SoFi Technologies SOFI is capturing investor attention in 2025 due to its exceptional growth momentum. Powered by a dramatic 43% revenue increase and a fivefold jump in profits, SoFi’s performance in the second quarter of 2025 outpaced most fintech peers.
The company reported record loan originations, with personal loans surging 66% and home loans nearly doubling year over year. Crucially, SoFi’s membership base expanded by over 34%, alongside a jump in customer deposits and the rapid scaling up of its technology platform.
The most important single factor for SOFI in 2025 is its consistently high growth rate. Management has raised its full-year outlook, projecting 30% revenue growth for the year, a remarkable figure for a fintech that is now firmly GAAP-profitable. SoFi’s ability to cross-sell, convincing customers to use its full array of products, has significantly increased revenue per user and positioned it as a leading digital financial “super app.”
While the company’s share price can be volatile, SoFi’s rapidly expanding addressable market and resilience amid higher interest rates are fueling robust optimism among analysts. In a crowded fintech space, sustained top-line growth seems to be the single most decisive factor keeping SoFi’s momentum alive this year.
No Safe Zones: SoFi Faces Block and Upstart
SoFi isn’t alone on this battlefield. It faces stiff competition from fintech peers like Block XYZ and Upstart UPST. Block, the powerhouse behind Square and Cash App, is firing on all cylinders with a well-oiled machine spanning consumer payment, business lending, and crypto. Block’s vertically integrated model is a formidable threat to SoFi’s expanding empire.
Then there’s Upstart, armed with AI-driven lending algorithms that are rewriting the rules of credit. With recent moves into auto and small-dollar loans, Upstart is giving tough competition to legacy lenders and SoFi’s turf, with aggressive tech-first strategies. Upstart’s AI risk modeling, similar to SoFi’s data-driven approach via Nova Credit, intensifies the competition.
SOFI’s Price Performance, Valuation, and Estimates
The stock has gained 48% year to date compared with the industry’s 1.8% rise.
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From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 48X, well above the industry’s 20X. It carries a Value Score of F.
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The Zacks Consensus Estimate for SOFI’s 2025 earnings has been on the rise over the past 60 days.
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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.
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See This Stock Now for Free >>Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report
Block, Inc. (XYZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
