SoFi Technologies, Inc. (SOFI) Business Profile

What it does

SoFi Technologies is a digital financial services company and bank holding company. Founded in 2011, it offers consumers a range of ways to borrow, save, spend and invest through a common mobile application. It calls its consumer customers members.

Its lending products include personal loans, student loans and home loans. Through SoFi Bank, a nationally chartered bank, members can open checking and savings accounts, use credit cards and trade digital assets. SoFi also offers investing and financial planning tools, insurance referrals and a premium membership called SoFi Plus.

The company also serves businesses and other institutions. Its Loan Platform Business originates loans for third-party partners, refers pre-qualified borrowers and provides loan servicing. Its Technology Platform supplies software and services that help clients create and run financial products, including digital and core banking services.

SoFi organizes its operations into three segments: Lending, Financial Services and Technology Platform. The segments connect in several ways. For example, deposits at SoFi Bank can fund loans, while borrowers whose loans are originated for partners can become SoFi members and use other products. The company also uses its technology platform services internally.

SoFi’s strategy is to build relationships with members across multiple products. Its personalized app experience presents financial content and suggestions, and the company considers it a driver of new product adoption.

How it makes money

SoFi earns both interest income and fees. Its total net revenue was $3.6 billion for the year ended December 31, 2025.

In Lending, the company earns interest on loans it holds, less the cost of financing them. It also earns fees, including loan origination fees. SoFi can hold loans on its balance sheet or sell them as whole loans or through securitizations. It generally retains servicing rights after transfers, with exceptions for certain home loans. Holding loans longer lets SoFi earn interest for a longer period, while sales provide another way to manage its loans and funding.

Financial Services earns interest-related income from deposits and credit cards, as well as several kinds of fees. For loans originated for partners, the Loan Platform Business receives a fee upon sale. SoFi also earns referral fees when partners serve customers referred through its platform. Debit and credit card transactions generate interchange fees, and SoFi Invest earns brokerage fees primarily through share lending and payment-for-order-flow arrangements. Some products, including SoFi Relay, do not directly generate revenue.

Technology Platform clients pay for platform use, software licenses and related services. Many contracts run for multiple years, with pricing typically based on volume or a combination of activity and volume. Many have minimum monthly payments. Software arrangements can include recurring subscription and maintenance fees, while implementation and development services may be billed separately.

In the year ended December 31, 2025, fee-based revenue was $1.5 billion. SoFi reported growth in Loan Platform Business fees alongside origination, referral, interchange and brokerage fees.

Customers and how it sells

SoFi serves individual members alongside enterprise clients and partners. Members use its lending, banking, investing and other financial services products. Enterprise customers include financial institutions, government entities and non-financial institutions that use its technology services, as well as partners that acquire loans or receive borrower referrals.

Total members reached over 13.6 million as of December 31, 2025. SoFi’s strategy encourages members who join for one need to use additional products. Its personalized member home experience presents content about their financial lives, and products such as checking accounts can provide more frequent interactions than loans.

SoFi primarily operates in the United States. It also operates in Latin America, Canada and Switzerland, largely through its Technology Platform segment, and has an investment business in Hong Kong. Technology Platform customers and partners are primarily in North America and Latin America.

The company reaches consumers through its app and marketing channels including social media, search, online affiliations, direct mail, partnerships, sponsorships and television advertising. Its enterprise offering includes SoFi At Work, through which employers can provide financial benefits to employees. During 2025, Banco Nación selected SoFi’s Cyberbank Digital platform to modernize its digital banking infrastructure. A large Technology Platform client fully transitioned off the platform during 2025.

Suppliers and costs

SoFi’s main funding sources for lending include deposits, warehouse financing and its own capital. Deposits at SoFi Bank have lowered its overall cost of asset-backed financing relative to alternative sources, while interest paid to depositors and other financing costs affect net interest income. The company also sells whole loans, primarily to large financial institutions, and uses securitizations.

