Earnings Call Transcript - SOFI Q3 2025

Operator, Operator

Good morning or good afternoon. My name is Adam, and I will be your conference operator today. At this time, I would like to welcome everyone to the SoFi Technologies Q3 2025 Earnings Conference Call. You may begin your conference.

Unknown Executive, Executive

Thank you, and good morning. Welcome to SoFi's Third Quarter 2025 Earnings Conference Call. Joining me today to talk about our results and recent events are Anthony Noto, CEO; and Chris Lapointe, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. Unless otherwise stated, we'll be referring to adjusted results for the third quarter of 2025 versus the third quarter of 2024. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, our competitive advantage and strategy, macroeconomic conditions and outlook, future products and services and future business and financial performance. Our GAAP consolidated income statement and all reconciliations can be found in today's earnings release and the subsequent 10-Q filing, which will be made available next month. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our subsequent filings made with the SEC, including our upcoming Form 10-Q. Any forward-looking statements that we may make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events. And now I'd like to turn the call over to Anthony.

Anthony Noto, CEO

Thank you, and good morning, everyone. We had an excellent third quarter. Our one-stop-shop strategy is performing effectively as we continue to deliver outstanding financial results while investing in our business for sustainable growth and strong long-term returns. Our emphasis on product innovation and brand development has reached new heights. There's more happening at SoFi today than at any other time during my eight years with the company. We are intensifying our investments in our existing businesses and exploring new markets, including crypto, blockchain, AI, and SoFi Pay, which offers fiat and crypto banking services among other initiatives. I'll cover these efforts shortly, but first, let’s review our key results for the quarter. In Q3, we added a record 905,000 new members, raising our total membership by 35% year-over-year to 12.6 million. We also achieved a record 1.4 million new products, accelerating growth to 36% year-over-year, totaling over 18.6 million products. Our cross-buy of products reached its highest level since 2022, with 40% of new products opened by existing SoFi members. This rate of cross-buy has improved over the last four quarters, reflecting the success of our strategy. Our strong member and product growth fueled revenue growth in the third quarter, with adjusted net revenue hitting a record $950 million, up 38% year-over-year. Our Financial Services and Technology Platform segments generated a combined revenue of $534 million, representing a 57% increase year-over-year and now constituting 56% of total revenue. This is the first time these segments have surpassed $0.5 billion in quarterly revenue. In our Lending segment, adjusted net revenue grew 23% year-over-year to $481 million, driven by solid originations totaling $6.6 billion, also up 23% from last year. When including a robust $3.4 billion in originations from our loan platform, total originations reached a record $9.9 billion this quarter, an increase of $1.2 billion from our previous record. I am also pleased to report that total fee-based revenue across our business reached a quarterly record of $409 million, rising 50% from the previous year, largely due to strong performance in our loan platform, origination fees, referral fees, interchange revenue, and brokerage fee revenue. We are now generating over $1.6 billion in annualized fee-based revenue, illustrating our strategic shift toward more capital-light revenue sources. In addition to delivering durable growth, we achieved strong profitability. In the third quarter, adjusted EBITDA reached a record $277 million, nearly 50% higher year-over-year, with an adjusted EBITDA margin of 29%. Our incremental EBITDA margin was 35%, showcasing our ability to reinvest in the business while maintaining profitability. Net income for the quarter was $139 million with a margin of 14%, translating to earnings per share of $0.11. Lastly, our tangible book value at the end of the quarter was $7.2 billion, benefiting from a successful capital raise during the quarter. Over the last two years, we have more than doubled our tangible book value. Our diversified business model is designed to deliver a strong combination of growth and returns. Assessing our performance through the Rule of 40 metric, which combines revenue growth with EBITDA margin, we've surpassed the benchmark every quarter since becoming public, totaling 17 consecutive quarters. Through this period, our average Rule of 40 score has been 58, placing us among the top performers in fintech and broader technology sectors, and we reached 67% in this quarter. Despite these impressive results, I recognize that we are only at the beginning. The potential markets for each of our products are vast in the United States and also internationally. From 2026 onward, we expect to benefit from both technology super cycles in AI and blockchain, where most other industries benefit from just one. With nearly 13 million members, robust technology capabilities, and an annualized revenue of $3.8 billion against a $45 billion balance sheet, we have an exceptional foundation to build on. Given these dynamics, I am more optimistic about our future than ever. This is why we are further ramping up our investments to enhance our existing products by offering the best speed, selection, and experience, while also developing new offerings to assist our members in managing their finances and strengthening our trusted brand. Now, let’s briefly discuss our branding efforts, which are crucial for attracting new SoFi members and creating positive recognition for our entire suite of services. In the third quarter, we launched an exciting partnership with NFL's MVP, Josh Allen, to promote SoFi Plus, our flagship product in financial services. This collaboration has resonated with NFL fans, leading to a 35% increase in unaided brand awareness among that demographic. Alongside our broader marketing initiatives, we reached an all-time high of 9.1% in unaided brand awareness this quarter, up from 8.5% last quarter and more than four times what it was at our public debut. Shifting to product innovation, last quarter, I highlighted the ongoing technology super cycles in crypto, blockchain, and AI, which can fundamentally reshape financial services. We have acted swiftly to seize these opportunities. I am thrilled to announce that this week, we launched our first payment product utilizing blockchain technology, SoFi Pay, which enables quick, seamless, low-cost, and safe international transactions. SoFi Pay allows members to send money in local fiat currency abroad via a layer 2 blockchain network, automating the process in the SoFi app with significantly faster speeds and lower costs than traditional services. Members can initially send money to Mexico, with plans for expansion to Europe and South America soon. Over time, we will integrate the SoFi USD stablecoin into SoFi Pay, which we aim to launch in 2026. We also plan to make the SoFi Pay app available in international markets for foreign citizens sending money to the U.S. and other regions. This adds to our comprehensive money movement capabilities, allowing members to send money through various