SoFi (SOFI) Q2 FY26 earnings call: guidance and Q&A

SoFi's "Everything App" strategy is demonstrating significant success, with products per member accelerating over the last two quarters. The company reported a record 1.1 million new members and 2.2 million new products in Q2 FY26, bringing totals to 15.8 million members (+35% YoY) and 24.4 million products (+42% YoY). Cross-buy, where existing members adopt new products, reached 51% of new products, a substantial increase from 35% in Q2 FY25, indicating a strong and compounding financial services productivity loop.

The relaunched SoFi Plus, a premium paid subscription offering, exceeded expectations by surpassing 200,000 paid subscribers in its first quarter, generating over $24 million in annualized revenue. This product is effectively driving cross-buy, with 85% of new Plus members being existing SoFi users, and 25% of those adding another product, primarily SoFi Invest. The newly launched SoFi Coach, an AI-powered financial guidance tool, has facilitated nearly 0.5 million conversations with over 90% positive feedback, leveraging SoFi Relay's extensive financial data to provide personalized insights.

SoFi's Loan Platform Business is diversifying beyond personal loans, now including SMB loans and home equity loans. New agreements include up to $1 billion with Sixth Street for personal loans and a 3-year, $3 billion agreement with Base Point Capital for SMB loans. This expansion aims to grow capital-light fee-based revenue and serve a broader range of members, with SMB loan economics expected to be similar or slightly better than current personal loan offerings, and home equity partnerships targeting $100M-$200M per month.

SoFi Technology Solutions (STS) continues to be a strategic asset. The acquisition of Peach Finance strengthens STS's offering for financial institutions and will enable in-house credit card processing for SoFi. STS also developed the cloud-native banking core for the recently launched SoFi Big Business Banking, which is now serving commercial clients and processing transactions on the SoFi Exchange network. Additionally, SoFi Money is being onboarded to this new modern banking core, which will soon be available to other banks.

Credit performance remains robust and in line with expectations. The estimated all-in annualized net charge-off rate for personal loans was 3.7% (excluding delinquent loan sales), a 70 basis point decrease QoQ. Including delinquent loan sales, the rate was 2.62%, down 41 basis points QoQ and 21 basis points YoY. SoFi maintains a strong total capital ratio of 18.8%, well above the 10.5% regulatory minimum, and plans to efficiently deploy excess capital to normalize its risk-based capital ratio to the low to mid-teens over the medium term^⏳.

SoFi achieved an all-time high unaided brand awareness of 10.4%, an increase of 190 basis points YoY, supported by strategic partnerships like the multiyear agreement with Notre Dame Athletics. Product innovations include Composer by SoFi, an AI tool for investing, and the launch of the SoFi Social 50 income ETF. The company also introduced new small business loan and home equity line of credit offerings, expanding its product ecosystem to meet diverse member needs.