SoFi bets big on balance-sheet lending as costs rise and investors pause

SoFi Technologies posted a strong Q2 with $1.2B in net revenue and $157M net income, raising full-year revenue guidance to $4.75–$4.85B and keeping adjusted EPS at $0.60. Total originations rose 69% year over year to $14.8B, led by personal loans (+54%) and student loans (nearly tripling), while deposits grew 37%. However, costs surged (noninterest expenses up $267M; sales and marketing up 48%), fueling questions about profitability as growth relies more on balance-sheet lending. Credit quality remained solid (personal-loan charge-offs around 3.7%), but investors worry about higher lending risk and valuation amid an uncertain Fed path. Management argues the revenue visibility justifies continued aggressive expansion.)