SoFi (SOFI) shares are up well over 10% at the time of writing after the neobank said a 64% year-over-year increase in loan originations helped it come handily above Street estimates in its Q2.
Investors are cheering SOFI shares this morning also because management raised its already lofty full-year guidance, signaling continued robust demand for the firm’s banking and lending solutions.
Including today’s rally, SoFi stock is up roughly 180% versus its year-to-date low set in early April.
SoFi Stock is Benefitting From Revenue Diversification
SOFI added another 850,000 new members and noted a 72% year-over-year increase in its fee-based revenue in the second quarter, indicating strong platform engagement and growing demand for its non-interest income services.
The company’s strong Q2 numbers reflect successful cross-selling, improved customer acquisition strategies, and increasing brand relevance among digitally native consumers.
Moreover, continued increase in fee-based revenue that now contributes about 44% to the top line signals revenue diversification, reducing reliance on lending margins and adding resilience to profitability.
Overall, the earnings release underscores operational momentum and reinforces confidence in its scalable fintech model, which may help SOFI shares extend gains further in the back half of 2025.
SOFI Shares Are Trading at a Premium Valuation
While the Q2 results bode well for SoFi shares, BTIG analyst Vincent Caintic recommends pulling out of them as much of the good news may already be priced in at current levels.
To be fair, the fintech stock is going for a forward price-earnings multiple (P/E) of nearly 77x at the time of writing, much higher than some AI stocks, even including Nvidia (NVDA) at 43x only.
Note that BTIG currently rates the financial technology company at “Hold” only.
Wall Street Recommends Caution on SoFi Technologies
Investors should tread with caution on SOFI shares also because they are already trading near the Street-high price target of $27.
According to Barchart, the consensus rating on SoFi stock currently sits at “Hold” only with the mean target of about $17 indicating potential downside of well over 30% from here.
