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SoFi Shows Strong Q1 Growth but Faces Investor Skepticism

Market doubts stem from a weakened B2B tech unit, a forward valuation many see as rich, uncertainty about new product execution

Overview

  • SoFi's first-quarter disclosures on June 23–24 showed 41% revenue growth, 62% EBITDA growth and more than $1 billion of quarterly cash revenue.
  • The company's deposit base stood at $40.2 billion and management reported a 5.94% net interest margin that largely funds its loan portfolio.
  • SoFi's Loan Platform Business originated about $3 billion of loans with no retained credit risk and secured roughly $3.6 billion of new external commitments.
  • The tech-platform (B2B) segment weakened in Q1, with revenue down 27% year-over-year and customer count down 16% after the exit of a large client, raising near-term execution risk.
  • Shares have lagged the business, down about 32% year-to-date and trading near $15, while some analysts still model upside to roughly $23 per share; investors should watch tech-platform customer retention, NIM moves tied to rates, and progress on business-banking and crypto initiatives.