SoFi Technologies, Inc. (NASDAQ: SOFI) CEO Anthony Noto said the fintech is “getting attacked constantly” at its scale, and he named fraud and risk as the fourth growth pillar in a discussion of its technology platform.
SoFi’s Tech Platform Has Outside Clients, But Gives No Fraud Revenue Figure
On SoFi’s third-quarter earnings call, Noto said: “The fourth growth pillar is fraud and risk, which clearly at our scale of 17 million members, $1.4 billion of revenue this quarter, and 27 million products, we are getting attacked constantly, but doing a great job of defending our members’ assets as well as our shareholders’ business.” The company reported 26.7 million products for the quarter.
Noto did not explicitly name the other three pillars. Earlier in the call, he said the company is focused on increasing monetization of existing relationships and expanding the platform across four areas: “issuer processing, financial and banking cores and ledgers, payments, and risk and fraud.”
Noto’s remarks on the fourth pillar came in response to a question from Scotiabank analyst Lance Jessurun, who asked how much of the tech platform’s expected growth next year comes from outside clients versus SoFi’s own products. Noto said he doesn’t view the business that way. “We built the technology platform set of businesses because those were things that SoFi would need over time. But it also turns out that the industry needs them as well,” he said.
In addition, Noto said that “When we build products for SoFi, we are building them and selling them to other people, and we will generate revenue from both of those assets.” He added: “I could not even tell you what the SoFi revenue number is in the SoFi Technology platform.”
The CEO added that SoFi is building a business that can reach 100 million products by 2030. “That is going to require great technology scaling and great innovation as we start to enter an entirely new era of two technology super cycles with AI and blockchain,” he said. In addition, Noto said SoFi is “the only national bank that has all of its products available on a digital platform and no need to speak to anyone to use those products.” He added that it “requires great technology in a world that is wrought with people that are trying to attack us.”
On the call, SoFi did not detail the nature of the attacks or break out revenue from fraud and risk.
However, the technology platform is a small part of SoFi’s business. Technology platform segment revenue fell 24% year-over-year to $87 million, mainly due to the previously disclosed transition of a large client, according to Noto. Excluding that client, revenue grew 18% year over year. Meanwhile, CFO Chris Lapointe said, “Year to date, we’ve added nine clients,” and that SoFi expects the tech platform “to return to growth of 25% year-over-year” in 2027.
SoFi’s Third Quarter Metrics
The San Francisco-based company’s third-quarter adjusted earnings of $0.18 per share beat analysts’ estimate of $0.17, while adjusted net revenue rose 44% year over year to a record $1.371 billion, exceeding expectations of $1.256 billion.
SoFi raised its full-year 2026 adjusted earnings guidance to $0.61 per share, up from $0.60 previously and above the analyst consensus estimate of $0.59. The company also increased its 2026 adjusted net revenue forecast to about $5.04 billion from its previous range of $4.75 billion to $4.85 billion, exceeding Wall Street expectations of $4.874 billion.
SoFi added a record 1.2 million members in the third quarter, bringing its total to 17.1 million, up 35% year over year. Product additions hit a record 2.2 million, lifting the total to 26.7 million, up 44%.
Shares of SoFi closed 13.42% higher at $16.40 on Tuesday, and the stock rose 0.18% after-hours. Year-to-date, the stock has declined 37.36%.
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