SoFi (SOFI) AI Stock Analysis

• Market Cap: $34.33B
• Dividend Yield: N/A
• Average Volume (3M): 65.82M
• Price to Earnings (P/E): 49.4
• Beta (1Y): 2.33
• Revenue Growth: 22.40%
• EPS Growth: 215.81%
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.11
• Shares Outstanding: 1,260,448,500
• 10 Day Avg. Volume: 60,979,831
• 30 Day Avg. Volume: 65,815,604
• 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: 0.97
• Enterprise Value/Revenue: 7.47
• Enterprise Value/Gross Profit: 10.08
• Enterprise Value/Ebitda: 35.59
• 1Y Price Target: $27.50
• Price Target Upside: 0.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $3.56B

• Rating: 68 Neutral
• Price Target: $30.00 ▲(10.13% Upside)

SoFi's strong earnings call performance and strategic capital raise are major positives, driving optimism. However, high valuation and cash flow challenges temper the outlook. Technical indicators suggest a neutral trend, while the stock offering supports future growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for SoFi's products and services, enhancing its market position and financial stability.

Product and Member Growth

Significant growth in members and products showcases SoFi's successful customer acquisition strategies and broadening market reach.

Capital Strength

The capital raise strengthens SoFi's financial position, allowing for strategic investments and debt reduction, supporting long-term growth.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could hinder SoFi's ability to fund operations and growth initiatives, impacting financial flexibility.

Economic Risks

Economic uncertainties may affect consumer spending and borrowing, potentially impacting SoFi's revenue and profitability.

Competitive Market

Intense competition could pressure SoFi's margins and market share, necessitating strategic differentiation to maintain growth.

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

SoFi demonstrates strong revenue growth and improved profitability, with a solid balance sheet showing reduced leverage. However, cash flow challenges persist, requiring attention to ensure sustainable financial health.

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: Positive
• Last Price: 27.24
• 50DMA: Negative
• 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 27.24 is below the 20-day moving average (MA) of 27.56, below the 50-day MA of 28.14, and above the 200-day MA of 20.70, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 42.73 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
OMF	79 Outperform	$8.04B	11.59	21.41%	6.11%	9.51%	29.38%
AFRM	71 Outperform	$25.16B	112.95	7.60%	―	37.00%	―
SOFI	68 Neutral	$34.33B	49.39	8.59%	―	22.40%	215.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLY	67 Neutral	$14.07B	27.51	4.25%	2.63%	-6.89%	-33.20%
SLM	67 Neutral	$5.55B	9.64	27.85%	1.90%	0.59%	-1.11%
UPST	55 Neutral	$4.63B	208.91	4.81%	―	73.29%	―

SoFi Corporate Events

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.

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.

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.

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.