SoFi Posts Record Revenue as Rising Costs Curb Profit

SoFi is a U.S. digital financial-services company offering student and personal loans, deposits and investment products. Lending remains central to its growth, making credit demand, funding costs and borrower performance important drivers of earnings. The latest results matter because they test whether the fintech can convert rapid revenue expansion into sustained profitability as the Federal Reserve’s interest-rate path continues to shape refinancing activity and consumer borrowing.

SoFi reported record quarterly revenue, up 40% from a year earlier, as its core lending operations, including student loans, drove growth. However, operating expenses surged 30% as the company invested in product expansion and increased provisions for credit losses, offsetting much of the revenue gain and restraining overall profit. SoFi kept its full-year profit outlook unchanged while monitoring future Federal Reserve rate decisions and their potential effect on loan demand and credit conditions.