SoFi's Q4 Earnings Show Strong Growth Despite Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SOFI?
Source: seekingalpha
SoFi Technologies Inc. saw its stock price decline by 5.98%, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.69% and the S&P 500 down 1.45%.
Despite reporting strong earnings for Q4 2025, SoFi's stock has faced negative investor sentiment, leading to a continued decline in its price. The company provided a strong guidance for 2026, indicating significant growth potential, but the market reaction has been lukewarm, reflecting concerns about future growth and valuation reassessment. Analysts still view SoFi as a leading growth stock in the banking sector, suggesting that the fundamentals remain strong despite the current stock performance.
The implications of SoFi's strong earnings and guidance indicate that while the stock is currently under pressure, the company's strategic positioning in the fintech sector may attract long-term investor interest as it continues to expand its market share.
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Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise
14 Analyst Rating
5 Buy
6 Hold
3 Sell
Hold
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
Current: 19.300
Low
18.00
Averages
28.31
High
38.00
About SOFI
SoFi Technologies, Inc. is a member-centric, one-stop shop for digital financial services. The Company, through its lending and financial services products, allows members to borrow, save, spend, invest and protect their money. The Company's segments include Lending, Technology Platform and Financial Services. The Lending segment offers personal loans, student loans, home loans and related servicing to help its members with a variety of financial needs. Its platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. The Technology Platform segment provides services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. The Financial Services segment offers a suite of financial services solutions, including SoFi Money and SoFi Invest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SoFi Technologies Shares Surge 141% Yet Still Attractive for Investors
- Stock Performance: As of February 13, SoFi Technologies' shares have surged 141% over the past two years, despite currently trading 39% below its peak from November 2025, indicating market volatility and profit-taking by investors.
- Revenue Growth: In Q4 2025, SoFi reported a 37% year-over-year increase in adjusted net revenue, with its customer base expanding from 10.1 million to 13.7 million, demonstrating the company's rapid growth and ability to attract new users.
- Profitability Improvement: Adjusted net income soared 112% in 2025, with expectations of a 72% increase in 2026, and the leadership team forecasts annualized adjusted earnings-per-share growth of 38% to 42% from 2025 to 2028, showcasing a strong profitability trajectory.
- Investment Timing: Despite SoFi's elevated forward price-to-earnings ratio of 32.7, investors may still consider holding the stock with a five to ten-year horizon to capitalize on long-term gains, reflecting confidence in the company's future growth potential.
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- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
- SoFi Customer Growth: SoFi Technologies (SOFI) has surpassed 13.6 million customers, an 8% increase from Q3, reflecting the success of its online banking model in a digital environment, even as its stock has fallen nearly 40% from its November peak.
- Analyst Optimism: Despite waning market confidence in SoFi, analysts maintain a consensus price target of $26.94, representing a 37% upside from current levels, indicating recognition of its future growth potential and an anticipated stock rebound soon.
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- Customer Base Expansion: In the last three months of 2025, SoFi added 1 million new customers, bringing the total to 13.7 million, indicating that its focus on innovation and product development has successfully attracted more users and enhanced customer loyalty.
- Cross-Border Payment Innovation: SoFi's partnership with Lightspark has launched a fast and low-cost cross-border payment service, enabling U.S. users to send money to over 30 countries, leveraging the Bitcoin Lightning network to enhance transaction speed and reduce costs, significantly improving user experience.
- Huge Market Potential: With remittances between the U.S. and India reaching $38 billion in 2024, SoFi aims to disrupt the traditional remittance market by lowering fees and processing times, attracting customers seeking better value propositions, and is poised for continued customer growth.
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- SoFi Customer Growth: SoFi added 1 million customers in Q4 2025, a 35% year-over-year increase, bringing total users to nearly 13.7 million, showcasing rapid expansion in the U.S. financial market with significant future growth potential.
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- Stock Performance: As of February 13, SoFi Technologies' shares have surged 141% over the past two years, despite currently trading 39% below its peak from November 2025, indicating market volatility and profit-taking by investors.
- Revenue Growth: In Q4 2025, SoFi reported a 37% year-over-year increase in adjusted net revenue, with its customer base expanding from 10.1 million to 13.7 million, demonstrating the company's rapid growth and ability to attract new users.
- Profitability Improvement: Adjusted net income soared 112% in 2025, with expectations of a 72% increase in 2026, and the leadership team forecasts annualized adjusted earnings-per-share growth of 38% to 42% from 2025 to 2028, showcasing a strong profitability trajectory.
- Investment Timing: Despite SoFi's elevated forward price-to-earnings ratio of 32.7, investors may still consider holding the stock with a five to ten-year horizon to capitalize on long-term gains, reflecting confidence in the company's future growth potential.
