Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Delaware 38-0572512 ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tra ...

Core Insights - SoFi Technologies and Ally Financial reported contrasting fourth-quarter earnings, with SoFi beating estimates but experiencing a significant drop in share price, while Ally missed estimates but saw a smaller decline in its stock price [2][7] SoFi Technologies - SoFi achieved $1.03 billion in revenue and $0.13 EPS, exceeding expectations [3][5] - The company added 1 million members in Q4, bringing the total to 13.7 million [3] - Home loan originations doubled, and personal loans grew by 43% [3] - Fee-based revenue reached $443 million, a 53% increase, driven by crypto trading and the launch of SoFiUSD stablecoin [3] - CEO Anthony Noto projected $4.655 billion in revenue for 2026, indicating a 30% growth rate and $0.60 EPS [3][5] - SoFi's strategy focuses on becoming a comprehensive financial platform, with risks tied to execution and potential slowdowns in crypto adoption or loan demand [5] Ally Financial - Ally reported $2.12 billion in revenue, missing the $2.19 billion estimate, and EPS of $0.95, falling short of the $1.05 consensus [4][5] - Net income surged 178% year-over-year to $300 million, with a record $43.7 billion in consumer auto loans originated for the year [4] - The company resumed its $2 billion share buyback program and maintained a quarterly dividend of $0.30, resulting in a 2.9% dividend yield [4][6] - Ally's strategy is centered on the stabilization of auto lending as interest rates normalize, with a cautious outlook and no guidance for 2026 [6]

Core Insights - SoFi Technologies and Ally Financial have shown contrasting market reactions following their Q4 earnings reports, with SoFi's shares down 25% year-to-date despite beating estimates, while Ally's shares are down only 9% after missing estimates [1] Group 1: Financial Performance - SoFi reported Q4 revenue of $1.03 billion and EPS of $0.13, exceeding expectations [1] - Ally's Q4 revenue was $2.12 billion, missing the $2.19 billion estimate, with an EPS of $0.95 falling short of the $1.05 consensus [1] - Ally's net income surged 178% year-over-year to $300 million, while SoFi added 1 million members in Q4, bringing its total to 13.7 million [1] Group 2: Growth and Strategy - SoFi aims for a revenue target of $4.655 billion by 2026, indicating a growth rate of 30%, focusing on crypto and lending scale [1] - Ally's strategy revolves around stabilizing auto lending as interest rates normalize, with a record $43.7 billion in consumer auto loans originated for the year [1] - SoFi's fee-based revenue increased by 53% to $443 million, driven by crypto trading and the launch of SoFiUSD stablecoin [1] Group 3: Valuation and Market Sentiment - SoFi has a high P/E ratio of 50, which requires flawless execution to justify, while Ally's P/E ratio is 17, indicating a more stable valuation [1] - Analyst target prices suggest limited near-term upside for SoFi at $26.87, while Ally's target of $52.76 implies a 29% upside [1] - Retail sentiment around SoFi is showing bullish positioning, particularly in options markets following its earnings report [1]

Core Insights - Ally Financial demonstrated solid operational performance in 2025, with expectations for continued growth into 2026, particularly in net interest margin and customer acquisition [5][6][12] Financial Performance - Retail auto credit losses were reported at 1.97%, with a flat expense structure and an increase in the CET1 ratio [1] - The net interest margin was around 350 basis points at year-end 2025, with expectations for a full-year margin of 360 to 370 basis points [6] - Ally's retail auto net charge-off guidance for 2026 is projected between 1.8% and 2.0%, with current trends indicating a midpoint expectation [9] Business Segments - The company focuses on three key operating businesses: Dealer Financial Services, insurance, and Corporate Finance, supported by a strong deposits franchise [4] - In Corporate Finance, Ally maintains a low average annualized loss rate of about 30 basis points since going public in 2014, while the asset base has grown [2] - Ally's insurance segment is expected to grow, although not linearly, due to various external factors impacting performance [10] Strategic Focus - Ally's strategic shift emphasizes strengthening core franchises and enhancing dealer relationships, which has led to record application flow and written premiums in insurance [3][4] - The company aims to leverage structural tailwinds for margin expansion, particularly through higher-yielding loans replacing lower-yielding securities [7] Customer and Deposit Growth - Ally has achieved 67 consecutive quarters of customer growth since its inception in 2009, indicating a strong customer acquisition strategy [1] - Deposit balances were flat in 2025, but the company anticipates that asset growth will typically lead to deposit growth in 2026, supported by alternative funding sources [12] Capital Management - Ally expects sufficient capital generation to support loan growth, dividends, and buybacks, with a goal of improving the CET1 ratio to the "nines over time" [13] - The company views buybacks as part of a balanced approach to capital management, considering valuation and strategic objectives [13]

