SoFi Technologies reported strong results for the second quarter of 2024. The fintech company added more than 643,000 new members, bringing its total member count to nearly 8.8 million. This represents a 41% increase compared to the same period last year.
CEO Anthony Noto expressed confidence in the company’s performance despite the challenging interest rate environment. “Despite the rate environment and our conservative stance in lending, we drove sustained strong results in the quarter and are ready to move quickly once things improve,” he said. SoFi’s Lending segment saw adjusted net revenue grow 5% year-over-year to $339.1 million.
Net interest income within this segment rose 20%, driven by higher loan balances and yields. The company’s overall adjusted net revenue for Q2 2024 was around $597 million, a 20% increase from the previous year. This surpassed the consensus estimate of $565 million.
SoFi also raised its full-year 2024 adjusted net revenue guidance range.
SoFi’s Q2 growth surpasses expectations
The company now projects revenue of $2.425 to $2.465 billion, from its previous outlook of $2.39 to $2.43 billion.
This beats Wall Street’s breakeven forecast. Regarding profitability, SoFi’s net income flipped from a $47.549 million loss in the year-earlier quarter to an income of $17.404 million in Q2 2024. Despite these positive results, SOFI stock wavered slightly, going slightly green and then slightly red.
Analysts have a mixed view on the stock, with a Hold consensus rating based on four Buys, nine Holds, and three Sells. The average price target is $8.15, implying an 11.2% upside potential. Some investors, like Keith Speights of The Motley Fool, have recently sold their SoFi stock.
Speights cited slowing revenue growth and rising net charge-off ratios for personal loans as reasons for his decision. As SoFi reports its Q2 earnings today, investors and analysts will closely watch to see if the company can maintain its growth trajectory and improve its credit quality. The results could potentially impact the stock’s performance and analyst ratings in the near term.