methods, including person-to-person payments via phone number or email, as well as Zelle, ACH, self-serve wires, and now international payments through SoFi Pay. Additionally, I am excited to announce that we will soon be relaunching the feature to buy, sell, and hold crypto assets, granting members access to numerous tokens directly in the SoFi app. We aim to provide not only the most extensive selection but also the best speed and convenience. Members can instantly purchase cryptocurrencies using funds from their FDIC-insured SoFi Money account within the integrated SoFi app. They will also be able to transfer crypto assets to SoFi and enjoy the associated benefits from our extensive range of products integrated with SoFi North American bank. Recognizing that many of our members may be new to crypto investing, we will offer comprehensive content to assist them in understanding crypto investing and ensuring their peace of mind through our regulated banking framework. This represents just the beginning of our ambitious product roadmap in crypto and blockchain that will unfold through 2026. I am very enthusiastic about our roadmap and the numerous applications expected for our planned stablecoin, SoFi USD, alongside our ability to uniquely position it given our banking license, technological capabilities, and product offerings. Turning to AI, we are actively testing and implementing a range of AI applications across our business. AI technology has played a critical role in streamlining operations to better serve our members. This involves leveraging AI for enhanced engagement and equipping our member service teams with AI tools to address member inquiries more swiftly. AI is also now directly supporting members through our AI chat tool, which helps resolve questions efficiently, positively impacting member satisfaction. Currently integrated with our money and card products, this tool will be extended throughout the SoFi platform this quarter. We have also introduced the AI-driven Cash Coach for qualifying members. It offers personalized financial suggestions by assessing their cash utilization across both SoFi and other accounts. For instance, it may recommend moving cash from accounts offering low interest to our SoFi accounts that earn a higher rate, or advise on paying down high-interest credit card debt. Cash Coach is only the start; next year, we plan to introduce a more comprehensive SoFi Coach that will provide insights across all financial activities, empowering members to manage their spending and investments effectively. Next, let's consider product innovation within our segments, beginning with Financial Services and the loan platform business. This has transformed SoFi, diversifying our lending in a low-risk, capital-light manner. During the third quarter, we originated $3.4 billion of loans through our loan platform, a significant increase from the previous quarter. Now, after just one year, this business is running at over $13 billion in originations and generating $660 million in high-margin, high-return fee-based revenue annually. We continue to capture higher near-term volume outside our traditional credit profile, effectively monetizing a significant portion of loan applications we were unable to meet previously. Looking ahead, we see substantial opportunity in this space as partner demand escalates. As concerns in private credit markets arise, we have observed our LPB partners increasing their engagement with us, reflecting a search for quality and resilience in changing economic conditions. In investing, earlier this month, we launched Level 1 Options, a highly requested feature from our members, giving them access to build more diverse portfolios. We provide educational resources to explain options usage and the associated risks while promoting responsible investment strategies. We've also expanded our investment offerings this quarter by adding access to IPOs like StubHub, Klarna, and Figma and introduced the SoFi Agentic AI ETF. We have enhanced our invest products to be more intuitive and engaging, including introducing instant 24/7 transfers between invest and money, and launching an improved rollover tracker to give members better control over their 401(k) rollovers. Now, looking at SoFi Money, which has been a crucial part of our financial services productivity loop, we have 6.3 million products and $33 billion in deposits just three years after obtaining our banking license. Our attractive APY is a compelling reason for members to choose us as their primary financial institution, but they also value our top-notch products and ongoing innovation. We will soon launch the SoFi Smart Card, a new card that combines the best features to assist members with spending, saving, and paying better. This will be part of SoFi Plus and will act as a platform for continuous innovation, offering 5% back on food, the highest interest rates on deposits, credit builder features, and more. Finally, regarding our Lending segment, which has been a core strength of SoFi since its inception, we've made significant strides in member acquisition and underwriting. We focus on high prime and super prime borrowers with solid cash flow and credit scores. Our personal loan borrower average FICO score is 745 while our student loan borrower's score is 773. We enhance our assessments beyond just credit scores through proven underwriting techniques. This approach continues to yield strong credit performance; our net charge-off rates improved in the third quarter despite signs of stress in the wider market. In the Lending segment, we have developed impactful products that empower our members financially. For instance, our personal loan product allows members to refinance high-interest credit card debt from other institutions, saving them money. We've recently made this offering more appealing by introducing an interest-only period. Similarly, in student lending, we have become the leading provider for refinancing student debt at competitive rates, significantly benefiting our members. Our recent feature of a gradual step-up in payments helps ease members' transitions to a more manageable repayment strategy. In home lending, we have seen excellent results. Amidst a high-rate environment, we launched a home equity loan product to help members utilize the equity in their homes. This quarter, just a year after the launch, we facilitated over $350 million in home equity loans, setting a record for total home lending at $945 million. We anticipate Q4 might be the first quarter where our home loan revenue surpasses that of our student loan refinancing, which was our primary offering before COVID. As rates lower, we're poised to further enhance our home lending business for 2026, having fortified our operations and improved our offerings for an estimated 3 million members potentially looking to refinance or buy homes. Lastly, regarding our Tech Platform segment, this has been essential for our innovative capabilities across SoFi. Recently, we announced a partnership with Southwest Airlines to provide their Rapid Rewards debit card, which combines the ease of debit payments with points on regular purchases. We have also signed two major consumer brands, our largest partners yet, details of which will be shared soon. These partnerships reflect the strong demand for our technology to deliver innovative financial products at scale for recognized global brands. Overall, we experienced a remarkable third quarter at SoFi. We are charged with excitement as we conclude the year and look forward to 2026.

