October 27, 2026
Record revenue, raised guidance, and 17 million members. The market still hasn’t caught up.
Why This Stock Now
SoFi Technologies (SOFI) reported Q3 2026 earnings this morning and the numbers were not close. Revenue hit $1.4 billion, up 44% year over year, beating the Wall Street estimate of $1.25 billion by more than $140 million. GAAP net income reached $241 million. Adjusted EBITDA came in at a record $470 million, a 70% increase from the same quarter last year. The stock surged more than 15% at the open. And yet by almost any reasonable measure, shares remain well below where the fundamentals suggest they should be.
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The Business
SoFi is a digital financial services company with a national bank charter, which matters more than most people realize. It offers personal loans, home loans, student loan refinancing, credit cards, brokerage accounts, and high-yield savings products, all through a single mobile app. The bank charter gives SoFi access to low-cost deposit funding that pure fintech competitors cannot match, and it is showing up in the margins.
The member count crossed 17.1 million in Q3, up 35% year over year, with a record 1.2 million new members added in the quarter alone. Total products on the platform grew 44% to 26.7 million. Products per member is a number worth watching: it ticked up to 1.56 from 1.47 a year ago, a sign that existing members are deepening their relationship with the platform rather than treating it as a one-product account.
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Why Wall Street Is Paying Attention
This quarter had operating leverage that is hard to argue with. Adjusted revenue grew 44%, but adjusted EBITDA grew 70% and adjusted net income grew 74%. The lending segment drove much of it: net interest income in that division rose 57% year over year, and loan origination fees jumped 158%. Net interest margin expanded 16 basis points sequentially to 6.14%, while the personal loan charge-off rate fell roughly 80 basis points year over year to 3.4%. Credit quality improved as revenue accelerated. That combination does not show up often.
Management raised full-year 2026 guidance to $5.04 billion in adjusted revenue, implying 40% annual growth, up from the prior range of $4.75 to $4.85 billion. For 2027, the company issued preliminary guidance of $6.4 billion in adjusted revenue with $2.24 billion in adjusted EBITDA. Those are not modest targets for a company the market still prices like a regional bank.
What’s Driving the Opportunity
The valuation gap is the opportunity. The stock had fallen roughly 46% through mid-October before today’s move, even as SoFi posted record loan originations, deposits, and member growth in prior quarters. Fee-based revenue, which carries better margins and less credit sensitivity than lending, grew to 42% of total revenue in Q3, up from 39% just one quarter earlier. That mix shift matters: each percentage point of fee revenue reduces the exposure to the rate cycle that has kept a ceiling on the stock.
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What Could Go Wrong
The personal loan book is the single largest concentration risk. SoFi carries a significant portion of its loans at fair value rather than amortized cost, which means a deterioration in credit or a rise in unemployment could compress marks on the portfolio quickly. The 10-year Treasury yield sits near 4.99% today, a level that tightens spreads on new originations and raises deposit competition across the industry.
The Technology Platform segment, which runs financial infrastructure for other institutions under the Galileo brand, declined 24% year over year due to a large client transition. Excluding that client, the segment grew 18%, but it is a reminder that not every division is firing on all cylinders. The market has punished SoFi before for good headline numbers that masked weakness underneath.
The Bottom Line
SoFi delivered its twentieth consecutive quarter above the Rule of 40, scoring a 79 this quarter on 44% revenue growth and a 34% EBITDA margin. The credit book is clean, the deposit base is growing, and management just raised guidance for the second time this year while issuing a preliminary 2027 outlook that implies another year of 40%-plus revenue growth. The stock is up sharply today. It is still well below where those numbers say it should trade.
