SoFi Technologies Inc. shares rose about 3% on Tuesday after CEO Anthony Noto appeared on the Basis Points podcast to address recent share-price weakness and to lay out a series of strategic moves intended to broaden the company's revenue base.
Noto acknowledged a gap between the company's operational performance and its market valuation. He noted that SoFi's stock is down roughly 40% year-to-date despite what the company reported as first quarter adjusted net revenue growth of 41% and member growth of 35%.
The chief executive characterized the share-price decline as a function of multiple compression driven by market uncertainty around interest rates rather than by underlying business problems. "We came into the year thinking two to three rate cuts. Now people are thinking no rate cuts," he said, describing how changes in interest-rate expectations have affected investor sentiment and valuation multiples.
Noto pointed out that SoFi now trades at roughly two times tangible book value, a decline from about five times previously. He also highlighted the company's tangible book value growth, saying it rose 100% to $7.20 from 2023.
The CEO discussed his personal conviction in the company by referencing a $2 million purchase of SoFi stock this year, describing current price levels as attractive. He presented a simple valuation scenario: if the company can grow tangible book value by 40% over three years while maintaining the current multiple, the share price would need to increase in line with that tangible book appreciation.
On performance metrics, SoFi reported first quarter revenue growth that exceeded 2025's 35% growth rate, and the company cited 43% cross-buy among members along with strong credit performance. Management said it is keeping full-year guidance intact even after revising expectations for interest-rate moves from two cuts to none.
Noto outlined four new or expanded business initiatives that he expects to contribute to future growth:
- SoFi Plus: The membership program added 100,000 paying members since its launch in April and now totals 160,000 paying members at $10 per month.
- SoFi USD: A stablecoin the company intends to launch within the next two weeks.
- Big business banking: A formal business-banking offering scheduled to launch on July 1.
- Crypto lending: An initiative included among the company's plans to expand its product set.
The CEO emphasized SoFi's competitive edge as rooted in low-cost digital operations and proprietary technology, which support lifetime value economics for members. He also noted that, on a trailing 12-month basis, the company's revenue mix is roughly split evenly between lending and non-lending activities.
SoFi introduced cash revenue metrics showing that revenue in 2024 and 2025 was nearly 100% cash-based. For the first quarter, the company reported cash net interest income of $690 million and $390 million in non-interest cash revenue.
Sector implications: The company's comments and initiatives touch fintech, consumer banking, and crypto markets, with potential implications for digital lending, deposit products, and fee-based services.