SoFi Technologies, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. SoFi Technologies, Inc. operates as a bank holding company with three reportable segments: Lending, Technology Platform, and Financial Services. During the quarter, the Company acquired Peach Finance, Inc. (a loan management platform) and Composer Securities LLC (an AI-powered investing platform) for approximately $70.1 million in aggregate cash consideration. The Company also launched its proprietary stablecoin, SoFiUSD, and relaunched SoFi Plus as a paid subscription model.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | Y/Y Change |
|---|---|---|---|
| Total Net Revenue | $1.22 billion | $854.9 million | +43% |
| Net Interest Income | $788.2 million | $517.8 million | +52% |
| Net Income | $156.6 million | $97.3 million | +61% |
| Diluted EPS | $0.12 | $0.08 | +50% |
| Adjusted EBITDA | $357.8 million | $249.1 million | +44% |
| Total Assets | $60.9 billion | $50.7 billion (Dec 2025) | +20% |
| Total Deposits | $45.5 billion | $37.5 billion (Dec 2025) | +21% |
| Total Debt | $3.3 billion | $1.8 billion (Dec 2025) | +82% |
| Cash & Equivalents | $3.1 billion | $4.9 billion (Dec 2025) | -36% |
Material Changes vs. Prior Period
- Revenue Growth: Total net revenue increased 43% year-over-year, driven by a 52% increase in net interest income due to higher loan originations held on the balance sheet and a 28% increase in noninterest income.
- Segment Performance:
- Lending: Contribution profit rose 63% to $399.0 million, fueled by a 69% increase in origination volume across personal, student, and home loans.
- Financial Services: Contribution profit increased 13% to $212.7 million, supported by growth in interchange fees (+55%) and brokerage fees (+140%).
- Technology Platform: Contribution profit declined 65% to $11.8 million, primarily due to the exit of a large client that transitioned off the platform in late 2025.
- Balance Sheet Expansion: Total loans increased by $9.9 billion to $47.9 billion. Deposits grew by $8.0 billion to $45.5 billion, while debt increased by $1.5 billion to support loan growth.
- Cash Flow: Net cash used in operating activities was $6.2 billion, primarily due to loan originations outpacing sales and paydowns. Financing activities provided $9.6 billion, largely from deposit growth.
Guidance, Outlook, and Risks
- Outlook: Management highlights strong member growth (15.8 million members, +35% YoY) and product adoption (24.4 million products, +42% YoY). The Company continues to leverage its "Financial Services Productivity Loop" to lower acquisition costs and increase lifetime value.
- Convertible Notes: The 2029 convertible notes became convertible by holders from July 1, 2026, to September 30, 2026, as the stock price exceeded 130% of the conversion price. No conversions were elected through August 6, 2026.
- Risks & Contingencies:
- Regulatory: The issuance of SoFiUSD exposes the Company to evolving stablecoin regulations (e.g., the GENIUS Act) and compliance complexities regarding anti-money laundering and sanctions.
- Interest Rate Risk: The balance sheet is liability-sensitive; rising rates could compress net interest margins, though the Company uses derivatives to hedge exposure.
- Legal: A class action lawsuit (Smith v. SoFi Securities LLC) was filed in June 2026 regarding interest paid on bank deposit sweep programs; the Company intends to vigorously defend the allegations.
Investor Verification Checklist
- Convertible Note Conversion: Monitor the conversion activity of the $862.5 million 2029 convertible notes during the July–September 2026 window and its impact on share dilution.
- Technology Platform Client Concentration: Verify the trajectory of the Technology Platform segment following the loss of the large client in 2025 and the integration of the Peach Finance acquisition.
- Stablecoin Regulatory Status: Track regulatory developments regarding SoFiUSD, specifically requirements to migrate the stablecoin to a separately licensed entity under the GENIUS Act.
- Loan Portfolio Quality: Review the annualized charge-off rates (Personal: 2.62%; Student: 0.61%) and the allowance for credit losses ratio (4.29%) to assess credit risk trends.
- Capital Ratios: Confirm that SoFi Bank and SoFi Technologies maintain "well-capitalized" status (Total Risk-Based Capital ratios of 15.3% and 18.8%, respectively) to ensure dividend and expansion flexibility.