SoFi Technologies Shares Surge 416% Over Three Years, Profitability Improves Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Significant Profit Growth: SoFi's adjusted net revenue surged 126% from Q3 2022 to Q3 2025, indicating its success in the competitive financial services sector, with projected adjusted net income reaching $455 million in 2025, a substantial improvement from a $54 million net loss in 2023.
- Strong User Growth: The surge in SoFi's customer base reflects its exceptional user experience, allowing it to stand out in a commoditized financial product market, thereby enhancing customer loyalty and market share, which further drives the company's long-term growth potential.
- Innovative Product Launches: SoFi's partnership with Lightspark enables fast and low-cost cross-border transfers leveraging the Bitcoin Lightning network, alongside the introduction of cryptocurrency trading on its platform, which is expected to attract more affluent and younger customers, enhancing the company's competitive edge.
- Optimistic Market Outlook: While analysts view Upstart as a promising stock with a 24% upside potential, SoFi's profitability and clearer path to success make it a more attractive investment choice, despite its higher valuation with a forward P/E ratio of 46.1.
Analyst Views on SOFI
Wall Street analysts forecast SOFI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOFI is 27.21 USD with a low forecast of 12.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
5 Buy
7 Hold
4 Sell
Hold
Current: 26.670
Low
12.00
Averages
27.21
High
38.00
Current: 26.670
Low
12.00
Averages
27.21
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.
