SoFi (SOFI) AI Stock Analysis

• Market Cap: $31.25B
• Dividend Yield: N/A
• Average Volume (3M): 66.70M
• Price to Earnings (P/E): 56.8
• Beta (1Y): 2.32
• Revenue Growth: 22.60%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.08
• Shares Outstanding: 1,185,385,500
• 10 Day Avg. Volume: 65,723,399
• 30 Day Avg. Volume: 66,701,150
• PEG Ratio: -0.14
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 4.37
• P/FCF Ratio: -12.69
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 5.49
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 42.87
• 1Y Price Target: $21.39
• Price Target Upside: -23.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $29.00 ▲(3.50% Upside)

SoFi's overall stock score of 75 reflects strong technical momentum and positive earnings call sentiment, which are the most significant factors. Financial performance shows improvement but is weighed down by cash flow challenges. The high P/E ratio suggests potential overvaluation, which is a risk if growth expectations are not met. The CEO's confidence in the stock is a positive signal but not a major influence on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business expansion and product adoption, enhancing SoFi's market position and financial health.

Member and Product Growth

Significant member and product growth reflects successful customer acquisition strategies, fostering long-term revenue potential and brand loyalty.

Lending Performance

Robust lending growth underscores SoFi's strength in its core business, supporting sustained revenue and profitability improvements.

Negative Factors

Cash Flow Challenges

Negative cash flows highlight potential liquidity issues, which could constrain SoFi's ability to invest in growth and manage debt effectively.

Tech Platform Challenges

Challenges in the Tech Platform segment may hinder growth and innovation, affecting SoFi's ability to compete in the fintech space.

Interest Rate Impact

Rising interest rates could impact loan demand and profitability, posing a risk to SoFi's lending business and overall financial performance.

SoFi Business Overview & Revenue Model

Company Description

SoFi Technologies, Inc. provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company's lending and financial services and products allows its members to borrow, save, spend, invest, and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment, and technology services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology enabled platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is headquartered in San Francisco, California.

How the Company Makes Money

SoFi generates revenue through various channels primarily focused on lending and financial services. Its main revenue streams include interest income from loans, fees from financial products, and investment income. For instance, SoFi earns interest from personal loans, student loans, and mortgages, which comprise a significant portion of its income. Additionally, the company charges fees for its investment platform, which allows users to invest in stocks and ETFs, and earns revenue from its credit card services. SoFi has also formed strategic partnerships with financial institutions and technology providers to enhance its product offerings, leading to further monetization opportunities through cross-selling and customer acquisition. Furthermore, SoFi's membership model provides additional avenues for growth, as members gain access to various financial services and products, fostering customer loyalty and recurring revenue.

SoFi Financial Statement Overview

Summary

SoFi has shown significant improvements in revenue growth and profitability, with positive trends in net profit margins and return on equity. The balance sheet is relatively strong with moderate leverage, but past high leverage levels pose a potential risk. Cash flow management remains a challenge, with negative operating cash flows despite improvements in free cash flow growth. Overall, the company is on a positive trajectory but needs to address cash flow stability to ensure sustainable growth.

Income Statement

SoFi has demonstrated strong revenue growth with a TTM revenue growth rate of 6.91% and improving profitability metrics. The gross profit margin remains robust at 72.73%, and the net profit margin has turned positive at 13.50% in the TTM period. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the company has experienced volatility in its margins over the years, which poses a risk to consistent profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.51, indicating a balanced approach to leveraging. Return on equity has improved to 8.58% in the TTM period, reflecting better utilization of shareholder funds. The equity ratio is stable, suggesting a solid capital structure. However, the company has had high leverage in the past, which could be a potential risk if not managed properly.

Cash Flow

Cash flow metrics indicate challenges, with negative operating and free cash flows in the TTM period. Despite a significant improvement in free cash flow growth rate at 49.99%, the operating cash flow to net income ratio remains negative, highlighting cash flow management issues. The free cash flow to net income ratio is positive, suggesting some ability to cover net income with free cash flow, but overall cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16B	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	3.03B	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	533.12M	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	561.60M	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	41.11B	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	4.50B	4.34B	3.59B	1.46B	689.62M	872.58M
Total Debt	4.03B	3.20B	5.36B	5.63B	4.19B	5.06B
Total Liabilities	34.25B	29.73B	24.52B	13.48B	4.48B	5.51B
Stockholders Equity	6.86B	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow
Free Cash Flow	-3.03B	-1.28B	-7.35B	-7.36B	-1.40B	-503.88M
Operating Cash Flow	-2.82B	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
Investing Cash Flow	-4.53B	-4.82B	-1.89B	-106.33M	110.19M	258.95M
Financing Cash Flow	7.33B	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOFI, the sentiment is Positive. The current price of 28.02 is above the 20-day moving average (MA) of 27.46, above the 50-day MA of 25.30, and above the 200-day MA of 17.43, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOFI.

SoFi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYF	78 Outperform	$26.38B	8.62	20.23%	1.55%	-3.16%	14.60%
SOFI	75 Outperform	$31.25B	56.76	8.80%	―	22.60%	―
OMF	68 Neutral	$6.52B	9.92	20.47%	7.61%	9.41%	13.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	58 Neutral	$5.64B	13.65	18.99%	1.96%	-4.34%	-38.01%
ALLY	52 Neutral	$12.25B	25.85	4.18%	3.07%	-5.33%	-32.99%
UPST	45 Neutral	$4.99B	―	-0.96%	―	60.62%	96.91%

SoFi Corporate Events

SoFi CEO Enters Prepaid Variable Forward Contract

On August 28, 2025, SoFi‘s CEO, Anthony Noto, entered into a prepaid variable forward contract involving 1,500,000 shares of the company’s common stock. This contract allows Mr. Noto to receive an upfront cash payment of $24,107,850 while retaining voting and dividend rights. The contract is set to mature in 2028, at which point Mr. Noto can settle in shares or cash, depending on the stock price. This move provides liquidity and maintains Mr. Noto’s equity position in the company, reflecting his continued confidence in SoFi’s stock, as he has not sold any shares since 2018 and has been actively purchasing more.

SoFi Completes Major Stock Offering with Goldman Sachs

On July 29, 2025, SoFi Technologies, Inc. entered into an underwriting agreement with Goldman Sachs, Citigroup, and Mizuho Securities for the issuance and sale of 82,733,817 shares of common stock at $20.85 per share. The offering was completed on July 31, 2025, and the company plans to use the proceeds for general corporate purposes, including working capital and other business opportunities.

SoFi Technologies Announces $1.5 Billion Stock Offering

On July 29, 2025, SoFi Technologies announced a public offering of $1.5 billion in common stock, with Goldman Sachs acting as the underwriter. The company plans to use the proceeds for general corporate purposes, including working capital and business opportunities, potentially impacting its financial flexibility and market position.