SoFi Technologies (SOFI) AI Stock Analysis

• Market Cap: $23.43B
• Dividend Yield: N/A
• Average Volume (3M): 72.28M
• Price to Earnings (P/E): 50.7
• Beta (1Y): 2.43
• Revenue Growth: 21.24%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 1,105,363,000
• 10 Day Avg. Volume: 78,914,709
• 30 Day Avg. Volume: 72,276,665
• PEG Ratio: -11.18
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.67
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 8.90
• Enterprise Value/Ebitda: 17.70
• 1Y Price Target: $15.79
• Price Target Upside: -25.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 66 Neutral
• Price Target: $21.00 ▼(-0.94%Downside)

The overall score reflects SoFi's strong financial performance and positive technical indicators, countered by overvaluation concerns. Significant revenue growth and profitability improvement are key strengths, while cash flow challenges and high valuation pose risks. The stock's momentum is a positive factor, though technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Growth Opportunities

The pending revenue opportunities from the recently-announced crypto trading platform and significantly expanded student lending opportunity could generate at least a 3-5% boost to revenue.

Product Diversification

SoFi has significantly increased the breadth and depth of its product offering, including checking and savings accounts, brokerage, and credit card.

Revenue Growth

SoFi delivered 37% revenue CAGR from 2021 to 2024, driven by Financial Services growth and product diversification.

Negative Factors

Accounting Practices

A key Bear argument is that SOFI’s accounting is aggressive and overestimates capital resiliency relative to other consumer finance companies.

Market Premium

Currently priced at more than 3x tangible book, SOFI trades at a premium to other consumer finance companies.

Valuation Concerns

Despite the company's exciting growth prospects and strong value proposition, the stock has run past fundamental value.

SoFi Technologies 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 Technologies generates revenue through multiple streams centered around its diverse financial services. A significant portion of its income is derived from interest income and fees associated with lending products, such as student loan refinancing, personal loans, and home loans. The company also earns money through transaction fees and commissions from its investing and trading platform, SoFi Invest, which offers brokerage services, robo-advisory, and cryptocurrency trading. Furthermore, SoFi makes money from its SoFi Money cash management account, which offers banking services without traditional fees, and through interchange fees from its credit card offerings. Additionally, partnerships with various financial institutions and insurance providers contribute to its earnings by allowing SoFi to offer a wider range of financial products and earn referral fees. The company's revenue model is bolstered by its focus on delivering a seamless digital experience, which helps it attract and retain a large and growing customer base.

SoFi Technologies Financial Statement Overview

Summary

SoFi Technologies demonstrates strong revenue growth and improving profitability, transitioning from losses to a positive net margin. The balance sheet indicates reducing leverage and improved equity returns, but cash flow challenges persist, emphasizing the need for continued focus on cash management.

Income Statement

SoFi Technologies shows strong revenue growth with a notable increase from $565.5M in 2020 to $3.77B in 2024, despite some fluctuations. The TTM revenue is slightly lower at $2.77B, indicating a short-term decline. The net profit margin has turned positive in the TTM with a margin of 17.4%, reflecting improved profitability from previous losses. The gross profit margin remains consistently high, showcasing efficient cost management.

Balance Sheet

The balance sheet reflects a moderate risk profile with a decreasing debt-to-equity ratio from 1.66 in 2020 to 0.47 in the TTM, indicating improved financial leverage. The equity ratio remains stable, demonstrating a strong equity base. Return on equity has improved significantly to 7.2% in the TTM, showcasing better profitability management.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow, though significant improvement is seen from -$7.3B in 2023 to -$1.84B in the TTM. Free cash flow remains negative, but the company is making strides in reducing its cash burn rate. The operating cash flow to net income ratio is negative, indicating reliance on external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	2.90B	1.76B	1.09B	751.14M
Gross Profit	2.58B	2.05B	1.52B	977.30M	565.53M
EBITDA	436.84M	-99.74M	-167.36M	-379.61M	-258.69M
Net Income	498.67M	-300.74M	-320.41M	-483.94M	-224.05M
Balance Sheet
Total Assets	36.25B	30.07B	19.01B	9.18B	8.56B
Cash, Cash Equivalents and Short-Term Investments	2.59B	3.14B	1.82B	689.62M	872.58M
Total Debt	3.09B	5.24B	5.63B	4.18B	5.06B
Total Liabilities	29.73B	24.52B	13.48B	4.48B	5.51B
Stockholders Equity	6.53B	5.55B	5.53B	4.70B	3.05B
Cash Flow
Free Cash Flow	-1.27B	-7.34B	-7.36B	-1.40B	-503.88M
Operating Cash Flow	-1.12B	-7.23B	-7.26B	-1.35B	-479.34M
Investing Cash Flow	-4.82B	-1.89B	-106.33M	110.19M	258.95M
Financing Cash Flow	5.03B	10.89B	8.44B	684.99M	853.75M

SoFi Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 21.2 is above the 20-day moving average (MA) of 17.53, above the 50-day MA of 15.14, and above the 200-day MA of 13.65, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 83.72 is Negative, neither overbought nor oversold. The STOCH value of 88.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOFI.

SoFi Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCFS	81 Outperform	$5.86B	21.16	13.70%	1.15%	5.06%	21.62%
CACC	76 Outperform	$5.98B	21.95	17.24%	―	13.77%	20.95%
SYF	72 Outperform	$26.88B	9.69	18.60%	1.70%	1.22%	4.96%
ALLY	68 Neutral	$12.42B	29.72	3.84%	2.97%	-2.99%	-43.64%
OMF	68 Neutral	$7.01B	12.47	17.46%	7.06%	9.07%	―
Sector *	67 Neutral	$16.77B	11.74	9.77%	3.75%	12.07%	-8.28%
SOFI	66 Neutral	$23.43B	50.69	7.51%	―	21.24%	―

SoFi Technologies Corporate Events

SoFi Technologies Holds Annual Stockholders Meeting

On May 28, 2025, SoFi Technologies held its annual stockholders meeting where key proposals were voted on, including the election of ten board members, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent auditor for 2025. The outcomes of these votes reinforce the company’s governance structure and operational oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (SOFI) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on SoFi Technologies stock, see the SOFI Stock Forecast page.