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SOFI Stock Skyrockets 82% in 6 Months: Buy, Hold or Sell?
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Key Takeaways
SoFi's shares jumped 82% in six months as Q3 showed record EBITDA, strong lending revenues.
The company raised 2025 guidance, boosting member, revenues, EBITDA and tangible book value projections.
Galileo integration strengthens SoFi's tech stack, supporting faster innovation and a more scalable platform.
Shares of SoFi Technologies, Inc. (SOFI - Free Report) have surged 82% in the past six months against the industry’s 1% decline.
Image Source: Zacks Investment Research
With such a steep rally, you might be wondering: Is there still room to buy, or is a pullback on the horizon? Here’s what our analysis suggests.
SoFi’s Strengthening Scalable Profitability
SOFI’s third-quarter 2025 results reflected 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.
Scalable profitability has emerged as the central force behind SOFI’sstronger guidance for 2025, reflected in raised expectations across every major metric. SOFI now anticipates adding approximately 3.5 million members, representing a 34% growth rate compared with the earlier forecast of 30%. This upward revision demonstrates the compounding effect of SoFi’s expanding ecosystem; more members mean higher product adoption and increased operating leverage.
Revenue expectations have also increased significantly. Adjusted net revenue is now projected at $3.54 billion, indicating 36% year-over-year growth and surpassing the prior $3.375 billion estimate. Profitability projections improved even more sharply: adjusted EBITDA is now guided to $1.035 billion, while adjusted net income is expected at $455 million with adjusted EPS of $0.37. SoFi’s most striking upgrade is tangible book value growth, now forecast at $2.5 billion, significantly above the earlier $640 million target. This signals enhanced capital strength and supports future lending and fee-driven expansion.
The broad upward revision suggests a business gaining structural efficiency as it scales. Strong member growth, improved cost discipline and expanding fee-based revenue streams are helping SoFi transition into a more durable, higher-margin financial platform with clearer visibility into long-term profitability.
Galileo Bracing SoFi’s Fintech Integration and Growth Path
Since acquiring Galileo Financial Technologies in 2020, SOFIhas significantly enhanced its fintech backbone by embedding Galileo’s payment-processing and technology capabilities across its expanding ecosystem. Galileo now powers essential functions, including buy now, pay later solutions and AI-driven customer engagement tools, forming a critical layer behind SoFi’s seamless, technology-first user experience.
Being under one corporate structure has opened the door to far deeper integration. SoFi can directly incorporate Galileo’s infrastructure into its product roadmap, avoiding the delays and limitations that come with third-party partnerships. This alignment improves speed to market, operational efficiency, and SoFi’s ability to innovate across digital banking, lending and personal finance.
The relationship also creates a powerful feedback loop. While Galileo supports SoFi’s offerings, it simultaneously gains from the company’s scale and user insights, enabling ongoing improvements and expanded capabilities for its broader client base. Ultimately, the acquisition has evolved into a foundational advantage, positioning SoFi as a more vertically integrated fintech platform with tighter control over both its customer experience and the core technology that supports it.
Analyst Projections Signal Continued Growth Ahead
The Zacks Consensus Estimate for fourth-quarter 2025 EPS stands at 11 cents, indicating a 120% jump from the prior year. Earnings are forecasted to grow 140% in 2025, followed by 63% growth in 2026. Sales projections are similarly upbeat, with expected revenue growth of 32% in the third quarter, and full-year top-line expansion of 37% in 2025 and 25% in 2026.
Image Source: Zacks Investment Research
SOFI Faces Intense Competitive Pressure
Competition also remains a critical concern. SoFi may benefit from a first-mover advantage in the U.S. fintech space, but it faces formidable pressure from established banking powerhouses such as JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) . These institutions not only bring decades of customer trust and regulatory experience but are also rapidly expanding their digital capabilities to counter fintech disruptors.
JPMorgan has been actively investing in digital banking infrastructure, while Bank of America continues to enhance its mobile and AI-driven services to retain tech-savvy consumers. As SoFi scales, competing with legacy giants like JPMorgan and Bank of America will remain a defining test of its long-term resilience.
SoFi Remains a Compelling Buy
SoFi’s sharp rally reflects growing confidence in its expanding ecosystem, improving operating discipline and strengthening profitability profile. The company is steadily transforming into a fully integrated digital financial platform, supported by rising member engagement and deeper product adoption. Its technology backbone, enhanced through Galileo, provides a durable competitive edge that improves innovation speed and customer experience. Forward indicators point toward sustained business momentum, stronger margins and increasing brand relevance among younger, digitally oriented consumers. With scalable growth drivers firmly in place, SoFi still offers meaningful upside. We recommend a Buy for investors seeking a high-growth fintech stock.
