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Is SoFi Technologies Stock a Buy After Another Record Quarter?
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Key Takeaways
SoFi reported record Q3 adjusted net revenues of $950M, up 38% year over year, beating estimates.
Membership grew to 12.6M, with fee-based revenues reaching a record $409M, up 57% from last year.
Management raised 2025 guidance across all metrics, citing strong momentum and innovation-led growth.
Investors had been eagerly awaiting SoFi Technologies’ (SOFI - Free Report) third-quarter results to gauge whether its strong business momentum could translate into further stock gains. However, the reaction surprised many; shares have fallen roughly 14% since the earnings release, even though both earnings and revenues handily beat estimates. This pullback appears more like a short-term sentiment correction rather than a reflection of fundamentals, as the company’s performance and outlook continue to strengthen.
SOFI delivered a stellar third quarter, underscoring its transformation from a digital lender to a diversified financial services platform. The company reported record adjusted net revenue of $950 million, up 38% year over year, beating the Zacks Consensus Estimate by 6.6%,marking its eighth consecutive profitable quarter. Net income reached $139 million, translating to earnings per share of 11 cents, beating the consensus estimate by 22%.
Image Source: SoFi Technologies
SoFi’s membership base continues to expand rapidly, with 905,000 new members added in the quarter, bringing the total to 12.6 million.
Image Source: SoFi Technologies
Product adoption also surged; the firm reported 1.4 million new products, with 40% of them opened by existing members, demonstrating increasing cross-sell strength. This momentum reflects the success of SoFi’s integrated financial ecosystem, where members use multiple services across lending, investing and banking.
Image Source: SoFi Technologies
The company’s Financial Services and Technology Platform segments, which include SoFi Money, SoFi Invest, Galileo and Technisys, generated a combined $534 million in revenues, up 57% year over year. These businesses now contribute 56% of total revenues, showcasing progress toward a more capital-light, fee-driven model. Fee-based revenues hit a record $409 million in the quarter and are now annualizing at over $1.6 billion, a crucial milestone for long-term stability and profitability.
Product Innovation and Strategic Expansion
Management’s focus on innovation continues to drive SoFi’s competitive advantage. The launch of SoFi Pay, enabling fast and low-cost international payments through blockchain, represents a strategic step into global financial connectivity. Plans for a SoFi USD stablecoin in 2026 further underscore its intent to capitalize on blockchain technology’s potential in mainstream finance.
The relaunch of crypto trading features, including buy, sell and hold options, within the SoFi app aligns with growing investor interest in digital assets. Meanwhile, the forthcoming AI-driven SoFi Coach, an expansion of its existing Cash Coach, promises to provide personalized, AI-powered financial guidance across users’ accounts.
Adding to its lineup, SoFi unveiled the SoFi Smart Card, combining 5% cash back on food purchases, credit-building features, and access to competitive deposit and borrowing rates. These moves not only strengthen SoFi’s ecosystem but also deepen customer engagement and brand loyalty.
Marketing partnerships are amplifying this momentum. A new collaboration with NFL MVP Josh Allen to promote SoFi Plus, the company’s premium product offering, highlights its growing brand strength. SoFi’s unaided brand awareness has now reached an all-time high of 9.1%, confirming its rising profile among U.S. consumers.
Financial Strength and Upbeat 2025 Outlook
Management reaffirmed SoFi’s operational discipline and growth trajectory. Adjusted EBITDA came in at a record $277 million with a 29% margin, while nonlending revenues surged 57% year over year. The lending segment also performed robustly, with $481 million in revenues, up 23% from last year. Total loan originations reached a record $9.9 billion, up 57% year over year, driven by strong demand for personal and home loans.
SoFi also strengthened its balance sheet, raising $1.7 billion in new capital and increasing total deposits by $3.4 billion to $32.9 billion. This growing deposit base enhances funding stability and supports lending expansion without excessive reliance on external financing.
Encouraged by the strong third performance, management raised its 2025 guidance across all metrics. The company now expects to add about 3.5 million members for the full year, indicating 34% growth, up from the earlier forecast of 30%. Adjusted net revenues are now projected at $3.54 billion, up 36% year over year and above the prior guide of $3.375 billion. Adjusted EBITDA guidance rose to $1.035 billion, while adjusted net income and EPS are now expected at $455 million and 37 cents, respectively, both meaningfully above previous estimates. Tangible book value growth is forecast at approximately $2.5 billion, far exceeding prior guidance of $640 million.
These raised targets indicate growing confidence in the company’s long-term profitability and its ability to scale its fee-based businesses efficiently.
SoFi is a Buy After Q3
SoFi Technologies’ third quarter reaffirmed its status as one of the most dynamic digital finance companies in the United States. The combination of record revenue, accelerating membership growth, expansion into AI and blockchain, and rising nonlending income highlights a maturing business model built for sustainable growth.
With a Zacks Rank #2 (Buy), SoFi stands well-positioned for continued momentum into 2025 and beyond. The company’s emphasis on innovation, brand building, and diversification across capital-light revenue streams sets it apart in the evolving fintech landscape. For investors seeking exposure to a fast-growing, technology-forward financial platform, SoFi stock appears attractive for accumulation following its strong third-quarter earnings performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Watch in Fintech
Block (XYZ - Free Report) , Robinhood (HOOD - Free Report) and PayPal (PYPL - Free Report) are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo’s capabilities. Block, Robinhood and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models.
