SoFi Technologies, Inc. (SOFI)
NEUTRALFundamental
46
Price
$18.91
Market Cap
$23.56B
Part 1 · What the company is worth
Overview
SoFi is a digital financial-services company built around a single mobile app and no physical branches. It began by refinancing student loans for graduates of selective colleges and has since added personal loans, mortgages, a checking and savings account, brokerage, and credit cards. Since 2022 it has held a national bank charter, letting it fund loans with customer deposits instead of only external capital. A separate unit, born from acquiring Galileo and Technisys, sells the banking software that runs SoFi's own accounts to other financial companies.
How it makes money
SoFi earns from three different mechanisms at once. Lending revenue comes from interest on loans held on the balance sheet and from gain-on-sale when loans are packaged and sold to investors, so it moves with interest rates and loan volume. Financial Services revenue comes from fees on deposits, cards, and brokerage activity across its own members. Technology Platform revenue is a business-to-business software fee, charged per account to banks and fintechs that run on SoFi's infrastructure rather than build their own.
Revenue by segment
Personal loans, student loan refinancing and mortgages, originated digitally and either held for interest income or sold to investors for a gain.
SoFi Checking and Savings, Invest, credit cards and other consumer products cross-sold to the same member base that started with a loan.
Banking-as-a-service infrastructure, built from the Galileo and Technisys acquisitions, sold to other banks and fintechs that need account and card processing.
Competitive moat
Switching costs · NarrowSoFi cross-sells lending, banking, and investing to the same member inside one app, and a member who moves a paycheck's direct deposit there gains fee waivers and rate discounts that make leaving mildly costly. But digital banking has many capable rivals, deposit rates are easy to compare, and nothing stops a member from banking elsewhere for a better rate.
What drives demand
CyclicalLending is still SoFi's largest segment, and loan demand and credit performance move with interest rates and the broader economy: refinancing slows when rates rise, and defaults climb in a downturn. The bank charter smooths funding costs but does not remove the underlying sensitivity of a lending business to the credit cycle.
Key risks
- Interest rate and credit cycle exposure — Rising rates reduce demand for refinancing and new loans, while a weakening economy raises defaults on the loans SoFi still holds on its own balance sheet.
- Extensive financial regulation — As a bank holding company, SoFi answers to federal and state banking, consumer-protection and securities regulators at once, and a change in any of their rules can raise costs or restrict a product line.
- Dependence on selling loans to investors — A meaningful share of lending revenue comes from packaging and selling loans to outside investors; if that market cools, SoFi must either hold more loans itself or shrink originations.
- Crowded digital banking market — Neobanks, traditional banks and fintech apps all compete for the same deposits and loans, and low switching costs mean SoFi must keep winning members on price and features.
The case for
Buyers argue that a bank charter lets SoFi fund loans more cheaply than pure fintech rivals, that cross-selling three product lines to the same member lifts revenue per user over time, and that Technology Platform gives it a second, less cyclical business selling infrastructure to other financial firms.
The case against
Sellers fear that SoFi is still fundamentally a lender whose fortunes rise and fall with interest rates and consumer credit quality, that Financial Services and Technology Platform growth rates will cool as the member base matures, and that competition from banks and other fintechs keeps pricing power limited.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$4.31B
Trailing 12 months (through 6/30/2026)
Net Income
$636M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-3.98B
Total Equity
$10.49B
Total Liabilities
$40.17B
Current Ratio
-
Interest Coverage
0.27
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$11.38
Current Price
$18.91
Margin of Safety
-66.2%
Fair Value Range
$7.40 - $15.37
Estimation Methods
Valuation Metrics
P/E Ratio
37.22
ROE
4.6%
P/B Ratio
2.13
P/FCF
-
Gross Margin
83.9%
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
17.2%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (8)
- EPS shows upward trend
- Gross Margin 83.9%
- P/B Ratio 2.13
- Debt/Equity ratio
- Operating Margin 17.1%
- Low reliance on intangibles
- Earnings Surprise avg 12.0%
- Share Dilution -3.5%
Failed (11)
- Price CAGR 3.65%
- Positive Free Cash Flow
- Interest Coverage
- Return on Tangible Assets
- Price below Graham Number
- DCF valuation (Unknown)
- ROE 6.2%
- Analyst Consensus 43% Buy
- Earnings Quality (OCF/NI) -13.36
- Net Margin Trend 14.8% vs 18.4%
- Piotroski F-Score 4/9
Unavailable (8)
- ROIC NaN%
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Revenue Growth 5Y (Finnhub)
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. George Thompson Hutton | Independent Non Executive Chairman | 69 |
| Mr. Anthony J. Noto | CEO & Director | 56 |
| Mr. Christopher Lapointe | Chief Financial Officer | 41 |
| Mr. Jeremy Rishel | Chief Technology Officer | 52 |
| Dr. Kelli A. Keough | Executive VP and Group Business Unit Leader for Spend, Invest, Protect & Save | 55 |
| Mr. Arun Pinto | Chief Risk Officer | 46 |
| Mr. Tom Karinshak | EVP & Head of Global Operations | - |
| Mr. Robert Steven Lavet J.D. | General Counsel | 76 |
| Ms. Lauren Stafford Webb | Chief Marketing Officer | 39 |
| Mr. William F. Tanona C.F.A. | Senior Vice President of Corporate Development & Strategic Partnerships | 52 |
Audit Risk
5
Board Risk
6
Compensation Risk
4
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for SOFI, sourced from Markets Gazette.
