SoFi Technologies (SOFI) AI Stock Analysis

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SoFi Technologies

(NASDAQ:SOFI)

Rating:71Outperform

Price Target:

$24.50

▲(16.56%Upside)

SoFi Technologies' strong financial performance and bullish technical indicators are slightly offset by valuation concerns. Positive earnings call outcomes and raised guidance further enhance the outlook, though cash flow management remains crucial.

Positive Factors

Financial Performance

Financial services net revenue is modeled to rise 6% quarter-over-quarter and 82% year-over-year, indicating strong growth potential.

Product Expansion

SoFi has added new investment capabilities for its merchants including cryptocurrencies, which has positively impacted the stock price.

Strategic Acquisitions

Acquiring a bank in 2022 has allowed SoFi to build its customer franchise with consumer deposits, significantly increasing customer retention.

Negative Factors

Accounting Practices

A key bear argument is that SOFI’s accounting is aggressive and overestimates capital resiliency relative to other consumer finance companies.

Market Competition

While SoFi's new investment products are interesting, there is uncertainty about their effectiveness in competing with Robinhood.

Valuation Concerns

Despite exciting growth prospects, SOFI stock has run past fundamental value, indicating a potential overvaluation.

SoFi Technologies (SOFI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$23.23B

Dividend YieldN/A

Average Volume (3M)69.32M

Price to Earnings (P/E)50.0

Beta (1Y)2.39

Revenue Growth21.24%

EPS GrowthN/A

CountryUS

Employees5,000

SectorFinancial

Sector Strength75

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)0.08

Shares Outstanding1,105,363,000

10 Day Avg. Volume54,642,952

30 Day Avg. Volume69,321,352

Financial Highlights & Ratios

PEG Ratio-11.30

Price to Book (P/B)3.54

Price to Sales (P/S)0.00

P/FCF Ratio-11.80

Enterprise Value/Market Cap1.07

Enterprise Value/Revenue1.72

Enterprise Value/Gross Profit8.99

Enterprise Value/Ebitda17.88

Forecast

1Y Price Target

$17.83

Price Target Upside-15.18% Downside

Rating ConsensusHold

Number of Analyst Covering18

SoFi Technologies Business Overview & Revenue Model

Company DescriptionSoFi Technologies, Inc. is a leading digital personal finance company that operates within the financial technology sector. Founded in 2011 and headquartered in San Francisco, California, SoFi offers a comprehensive suite of financial products and services designed to help its members achieve financial independence. The company's core offerings include student loan refinancing, personal loans, home loans, credit cards, and a range of investment and insurance products. Additionally, SoFi provides a robust financial management platform that includes banking services, budgeting tools, and financial education resources, all aimed at helping individuals manage their finances more effectively.

How the Company Makes MoneySoFi Technologies generates revenue through multiple streams centered around its diverse financial services. A significant portion of its income is derived from interest income and fees associated with lending products, such as student loan refinancing, personal loans, and home loans. The company also earns money through transaction fees and commissions from its investing and trading platform, SoFi Invest, which offers brokerage services, robo-advisory, and cryptocurrency trading. Furthermore, SoFi makes money from its SoFi Money cash management account, which offers banking services without traditional fees, and through interchange fees from its credit card offerings. Additionally, partnerships with various financial institutions and insurance providers contribute to its earnings by allowing SoFi to offer a wider range of financial products and earn referral fees. The company's revenue model is bolstered by its focus on delivering a seamless digital experience, which helps it attract and retain a large and growing customer base.

SoFi Technologies Key Performance Indicators (KPIs)

Any

Galileo Accounts

Galileo Accounts
Measures the number of accounts using Galileo's platform, reflecting the reach and adoption of SoFi's technology solutions in the financial sector.

Chart InsightsGalileo Accounts experienced a notable decline in Q1 2025, dropping by approximately 6% year-over-year to 158 million. This decrease contrasts with SoFi's overall strong financial performance, including record revenue and significant growth in other segments. The decline in tech platform accounts suggests potential challenges in maintaining user engagement or competition pressures, despite the company's broader success. Investors should monitor how SoFi addresses these challenges to sustain growth in its technology platform.

Data provided by:

Main Street Data

SoFi Technologies Earnings Call Summary

Earnings Call Date:Jul 29, 2025

(Q1-2025)

% Change Since: 59.24%|

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Positive

SoFi Technologies reported strong financial performance with record revenue, robust member and product growth, and significant profitability increases. However, there were minor challenges in the tech platform segment and potential variability in loan platform monetization. Overall, the company's performance and outlook remain positive.

Q1-2025 Updates

Positive Updates

Record Revenue and Growth

SoFi Technologies reported record adjusted net revenue of $771 million for Q1 2025, up 33% year-over-year, marking the highest growth rate in five quarters.

Strong Member and Product Growth

The company added a record 800,000 new members, reaching 10.9 million, and 1.2 million new products, totaling over 15.9 million products, representing 34% and 35% year-over-year growth respectively.

Financial Services and Technology Platform Surge

These segments generated $407 million in revenue, up 66% year-over-year.

Lending Segment Success

Adjusted net revenue grew 27% year-over-year to $412 million, with strong originations of $5.7 billion, up 30% from the prior year.

Record Fee-Based Revenue

Fee-based revenue across the business was a quarterly record at $315 million, up 67% from the prior year.

Strong Profitability and Returns

Adjusted EBITDA was a record $210 million, up 46% year-over-year with a margin of 27%. Net income was $71 million with a margin of 9%.

