In this video, I will cover recent updates on Meta, Anthropic, and Nvidia, and explain why I remain bullish on SoFi (SOFI -3.47%) despite the negative sentiment surrounding it. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of Sep. 1, 2026. The video was published on Sep. 1, 2026.
Neil Rozenbaum has positions in Meta Platforms and SoFi Technologies. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The 40% pullback in SoFi Technologies (SOFI -1.15%) from last October's peak -- followed by its stagnation since March -- makes enough superficial sense. The company delivered the bad news it was expected to deliver.
But as is so often the case, the sellers arguably overshot their target by pricing in all of the bad news -- and then some -- while ignoring much of the bigger bullish picture. Here's why the stock is a buy this month.
SoFi Technologies is so much more than its one recent setback SoFi Technologies is an online bank that offers checking, savings, credit cards, loans, and everything else you might expect from a traditional brick-and-mortar bank. But it doesn't manage any brick-and-mortar branches -- it's an entirely online, self-service bank that also provides its back-end technology platform to third parties.
Image source: Getty Images.
And that's the crux of the reason for the share pullback: Fellow online-only bank Chime Financial had been using SoFi's Galileo platform for a fee. Now it isn't, accounting for most of the 27% year-over-year tumble in platform revenue to $75 million in this year's first quarter. Investors flinched. And although the second quarter's figure rose sequentially, it fell year-over-year, leaving investors concerned.
They were so concerned that they seem to have looked right past all the other ways SoFi is knocking things out of the park. Its first-quarter total revenue is a case in point.
Although Galileo platform revenue dipped during the first quarter, total revenue soared 43% to $1.1 billion, more than doubling net income in the process. Its total customer count grew 35% to a record 14.7 million, and then it improved another 35% year over year to 15.8 million during the second quarter, when revenue increased 40% to $1.2 billion.
This growth appears to be accelerating, too. As part of its second-quarter report, released in late July, SoFi raised its full-year revenue forecast from $4.65 billion to a range of $4.75 billion to $4.85 billion, largely reflecting the fact that a growing number of its customers are now using more than one of the neobank's revenue-generating services. And at just over 30% above last year's top line, that revised outlook may still be on the conservative side.
Plenty of growth ahead So why isn't the online bank's stock bouncing back from the knee-jerk worry about the impact of losing Chime as an institutional customer? Analysts account for some of the decline. They're only lukewarm on this stock right now, with most of them currently rating SoFi as a hold, with an average price target of $20.05, only about 10% more than the current price. With shares trading at price-to-earnings (P/E) ratio of 37, they may have valuation concerns.
Analysts may also be looking right past the much bigger picture, though, afraid of sticking their necks out by pricing in next year's projected top-line growth of 26%, which would pump up the company's bottom line to $0.82 per share.
And even then, it would still just be getting started. Longer-term projections from Morningstar analysts indicate SoFi could turn $6.66 billion worth of revenue into a per-share profit of $1.71 in 2030, driven by the ongoing adoption of app-based banking.
Data source: Morningstar. Chart by author.
According to a recent survey commissioned by the American Bankers Association, more than half of all bank customers within the U.S. already say a mobile app is their preferred way of banking, with another 22% indicating a computer or laptop is their favorite way. Nearer the bottom of the list, in-branch visits are the go-to option for a mere 9% of U.S. bank customers, while phone calls are only the first choice 4% of the time.
It should also come as no surprise that the younger the consumers, the more likely they are to choose digital banking. More than two-thirds of millennials (who are mostly digitally native) use a mobile app as their primary means of banking, while only 7% regularly visit a brick-and-mortar branch.
As the number of digitally native members of the population continues expanding, and online and mobile banking goes more mainstream, SoFi is perfectly positioned to meet more and bigger portions of consumers' financial needs.
Waiting for more certainty could mean missing out The market will connect these dots sooner or later. In fact, although for the time being the stock seems stuck below $20 (leaving most of the pullback from last year's peak in place), since April we've seen an occasional glimmer of hope. The fact that the bulls continue testing the waters is telling.
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So, don't be deterred by this setback, but rather, take advantage of it while you can. Just don't tarry. Once the ball finally gets rolling in earnest, it may be a while before it stops again.
That's particularly true if the analyst community gets on board and starts raising its price targets. The growth story is certainly compelling enough in the meantime to inspire them. They just need the right nudge.
CPI Comes In Cool: Why It Could Revive These 3 Rate-Sensitive StocksSoFi Technologies NASDAQ: SOFI CFO Chris Lapointe said the financial-services company entered the second half of 2026 with continued revenue growth, expanding product adoption and a mix of newer businesses that remain in earlier stages of development.
Speaking at an investor conference, Lapointe said SoFi generated approximately 40% year-over-year revenue growth in each of the first two quarters of 2026 and adjusted EBITDA margins of roughly 30%. He characterized the resulting “Rule of 40” score—revenue growth plus adjusted EBITDA margin—at about 70.
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Block’s Pivot to Profits and AI Is Turning HeadsLapointe said the company has exceeded a Rule of 40 score of 40 for 20 consecutive quarters. Since 2022, SoFi’s members, products and revenue have each compounded at more than 30% annually, he said.
Product Adoption and Cross-Buy Growth SoFi added 1.1 million members and 2.2 million products during the most recent quarter, marking the first time product additions were twice as high as member additions, according to Lapointe. Cross-buy reached 51%, meaning existing members accounted for 51% of newly opened products.
Robinhood, SoFi, and Webull Are Telling Very Different StoriesLapointe said members often enter the platform through broadly appealing offerings such as SoFi Money and SoFi Relay, then add products including credit cards and investing accounts. He said the company focuses on average revenue per product rather than average revenue per user. Excluding Relay, which does not generate revenue, average revenue per product rose 60% over the past two years, he said.
The company’s SoFi Plus subscription offering, launched April 1, had surpassed 200,000 paying subscribers at the end of the second quarter, representing $24 million in annualized revenue, Lapointe said. He added that 85% of new paid subscribers were existing SoFi members, while 25% added another product after becoming subscribers.
Balance Sheet, Capital and Lending Lapointe said SoFi has not shifted away from third-party Loan Platform Business, or LPB, partners, stating that demand from those partners exceeded the loans the company fulfilled during each of the past two quarters.
Instead, he said management is weighing risk-adjusted returns, borrower demand, capital-markets demand and the durability of revenue in determining which loans to retain on its balance sheet and which to distribute through LPB partners.
During the second quarter, SoFi originated $10.7 billion in personal loans. Of that total, $7.6 billion was held on the balance sheet and $3.1 billion moved through its LPB business.
Deposits account for 93% of SoFi’s funding stack, Lapointe said, with more than 90% of member deposits coming from direct-deposit relationships. The company also has unused warehouse-line capacity and access to securitizations and whole-loan sales, he said.
SoFi’s total risk-based capital ratio stood at 18.8%, compared with a 10.5% regulatory minimum. Lapointe said SoFi aims to operate in the low- to mid-teens over the long term and does not expect to need to raise equity capital under its current operating plan.
On personal lending, Lapointe described refinancing prime revolving credit-card debt as the company’s largest opportunity. He said prime borrowers with revolving debt carrying interest rates around 25% could potentially refinance into lower-rate fixed personal loans. He said SoFi’s growth plans do not depend on moving to lower-quality credit borrowers.
Guidance and Consumer Credit Lapointe said SoFi’s 2026 guidance now assumes one to two interest-rate hikes, compared with the two rate cuts assumed when the company initially issued its outlook. He said the company has raised its full-year revenue guidance while maintaining profitability expectations, despite higher expected rates and a higher effective tax rate.
The company’s ability to meet its second-half outlook does not require a favorable macroeconomic change, Lapointe said. He cited execution, continued member and product growth, and credit performance that remains in line with or better than expectations as key factors.
SoFi reported 90-day delinquencies of 40 basis points in the second quarter, down sequentially, and net charge-offs of 3.7%, down 70 basis points from the first quarter. Annualized spending across its debit and credit products reached $28 billion, and Lapointe said spending had not shown signs of slowing in the third quarter.
Technology, Crypto and AI Initiatives Lapointe said SoFi expects LPB volume growth in the second half as it expands beyond unsecured personal loans. The company announced a $3 billion funding arrangement for small-business loans and has begun distributing closed-end second mortgages through the platform.
He also highlighted SoFi’s consumer crypto trading platform and SoFiUSD stablecoin as complementary opportunities. While crypto trading broadens the company’s investing products, Lapointe said SoFiUSD is intended primarily as payments infrastructure that can support around-the-clock settlement. He said SoFi is already settling crypto trades through SoFiUSD.
SoFi’s Big Business Banking platform enables businesses to hold deposits, move funds through application programming interfaces and convert between fiat currency and digital assets within a regulated banking environment, Lapointe said. He said the business could generate both fee income and net interest income.
For SoFi Technology Solutions, Lapointe said 2026 is a transition and investment year ahead of expected stronger growth in 2027. The business includes banking core and ledger systems, payment processing, payments, risk and fraud offerings, and expanded into lending and servicing through the acquisition of Peach Finance.
Lapointe also said SoFi Coach, its artificial-intelligence financial guidance tool, had generated nearly 500,000 conversations since launch and received an approval rating above 90%. He said the company currently views the product primarily as a way to support engagement, retention, cross-buy and member lifetime value, though paid value-added services could be considered over time.
About SoFi Technologies (NASDAQ:SOFI)SoFi Technologies, Inc NASDAQ: SOFI is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company's core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.
SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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I rate SoFi Technologies a Strong Buy with a $23 price target, reflecting confidence in its transition to a diversified financial platform. The main growth drivers are lending and the Loan Platform Business, deeper Financial Services cross-buy, and incremental contributions from SoFi Plus, Tech Solutions, and newer products. Management raised 2026 guidance to $4.75–$4.85B in adjusted net revenue and $1.60B in adjusted EBITDA, emphasizing scaling fee-based and Technology Platform revenues.
SoFi (SOFI -1.57%) reported second-quarter earnings that handily beat expectations and showed record highs for revenue, profitability, members, and cross-buying. In this video, I'll discuss why this hasn't produced new highs in the stock.
*Stock prices used were the morning prices of Sept. 3, 2026. The video was published on Sept. 6, 2026.
Matt Frankel, CFP® has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
SoFi (SOFI -1.57%) reported the best quarter in its history a few weeks ago, and the stock fell by nearly 10%. It has since rebounded, along with many other fintech stocks, but this continues a pattern of SoFi reporting earnings that blew past expectations, only to see its stock retreat afterward.
To be clear, there was a lot to like about SoFi's latest results, but that doesn't mean that the stock fell for no reason. Here's an overview of why SoFi fell after earnings, and why I've been adding shares to my position on any weakness.
Image source: The Motley Fool.
A record quarter by virtually every metricSoFi's second quarter left little room for disappointment. Just to name a few metrics that reached all-time highs, SoFi's revenue grew by 40% to $1.2 billion, adjusted EBITDA grew 44%, net income of $157 million was the highest it's ever been, and loan originations reached $14.8 billion.
The fintech platform now has 15.8 million members, up 35% over the past year. Brand awareness continues to improve, and SoFi's business has been firing on all cylinders.
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What's more, SoFi's cross-buy rate, which is the percentage of products opened by existing customers, has steadily improved from 35% to 51% over the past year. This means that not only is SoFi deepening relationships with its customers, but it is also improving its cost structure, as it's far more efficient to get an existing customer to apply for a loan than to find a new one.
The main reason SoFi's stock initially fell after earnings was its guidance, which may sound odd, given that it wasn't cut. In fact, management raised its full-year revenue guidance.
However, SoFi's guidance for adjusted EBITDA and EPS was held steady. In other words, higher revenue isn't translating to higher profits. SoFi's CFO explained that the company is spending more on growth initiatives than originally planned.
On one hand, it's easy to see why. The SoFi Plus premium membership product surpassed 200,000 paid subscribers in its first quarter. The cross-buy rate continues to expand, as previously noted. And loan originations are higher than ever. Holding profit expectations steady to fund projects that are delivering results is generally a smart move.
On the other hand, spending more to pursue growth adds uncertainty. Generally speaking, markets dislike uncertainty and will punish a stock (even one whose business is doing well) if it perceives an elevation in what could go wrong. And that's why SoFi's stock got beaten up after a stellar quarter.
The spending is workingSoFi's cross-buy rate, climbing from 35% to 51% over the past year, is clear evidence that its reinvestments are paying off. Members are adding more products within SoFi's ecosystem, and while the bank still has a lot of work to do in this regard, this is important progress toward its ultimate goal of becoming its members' primary bank.
Of course, the market is allowed to be skeptical. We're seeing this in many popular AI stocks that are ramping up capital spending to meet demand. There's always a chance that the spending won't produce the desired ROI. If SoFi's cross-buy growth stalls, or if overall member growth starts to decelerate, the decision to reinvest heavily will look like the wrong one in retrospect.
Having said that, SoFi's leadership team has done an excellent job of growing the top line, improving profitability over time, increasing brand awareness, and deepening engagement with its member base. I'm invested in SoFi for the next 10+ years, not because of what I think the company's profit will be next quarter, which is why I've recently added to my already substantial position.
SoFi Technologies, Inc. (SOFI - Free Report) closed at $18.22 in the latest trading session, marking a -1.57% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.
Shares of the company have appreciated by 2.27% over the course of the past month, outperforming the Finance sector's gain of 1.52%, and the S&P 500's gain of 2.08%.
Analysts and investors alike will be keeping a close eye on the performance of SoFi Technologies, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.17, up 54.55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.24 billion, indicating a 31.08% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.6 per share and a revenue of $4.87 billion, signifying shifts of +53.85% and +35.52%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for SoFi Technologies, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. As of now, SoFi Technologies, Inc. holds a Zacks Rank of #3 (Hold).
Investors should also note SoFi Technologies, Inc.'s current valuation metrics, including its Forward P/E ratio of 30.71. This indicates a premium in contrast to its industry's Forward P/E of 11.33.
We can additionally observe that SOFI currently boasts a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.16.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways SoFi is partnering with Payward to connect banking services with digital-asset markets through Kraken.SoFiUSD will be listed on Kraken, expanding distribution as Payward gains access to SEN.SoFi had about $300 million of SoFiUSD in circulation in the second quarter of 2026. SoFi Technologies (SOFI - Free Report) has partnered with Payward, the parent company behind Kraken, to connect banking with digital-asset markets. Payward will use SoFi’s Big Business Banking capabilities, join the SoFi Exchange Network (“SEN”) and list the SoFiUSD stablecoin on Kraken. SoFi will also use Kraken Prime as a source of digital-asset liquidity.
