Key Takeaways:
- SoFi reported adjusted net revenue of $771 million in the first quarter, a 33% increase year over year.
- It added 800,000 new members in Q1 and reported fee-based revenue of $315 million, up 67% year over year.
- With $27.3 billion in deposits, SoFi continues to expand its product portfolio in 2025.
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Valued at a market capitalization of $14.7 billion, SoFi Technologies (SOFI) operates as a comprehensive digital financial services platform across three segments: Lending, Technology Platform, and Financial Services.
It enables members to borrow, save, spend, and invest through products including personal and student loans, SoFi Money banking, the SoFi Invest trading platform, credit cards, and insurance. SoFi also operates the Galileo and Technisys technology platforms, which serve financial institutions.
SoFi stock went public in December 2020 and has since returned less than 20% to shareholders. Down 48% from all-time highs, here’s why SOFI stock can deliver outsized returns to shareholders.
1. SoFi Stock Gains Post Solid Q1 Results
SoFi delivered exceptional first-quarter 2025 results that exceeded all guidance metrics. Adjusted net revenue reached a record $771 million, representing 33% year-over-year growth, the highest growth rate in five quarters.
It added a record 800,000 new members, driving 34% member growth to 10.9 million total users, while product growth surged 35% to over 15.9 million products.
This strong member and product expansion powered record fee-based revenue of $315 million, up 67% year-over-year, reflecting SoFi’s successful diversification toward capital-light revenue streams.
SoFi stock price has almost doubled in the past year despite broader fintech sector volatility.
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2. SoFi Operates a Robust Loan Platform
SoFi’s innovative Loan Platform Business has become a game-changer, generating over $380 million in annualized high-margin fee revenue in less than 12 months.
It originated $1.6 billion through this platform in Q1 alone, with recent partnerships totaling over $8 billion, including deals with Blue Owl, Fortress, and Edge Focus.
This business model enables SoFi to monetize the approximately $100 billion in loan applications it declines annually, creating substantial revenue opportunities with minimal credit risk and capital requirements.
The scalability of this platform positions SoFi stock for sustained growth as the company expands beyond its current prime credit box into broader market segments.
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3. A Competitive Advantage
SoFi has built a unique competitive moat through its comprehensive financial ecosystem, offering superior value propositions across lending, banking, investing, and technology platforms.
With $27.3 billion in total deposits and a nationally regulated banking charter, it provides unmatched APY rates while reducing funding costs by an estimated $515 million annually.
The SoFi Money business alone is projected to become the company’s second $1 billion revenue stream. At the same time, a diverse product portfolio drives strong cross-selling, with 32% of new products adopted by existing members.
This integrated approach is expected to result in SoFi stock price appreciation, as it is well-positioned to capture higher lifetime customer value than traditional financial institutions.
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Valuation Setup for SOFI Stock
Analysts tracking SoFi expect its sales to rise from $2.6 billion in 2024 to $4.5 billion in 2027. Comparatively, adjusted earnings are forecast to increase from $0.15 per share in 2024 to $0.63 per share in 2027.
SoFi stock currently trades at a forward price-to-earnings multiple of 43x, below its 12-month average multiple of 57x. If the fintech stock is priced at a much lower multiple of 32x, it will trade around $20 in May 2027, indicating an upside potential of 50% from current levels.
Average Analyst SOFI Stock Price Target
Wall Street remains bullish on SoFi stock, with a consensus price target of $14. Analysts expect the stock to gain 6% from current levels.
Notably, SOFI stock currently has a high target price of $20 and a low target price of $6.
Of the 19 analysts tracking the fintech stock, seven recommend “Buys”, eight recommend “Hold,” and four recommend “Sell.”
TIKR Takeaway for SoFi Stock
SoFi Technologies presents a compelling investment opportunity trading at attractive valuations despite delivering exceptional growth metrics.
Trading at 43x forward earnings, which is below its 12-month average of 57x, SoFi could reach $20 per share if valued at 32x earnings, representing a 50% upside.
SoFi’s diversified revenue streams, innovative loan platform, and comprehensive financial ecosystem position it well for sustained outperformance in the evolving fintech landscape.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
