In a first on CNBC interview, SoFi (SOFI) CEO Anthony Noto discussed the company’s record-breaking performance in Q4 of 2024, highlighting a year-over-year revenue increase of 25% and a quarterly growth of over 30%, alongside strong margin expansion and member growth. Noto emphasized that SoFi’s focus on durable growth and innovation has led to the best business conditions yet, with expectations for even better performance in 2025. Despite market reactions to slightly lower than expected EPS due to long-term investment in business growth, Noto confirmed SoFi’s commitment to maintaining a 30% incremental EBITDA margin, similar to 2023, while transitioning from GAAP profitability in 2024 to a more aggressive growth strategy.
Addressing the loan cycle, Noto pointed towards a more favorable lending environment but stressed SoFi’s shift towards a more diversified business model. By the end of 2024, technology platform and financial services revenue made up 47% of total revenue, moving away from being solely a lender to a company with significant fee-based revenue streams. This approach not only reduces risk but also positions fee-based income as the primary growth driver, with a 63% increase in Q4, aiming for this to constitute the majority of future revenue.
On technology partnerships, particularly with big banks, Noto shared that while the tech platform is performing well, growth has been slower than hoped. However, 2026 is set to be a year of accelerated growth with the announcement of three new deals. These include integrating government services for direct express benefits, partnering with a major retail financial company, and launching a white-label financial product with a national hotel chain. Despite the slow decision-making process with large financial institutions, SoFi’s pipeline remains robust, serving consumer brands, B2B sectors, and government services, ensuring multiple avenues for growth without solely relying on big banks.
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