Negative Updates

Tech Platform Account Decrease

Accounts on the tech platform decreased by 6% year-over-year to 158 million, despite revenue growth.

Challenges in Loan Platform Monetization

Despite strong performance, the loan platform business take rate and monetization may fluctuate due to variability across different deals and credit boxes.

Company Guidance

During the SoFi Technologies Q1 2025 earnings call, the company reported a 33% year-over-year increase in revenue, reaching a record $771 million, and a threefold increase in earnings. SoFi added 800,000 new members and 1.2 million new products, marking 34% and 35% year-over-year growth respectively, bringing the totals to 10.9 million members and 15.9 million products. The Financial Services and Technology Platform segments generated $407 million in revenue, a 66% increase from the previous year. The lending segment saw a 27% revenue increase to $412 million, with originations at $7.2 billion, a 30% rise from the prior year. Fee-based revenue was a quarterly record at $315 million, up 67% year-over-year. Adjusted EBITDA reached $210 million, with a 27% margin, and net income was $71 million, translating to a 9% margin and $0.06 earnings per share. The company also highlighted its cross-buy rate at 32% and tangible book value at $5.1 billion, up $946 million year-over-year. For full-year 2025 guidance, SoFi raised expectations to an adjusted net revenue range of $3.235 billion to $3.310 billion and an adjusted EBITDA range of $875 million to $895 million.

SoFi Technologies Financial Statement Overview

Summary

SoFi Technologies demonstrates strong revenue growth with a transition to positive net profit margins and decreasing leverage. However, cash flow challenges persist, requiring continued focus on cash management.

Income Statement

Positive

SoFi Technologies shows strong revenue growth with a notable increase from $565.5M in 2020 to $3.77B in 2024, despite some fluctuations. The TTM revenue is slightly lower at $2.77B, indicating a short-term decline. The net profit margin has turned positive in the TTM with a margin of 17.4%, reflecting improved profitability from previous losses. The gross profit margin remains consistently high, showcasing efficient cost management.

Balance Sheet

Positive

The balance sheet reflects a moderate risk profile with a decreasing debt-to-equity ratio from 1.66 in 2020 to 0.47 in the TTM, indicating improved financial leverage. The equity ratio remains stable, demonstrating a strong equity base. Return on equity has improved significantly to 7.2% in the TTM, showcasing better profitability management.

Cash Flow

Neutral

Cash flow analysis reveals challenges with negative operating cash flow, though significant improvement is seen from -$7.3B in 2023 to -$1.84B in the TTM. Free cash flow remains negative, but the company is making strides in reducing its cash burn rate. The operating cash flow to net income ratio is negative, indicating reliance on external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	2.59B	3.14B	1.82B	689.62M	872.58M
Total Debt	3.09B	5.24B	5.63B	4.18B	5.06B
Total Liabilities	29.73B	24.52B	13.48B	4.48B	5.51B
Stockholders Equity	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow
Free Cash Flow	-1.27B	-7.34B	-7.36B	-1.40B	-503.88M
Operating Cash Flow	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
Investing Cash Flow	-4.82B	-1.89B	-106.33M	110.19M	258.95M
Financing Cash Flow	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.02

Price Trends

50DMA

16.77

Positive

100DMA

14.43

Positive

200DMA

14.32

Positive

Market Momentum

MACD

1.38

Positive

RSI

65.05

Neutral

STOCH

48.74

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOFI, the sentiment is Positive. The current price of 21.02 is above the 20-day moving average (MA) of 20.46, above the 50-day MA of 16.77, and above the 200-day MA of 14.32, indicating a bullish trend. The MACD of 1.38 indicates Positive momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOFI.

SoFi Technologies Risk Analysis

SoFi Technologies disclosed 94 risk factors in its most recent earnings report. SoFi Technologies reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

SoFi Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYF	77 Outperform	$27.12B	8.86	20.23%	1.44%	-3.16%	14.60%
SOFI	71 Outperform	$23.23B	49.95	7.51%	―	21.24%	―
FCFS	70 Outperform	$5.33B	18.46	14.17%	1.27%	2.49%	24.41%
CACC	68 Neutral	$5.98B	21.99	17.24%	―	13.77%	20.95%
ALLY	68 Neutral	$11.92B	28.53	3.84%	3.09%	-2.99%	-43.64%
OMF	68 Neutral	$7.04B	10.70	20.47%	7.03%	9.07%	―
Sector *	62 Neutral	AU$10.08B	9.68	11.83%	5.02%	33.36%	41.81%

* Financial Sector Average

Performance Comparison

SOFI

SoFi Technologies

21.02

13.60

183.29%

CACC

Credit Acceptance

515.33

-65.56

-11.29%

FCFS

FirstCash

120.08

9.61

8.70%

ALLY

Ally Financial

38.82

-4.70

-10.80%

SYF

Synchrony Financial

72.87

22.85

45.68%

OMF

OneMain Holdings

59.19

10.19

20.80%

SoFi Technologies Corporate Events

Executive/Board ChangesShareholder Meetings

SoFi Technologies Holds Annual Stockholders Meeting

Neutral

May 30, 2025

On May 28, 2025, SoFi Technologies held its annual stockholders meeting where key proposals were voted on, including the election of ten board members, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent auditor for 2025. The outcomes of these votes reinforce the company’s governance structure and operational oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (SOFI) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on SoFi Technologies stock, see the SOFI Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025