See More
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- Alphabet Cloud Growth: Despite a 11% decline in Alphabet's (GOOG) stock since early February, its cloud computing segment grew 48% year-over-year in Q4 2025, with operating profits up 53%, indicating strong potential in AI and expected sustained growth in the coming quarters.
- Search Business Stability: Alphabet's search business remains robust amid economic uncertainty, with Google Services' operating income increasing by 22% last quarter, demonstrating that its core business continues to be a strong cash flow source supporting future investments.
- SoFi Customer Growth: SoFi Technologies (SOFI) has surpassed 13.6 million customers, an 8% increase from Q3, reflecting the success of its online banking model in a digital environment, even as its stock has fallen nearly 40% from its November peak.
- Analyst Optimism: Despite waning market confidence in SoFi, analysts maintain a consensus price target of $26.94, representing a 37% upside from current levels, indicating recognition of its future growth potential and an anticipated stock rebound soon.
See More
SoFi Leverages Bitcoin Network for Innovative Cross-Border Payments
- Innovative Payment Solution: SoFi's partnership with Lightspark enables fast and low-cost cross-border payments using the Bitcoin Lightning network directly within its app, covering over 30 countries, significantly enhancing user experience and potentially attracting more customers.
- Strong Customer Growth: In 2025, SoFi's adjusted net revenue surged 38% year-over-year, adding 1 million new customers in the last three months alone, bringing the total to 13.7 million, showcasing robust growth momentum in the fintech sector.
- Massive Market Potential: Approximately $38 billion was remitted between the U.S. and India in 2024, and SoFi's innovative service aims to disrupt traditional barriers of high fees and long processing times, positioning itself to capture a share of this vast market.
- Rising Bitcoin Demand: By offering more convenient remittance services, SoFi not only enhances liquidity for users but also has the potential to drive demand and transaction volume for Bitcoin, which could elevate its price in the long run.
See More
SoFi Technologies Sees Significant Customer Growth
- Significant Revenue Growth: In 2025, SoFi Technologies reported a 38% year-over-year increase in adjusted net revenue, demonstrating strong market performance and ongoing business expansion, which further solidifies its competitive position in the fintech sector.
- Customer Base Expansion: In the last three months of 2025, SoFi added 1 million new customers, bringing the total to 13.7 million, indicating that its focus on innovation and product development has successfully attracted more users and enhanced customer loyalty.
- Cross-Border Payment Innovation: SoFi's partnership with Lightspark has launched a fast and low-cost cross-border payment service, enabling U.S. users to send money to over 30 countries, leveraging the Bitcoin Lightning network to enhance transaction speed and reduce costs, significantly improving user experience.
- Huge Market Potential: With remittances between the U.S. and India reaching $38 billion in 2024, SoFi aims to disrupt the traditional remittance market by lowering fees and processing times, attracting customers seeking better value propositions, and is poised for continued customer growth.
See More
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- Repayment Plan Changes: Starting July 1, under Trump's 'One Big Beautiful Bill,' Parent PLUS borrowers will only have the new Standard Repayment Plan, which extends repayment terms and increases interest costs, potentially jeopardizing their financial stability.
- Loan Limit Restrictions: The new regulations impose an annual borrowing limit of $20,000 and a lifetime cap of $65,000 for Parent PLUS loans, which will restrict parents' ability to finance their children's education and may exacerbate educational debt burdens.
- Need for Loan Consolidation: Borrowers must apply for Direct Consolidation Loans by March 31 to maintain access to Income-Driven Repayment plans; failing to consolidate in time could result in losing loan forgiveness options and increasing financial strain.
- Importance of Future Planning: Parent borrowers need to plan ahead, as taking out new Parent PLUS loans after July 1, 2026, will forfeit access to Income-Driven Repayment plans, forcing them into the new Standard Repayment Plan, which could adversely affect their long-term financial health.
See More
Future Potential of Digital Bank Stocks
- Nu Holdings Growth Momentum: As an all-digital bank in Brazil, Nu Holdings has attracted over 60% of the adult population, onboarding 1 million new users monthly, indicating significant potential in the Latin American market and expected to continue rewarding investors.
- Market Expansion Plans: Nu is applying for a banking charter in the U.S. to further expand its market, with substantial growth opportunities in Mexico and Colombia, strategically enhancing its competitive position.
- SoFi Customer Growth: SoFi added 1 million customers in Q4 2025, a 35% year-over-year increase, bringing total users to nearly 13.7 million, showcasing rapid expansion in the U.S. financial market with significant future growth potential.
- Significant Revenue Growth: SoFi's financial services revenue surged 78% year-over-year in Q4, with contribution profit doubling, indicating success in non-lending services and positioning it to continue outperforming other bank stocks.
See More
