SoFi Technologies (SOFI), a digital financial services and fintech company, is set to report its fourth-quarter 2025 earnings on Friday, January 30. The stock has rallied about 60.7% in 2025, easily outperforming the broader market. After a strong run over the past year, investors are split on what comes next. Some see steady growth and improving profits, while others remain cautious about valuation and execution risks. Here’s a clear look at what bulls and bears are saying ahead of earnings.
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The Bull Case for SoFi
1. Revenue Growth and Improving Profits: Bulls point to SoFi’s steady revenue growth and improving profitability. In the last reported third quarter, the company’s revenue grew 38% year-over-year and reached a new quarterly record of $950 million. Also, adjusted earnings came in at 11 cents per share, topping analysts’ consensus estimate of 8 cents. Growth was driven by higher loan originations, stronger fee income, and rising deposits. Bulls argue this shows SoFi’s business model is starting to scale.
2. Expanding Member Base: SoFi has continued to add new members at a healthy pace. Total members and products both grew sharply year over year, reflecting demand across lending, banking, and investing. It added 905,000 new members in Q3, bringing its total to 12.6 million, up 35% from last year. It also added 1.4 million new products, reaching 18.6 million in total. Bulls see this as a key long-term strength, as more members give SoFi room to cross-sell products and grow revenue per user over time.
3. Analysts Still See Upside: Several Wall Street analysts remain positive on SoFi ahead of earnings, pointing to management’s improving execution. They also note that easing interest-rate pressure could support loan demand and margins in 2026. Even after a strong run in 2025, SoFi’s average price target still suggests about 9% upside from current levels.
The Bear Case for SOFI
1. Valuation Still a Concern: Despite recent gains, bears say SoFi looks expensive compared with traditional banks and many fintech peers. The stock trades at a forward price-to-earnings ratio of about 71, far above the sector average near 11, showing investors are paying a high premium. With strong growth already priced in, any slowdown in revenue, loan growth, or margins could pressure the stock after earnings.
2. Credit and Loan Risks: Skeptics remain cautious about credit quality, especially if economic conditions weaken. While SoFi has stressed its focus on higher-quality borrowers, bears say rising delinquencies or higher loan losses could weigh on results and investor confidence.
3. Earnings Expectations Are High: With SoFi now expected to deliver consistent profits, the bar has been raised. Bears argue that simply meeting expectations may not be enough. Investors will be closely watching guidance for 2026, and any cautious tone from management could lead to short-term volatility.
What to Expect on January 30
Wall Street expects SoFi to report earnings of $0.12 per share, down 58.6% from the same period last year. Meanwhile, revenue is projected to come in at $977.42 million, compared with $1.008 billion in the prior-year quarter.
For investors confident in SoFi’s long-term story, the focus will be on loan demand, credit quality, and guidance beyond this quarter. More cautious investors may choose to stay patient, waiting for clearer signals on profitability and management’s outlook before taking a position.
What Is the Price Target for SOFI?
Overall, Wall Street is sidelined on SoFi stock with a Hold consensus rating based on five Buys, six Holds, and three Sell recommendations. The average SOFI stock price target of $28.31 indicates a possible upside of 8.34% from current levels.
