology companies more broadly. And this quarter, we hit 67%. Despite these exceptionally strong results, I know that we are just getting started. The addressable markets across each of our products are massive in the United States, let alone in addition to international markets. In 2026 and beyond, we will uniquely start to benefit from both of the technology super cycles in AI and blockchain, where almost every other industry only benefits from one. And with nearly 13 million members, the unmatched capabilities of our technology, and the business scale of $3.8 billion in annualized revenue, and a $45 billion balance sheet, we have a rock solid foundation to build on. Given these dynamics, I've never been more optimistic about our prospects than I am today. This is why we are further accelerating our level of investment to make our existing products even better by providing the best speed, selection, and experience to build new products to help our members get their money right and to further strengthen our trusted brand name. Our investments will power our durable growth and drive stronger returns as we continue to scale. Let me now spend a moment discussing our brand building efforts, which are key to driving new members to SoFi and create a halo effect across our entire offering. During the third quarter, we launched an exciting new partnership with the NFL's most valuable player, Josh Allen, to promote the most valuable product and financial services, SoFi Plus. Our partnership with Josh is resonating with NFL fans, driving a 35% increase in unaided brand awareness among that target audience. Along with our broader marketing efforts, we drove unaided brand awareness to an all-time high of 9.1% during the quarter. Up from last quarter's record of 8.5%, and more than 4X higher than it was when we went public. Turning now to our product innovation. Last quarter, I spoke about how we are an unprecedented point in time with two technology super cycles taking place in crypto, blockchain, and AI. These super cycles have the power to completely reinvent the future of financial services, and we have moved fast to take advantage of these opportunities. I'm pleased to report that this week we launched our first payment product that leverages blockchain technology to provide fast, seamless, low-cost, and safe international payments with the launch of SoFi Pay. SoFi Pay gives members the ability to seamlessly send money in local fiat abroad by leveraging a layer 2 blockchain network and delivering local fiat into the account of the recipient. It's fully automated in the SoFi app at significantly faster speeds and lower costs compared to traditional services. Members will first be able to send money to Mexico with planned stage rollouts in Europe and South America in the near future. The SoFiPay wallet will over time integrate SoFiUSD stablecoin that we hope to launch in 2026. We also have plans to offer the SoFiPay app natively in international markets for foreign citizens to send money to the U.S. and many other international markets. This is another addition to our unprecedented money movement offering, which allows members to seamlessly send money through person-to-person payments with a phone number or email address, as well as Zelle, ACH, self-serve wires, and now the ability to send money internationally with SoFi Pay. I am also excited to share that this quarter we'll be relaunching the ability to buy, sell, and hold crypto assets, which will give members access to dozens of tokens directly in our SoFi app. Beyond offering the best selection, we will also be providing the best speed and convenience. Members can instantly find cryptocurrencies from their FDIC-insured SoFi money account, all within the integrated SoFi app. Members will also have the ability to transfer the crypto assets to SoFi and benefit from our broad range of products that are seamlessly integrated with our SoFi North American bank. And because many of our members may be new to crypto investing, we will support them with the best content to help them understand crypto investing and provide them with the peace of mind that comes from working with a regulated bank. But this is just the beginning of our ambitious crypto and blockchain product roadmap that will continue to come to life in 2026. I could not be more excited about the product roadmap and the multitude of use cases we have for our planned stablecoin, SoFiUSD, and our ability to differentiate a stable coin like no other company given our unique bank license, technology capabilities, portfolio products, and technology platform services. Turning now to the other super cycle, AI. We continue to test and implement a number of AI applications across our business. Behind the scenes, AI technology has been key to streamlining our operations to better serve our members. This has included using AI to promote higher quality engagement and giving our frontline member service team AI-driven tools to more quickly identify and resolve member issues. AI is also now being used to directly support members. Our AI support chat is helping members resolve questions in an efficient way, driving a noticeable impact on member satisfaction. It's currently integrated with our money and card products and will be rolled out across the entire SoFi platform this quarter. We've also launched the AI-driven Cash Coach to qualifying members. Here's how it works. From the home screen, members see a button saying Cash to Optimize. By tapping that button, the Cash Coach will look across both their SoFi and external accounts to see where cash utilization is suboptimal and provide them with personalized financial suggestions. For example, if a member is earning just two lousy basis points of interest on deposits with a big bank, it may suggest moving that cash to a SoFi account earning 3.8%, paying down a big bank credit card balance from a big bank that has a 25% interest rate. Cash Coach is just the beginning. Next year, we will launch a more comprehensive SoFi Coach program. that incorporates insights across all areas of financial activity, not just cash, which will be able to help members understand how to spend less than they make and invest the rest by breaking down what they must do, what they should do, and what they can do every day across their entire financial lives. For example, they could ask the SoFi Coach questions like, how has my credit score changed? How can I reduce my cost of debt? How much do I spend on subscriptions? How diversified is my portfolio? How is my investment compared to others my age? Over time, SoFi Coach will be able to do even more, like provide investment and lending options to choose from, help set up and track goals, and simplify processes like canceling subscriptions and optimizing reward points. We are so excited about how this AI-driven tool will help engage members and help them spend less than they make so they can invest the rest. Ultimately, SoFi Coach will supercharge our financial services productivity loop and lead to a deeper relationship that drives a higher lifetime value. Turning now to product innovation within our segments, starting with the financial services segment and the loan platform business. LPB has been a game changer for SoFi, diversifying our lending activity in a capital light, low risk way. It's a prime example of how we can leverage our unique tech, customer acquisition and operations capabilities to build a differentiated platform at scale. During the third quarter, we originated $3.4 billion of loans through our loan platform business, an increase of over $900 million from just last quarter. On an annualized basis, after just one year, this business is now running at a pace of over $13 billion of originations and $660 