SoFi Technologies Inc. shares were rallying in premarket action Monday after the digital financial services company exceeded expectations with its latest earnings and said that it expects to be profitable on a GAAP basis by the fourth quarter of this year. The company saw its fourth-quarter losses narrow to $40 million, or 5 cents a share, from $111 million, or 15 cents a share, in the year-prior quarter. Analysts were expecting a 9-cent loss per share for the period.
On an adjusted basis, SoFi
reported adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $70 million, ahead of the roughly $5 million in adjusted Ebitda it generated in the year-earlier quarter. The FactSet consensus was for $43 million. Shares were up 6% in premarket trading. See also: SoFi stock gains after company gives upbeat 2023 earnings forecast The company saw fourth-quarter non-interest income rise to $144.6 million from $136.5 million, as it benefitted from higher personal-loan originations but also recorded lower student-loan and home-loan originations. Personal-loan originations were up 50% from a year earlier, while student-loan originations were off 72% and home-loan originations were down 84% “as a result of macroeconomic headwinds and a continued transition of home-loan fulfillment partners,” according to SoFi’s release. SoFi achieved $2.5 billion in personal-loan originations in the quarter. “This strong performance was aided by years of investment in technology to automate and accelerate the application-to-approval proce …