SoFi (SOFI) AI Stock Analysis

• Market Cap: $30.35B
• Dividend Yield: N/A
• Average Volume (3M): 75.62M
• Price to Earnings (P/E): 51.6
• Beta (1Y): 2.37
• Revenue Growth: 22.60%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.08
• Shares Outstanding: 1,185,385,500
• 10 Day Avg. Volume: 74,211,968
• 30 Day Avg. Volume: 75,617,067
• PEG Ratio: -0.14
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 4.37
• P/FCF Ratio: -12.69
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 5.49
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 42.87
• 1Y Price Target: $19.97
• Price Target Upside: -21.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 72 Outperform
• Price Target: $29.00 ▲(13.28% Upside)

SoFi Technologies' strong financial performance and technical indicators are the most significant factors driving the score. The company's impressive revenue growth and profitability improvements are complemented by bullish technical trends. However, high valuation and cash flow challenges slightly temper the overall outlook.

Positive Factors

Earnings

SOFI's 2Q results came in well above both ours and Street expectations on both the top and bottom line, largely due to growth in the loan platform business which continues to accelerate as private credit demand remains rock solid.

Expansion

Significant expansion in the tech business is anticipated, including onboarding a new client contributing 10% of revenue.

Growth Potential

Rebooting crypto with additional new products is expected to drive impressive member growth, rising product engagement, and healthy incremental margins.

Negative Factors

Equity Dilution

The equity raise increased SOFI's share count by 7.4%.

Market Valuation

SOFI shares have centered around 2-3x price/book value, which makes sense for a business targeting a 20-30% ROE.

Return on Equity

After use of proceeds, this will not have a material impact on EPS, but should dilute ROE by ~110 bps in 2027.

SoFi Business Overview & Revenue Model

Company Description

SoFi, or Social Finance, Inc., is a financial technology company based in the United States that offers a range of financial products and services. Founded in 2011, SoFi initially gained prominence through its student loan refinancing platform but has since expanded its offerings to include personal loans, mortgages, investment services, and insurance products. The company operates primarily in the fintech sector, leveraging technology to provide accessible financial solutions and enhance user experience.

How the Company Makes Money

SoFi generates revenue through various channels primarily focused on lending and financial services. Its main revenue streams include interest income from loans, fees from financial products, and investment income. For instance, SoFi earns interest from personal loans, student loans, and mortgages, which comprise a significant portion of its income. Additionally, the company charges fees for its investment platform, which allows users to invest in stocks and ETFs, and earns revenue from its credit card services. SoFi has also formed strategic partnerships with financial institutions and technology providers to enhance its product offerings, leading to further monetization opportunities through cross-selling and customer acquisition. Furthermore, SoFi's membership model provides additional avenues for growth, as members gain access to various financial services and products, fostering customer loyalty and recurring revenue.

SoFi Financial Statement Overview

Summary

SoFi Technologies demonstrates strong revenue growth and improving profitability, transitioning from losses to a positive net margin. The balance sheet indicates reducing leverage and improved equity returns, but cash flow challenges persist, emphasizing the need for continued focus on cash management.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16B	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	3.03B	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	533.12M	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	561.60M	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	41.11B	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	4.50B	4.34B	3.59B	1.46B	689.62M	872.58M
Total Debt	3.48B	3.20B	5.36B	5.63B	4.19B	5.06B
Total Liabilities	34.25B	29.73B	24.52B	13.48B	4.48B	5.51B
Stockholders Equity	6.86B	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow
Free Cash Flow	-3.03B	-1.27B	-7.34B	-7.36B	-1.40B	-503.88M
Operating Cash Flow	-2.82B	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
Investing Cash Flow	-4.53B	-4.82B	-1.89B	-106.33M	110.19M	258.95M
Financing Cash Flow	7.33B	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 25.6 is above the 20-day moving average (MA) of 24.47, above the 50-day MA of 22.26, and above the 200-day MA of 16.15, indicating a bullish trend. The MACD of 1.08 indicates Positive momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 70.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOFI.

SoFi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYF	78 Outperform	$28.13B	9.19	20.23%	1.46%	-3.16%	14.60%
OMF	76 Outperform	$7.31B	11.12	20.47%	6.81%	9.41%	13.98%
SOFI	72 Outperform	$30.35B	51.63	8.80%	―	22.60%	―
Sector *	68 Neutral	$17.80B	11.94	10.22%	3.74%	9.69%	1.17%
SLM	61 Neutral	$6.49B	15.71	18.99%	1.71%	-4.34%	-38.01%
ALLY	52 Neutral	$12.73B	26.87	4.18%	2.90%	-5.33%	-32.99%
UPST	51 Neutral	$6.44B	―	-0.96%	―	60.62%	96.91%

SoFi Corporate Events

SoFi CEO Enters Prepaid Variable Forward Contract

On August 28, 2025, SoFi‘s CEO, Anthony Noto, entered into a prepaid variable forward contract involving 1,500,000 shares of the company’s common stock. This contract allows Mr. Noto to receive an upfront cash payment of $24,107,850 while retaining voting and dividend rights. The contract is set to mature in 2028, at which point Mr. Noto can settle in shares or cash, depending on the stock price. This move provides liquidity and maintains Mr. Noto’s equity position in the company, reflecting his continued confidence in SoFi’s stock, as he has not sold any shares since 2018 and has been actively purchasing more.

SoFi Completes Major Stock Offering with Goldman Sachs

On July 29, 2025, SoFi Technologies, Inc. entered into an underwriting agreement with Goldman Sachs, Citigroup, and Mizuho Securities for the issuance and sale of 82,733,817 shares of common stock at $20.85 per share. The offering was completed on July 31, 2025, and the company plans to use the proceeds for general corporate purposes, including working capital and other business opportunities.

SoFi Technologies Announces $1.5 Billion Stock Offering

On July 29, 2025, SoFi Technologies announced a public offering of $1.5 billion in common stock, with Goldman Sachs acting as the underwriter. The company plans to use the proceeds for general corporate purposes, including working capital and business opportunities, potentially impacting its financial flexibility and market position.

SoFi Technologies Holds Annual Stockholders Meeting

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.