“2024 will be a transitional year,” CEO Anthony J. Noto said.
by SARA KHAIRI
SoFi reported its fourth quarter 2023 results this week. Net income came in at $47.9 million, while revenue grew34% from the prior-year quarter to a record $594.25 million. Breaking through a significant milestone, SoFi turned a profit in the final quarter of 2023, which has been awaited for quite some time.
Why wasn’t it profitableearlier?
Despite SoFi’s delivery of strong quarterly earnings in the past year, analysts continued to harbor concerns regarding the company’s future path and its prospects for profitability since itssecond-quarter financial resultsof 2023.
As of July 2023, SoFi Bank offered an APY of up to 4.40%, which has since increased to 4.60%, without any account fees. Additionally, customers qualifying for direct deposits could enjoy a bonus of as much as$250, which has now increased to $300. During the same period, the federal funds rate experienced a shift, touching 5.00% in the early part of the second quarter of 2023, and has since stabilized within the 5.25% to 5.50% range.
While SoFi successfully attracted customers throughout the quarters with enticing high-yield offerings and perks, the backend costs associated with these deposit relationships have been eroding the company’s profit margin.
FAQs
SoFi delivered as promised, attaining profitability in the last quarter of 2023. The company's boosted profitability is attributed to growth in Lending, Technology Platform, and Financial Services, offsetting loan expenses.
How much will SoFi make in Q1 2023? ›
SoFi held its earnings call at 8am EDT this morning, disclosing its financial results for the first quarter of 2024. For Q1 2024, SoFi reported net revenue of $645 million, up 37% year over year. The company also recorded net income of $88 million, up from a loss of $34 million in Q1 2023.
Is SoFi profitable yet? ›
“We delivered adjusted EBITDA of $144 million, a 25% margin, representing 91% year-over-year growth. This equates to a 57% incremental adjusted EBITDA margin, with all three segments profitable on a contribution basis.
Is SoFi financially stable? ›
NASDAQ: SOFI
SoFi reported its first GAAP profit as a public company in the 2023 fourth quarter. It followed that up with another one in the first quarter with $0.02 in earnings per share (EPS). Management is guiding for continued positive net income in the second quarter and for the full year.
What is SoFi earnings in 2024? ›
SoFi Technologies (NASDAQ:SOFI) First Quarter 2024 Results
Revenue: US$637.8m (up 38% from 1Q 2023). Net income: US$78.0m (up from US$44.4m loss in 1Q 2023). Profit margin: 12% (up from net loss in 1Q 2023).
What is the stock price of SoFi in 2024? ›
Chart
| Stock Date | Stock Price |
|---|
| June 21, 2024 | $6.32 |
| June 20, 2024 | $6.32 |
| June 18, 2024 | $6.42 |
| June 17, 2024 | $6.46 |
97 more rowsAccording to the latest long-term forecast, SoFi price will hit $7 by the end of 2024 and then $9 by the end of 2025. SoFi will rise to $10 within the year of 2026, $12 in 2028, $15 in 2029, $17 in 2031 and $20 in 2035.
Who owns most of SoFi? ›
What percentage of SoFi Technologies (SOFI) stock is held by retail investors? According to the latest TipRanks data, approximately 45.82% of SoFi Technologies (SOFI) stock is held by retail investors. Who owns the most shares of SoFi Technologies (SOFI)? Vanguard owns the most shares of SoFi Technologies (SOFI).
Is SoFi a good stock long term? ›
SOFI Stock Analysis: Why SoFi Technologies Is the Ultimate Long-Term Winner. SoFi Technologies (NASDAQ:SOFI) stock is down 27% in 2024. That's a reversal from 2023, when it gained 116%. Investors are worried that its lending business won't resume growth in 2025.
Is SoFi losing money? ›
SoFi Stock and Consumer Banking
It's certainly growing for SoFi. SoFi revenues last year passed $2.1 billion. They were $1.57 billion in 2022, and under $1 billion the year before that. The problem is that SoFi continues to lose money, because SoFi wants to be much more than a consumer bank.
Both deposit accounts are insured by the Federal Deposit Insurance Corp. (FDIC) up to the legal limit of $250,000 per depositor and account ownership category. SoFi also offers up to $2 million in FDIC insurance for customers enrolled in its SoFi Insured Deposit Program.
What is the downside of SoFi? ›
Though the SoFi Checking and Savings account offers numerous advantages, there are some disadvantages to consider, such as foreign transaction fees, limited overdraft protection and a lack of bank branches. No bank branches: SoFi is an online bank with no branch access.
Is my money safe at SoFi? ›
SoFi takes your security very seriously. Upon depositing funds into your SoFi checking and, or savings accounts (including vaults), the balance is FDIC insured up to $250,000 per account holder across all deposit accounts. Joint accounts will be insured up to $500,000.
Is SoFi in debt? ›
SoFi Technologies has a total shareholder equity of $6.1B and total debt of $2.9B, which brings its debt-to-equity ratio to 47.2%.
Is SoFi expected to beat earnings? ›
SOFI Earnings Forecast
Next quarter's earnings estimate for SOFI is <$0.01 with a range of -$0.01 to $0.02. The previous quarter's EPS was $0.02. SOFI beat its EPS estimate 75.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 61.09% of the time in the same period.
What is the outlook for SoFi? ›
Stock Price Forecast
The 18 analysts with 12-month price forecasts for SoFi Technologies stock have an average target of 9.11, with a low estimate of 3.00 and a high estimate of 14. The average target predicts an increase of 41.02% from the current stock price of 6.46. * Price targets were last updated on Apr 30, 2024.
What is the future price of SoFi? ›
SOFI Stock 12 Month Forecast
Based on 16 Wall Street analysts offering 12 month price targets for SoFi Technologies in the last 3 months. The average price target is $8.61 with a high forecast of $12.00 and a low forecast of $4.00. The average price target represents a 31.65% change from the last price of $6.54.
What will SoFi stock price be in 2025? ›
SoFi Technologies, Inc. stock forecast for 2025: $ 7.37 (14.07%) SoFi Technologies, Inc. stock prediction for 2030: $ 14.23 (120.31%)
What stock will make the most money in 2023? ›
Top-Performing Stocks of 2023
- Coinbase.
- Nvidia.
- DraftKings DKNG.
- Meta Platforms META.
- Palantir Technologies PLTR.
SoFi Technologies (NASDAQ:SOFI) has a forward price-to-earnings ratio of 79.13. The price/earnings-to-growth ratio is 1.5. What is SoFi Technologies's EPS forecast for next year? SoFi Technologies's earnings are expected to grow from $0.08 per share to $0.24 per share in the next year, which is a 200.00% increase.
