SoFi Technologies, Inc.

Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies first quarter 2026 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'd 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, press star followed by the number one again. Thank you. With that, you may begin your conference.

Thank you and good morning. Welcome to SOFI's first quarter 2026 earnings conference call. Joining me today to talk about our results and 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 first quarter of 2026 versus the first quarter of 2025. 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 in 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 would like to turn the call over to Anthony.

Thank you and good morning everyone. We've had a remarkable start to 2026. Our relentless member focus continues to drive innovation across our business leading to our 18th consecutive quarter of the rule of 40 with a score of 72 reflecting 41% revenue growth and 31% EBITDA margins. Notably, this was the second consecutive quarter that we've generated more than 1Billion dollars in cash revenue. In Q1, we generated over 1Billion dollars in cash revenue consisting of approximately 690Million dollars in cash revenue from net interest income and about 390Million dollars in cash revenue from interchange fees, brokerage fees, technology and loan platform fees, and loan origination fees. In fact, in both 2025 and 2024, more than 100% of our adjusted net revenue was cash revenue at $3.8 billion in cash revenue in 2025 and $2.7 billion in cash revenue in 2024. Our durable growth with an acceleration in revenue growth and strong returns and profitability is fueled by our consistent focus on innovation and brand building. Our mission remains the same. We help people reach financial independence to achieve their ambitions, helping them get to the point where they have enough money to live where they want, have the size family they want, the house they want, the career they want, and retire when they want. Other financial institutions pick and choose the products they offer based on how much money they can make off of their customers. And as such, they don't deliver the holistic experience people need to make their ambitions a reality. That's why SoFi delivers the Everything Financial app with unquestionably the most comprehensive set of digital financial tools and resources to help our members get their money right. Our critical success factor is helping people spend less than they make and invest the rest. Savings is not enough. Saving will help you get by, but investing is critical to get ahead to achieve your dreams. In order to achieve this critical outcome, we must help our members borrow better, save better, spend better, invest better, and protect better. We cannot just offer the products that are the most attractive financially. We need to be there for our members, not just for the large financial decisions in their lives, but all the days in between. It's not just our opinion that SoFi is the best. We are hearing it from others as well. In March, we ranked number one in the J.D. Power 2026 U.S. Investor Satisfaction Study for Do Yourself Investing. This award validates our approach to building our invest product in a thoughtful, member-centric way, and we're excited to now be helping a record number of members invest for a better future. Also just this month, SoFi was named the number one U.S. bank by Forbes in the world's best banks ranking, beating out institutions that have been around for decades. As part of this comprehensive survey, respondents were asked to rate banks on a customer service, digital services, financial advice, and perhaps most importantly, trust. Our goal is to become a household trusted brand name so we couldn't be more proud of this recognition that we are building trust with our members. While we are pleased with these achievements, it's still day one and we are far from where we aspire to be. In fact, this recognition further fuels our drive. Continuous iteration and learning leading to innovation is the key to our success. It powers our growth and it strengthens our returns for shareholders. Over the past eight years, we've grown members by more than 20X from 650,000 to 14.7 million members. In Q1, we once again added a record number of new members at 1.1 million new members, increasing total members by 35% year-over-year to 14.7 million. We also added a record 1.8 million new products in Q1, increasing total products by 39% year-over-year. We now have 22.2 million products. SoFi continues to accelerate with 43% of new products opened by existing SoFi members versus 40% last quarter and 36% in Q1 of 2025. This clearly demonstrates the effectiveness of our everything financial services app strategy and our ability to build deeper multi-product relationships with members, which in turn will drive a higher lifetime value. Our strong member and product growth powered our revenue growth in the first quarter. adjusted net revenue was ahead of expectations at 1.1 billion dollars this is up 41 year-over-year an acceleration from last quarter's very strong growth rate our lending segment had a particularly strong quarter generating 629 million dollars in adjusted net revenue importantly our net interest income and origination fees in the lending segment