SoFi (SOFI) AI Stock Analysis

• Market Cap: $28.18B
• Dividend Yield: N/A
• Average Volume (3M): 73.27M
• Price to Earnings (P/E): 47.9
• Beta (1Y): 2.37
• Revenue Growth: 22.60%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 64
• Industry: Financial - Credit Services
• EPS (TTM): 0.08
• Shares Outstanding: 1,185,385,500
• 10 Day Avg. Volume: 52,880,858
• 30 Day Avg. Volume: 73,270,733
• 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: 0.81
• Enterprise Value/Revenue: 5.87
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 53.26
• 1Y Price Target: $20.06
• Price Target Upside: -15.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 68 Neutral
• Price Target: $24.50 ▲(3.07% Upside)

SoFi Technologies demonstrates strong financial and operational growth, with significant improvements in revenue and profitability. However, high valuation and cash flow challenges present risks. Technical indicators suggest bullish momentum, but potential overbought conditions warrant caution.

Positive Factors

Financial Performance

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.

Loan Origination

SoFi can sustain origination momentum after 64% second-quarter growth drove volume to $8.8 billion.

Revenue Growth

SoFi is enjoying excess demand across its product suite, and the addition of new offerings, like crypto, provides good visibility toward 20%+ 2026 revenue growth.

Negative Factors

Equity Raise Impact

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

Management Strategy

The equity raise was surprising, particularly after management reiterated its comfort in its capital levels being well above minimums.

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 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 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 Financial Statement Overview

Summary

SoFi Technologies shows strong revenue growth with improving profitability, reflected by a positive net margin and a decreasing debt-to-equity ratio. However, challenges remain with negative cash flow, necessitating 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	3.89B	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	2.77B	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	429.14M	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	481.74M	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	37.75B	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.34B	3.59B	1.46B	689.62M	872.58M
Total Debt	3.14B	3.20B	5.36B	5.63B	4.19B	5.06B
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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.77
• 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 23.77 is above the 20-day moving average (MA) of 22.07, above the 50-day MA of 19.29, and above the 200-day MA of 15.20, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 67.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 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
FCFS	80 Outperform	$6.06B	20.99	14.17%	1.14%	2.49%	24.41%
OMF	73 Outperform	$6.81B	10.35	20.47%	7.26%	9.41%	13.98%
SYF	73 Outperform	$26.60B	8.69	20.23%	1.54%	-3.16%	14.60%
CACC	71 Outperform	$5.33B	13.69	27.30%	―	12.63%	149.03%
SOFI	68 Neutral	$28.18B	47.94	8.80%	―	22.60%	―
Sector *	68 Neutral	$17.52B	11.65	10.43%	3.85%	9.69%	1.92%
ALLY	52 Neutral	$11.96B	25.24	4.18%	3.09%	-5.33%	-32.99%

SoFi Corporate Events

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.

The most recent analyst rating on (SOFI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on SoFi stock, see the SOFI Stock Forecast page.

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.

The most recent analyst rating on (SOFI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on SoFi Technologies stock, see the SOFI Stock Forecast page.

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.