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Is SoFi Technologies Stock a Buy After Another Record Quarter?
Key Takeaways
Investors had been eagerly awaiting SoFi Technologies’ (SOFI - Free Report) third-quarter results to gauge whether its strong business momentum could translate into further stock gains. However, the reaction surprised many; shares have fallen roughly 14% since the earnings release, even though both earnings and revenues handily beat estimates. This pullback appears more like a short-term sentiment correction rather than a reflection of fundamentals, as the company’s performance and outlook continue to strengthen.
SOFI delivered a stellar third quarter, underscoring its transformation from a digital lender to a diversified financial services platform. The company reported record adjusted net revenue of $950 million, up 38% year over year, beating the Zacks Consensus Estimate by 6.6%,marking its eighth consecutive profitable quarter. Net income reached $139 million, translating to earnings per share of 11 cents, beating the consensus estimate by 22%.
SoFi’s membership base continues to expand rapidly, with 905,000 new members added in the quarter, bringing the total to 12.6 million.
Product adoption also surged; the firm reported 1.4 million new products, with 40% of them opened by existing members, demonstrating increasing cross-sell strength. This momentum reflects the success of SoFi’s integrated financial ecosystem, where members use multiple services across lending, investing and banking.
The company’s Financial Services and Technology Platform segments, which include SoFi Money, SoFi Invest, Galileo and Technisys, generated a combined $534 million in revenues, up 57% year over year. These businesses now contribute 56% of total revenues, showcasing progress toward a more capital-light, fee-driven model. Fee-based revenues hit a record $409 million in the quarter and are now annualizing at over $1.6 billion, a crucial milestone for long-term stability and profitability.
Product Innovation and Strategic Expansion
Management’s focus on innovation continues to drive SoFi’s competitive advantage. The launch of SoFi Pay, enabling fast and low-cost international payments through blockchain, represents a strategic step into global financial connectivity. Plans for a SoFi USD stablecoin in 2026 further underscore its intent to capitalize on blockchain technology’s potential in mainstream finance.
The relaunch of crypto trading features, including buy, sell and hold options, within the SoFi app aligns with growing investor interest in digital assets. Meanwhile, the forthcoming AI-driven SoFi Coach, an expansion of its existing Cash Coach, promises to provide personalized, AI-powered financial guidance across users’ accounts.
Adding to its lineup, SoFi unveiled the SoFi Smart Card, combining 5% cash back on food purchases, credit-building features, and access to competitive deposit and borrowing rates. These moves not only strengthen SoFi’s ecosystem but also deepen customer engagement and brand loyalty.
Marketing partnerships are amplifying this momentum. A new collaboration with NFL MVP Josh Allen to promote SoFi Plus, the company’s premium product offering, highlights its growing brand strength. SoFi’s unaided brand awareness has now reached an all-time high of 9.1%, confirming its rising profile among U.S. consumers.
Financial Strength and Upbeat 2025 Outlook
Management reaffirmed SoFi’s operational discipline and growth trajectory. Adjusted EBITDA came in at a record $277 million with a 29% margin, while nonlending revenues surged 57% year over year. The lending segment also performed robustly, with $481 million in revenues, up 23% from last year. Total loan originations reached a record $9.9 billion, up 57% year over year, driven by strong demand for personal and home loans.
SoFi also strengthened its balance sheet, raising $1.7 billion in new capital and increasing total deposits by $3.4 billion to $32.9 billion. This growing deposit base enhances funding stability and supports lending expansion without excessive reliance on external financing.
Encouraged by the strong third performance, management raised its 2025 guidance across all metrics. The company now expects to add about 3.5 million members for the full year, indicating 34% growth, up from the earlier forecast of 30%. Adjusted net revenues are now projected at $3.54 billion, up 36% year over year and above the prior guide of $3.375 billion. Adjusted EBITDA guidance rose to $1.035 billion, while adjusted net income and EPS are now expected at $455 million and 37 cents, respectively, both meaningfully above previous estimates. Tangible book value growth is forecast at approximately $2.5 billion, far exceeding prior guidance of $640 million.
These raised targets indicate growing confidence in the company’s long-term profitability and its ability to scale its fee-based businesses efficiently.
SoFi is a Buy After Q3
SoFi Technologies’ third quarter reaffirmed its status as one of the most dynamic digital finance companies in the United States. The combination of record revenue, accelerating membership growth, expansion into AI and blockchain, and rising nonlending income highlights a maturing business model built for sustainable growth.
With a Zacks Rank #2 (Buy), SoFi stands well-positioned for continued momentum into 2025 and beyond. The company’s emphasis on innovation, brand building, and diversification across capital-light revenue streams sets it apart in the evolving fintech landscape. For investors seeking exposure to a fast-growing, technology-forward financial platform, SoFi stock appears attractive for accumulation following its strong third-quarter earnings performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Watch in Fintech
Block (XYZ - Free Report) , Robinhood (HOOD - Free Report) and PayPal (PYPL - Free Report) are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo’s capabilities. Block, Robinhood and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models.