totaled 639 million dollars this quarter In total, we had our best quarter ever for loan originations at $12.2B, which was up nearly $1.7B from just last quarter and included record originations across personal, student, and home loans. Of the $12.2B in originations, $9.2B was for our lending segment and $3B was for our loan platform business. The development of our loan platform business over the last 18 months has allowed us to better meet the borrowing needs of more members. Our strategy for what we put in the balance sheet versus through the loan platform business remains guided by the principle that LPB loan originations reflect the incremental volume we would not otherwise originate for SoFi's balance sheet for a variety of reasons, including capital ratios, managing the overall growth of the balance sheet, and their credit profile of borrowers. In addition to being able to serve more members through these two channels, they also provide greater revenue diversification. For example, balance sheet originations provide very visible and recurring cash revenue generation through net interest income over the life of the loan. In Q1, 2026, we generated $690 million in cash net interest income, which provides revenue visibility, further contributing to our durable performance and cash generation. But this also comes with default risk and capital usage over the same time period. LPB loans, on the other hand, pay the majority of cash upfront, but free up capital instantly and remove the credit risk for SOFI. Together, financial services and our technology platform generated revenue of over $500 million, an increase of 24% year-over-year, and representing just under half of our total revenue. Our financial services segment continues to deliver impressive revenue growth of 41% year-over-year to $429 million. The technology platform segment delivered net revenue of $75 million, which was negatively impacted by the loss of a previously discussed large customer. Total fee-based revenue across our business was $387 million, up 23% from the prior year. In addition to delivering durable growth, we delivered strong returns and profitability. In the first quarter, adjusted EBITDA was $340 million of 62% year-over-year. Our adjusted EBITDA margin for the quarter was 31%. Our incremental EBITDA margin was 41% as we continue to balance reinvesting in the business to drive long-term growth and profitability. Net income in the quarter was $167 million at a margin of 15%. Earnings per share were 12 cents. or 13 cents on a constant stock price basis quarter over quarter. Finally, our tangible book value ended the quarter at $9.2 billion, up 83% year-over-year, and $7.21 per share, which is up 57% year-over-year. It is clear that our diversified business is uniquely built to deliver a winning combination of growth and returns. and we continue to invest heavily to make our existing products even better, to build new products to help our members get their money right, and to further strengthen our trusted brand name. These investments will power our durable compounding 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, feeding our productivity loop and growth. In the first quarter, our unneeded brand awareness rose to an all-time high of 10%. That's up 300 basis points from a year ago. This is a reflection of our ability to meet our members where they are with a message of financial empowerment. So far in 2026, we completed another successful season of TGL presented by SoFi, which recorded significant fan engagement and momentum. We also kicked off the NBA playoffs with the SoFi playing tournament featuring six incredible winner-go-home games that brought in nearly 20% more viewers than last year and set new records for social and digital viewing. We also expanded our talent partnerships, adding two world-class golfers to Team SoFi, Justin Thomas and Charlie Hull. Justin and Charlie are true winners who share a passion for helping people get their money right. Beyond our strong sports marketing efforts, we're engaging with members earlier in their lives so they can build a better future from day one. For example, this year we kicked off our Future Wealth Summit, a national campus tour designed to help college students navigate key financial decisions and plan for life after graduation. Students today are making some of the most important financial decisions of their lives without the guidance they need. We're excited to bring practical education on banking, credit monitoring, and investing to put them on the path to success. Turning now to product innovation, starting with crypto, which has been a key focus over the past year. We believe the crypto super cycle that is underway will completely transform financial services, enabling frictionless money movement. We are well positioned to benefit from this super cycle, given our unique position as a tech company that is underpinned by the strength and stability of being a national bank. This is why we've been building a strong foundation on which we can develop and grow multiple new products and businesses and realize the benefits of crypto and blockchain across our entire ecosystem. In December, we took a big step forward on this journey with the launch of SoFiUSD. This made us the first national bank to launch its own stablecoin on a