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Ally Financial 2026 Conference Summary Company Overview - **Company**: Ally Financial (NYSE: ALLY) - **Date of Conference**: February 10, 2026 Key Points Financial Performance and Strategy - **2025 Performance**: Ally Financial reported strong operational execution across all business segments, leading to a 62% year-over-year increase in earnings [2][6] - **Strategic Shift**: The company has made a strategic pivot to focus on core franchises, which have evolved over the past 5-10 years, creating a durable competitive advantage [3][4] - **Core Franchises**: The core businesses include dealer financial services, corporate finance, and deposits, which are seen as essential for generating higher risk-adjusted returns [3][5] Business Segments - **Dealer Financial Services**: Ally is a diversified lender that has built strong relationships with dealer customers, resulting in record application flow and written premiums in insurance [4][18] - **Corporate Finance**: The corporate finance segment has a strong reputation for speed and collaboration, with an average annualized loss rate of about 30 basis points since going public in 2014 [5][29] - **Deposits Franchise**: The deposits business is described as the "oxygen" for lending operations, with 67 consecutive quarters of customer growth and a focus on customer experience [5][6][35] Guidance and Expectations - **2026 Guidance**: Ally expects to achieve mid-teens returns, contingent on maintaining a net interest margin in the upper threes and retail auto credit losses below 2% [9][12] - **Loan Growth**: Projected growth in average earning assets is expected to be between 2%-4%, with retail auto and corporate finance likely exceeding this range [38][40] - **Expense Management**: Ally aims for 1% growth in operating expenses while expecting revenue growth in the high single digits, indicating a focus on cost discipline [41][42] Competitive Landscape - **Increased Competition**: The auto finance sector has seen intensified competition, but Ally believes its comprehensive value proposition and long-standing relationships with dealers provide a competitive edge [16][19] - **Impact of New Entrants**: The recent charter approvals for GM and Ford by the FDIC are acknowledged, but Ally remains confident in its established market position and unique offerings [19][20] Risk Management and Credit Quality - **Credit Guidance**: The company has set a retail auto net charge-off range of 1.8%-2% for the year, with a focus on maintaining strong portfolio performance [21][22] - **Consumer Resilience**: Despite a slight increase in unemployment, Ally reports resilience in consumer behavior and confidence in its portfolio quality [23][24] Insurance Business - **Growth Potential**: The insurance segment is viewed as a key growth area, providing capital-efficient fee income and diversification benefits [24][27] - **Synergies with Auto Finance**: There are positive synergies between auto finance and insurance, with increased product density among dealer customers [27] Corporate Finance - **Growth Strategy**: Ally plans to grow its corporate finance segment responsibly, focusing on maintaining risk-adjusted returns and leveraging long-term relationships with private equity firms [28][30][31] Capital Management - **Capital Allocation**: Ally has room to grow its auto loan portfolio while also considering share buybacks, balancing growth opportunities with capital discipline [48][49] - **Valuation Considerations**: The company acknowledges its lower valuation compared to peers but believes that execution and achieving financial targets will ultimately drive stock performance [53] Conclusion - **Optimism for the Future**: The leadership team expresses strong confidence in Ally's growth trajectory across its core franchises, anticipating favorable risk-adjusted returns and a compelling financial outlook [54]

sponsors and middle-market companies. For more information, please visit [www.ally.com].Ally Bank, Member FDIC. For more information and disclosures about Ally, visit [https://www.ally.com/#disclosures].For further images and news on Ally, please visit [http://media.ally.com].CONTACTMegan Rivers; Ally Communications [[email protected]]SOURCE Ally Financial## 21%[more press release views with Request a Demo]## Also from this source### TIME and Ally Financial Name 2026 Dealer of the Year[Ally Financial Inc. ( ...

