Direct Answer
264 SEC filers are classified under the Standard Industrial Classification codes that describe the financial technology industry, and their latest annual reports show $1.16 trillion of combined revenue and a median operating margin of -5.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Financial technology companies build software and services for payments, lending, banking, wealth and insurance, selling to institutions or directly to consumers. Growth, unit economics and regulatory standing separate durable businesses from subsidized ones. The first numbers to compare across companies here are revenue growth and take rate, customer acquisition cost and credit losses where lending.
Key Industry Metrics
- Revenue growth and take rate: Increase in sales and the share of volume kept as revenue. It shows whether growth comes from volume, pricing or new products.
- Customer acquisition cost: Marketing and sales spending per new customer. Compare it with the revenue and retention of that customer to judge growth efficiency.
- Credit losses where lending: Write-offs on loans made by the platform, as a share of balances. It tests underwriting models, and rises when conditions weaken.
- Gross margin: Revenue minus direct costs of delivery, such as processing and support, as a share of revenue. Software revenue lifts it, and pass-through fees lower it.
- Path to profit: Progress toward positive earnings or cash flow. Subsidized growth can stall when funding tightens, so look at how losses shrink as revenue grows.
Primary Macro Drivers
- Digital adoption: More customers using digital financial services lifts users and volume, so adoption drives revenue growth and take rate.
- Interest rates and funding cost: Rates affect lending margins and the cost of funding loans, and change customer demand and cash balances.
- Bank partnerships: Many fintechs rely on chartered banks for deposits and services, so partner terms affect growth and cost.
- Regulation: Licensing, data and consumer rules shape what products can be offered and at what cost. Watch regulatory disclosures and compliance spending.
Major Risks
- Competition from banks and big tech: Banks and large technology firms can copy features and compete on price, raising acquisition cost. Watch customer acquisition cost and revenue growth.
- Regulatory action: Enforcement actions or rule changes can limit products or add costs. Watch legal proceedings, licenses and regulatory commentary.
- Credit and fraud losses: Loans and payments attract fraud and defaults that hit margins. Watch credit losses, fraud losses and gross margin.
- Funding and cash burn: Companies that rely on outside capital must cut growth or raise at worse terms if funding tightens. Watch cash runway and path to profit.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Financial Technology Filers in the SEC Record
264 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 7372, 7389, 6199. Their latest fiscal years end between 2022 and 2026, and together they reported $1.16 trillion of revenue. Median revenue growth over the prior year was 11.8%. Median operating margin was -5.8% and median net margin -3.5%. Median total liabilities were 49% of total assets, and 119 of 264 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Microsoft Corp | $281.7 billion | 14.9% | 45.6% | 36.1% | FY 2025 |
| Accenture Plc | $69.7 billion | 7.4% | 14.7% | 11.0% | FY 2025 |
| Oracle Corp | $67.4 billion | 17.3% | 30.6% | 25.2% | FY 2026 |
| Pdd Holdings Inc. | $61.8 billion | 14.5% | 21.6% | 22.7% | FY 2025 |
| Uber Technologies, Inc | $52.0 billion | 18.3% | 10.7% | 19.3% | FY 2025 |
| Salesforce, Inc. | $41.5 billion | 9.6% | 20.1% | 18.0% | FY 2026 |
| American Express Co | $41.3 billion | 6.4% | n/a | 26.2% | FY 2025 |
| Visa Inc. | $40.0 billion | 11.3% | 60.0% | 50.1% | FY 2025 |
The 8 largest of 264 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Financial Technology guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Financials
- Financials sector overview
- Fintech Infrastructure
- Financial Services
- Full-Service Brokerages
- Financial Holding Companies
- Fund Administration
- Financial Exchanges & Data
- Group Benefits Insurance
- Financial Data Infrastructure
Put it to work
Frequently Asked Questions
What are the main KPIs for the Financial Technology industry?
Key performance indicators for the Financial Technology industry include: Revenue growth and take rate, Customer acquisition cost, Credit losses where lending, Gross margin, Path to profit. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Financial Technology industry?
The Financial Technology industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Financial Technology industry?
The primary risks for Financial Technology companies include: Competition from banks and big tech, Regulatory action, Credit and fraud losses, Funding and cash burn. Investors should assess each company's exposure to these factors and its track record of navigating them.