Once a student loan refinancer, SoFi Technologies, Inc. (SOFI) has evolved into a full-fledged digital financial services company, offering everything from investing and banking to credit cards and mortgages.
For SoFi, customers are not just users, they are the heartbeat of its ecosystem. In the first quarter of 2025, the company added a staggering 800,000 new members, pushing its total customer base to 10.9 million. This influx of users helped power SoFi to its fastest revenue growth in five quarters, setting fresh records in members, products, and fee-based revenue.
Despite the stock being down 19% on a YTD basis due to tariff concerns and rate hike fears, SoFi seems to be flipping the script with its solid earnings beat and a full-year guidance boost - a rare standout amid a so-far cautious earnings season. SoFi’s still navigating some macro headwinds, but its growing user base is a bullish signal. With some analysts projecting stellar upside potential for SOFI, it might be time to buy the fintech stock.
About SoFi Stock
San Francisco-based SoFi Technologies (SOFI), valued at a market cap of $14.6 billion, is redefining banking across the U.S., Latin America, and Canada. It offers solutions for everything from loans and credit cards to investing and insurance.
SoFi’s stock has been on a tear, surging 82% over the past 52 weeks and outpacing the S&P 500 Index ($SPX) by a wide margin.
SoFi’s climb has been fast and loud, but its valuation still raises eyebrows. Priced at 51.82 times forward earnings and 5.41 times sales, it’s no bargain-bin stock. Yet SoFi is not playing the traditional bank game. It is scaling like a tech firm, not a lender. With the stock's dip in 2025, patient investors might just find an entry point to ride its long-term, disruptive push into mainstream finance.
SoFi Exceeds Q1 Forecasts
SoFi kicked off 2025 with serious momentum, delivering a standout Q1 earnings report on April 29 that turned heads across Wall Street. Adjusted net revenue climbed 33% year over year to $770.7 million, while adjusted EBITDA surged 46% to $210 million. Most notably, SoFi stayed profitable – again - posting $71.4 million in adjusted net income, or $0.06 per share, doubling analyst expectations.
The quarter was defined by record-breaking growth as SoFi welcomed 800,000 new members, a 34% jump that pushed its total count to 10.9 million, while new products rose 35% to 15.9 million. Financial Services revenue doubled to $303 million, led by SoFi Money, the fast-growing Loan Platform, and a revamped SoFi Invest platform, boosted by a new partnership with Templum.
Loan momentum also accelerated with SoFi locking in $8 billion in new third-party loan commitments and originating a record $7.2 billion in total loans. Home loan originations spiked 54% year over year, supported by new tech, fulfillment tools, and fresh offerings like home equity loans. With more innovation on deck – including a personal loan tailored to credit card users and a SmartStart refinance option - SoFi is pushing full speed ahead.
Another bright spot was SoFi’s deposit base jumping to $27.3 billion, thanks to strong direct deposit adoption. This low-cost funding gives SoFi a big edge, helping cut interest expenses and widen margins.
Investors had even more reason to cheer when SoFi raised its full-year guidance on Tuesday, with management expecting adjusted net revenue to range between $3.235 billion and $3.31 billion - topping prior estimates. Adjusted EBITDA is projected at $875 million to $895 million, and SOFI is keeping pace with its 27% margin goals. The company also expects to bring in at least 2.8 million new members this year, marking 28% growth. For Q2, SoFi is projecting solid momentum, with steady profitability and top-line growth continuing across the board.
Analysts tracking SoFi expect fiscal 2025 profit to reach $0.28 per share, up 86.7% year over year, and rise another 75% to $0.49 per share in fiscal 2026.
What Do Analysts Expect for SoFi Stock?
After SoFi's impressive quarterly result, Needham analyst Kyle Peterson is sticking with his bullish stance on SOFI, reaffirming a “Buy” rating and a Street-high $20 price target, implying over 50% upside.
He credits SoFi’s strong Q1 performance, driven by its lending arm, for exceeding expectations in both revenue and earnings. While tech solutions grew slower, a promising pipeline, including deals with the U.S. Treasury and Wyndham Hotels, offers fuel for future growth. Despite near-term macro headwinds, Peterson sees SoFi’s prime-focused strategy as a smart play in this credit cycle.
Wall Street analysts currently have a “Hold” consensus rating on SOFI. Of the 19 analysts in coverage, six recommend a “Strong Buy,” one suggests a “Moderate Buy,” eight analysts maintain a “Hold” rating, two have a “Moderate Sell,” and two rate the stock a “Strong Sell.”
SOFI's mean price target of $14 suggests an upside potential of 11.9% from current price levels.
