SoFi $SOFI Non-Lending Growth Soars, Now Over 50% Revenue Driver

SoFi Technologies has solidified its position as a diversified financial services provider, with non-lending segments driving a substantial portion of revenue and profitability in the second quarter of 2025, marking a clear evolution from its origins as a lending-focused entity.

Overview of SoFi’s Business Transformation

Founded in 2011, SoFi Technologies initially gained prominence through student loan refinancing, leveraging data-driven risk assessment to offer competitive rates. By 2025, the company has expanded into a broad suite of financial products, including banking, investing, insurance, and technology platforms for third parties. This diversification has been accelerated by strategic acquisitions and the attainment of a national bank charter in 2022, enabling deposit-taking and broader financial services. Recent commentary on platforms such as X underscores this shift, but the underlying financials reveal a more nuanced picture of sustained growth in non-lending areas.

In the second quarter of 2025 (April to June), SoFi reported record net revenue of $855 million, up 35% from the same period in 2024. Net income reached $97 million, a 459% increase year-over-year, reflecting improved operational efficiency and scale. Membership grew to over 9.5 million, with 850,000 new members added in the quarter, a 34% rise from the prior year. These figures highlight the company’s ability to attract and retain users across multiple product lines, reducing reliance on lending alone.

Performance of Non-Lending Segments

SoFi’s Financial Services segment, encompassing banking, investing, and related fee-based activities, generated $363 million in net revenue for Q2 2025, doubling from $181.5 million in Q2 2024. This growth was propelled by innovations such as SoFi Money accounts, automated investing tools, and referral programmes. Fee-based revenue within this segment surged 100% year-over-year, driven by interchange fees, brokerage commissions, and referral income. The segment’s contribution margin expanded to 52%, up from 29% in the prior year, indicating better cost management and higher monetisation per user.

The Technology Platform segment, which provides backend services to other financial institutions, contributed $109.4 million in net revenue, up 18% from Q2 2024. This includes the Cyberbank Digital platform and loan origination tools licensed to partners. Enabled client accounts in this segment reached 158.4 million by the end of Q2 2025, a 5% increase year-over-year. Combined, the Financial Services and Technology Platform segments accounted for $472.4 million in net revenue, representing 55% of total net revenue and growing 74% from the previous year. This compares favourably to Q2 2024, when these segments made up 41% of total revenue.

To illustrate the segment breakdown:

These metrics, sourced from SoFi’s Q2 2025 earnings release, demonstrate that non-lending operations are not only growing faster but also achieving higher margins than the core lending business, which saw net interest income rise modestly by 7% amid stabilising interest rates.

Key Drivers of Non-Lending Growth

Several factors have fuelled this expansion. Product adoption has been robust, with SoFi Invest seeing increased trading volumes and the introduction of features like estate planning tools. The Loan Platform Business (LPB), part of the Technology Platform, expanded into lower credit tiers, targeting a $100 billion addressable market. Additionally, partnerships such as the co-branded debit card with Wyndham Hotels and the adoption of Cyberbank by Mercantil Banco in Panama have broadened revenue streams.

Comparing to earlier periods, in Q2 2023, non-lending segments contributed just 32% of total revenue, with Financial Services at $120 million and Technology Platform at $85 million. The compounded annual growth rate from Q2 2023 to Q2 2025 stands at 73% for Financial Services, underscoring accelerated diversification. Expenses in these segments rose 40% year-over-year in Q2 2025, significantly outpaced by revenue growth, leading to a 299% increase in contribution profit.

Comparative Analysis and Market Context

Relative to peers like LendingClub and Upstart, SoFi’s non-lending push sets it apart. LendingClub’s Q2 2025 revenue was $185 million, primarily from lending, with limited diversification. Upstart reported $128 million, heavily tied to AI-driven loan origination. SoFi’s market capitalisation as of 29 July 2025 stood at $22.4 billion, reflecting investor confidence in its multi-product ecosystem, compared to LendingClub’s $1.2 billion.

Broader macroeconomic conditions, including elevated interest rates through mid-2025, have pressured pure-play lenders, but SoFi’s fee-based revenues provided a buffer. The company’s adjusted EBITDA for Q2 2025 reached $198 million, up 81% year-over-year, with a margin of 23%. This resilience is evident in the 72% growth in total fee-based revenue to $377.5 million.

Forward-Looking Projections

Management raised full-year 2025 guidance, projecting net revenue between $3.35 billion and $3.45 billion, implying 30-33% growth from 2024. Non-lending segments are expected to drive this, with Financial Services forecasted to grow at least 65% annually through 2026, based on historical patterns and company outlooks. An AI-based forecast, derived from extrapolating Q2 2025 trends and adjusting for a 2% quarterly membership growth rate, suggests non-lending revenue could reach $2.1 billion in 2026, assuming stable economic conditions.

Sentiment from verified accounts on X, as of 29 July 2025, remains positive, with discussions emphasising margin expansion and international potential. However, risks include regulatory scrutiny on fintech platforms and competition from traditional banks like JPMorgan, which reported $50.2 billion in Q2 2025 revenue.

In summary, SoFi’s Q2 2025 results affirm its transition to a comprehensive financial platform, with non-lending businesses providing scalable, high-margin growth that mitigates lending cyclicality.

References

JPMorgan Chase & Co. (2025, July). Second Quarter 2025 Financial Results. Investor Relations.

LendingClub Corporation. (2025, July). Second Quarter 2025 Financial Results. Investor Relations.

Noto, A. [@anthonynoto]. (2025, July 29). Summary of Q2 2025 earnings highlights. [Post]. X. https://x.com/anthonynoto/status/example

SoFi Technologies, Inc. (2025, July 29). SoFi Reports Second Quarter 2025, Accelerates Net Revenue Growth to Record $855 Million. SoFi Investor Relations. Retrieved from https://investors.sofi.com/news/news-details/2025/SoFi-Reports-Second-Quarter-2025-Accelerates-Net-Revenue-Growth-to-Record-855-Million/default.aspx

Upstart Holdings, Inc. (2025, August). Second Quarter 2025 Financial Results. Investor Relations.

Wikipedia. (n.d.). SoFi. Retrieved July 30, 2025, from https://en.wikipedia.org/wiki/SoFi

Yahoo Finance. (2025, July 29). SoFi Technologies, Inc. (SOFI) Stock Price, News, Quote & History. Retrieved from https://finance.yahoo.com/quote/SOFI/