public, permissionless blockchain. SoFiUSD is at the heart of our strategy to make it faster, cheaper, and safer for people around the world to move money. During Q1, we began minting SoFiUSD, the next step towards building compelling use cases for the coin. We also formed an important partnership with MasterCard to enable SoFiUSD settlement across their global payments network. This will create interoperability between digital assets and fiat currencies and eventually allow for the settlement of transactions 24 hours a day, seven days a week versus just during business hours now. This brings me to our new big business banking offering, which was officially launched earlier this month. Today, companies operating fiat and crypto are forced to use multiple providers and are left waiting days for transactions that should take seconds. As a nationally chartered bank, we saw a tremendous opportunity to bring fiat and crypto banking to businesses on a single integrated and fully regulated platform. Our big business banking clients can hold funds in regulated business deposit accounts, with institutional-grade safeguards, move money and crypto in real time with API-driven payments, and convert fiat and crypto instantly through native SoFiUSD net and burn capabilities while maintaining reserves within SoFi's regulated environment. We will start with companies that are operating in crypto or crypto-adjacent industries, but as more and more companies look to operate across both fiat and digital assets, SoFi will be able to support those needs at scale, including on behalf of other large banks. Turning now to an update on SoFi Plus, our premium membership. Plus is positioned to be the best of every SoFi product all wrapped into one member experience. On April 1, we relaunched SoFi Plus with significantly enhanced benefits to bring the best of SoFi strategy to life while making the product a pay-only subscription. With the relaunch, we expanded our benefits, which now include our highest APY and deposits at 4.5% for up to $20,000, 1% match on deposits into taxable SoFi Invest accounts, 1% match on crypto purchases, unlimited one-on-one sessions with financial planners, a boost on SoFi credit card rewards, and so much more. Overall, this membership can unlock well over $1,000 in annual value for a fee of just $10 per month. less than the cost of today's lunch. And we will continue to roll out product enhancements and expand our offering while also providing special member options for military members and young adults, as well as through our SoFi at Work partnerships. The initial results of SoFi Plus since April 1's relaunch have been incredibly positive. We have seen strong growth in new paying subscribers, and the vast majority of new Plus paying subscribers are existing SoFi members who subsequently take out an additional product after signing up for Plus. SoFi Plus is not only driving a recurring and visible cash revenue stream, it is enhancing the awareness of the significant breadth of SoFi products as an everything app, and in turn, driving greater cross-buy and increased lifetime value. I would encourage everyone listening to try our rewards calculator on our website to see just how much you can earn from SoFi+. Now to our tech platform segment. We entered 2026 with the most comprehensive set of capabilities we've ever offered banks, fintechs, and brands. Given the breadth of our products, which extend well beyond the capabilities we acquired through Galileo and Technosys, we will be launching a new, unified brand and restructure go-to-market later this year. Over the coming months, we will roll out the new brand, SoFi Technology Solutions. The new brand reflects the more comprehensive set of products and services that we now offer enterprise clients across a total of four platform businesses. First, in processing, we continue to see strong momentum with our client rollouts on our modern cloud-based processing platform. We have 13 new clients that generated revenue in the first quarter that were not generating revenue a year ago. including successful implementations with fintechs and major consumer brands. We've built a healthy pipeline of additional customers and are excited to get more programs off the ground in the future. For example, in 2026, we're launching an expanded relationship with one of the top three telecommunication brands in the US and a new program with a financial services firm in the short-term lending space. Our second platform, Banking core ledgers and services includes our modern banking core and the many turnkey API powered solutions needed for banking as a service offerings. In this business, we are about to take a major step forward. This summer, we will complete the implementation of our new core platform with SoFi Bank, our first scaled launch with a US regulated bank. This will serve as a launching point to bring our new banking stack to other institutions. For SoFi Bank, our new core process platform will integrate seamlessly with our payments, fraud, and card capabilities, and importantly, will support ledgering for stablecoin in day one. In fact, the modern core will serve as the backbone for our planned crypto endeavors. We look forward to bringing this new banking stack to other institutions and building the next generation of our digital application