Chris Lapointe, CFO

Thank you, Anthony. We've delivered another strong quarter as we continue to drive durable growth and strong returns on the way to delivering record revenue in our eighth consecutive profitable quarter. For the quarter, revenue grew 38% year-over-year to a record $950 million. Adjusted EBITDA was also a record at $277 million and a margin of 29%. Net income was $139 million at a margin of 14% and earnings per share was $0.11. Similar to the last two quarters, this included a small benefit related to a lower tax rate. An important driver of our growth was the increased contribution from capital-light nonlending as well as fee-based revenue sources. Our nonlending businesses generated $534 million of revenue, up 57% year-over-year, and we also generated record fee-based revenue across all segments of $409 million, up 50% year-over-year. Turning now to our segment performance. In terms of financial services, for the third quarter, net revenue was $420 million, up 76% year-over-year. Contribution profit was $226 million, up nearly 2.3x from last year. Contribution margin was 54%, up from 42% last year. Net interest income for the segment was $204 million, up 32% year-over-year, which was primarily driven by growth in member deposits. Noninterest income grew nearly 2.6x to $216 million for the quarter, which equates to over $860 million in high-quality fee-based income on an annualized basis. Importantly, improved monetization continues its strong contribution to revenue growth. Financial services revenue per product surpassed $100 for the first time, reaching a record $104 in the third quarter. That's up over 28% year-over-year, and we see continued upside as newer products mature. In Q3, our loan platform business generated $168 million in adjusted net revenue, up 29% from just last quarter. Of this, $165 million was driven by the $3.4 billion of personal loans originated on behalf of third parties as well as referrals. Additionally, LPB generated $3 million from servicing cash flows, which is recorded in our lending segment. The growth opportunity for this business continues to be very strong. Beyond our LPB revenue, we continue to see healthy growth in interchange, up 55% year-over-year, driven by close to $20 billion in total annualized spend in the quarter across money and credit card. Shifting to our tech platform. For the third quarter, we delivered net revenue of $115 million, up 12% year-over-year. Contribution profit was $32 million at a contribution margin of 28%. Revenue growth was driven by continued monetization of existing clients, along with new deals signed in new client segments. Turning now to our Lending segment. For the third quarter, adjusted net revenue was $481 million, up 23% from the same period last year. Contribution profit was $262 million with a 54% contribution margin. These strong results were primarily driven by growth in net interest income, which increased 35% year-over-year to $428 million. During the quarter, we had record total loan originations of $9.9 billion, up 57% year-over-year. Personal loan originations were a record at $7.5 billion, of which $3.4 billion was originated on behalf of third parties through LPB. In total, personal loan originations were up 53% year-over-year. Student loan originations were $1.5 billion, up 58% from the same period last year. And home loan originations were a record $945 million, a year-over-year increase of nearly 2x. Capital markets activity was very strong in the third quarter. We sold and transferred through our loan platform business, a record $4.6 billion of personal, home and student loans. In terms of personal loans, we closed $175 million of sales in the whole loan form at a blended execution of 106.4%. All deals had similar structures to other recent personal loan sales with cash proceeds at or near par, and the majority of the premium consisting of contractual servicing fees that are capitalized. These sales included a small loss share provision that is above our base assumption of losses and immaterial relative to the exposure we would have had otherwise if we held on to the loans. Additionally, we sold $90 million of late-stage delinquent personal loans. By selling these loans, we're able to generate positive incremental value over time versus selling after they charge-off, both from our improved recovery capabilities and by maintaining servicing. In terms of home loan sales, we closed $585 million at a blended execution of 102.9%. And in terms of student loan sales, we closed $377 million at a blended execution of 105.9%. In addition to our loan sales, we executed a $466 million securitization of loans originated through our loan platform business. This channel provides our partners with meaningful liquidity to support their ongoing investment in the loan platform business. The transaction priced at industry-leading cost of funds levels with a weighted average spread of 98 basis points. Turning to credit performance. The health of our consumer remains strong and our credit continues to improve. Our personal loan borrowers have a weighted average income of $157,000 and a weighted average FICO score of 745, while our student loan borrowers also have a weighted average income of $157,000 with a weighted average FICO score of 773. For personal loans, the annualized charge-off rate declined by more than 20 basis points to 2.6% from 2.83% in