SoFi Technologies (SOFI) AI Stock Analysis

• Market Cap: $15.57B
• Dividend Yield: N/A
• Average Volume (3M): 58.19M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 2.40
• Revenue Growth: 21.24%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 1,105,363,000
• 10 Day Avg. Volume: 65,110,634
• 30 Day Avg. Volume: 58,186,183
• PEG Ratio: 0.22
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.56
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 4.36
• 1Y Price Target: $14.05
• Price Target Upside: -0.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $17.00 ▲(20.65%Upside)

SoFi Technologies' overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting robust revenue growth and strategic expansion. However, high valuation multiples and cash flow challenges slightly offset these strengths. The bullish technical indicators further support an optimistic outlook.

Positive Factors

Customer Engagement

SOFI utilizes products in the Financial Services segment to efficiently bring customers into its ecosystem, which helps in driving cross-sell to other products.

Financial Performance

SOFI's Financial Services segment is the fastest growing part of the company, with a raised outlook due to better-than-expected product growth and monetization.

Technology and Innovation

SOFI is focusing on growing the Invest product, aiming to drive revenue and contribution profit growth by leveraging new capabilities.

Negative Factors

Customer Retention Risks

Key risks include new customer engagement slowdown and inability to retain existing ones with their additional product offerings, impacting their ability to grow the loan book and introduce new products in other business segments.

Revenue Challenges

Tech product and solutions revenue is off to a slow start to the year.

Valuation Concerns

The current valuation of SOFI's shares is seen as high, trading at a meaningful premium compared to other consumer finance companies and banks.

SoFi Technologies Business Overview & Revenue Model

Company Description

SoFi Technologies, Inc. provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company's lending and financial services and products allows its members to borrow, save, spend, invest, and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment, and technology services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology enabled platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is headquartered in San Francisco, California.

How the Company Makes Money

SoFi 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 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
2.77B	3.77B	2.91B	1.52B	977.30M	565.53M
	Gross Profit
2.70B	2.67B	2.12B	1.52B	977.30M	565.53M
	EBIT
314.30M	233.34M	-301.16M	-391.43M	-472.95M	-350.82M
	EBITDA
391.29M	436.84M	-99.74M	737.00K	-371.38M	-280.99M
	Net Income Common Stockholders
481.74M	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.24B	2.59B	3.14B	1.82B	689.62M	872.58M
	Total Assets
37.75B	36.25B	30.07B	19.01B	9.18B	8.56B
	Total Debt
3.14B	3.09B	5.24B	5.63B	4.18B	5.06B
	Net Debt
1.05B	555.01M	2.16B	4.21B	3.69B	4.18B
	Total Liabilities
31.07B	29.73B	24.52B	13.48B	4.48B	5.51B
	Stockholders Equity
6.68B	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow		Free Cash Flow
-2.02B	-1.27B	-7.34B	-7.36B	-1.40B	-503.88M
	Operating Cash Flow
-1.84B	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
	Investing Cash Flow
-5.00B	-4.82B	-1.89B	-106.33M	110.19M	258.95M
	Financing Cash Flow
5.40B	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.09 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 12.68, and above the 200-day MA of 12.70, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOFI.

SoFi Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCFS	81 Outperform	$5.77B	20.83	13.70%	1.17%	5.06%	21.62%
CACC	75 Outperform	$5.62B	20.69	17.24%	―	13.77%	20.95%
SOFI	73 Outperform	$15.57B	33.48	7.51%	―	21.24%	―
SYF	71 Outperform	$22.78B	8.21	18.60%	2.00%	1.22%	4.96%
OMF	68 Neutral	$6.17B	10.98	17.46%	8.02%	9.07%	―
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
ALLY	63 Neutral	$11.06B	26.47	3.84%	3.33%	-2.99%	-43.64%

SoFi Technologies Corporate Events

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.

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.

SoFi Technologies Approves New Performance Stock Unit Awards

On March 21, 2025, SoFi Technologies’ Board of Directors approved new Performance Stock Unit Award Agreements under its 2021 Stock Option and Incentive Plan. These agreements, designed for the CEO, CFO, and certain senior employees, link performance-based stock units to tangible book value growth and total stockholder return over a three-year period. The initiative aims to align executive incentives with company performance, potentially impacting SoFi’s operational focus and stakeholder interests by emphasizing financial growth and market competitiveness.