Image: Bigstock
SOFI Stock Skyrockets 82% in 6 Months: Buy, Hold or Sell?
Key Takeaways
Shares of SoFi Technologies, Inc. (SOFI - Free Report) have surged 82% in the past six months against the industry’s 1% decline.
With such a steep rally, you might be wondering: Is there still room to buy, or is a pullback on the horizon? Here’s what our analysis suggests.
SoFi’s Strengthening Scalable Profitability
SOFI’s third-quarter 2025 results reflected 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.
Scalable profitability has emerged as the central force behind SOFI’sstronger guidance for 2025, reflected in raised expectations across every major metric. SOFI now anticipates adding approximately 3.5 million members, representing a 34% growth rate compared with the earlier forecast of 30%. This upward revision demonstrates the compounding effect of SoFi’s expanding ecosystem; more members mean higher product adoption and increased operating leverage.
Revenue expectations have also increased significantly. Adjusted net revenue is now projected at $3.54 billion, indicating 36% year-over-year growth and surpassing the prior $3.375 billion estimate. Profitability projections improved even more sharply: adjusted EBITDA is now guided to $1.035 billion, while adjusted net income is expected at $455 million with adjusted EPS of $0.37. SoFi’s most striking upgrade is tangible book value growth, now forecast at $2.5 billion, significantly above the earlier $640 million target. This signals enhanced capital strength and supports future lending and fee-driven expansion.
The broad upward revision suggests a business gaining structural efficiency as it scales. Strong member growth, improved cost discipline and expanding fee-based revenue streams are helping SoFi transition into a more durable, higher-margin financial platform with clearer visibility into long-term profitability.
Galileo Bracing SoFi’s Fintech Integration and Growth Path
Since acquiring Galileo Financial Technologies in 2020, SOFIhas significantly enhanced its fintech backbone by embedding Galileo’s payment-processing and technology capabilities across its expanding ecosystem. Galileo now powers essential functions, including buy now, pay later solutions and AI-driven customer engagement tools, forming a critical layer behind SoFi’s seamless, technology-first user experience.
Being under one corporate structure has opened the door to far deeper integration. SoFi can directly incorporate Galileo’s infrastructure into its product roadmap, avoiding the delays and limitations that come with third-party partnerships. This alignment improves speed to market, operational efficiency, and SoFi’s ability to innovate across digital banking, lending and personal finance.
The relationship also creates a powerful feedback loop. While Galileo supports SoFi’s offerings, it simultaneously gains from the company’s scale and user insights, enabling ongoing improvements and expanded capabilities for its broader client base. Ultimately, the acquisition has evolved into a foundational advantage, positioning SoFi as a more vertically integrated fintech platform with tighter control over both its customer experience and the core technology that supports it.
Analyst Projections Signal Continued Growth Ahead
The Zacks Consensus Estimate for fourth-quarter 2025 EPS stands at 11 cents, indicating a 120% jump from the prior year. Earnings are forecasted to grow 140% in 2025, followed by 63% growth in 2026. Sales projections are similarly upbeat, with expected revenue growth of 32% in the third quarter, and full-year top-line expansion of 37% in 2025 and 25% in 2026.
SOFI Faces Intense Competitive Pressure
Competition also remains a critical concern. SoFi may benefit from a first-mover advantage in the U.S. fintech space, but it faces formidable pressure from established banking powerhouses such as JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) . These institutions not only bring decades of customer trust and regulatory experience but are also rapidly expanding their digital capabilities to counter fintech disruptors.
JPMorgan has been actively investing in digital banking infrastructure, while Bank of America continues to enhance its mobile and AI-driven services to retain tech-savvy consumers. As SoFi scales, competing with legacy giants like JPMorgan and Bank of America will remain a defining test of its long-term resilience.
SoFi Remains a Compelling Buy
SoFi’s sharp rally reflects growing confidence in its expanding ecosystem, improving operating discipline and strengthening profitability profile. The company is steadily transforming into a fully integrated digital financial platform, supported by rising member engagement and deeper product adoption. Its technology backbone, enhanced through Galileo, provides a durable competitive edge that improves innovation speed and customer experience. Forward indicators point toward sustained business momentum, stronger margins and increasing brand relevance among younger, digitally oriented consumers. With scalable growth drivers firmly in place, SoFi still offers meaningful upside. We recommend a Buy for investors seeking a high-growth fintech stock.
SOFI stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.