The tie-up gives Payward and Kraken’s institutional clients access to SEN for 24/7 U.S. dollar clearing, settlement and liquidity management. SoFiUSD, which is redeemable one-for-one for U.S. dollars, will gain broader distribution through Kraken, while Kraken Prime is expected to support better pricing for SoFi members’ crypto trades. Qualified custody capabilities are also expected to become available as the relationship develops.
The agreement builds on SoFi’s push into blockchain-based services. In the fourth quarter of 2025, SoFi launched consumer crypto trading, SoFi Pay and SoFiUSD. SoFi Pay allows members to send money across more than 30 countries, while SoFiUSD is backed by cash held at the Federal Reserve.
That infrastructure expanded further in 2026. SoFi’s Big Business Banking began processing transactions on SEN, allowing commercial clients to move money in real time, 24/7. The company said roughly $300 million of SoFiUSD was in circulation in the second quarter of 2026, while its crypto trading business had begun settling transactions in SoFiUSD.
Adoption provides further support. As of June 30, 2026, SoFi reported 388,336 crypto products after returning to crypto investing in the fourth quarter of 2025. In the second quarter of 2026, net crypto transaction revenues reached $1.18 million, while total Financial Services products rose 43% year over year to 21.3 million.
How Are Competitors Faring?JPMorgan Chase & Co. (JPM - Free Report) is increasingly linking traditional banking with tokenized markets. In May 2026, its Kinexys platform joined Ripple, Mastercard and Ondo Finance in a cross-border tokenized Treasury redemption, connecting blockchain-based asset redemption with bank settlement outside normal banking hours. JPM is also expanding tokenized deposits and money-market infrastructure.
Western Union (WU - Free Report) is expanding stablecoin-based financial infrastructure. In May 2026, it launched USDPT, issued by Anchorage Digital Bank on Solana and followed up with a Bybit integration in June and a Rain partnership in August. Its USDPT-backed Stablecard launched across 37 markets, supporting wallet, transfer and Visa spending functions.
SOFI’s Price Performance, Valuation and EstimatesShares of SOFI have gained 15.4% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 24.81X, well above the industry’s 17.06X. It carries a Value Score of F.
Image Source: Zacks Investment Research
SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past two months.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoFi Technologies Inc. (NASDAQ:SOFI) is trending after the company announced a strategic partnership with Payward on Thursday, connecting SoFi’s banking infrastructure with Kraken’s digital asset markets. Shares traded higher on the news on Thursday.
SoFiUSD to List on KrakenUnder the agreement, Payward will join the SoFi Exchange Network and list SoFiUSD, SoFi’s bank-issued stablecoin, on Kraken, its multi-asset trading platform. SoFi will also use Kraken Prime, Payward’s prime brokerage solution, as an additional source of digital asset liquidity for trades made by SoFi members within its app. By joining SEN, SoFi’s real-time settlement network, Kraken’s institutional clients gain the ability to clear and settle U.S. dollar transactions around the clock, extending settlement beyond traditional banking hours.
“The financial system should not shut down when markets stay open,” said Anthony Noto, CEO of SoFi. “SoFi is building the trusted financial infrastructure for an always-on economy, combining the strength of a nationally chartered bank with technology that allows money to move seamlessly and efficiently.”
Why It Matters: SoFiUSD Listing Expands Access, LiquidityThe partnership builds on SoFi’s Big Business Banking offering, launched in April to combine its enterprise banking and digital asset capabilities. SoFiUSD’s listing on Kraken expands access to the stablecoin for millions of retail, professional, and institutional clients, while SoFi members stand to benefit from better pricing on crypto trades made through Kraken Prime’s liquidity.
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SoFi Shares FallSOFI Price Action: At the time of publication, SoFi shares are trading 2.92% lower at $17.97, according to data from Benzinga Pro.
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SoFi Technologies (NASDAQ:SOFI – Get Free Report) and Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (OTCMKTS:CRQDF – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Insider & Institutional Ownership 38.4% of SoFi Technologies shares are held by institutional investors. Comparatively, 18.6% of Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada shares are held by institutional investors. 2.5% of SoFi Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations This is a breakdown of recent recommendations for SoFi Technologies and Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score SoFi Technologies 3 10 9 0 2.27 Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada 0 0 0 0 0.00 SoFi Technologies presently has a consensus target price of $22.55, suggesting a potential upside of 21.84%. Given SoFi Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe SoFi Technologies is more favorable than Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada. Profitability This table compares SoFi Technologies and Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets SoFi Technologies 14.78% 6.22% 1.22% Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada N/A N/A N/A Earnings & Valuation This table compares SoFi Technologies and Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio SoFi Technologies $3.61 billion 6.62 $481.32 million $0.48 38.56 Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada N/A N/A N/A $3.14 N/A SoFi Technologies has higher revenue and earnings than Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada. Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.
Summary SoFi Technologies beats Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada on 10 of the 11 factors compared between the two stocks.
(Get Free Report)
SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.
About Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (Get Free Report)
Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada, a non- banking institution, provides financial solutions and services in Mexico. It offers leasing and payroll services, semi-new and used vehicle loans, and working capital finance for SMEs. The company was incorporated in 1993 and is based in Mexico City, Mexico.
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SoFi Technologies, Inc. (NASDAQ: SOFI), the everything app for digital financial services, and Payward, a unified financial infrastructure platform, today announced a strategic partnership designed to enhance banking, payments, liquidity, and digital asset markets.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260903466285/en/
Through the partnership, Payward will leverage SoFi’s Big Business Banking capabilities, join the SoFi Exchange Network (SEN) and list SoFiUSD on its multi-asset trading platform. SoFi will also use Kraken Prime, Payward’s full-service prime brokerage solution, as an additional source of digital asset liquidity, with qualified custody capabilities available as the relationship expands.
By joining SEN, SoFi’s real-time settlement network, Payward unlocks new pathways for institutional clients to clear and settle U.S. dollar transactions 24 hours a day, seven days a week. Extending settlement beyond traditional banking hours also enhances the money movement process, allowing clients to move money and manage liquidity on an always-on schedule.
The partnership also connects Kraken, one of the world’s largest digital asset platforms, to SEN. Kraken institutional clients will be able to use SEN’s real-time settlement rails to move USD and manage liquidity across both networks at any hour, extending settlement beyond traditional banking hours for entities that already operate around the clock.
“The financial system should not shut down when markets stay open,” said Anthony Noto, CEO of SoFi. “SoFi is building the trusted financial infrastructure for an always-on economy, combining the strength of a nationally chartered bank with technology that allows money to move seamlessly and efficiently. Our partnership with Payward is a powerful validation of that strategy and an important step toward a financial system where businesses can move money across networks and, over time, across borders without the delays and fragmentation of legacy infrastructure.”
“Money and markets are converging into a new financial paradigm, and the infrastructure underneath has to catch up,” said David Ripley, Co-CEO of Payward. “Collaborating with SoFi lets us close that gap, and it works in both directions. Millions of people will buy their first cryptoasset inside the app they already use for their paycheck, and the infrastructure behind that experience should connect them to deep, liquid markets built to operate at scale.”
Kraken Prime, one of the industry's leading prime brokerages, will serve as an additional source of liquidity behind SoFi's crypto offering. SoFi members can buy and sell crypto inside the SoFi app; Kraken Prime will enable better pricing for SoFi members on trades they already make on the app.
Payward will also list SoFiUSD on Kraken, expanding access to SoFi’s bank-issued stablecoin for millions of retail, professional and institutional clients using one of the world’s leading digital asset platforms. SoFiUSD is redeemable one-to-one for U.S. dollars and is designed to combine the utility of blockchain technology with the safeguards of a regulated financial institution.
SoFi launched Big Business Banking in April to bring its enterprise banking and digital asset capabilities together in one offering. The partnership with Payward puts that model to work at scale and creates a foundation for the companies to expand their work together across payments, treasury, lending and digital assets over time.
About SoFi
SoFi Technologies (NASDAQ: SOFI) is the everything app for digital financial services on a mission to help people achieve financial independence to realize their ambitions. 15.8 million members trust SoFi to borrow, save, spend, invest, and protect their money and buy, sell and hold their crypto – all in one app – and get access to financial planners, exclusive experiences, and a thriving community. Banks, fintechs, and brands use innovative capabilities from SoFi Tech Solutions to serve over 134 million global accounts. For more information, visit www.sofi.com or download our iOS and Android apps.
Payward, Inc. is a unified financial infrastructure platform that powers a family of products advancing an open, global financial system. Built on a single shared architecture, Payward enables customers to hold, trade, earn, pay, and invest across asset classes without friction or fragmentation.
At its core, Payward provides the infrastructure layer behind Kraken and a growing set of purpose-built products, including NinjaTrader, Breakout, xStocks, and CF Benchmarks.
Payward separates infrastructure from product expression. Each product surface is designed for a specific customer segment, regulatory regime, and use case, while operating on the same global foundation:
One global liquidity poolOne unified risk and margin engineOne collateral and settlement systemOne compliance and licensing frameworkThis shared architecture allows Payward to scale efficiently, launch new products at low marginal cost, and serve diverse global markets while maintaining consistent risk management, regulatory integrity, and operational resilience.
Disclosure:
Availability of Other Information About SoFi
Investors and others should note that SoFi communicates with investors and the public using its website (https://www.sofi.com), the investor relations website (https://investors.sofi.com), and on social media (X and LinkedIn), including but not limited to investor presentations and investor fact sheets, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that SoFi posts on these channels and websites could be deemed to be material information. As a result, SoFi encourages investors, the media, and others interested in SoFi to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on SoFi’s investor relations website and may include additional social media channels. The contents of SoFi’s website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Certain of the statements above are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding expectations for the partnership between SoFi and Payward, as well as the roll-out of future products, SoFi’s ability to navigate the regulatory environment related to the products it launches, demand for SoFi and Payward products, expectations regarding the future of financial services and the adoption of digital assets, and the financial position, business strategy and plans and objectives of management for SoFi’s and Payward’s future operations. These forward-looking statements are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “expect”, “could”, “continue”, “future”, “may”, “plan”, “will”, “will be”, “will continue”, and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: (i) the impact on each of SoFi’s and Payward’s business as a result of the regulatory environment, changes in governmental policies, changes in personnel and resources of the governmental agencies that regulate us, and complexities with compliance related to such environment; (ii) SoFi’s and Payward’s ability to continue to drive brand awareness and realize the benefits of their respective marketing and advertising campaigns; (iii) SoFi’s and Payward’s ability to manage planned products and expectations regarding the development and expansion of its business effectively; (iv) SoFi’s and Payward’s ability to predict the demand for new products and the future of the financial services industry; (v) SoFi’s and Payward’s ability to develop new products, features and functionality that are competitive and meet market needs; (vi) SoFi’s and Payward’s ability to maintain the security and reliability of their respective products; and (vii) the outcome of any legal or governmental proceedings instituted against SoFi or Payward. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties set forth in the section titled “Risk Factors” in SoFi’s last annual report on Form 10-K as filed with the Securities and Exchange Commission, and those that are included in any future filings with the Securities and Exchange Commission. These forward-looking statements are based on information available as of the date hereof and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing SoFi’s or Payward’s views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
SOFI-F
View source version on businesswire.com: https://www.businesswire.com/news/home/20260903466285/en/
Financial services app SoFi has joined forces with Payward, parent company of cryptocurrency exchange Kraken. With this partnership, Payward will leverage SoFi's “Big Business Banking” capabilities, join the SoFi Exchange Network (SEN) and list the SoFiUSD stablecoin on its multi-asset trading platform, the companies said in a Thursday (Sept.
In an industry dominated by global money-center financial institutions, SoFi Technologies (SOFI +2.30%) keeps proving to investors that it has successfully carved out a niche. The online bank's momentum isn't letting up, despite the uncertain macroeconomic environment.
It reported adjusted net revenue of $1.2 billion during the second quarter, up 40% year over year. And for all of 2026, management expects this top-line figure to be 32% to 35% higher than in 2025.
This flourishing business continues to maintain its impressive growth trajectory. But what has to happen next for the fintech stock's price, which is down 30% in 12 months (as of Sept. 2), to follow?
Image source: Getty Images.
Financial results are the envy of the industry Shareholders have every right to be upset that the stock hasn't done well during the past year. The fundamentals have been very encouraging, so there is a disconnect between the market's perception and how the actual company is faring.
SoFi's top line has been buoyed by a budding customer base. The business now has 15.8 million customers, rising almost 16% from the end of 2025. These younger and more affluent individuals come to SoFi's platform because of its compelling product and service offerings. They also appreciate the tech-enhanced user experience.
Over time, the company's ability to cross-sell to its customers is enhanced. This drives stickiness, meaning customers are reluctant to face the inconvenience of taking their business elsewhere. And it increases the lifetime value of its client base, supporting a competitive advantage.
Revenue growth has translated into superb profit gains as well. It wasn't that long ago when SoFi was consistently losing money each quarter. However, the digital banking powerhouse has evolved into a highly profitable business.
Adjusted net income jumped 65% year over year to $160 million in Q2, lifted by operating leverage that comes from greater scale. The leadership team believes that adjusted earnings per share will rise between 38% and 42% from 2025 to 2028.
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Controlling risk will win over the investment community SoFi shares reached their all-time high in November 2025. In the three years leading up to this peak, they soared 441%. The stock has taken a beating since, as it now trades 45% off that record. This disappointing performance has happened even though the company is still firing on all cylinders.
The market is clearly concerned about something. In my view, I believe it's a risk factor that isn't specific to SoFi, but something all banking entities have to deal with: credit risk.
SoFi has been growing in remarkable fashion. Every investor loves to see it. However, with rapid expansion comes heightened risk that lending standards are being loosened to satisfy the robust demand from borrowers.
Personal loan originations totaled $10.7 billion during the second quarter, up 54% year over year and accounting for 72% of the total. These products represent the biggest loan category on the balance sheet. They are riskier loans to make that carry high monthly payments, raising the chances that borrowers will run into trouble should economic conditions deteriorate.
I believe this is what investors are worried about. Missed payments can eventually lead to loan losses. This would directly hit SoFi's income statement.
On the other hand, though, approving more personal loans is a rational strategy for the management team to embark on. SoFi ended Q2 with $45.5 billion in deposits. This gives it a low-cost and stable source of funding that it can lend out to borrowers, earning net interest income in the process.
