SoFi’s Q1 revenue growth of 41% and 31% adjusted EBITDA margin combine for a rare Rule of 40 score of 72.
SoFi reported a Rule of 40 score of 72 for Q1, driven by 41% year-over-year revenue growth and a 31% adjusted EBITDA margin. The metric, which sums growth and profitability, signals strong operational performance amid rapid membership expansion and cross-selling success.
The company’s revenue growth outpaced expectations for high-growth firms, while its profitability margin exceeded benchmarks for the Rule of 40, a key gauge for tech and growth stocks. Prior quarters had shown steady improvement, but Q1 marked a notable acceleration in both metrics.
Despite the strong operational results, SoFi’s stock faced pressure post-earnings due to weaker-than-expected guidance and underperformance in its technology platform segment.