SoFi made a name for itself through student loans. Now that it has SoFi Bank, its net interest income will start to rise, becoming a more significant part of its business.Ĭurrently generating revenue from six silos: SoFi Invest, SoFi Money, personal loans, home loans, student loans, and credit cards, I can see it adding more revenue streams in the future through its bank charter. Like Costco (NASDAQ: COST), the more members SoFi has, the better. All three segments experienced a big three-year increase in noninterest income. Over the past three years, its noninterest income increased by 549.9% to $732.6 million (74.4% of total net revenue) from $112.8 million (25.5%) in 2019. Its total members over the past three years have grown by 254.4% to 3.46 million in 2021 from less than a million in 2019. It has had six consecutive quarters of positive adjusted EBITDA. That’s a three-year improvement of 120.2%. In terms of profitability, it’s gone from an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $149.2 million in 2019 to a profit of $30.2 million in 2021. Its technology platform barely existed three years ago, while financial services contributed just $3.9 million in net revenue.
The segments have three-year revenue growth of 72.4%, 24,414%, and 1,389.7%, respectively. It has three reportable segments: Lending, Technology Platform, and Financial Services. 77 of the company’s 2021 10-K gives you a good idea of how much SoFi’s business has grown over the past three years. Yes, it’s a headwind, but it’s not going to make a difference in the long run. 8 of its Q4 2021 report, SoFi’s guidance suggests a $32.5 million (midpoint of guidance) hit to revenue in the first quarter of 2022, along with a $22.5 million drop in contribution profit. The company managed to grow originations by 51% in the fourth quarter despite the Biden administration extending the pause until May 2. For all of fiscal 2021, it originated $4.29 billion in student loans, down 13% over 2020. 31, 2021, it originated $1.46 billion in student loans, 51% higher than in Q4 2020. Several points need mentioning when it comes to student debt. The company reported Q4 2021 results at the beginning of March. So, 1.1% of its loans aren’t getting paid on time at the moment, compared to 15% in March 2020.
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