million of high margin, high return fee-based revenue. Importantly, we continue to increase the loan platform business near-term volume that is outside of our traditional credit box, effectively monetizing more of the roughly $100 billion of loan applications that we were not able to meet each year. Looking ahead, the opportunity for this business remains significant, and demand from our partners continues to increase. Recently, as some concerns have emerged within the private credit markets, we've actually seen our LPB partners lean in to do more with SoFi, not less, reflecting a flight to quality and durability through interest rate and economic cycles. We have worked hard over the last eight years to develop unique skills in underwriting, marketing, pricing, insights, and data, and as such, we are benefiting from this flight to quality. Turning to invest. Earlier this month, we launched Level One Options, which has been consistently a requested feature by our members. Options are another way we are providing access to our members that they otherwise wouldn't have so they can build portfolios that align with their financial goals. As part of this rollout, we also provide educational resources explaining how options work, the risks involved, and how to integrate them responsibly into a diversified investment strategy. Beyond options, we're also expanding our unmatched selection in the third quarter by providing access to IPOs like StubHub, Klarna, and Figma, and by launching the SoFi Agentic AI ETF. During the quarter, we also improved our features to make our invest products more intuitive and engaging. For example, we launched 24-7 instant transfers between invest and money, and we launched embedded rollovers and an enhanced rollover tracker giving members full visibility and control over their 401k rollover process. In the fourth quarter, we'll be making a number of additional enhancements. We are very excited about the progress made to build an investment platform that provides our members with way more options than what they would typically have access to. Turning now to SoFi Money. which has been a core part of our financial services productivity loop. In three years after acquiring our banking license, we have 6.3 million products and $33 billion of deposits. Our attractive APY is a compelling reason for members to make us their primary financial institution, but members also come to us for our best-in-class products and continued innovation. For example, we will soon be launching the SoFi Smart Card, a new card that brings together the best features to help our members spend, save and pay better. It will be part of our SoFi Plus offering and it will serve as a platform for continuous innovation. The card will offer 5% back on food, our highest interest rate on deposits, credit builder capabilities, borrowing capabilities, and so much more. This is yet another way in which we are pushing the limits on what is possible with banking products. Turning now to our lending segment. Lending is the most tenured core capability of SoFi and it's how our business got its start. Since that time, we have made significant progress strengthening both our member acquisition and our underwriting capabilities. For loans that we hold on our balance sheet, we focus exclusively on high prime and super prime borrowers with strong cash flow and FICO scores. In fact, the average FICO score of our personal loan borrower is 745 and our student loan borrower is 773. But we don't stop at credit scores. We use tried and true underwriting techniques to assess each individual borrower's cash flow and their ability to repay their loan. We are able to do this effectively at scale because of our innovative originations platform that leverages advanced technology and digitally enabled processes. The result is excellent credit performance that continues today. In fact, during the third quarter, we saw our net charge-off rates improve even as there has been moderate signs of stress showing up for some other companies. For both personal loans and student loans, net charge-offs were down more than 20 basis points in the third quarter. We also have a strong track record of building great lending products that help our members create a better future. For example, our innovative personal loan product allows members to refinance absurdly expensive credit card debt held at other institutions to save their hard-earned money. no longer will overachievers be suckered into chasing rewards only to realize they are paying over 20% interest on unpaid principal balances while earning essentially no interest in that same bank's deposit account. We've recently made this product even more attractive to our members by rolling out an interest-only period to raise awareness of the personal loan product and help ease the transition from making credit card payments to making personal loan payments. Similarly, In student lending, we have completely changed the game, becoming the preeminent company for refinancing student debt at more affordable rates. Our student loan refinance product can reduce a member's interest rate by a couple hundred basis points, which will have a meaningful impact with a $40,000 loan balance. In fact, we estimate that we'll save our members over $100 million in interest expense just on the student loans we refinance during the third quarter. This is why we've made our product even more attractive by rolling out a feature that allows for the gradual step up in payments to help members find their footing. We look forward to helping even more members refinance their student loans as interest rates come down in the future. Turning now to home lending, where we're seeing very strong results. In the midst of the higher rate environment, we built and launched a home equity loan product to help members take advantage of their equity that has been built up in their homes, particularly over the last few years. In the third quarter, just one year after launch, we originated over $350 million of home equity loans, helping us set a record of $945 million of originations for all of home lending. In fact, Q4 will likely be the first quarter where we generate more revenue from home loans than from student loan refinance, which was our first product and the largest product prior to COVID. At the same time, we're preparing for lower rates to further accelerate our home loans business in 2026. We've not only strengthened our operations, but we have also enhanced our product to make them very attractive to our estimated 3 million members who currently have mortgages elsewhere and to those who may be first-time home buyers. We believe our offering will drive strong growth as the market opens up. Turning to our tech platform segment. This business has been instrumental in our ability to innovate across the SoFi platform, and it's now allowing a broader range of companies to bring innovative programs that drive greater loyalty and engagement to their customers. In fact, today, we are incredibly excited to announce our newest partnership with one of the largest airlines in North America, Southwest Airlines, to power their Rapid Rewards debit card, which combines the convenience of debit payments while earning points on everyday purchases. We've also signed on two major consumer brands, our largest yet, which will be announced in due course. These partnerships are a reflection of the strong and growing demand for our market-leading technology to power embedded financial products at scale for some of the most well-known brands around the world. As you can see, it was an eventful third quarter at SoFi, and we are as energized as ever as we wrap up the year and head into 2026. With that, let me now turn the call over to Chris.