AI Takeaway
SoFi Technologies reported Q1 2026 net income of $166.7M (+134.4% YoY) driven by strong balance sheet growth, though revenue declined 7.7% and operating cash flow turned sharply negative at -$2.31B.
Revenue
$129.5M
-7.75% YoY
EPS (Basic)
$0.13
++116.67% YoY
Filed · Source: SEC EDGAR 10-Q filing
Net income jumped 134.4% YoY to $166.7M while revenue fell 7.7% to $129.5M, suggesting significant non-operating or one-time gains contributed to profitability, as the net margin reached an unusually high 128.7%.
Source: Source: 10-Q Income Statement
Total assets grew 42.2% YoY to $53.7B, with cash and equivalents surging 63.1% to $3.4B, reflecting aggressive loan origination and deposit growth consistent with SoFi's banking strategy.
Source: Source: 10-Q Balance Sheet
Cost of revenue rose 26.3% YoY to $171.1M, exceeding total reported revenue of $129.5M, and R&D expenses climbed 20.1% to $187.7M, indicating significant investment in product development and technology infrastructure.
Source: Source: 10-Q Income Statement
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Upgrade to unlockOperating cash flow turned deeply negative at -$2.31B in Q1 2026, a dramatic reversal from +$21.5M in Q1 2025. This reflects heavy capital deployment into loans and assets, which could strain liquidity if financing conditions tighten.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockReported EPS of $0.12 versus the $0.12 analyst consensus — a -1.2% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $129.5M | $140.38M | -7.75% |
Cost of Revenue | $171.12M | $135.52M | +26.27% |
Net Income | $166.73M | $71.12M | +134.45% |
EPS (Basic) | $0.13 | $0.06 | +116.67% |
EPS (Diluted) | $0.12 | $0.06 | +100.00% |
R&D Expense | $187.68M | $156.21M | +20.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $53.7B | $37.75B | +42.25% |
Total Liabilities | $42.89B | $31.07B | +38.03% |
Cash & Equivalents | $3.4B | $2.09B | +63.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-2.31B | $21.5M | -10866.41% |
Investing Cash Flow | $-2.39B | $-1.44B | -66.25% |
Financing Cash Flow | $3.11B | $1.43B | +118.45% |
D&A | $67.58M | $55.28M | +22.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 128.7% | — | — |
ROA | 0.3% | — | — |
SoFi reported Q1 2026 net income of $166.7M, a 134.4% increase YoY, with basic EPS of $0.13 versus $0.06 in Q1 2025. Whether this beat Wall Street consensus estimates would depend on analyst forecasts not included in this filing, but the net income result was notably strong.
The headline takeaway is a dramatic surge in net income to $166.7M (+134.4% YoY) despite a 7.7% revenue decline to $129.5M, suggesting significant non-operating income contributions. Total assets expanded 42.2% to $53.7B, but operating cash flow turned sharply negative at -$2.31B, raising questions about cash generation quality.
SoFi's reported revenue fell 7.7% YoY to $129.5M in Q1 2026, though the company's total assets grew 42.2% to $53.7B over the same period. The divergence likely reflects how SoFi classifies net interest income and fee income versus gross revenue, and may also reflect changes in loan sale activity or product mix.
Based on the financial data, key risks include deeply negative operating cash flow of -$2.31B, cost of revenue exceeding reported revenue at $171.1M versus $129.5M, and heavy reliance on $3.11B in financing activities to fund operations. The sustainability of the 128.7% net margin is also a concern as it likely reflects non-recurring items.
SoFi's balance sheet expanded significantly with $53.7B in total assets and $3.4B in cash, but the company carries $42.9B in liabilities implying a debt-to-equity ratio of roughly 4x. While net income was strong at $166.7M, the negative operating cash flow of -$2.31B and costs exceeding revenue suggest the company remains in a high-investment growth phase with earnings quality that warrants close monitoring.