SoFi Technologies Reports Profit in Q4 and Raises 2024 Earnings Guidance

Online lending company, SoFi Technologies, announced its financial results for the fourth quarter, reporting a profit on an adjusted basis. The company’s revenue exceeded Wall Street expectations, leading to a surge in SoFi stock. Additionally, SoFi provided its 2024 earnings guidance, which came in above analysts’ predictions.

During the last quarter of 2023, SoFi achieved an adjusted profit of 2 cents per share amid a 34% increase in revenue, reaching $594.2 million. Analysts had anticipated a break-even quarter, with revenue pegged at $572 million. In the same period the previous year, SoFi incurred a loss of 5 cents per adjusted share.

Looking ahead, SoFi forecasted an adjusted profit range of 7 to 8 cents for 2024, a significant improvement from a loss of 36 cents in 2023. Analysts had projected an adjusted profit of 5 cents for the same period. The positive outlook for 2024 earnings contributed to a 16% surge in SoFi stock, which traded at $8.84 during early trading on the New York Stock Exchange.

Headquartered in San Francisco, SoFi Technologies offers a variety of loans, including college student loans, home loans, and personal loans. The company also holds a banking license.

SoFi stock, with a Relative Strength Rating of 64 out of a possible 99, had experienced a decline of 23% in 2024. However, it has seen a 28% increase over the past 52 weeks, according to data from FactSet.

In previous years, SoFi shares underperformed due to reduced revenue from federal student loan refinancing. Notably, the Biden administration has introduced debt relief initiatives for student borrowers. However, political changes could potentially impact these loan forgiveness and repayment programs if Republicans gain control of Congress in 2024.