And these loans have been performing well. "Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 3.7%," Chief Financial Officer Chris Lapointe said on the Q2 2026 earnings call.
For the stock price to steadily rise in the hopes of reaching a new record, all SoFi needs to do is continue reporting stellar financial metrics. With each quarter of upbeat results, the market's confidence in the business will grow.
SAN FRANCISCO & CHEYENNE, Wyo.--(BUSINESS WIRE)--SoFi Technologies, Inc. (NASDAQ: SOFI), the everything app for digital financial services, and Payward, a unified financial infrastructure platform, today announced a strategic partnership designed to enhance banking, payments, liquidity, and digital asset markets. Through the partnership, Payward will leverage SoFi's Big Business Banking capabilities, join the SoFi Exchange Network (SEN) and list SoFiUSD on its multi-asset trading platform. SoFi.
SoFi shares have shed nearly a third of their value in 2026 even as the fintech keeps posting record numbers, and that gap between price and fundamentals points to a scenario Wall Street has not fully priced in yet.
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SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) has had a rough 2026. Shares are down 31.7% year to date, giving back a large chunk of last year’s rally as investors digested a rate outlook that flipped from cuts to potential hikes. Yet the fintech’s fundamentals keep improving.
CEO Anthony Noto told investors that “2026 is shaping up to be a defining year” after the company posted record loan originations of $14.80 billion and its 11th consecutive profitable quarter. Let’s map out how SOFI could climb from $17.88 to $25 by the end of 2027.
Wall Street Sees Upside, But Bulls Want More The Street’s consensus 12-month price target sits at $20.02, spread across 2 Strong Buys, 5 Buys, 12 Holds, 2 Sells, and 2 Strong Sells. That target implies mild upside from today’s price and reflects a cautious posture after a sharp drawdown. Estimates, however, are moving the other way.
The FY2027 EPS consensus has climbed from $0.775 ninety days ago to $0.822 today, with 5 upward revisions in the past 30 days against 2 downward. Analysts also model FY2027 revenue of roughly $6.16 billion, extending SoFi’s growth arc. With five consecutive EPS beats, actual results have a habit of running ahead of the model.
Path to $25 Per Share by 2027 At $17.88, SOFI trades at a forward P/E near 32. Applying the FY2027 EPS estimate of $0.822, a $25 stock would trade at roughly 30x forward earnings, actually a lower multiple than today. That is a reasonable ask for a business that management guides to a 2025 to 2028 adjusted EPS CAGR of 38% to 42%.
What could push SOFI to $25?
Guidance already raised. Management lifted FY2026 adjusted net revenue to $4.75 billion to $4.85 billion, or 32% to 35% growth, with adjusted EBITDA near $1.6 billion. Cross-buy inflection. 51% of new products came from existing members, and Noto wants 1 million SoFi Plus members generating $120 million annually. Balance-sheet visibility. Noto said Q1 and Q2 lending growth gives “very strong visibility into our revenue for 2027”, backed by a 5.98% net interest margin and $45.5 billion in deposits. New capital-light rails. Loan Platform Business partnerships, SoFiUSD stablecoin settlement, and Big Business Banking add fee revenue on top of net interest income. History Says a 40% Rebound Is On the Table Reaching $25 requires roughly a 40% gain from here. SOFI has shown it can move that fast. Shares are already up 9.63% over the past month, and the stock’s beta of 2.204 means it tends to overshoot the market both ways.
The 52-week high of $32.73 sits well above our target, so $25 would simply reclaim ground held earlier this cycle rather than break new records. Our own base-case model projects $21.50 by September 2027, with a bull case at $25.91.
Bottom Line on $25 Hitting $25 by late 2027 would require SOFI to gain about 40% while its forward multiple actually compresses to roughly 30x. With FY2027 EPS estimates rising 4 times in the past week alone, a five-quarter beat streak, and a long-term ROTCE target of 20% to 30%, the setup is there.
Macro risk and the 23% decline in Technology Platform revenue are real hurdles. Returns like this should not be assumed every year, but we have laid out a credible blueprint for how SOFI could reach $25 in 2027.
Contact [email protected] for any questions or corrections.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SOFI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Shares of SoFi Technologies Inc. (NASDAQ:SOFI) are trading marginally higher Wednesday morning. The digital financial services firm continues to navigate a turbulent macroeconomic backdrop, where a sharp rise in benchmark Treasury yields has weighed on rate-sensitive fintech lenders.
Here’s what investors need to know.
SoFi Technologies stock is trading near recent lows. What’s next for SOFI stock? Rising Treasury Yields Squeeze Balance-Sheet LendersThe primary catalyst behind recent selling pressure stems from a global bond market selloff that has pushed the 10-year Treasury yield up to 4.81% on Wednesday morning, while the 30-year yield held near 5.27%.
Because SoFi operates as a digital bank carrying significant loan volume, including personal, student and mortgage originations, directly on its balance sheet, elevated long-term rates present operational headwinds.
Fundamental Execution and Institutional Interest Cushion VolatilityDespite rate-induced valuation drag, SoFi’s underlying financial execution remains robust. In its second-quarter earnings report delivered on July 30, the company generated $1.21 billion in net revenue, representing a 40% year-over-year increase, and delivered 12 cents in diluted earnings per share.
SoFi maintained a net interest margin of 5.98%, supported by adding 1.1 million new members in the second-quarter to reach 15.8 million total members.
Institutional sentiment provided an additional cushion on Wednesday, following regulatory disclosures that UBS Asset Management expanded its equity stake, acquiring an additional 198,336 shares during the second quarter to bring its total holding to over 4.92 million shares.
SOFI Shares Pause Wednesday MorningSOFI Price Action: SoFi Technologies shares were up 0.35% at $17.11 at the time of publication on Wednesday, according to Benzinga Pro data.
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SummarySoFi Technologies, Inc. remains a Buy as the business pivots toward fee-based revenue and leverages its deposit base as a rate hedge.Management raised 2024 revenue guidance to $4.75–$4.85B but held profit targets flat, reinvesting incremental revenue into growth initiatives.Fee-based revenue reached 39% of total, with the Loan Platform Business enabling growth without adding credit risk to SOFI’s balance sheet.Key risks include continued share dilution, rising capital needs, and the need for incremental margins to rebound above 30% in coming quarters. Joe Hendrickson/iStock Editorial via Getty Images
SoFi Technologies, Inc. (SOFI) reported its second-quarter earnings on July 29 that beat expectations on both the top and bottom lines, yet it closed the day down about 9%—not the reaction one
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways SoFi saw 51 of new products opened by existing members in Q2, up from 35% a year earlier.SoFi's non-lending offerings now account for 87% of total products, supporting lower-cost engagement.SoFi's adjusted net revenues rose 40% year over year, while adjusted EBITDA increased 44%. SoFi Technologies (SOFI - Free Report) is increasingly moving beyond its roots as an online lender toward becoming a broad digital financial-services platform. The company’s strategy rests on attracting members through products such as checking and savings, investing and financial planning, and then encouraging them to use additional services across the platform. As that ecosystem expands, the opportunity to increase customer engagement and lifetime value also grows.
This approach differentiates SoFi from fintech peers with more concentrated business models. Upstart Holdings (UPST - Free Report) remains more closely tied to AI-driven lending, while Affirm Holdings (AFRM - Free Report) is primarily associated with buy-now-pay-later financing. In contrast, SoFi combines banking, investing, lending, payments and financial technology infrastructure under one umbrella.
Yet SOFI stock has struggled in 2026, declining sharply despite continued business expansion. Its performance has been broadly weak alongside Upstart Holdings, while Affirm Holdings has held up comparatively better. This disconnect between operating progress and share price performance makes SoFi’s improving product flywheel particularly important to the investment debate.
Year-to-date Stock Price Performance
Image Source: Zacks Investment Research
Cross-Buy Is Becoming Central to SoFi’s Growth StoryThe strongest part of SoFi’s strategy is no longer simply adding new members. The more important development is that existing customers are increasingly adopting additional products.
SoFi’s model starts with products that can attract users frequently and at relatively low acquisition costs, such as SoFi Money, Relay and Invest. Once customers enter the ecosystem, the company can introduce lending, credit cards, investing services and other offerings without having to spend as much to acquire that customer again.
Recent trends support this strategy. In the second quarter, 51% of new products were opened by existing members compared with 35% a year earlier. Management also said products per member have accelerated over the past two quarters, suggesting that the benefits of its “everything app” strategy are becoming more visible.
This matters because higher cross-buy can improve economics in several ways. It raises revenue per customer, spreads acquisition costs across more products and creates opportunities to build longer relationships. This gives SoFi a potential advantage over Upstart Holdings, where revenues remain more dependent on credit origination activity, and Affirm Holdings, whose growth is closely connected with merchant volumes and consumer financing demand.
SOFI’s New Products Are Giving Flywheel More FuelSoFi is also widening the number of ways members can interact with its platform. The relaunched SoFi Plus subscription is one example. More than 200,000 members had adopted the paid offering after one quarter, with most coming from SoFi’s existing customer base. A portion of those subscribers subsequently opened another SoFi product.
SoFi Coach represents another effort to deepen engagement by using customer financial data to provide personalized guidance. Meanwhile, the Invest platform continues to expand through new investment tools and broader asset access. Its August-announced private-market offerings from CAZ Investments and AngelList Asset Management add another dimension to the investing business and could help SoFi capture more customer assets over time.
These products are important because 87% of SoFi’s total products are now non-lending offerings. Such products tend to be used more frequently and generally carry lower acquisition costs than lending products, helping bring users into the ecosystem before they potentially adopt higher-value services later.
Diversification Could Make Earnings More Durable for SOFIAnother encouraging part of the story is SoFi’s attempt to reduce its dependence on traditional balance sheet lending. The Loan Platform Business allows the company to originate loans for partners and earn fee income without retaining all of the credit exposure.
SoFi is extending that model beyond personal loans into small-business lending and home-equity products. Management believes this can increase capital-light fee revenues while also bringing more members into the broader ecosystem.
At the same time, Financial Services and Technology Solutions are intended to become a larger portion of the revenue mix. This could gradually make SoFi less sensitive to lending cycles and funding conditions. Relative to Upstart Holdings and Affirm Holdings, SoFi offers a broader mix of revenue opportunities, although that diversification makes execution more complex.
Quarterly performance provides evidence that the strategy is progressing. Adjusted net revenues increased 40% year over year in the latest quarter, while adjusted EBITDA rose 44%. The more relevant takeaway is that SoFi is generating enough profitability to keep investing in new products without abandoning earnings discipline.
SOFI’s Estimate Revisions Depict an Improving OutlookOver the past 60 days, estimates for SOFI’s 2026 and 2027 EPS have been revised marginally upward. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 53.85% and 34.86%, respectively.
Image Source: Zacks Investment Research
Valuation Keeps Expectations ElevatedSOFI trades at 4.24X forward 12-month price-to-sales versus 4.67X for AFRM and 1.65X for UPST.
The key issue is that investors already assign significant value to SoFi’s growth potential. Its valuation remains above UPST’s and closer to AFRM’s, meaning continued member growth, stronger cross-buy and improving margins are necessary to support the premium.
There are also execution risks. Technology Solutions still needs to become a stronger growth contributor, lending remains exposed to credit conditions, and rapid product expansion requires sustained investment. If cross-buy slows or customer acquisition costs rise, the economics of the flywheel could become less attractive.
Valuation
Image Source: Zacks Investment Research
What Should Investors Do With SOFI Now?SoFi’s investment case is becoming more balanced as its product ecosystem begins to generate stronger cross-buy and deeper customer engagement. The combination of banking, investing, lending and newer subscription and advisory products gives it more growth paths than UPST and a broader financial-services model than AFRM. Greater fee-based revenues could also make earnings more durable over time.
Still, the current valuation assumes that much of this progress will continue, while execution and credit risks remain. Existing investors may consider retaining their exposure, while prospective investors could wait for a more attractive entry point or further evidence that the flywheel can sustain its pace.
At present, SOFI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Canada Pension Plan Investment Board acquired a new stake in SoFi Technologies, Inc. (NASDAQ:SOFI – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 273,500 shares of the company’s stock, valued at approximately $4,904,000.
Several other hedge funds have also made changes to their positions in the business. Brighton Jones LLC grew its stake in shares of SoFi Technologies by 2.0% in the 4th quarter. Brighton Jones LLC now owns 719,288 shares of the company’s stock valued at $11,077,000 after purchasing an additional 14,281 shares during the last quarter. Caxton Associates LLP acquired a new stake in shares of SoFi Technologies during the 1st quarter valued at approximately $129,000. Empowered Funds LLC boosted its position in SoFi Technologies by 5.2% during the first quarter. Empowered Funds LLC now owns 33,126 shares of the company’s stock worth $385,000 after purchasing an additional 1,631 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of SoFi Technologies by 23.2% during the 2nd quarter. Franklin Resources Inc. now owns 13,796 shares of the company’s stock worth $251,000 after buying an additional 2,596 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in SoFi Technologies in the 2nd quarter valued at about $4,633,000. Institutional investors and hedge funds own 38.43% of the company’s stock.
SoFi Technologies News Roundup Here are the key news stories impacting SoFi Technologies this week:
Positive Sentiment: Strong post-earnings momentum: SoFi’s shares have outperformed since its latest earnings report, which showed $1.21 billion in revenue and $0.12 in adjusted earnings per share, both ahead of consensus estimates. Revenue increased 42.5% year over year, supporting the bullish case for continued operating growth. SoFi Technologies Up 16.5% Since Last Earnings Report Positive Sentiment: SoFi Plus could add recurring revenue: Early traction for the company’s paid membership program may increase customer engagement, cross-selling and adoption of additional financial products. Investors are watching whether membership growth can diversify revenue and support longer-term margins. SoFi Technologies’ SoFi Plus Neutral Sentiment: Analyst consensus remains cautious: SoFi has received a consensus “Hold” recommendation, suggesting analysts see a balanced risk-reward profile following the rebound rather than an unambiguously attractive entry point. SoFi Receives Consensus Hold Recommendation Neutral Sentiment: Relative-value debate: Comparisons with Sezzle highlight differing growth models, diversification and risk profiles. The discussion does not provide a direct SOFI catalyst but may influence fintech-sector positioning. Sezzle Versus SoFi Negative Sentiment: Profit-taking and valuation concerns: After the recent rebound and move back above key moving averages, some investors may be locking in gains. A bearish analysis argues that even strong execution is not enough to justify a more aggressive position, while the stock’s elevated growth expectations leave it vulnerable to pullbacks. SoFi Everything Went Right and I’m Still Cutting to Hold Analyst Ratings Changes Several equities analysts have weighed in on the company. Piper Sandler started coverage on SoFi Technologies in a research report on Monday, August 17th. They set an “overweight” rating and a $22.00 price target for the company. Citigroup dropped their price target on shares of SoFi Technologies from $37.00 to $30.00 and set a “buy” rating for the company in a research report on Monday, May 4th. Wells Fargo & Company cut their price objective on SoFi Technologies from $18.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, July 30th. Truist Financial raised their target price on shares of SoFi Technologies from $18.00 to $19.00 and gave the company a “hold” rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings raised SoFi Technologies from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $22.42. Check Out Our Latest Stock Analysis on SoFi Technologies
Insider Buying and Selling In other news, CTO Jeremy Rishel sold 102,123 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $17.78, for a total transaction of $1,815,746.94. Following the sale, the chief technology officer directly owned 895,089 shares in the company, valued at approximately $15,914,682.42. This represents a 10.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Kelli Keough sold 11,286 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $18.00, for a total value of $203,148.00. Following the completion of the sale, the executive vice president owned 356,442 shares in the company, valued at $6,415,956. The trade was a 3.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,505 shares of company stock worth $2,418,096 over the last quarter. Insiders own 2.50% of the company’s stock.
