Is SoFi Still a Buy After 2x Bull Run?

Shares of SoFi Technologies have rocketed more than 165% over the past year as the company’s fundamentals have improved dramatically. But with the stock now well above Wall Street’s targets, investors are wondering: has the market gotten ahead of itself?

Key Points

• It’s no longer just a student-loan lender, now a full-scale digital bank serving 11.7 million mostly young customers, with nearly half its revenue from non-lending services.

• Q2 2025 net income hit $97 million and adjusted EBITDA $249 million, marking seven straight quarters of earnings growth and rising customer engagement.

• Trading near 62× earnings and 8× sales, SoFi is priced for perfection; execution must stay strong to justify the premium.

From Student Loans to a Full-Stack FinTech

SoFi started out refinancing student loans, a narrow business that nearly sank when federal loan payments were paused during the pandemic. By 2022, rising rates and sluggish lending demand drove the share price into penny stock territory.

Since then, SoFi has reinvented itself. The company now offers everything from checking and savings accounts to credit cards, investing, and insurance, aiming to become a “one-stop money app.” That shift has transformed SoFi from a cyclical lender into a diversified financial platform earning more steady, fee-based income.

The strategy is paying off. In 2024, nearly half of SoFi’s adjusted revenue came from its Financial Services and Technology segments, up sharply from just a third two years earlier. Its near 12 million members are mostly younger customers entering their prime earning years. As their financial lives grow more complex, SoFi is positioned to cross-sell more products per user, boosting lifetime value.

The Turnaround Is Real

Profitability was once SoFi’s missing piece, not anymore. In Q2 2025, the company reported nearly $100 million in GAAP net income, up more than fourfold from the year prior.

Adjusted EBITDA surged 81% to almost $250 million, with margins nearing 30%. Fee-based revenue jumped 72% to $378 million, and net interest income climbed 26% to $518 million.

Even more telling, 35% of new product openings now come from existing customers, a sign of deepening engagement rather than simple user growth.

The company’s tangible book value climbed to $5.3 billion, providing a firmer foundation after years of operating losses. With 13 straight quarters of revenue growth and seven of earnings growth, SoFi is now acting less like a startup and more like a maturing bank-tech hybrid.

A Price Tag That’s Hard to Ignore

The problem is that success has already been priced in. SoFi trades around 62 times trailing earnings and more than 8 times sales, lofty even for a high-growth fintech. The average analyst target sits near $23, about 20% below current prices, and most analysts now rate the stock a hold.

Still, if SoFi can deliver its projected 26.5% annual EPS growth over the next five years, earnings could rise from $0.48 to about $1.55 per share. That would bring the forward multiple closer to 19x, expensive, but not unreasonable if the company keeps compounding at this pace.

The Bottom Line

SoFi’s evolution from a student-loan lender to a full-spectrum digital bank has been one of the most impressive turnarounds in fintech. Its user growth, cross-selling success, and move toward consistent profitability make it a legitimate long-term contender.

But the stock’s premium valuation leaves little room for error. Any slowdown in growth, regulatory surprise, or credit-cycle shock could send shares lower in a hurry.

For long-term investors who believe in SoFi’s ecosystem and can stomach volatility, the story remains compelling. For those seeking deep value or predictable income, it may be wiser to wait for a better entry point.