SoFi Technologies Loan Boom: Can Record Originations Keep Climbing?
SoFi Technologies SOFI delivered its strongest lending quarter in the second quarter 2026, with total loan originations reaching a record $14.8 billion. The total was more than $2.6 billion above the prior quarter, with record volumes across personal, student and home loans. Personal loan originations reached $10.7 billion, showing how lending remains a growth engine for SOFI.
The mix matters. Of the $14.8 billion in total loan originations, $11.7 billion came through SOFI's Lending segment, while its Loan Platform Business accounted for the remaining $3.1 billion. The platform model lets SoFi originate loans for third-party partners, giving the company fee income without putting every loan on its own balance sheet.
Funding remains an advantage. Deposits represented more than 90% of average total liabilities. The average rate paid on deposits was 156 basis points below warehouse funding costs, equating to about $712.6 million in annualized interest expense savings. Lower funding costs can support pricing and margins as lending volumes rise.
Credit performance will be important if originations keep expanding. Management said credit remained strong and in line with expectations during the second quarter, supporting risk-adjusted margins. SoFi also highlighted growing cross-buy, with more home loans and an increasing share of personal loans coming from existing members, reducing customer acquisition costs.
The company is widening its lending reach. During the second quarter, SoFi launched small business loans and redesigned its home equity line of credit experience. Home equity products accounted for about one-third of record home loan originations, giving SOFI a growth path while purchase and refinance activity remained muted in a high-rate environment.
How Are Competitors Faring?
Upstart UPST is a direct SoFi competitor in technology-enabled consumer lending, and its performance shows strong demand for unsecured credit. Growth has been driven by renewed personal-loan activity, broader funding capacity and improving conversion across its marketplace. In second-quarter 2026, Upstart originated $4.2 billion of loans, rising 50% year over year.
Happen Inc. HAPN, formerly LendingClub, competes with SoFi in digital consumer banking and personal lending, where recent origination momentum has remained healthy. Its growth reflects stronger borrower demand, product and marketing initiatives and expansion of its lending platform. In second quarter 2026, Happen originated $3.1 billion of loans, up 29% year over year.
SOFI’s Price Performance, Valuation, and Estimates
Shares of SOFI have gained 15.2% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
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From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 24.15X, well above the industry’s 16.46X. It carries a Value Score of F.
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SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past month.
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SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