SoFi Technologies Price Performance NASDAQ:SOFI opened at $18.06 on Monday. SoFi Technologies, Inc. has a one year low of $14.88 and a one year high of $32.73. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.10 and a current ratio of 0.74. The company has a market capitalization of $23.33 billion, a price-to-earnings ratio of 37.62 and a beta of 2.17. The stock has a 50-day simple moving average of $17.84 and a 200 day simple moving average of $17.54.
SoFi Technologies (NASDAQ:SOFI – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.01. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.11 billion. SoFi Technologies had a return on equity of 6.22% and a net margin of 14.78%.The business’s revenue was up 42.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.08 EPS. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. Sell-side analysts predict that SoFi Technologies, Inc. will post 0.61 EPS for the current fiscal year.
SoFi Technologies Profile (Free Report)
SoFi Technologies, Inc (NASDAQ: SOFI) is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company’s core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.
SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.
Further Reading Five stocks we like better than SoFi Technologies Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?
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Shares of SoFi Technologies Inc. (NASDAQ:SOFI) are trading marginally lower Monday morning. The stock is extending weakness from Friday’s session as fintech and high-beta growth names face pressure from broader market headwinds and persistent macroeconomic scrutiny around lending margins.
Here’s what investors need to know.
SoFi Technologies stock is trading at depressed levels. Where are SOFI shares going? Geopolitical Escalation And Macro Rates Weigh On EquitiesMonday morning’s market-wide decline is driven primarily by escalating conflict in the Middle East following U.S. strikes against Iranian targets in the Strait of Hormuz over the weekend and subsequent regional retaliation. The geopolitical flare-up sent crude oil higher and equity futures lower across the board.
For rate-sensitive financial technology companies like SoFi, the macro pressure is compounded by hawkish Federal Reserve commentary late last week, which raised concerns that high borrowing costs could persist longer, putting pressure on net interest margins and consumer credit quality.
Strong Q2 Beat Holds Focus On Diversified Revenue GrowthDespite late-August selling pressure, shares are up 10% over the past month following strong second-quarter earnings reported earlier in August. Second-quarter adjusted net revenue jumped 31% year-over-year to $758 million, while net income surged to $97 million, well ahead of Wall Street estimates.
Growth was anchored by record expansion in non-lending business segments, specifically fee-based technology platform services and financial services products, which helped management raise its full-year guidance for net revenue and tangible book value growth.
Management Commentary Highlights Financial Platform ScaleDuring SoFi’s second-quarter earnings call, Chief Executive Officer Anthony Noto emphasized how the company’s multi-product strategy and digital banking model continue to scale:
"Our Q2 performance demonstrates the structural advantage of our enterprise model. By continuing to drive record member additions across our Financial Services and Tech Platform segments, we are delivering sustainable profit growth and diversifying our revenue streams beyond traditional lending, positioning SoFi to compound value through any rate environment."
SOFI Shares Edge Lower Monday MorningSOFI Price Action: SoFi Technologies shares were down 1.38% at $17.81 at the time of publication on Monday, according to Benzinga Pro data.
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Former Visa executive Kathleen Pierce-Gilmore is three months into her new role as president of SoFi Technology Solutions. The premise guiding her strategy is that banks, credit unions and software platforms each know their customers in different ways, and SoFi can provide the financial technology to help them act on that knowledge.
For example, a community bank, credit union or software platform may have customer knowledge SoFi doesn’t. And SoFi Technology Solutions can provide the accounts, payments, lending and money-movement infrastructure behind the financial products they offer.
In short: apply a range of technology to different customer needs. Pierce-Gilmore discussed that approach in her first official interview in her new role, joining PYMNTS CEO Karen Webster for a Monday Conversation. Her shorthand for the model is to serve as she put it, as the “AWS of financial solutions.”
The analogy reflects that range SoFi has assembled. The company spans account and ledger capabilities, debit, credit and prepaid processing, lending through Peach, money movement including ACH, FedNow and wires, and functions such as fraud and disputes. Pierce-Gilmore’s objective is to make those capabilities usable in different combinations depending on what a client is trying to provide.
“Anytime someone is creating a financial solution, it is just a matter of putting certain ingredients together,” Pierce-Gilmore told Webster. The strategy depends in part on which customers need those ingredients and what they’re trying to build.
Pierce-Gilmore divides prospective customers into two broad groups. Community banks, credit unions and other financial institutions have financial services at the center of the customer relationship. A second group includes companies whose primary business is something else but whose relationship with customers can create a useful context for providing financial services.
A vertical software provider illustrates the difference. Pierce-Gilmore cited software used by her hairdresser that can see appointments, prices, repeat customers, employees and capacity. Those operating data can inform more than the initial decision to extend working capital. Pierce-Gilmore said the same context can inform repayment and forecasting, allowing the provider to serve the business with information a conventional financial provider may not have.
Banks and credit unions bring different advantages. A community bank may understand a particular geography and its businesses. A credit union may know members through an employer, profession or affinity. Pierce-Gilmore’s distinction isn’t about which model has better information. It is about recognizing that different customer relationships produce different information and therefore different requirements from the technology underneath the financial product.
That thinking is also informed by a recent setback.
SoFi’s Technology Platform business declined 23% year over year in the second quarter after losing a large client. Pierce-Gilmore said the client had made financial services central to its own business and eventually decided to build internally much of the technology it had previously obtained from SoFi.
“It did leave a hole,” she said.
Pierce-Gilmore said the experience has influenced how she thinks about customer segments. She wants clients whose need for outside technology can endure as they become larger and more sophisticated.
“We want to work with clients where it’s a very long-term partnership, where we can continue to support them as they grow and evolve,” she said.
Seeing the Technology From the Client Side Pierce-Gilmore’s new role has also changed her vantage point on a problem she encountered throughout her career: financial institutions can decide to modernize and still struggle with the execution.
SoFi is going through its own core conversion. Pierce-Gilmore now sits in internal meetings where product, technology and management teams are dealing with migration and regulatory requirements rather than seeing those issues only from the provider side.
“I get to be in the room when the client is going through this experience,” she told Webster. Pierce-Gilmore said SoFi Technology Solutions can incorporate what it learns into its own migration and compliance capabilities.
“Even when you have the courage and you are taking brave steps forward and you’re taking those risks, it’s really freaking hard,” Pierce-Gilmore said. “It’s complex. There’s a lot of pressures.”
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Webster asked how that experience changes Pierce-Gilmore’s responsibility for enabling not only SoFi but partners that want to provide financial capabilities within their own ecosystems.
The answer is showing up in practical requirements around migration, compliance and implementation.
Consumer behavior is changing the requirements as well.
SoFi Technology Solutions’ Q2 debit data point to consumers using debit across a wider range of purchases rather than separating debit and credit by category. Card-on-file represents 25% of transactions and more than 30% of debit dollars on the platform. The numbers point to another change in debit: more spending can originate from the account without the consumer making a fresh decision to present the card for every purchase.
Webster noted that debit itself now includes features that can alter how consumers use it, including rewards and the ability to pay over time.
Pierce-Gilmore puts those developments within a broader financial-health framework of “spending less than you make and investing the rest.” For providers, however, the immediate challenge is supporting more ways for consumers to use the same underlying account.
Artificial intelligence agents could add another variation.
Pierce-Gilmore doesn’t expect agentic commerce to require a separate payments architecture. She does expect existing systems to distinguish between transactions initiated by people and those initiated on their behalf by agents. Credentials, fraud controls and disputes are among the areas that could be affected.
Disputes provide a concrete example. Evidence used to resolve a claim today can include what a consumer ordered, what a merchant delivered and records surrounding the transaction. Delegating the purchase to an AI agent changes the record of who made which decision.
“When it’s an agent, it’s a different kind of evidence,” Pierce-Gilmore said.
Pierce-Gilmore expects the next six to 12 months to begin showing whether the pieces she calls financial “ingredients” can work as the broader platform she envisions. She wants live examples of clients using combinations of SoFi Technology Solutions’ capabilities to serve customers they already know.
Watch the full interview with Kathleen Pierce-Gilmore to learn more about:
How customer data held by software platforms can inform financial products for small businesses. What SoFi’s own core conversion is teaching its technology business about migration and compliance. Why AI agents could require changes to credentials, fraud controls and dispute evidence.
SAN FRANCISCO--(BUSINESS WIRE)--SoFi Technologies, Inc. (NASDAQ: SOFI), the everything app for digital financial services, today announced that it will participate in the Goldman Sachs Communacopia & Technology Conference. SoFi's CEO, Anthony Noto, is scheduled to speak on a moderated fireside chat discussion on Tuesday, September 8, 2026. Full session details for the conference appearance is as follows: Goldman Sachs Communacopia & Technology Conference Date: September 8, 2026 Time: 10.
SoFi Technologies Inc. (NASDAQ:SOFI) stock rose more than 3% Tuesday, outperforming a broader financial sector that finished nearly flat, as shares extended a rally that has taken them back above their short- and intermediate-term trend lines.
SoFi Technologies stock is charging ahead with explosive momentum. Why is SOFI stock surging? SoFi Reclaims Short-Term Trend Lines, But the 200-Day Still LoomsSoFi’s stock is trading above its 20-day moving average of $17.93, its 50-day average of $17.75 and its 100-day average of $17.29, an alignment that keeps the near-term trend pointed higher and gives dip-buyers a clean set of levels to watch. The bigger test sits higher up: shares remain below their 200-day moving average of $20.40, a level that tends to act like gravity on the stock until price can reclaim it and hold there. Until that happens, rallies in SoFi can still feel choppy even when the underlying move is real, since the broader market hasn’t fully committed to the stock’s longer-term trend just yet.
Momentum is improving on a shorter-term basis. The MACD line is above its signal line with a positive histogram, suggesting selling pressure is easing and the stock’s latest upswing has more follow-through than its prior pullback. The moving-average picture is still mixed, though: the 20-day average sitting above the 50-day average is a bullish near-term signal, but a death cross from March, when the 50-day average fell below the 200-day, is a reminder that the longer-term trend hasn’t fully reset.
SoFi Outperforms Financials as Sector LagsSoFi’s move stood out because the broader Financials sector barely budged, down 0.03% on the day, leaving a gap of more than three percentage points between the stock and its own sector. That kind of divergence typically points to demand specific to the stock rather than a sector-wide move.
Zooming out, Financials have actually been strong recently, up 2.34% over the past 30 days and 13.20% over the past 90 days, but Tuesday’s session wasn’t part of that broader push. It was SoFi showing relative strength while the rest of the sector stayed in the middle of the pack, the kind of action that can draw in additional buying interest if the stock keeps clearing key levels with consistency.
Resistance sits at $19, a round-number zone that has often become a decision point for short-term traders. Support sits at $15, a prior demand area near the lower end of the stock’s 52-week range where buyers have stepped in and defended the tape before.
SOFI Shares Are Trending HigherSOFI Price Action: SoFi shares were up 3.18% at $18.82 at the time of publication on Tuesday, according to Benzinga Pro data.
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The stablecoin trade is escaping the crypto exchanges and hunting for new targets in fintech, and not every fintech name is getting pulled along for the ride. Which ones are catching the bid and why tells a sharper story than…
The stablecoin trade is spilling out of pure-crypto names and into fintech on Tuesday, with the SoFiUSD link putting SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) squarely in the same bid that’s lifting exchanges. This move looks like sector rotation, not a company-specific catalyst.
The ARK Blockchain & Fintech Innovation ETF (CBOE:ARKF) is up 2% to $46.44 midday Tuesday, outpacing the Invesco QQQ Trust (NASDAQ:QQQ), which is up 0.42% to $709.32. That gap is an indication that this is a crypto-linked fintech move rather than a broad tech rally.
SoFi Technologies stock is up 3% to $18.83 on the session. Meanwhile, Coinbase Global (NASDAQ:COIN) shares are climbing 5% to $188.11, moving harder on the same trade as the crypto-native exchange with the most direct stablecoin exposure.
Stablecoin Trade Reaches Fintech Rails The Tuesday bid ties back to SoFi Technologies now carrying a stablecoin, which is why the shares are trading in sympathy with the crypto complex. SoFi began settling its trading business in SoFiUSD during Q2 2026, and SoFiUSD is backed by cash at the Federal Reserve.
SoFi describes SoFiUSD as the first stablecoin issued by a nationally chartered bank on a public, permissionless blockchain, with roughly $300 million in circulation at the end of Q2 2026. Coinbase Global competes through USDC, and average USDC held in Coinbase products reached a record $20 billion in Q2 2026. That’s the plumbing this rotation is chasing.
Where the Fintech Peers Diverge The differentiation shows up in Affirm Holdings (NASDAQ:AFRM), the BNPL fintech with no crypto rail. Affirm Holdings stock is barely moving, up 0.6% to $77.36, despite trading in the same fintech neighborhood as SoFi Technologies. That’s the cleanest evidence today’s bid is running through stablecoins, not fintech broadly.
Also participating are Robinhood Markets (NASDAQ:HOOD), which carries direct crypto exposure, and PayPal Holdings (NASDAQ:PYPL), which operates PYUSD and expanded PYUSD access to 70 markets in March. Both are getting pulled into the same rotation, though the intensity varies with how directly each business touches stablecoin economics.
