SoFi (SOFI) AI Stock Analysis

• Market Cap: $28.75B
• Dividend Yield: N/A
• Average Volume (3M): 42.71M
• Price to Earnings (P/E): 59.9
• Beta (1Y): 2.29
• Revenue Growth: 22.40%
• EPS Growth: 215.81%
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.13
• Shares Outstanding: 1,260,448,500
• 10 Day Avg. Volume: 47,993,386
• 30 Day Avg. Volume: 42,712,855
• PEG Ratio: -0.14
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 4.37
• P/FCF Ratio: -12.60
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 5.82
• Enterprise Value/Gross Profit: 7.86
• Enterprise Value/Ebitda: 27.74
• 1Y Price Target: $25.50
• Price Target Upside: 11.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $26.00 ▲(13.99% Upside)

The score is driven by improving fundamentals and a very strong earnings outlook/guidance, partially offset by weak cash flow quality and bearish technical momentum. Valuation is also demanding (P/E ~44), which raises the bar for continued execution.

Positive Factors

Shift to fee-based, capital-light revenue

A rising share of fee‑based and capital‑light revenue reduces dependence on interest income and balance‑sheet deployment. This structural mix shift improves revenue predictability, enhances margins and lowers credit sensitivity, supporting more durable, scalable earnings over the medium term.

Strong member growth and cross‑sell

Rapid member and product growth builds customer scale and network effects, improving acquisition economics. A rising cross‑buy rate (40% of new products from existing members) indicates stronger product stickiness and higher lifetime value potential, durable drivers of revenue per user.

Stronger liquidity and capital base

Meaningful capital raises, higher deposits and a multi‑billion cash balance materially improve funding flexibility and regulatory buffers. A stronger capital position supports lending originations, product expansion and cushions execution risk, enabling longer‑term strategic investments.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow raises dependence on external financing or deposit growth to fund lending and investments. Even with improving accounting profits, weak cash conversion constrains durable capital allocation, increases funding cost sensitivity and elevates execution risk.

Loss of large tech‑platform client

The platform client exit highlights revenue concentration and client churn risk in the tech‑platform business. Losing material partner revenue can depress platform comparables and monetization, requiring replacement or deeper diversification to sustain long‑term platform growth and margins.

Guidance highly dependent on macro assumptions

Targets for revenue, margins and NIM assume a specific interest‑rate and growth path. Material deviations in rates, GDP or unemployment would alter loan demand, net interest income and fee trajectories, making performance contingent on external macro trends rather than purely company execution.

SoFi 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 generates revenue through multiple key streams. Primarily, it earns interest income from its lending operations, which includes student loans, personal loans, and mortgages. The company charges interest on these loans, which constitutes a significant portion of its revenue. Additionally, SoFi earns fees from its investment services, including asset management and brokerage services, where it charges management fees on investment accounts and transaction fees on trades. The company also generates revenue from its insurance products and through its SoFi Invest platform, where it provides cryptocurrency and stock trading services. Partnerships with financial institutions and the integration of its products into employer benefit programs further enhance its revenue potential, as they drive customer acquisition and expand its user base.

SoFi Financial Statement Overview

Summary

Profitability and margins improved meaningfully (net margin turned positive and gross margin is strong), and leverage looks manageable with a lower debt-to-equity. The main constraint is cash generation: operating and free cash flow are negative in the TTM period, creating execution risk despite improving earnings.

Income Statement

SoFi has shown strong revenue growth with a TTM increase of 6.78% and a significant improvement in profitability metrics. The gross profit margin is robust at 74.08%, and the net profit margin has improved to 14.41% from negative figures in previous years. EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the company has experienced fluctuations in revenue growth rates over the years, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.32 in the TTM period, showing a decrease from previous years. Return on equity has improved to 8.88%, indicating better utilization of equity. The equity ratio stands at 19.39%, which is reasonable for the industry. However, the company has had high leverage in the past, which could be a concern if not managed properly.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, indicating cash flow issues. However, the free cash flow to net income ratio is positive at 1.08, suggesting that the company is generating cash relative to its net income. The negative operating cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.44B	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	3.29B	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	931.71M	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	640.24M	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	45.29B	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	5.64B	4.34B	3.59B	1.46B	689.62M	872.58M
Total Debt	2.81B	3.20B	5.36B	5.63B	4.19B	5.06B
Total Liabilities	36.51B	29.73B	24.52B	13.48B	4.48B	5.51B
Stockholders Equity	8.78B	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow
Free Cash Flow	-1.80B	-1.28B	-7.35B	-7.36B	-1.40B	-503.88M
Operating Cash Flow	-1.57B	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
Investing Cash Flow	-7.28B	-4.82B	-1.89B	-106.33M	110.19M	258.95M
Financing Cash Flow	9.63B	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOFI, the sentiment is Negative. The current price of 22.81 is below the 20-day moving average (MA) of 26.25, below the 50-day MA of 26.85, and above the 200-day MA of 22.69, indicating a neutral trend. The MACD of -0.81 indicates Positive momentum. The RSI at 29.48 is Positive, neither overbought nor oversold. The STOCH value of 8.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOFI.