The business relies on outside providers for some activities. SoFi directly services the personal loans it originates, but uses sub-servicers for direct servicing of its student loans and government-sponsored enterprise conforming home loans. It also works with payment networks, insurance providers and other enterprise partners.

Operating costs include compensation and benefits, advertising and lead generation, payment processing and network fees, product fulfillment, tools and subscriptions. Technology Platform expenses rose in 2025 partly because of higher allocated compensation and benefits. Financial Services expenses rose partly because of increased advertising and lead generation, compensation and internal technology usage. SoFi also incurs credit-related costs and losses, including provisions for credit losses.

Competitive position

SoFi competes across several markets rather than against a single type of provider. In lending, it faces banks, credit unions, specialty finance companies and technology-enabled lenders. It competes with banks and some technology and retail companies for deposits, and with brokerage and digital asset platforms for investment and crypto accounts. It also competes with other technology platforms for enterprise banking and payment services. SoFi does not name individual competitors.

Some competing banks and brokerage firms are larger, have operated longer and have greater brand awareness. In enterprise technology, larger institutions could invest in competing platforms and undercut SoFi’s pricing, affecting both renewals and new client acquisition.

SoFi’s strategy centers on giving members multiple products in one app. The company says members often arrive for a specific need and later consider other products, increasing revenue per member while lowering acquisition costs. Its loan servicing relationships also keep it connected to borrowers, and its underwriting and servicing generate loan-performance data.

Our reading: The breadth of the app and ongoing member relationships offer a potential advantage in cross-selling, but customers can obtain individual services from many other providers. Our reading: Loan data and technology infrastructure support SoFi’s ability to serve members and enterprise clients, although the available evidence does not establish how difficult they are for competitors to replicate.

Growth opportunities

SoFi seeks to grow by adding members and encouraging existing members to use more of its products. It calls this strategy the Financial Services Productivity Loop: additional product adoption can increase revenue per member and lower acquisition costs, while giving the company resources to improve its services.

Total members reached over 13.6 million as of December 31, 2025, a 35% year over year increase. Total products reached nearly 20.2 million as of the same date, a 37% year over year increase. Lending product origination volume increased 57% in the year ended December 31, 2025, and SoFi sold or transferred more than $15.6 billion of personal, student and home loans during that year.

The company plans to pursue more fee-based revenue, including through its Loan Platform Business. In the year ended December 31, 2025, that business generated $575.9 million in loan platform fees, driven by loans originated for third parties and referrals. SoFi also continues to diversify its Technology Platform client base and develop services for financial and non-financial institutions.

New products are another part of the strategy. During 2025, SoFi launched global remittance services, SoFi Crypto and its SoFiUSD stablecoin. It was reported on 28 October 2026 that Technology Platform revenue fell 24% to $87 million after a large client left.

Structural risks

• Credit and economic conditions: SoFi faces the risk of inaccurate credit or pricing decisions and loss forecasts. Worsening economic conditions, inflation, interest rates and consumer debt delinquencies can affect borrowers and demand for its services.
• Funding and loan sales: The company needs to retain or obtain financing, including deposits, and maintain access to loan purchasers and warehouse facilities. Funding costs, availability and its ability to sell loans can affect operations and liquidity.
• Competition and clients: SoFi faces intense competition, while the loss of significant loan purchasers or technology platform clients could affect its business. Clients’ financial or liquidity problems could also cause them to terminate services or fail to pay.
• Regulation: Banking, consumer protection, securities and other rules apply across the business. SoFi also faces evolving regulatory policies relating to digital assets, international expansion and technology services; noncompliance can lead to enforcement actions and penalties.
• Technology and third parties: Cyberattacks, security breaches, fraud or failures by outside service providers could disrupt operations or harm SoFi’s reputation. The company also faces risks when bringing services or systems in-house.

Bottom line

Our reading

SoFi combines a deposit-funded lending business with consumer financial products and enterprise technology services. Our reading: Its model depends on bringing members into multiple products and using deposits, loan sales and partner relationships to support lending growth. Those opportunities sit alongside exposure to credit losses, funding conditions, regulation and the loss of significant enterprise clients.