Session Move Versus Year-to-Date Scorecard The Tuesday bid arrives after painful drawdowns for both featured names. SoFi Technologies stock was down 30% year to date through Monday’s close, and Coinbase Global stock was down 21% year to date through Monday’s close. Today’s pop is a bounce off deep discounts, not a fresh breakout.
The shares trade at a forward P/E ratio of 25x against the industry’s 17x, so they still carry a growth-name premium. The company’s Q2 2026 fee-based revenues reached $472 million, or 39% of adjusted net revenues, up 22% from the prior quarter. The company’s Financial Services and Technology Platform revenues together were about $551 million, or 46% of adjusted net revenues, giving the market a non-lending story to underwrite the stablecoin optionality.
What to Watch Now Traders may want to keep an eye on whether SoFi Technologies stock holds above $18 into Tuesday’s close, since a fade would signal the crypto-fintech link is still episodic rather than structural. Coinbase Global stock has moved with USDC balances and Base activity all summer, so follow-through in stablecoin flow data over the next few sessions matters more than today’s tape.
Investors sizing their exposure here should treat SoFi Technologies and Coinbase Global as high-beta, crypto-correlated positions in their portfolios. A satellite allocation, rather than a core one, matches the volatility profile of both names, and we wrote a free playbook on fencing off that kind of speculation with just 5% of a portfolio here. The next scheduled catalyst is the Q3 2026 earnings cycle in late October, when SoFi Technologies and Coinbase Global will update stablecoin metrics.
Contact [email protected] for any questions or corrections.
Key Takeaways SoFi began settling trading in SoFiUSD as Big Business Banking enabled 24/7 transactions on its network.About $300 million of SoFiUSD was in circulation, creating an initial liquidity pool for the ecosystem.Fee-based revenue reached $472 million, as payments and technology services could support further growth. SoFi Technologies’ (SOFI - Free Report) stablecoin strategy is moving from product launch to real-world payments. During the second quarter of 2026, SoFi began settling its trading business in SoFiUSD, while Big Business Banking began processing transactions on the SoFi Exchange Network. That gives commercial clients the ability to move money in real time, 24/7, within SoFi’s regulated banking environment.
SoFiUSD is backed by cash at the Federal Reserve, giving it zero credit, liquidity or duration risk. The company also describes SoFiUSD as the first stablecoin issued by a nationally chartered bank on a public, permissionless blockchain. Together, those features give SOFI a regulated base as it tried to build faster and lower-cost payment rails.
The strategy becomes more interesting when combined with Big Business Banking. Commercial clients can hold funds in insured business deposit accounts, move fiat and digital assets through API-driven payments and convert between them on one platform. Roughly $300 million of SoFiUSD was already in circulation at the end of the quarter, providing the ecosystem with an initial pool of liquidity.
For SOFI, the key question is whether payments can become a meaningful fee-based business. In second-quarter 2026, fee-based revenues reached $472 million or 39% of adjusted net revenues, up 22% from the prior quarter. Financial Services and Technology Platform revenues together accounted for about $551 million or 46% of adjusted net revenues. Management expects Financial Services and Technology Platform revenues to exceed 50% of total revenues over time.
SoFiUSD could support that shift if activity grows, as the company sees payments, banking infrastructure and technology services as interconnected opportunities. Big Business Banking also expands the enterprise offering SoFi Tech Solutions’, potentially adding fee revenues and net interest income.
How Are Competitors Faring?PayPal Holdings (PYPL - Free Report) is a key SoFi competitor in digital finance, operating PYUSD, its U.S.-dollar stablecoin, across payments, transfers and merchant settlement. In March 2026, PayPal expanded PYUSD access to 70 markets, strengthening its cross-border proposition. Its August merchant-settlement feature also offers eligible merchants 4% annual rewards on PYUSD balances.
Coinbase Global (COIN - Free Report) competes with SoFi through crypto trading, payments, custody and stablecoin infrastructure centered on USDC. Recent deals include MassPay’s June 2026 integration for global USDC payouts and Marex’s July 2026 adoption of USDC for regulated derivatives collateral. Coinbase reported that the average USDC held in its products reached a record $20 billion in the second quarter of 2026.
SOFI’s Price Performance, Valuation, and EstimatesShares of SOFI have gained 15.2% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 24.63X, well above the industry’s 16.98X. It carries a Value Score of F.
Image Source: Zacks Investment Research
SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past month.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoFi remains a Strong Buy, supported by steady top- and bottom-line growth and improving fundamentals. SOFI has outperformed the benchmark, rising 15% recently, and trades at a 15-month forward P/E of 23x. Eleven consecutive quarters of meeting or beating analyst expectations bolster confidence in management and justify a premium valuation.
SoFi Technologies, Inc. (NASDAQ:SOFI – Get Free Report) has received a consensus rating of “Hold” from the twenty-one analysts that are currently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $22.4167.
A number of research firms recently issued reports on SOFI. Mizuho decreased their price objective on SoFi Technologies from $29.00 to $22.00 and set an “outperform” rating on the stock in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $18.00 target price on shares of SoFi Technologies in a research note on Thursday, April 30th. TD Cowen reduced their target price on SoFi Technologies from $24.00 to $18.00 and set a “hold” rating for the company in a report on Thursday, April 30th. Morgan Stanley decreased their price target on SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating on the stock in a research report on Thursday, July 30th. Finally, Needham & Company LLC lowered their price target on shares of SoFi Technologies from $25.00 to $24.00 and set a “buy” rating on the stock in a report on Thursday, July 30th.
Check Out Our Latest Analysis on SOFI
Insider Buying and Selling In related news, CTO Jeremy Rishel sold 102,123 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $17.78, for a total transaction of $1,815,746.94. Following the sale, the chief technology officer owned 895,089 shares of the company’s stock, valued at approximately $15,914,682.42. This represents a 10.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Kelli Keough sold 11,286 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $18.00, for a total transaction of $203,148.00. Following the completion of the sale, the executive vice president owned 356,442 shares in the company, valued at $6,415,956. This represents a 3.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,505 shares of company stock worth $2,418,096 in the last ninety days. 2.50% of the stock is currently owned by insiders. Institutional Investors Weigh In On SoFi Technologies Institutional investors and hedge funds have recently made changes to their positions in the business. Valley Wealth Managers Inc. bought a new stake in SoFi Technologies during the fourth quarter worth about $25,000. Vermillion Wealth Management Inc. raised its holdings in shares of SoFi Technologies by 283.1% during the 4th quarter. Vermillion Wealth Management Inc. now owns 1,000 shares of the company’s stock valued at $26,000 after buying an additional 739 shares in the last quarter. Reflection Asset Management purchased a new position in shares of SoFi Technologies during the 4th quarter valued at about $28,000. Raiffeisen Bank International AG bought a new stake in SoFi Technologies in the 4th quarter worth approximately $34,000. Finally, American Capital Advisory LLC lifted its position in SoFi Technologies by 456.7% in the 4th quarter. American Capital Advisory LLC now owns 1,297 shares of the company’s stock worth $34,000 after buying an additional 1,064 shares during the last quarter. Hedge funds and other institutional investors own 38.43% of the company’s stock.
Key Stories Impacting SoFi Technologies Here are the key news stories impacting SoFi Technologies this week:
Positive Sentiment: SoFi’s broader fintech strategy is attracting investors, with the company increasingly positioned as an integrated “everything app” spanning lending, deposits, investing and financial technology services. SoFi Technologies Jumps As Fintech Story Expands Positive Sentiment: Analysts and investors remain encouraged by steady revenue and earnings growth. SoFi has exceeded or met expectations for 11 consecutive quarters, while its latest results showed revenue growth of 42.5% year over year and EPS above consensus. SoFi: The Everything App Thesis Is Playing Out Positive Sentiment: The SoFiUSD stablecoin initiative is moving toward real-world payments, including 24/7 transfers and an initial $300 million liquidity pool. The announcement has linked SOFI to renewed investor interest in stablecoins and digital-asset infrastructure. SoFi Technologies Stablecoin Push Positive Sentiment: SOFI recently outperformed the broader financial sector, with technical momentum improving as shares moved back above their 50-day and 200-day trend lines. Sofi Stock Is Trending: A Key Level Just Came Into Play Neutral Sentiment: Reported short interest was zero shares, indicating no meaningful short-position data to provide an additional bullish or bearish signal. Neutral Sentiment: Analyst sentiment is mixed: the consensus rating is “Hold,” but the average price target of $22.42 remains above recent trading levels. Piper Sandler initiated coverage with an “Overweight” rating and a $22 target. Negative Sentiment: Executive Vice President Kelli Keough sold 11,286 shares worth approximately $203,000. The transaction was made under a pre-arranged Rule 10b5-1 plan and represents only a modest reduction in her holdings, limiting its significance but still creating a minor overhang. Kelli Keough Sells SoFi Shares Negative Sentiment: Valuation risk remains: SOFI trades at roughly 23 times forward earnings and has a high beta, leaving the stock sensitive to profit-taking, interest-rate expectations and execution risk surrounding new products. SoFi Technologies Stock Down 0.8% SoFi Technologies stock opened at $18.84 on Thursday. SoFi Technologies has a 1-year low of $14.88 and a 1-year high of $32.73. The firm has a market capitalization of $24.33 billion, a price-to-earnings ratio of 39.25 and a beta of 2.17. The company has a current ratio of 0.74, a quick ratio of 0.10 and a debt-to-equity ratio of 0.30. The firm has a 50 day simple moving average of $17.81 and a 200 day simple moving average of $17.57.
SoFi Technologies (NASDAQ:SOFI – Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.01. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The business had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter in the previous year, the firm posted $0.08 EPS. The business’s revenue for the quarter was up 42.5% compared to the same quarter last year. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. On average, analysts predict that SoFi Technologies will post 0.61 earnings per share for the current year.
SoFi Technologies Company Profile (Get Free Report)
SoFi Technologies, Inc (NASDAQ: SOFI) is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company’s core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.
SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.
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The SoFi savings app shows a clean 3.80% APY on a $25,000 balance, but the number it quietly implies for the year and the number the account will actually earn are not the same figure.
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On August 20, 2026, I moved $25,000.00 into a SoFi (NASDAQ:SOFI | SOFI Price Prediction) Checking and Savings account. The app shows $25,000.00 in available savings, $0.00 in Vaults, and a current APY of 3.80%, and here’s what it earns me now.
At 3.80% APY, a $25,000 balance earns $950 over twelve months, or $79.17 credited each month. That is the headline number the app is quietly promising. It is also not what I will earn across a full year, and I will get to why below.
I chose a savings account instead of a brokerage cash sweep because I wanted a bank rate, FDIC coverage on the entire balance, and same-day access without a settlement cycle. This is short-horizon money, not an investment position.
Arithmetic Without the Marketing Gloss The math is straightforward. A stated APY of 3.80% applied to $25,000 is $950 in interest over twelve months. Divided across twelve months, that is $79.17 posting to the account each month.
A common trap to avoid. APY already incorporates compounding. It is the all-in annual figure. If you multiply $25,000 by 3.80% you get $950, and that is the answer. Do not layer a separate compounding adjustment on top of it. That double-counts. The daily balance and monthly credit produce a figure that already agrees with the stated APY. No further math is needed.
How the Rate Is Earned The base rate is conditional. To keep the 3.10% APY on savings, the account has to receive either an eligible direct deposit or at least $5,000 in qualifying deposits every 31 days. Miss the window and the rate drops to a standard, much lower savings tier.
The account has no minimum balance requirement and no monthly account, service, or maintenance fees. But the yield itself is conditional on activity. That is the trade SoFi is offering. A rate above what large traditional banks pay on savings, in exchange for a monthly deposit hurdle that has to be met on the calendar, not on average.
What Sits Behind the 3.80% The 3.80% is a limited-time boost of 0.70% that runs for up to six months. After that, the rate reverts to the 3.10% base.
Blend that over a year. Six months at 3.80% on $25,000 comes to $475. Six months at 3.10% comes to $387.50. Add them and the actual twelve-month interest is $862.50, an effective blended yield of 3.45%.
So the $950 figure the app implies is a snapshot, not a forecast. The number I actually plan on is $862.50. There is more to say about the promotional structure, the qualification windows, and what happens if a direct deposit lands late. The next article in this series takes that fine print apart in detail. This one is about getting the arithmetic on the table.
Why the Account Still Earns Its Keep Even at a 3.45% blended yield, the account compares well against what most Americans have their cash in. FDIC insurance runs through SoFi Bank, N.A. up to the standard limits. There is no minimum balance, no service fee, and no maintenance fee. The money is liquid same day. For a cash cushion I expect to touch inside twelve months, those features matter as much as the yield.
Consider the alternative most households actually use. The FDIC national average yield on a 12-month CD is 1.71% as of August 1, 2026, and the national average passbook savings rate sits well below that. A rate in the mid-3s beats those by a wide margin even after the promo period rolls off, and unlike a CD, the SoFi balance stays liquid.
Contact [email protected] for any questions or corrections.
Key Takeaways SoFi Plus reached 206,000 paid subscribers after relaunching in the second quarter of 2026.About 85% of subscribers were existing members, and 25% added another product afterwards.SOFI aims for 1 million members within a year, implying about $120 million in annual revenue. SoFi Technologies (SOFI - Free Report) is betting that customers will pay for more value inside its financial services app. The initial numbers for SoFi Plus are encouraging. After relaunching the premium membership in the second quarter of 2026, SoFi ended the period with 206,000 paid subscribers, signaling solid early demand.
The company said most of its SoFi Plus subscribers are existing members. About 85% of subscribers were already using SoFi, according to management. That matters because the subscription is designed to increase awareness and use of other products rather than simply bring new customers into the platform.
There are early signs that the strategy is working. Management said 25% of existing members who joined SoFi Plus added another product afterwards, with SoFi Invest benefiting the most. SoFi Plus also generated more than $24 million in annualized revenues after its first quarter under the paid subscription model.
The opportunity lies within a fast-growing customer base. SOFI Technologies added a record 1.1 million members during second-quarter 2026, taking total membership to 15.8 million. It also added 2.2 million products, while cross-buy reached 51%, meaning more than half of new products were opened by existing members.
Management now wants SoFi Plus to expand significantly. CEO Anthony Noto said he would be disappointed if membership does not reach one million within a year, which would imply about $120 million in annual revenues. Scaling toward that level will depend on whether enhanced rates, rewards and product benefits continue to convince members to pay.
