SoFi (SOFI) AI Stock Analysis

• Market Cap: $24.92B
• Dividend Yield: N/A
• Average Volume (3M): 53.70M
• Price to Earnings (P/E): 50.8
• Beta (1Y): 2.31
• 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: 1,275,263,800
• 10 Day Avg. Volume: 51,030,682
• 30 Day Avg. Volume: 53,702,626
• PEG Ratio: -7.19
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 6.31
• P/FCF Ratio: -7.56
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 4.29
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 14.87
• 1Y Price Target: $25.96
• Price Target Upside: 42.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $21.00 ▲(15.26% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving reported profitability and a significantly strengthened balance sheet, reinforced by upbeat 2026 guidance. Offsetting this are persistently negative and volatile operating/free cash flow (a key quality-of-earnings risk), bearish technicals with the stock trading below major moving averages, and a high P/E that leaves less room for execution or macro disappointment.

Positive Factors

Revenue growth and scale

SoFi has demonstrably scaled revenue, producing its first $1B quarter and 38% FY growth. Durable top-line expansion across lending, financial services and tech platform increases operating leverage potential, supports product investment, and underpins medium‑term profitability if growth persists.

Turnaround to sustained profitability

The company moved from multi‑year losses to positive net income and materially higher operating margins (EBIT margin rose sharply in 2025). This structural shift indicates improved unit economics and cost discipline, creating a stronger platform for durable earnings generation as scale continues.

Materially de‑risked balance sheet & liquidity

Lower leverage, a larger equity base and rising deposits materially reduce funding and solvency risk for a credit services business. Stronger liquidity and recent capital raises provide optionality to fund originations and tech investment without immediate market strain, improving resilience across cycles.

Negative Factors

Weak cash generation

Despite accounting profits, persistent negative operating and free cash flow undermine earnings quality and create reliance on external funding. Over the medium term this elevates execution and refinancing risk, making growth and capital allocation contingent on continued access to capital markets or further equity issuance.

Client concentration / platform risk

Loss of a major platform client exposes concentration in the tech‑platform segment and shows vulnerability to customer churn. Structurally, this can reduce capital‑light fee revenue growth, hurt platform monetization credibility, and raise the bar for replacing lost volume with new large clients.

Guidance reliant on macro assumptions

SoFi's medium‑term revenue and margin targets depend on a favorable macro and rate path. If rates stay higher or growth slows, net interest margin, origination volumes and fee revenue could underperform, making the projected high‑growth, high‑margin trajectory difficult to realize over the next 2–3 years.

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

Strong reported improvement in scale and profitability (return to positive net income, sharply higher 2025 operating margin) and a materially de-risked balance sheet (lower leverage, higher equity). The key constraint is weak cash quality: operating and free cash flow remain negative and worsened in 2025, raising quality-of-earnings and funding reliance concerns.

Income Statement

Revenue has scaled rapidly over the last several years, with growth re-accelerating in 2025 (annual revenue up to ~$4.77B from ~$3.70B in 2024). Profitability has also improved meaningfully: the company moved from losses in 2020–2023 to positive net income in 2024–2025, while 2025 shows a step-change in operating profitability (EBIT margin ~35% vs ~6% in 2024). Strengths include consistently strong gross margins and the clear turnaround to profitability. Key watch-outs are the sharp year-to-year margin swing (suggesting earnings may be influenced by mix, provisioning, or non-operating factors) and the fact that revenue growth has not been consistent year to year.

Balance Sheet

The balance sheet has de-risked materially: debt-to-equity improved from ~1.02x in 2022 and ~0.97x in 2023 to ~0.49x in 2024 and ~0.17x in 2025, alongside a large increase in equity (to ~$10.5B in 2025). Total assets have also grown significantly (to ~$50.7B in 2025), indicating continued scale-up. Strengths are the much lower leverage profile and improving return on equity (positive in 2024–2025). The main weakness is that returns remain modest versus the expanded equity base (ROE ~4.6% in 2025), and rapid balance-sheet growth can increase execution and credit-cycle sensitivity for a credit-services business.

Cash Flow

Cash generation remains the weakest area: operating cash flow is negative across all years shown and worsened in 2025 (about -$3.74B vs -$1.12B in 2024), with free cash flow also materially negative in 2025 (about -$3.98B). While reported net income is positive in 2024–2025, cash flow does not yet corroborate that profitability, which raises quality-of-earnings concerns and increases reliance on funding markets. A positive is that free cash flow improved dramatically versus the very large burn in 2022–2023, but the 2025 reversal highlights ongoing volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.77B	3.70B	2.90B	1.76B	1.09B
Gross Profit	3.28B	2.58B	2.05B	1.52B	977.30M
EBITDA	1.92B	436.84M	-99.74M	-167.36M	-379.61M
Net Income	481.32M	498.67M	-300.74M	-320.41M	-483.94M
Balance Sheet
Total Assets	50.66B	36.25B	30.07B	19.01B	9.18B
Cash, Cash Equivalents and Short-Term Investments	4.93B	4.34B	3.59B	1.46B	689.62M
Total Debt	1.82B	3.20B	5.36B	5.63B	4.19B
Total Liabilities	40.17B	29.73B	24.52B	13.48B	4.48B
Stockholders Equity	10.49B	6.53B	5.55B	5.53B	4.70B
Cash Flow
Free Cash Flow	-3.98B	-1.28B	-7.35B	-7.36B	-1.40B
Operating Cash Flow	-3.74B	-1.12B	-7.23B	-7.26B	-1.35B
Investing Cash Flow	-6.72B	-4.82B	-1.89B	-106.33M	110.19M
Financing Cash Flow	13.11B	5.03B	10.89B	8.44B	684.99M

SoFi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 18.22 is below the 20-day moving average (MA) of 21.28, below the 50-day MA of 24.57, and below the 200-day MA of 23.29, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 24.99 is Positive, neither overbought nor oversold. The STOCH value of 13.29 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	68 Neutral	$6.66B	8.66	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOFI	63 Neutral	$24.92B	50.79	5.66%	―	22.40%	215.81%
SLM	63 Neutral	$4.85B	6.91	32.31%	1.88%	0.59%	-1.11%
ALLY	60 Neutral	$12.97B	17.76	5.80%	2.58%	-6.89%	-33.20%
AFRM	59 Neutral	$17.22B	63.75	8.92%	―	37.00%	―
UPST	50 Neutral	$3.09B	71.28	7.49%	―	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.