Is SoFi The Next Fintech Powerhouse?

SoFi Technologies has evolved far beyond its origins as a student loan refinancer. Today, it’s a full-fledged digital financial platform offering everything from brokerage accounts to mortgages, all through a single app.

That simplicity and accessibility have made SoFi a go-to brand for Millennials and Gen Z, who increasingly prefer managing their finances entirely online.

With shares up nearly 3x over the past year and trading near record highs, investors are asking whether SoFi is still a smart buy, or if its surge has gone too far.

Key Points

• Revenue jumped 44% marking 13 straight quarters of sales growth and seven of rising profits.

• Over a third of new products come from existing members, driving stronger retention and recurring fee revenue.

• 2025 revenue is forecast to rise 30%.

Earnings Momentum Shows No Signs of Slowing

Recent results show why optimism remains high. In Q2, adjusted net revenue climbed 44% to $858 million, while membership jumped 34% to 11.7 million. Fee-based revenue surged 72% to $378 million as SoFi broadened its business beyond lending.

Profitability has also turned a corner with net income up over 5x year over year, lifting its trailing net margin to 13.5%. Few fintechs can match SoFi’s consistency: 13 straight quarters of revenue growth and seven of rising earnings.

Cross-Selling Deepens Member Relationships

Equally impressive is how deeply SoFi is embedding itself in customers’ financial lives. Over a third of new products last quarter came from existing members, showing how effectively the company cross-sells and retains users.

Each additional product strengthens engagement and boosts profitability, making SoFi harder to leave as it becomes more central to a user’s financial routine.

Lending Growth Returns as Rates Shift

Meanwhile, SoFi’s original lending business is thriving again. Loan originations hit a record $8.8 billion in Q2, fueled by strong demand for personal and student loans.

If interest rates fall in 2025, SoFi could see another wave of growth as refinancing activity accelerates.

Guidance Points to Expansion

Looking ahead, management raised its 2025 outlook, forecasting $3.38 billion in revenue, up 30% from 2024, and GAAP net income between $320 and $330 million.

Analysts expect EPS to grow at roughly 26.5% annually over the next few years, driven by membership growth and increasing financial activity among young, digital-native users.

Premium Price, Solid Foundation

The biggest concern is valuation. SoFi trades at about 53 times earnings and 7.4 times sales—hardly cheap, but not unreasonable given its growth trajectory.

The company’s balance sheet remains healthy, with $3.9 billion in debt supported by more than $40 billion in assets. Analyst targets vary: the consensus price of $22.80 implies modest downside, but the high estimate of $32 leaves room for upside if earnings momentum holds.

The Long-Term View Is Still Worth Owning

While SoFi’s stock isn’t the bargain it was a year ago, its fundamentals are stronger than ever. The company is scaling profitably, retaining customers, and capturing the loyalty of younger generations who represent the future of banking. For long-term investors, SoFi’s blend of growth, profitability, and demographic advantage makes it a story still worth owning, though patience may be required at today’s price.