SoFi (SOFI) has been on a remarkable run, with its stock rising 184% over the past year. This surge reflects SoFi’s robust financial performance, driven by innovations in its product lineup, a strategic shift toward capital-light revenue streams, its focus on reducing funding costs, and effective risk management strategies. The company has also benefited significantly from last year’s interest rate cuts, which have further propelled its stock price upward.
Looking ahead, SoFi appears poised to sustain its upward trajectory. The company’s revenue growth is accelerating, driven by a rapid expansion in its member base and product offerings.
The fintech company added a record 800,000 new members in the first quarter, bringing its total member count to 10.9 million. Product growth has been solid, with 1.2 million new products added during the quarter, marking a 35% rise and pushing the total above 15.9 million. That growth helped drive record adjusted net revenue of $771 million in the first quarter, up 33% from the prior year.
Why SoFi’s Growth Story Might Be Just Getting Started
SoFi’s businesses are firing on all cylinders. Its strategic focus on enhancing its financial services business bodes well for the growth. The segment’s revenue more than doubled to surpass $300 million in the first quarter. Deposits climbed to $27.3 billion, a key lever in lowering funding costs by an estimated $515 million annually. Its “SoFi Money” platform continues to gain traction thanks to high-yield offerings and features like peer-to-peer payments, expanded FDIC insurance, and early paycheck access. Given the solid momentum in SoFi Money, it is on track to become the company’s second $1 billion revenue business.
Within Financial Services, SoFi’s Loan Platform Business (LPB), which originates loans on behalf of third-party partners, is scaling fast. With an annualized run rate of over $6 billion in originations and $380 million in high-margin fee-based revenue, LPB has become a significant growth catalyst. This year, the company secured a $5 billion deal with Blue Owl, extended a $2 billion agreement with Fortress, and entered a $1.2 billion joint venture with Fortress and Edge Focus. These moves will boost originations and support its future growth. Moreover, since SoFi doesn’t carry the credit risk on these loans, the model appears attractive for supporting future growth. Notably, SoFi’s management expects LPB to become its third business to reach $1 billion in revenue.
Investment services remain another key growth area for the company. After ramping up investment in its SoFi Invest platform, the company saw a 21% year-over-year jump in investment products in Q1, reaching 2.7 million. The quarter also marked a high point in member engagement. By expanding access to private investment opportunities, such as SpaceX last year and now Anthropic through a partnership with Templum, SoFi is appealing to investors seeking investment options typically reserved for high-net-worth individuals.
The Tech Platform segment is also showing strength, with steady demand from new client opportunities. As SoFi continues to expand its technology infrastructure and refine its offerings, the potential for recurring, fee-based revenue continues to grow.
Looking ahead, SoFi’s diversified business model, growing member base, and focus on high-margin, low-risk revenue streams position it well for continued growth. Moreover, a decline in interest rates should further spur demand for its lending products, and the company is already rolling out new personal loan and student loan refinancing solutions to capitalize on that trend.
Taken together, these factors indicate that SoFi’s stock still has significant upside potential.
SoFi Stock Forecast: Is There More Upside?
SoFi shares have already climbed past the average analyst price target of $14.30. The highest price target for SoFi stock is $20, suggesting about 10% more room to run from current levels.
However, given the company’s accelerating momentum, robust growth in multiple verticals, and an improving macro backdrop for lending, SoFi could exceed even $20 in 2025.