- 27d agoNEGATIVEWhy SoFi’s stock drops, even after its earnings beat expectations
SoFi Technologies Inc. experienced a stock price decline despite beating earnings expectations, as investors reacted negatively to the neobank's cautious future guidance. While the company reported better-than-expected financial results for the period, the outlook provided for the upcoming quarters fell short of market consensus. This discrepancy between current performance and future projections has led to a sell-off, indicating that forward-looking statements are heavily influencing investor sentiment and valuation for the fintech firm.
- 27d agoNEGATIVEWhy SoFi’s stock is dropping, even after its earnings beat expectations
SoFi Technologies Inc. saw its stock price decline despite reporting earnings that surpassed analyst expectations. The disappointment stems from the neobank's cautious forward-looking guidance, which failed to inspire investor confidence for future growth. While the company delivered a strong current quarter, the subdued outlook suggests potential headwinds or a more conservative growth trajectory ahead. Investors are likely recalibrating their expectations based on this tempered forecast, leading to the sell-off.
- 6/18/2026POSITIVESoFi Stock Is Rising Thursday: What's Driving The Move?
SoFi Technologies Inc. stock saw a notable increase on Thursday, fueled by significant insider buying activity from CEO Anthony Noto. This strategic investment by the company's leader signals strong conviction in SoFi's future prospects. The positive momentum is further amplified by a broader 'risk-on' sentiment in the technology sector, suggesting a favorable environment for growth-oriented companies. Investors are likely interpreting Noto's actions as a vote of confidence, potentially leading to increased institutional interest and upward price pressure.
- 6/16/2026POSITIVESoFi Stock Is Climbing Despite A Broader Tech Selloff: What's Going On?
SoFi Technologies Inc. is experiencing a notable stock price increase, defying a broader downturn in the technology sector. This upward momentum is largely attributed to investor enthusiasm surrounding the company's recent foray into the cryptocurrency space with the launch of its SoFiUSD stablecoin. The crypto-adjacent narrative appears to be resonating with traders, driving demand for SoFi's stock despite prevailing market headwinds. This suggests a positive market perception of SoFi's diversification strategy and its potential to capitalize on emerging digital asset trends.
- 6/12/2026NEUTRALSoFi Stock Pauses Friday: What's Going On?
SoFi Technologies shares experienced a slight dip on Friday, with traders evaluating the recent launch of its SoFiUSD stablecoin. The move occurs within a broader 'risk-on' market environment, suggesting that while the stablecoin rollout is a notable development for the fintech company, its immediate impact on the stock price is being absorbed amidst prevailing market sentiment. Investors are likely assessing the long-term implications of the stablecoin for SoFi's revenue streams and competitive positioning in the digital asset space.
- 5/29/2026POSITIVESoFi Shares Surge On Stablecoin Rollout: What Investors Need To Know
SoFi Technologies Inc. shares experienced a pre-market surge on Friday following the announcement of its new US dollar stablecoin feature. This strategic move integrates cryptocurrency-adjacent services into the company's existing financial platform, potentially attracting a new segment of users and diversifying revenue streams. The stablecoin's rollout is expected to enhance SoFi's competitive positioning in the fintech landscape, offering investors a glimpse into the company's innovative growth strategy and its ability to adapt to evolving market trends.
- 5/27/2026POSITIVEFalcon Finance, SoFi unveil stablecoin products tied to banking infrastructure
SoFi Technologies Inc. has launched its new stablecoin product, SoFiUSD, aimed at consumer banking users via its mobile application. This move integrates digital assets directly into its existing banking infrastructure, potentially attracting new customers and increasing engagement within its ecosystem. The stablecoin's tie to banking infrastructure suggests a focus on stability and regulatory compliance, which could appeal to a broader user base. For investors, this represents an expansion of SoFi's product offerings and a strategic step into the growing digital currency market, leveraging its established financial services platform.
- 5/26/2026POSITIVESoFi Stock Climbs Tuesday: What's Driving The Move?
SoFi Technologies Inc. (NASDAQ: SOFI) experienced a notable increase in its stock price on Tuesday, coinciding with a broader improvement in market sentiment. Major index ETFs saw gains, indicating a general uptick in investor risk appetite. This positive market environment appears to be a key driver for SOFI's upward movement, suggesting that the company's stock is benefiting from a favorable macroeconomic backdrop. Investors are likely viewing the improved risk appetite as a signal to invest in growth-oriented companies like SoFi.
- 5/22/2026NEUTRALSoFi Stock Edges Lower Friday: What's Driving The Move?
SoFi Technologies Inc. shares experienced a slight decline on Friday, as market participants assessed the stability of the stock following its recent earnings report. The trading action suggests a period of consolidation as investors evaluate whether the post-earnings pullback has found a floor. While the immediate price movement is downward, the focus is on whether the current levels represent a stabilization point or the beginning of a further descent. Investors are closely watching for any signs of renewed buying interest or continued selling pressure to gauge the stock's short-term trajectory.
via Markets Gazette