SoFi Technologies raised its annual profit forecast above Wall Street estimates on Tuesday after a surge in fee-based revenue fueled record third-quarter results for the financial technology major.

Shares of the company rose 3.8 per cent in premarket trading after the results.

The company has grown into one of the most prominent names in the U.S. fintech industry, evolving from a student-loan refinancing startup into a full-fledged financial services firm, offering everything from IPO investing to credit cards and savings accounts.

Its ascent to a roughly $36 billion juggernaut has mirrored the rise of younger consumers, who are turning away from traditional banks in favor of app-based platforms.

SoFi now expects full-year 2025 adjusted earnings per share of about 37 cents, versus 31 cents per share earlier. Analysts had expected 32 cents per share, according to estimates compiled by LSEG.

STRONG DEMAND

SoFi's financial services business saw revenue surge 76 per cent in the quarter to $419.6 million.

Consumer appetite for credit and investment products has kept demand for financial services steady through a period of economic uncertainty.

"The health of our members is strong and our portfolio is in great shape," SoFi CEO Anthony Noto told Reuters, adding that credit performance had been "excellent" in the reported quarter, with net-charge-offs improving.

Fintech lenders are looking to take market share from traditional banks by offering digital platforms and products that appeal to younger, tech-savvy customers.

SoFi reported record total loan originations of $9.9 billion, up 57 per cent from a year ago, thanks to strong demand across personal, student and home loans. Fee-based revenues surged 50 per cent in the quarter over the previous year.

CRYPTO PUSH

Once dismissed as a speculative fringe, the crypto sector has steadily gained legitimacy in the financial world.

Noto said SoFi was on track to launch crypto trading this year, and "SoFi USD stablecoin will be coming in the first half of 2026".

The lender's third-quarter adjusted revenue increased 38 per cent to a record $950 million from a year earlier, beating an expectation of $886.6 million.

Adjusted profit more than doubled to 11 cents per share in the three months ended September 30, topping an expectation of 8 cents.

Fintech lender SoFi lifts 2025 profit forecast after record quarter