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SoFi vs. Nu Holdings: Which Fintech Stock Stands Out Right Now?
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Key Takeaways
SoFi added 850,000 members in Q2 2025, boosting total membership 34% year over year to 11.7 million.
SoFi's fee-based revenues surged 72% to $378M, lifting margins and reducing reliance on interest income.
Nu gained 4.1M customers in Q2, reaching 122.7M, with revenues up 40% year over year on an FX-neutral basis.
Fintech has become one of the most closely watched areas in financial markets, with SoFi Technologies (SOFI - Free Report) and Nu Holdings (NU - Free Report) standing out as notable players. SoFi has expanded from student loan refinancing into a full suite of financial services, including lending, investing, and banking. Meanwhile, Nu, the Brazilian digital bank giant, is rapidly scaling across Latin America, with millions of new customers each quarter.
Both companies exemplify the shift toward digital-first banking solutions, leveraging technology to provide accessible and user-friendly financial services to a broad customer base.
SoFi’s Case: User Growth, Capital-Light Expansion
SOFI continues to impress investors with robust user growth, delivering a record 850,000 new members in the second quarter of 2025. Total membership now stands at 11.7 million, reflecting an impressive 34% year-over-year increase. This expanding customer base is not just growing in number but also in engagement, as evidenced by the addition of 1.3 million new products during the quarter, a 34% increase compared to the prior year.
Notably, 35% of these new products were adopted by existing members, signaling strong cross-selling capabilities and effective product diversification. For investors, this trend indicates a solid and sticky customer foundation, reducing churn risk while enhancing lifetime customer value. SoFi’s ability to consistently grow its active member base enhances its revenue potential, positioning the company for sustainable long-term growth and improved competitive positioning in the fintech and financial services industry.
SOFI is advancing its transition toward a capital-light, fee-based business model, a development highly attractive to investors seeking sustainable growth. In the second quarter of 2025, total fee-based revenues surged 72% year over year, reaching $378 million. This growth stems from diversified sources, including origination fees, referral commissions, interchange revenues and brokerage fees.
Annualized fee-based revenues now exceed $1.5 billion, significantly reducing reliance on traditional interest-based income. The shift enhances SoFi’s margin profile and lowers vulnerability to interest rate fluctuations or credit risk. Additionally, strong operating leverage is reflected in a record adjusted EBITDA margin of 29%, up 600 basis points year over year. The incremental EBITDA margin of 43% demonstrates disciplined cost management and scalability of the platform.
For investors, this trend supports the thesis that SoFi is evolving into a more profitable, capital-efficient fintech leader, well-positioned for attractive long-term returns amid industry growth.
NU’s Case: Expansion, Engagement and Regional Powerhouse
NU isn’t just expanding, it’s accelerating, and at a velocity few fintechs globally can rival. In the second quarter of 2025 alone, the digital banking disruptor added more than 4.1 million new customers, pushing its total to 122.7 million, marking a 17% year-over-year surge. NU is proving it can scale with staggering speed while simultaneously unlocking revenue potential.
What amplifies this momentum is NU’s ability to monetize effectively even in hypergrowth mode. Average revenue per active customer crossed $12 for the first time, climbing 18% year over year on an FX-neutral basis (FXN). This milestone reflects disciplined unit economics as the company accelerates into new geographies while deepening share in core markets.
In a landscape where many fintechs chase growth at the expense of profitability, NU stands apart. Revenues surged 40% year over year at FXN in the second quarter, powered by rising engagement and diversified streams spanning lending, interchange fees, and marketplace services. It’s the clearest evidence yet that scale and profitability can coexist in fintech.
NU’s digital-first, highly scalable model is engineered for efficiency. Its flagship NuBank has shattered the dominance of legacy banks in Brazil while cementing its reputation as one of Latin America’s most trusted financial brands. With expansion into Mexico and Colombia accelerating, NU is establishing itself as a regional powerhouse. By delivering low-cost, intuitive financial services to underserved populations, the company is unlocking access at scale and fueling an unstoppable cycle of growth.
How Do Zacks Estimates Compare for SOFI & NU?
According to the Zacks Consensus Estimate, SoFi is expected to achieve 32% year-over-year sales growth and an impressive 113% jump in EPS in 2025, reflecting its improving profitability and operational efficiency.
Image Source: Zacks Investment Research
Nu Holdings is projected to post a sales growth of about 30%, driven by rapid customer acquisition and geographic expansion across Latin America. NU's EPS is forecasted to grow by 24%, trailing SoFi’s projected EPS growth.
Image Source: Zacks Investment Research
SoFi’s Valuation Reflects Strong Growth Potential
While NU appears attractively valued with a forward 12-month P/E of 22.13X versus its median of 20X, SoFi's higher forward P/E of 58.89X, above its median of 47.51X, reflects investor confidence in its rapid earnings growth potential. SoFi’s valuation premium is justified by its accelerating profitability, diversified financial services ecosystem, and growing U.S. market share.
SoFi: The Fintech Leader to Back Today
Both SOFI and NU demonstrate strong fundamentals, rapid customer growth, and innovative digital models. However, SOFI edges out in terms of near-term earnings acceleration and expanding profitability, reflected in its 113% projected EPS growth for 2025. While NU offers scale and attractive valuation, its focus seems to be more on top-line expansion. SOFI’s ability to drive bottom-line growth, supported by platforms like Galileo and rising cross-selling opportunities, positions it as the more compelling fintech at this moment. For investors seeking strong earnings momentum and operating leverage, SOFI currently stands out as the fintech leader to watch.