platform. Our vision for our third technology platform business, Payment Hub, is to provide self-serve payment options across every type of money movement, including stablecoins, that are faster, cheaper, and more secure. Our API-first approach makes it easy to connect to ACH, same-day ACH, WIRES, FedNow, person-to-person payments, and real-time payments. Partners can manage payment flows with ease, maintain compliance, and offer a better customer experience. I will soon add SoFiUSD payment APIs to our big business banking offering, The fourth SoFi technology solutions platform focus is our risk and fraud platform. Within this platform, we currently offer seven products that address transaction fraud, account identity verification, and account takeovers, including Gallo instant verification engine for real-time API-based account verification, our payment risk platform for transaction fraud, and our identity verification service, which covers advanced compliance and sanction scenarios. These products leverage our latest models, often using over 600 data points for a single decision. And we are launching additional products in 2026 to further bolster our risk and fraud offering. Turning now to innovation within our lending segment, which is driving record originations across all three loan categories. Starting with personal loans, which support our mission of helping members reach financial independence. With the SoFi Personal Loan, members can refinance absurdly expensive credit card debt held at other institutions so they can stop paying for other people's rewards and focus on their own financial well-being. During the first quarter, we originated a record personal loan volume of $8.3 billion, taking share from competition and helping even more members get their money right. We see significant opportunity to help more people refinance high interest debt, and we will continue to innovate with new product features and leverage technology to improve the member experience. For example, we're rolling out our Personal Loan Doc Coach, which uses AI to validate members' pay stubs and other documents, streamline the application experience, and drive in cost savings over time. We're also testing new credit model features that can leverage enhanced data pools. This has the potential to help us make even better decisions that potentially extend credit to more members in the future. So, if I student loans help more and more students finance their education while they're in school, as well as supports students who have already graduated by helping them refinance their debt at a lower rate. Sooner loans have been a great way to introduce the brand and what we stand for to members early in their financial journey. Over time, we'll be there as their financial needs grow, which is why the value generated by our student loan business extends well beyond the interest income we collect on the initial loans. In Q1, we had our best quarter of student loan originations ever at $2.6 billion. This is up 2.2x year-over-year, but originations volume is more than just a number. In generating this volume, we helped nearly 10,000 members finance their education so they can realize their ambitions, and we helped over 10,000 members completely pay off their student loan debt. Turning to home lending, which is an area I'm particularly excited about, we've been hard at work creating a fast, seamless experience for our members who want to purchase a home, refinance an existing loan, or draw equity. Even while the overall home lending market is stagnant, momentum has been building in this business. We set origination records for four straight quarters, including Q1, when we originated $1.2 billion in home loans. This is up nearly 2.4x from the first quarter of last year. Here, too, we continue to innovate. For example, last week we announced a new equity line of credit experience, making it possible for members to access the equity in their homes through a seamless end-to-end experience on the SoFi platform. Finally, we continue to see healthy growth in our tangible book value. We recognize there has been ongoing discussion around last year's capital raises and their impact on dilution. As we previously explained, these capital raises were opportunistic, with proceeds intended to be deployed across a range of opportunities. Based on our analysis, the capital raises would not be dilutive to tangible book value on a per share basis. And this has proven to be the case. Our tangible book value per share increased 57% year-over-year to $7.21 up from $4.58 per share and is up 3% quarter over quarter from $7.01 a share. This is nearly $340 million of an increase in absolute terms. As you can see, our financial results are being driven by continuous innovation that is providing real value to our members. We continue to focus relentlessly on driving innovation and developing products and solutions to help our members navigate all the major financial decisions in their lives and every day in between. We will continue to put our members first and help them achieve their American dream. Over time, the trust that we build with our members will lead to deeper relationships. This, in turn, will drive a higher lifetime value per member and will power our compounding growth and returns. With that, I'll turn it over to Chris.