SoFi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	79 Outperform	$7.72B	11.12	21.41%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOFI	67 Neutral	$28.75B	59.87	5.66%	―	22.40%	215.81%
AFRM	65 Neutral	$19.90B	89.36	7.60%	―	37.00%	―
SLM	62 Neutral	$5.51B	7.85	32.31%	1.88%	0.59%	-1.11%
ALLY	60 Neutral	$13.02B	17.84	5.80%	2.58%	-6.89%	-33.20%
UPST	55 Neutral	$3.82B	172.30	4.81%	―	73.29%	―

SoFi Corporate Events

SoFi Extends General Counsel Role with Advisory Transition

SoFi Technologies, Inc. previously announced that its General Counsel, Stephen Simcock, would retire effective December 31, 2025. The company and Simcock have now agreed that he will continue with SoFi as an advisor from January 5, 2026, through December 31, 2026, to provide transitional services in return for a monthly fee of $83,333.33 and company-paid COBRA subsidies, a move that aims to ensure continuity in its legal function during the leadership transition.

The most recent analyst rating on (SOFI) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

SoFi Completes Expanded Common Stock Offering to Bolster Capital

On December 8, 2025, SoFi Technologies, Inc. completed a previously announced underwritten public offering of its common stock at $27.50 per share, conducted in partnership with a syndicate of major investment banks. The underwriters exercised their 30-day option to purchase additional shares on January 2, 2026, and SoFi completed the issuance and sale of those additional shares on January 5, 2026, bringing the total number of shares sold in the offering to 57,754,660, a move that significantly increased the company’s equity capital base and may enhance its financial flexibility for future growth initiatives.

The most recent analyst rating on (SOFI) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

SoFi Completes Major Stock Offering Agreement

On December 4, 2025, SoFi Technologies, Inc. entered into an underwriting agreement with several major financial institutions for the issuance and sale of 54,545,454 shares of its common stock at $27.50 per share. The offering was completed on December 8, 2025, and the company plans to use the proceeds for general corporate purposes, including enhancing its capital position and funding growth opportunities.

The most recent analyst rating on (SOFI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

SoFi Announces $1.5 Billion Public Stock Offering

On December 4, 2025, SoFi Technologies announced a public offering of $1.5 billion in common stock, with an option for underwriters to purchase an additional 15%. The proceeds are intended for general corporate purposes, enhancing capital management, and funding growth opportunities. This move is expected to strengthen SoFi’s capital position and operational efficiency, potentially impacting its market standing and stakeholder interests.

The most recent analyst rating on (SOFI) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

SoFi Announces Retirement of General Counsel

On December 2, 2025, SoFi Technologies, Inc. announced the retirement of its General Counsel, Stephen Simcock, effective December 31, 2025. The retirement is not due to any disagreements with the company’s operations or policies, indicating a smooth transition without operational disruptions.

The most recent analyst rating on (SOFI) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

SoFi CFO Enters Prepaid Variable Forward Contract

On November 12, 2025, SoFi‘s CFO, Christopher Lapointe, entered into a prepaid variable forward contract involving 500,000 shares of SoFi’s common stock. This contract allows Mr. Lapointe to receive an upfront cash payment of $11,771,830 while retaining voting and dividend rights on the pledged shares. The contract is set to mature on November 12, 2027, with the settlement dependent on the share price at that time. This strategic financial move provides liquidity while maintaining equity rights, reflecting Mr. Lapointe’s compensation structure heavily tied to company equity.

The most recent analyst rating on (SOFI) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.