How Are Competitors Faring?Robinhood Markets (HOOD - Free Report) is emerging as a formidable SoFi competitor by expanding beyond trading into banking, retirement, advisory, crypto and private markets. Its June 2026 acquisition of WonderFi added Canadian digital-asset capabilities and further broadened international reach. Funded customers reached a record 28.4 million in second-quarter 2026, up 1.9 million year over year.
Chime Financial, Inc. (CHYM - Free Report) is intensifying competition with SoFi by deepening its primary-account relationship and expanding into investing, lending and employer-linked financial services. In second-quarter 2026, Chime Enterprise signed Allied Universal and another national retailer as employer partners. Active Members rose 20% year over year to 10.4 million, adding 1.7 million net members.
SOFI’s Price Performance, Valuation, and EstimatesShares of SOFI have gained 13.9% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 25.41X, well above the industry’s 17.02X. It carries a Value Score of F.
Image Source: Zacks Investment Research
SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past month.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of SoFi Technologies Inc. (NASDAQ:SOFI) are dipping slightly Friday morning. The pause follows a 13% monthly surge, driven by expanding product adoption and favorable crypto-rail tailwinds.
SoFi Technologies stock is showing downward pressure. What’s ahead for SOFI stock? Paid Membership Momentum and Crypto Plumbing Drive SentimentMarket action on Friday continues to reflect investor optimism surrounding two key operational catalysts introduced alongside its strong second-quarter financial foundation.
The company has been increasingly highlighting early momentum for a revamped paid membership tier, SoFi Plus, which reached 206,000 paid subscribers following its second-quarter 2026 relaunch, 85% of whom were existing members, with 25% adding additional financial products after joining.
Management aims to hit 1 million members within a year, representing a projected $120 million in recurring annual revenue. Sentiment also remains bolstered by SoFi’s expansion into digital asset settlement via SoFiUSD, the first stablecoin issued by a nationally chartered bank on a public blockchain, which reached roughly $300 million in circulation by the end of the second-quarter to capture cross-border and settlement volume efficiencies.
Strong Q2 Earnings Inflection Anchors Upward TrendThe recent momentum builds on SoFi’s second-quarter financial report released on July 29, where the company delivered record net revenue of $1.21 billion (up 42.5% year-over-year) and adjusted EPS of 12 cents, beating Wall Street consensus estimates.
SoFi added a record 1.1 million net new members during the quarter to reach a total member base of 15.8 million, prompting management to raise its full-year 2026 net revenue guidance to a range of $4.75 billion to $4.85 billion.
SOFI Price Action: SoFi Technologies shares were down 2.14% at $18.77 at the time of publication on Friday, according to Benzinga Pro data.
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It has been about a month since the last earnings report for SoFi Technologies, Inc. (SOFI - Free Report) . Shares have added about 16.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SoFi Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
SoFi Technologies' Q2 Earnings Meet EstimateSoFi delivered second-quarter 2026 adjusted earnings per share (EPS) of 12 cents. The metric outpaced the Zacks Consensus Estimate by 9.1%. Adjusted net revenues increased 40% year over year to $1.21 billion. The figure surpassed the Zacks Consensus Estimate of $1.11 billion by 8.3%. Total net revenues were $1.22 billion, rising 43% year over year.
Profitability also improved despite continued investment in growth initiatives. Adjusted EBITDA increased 44% to $357.8 million, and adjusted EBITDA margin reached 30% compared with 29% in the prior-year quarter.
Net interest margin remained healthy at 5.98%, up 12 basis points year over year and 4 basis points sequentially. This supported a 52% increase in net interest income to $788.2 million.
Management highlighted second-quarter 2026 as the company’s 19th consecutive quarter meeting the Rule of 40 benchmark. The Rule of 40 score was 70, based on 40% adjusted net revenue growth and a 30% adjusted EBITDA margin.
Member Growth & Cross-Buy AccelerateMember acquisition remained one of the strongest indicators of platform momentum. SoFi added 1.1 million new members in the second quarter of 2026, bringing total members to 15.8 million, up 35% year over year.
Product growth was even stronger. The company added a record 2.2 million products in the second quarter of 2026, bringing total products to 24.4 million, up 42% year over year. Products per member reached an all-time high of 1.54.
The reported quarter marked the first time SoFi added twice as many products as members. Existing members opened 51% of new products, compared with 35% in second-quarter 2025, showing improving cross-buy trends across the platform.
Management pointed to SoFi Plus and SoFi Coach as important drivers of deeper engagement. SoFi Plus surpassed 200,000 paid members, while SoFi Coach generated more than 500,000 conversations with more than 90% positive feedback.
Lending Remains the Main Growth DriverThe Lending segment continued to drive consolidated performance in second-quarter 2026. Adjusted net revenue increased 59% year over year to $711.7 million, while contribution profit rose 63% to $399 million.
Total loan originations reached a record $14.8 billion, up 69% year over year. Personal loan originations increased 54% to $10.7 billion, student loan originations surged 170% to $2.7 billion and home loan originations rose 74% to $1.4 billion.
Credit metrics remained supportive. The personal loan net charge-off rate was 2.62%, down 21 basis points year over year and 41 basis points sequentially. Student loan net charge-offs were 0.61%, down 33 basis points year over year.
The loan platform business also remained an important growth lever. SoFi sold or transferred $4.1 billion of personal and home loans, including $3.1 billion through the loan platform business.
Financial Services Adds DiversificationThe Financial Services segment continued to broaden SoFi’s revenue base. Net revenues increased 29% year over year to $466.3 million, supported by deposit growth, interchange, brokerage and referral activity.
Contribution profit rose 13% year over year to $212.7 million. Contribution margin declined to 46% from 52% in prior-year period, reflecting higher spending and investment in product innovation.
As of June 30, 2026, deposits reached $45.5 billion, up 21% from Dec. 31, 2025. Deposits also increased $5.3 billion sequentially, supporting SoFi’s funding base and balance sheet flexibility.
Transactional revenue trends were also strong. Interchange revenues increased 55% year over year, while brokerage revenues rose roughly 2.5 times year over year as SoFi Invest gained traction.
Technology Platform Still Faces PressureThe Technology Platform segment remained the weakest area in the reported quarter. Net revenues declined 23% year over year to $84.5 million, reflecting the impact of a large client that transitioned off the platform before year-end 2025.
Contribution profit fell 65% year over year to $11.8 million. Contribution margin declined to 14% from 30% in prior-year quarter, underscoring the near-term pressure from lost scale and transition costs.
Technology Platform accounts totaled 135 million, down 16% year over year but up 2 million sequentially. The sequential improvement suggests some stabilization, though the segment continues to lag SoFi’s stronger lending and financial services businesses.
Management relaunched the business under the unified SoFi Tech Solutions brand. The platform now emphasizes processing, core ledger, payments hub and risk and fraud capabilities.
Balance Sheet ImproveSoFi ended the second quarter with $60.95 billion in total assets, up from $50.66 billion at Dec. 31, 2025. Loans held for sale increased 30% from year-end 2025 to $29.74 billion, reflecting continued loan origination growth.
Capital levels remained strong. The total risk-based capital ratio was 18.8%, while available liquidity was $13.7 billion. Cash flow from operations was negative $6.2 billion, reflecting a high loan pipeline build.
2026 Guidance RaiseManagement raised full-year 2026 adjusted net revenue guidance to $4.75 billion to $4.85 billion, implying 32-35% year-over-year growth. The prior outlook implid approximately 30% growth.
The company maintained full-year 2026 guidance for adjusted EBITDA of approximately $1.6 billion, adjusted net income of approximately $825 million and adjusted EPS of approximately 60 cents. Management also continues to expect total members to increase by at least 30% year over year in fiscal 2026.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, SoFi Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, SoFi Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSoFi Technologies belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Rithm (RITM - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Rithm reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.60 for the same period compares with $0.54 a year ago.
Rithm is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.8%.
Rithm has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Is SoFi Technologies (SOFI -5.84%) really a disruptive fintech, or just a bank in digital clothing? Explore how deposit costs, cross‑sell, and customer acquisition economics shape its true value. Watch the video below to see what investors should track next.
*This video was published on Aug. 6, 2026.
Danny Vena, CPA has positions in SoFi Technologies. Jason Hall has positions in SoFi Technologies. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
On August 24, 2026, SoFi Technologies Inc
SOFI -3.54% 69
shares fell 3.5%, trading at $18.24. The stock has experienced a 52-week range of $14.88 to $32.73, indicating significant volatility over the past year.
GF Value™ verdict: Current price of $18.24 is 1.2% above GF Value of $18.02. GF Score™ is 69/100, indicating an above-average performance compared to peers. Notable signal: Insider activity shows net selling of $11.7M over the past 12 months. Is SOFI Overvalued or Undervalued? Given that SoFi Technologies is currently unprofitable and cash-flow negative, a traditional Price-to-Earnings (P/E) analysis is less applicable. Instead, we look at the Price-to-Sales (P/S) ratio, which historically hovers around 4.2x. With the current share price of $18.24, SOFI's valuation reflects a heightened market perception compared to its historical P/S. Although the GF Value™ indicates that the stock is fairly valued at $18.02, this should be regarded as a directional warning rather than a precise fair-value target, given the company's current state of unprofitability. Therefore, the small margin of safety and the risk of potential overvaluation should be carefully considered.
How Does SOFI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 38.0x 44.2x Forward P/E 30.4x N/A The current P/E of 38.0x is notably below its 5-year median of 44.2x, suggesting that the stock may be trading at a discount compared to its historical valuation. This P/E analysis aligns with the GF Value™ verdict of fair valuation, indicating a cautious perspective on the company's current price level.
What Does SOFI's GF Score™ Tell Us? GF Score™ is a holistic measure of a stock's financial health and growth potential based on several metrics. SOFI's score of 69/100 indicates an above-average standing in its sector. The strongest sub-rank is its Growth Rank at 7/10, while the weakest is its Profitability Rank at 2/10, which reflects ongoing challenges in generating profit.
Metric Rating GF Score™ 69 Financial Strength 4/10 Profitability 2/10 Growth 7/10 Valuation 7/10 Momentum 7/10 Overall, the combination of a strong growth outlook and moderate valuation metrics suggests a mixed picture for SOFI. While the growth potential is encouraging, the low profitability score indicates that significant challenges remain in achieving consistent earnings.
What Are Gurus and Insiders Doing with SOFI? Currently, five gurus hold SOFI shares, with two increasing their positions and three trimming their holdings in recent quarters. This activity presents a nuanced view of the stock's attractiveness among knowledgeable investors. In terms of insider transactions, there has been significant net selling of $11.7M over the past year, with insiders buying $2.5M and selling $14.1M. This pattern of net selling can be interpreted as a lack of confidence in the near-term prospects of the company, which investors should consider carefully.
What This Means for Investors In summary, SoFi Technologies Inc appears to be fairly valued based on the GF Value™ metric, although the price may reflect some overvaluation risk given its unprofitable status and recent insider selling. Investors should remain cautious as the company's growth potential is offset by profitability concerns and market volatility. For further insights on SOFI, visit the SoFi Technologies Inc
SOFI -3.54% 69
stock page and explore the GF Value™ page for additional analysis.
Frequently Asked Questions What is SOFI's GF Score™?
SOFI's GF Score™ is 69/100, indicating an above-average performance among its peers, reflecting solid growth prospects but challenges in profitability.
Is SOFI overvalued or undervalued?
SOFI is considered fairly valued according to the GF Value™, with a current price slightly above the estimated intrinsic value.
What is SOFI's P/E ratio?
SOFI has a P/E (TTM) ratio of 38.0x, which is below its historical median of 44.2x, suggesting it may be undervalued relative to its past performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Allworth Financial LP purchased a new stake in SoFi Technologies, Inc. (NASDAQ:SOFI – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm purchased 126,401 shares of the company’s stock, valued at approximately $2,266,000.
Several other institutional investors also recently bought and sold shares of the company. Valley Wealth Managers Inc. acquired a new stake in SoFi Technologies during the 4th quarter worth $25,000. Vermillion Wealth Management Inc. raised its position in shares of SoFi Technologies by 283.1% in the fourth quarter. Vermillion Wealth Management Inc. now owns 1,000 shares of the company’s stock valued at $26,000 after buying an additional 739 shares during the last quarter. Reflection Asset Management purchased a new position in shares of SoFi Technologies in the fourth quarter worth about $28,000. American Capital Advisory LLC lifted its stake in shares of SoFi Technologies by 456.7% in the fourth quarter. American Capital Advisory LLC now owns 1,297 shares of the company’s stock worth $34,000 after buying an additional 1,064 shares in the last quarter. Finally, Cornerstone Planning Group LLC boosted its position in SoFi Technologies by 232.1% during the first quarter. Cornerstone Planning Group LLC now owns 2,099 shares of the company’s stock worth $34,000 after acquiring an additional 1,467 shares during the last quarter. 38.43% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth A number of research firms have recently issued reports on SOFI. Truist Financial upped their price target on SoFi Technologies from $18.00 to $19.00 and gave the company a “hold” rating in a research report on Wednesday, August 12th. Needham & Company LLC reduced their price objective on SoFi Technologies from $25.00 to $24.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Weiss Ratings raised SoFi Technologies from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Mizuho cut their target price on SoFi Technologies from $29.00 to $22.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Finally, Morgan Stanley lowered their price target on shares of SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating on the stock in a research report on Thursday, July 30th. Eight investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, SoFi Technologies has an average rating of “Hold” and a consensus price target of $22.42.
Get Our Latest Stock Analysis on SOFI Insiders Place Their Bets In other SoFi Technologies news, EVP Kelli Keough sold 10,954 shares of the company’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $17.19, for a total value of $188,299.26. Following the completion of the transaction, the executive vice president owned 367,728 shares in the company, valued at $6,321,244.32. This represents a 2.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jeremy Rishel sold 102,123 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $17.78, for a total transaction of $1,815,746.94. Following the completion of the transaction, the chief technology officer owned 895,089 shares of the company’s stock, valued at $15,914,682.42. This represents a 10.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 125,219 shares of company stock valued at $2,214,948. 2.50% of the stock is owned by corporate insiders.