the prior quarter. Had we not sold any late-stage delinquencies, we estimate that including recoveries between 90 and 120 days delinquent, we would have had an all-in annualized net charge-off rate for personal loans of approximately 4.2% versus 4.5% last quarter. The on-balance sheet 90-day delinquency rate was 43 basis points, consistent with the prior quarter. For student loans, the annualized charge-off rate also declined more than 20 basis points to 69 basis points from 94 basis points in the prior quarter. The on-balance sheet 90-day delinquency rate was 14 basis points, consistent with the prior quarter. The data continues to support our 7% to 8% net cumulative loss assumption for personal loans in line with our underwriting tolerance, although we continue to trend below these levels. Our recent vintages originated from Q4 2022 to Q4 2024 have net cumulative losses of 4.4% with 39% unpaid principal balance remaining. This is well below the 6.08% observed at the same point in time for the 2017 vintage, the last vintage that approached our 7% to 8% tolerance. The gap between the newer cohort curve and the 2017 cohort curve widened by a more favorable 29 basis points after a widening improvement of 19 basis points in Q2. Additionally, looking at our Q1 2020 through Q2 2025 originations, 60% of principal has already been paid down with 6.7% in net cumulative losses. Therefore, for life-of-loan losses on this entire cohort of loans to reach 8%, the charge-off rate on the remaining 40% of unpaid principal would need to be approximately 10%. This would be well above past levels, further underscoring our confidence in achieving loss rates below our 8% tolerance. Turning to our fair value marks and key assumptions. As a reminder, we mark our loans at fair value each quarter, which considers a number of factors, including the weighted average coupon, the constant default rate, the conditional prepayment rate and the discount rate comprised of benchmark rates and spreads. At the end of the third quarter, our personal loans were marked at 105.7%, in line with the prior quarter. This was primarily a function of a lower benchmark rate, which was mostly offset by higher prepayments and a modest change to the weighted average coupon as well as a modest change to the annual default rate, which was driven by loan vintage seasoning, not changes to the individual loan loss assumptions. At the end of the third quarter, our student loans were also marked at 105.7%, down 9 basis points from the prior quarter. This was a function of a modest decrease in the weighted average coupon, partially offset by a lower benchmark rate. Turning to our balance sheet. In July, we raised $1.7 billion of new capital in the form of common equity. This opportunistic raise significantly increased our capital levels and allowed us to reduce our higher cost debt by $1.2 billion, making our balance sheet even stronger and giving us great flexibility to pursue growth opportunities. In the third quarter, including this new capital, total assets grew by $4.2 billion. This was driven by $2.7 billion of loan growth and approximately $1.2 billion of growth in cash, cash equivalents and investment securities. Total company-wide cash at quarter end was $3.7 billion. On the liability side, total deposits grew by $3.4 billion to $32.9 billion primarily driven by growth in member deposits. Net interest margin was 5.84% for the quarter, down 2 basis points sequentially. This included a 7 basis point decrease in average yields as we saw a modest mix shift from personal loans to home and student loans and a 3 basis point increase in cost of funds, which was mostly offset by strong growth in interest-earning assets. We continue to expect healthy net interest margins above 5% for the foreseeable future. In terms of our regulatory capital ratios, we remain very well capitalized. Our total capital ratio of 20.2% at quarter end is well above the regulatory minimum of 10.5% as well as our additional internal stress buffer. Tangible book value grew $1.9 billion sequentially to $7.2 billion, including the benefit from the new capital raised. Intangible book value per share at quarter end is $5.97, up from $4.08 a year ago, a 46% increase. Let me now finish by providing our revised outlook for 2025. As we head into the fourth quarter, for the full year 2025, we now expect to add approximately 3.5 million members, which represents approximately 34% year-over-year growth, above our prior guidance of 3 million members and 30% growth. We now expect adjusted net revenue of approximately $3.54 billion, above our prior guidance of $3.375 billion. This equates to year-over-year growth of approximately 36%, an increase from our prior guide of 30%. We now expect an adjusted EBITDA of approximately $1.035 billion, above our prior guidance of $960 million. This represents a 29% margin. We now expect adjusted net income of approximately $455 million, above our prior guidance of $370 million. And adjusted EPS of approximately $0.37, above our prior guidance of $0.31. This equates to fourth-quarter adjusted EPS of approximately $0.12, which assumes a Q4 tax rate of approximately 10%. We now expect growth in tangible book value of approximately $2.5 billion for the year, above our prior guidance of around $640 million. We've had a great year thus far and look forward to a strong finish. Let's now begin the Q&A.