Core Viewpoint - Ally Financial Inc. (ALLY) has experienced a 13.7% increase in share price over the past six months, outperforming both the industry and the S&P 500 index, which grew by 7.4% and 11% respectively [2][9]. Financial Performance - Ally Financial's net financing revenues have shown growth, supported by strong origination volumes and balance sheet repositioning actions [7][9]. - The company's total revenues for 2026 are projected to grow by 13% year-over-year, with estimates indicating a rise from $7.91 billion in 2025 to $8.95 billion in 2026 [10][11]. - The Zacks Consensus Estimate for earnings in 2026 suggests a year-over-year increase of 33.6%, with earnings per share expected to reach $5.09 [20][21]. Revenue Growth Factors - Ally Financial's net financing revenues have a compound annual growth rate (CAGR) of 4.9% over the six years ending in 2025, while net total finance receivables and loans recorded a CAGR of 3.1% over five years [7]. - The company has been restructuring operations to streamline its organizational structure, including divesting its credit card business and ceasing new mortgage loan originations [12]. Liquidity and Capital Management - As of December 31, 2025, Ally Financial had total debt of $21.8 billion and cash and cash equivalents of $10 billion, maintaining investment-grade ratings from major credit agencies [13]. - The company announced a multi-year share repurchase plan worth up to $2 billion, which resumed in the fourth quarter of 2025 [15]. Challenges - Weak asset quality remains a significant concern, with net charge-offs and provisions for loan losses expected to remain elevated due to high interest rates and inflationary pressures [16]. - Ally Financial has experienced a persistent rise in expenses, with a CAGR of 7.8% over the last six years, primarily due to increased compensation and benefits [17]. - The net interest margin (NIM) has faced pressure, declining from 3.32% in 2023 to 3.27% in 2024, influenced by rising deposit costs [18][19]. Valuation - Ally Financial's forward 12-month price-to-earnings (P/E) ratio is 8.12X, below the industry average of 9.39X, indicating that the shares are trading at a discount compared to peers [22]. Investment Outlook - Increasing net financing revenues and a solid liquidity position are expected to support Ally Financial's financials, alongside business streamlining initiatives and a focus on core operations [25]. - However, weak asset quality, NIM pressure, and elevated expenses present major near-term headwinds, making the stock a cautious bet for investors [26].

Core Points - Dave Wright, president of Dave Wright Nissan Subaru, was awarded the 2026 TIME Dealer of the Year at the 109th National Automotive Dealers Association (NADA) Show, marking the 57th year of the award and Ally Financial's 15th year as the exclusive sponsor [1][4] - The award recognizes industry excellence and community service, with Wright being noted for his leadership and commitment to community impact, having been recognized as one of the Best Dealerships to Work For 12 times [2][3] - Ally Financial will provide grants totaling nearly $1 million to charitable organizations selected by nominees, finalists, and the winner, including $10,000 to Wright's chosen charity and $5,000 to each finalist's nonprofit [6] Company and Industry Summary - Ally Financial Inc. is a financial services company with a leading position in auto financing and the largest all-digital bank in the nation, committed to supporting customers and communities [9] - The TIME Dealer of the Year award is a prestigious recognition in the automotive industry, celebrating dealers who demonstrate excellence and community commitment [5] - The selection process for the award involves a panel from the Tauber Institute for Global Operations at the University of Michigan, which chooses finalists from each NADA region and a national winner [5]

Core Insights - The "Magnificent Seven" stocks are receiving significant attention due to their market dominance and innovation, but investors should also consider opportunities in other sectors [1] Company Overview - Ally Financial has established itself as a leading digital bank with a durable success model [3] - As of December 31, Ally had 3.5 million deposit customers, marking the 17th consecutive year of growth [3] Financial Performance - Ally's retail deposits reached $144 billion by the end of the fourth quarter, providing a low-cost funding source for its primary lending product, auto loans [4] - The adjusted earnings per share for Ally surged by 62% in 2025, driven by higher yields on retail auto loans and lower yields on deposits, resulting in an expanded net interest margin from 3.27% in 2024 to 3.43% in 2025 [4] Market Outlook - Wall Street analysts express optimism regarding Ally's future, with a consensus forecast predicting a compound annual growth rate of 23.5% in earnings per share from 2025 to 2028 [6] - Ally's retail auto net charge-off rate was below 2% in 2025, indicating effective risk management, and the company processed a record 15.5 million consumer auto loan applications, reflecting strong demand [6]