SoFi reported 388,336 crypto products, but Q2 net transaction revenue only reached $1.2 million

SoFi Technologies, the digital financial services company, reported 388,336 cumulative Crypto products as of June 30. Meanwhile, the company's Q2 filing reported just $1.183 million of net crypto transaction revenue.

The filed earnings release lists $134 million of crypto transaction revenue and $133 million of cost of crypto transaction revenue for the quarter. Their difference left about 0.88% of the gross revenue line as net transaction revenue.

That percentage is not even a profit margin. The $1.183 million is simply the revenue line before broader operating expenses and other costs, and SoFi does not disclose a standalone crypto profit figure.

Why the gross line is so large

In its first-quarter Form 10-Q, SoFi said it records crypto transactions on a gross basis because it acts as principal. It buys digital assets from, or sells them to, third-party liquidity providers before transferring the assets to or from member accounts.

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