Operator, Operator

Our first question comes from Dan Dolev at Mizuho.

Dan Dolev, Analyst

Chris, Anthony, amazing job. Very, very proud of you guys. Wanted to know, I mean, the question we're getting from investors for the past month or so is consumer credit. I mean you guys have done incredibly well looking at NCOs coming down. But can you give us an overview of what's going on, maybe there's a FICO sort of differentiated thing here that helps SoFi? Just maybe an overall view of like how the health of the consumer credit across the different FICO trenches would be great. And congrats again.

Anthony Noto, CEO

Sure. Thank you, Dan. The first message is our credit is performing very well. We have very strong performance by our members across each of the products, not just the performance of credit, but the spending that we see in SoFi Money, the engagement that we see in SoFi Invest and general behavior overall. We've been in the lending business for a pretty long period of time. When I joined in 2018, one of our key priorities is focused on quality of our loans over quantity and to make sure that those loans are durable through an economic cycle and through an interest rate cycle and any liquidity dislocations. And so we're constantly making changes to what marketing channels we're in. The trade-up between pricing and credit approvals, the unit economics of a loan, we focus on having a 40% to 50% variable profit margin on our loans and so sometimes we can drive more volume, sometimes we can drive higher margin. But it's a constant data science opportunity for us to perfect our loans. And the strength of the consumer loans performance speaks for itself, it's in the numbers. You can see our net charge-offs declined, i.e., improved versus last quarter. If you go back over the last couple of years, you'll see that we made a lot of credit changes to ensure that performance stayed high quality when we went through a 500 basis point interest increase and now we're seeing rates come down. So we're seeing really strong trends in the channels and great demand from high-quality borrowers. And we feel really confident. If anything changes, we'll make the adjustments accordingly. To remind everyone, we focus on a life loan loss between 7% and 8%, and all indications are that we're below that, as Chris has mentioned in the past.

