SoFi Remains Optimistic Profitability Is Possible by End of Year

(Bloomberg) — SoFi Technologies Inc., the online lender suing the Biden administration for its student-loan repayment pause, reported a smaller loss than analysts expected and said it still expects to be profitable this year.

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The company’s first-quarter net loss was $34.4 million, less than the $73.3 million estimated in a Bloomberg survey of 11 analysts. The loss was also smaller than the $110.4 million in the same period a year earlier.

“We delivered another quarter of record financial results and generated our eighth consecutive quarter of record adjusted net revenue, which was up 43% year-over-year,” Anthony Noto, SoFi’s chief executive officer, said in a statement Monday.

Shares of the San Francisco-based company jumped 7.5% to $6.70 in early trading in New York. They are up 35% this year through Friday.

SoFi sued the Biden administration in March, asking a federal court to order student-loan repayment for some borrowers. It said the moratorium had caused a revenue loss of as much as $400 million and a profit loss of as much as $200 million. The US Department of Education has defended the repayment moratorium.

The firm again predicted that it will be profitable by the fourth quarter.

For a snapshot of earnings, click here.