SoFi Technologies Inc. reported better-than-expected results for its June quarter on Tuesday. Origination numbers rose across all of the company’s financial technology products.
“Promising signs of life in home loan originations, which were the highest since 2021,” said Dan Dolev, an analyst at Mizuho. He also said that personal loan defaults went down for the first time since the first quarter of 2022.
SoFi stock was up as much as 8.5% early Tuesday, but it has since lost some of its gains and is now only up about 1%.
The neobanking business made $17.4 million, or 1 cent per share, in the second quarter. This is compared to a loss of $47.5 million, or 6 cents per share, in the same time last year. FactSet kept track of analysts who thought the company would break even per share.
It also said it had adjusted earnings of $137.9 million before interest, taxes, depreciation, and amortization. Analysts had expected the number to be $121 million.
The amount of money made went up from $498 million the year before to $599 million. The analysts that FactSet kept an eye on were hoping for $574 million in GAAP sales.
By the end of the second quarter, the company had almost 8.8 million members, up from more than 643,000 at the beginning of the quarter.
SoFi’s lending products grew by 19%, and the lending section made $340.7 million in GAAP revenue, which is 3% more than the previous year.
The number of personal loans originated went up by 12% during the quarter. The company saw growth of 86% in the number of school loans and 71% in the number of home loans it originated. Both of these are smaller businesses than personal lending.
SoFi’s technology division, which helps other businesses with their banking technology, saw a 9% rise in sales, bringing in $95.4 million.
They expect SoFi to make between $625 million and $645 million in adjusted net sales and between $160 million and $165 million in adjusted Ebitda in the third quarter. The amounts that analysts were looking for were $611 million and $161 million.