Chris Lapointe, CFO

And the only other thing I would add to Anthony's point is that we're also seeing really good demand from capital markets partners, which we view as a flight to quality. So all in all, we remain vigilant as always, but our balance sheet is strong with high-quality loans, excess capital and solid liquidity, and our partners are active and looking to expand their relationships with us, and that's a true testament to the credit that we're underwriting.

Operator, Operator

The next question comes from John Hecht from Jefferies.

John Hecht, Analyst

Congratulations on a good quarter. I guess my question is predominantly around the rate environment, decreasing rates if you think about the forward curve. I'm wondering if you guys could talk about how the lower rate environment will affect the volume mix on the lending side? And particularly at what point do you think that could be a pretty big spike in student loan refinance activity? And then second, unrelated is maybe talk about what you guys expect in terms of deposit beta and what that means for NIM over the next few quarters?

Anthony Noto, CEO

Thank you, John. We've said this in the past, our business is diverse, not because we woke up and said we should make our business diverse, but because of our strategy of being a one-stop shop. We've scaled our businesses across the portfolio of products that we offer being a one-stop-shop to a level that in environments, we can drive different businesses based on the characteristics of that environment. When rates were high, we took a specific strategy. As rates are coming down, we're taking an alternative strategy and it's working. If rates stay exactly where they are, I think our business continues to operate incredibly well. I couldn't be more optimistic about our near-term trends and what we'll do in 2026 relative to our prior long-term guidance. So I don't worry about the environment we're in right now. I do worry about things like credit. I do worry about things like heightened inflation. We look at asset flows, et cetera. So it's not like we're not worried about things. We just feel really good about the positive things versus the things that could cause a problem. As rates come down, I think our business only gets better. If we stay with unemployment below 5% to 5.5% and inflation is at 3%, I think we're in a really great environment. I'm not a student of believing inflation should be 2%. I think 3% is perfectly fine. I think we have global stability that will also be important. I think about things that could disrupt us as, one, economic, i.e., unemployment; two, financial liquidity. Rates are coming down, not going up; and then three is the macroeconomic factors that are at our control and exogenous events. As rates go down, our student loan business will benefit meaningfully. Rates have been very high for the last three years. Federal student rates are high, and we can give them a significant savings on a $70,000 balance. So we'll benefit from lower rates in student loan refinancing for sure. The home equity market, the home loan market, the real estate market more broadly, will benefit from lower rates, both in refinancing as well as purchase. As it relates to refinancing, less than 5% of our members that have mortgages have been with us. So if you take everyone that's on our platform that's using SoFi and you look at the number of those people that have home loans or mortgages, only 5% of those with mortgages are with us. It's a huge opportunity for us to market lower cost of a mortgage to them. And we have the technology to know where the rates are, to deliver personalized messages to them, and we've built the back end and operational capabilities to deliver reliable mortgages in a specific period of time. So we feel really great about that. As it relates to SoFi Money, I've said this in the past, I'll say it again, it's starting to show itself now. In a high-rate environment, nonbanks can compete with us on interest rate. Many choose not to because they're trying to make more money with NIM, but it's easy when rates are high, when Fed funds are high. When Fed funds is low, it's going to be really hard for nonbank and nonlending companies to compete with us. Our competitive advantage will come through and show the world that we have the highest lifetime value in a broadly based portfolio of products that allows us to give a superior yield when others are struggling to provide that yield because of the fact that we have both lending and we're an insured deposit institution, and we have a broad-based membership that we can market to efficiently for cross-buy. In the most recent quarter, 40% of our product growth came from cross-buy, that's with our members growing 35%. Chris, would you add anything?