Image: Bigstock
SoFi vs. Nu Holdings: Which Fintech Stock Stands Out Right Now?
Key Takeaways
Fintech has become one of the most closely watched areas in financial markets, with SoFi Technologies (SOFI - Free Report) and Nu Holdings (NU - Free Report) standing out as notable players. SoFi has expanded from student loan refinancing into a full suite of financial services, including lending, investing, and banking. Meanwhile, Nu, the Brazilian digital bank giant, is rapidly scaling across Latin America, with millions of new customers each quarter.
Both companies exemplify the shift toward digital-first banking solutions, leveraging technology to provide accessible and user-friendly financial services to a broad customer base.
SoFi’s Case: User Growth, Capital-Light Expansion
SOFI continues to impress investors with robust user growth, delivering a record 850,000 new members in the second quarter of 2025. Total membership now stands at 11.7 million, reflecting an impressive 34% year-over-year increase. This expanding customer base is not just growing in number but also in engagement, as evidenced by the addition of 1.3 million new products during the quarter, a 34% increase compared to the prior year.
Notably, 35% of these new products were adopted by existing members, signaling strong cross-selling capabilities and effective product diversification. For investors, this trend indicates a solid and sticky customer foundation, reducing churn risk while enhancing lifetime customer value. SoFi’s ability to consistently grow its active member base enhances its revenue potential, positioning the company for sustainable long-term growth and improved competitive positioning in the fintech and financial services industry.
SOFI is advancing its transition toward a capital-light, fee-based business model, a development highly attractive to investors seeking sustainable growth. In the second quarter of 2025, total fee-based revenues surged 72% year over year, reaching $378 million. This growth stems from diversified sources, including origination fees, referral commissions, interchange revenues and brokerage fees.
Annualized fee-based revenues now exceed $1.5 billion, significantly reducing reliance on traditional interest-based income. The shift enhances SoFi’s margin profile and lowers vulnerability to interest rate fluctuations or credit risk. Additionally, strong operating leverage is reflected in a record adjusted EBITDA margin of 29%, up 600 basis points year over year. The incremental EBITDA margin of 43% demonstrates disciplined cost management and scalability of the platform.
For investors, this trend supports the thesis that SoFi is evolving into a more profitable, capital-efficient fintech leader, well-positioned for attractive long-term returns amid industry growth.
NU’s Case: Expansion, Engagement and Regional Powerhouse
NU isn’t just expanding, it’s accelerating, and at a velocity few fintechs globally can rival. In the second quarter of 2025 alone, the digital banking disruptor added more than 4.1 million new customers, pushing its total to 122.7 million, marking a 17% year-over-year surge. NU is proving it can scale with staggering speed while simultaneously unlocking revenue potential.
What amplifies this momentum is NU’s ability to monetize effectively even in hypergrowth mode. Average revenue per active customer crossed $12 for the first time, climbing 18% year over year on an FX-neutral basis (FXN). This milestone reflects disciplined unit economics as the company accelerates into new geographies while deepening share in core markets.
In a landscape where many fintechs chase growth at the expense of profitability, NU stands apart. Revenues surged 40% year over year at FXN in the second quarter, powered by rising engagement and diversified streams spanning lending, interchange fees, and marketplace services. It’s the clearest evidence yet that scale and profitability can coexist in fintech.
NU’s digital-first, highly scalable model is engineered for efficiency. Its flagship NuBank has shattered the dominance of legacy banks in Brazil while cementing its reputation as one of Latin America’s most trusted financial brands. With expansion into Mexico and Colombia accelerating, NU is establishing itself as a regional powerhouse. By delivering low-cost, intuitive financial services to underserved populations, the company is unlocking access at scale and fueling an unstoppable cycle of growth.
How Do Zacks Estimates Compare for SOFI & NU?
According to the Zacks Consensus Estimate, SoFi is expected to achieve 32% year-over-year sales growth and an impressive 113% jump in EPS in 2025, reflecting its improving profitability and operational efficiency.
Nu Holdings is projected to post a sales growth of about 30%, driven by rapid customer acquisition and geographic expansion across Latin America. NU's EPS is forecasted to grow by 24%, trailing SoFi’s projected EPS growth.
SoFi’s Valuation Reflects Strong Growth Potential
While NU appears attractively valued with a forward 12-month P/E of 22.13X versus its median of 20X, SoFi's higher forward P/E of 58.89X, above its median of 47.51X, reflects investor confidence in its rapid earnings growth potential. SoFi’s valuation premium is justified by its accelerating profitability, diversified financial services ecosystem, and growing U.S. market share.
SoFi: The Fintech Leader to Back Today
Both SOFI and NU demonstrate strong fundamentals, rapid customer growth, and innovative digital models. However, SOFI edges out in terms of near-term earnings acceleration and expanding profitability, reflected in its 113% projected EPS growth for 2025. While NU offers scale and attractive valuation, its focus seems to be more on top-line expansion. SOFI’s ability to drive bottom-line growth, supported by platforms like Galileo and rising cross-selling opportunities, positions it as the more compelling fintech at this moment. For investors seeking strong earnings momentum and operating leverage, SOFI currently stands out as the fintech leader to watch.
SOFI currently carries a Zacks Rank #2 (Buy) while NU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.