Trending Headlines about SoFi Technologies Here are the key news stories impacting SoFi Technologies this week:
Positive Sentiment: Bitcoin’s breakout lifted crypto-linked fintech stocks, including SoFi, as capital moved into retail brokerages and digital-asset-related companies. The rally was also supported by renewed optimism around the proposed Clarity Act, which could establish clearer U.S. cryptocurrency regulations. SoFi, Robinhood and Affirm crypto rally article Positive Sentiment: Piper Sandler awarded SoFi an Overweight rating, while another Wall Street analyst suggested the shares could rise about 20%. The bullish view reflects SoFi’s recent earnings beats, improving profitability, and an attractive valuation after the stock’s difficult first half of 2026. Piper Sandler Overweight rating article Analyst 20 percent upside article Positive Sentiment: Unusually heavy call-option activity indicated bullish short-term trading interest, with 523,615 calls purchased—approximately 36% above typical daily volume. Positive Sentiment: SoFi’s reported record $14.8 billion in loan originations points to strong demand and continued growth potential. Its diversified revenue base, deposit funding, and stronger profitability were also cited as advantages over some fintech-lending peers. SoFi loan originations article Neutral Sentiment: The lending expansion remains dependent on credit performance and funding costs. Higher interest rates could pressure loan demand, margins, and the valuation investors are willing to assign to SOFI. Negative Sentiment: Some valuation analysis indicates that SoFi trades at a premium to estimated fair value despite its strong three-year returns, limiting the margin of safety and potentially capping further upside. SoFi valuation analysis SoFi Technologies Trading Up 5.5% SOFI opened at $18.91 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.10 and a current ratio of 0.74. SoFi Technologies, Inc. has a one year low of $14.88 and a one year high of $32.73. The company has a market cap of $24.42 billion, a P/E ratio of 39.40 and a beta of 2.17. The business’s 50-day simple moving average is $17.73 and its 200-day simple moving average is $17.64.
SoFi Technologies (NASDAQ:SOFI – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.01. SoFi Technologies had a return on equity of 6.22% and a net margin of 14.78%.The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the prior year, the company posted $0.08 earnings per share. The firm’s quarterly revenue was up 42.5% compared to the same quarter last year. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. As a group, equities research analysts expect that SoFi Technologies, Inc. will post 0.61 EPS for the current fiscal year.
(Free Report)
SoFi Technologies, Inc (NASDAQ: SOFI) is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company’s core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.
SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.
Read More Five stocks we like better than SoFi Technologies Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding SOFI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for SoFi Technologies, Inc. (NASDAQ:SOFI – Free Report).
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Cboe data suggests bullish flow in SoFi Technologies (SOFI), with shares up $1.03, or 5.75%, near $18.95. Options volume more than double the daily average with 534k contracts traded and calls leading puts for a put/call ratio of 0.38, compared to a typical level near 0.45. Implied volatility (IV30) is higher by 3.3 points near 49.74,in the lowest 10% of observations over the past year, suggesting an expected daily move of $0.59. Put-call skew flattened, suggesting a modestly bullish tone.
SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) has set up attractively after a brutal first half of 2026. Our 24/7 Wall St. price target is $21, roughly a 17.3% move from the current price of $17.89. That aligns with the 20% gain some bull analysts see: this is a buy, with high model confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $17.89 24/7 Wall St. Price Target $21.00 Implied Upside 17.3% Recommendation BUY Confidence Level 90% A Rough YTD, but the Trend Is Turning SoFi shares are down 29.64% year to date and 19.03% over the last year, still 39% off the 52-week high of $32.73. The recent trend is friendlier: up 8.29% in the past month, with Piper Sandler initiating coverage this week at Overweight.
Q2 results support the turn. SoFi delivered EPS of $0.12 versus $0.1092 expected, extended its beat streak to five consecutive quarters, and posted record loan originations of $14.8 billion. Management raised full-year adjusted revenue guidance to $4.75 billion to $4.85 billion.
Why Bulls See a Breakout Ahead The bull case rests on the “everything app” flywheel. Members grew 35% YoY to 15.8 million, products grew 42%, and 51% of new products came from existing members, up from 35% a year ago. SoFi Plus crossed 200,000 paid subscribers, and CEO Anthony Noto said he would be disappointed if it were not at 1 million members generating $120 million in annual revenue within a year.
The Loan Platform Business offers real optionality: a $1 billion agreement with Sixth Street and a $3 billion deal with Basepoint Capital extend capital-light revenue into small business and home equity. If bulls are right, the bull-case path implies a one-year price of $25.57, roughly 43% upside.
What Could Go Wrong The Technology Platform segment saw revenue fall 23% YoY after a large client departure. The segment grew 13% sequentially, and the Peach Finance acquisition broadens SoFi Tech Solutions into cards and BNPL, but client concentration risk is real.
Rates pose a second concern: management now expects one to two hikes in 2026 versus two cuts baked into original guidance, which dragged full-year EPS guidance to $0.60 from an implied $0.65. The bear-case path takes SoFi to $18.16, essentially flat.
How SoFi Compares to Robinhood and LendingClub Robinhood Markets (NASDAQ:HOOD) posted Q2 EPS of $0.62 on 32% revenue growth and carries a market cap of $75.3 billion, more than 3x SoFi’s $23.1 billion. HOOD’s richer multiple on comparable growth suggests SoFi looks reasonably valued at 30x forward earnings.
LendingClub (NYSE:LC) guides FY2026 EPS to $1.80 to $1.90 with originations of $12.2 to $12.6 billion. That is below SoFi’s single quarter of $14.8 billion, and LC trades at a much thinner $2.14 billion market cap. The peer set makes our $21 target reasonable, not aggressive.
SoFi Price Prediction 2026-2030 The 24/7 Wall St. price target of $21 and buy recommendation stand, with 90% model confidence. The scale tips on origination momentum plus a re-rating catalyst from the Piper Sandler initiation.
The thesis strengthens if the Technology Platform segment shows sequential growth next quarter and net interest margin holds above 5%. The thesis weakens if benchmark rates keep grinding higher and personal-loan charge-offs push above 3%.
Year 24/7 Wall St. Price Target 2026 $19.22 2027 $22.50 2028 $25.00 2029 $27.50 2030 $29.65 These projections assume SoFi hits its medium-term guide of a 30%+ adjusted revenue CAGR and 38% to 42% adjusted EPS CAGR through 2028. Meaningful upside or downside could come from Loan Platform Business scaling or a sharp shift in the rate cycle.
Contact [email protected] for any questions or corrections.
Fintech is Friday’s sympathy trade, driven by Bitcoin‘s (CRYPTO:BTC)’s breakout pulling capital into retail brokerages and crypto-linked fintech corners. The move is uneven across the group, with crypto exposure setting the ranking.
SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) stock is up 5% to $18.89 in Friday morning trading with no company-specific news. Meanwhile, Robinhood Markets (NASDAQ:HOOD) stock is rallying 13% to $107.29, the largest mover and clearest retail-crypto proxy. At the same time, Affirm Holdings (NASDAQ:AFRM) stock is up 2% to $76.34, a softer response fitting its buy-now-pay-later profile with no meaningful crypto revenue. Also, the Global X FinTech ETF (NASDAQ:FINX) is up 3% to $27.61, landing between individual names on breadth.
Crypto Breakout Powers Retail Brokerages Robinhood Markets earns direct transaction revenue from crypto trading, so a Bitcoin bid flows straight to the top line. That mechanical link explains why HOOD stock leads Friday and why strong crypto activity spills into brokerage tickers before reaching lenders or payments names. Our earlier coverage of Friday’s brokerage move tracked the same catalyst.
SoFi has secondary crypto exposure. The company launched its own stablecoin, SoFiUSD, and began settling its trading business in SoFiUSD during Q2 2026, plus a crypto trading product. That footprint pulls SOFI stock into the trade without matching Robinhood’s magnitude.
Crypto Exposure Sets the Fintech Gradient The three companies moved by different amounts on the same session, with crypto exposure explaining the spread. HOOD stock captured the full 13% because it monetizes flow directly, while SOFI stock captured 5% because it touches crypto but leans mostly on lending and financial services. Affirm has essentially no crypto revenue line, so AFRM stock’s 2% move reflects ordinary sector drift rather than participation in the crypto trade.
That gradient matters for subsequent crypto sessions. HOOD stock tends to lead moves in both directions, SOFI stock participates on a lag, and AFRM stock requires fintech-specific catalysts to break out. Recognizing that hierarchy helps investors weigh whether a rally reflects re-rating or temporary crypto pull.
Year-to-Date Split Tells a Deeper Story SoFi Technologies stock was down 32% year to date (YTD) through Thursday’s close, the deepest drawdown of the group. A single 5% session barely dents that. Robinhood stock carried a 16% YTD drawdown, though Friday’s move narrows the gap.
Affirm Holdings stock was the only name in positive territory for the year, up 1% YTD. The gap between SoFi’s strong operating year, including record Q2 2026 loan originations of $14.8 billion and a raised 2026 adjusted net revenue guide of $4.75 to $4.85 billion, and its weak stock is the durable story. One crypto-driven session doesn’t close that gap.
That YTD split shows Bitcoin sensitivity isn’t a reliable proxy for annual performance. HOOD stock and SOFI stock both carry double-digit drawdowns despite meaningful crypto exposure, while AFRM stock sits in the green without any. Session moves and annual returns can point in opposite directions when the catalyst is a single asset class.
Fintech ETF Lands in the Middle The Global X FinTech ETF sits between Affirm and SoFi on Friday. FINX carries SoFi at 4.1% of net assets and Affirm at 3.8%, but its largest weights sit in bigger payments and brokerage names. The ETF was down 9% year to date through Thursday’s close, so a 3% session still leaves it well below where it started 2026.
That top-heavy construction dictates the fund’s move more than any single smaller fintech name does more than any single smaller fintech name. On days when a mid-weight constituent like HOOD stock surges, the ETF under-participates because payments and software names dilute the reaction.
What to Watch Now The setup rewards position discipline. Traders chasing HOOD stock on crypto beta should recognize they’re taking Bitcoin risk with a brokerage wrapper (we wrote a free playbook on speculating with just 5% of a portfolio, here), and SOFI stock inherits a diluted version without the direct transaction-revenue link.
Investors can watch for follow-through in the crypto tape into next week. Shareholders may want to keep an eye on whether Friday’s bid holds through Monday’s open, particularly on HOOD stock, where beta reads 2.321, and AFRM stock, where beta reads 3.616. Sympathy trades unwind faster than they build.
Position sizing should reflect the beta profiles of HOOD stock, SOFI stock, and AFRM stock. A moderate stake keeps optionality intact if the crypto bid fades, since chasing the largest mover on a single-day catalyst rarely ages well without a reversal plan.
Contact [email protected] for any questions or corrections.
Jim Cramer used a recent CNBC Stop Trading segment to push back against what he sees as reflexive analyst enthusiasm for a narrow group of fintech names. His complaint was direct: “One of the more irritating parts of this market is the insistence of loving fintech. The analysts just love fintech, and the three that they love are SoFi, Klarna and now PayPal.”
His prescription was equally blunt. “We understand PayPal may be a takeover candidate. Klarna is really doing great so far. It’s going to come back. Just stop analysts stop recommending these. Let them go to where they are on the downside. And then you can recommend them.”
The frustration centers on crowded trades. When the same analysts publish the same view on the same tickers simultaneously, the recommendation itself becomes part of the price, leaving no room for upgrades later. His alternative was the boring stuff: “Just go buy Wells Fargo and JPMorgan, go buy JPMorgan over Klarna, over PayPal.” That claim about market structure is worth testing against the numbers.
The Crowded Trade Problem PayPal (NASDAQ:PYPL | PYPL Price Prediction) carries a Hold consensus, with 32 of 43 covering analysts rating it Hold, compared to 8 Buy and 3 Sell ratings. The analyst target sits at $59.68, essentially on top of the current price of $60.43. PayPal’s Q2 2026 earnings release filed with the SEC shows the beat did little to move the setup.
SoFi Technologies (NASDAQ:SOFI) shows the same pattern. The stock trades at $17.66 with an analyst target of $19.92, and even after a strong Q2 print, it is down 32.54% year to date. Insiders have been net sellers across 82 recent transactions.
Klarna Group (NYSE:KLAR) delivered its second consecutive beat and still fell hard. Revenue grew 26.6% year over year to $1.042 billion, transaction margin dollars grew 42% to $446 million, and the company posted net income of $9 million against a loss a year earlier. The stock fell 22.81% on the day and is down 47.91% year to date.
Klarna cut full-year revenue guidance to $4.08 to $4.16 billion from a prior above $4.34 billion, citing FX and softer German retail, and the reaction confirms Cramer’s structural point about how a crowded, over-loved trade behaves when guidance trims.
Why the Big Banks Look Different The preference for JPMorgan and Wells Fargo is a value-and-risk call. JPMorgan Chase (NYSE:JPM) is up 14.32% year to date and generated $16.9 billion in net income at a 23% ROTCE in Q2. Jamie Dimon’s franchise also authorized a $50 billion buyback alongside earnings.
Wells Fargo (NYSE:WFC) returned $4 billion to shareholders through repurchases in Q1 and trades at $87.40. Both offer scale, dividends, and diversified revenue the fintech names cannot match today.
The counterargument is that big banks are a different bet on the same consumer. Wells already saw its net interest margin compress to 2.47% from 2.67%, and a softer consumer eventually pushes up bank credit costs. Cramer’s preference reads more like a risk-management call than a pure growth thesis.
The value case is straightforward. PayPal trades at a P/E of 12, which is not demanding, although its non-GAAP operating margin contracted 248 basis points to 17.4% in Q2. Banks earning mid-20s returns on tangible equity look more compelling on a risk-adjusted basis.
The Affirm Exception and the BNPL Nuance Cramer carved out Affirm Holdings (NASDAQ:AFRM) from his criticism, arguing the stock should trade at $100 because he trusts Max Levchin and the growth story. Affirm currently trades at $73.56 against an analyst target of $91.20.
The fundamentals support the distinction. Affirm posted GMV growth of 35% to $11.6 billion in FQ3 2026, its tenth consecutive quarter above 30% growth, and generated GAAP net income of $102.9 million. The company has strung together consistent GAAP operating profits.
Cramer added a subtler point about the category. “Buy now, pay later just does very, very well in this situation.” The argument is that BNPL benefits when consumers trade down from revolving credit cards, a defensible read of the current cycle.
The counter is that a weaker consumer also increases credit losses on those same loan books, and Affirm’s 30-plus-day delinquencies ticked up 29 basis points year over year to 2.8%. His crowded-trade mechanics argument is stronger than his broader macro thesis, although both deserve careful weighing before acting on any recommendation.
Contact [email protected] for any questions or corrections.
While I don't own any shares yet, I'm becoming really interested in SoFi Technologies (SOFI +3.96%). The financial technology stock is down more than 30% this year and currently sits over 45% below its 52-week high. That lower price certainly makes SoFi much more interesting to me.