Chris Lapointe, CFO

Yes. The only other thing I would add, John, to your comments on deposit betas and NIM over the next few quarters, we've been really successful in maintaining healthy NIM margins. This last quarter, we were at 5.84%. Maintaining these strong margins has been a function of the loan pricing betas that we have as well as obviously, our cost of funds. What we've demonstrated on the loan pricing beta front is that in rising-rate environments, we've been able to outpace rates and maintain really strong pricing. In down-rate environments, we've been able to maintain solid pricing above where rates have gone. And then from an asset yield perspective, we've been able to maintain strong asset yields and reduce our overall cost of deposits, all while maintaining healthy growth in member deposits last quarter. Historically, we've been at about a 65% to 70% deposit beta. We would expect that to continue going forward.

Operator, Operator

The next question comes from Kyle Joseph from Stephens.

Kyle Joseph, Analyst

Just wanted to get your thoughts on the competitive environment. Obviously, we saw your guidance for membership growth go up, which is obviously a positive. Is that a function of just kind of internal marketing efforts and brand awareness? Or can we step back and think about things potentially getting less competitive out there? I think you talked about capital providers and the flight to quality you're seeing. So I just want to get your commentary there.

Anthony Noto, CEO

It's a function of many factors, first, unaided brand awareness. Our goal is to drive unaided brand awareness higher. It provides productivity across our digital marketing capabilities and performance marketing. And so we talked about the 9.1% unaided brand awareness that we achieved in Q3, that we expect to continue into Q4. We have a number of new product launches that will also contribute, that will not just contribute directly because they're new products but they'll also contribute indirectly after raising awareness that we're a one-stop shop. Specifically, our goal is to launch buy, sell and hold crypto by the end of the year. We'll continue to roll out SoFi Pay to other international markets. And so the second bucket is new products. And then the third, we have a pretty good understanding of what channels to market what product is in and have a good read on customer acquisition costs by channel. And so we're just ensuring that we continue to add more marketing at an efficient rate, focused on profitability and growth, and it's our confidence in being able to do that in a bigger way in Q4 than we did in Q3 in addition to the new product launches that we'll have, and the benefit from brand awareness. So that's driving our confidence. I will tell you, our goal is to continue to move along a linear curve to make sure that we're not falling off that efficient frontier of marketing and brand awareness and spending. But there's a lot of upside from spending at efficient rates if we chose to grow even faster.

Operator, Operator

The next question comes from Andrew Jeffrey from William Blair.

Andrew Jeffrey, Analyst

Anthony, as you see faster growth in the nonpersonal loans business, which I think is really encouraging from a diversification standpoint, does that change your thought on how you fund that growth on balance sheet deposit driven versus the loan platform business? And are there opportunities in the loan platform business for nonpersonal loans? Just trying to think about what the funding mix looks like as the origination mix shifts a little bit?

Anthony Noto, CEO

Sure. There are definitely opportunities in the loan platform business from nonpersonal loans, and Chris and the capital markets team is working on that. Funding off of deposits is definitely an element that drives our durability and our confidence in lending. The dependency on deposits will likely reduce over time and our cost of funds will also likely come down over time based on a bunch of decisions that we make as it relates to how to spend our capital. I do think you'll continue to see us drive revenue streams that are not connected to capital. 56% of our revenue is now coming from our tech platform and financial services business, and that's up pretty meaningfully over time. And you can see the benefit to our profitability line and our ROE and our tangible book value growth related to that. So there's a number of initiatives that we have, that we haven't talked about publicly that will also help as we leverage blockchain technologies in the lending space specifically that will help drive strong diversification of funding for our balance sheet.

Operator, Operator

Next question comes from Kyle Peterson at Needham & Company.

Kyle Peterson, Analyst

Nice results. I wanted to drill down in the loan platform business, in particular. I know there's at least another fintech lender that kind of recently said that at least some of the loan buyers and such on from institutional investors were kind of consolidating purchases to kind of fewer platforms. I guess the strength this quarter, was it broad-based in terms of you guys adding participants on the platform on the funding side? Or was it fairly concentrated with existing partners? Just any color there. And if you guys are seeing anything similar would be really helpful?

Chris Lapointe, CFO

Thanks, Kyle. We experienced growth among both new partners and existing partners. We noticed that several existing partners reached out to us to increase their commitments, not only in Q3 but also looking into Q4. We anticipate that this positive momentum will continue into the last quarter of the year. Additionally, we saw growth with new partners as well as in extended credit. Overall, there was growth across the board.

Operator, Operator

The next question comes from Reggie Smith at JPMorgan.