Here's why I don't own any shares yet and what would convince me to buy the financial stock.
Image source: The Motley Fool.
An interesting disconnect Shares of SoFi Technologies have slumped even though the company is having a strong year. That's abundantly clear in its recently reported second-quarter financial results, where SoFi set records for total loan originations, revenue, member and product growth, and earnings. It didn't just push past its prior highs; Sofi delivered brisk growth, with adjusted net revenue soaring 40% to $1.2 billion and members growing 35% to 15.8 million. It also added a record 2.2 million products, bringing the total to 24.4 million, a 42% increase.
That's a continuation of its brisk growth in recent years. SoFi's revenue has risen from $1.5 billion in 2022 to nearly $3.6 billion last year and is on track to top $4.7 billion in 2026. Meanwhile, the company is increasingly profitable.
The financial company expects its robust growth to continue. It's targeting 30% compound annual adjusted net revenue growth through 2028 (from last year's level) and 38%-42% adjusted earnings-per-share growth during that period.
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Why I haven't bought SoFi stock yet Up until now, SoFi's valuation has kept me from buying the stock. At the beginning of the year, SoFi traded at more than 75 times earnings. That's down to about 38 times right now, which is still a bit high compared to the broader market (the S&P 500 trades at 26.5 times earnings, while the Nasdaq-100 trades at 35 times earnings).
However, on a forward basis, SoFi is becoming rather appealing. The company expects to grow its adjusted earnings per share to a range of $1.02-$1.12 per share by 2028. With the stock now down to around $18 a share, SoFi trades at about 17 times the midpoint of its 2028 earnings estimate. Even with continued contraction in the valuation multiple, there's meaningful upside potential in the coming years.
While SoFi certainly trades at a much more attractive valuation today, I'm cheap and would like to lock in an even lower initial purchase price. My target is around $15 per share. However, instead of just waiting to see if the stock drops, I plan to write put options on SoFi stock on the next big down day in the market, which could potentially enable me to buy shares at around that level.
SoFi is getting really interesting SoFi's CEO Anthony Noto stated in the second-quarter earnings release that "2026 is shaping up to be a defining year, and our second quarter results mark a clear inflection point for SoFi." I'm starting to agree, which is why I've been taking a closer look at the stock. I plan to remain patient and see if I can get shares at my target price.
Key Takeaways SOFI posted $14.8 billion loan originations in the second quarter, led by $10.7 billion in personal loans.More than 90% of average liabilities came from deposits, saving $712.6 million in annualized interest expense.SOFI launched small business loans and home equity offerings as purchase and refinance activity stayed muted. SoFi Technologies (SOFI - Free Report) delivered its strongest lending quarter in the second quarter 2026, with total loan originations reaching a record $14.8 billion. The total was more than $2.6 billion above the prior quarter, with record volumes across personal, student and home loans. Personal loan originations reached $10.7 billion, showing how lending remains a growth engine for SOFI.
The mix matters. Of the $14.8 billion in total loan originations, $11.7 billion came through SOFI's Lending segment, while its Loan Platform Business accounted for the remaining $3.1 billion. The platform model lets SoFi originate loans for third-party partners, giving the company fee income without putting every loan on its own balance sheet.
Funding remains an advantage. Deposits represented more than 90% of average total liabilities. The average rate paid on deposits was 156 basis points below warehouse funding costs, equating to about $712.6 million in annualized interest expense savings. Lower funding costs can support pricing and margins as lending volumes rise.
Credit performance will be important if originations keep expanding. Management said credit remained strong and in line with expectations during the second quarter, supporting risk-adjusted margins. SoFi also highlighted growing cross-buy, with more home loans and an increasing share of personal loans coming from existing members, reducing customer acquisition costs.
The company is widening its lending reach. During the second quarter, SoFi launched small business loans and redesigned its home equity line of credit experience. Home equity products accounted for about one-third of record home loan originations, giving SOFI a growth path while purchase and refinance activity remained muted in a high-rate environment.
How Are Competitors Faring?Upstart (UPST - Free Report) is a direct SoFi competitor in technology-enabled consumer lending, and its performance shows strong demand for unsecured credit. Growth has been driven by renewed personal-loan activity, broader funding capacity and improving conversion across its marketplace. In second-quarter 2026, Upstart originated $4.2 billion of loans, rising 50% year over year.
Happen Inc. (HAPN - Free Report) , formerly LendingClub, competes with SoFi in digital consumer banking and personal lending, where recent origination momentum has remained healthy. Its growth reflects stronger borrower demand, product and marketing initiatives and expansion of its lending platform. In second quarter 2026, Happen originated $3.1 billion of loans, up 29% year over year.
SOFI’s Price Performance, Valuation, and EstimatesShares of SOFI have gained 15.2% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 24.15X, well above the industry’s 16.46X. It carries a Value Score of F.
Image Source: Zacks Investment Research
SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past month.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entering this year, retail traders expected big things of SoFi Technologies (SOFI). The fintech stock was commanding plenty of adulation in social media investing circles.
At the end of July, SoFi Technologies (SOFI -3.55%) reported second-quarter financial results. There is really nothing to complain about. All signs still point to a business that's firing on all cylinders, as it continues to find tremendous success in the competitive and vast financial services industry.
But one number stands out. Here's the single data point that matters most in the coming year for investors in this popular fintech stock.
Image source: Getty Images.
Pay attention to the bottom line When it comes to earnings season, it's extremely difficult to identify one number that investors should focus on. Businesses blast their shareholders with a firehose of information, which requires having the ability to identify the key variables.
Furthermore, investors shouldn't be thinking only about the next 12 months. It's best to own companies with at least a five-year time horizon, letting the fundamentals do the work to compound share prices.
Still, I believe profit growth is perhaps the most critical metric to follow when tracking SoFi's performance in the coming year. It provides a window into how the business is doing. And this figure is what drives stock returns over time.
Adjusted net income soared 65% year over year to $160 million in Q2. This translates to a net profit margin of 13%. The fourth quarter of 2023 was the first period that SoFi started reporting positive earnings under generally accepted accounting principles (GAAP). That wasn't a one-off event. The company's bottom line has exploded, supporting the perspective that SoFi is a quality enterprise.
Customer growth has been the main catalyst. SoFi added 1.1 million customers in the most recent quarter, bringing the total to 15.8 million. This led to deposit and lending growth, bolstering revenue gains. The top line, which came in at $1.2 billion in the second quarter, set a quarterly record.
That gives SoFi a budding scale advantage. It doesn't operate physical bank branches, allowing the business to avoid costly overhead. And as its offerings increase, it has more opportunities to cross-sell products to its customers, further aiding in monetization. Like larger financial institutions, SoFi could start to benefit from switching costs as it deepens its banking relationships with individual consumers.
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A winning return in 12 months isn't guaranteed As is the case with virtually any company, investors want to see higher profit over time. Warren Buffett wrote in his 1996 shareholder letter that the objective is to own businesses "whose earnings are virtually certain to be materially higher five, ten and twenty years from now."
According to the leadership team's outlook, SoFi's adjusted earnings per share (EPS) are projected to rise at an annualized pace of 40% (at the midpoint) from 2025 to 2028. This kind of growth is spectacular. It's even more impressive in the financial services industry, a mature, established, and slow-changing market. SoFi has successfully carved out a niche as an up-and-coming digital platform.
Investors must watch EPS trends to ensure the thesis remains intact. Rising profits and a favorable competitive position, however, don't guarantee that the fintech stock will produce a positive return in the next 12 months. The valuation plays a huge part when dealing with such a short time frame.
As of this writing, SoFi shares trade at a forward price-to-earnings ratio of about 30. I believe this is a very reasonable multiple to pay for a booming business. But the market has a different take. Despite strong financial results, the stock price is 39% below its peak (as of Aug. 18). Shares have tanked 32% in 2026, while the S&P 500 index has climbed more than 12%.
SoFi can't control the investment community's sentiment. But it can keep expanding its customer base, increasing revenue, running with operational and risk discipline, and raising profit. That last point is what matters most.
Key Takeaways SoFi Coach has handled nearly 500,000 conversations, with more than 90% receiving positive feedback.More than half of Coach discussions focus on investing, highlighting potential cross-buy opportunities.SoFi ended Q2 with 15.8 million members and 24.4 million products, supporting deeper member economics. SoFi Technologies (SOFI - Free Report) is betting that SoFi Coach can turn its growing member base into deeper, longer relationships. Launched in June 2026, the GenAI financial guide uses data across SoFi and linked outside accounts to answer personal finance questions and help members make better decisions about spending, saving, borrowing and investing over time and at scale.
Early engagement looks encouraging. Management said Coach has already handled nearly 500,000 conversations, with more than 90% receiving positive feedback. More than half of those conversations focused on investing, giving SoFi real-time insight into members' financial needs and where additional products or services may fit naturally.
The timing matters because SoFi’s member ecosystem is expanding quickly. The company ended the second quarter with 15.8 million members, up 35% year over year, while total products rose 42% to 24.4 million. Products per member reached 1.54, and 51% of new products were opened by existing members.
Coach could strengthen that cross-buy trend by connecting personalized financial advice with SoFi’s broader “Everything App.” The platform includes banking, investing, credit cards, loans, crypto and SoFi Plus. Management says Coach draws on data linked to 12,000 financial institutions, 6.5 billion transactions and roughly $750 billion in outstanding balances.
The growing engagement could support stronger member economics over time. SoFi generated $1.2 billion of adjusted net revenues in second quarter, up 40%, while fee-based revenues reached $472 million or 39% of adjusted net revenues. Financial Services and Technology Platform revenues together totaled $551 million, giving Coach a broad base for monetization.
How Are Competitors Faring?Robinhood Markets (HOOD - Free Report) is emerging as a formidable SoFi competitor by expanding beyond trading into banking, retirement, advisory, crypto and private markets. Its June 2026, acquisition of WonderFi added Canadian digital-asset capabilities and further broadened international reach. Funded customers reached a record 28.4 million in second-quarter 2026, up 1.9 million year over year.
Chime Financial, Inc. (CHYM - Free Report) is intensifying competition with SoFi by deepening its primary-account relationship and expanding into investing, lending and employer-linked financial services. In second-quarter 2026, Chime Enterprise signed Allied Universal and another national retailer as employer partners. Active Members rose 20% year over year to 10.4 million, adding 1.7 million net members.
SOFI’s Price Performance, Valuation, and EstimatesShares of SOFI have gained 18.4% in the past three months, outperforming the broader industry while underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 25.06X, well above the industry’s 16.69X. It carries a Value Score of F.
Image Source: Zacks Investment Research
SOFI’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for full-year 2026 EPS gained a cent to 60 cents over the past month.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For decades, big banks were the center of the U.S. financial system, with JPMorgan Chase (JPM -0.52%) and Bank of America (BAC -0.93%) in the lead. But financial technology, or fintech, companies keep pushing into the same turf with digital-first platforms, aggressive pricing, and simpler ways to borrow, save, and invest.
Image source: Getty Images.
That creates a real investor question: Do you stick with traditional bank stocks for stability or lean into fintech for potentially better returns during the next several years? The truth is it's not an either-or call for everyone, and the trade-offs are clearer once you separate durability from upside.
Why traditional big bank stocks are still a safe bet Traditional banks are still among the safest bets today. The biggest U.S. banks, like JPMorgan Chase and Bank of America, have diversified revenue streams, decades of market leadership, and a solid customer base that will be tough to crack.
In fact, both JPMorgan Chase and Bank of America have price-to-earnings (P/E) ratios of about 15, a common metric for gauging whether a stock's valuation is high or low relative to its earnings. The lower, the better.
Now, a P/E of 15 is not necessarily cheap relative to the sector's median of 13, but it still looks reasonable for companies of their size and financial strength.
Overall, the case for big banks boils down to stability, reasonable valuations, and attractive shareholder returns.
Why fintech stocks could be the smarter growth play: SoFi, Block, and Affirm stocks But consistent and reliable stocks don't always translate to explosive growth -- and that's the key argument for fintech.
Companies like SoFi Technologies (SOFI +0.11%), Block (XYZ -3.23%), and Affirm (AFRM -4.89%) are trying to capture segments of the financial services sector that banks have traditionally dominated. The sheer excitement around the underdog story is sometimes enough to drive share prices higher. In all three cases, their stock prices have doubled or tripled within the past year.
The problem, however, is that these are speculative growth stocks, so the upside comes with considerably more risk. In fact, all three companies have lost some of those gains, with only Block trading near its recent 52-week high.
But that doesn't discount the fact that these smaller fintech players are reinventing banking. SoFi is a particularly interesting example because it has expanded well beyond its original student-loan business. It now offers personal loans, investing, banking, credit cards, and other financial products through a single platform.
Fintech companies' portfolios are starting to look like traditional banks', but with a digital-first approach that can make it easier to attract today's customers.
The risks of investing in banks over fintech Of course, neither option is risk-free.
For banks, one of the biggest concerns is credit quality. They're much more sensitive to interest rates, and increased regulation can constrain how aggressively they deploy capital.
Fintechs face a different set of problems. Many still lack the profitability and scale of established banks, making their stocks more vulnerable when investors become less willing to pay a premium for future growth.
Competition is another major issue. Big banks have the resources to offer their services through digital platforms. Fintech companies, meanwhile, don't always have the capacity to open a physical branch. That creates a clear advantage for banks that fintech can't immediately replicate.
Big banks or fintech stocks: Which is the better buy? So, which one should you spend your hard-earned money on?
For conservative investors focused on stability, income, and shareholder returns, big banks like JPMorgan and Bank of America remain best in class.
But investors willing to accept greater volatility in pursuit of potentially higher growth may find more upside in fintech stocks such as SoFi, Block, and Affirm.
$20.13 Becomes Next Major Test It remains to be seen whether the flag breakout can be sustained and lead to a possible breakout of the larger consolidation pattern, with a high of $20.13 from April. That price area will take on added potential significance, as the long-term 200-day moving average near $20.75 also represents a key initial resistance zone. Since it is falling, it will enhance potential resistance near the top of the multi-month range. A near-term bullish outlook may be maintained unless last week’s low of $17.65 is broken to the downside. That would also signal a failure of the flag pattern.
Larger Breakout Could End Correction Overall, SOFI is indicating that it may be getting close to completing its bearish correction. A bullish reversal of a bottom consolidation range on a rally above $20.13 would signal a breakout of the range. That would put SOFI in a position to challenge higher resistance levels on the road to a recovery and a continuation of the larger bullish trend.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