Reginald Smith, Analyst

Great quarter. I guess I had a follow-up on the loan platform business as well. Is there a way to kind of frame the number of buyers on the platform and kind of what your mixed full quarter capacity looks like? And then also talk about the process, I think you mentioned this a second ago, Chris, about how companies upsize their commitment?

Chris Lapointe, CFO

Kind of out there at the end, Reggie, but I think you asked about the process for how companies upsize their commitments. In terms of your first question about the number of buyers on the platform and what the next quarter's capacity looks like, we aren't going to disclose the number of buyers that we have. We have disclosed a few publicly with Fortress and Blue Owl, but we have a number of partners on the platform. What capacity looks like next quarter? We did $3.4 billion of originations on behalf of others this past quarter in Q3. We expect that to continue to grow heading into Q4. In terms of how companies upsize their commitments, they typically come to us intra-quarter if they have excess capacity or demand for incremental loans. And if we're able to fulfill by the end of the quarter, we'll do so.

Anthony Noto, CEO

The behavior we're seeing of consolidation down to higher quality that you mentioned, we think we're benefiting from that based on the activity we've seen from those partners.

Operator, Operator

Our final question today comes from Devin Ryan, Citizens Financial Group.

Devin Ryan, Analyst

I want to come back to the student loan opportunity. Obviously, you talked about kind of the outlook moving into a better place there with the rate environment. Can you talk a little bit about how you see some of the actions of this administration driving kind of a better environment, whether it's the Big Beautiful Bill? And then a few weeks ago, there was obviously headlines around the government exploring, selling some of its $1.7 trillion in balances, which would seem pretty interesting for you guys. So love to get some thoughts on that. I'm not sure if you can speak to it directly, but just more broadly, if you can, just what you think that means for the market and kind of the direction of travel?

Anthony Noto, CEO

Yes. I think it's all very positive for SoFi. I think we benefit from all of those decisions as they get made. We look at assets from time to time that are for sale. If the government decides to sell their student loan portfolio, we'll absolutely dig into it. It'd be a great customer acquisition tool, not to mention the fact that we can make a significant profit on that portfolio of assets. As it relates to potentially reducing the amount someone can borrow in order to go to college or grad school or business school or medical school or law school, we'll be there to fill the hole. We want to help our members achieve financial independence so they can live their ambitions. Paying for college, paying for a home is absolutely a critical decision they make. And we have to be there for all those major decisions they make. So we'll absolutely be there. If they need a solution that the federal government is not providing, then that will also be a great business. Our in-school business for loans is a very profitable business that's very attractive and doing more of that would be even better than the student loan refinancing. It's higher rates, it's backed by the credit of another person and people really do want to pay back the benefit that they receive from getting a college education. So that would also be an opportunity. I would say more broadly, as we think about our educational system and think about the changing needs from a technology standpoint, AI, there may be new types of loans that we could get into from a student loan perspective that's outside of a four-year type of experience, that's more suited for the professional environment new graduates will enter into. So I think we'll actually see some innovation because of what the government is doing and because of the impact technology is having on hiring trends.

Operator, Operator

And that concludes. Back to you.

Anthony Noto, CEO

Thank you, operator. Sorry about that. As you can see, it was an eventful quarter at SoFi and we are energized as we wrap up 2025 and head into 2026. Today's results reflect the durability of the foundation our team has been tirelessly building over the last eight years. It was not clear before today. I think it's safe to say that our results demonstrate that we truly have become a one-stop shop for your financial needs all in one digital platform. Many others have talked about achieving this strategy, but to date, no one else has come close to the breadth of products or complexity of operations that we have, not to mention the revenue scale we have, the profitability we're generating and the durability and broad diversification of revenue across our portfolio of products. This success positions us the best to benefit from the two tech super cycles unfolding and the continued strong sector transition globally from traditional finance companies to fintech companies. Suffice it to say, I'm more confident than ever that our strategy and our execution will continue to deliver our sustainable competitive advantage with the highest lifetime value and we'll accelerate our investment to ensure we maintain our lead. Along the way, we will remain guided by the SoFi Way. We are all operating as founders, problem solvers and partners to bring the best products and services to our members so we can have a meaningful impact on their lives, and lead them to a better, more secure financial future. By acting in the best interest of our members, we will build deeper relationships across our one-stop shop platform that will lead to durable growth and strong returns for our shareholders for decades to come. Thank you for joining our call, and we look forward to talking to you next quarter.

Operator, Operator

This concludes today's conference call. You may now disconnect.