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SoFi
(NASDAQ:SOFI)
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Rating:65Neutral
Price Target:
$17.00
▼(-10.53% Downside)
Action:Reiterated
Date:08/07/26
SOFI’s score is driven primarily by improving profitability and a strong, guidance-positive earnings call with clear operating momentum (growth, originations, member/product expansion, and improving credit). The rating is held back by materially negative operating/free cash flow that raises funding and durability concerns, alongside a relatively high P/E valuation and only mixed technical signals (still below the 200-day average).
Positive Factors
Member and product expansion
Rapid member and product growth strengthens SoFi’s platform economics by expanding its customer base and increasing cross-selling potential. Rising products per member and accelerating adoption can support recurring fee, interchange, and lending revenues while improving retention and lifetime value.
Negative Factors
Persistent cash consumption
Deeply negative operating and free cash flow create a material disconnect between reported profitability and internally generated cash. Continued cash consumption may increase reliance on external funding or balance-sheet capacity, limiting flexibility and making earnings durability more dependent on financing conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Member and product expansion
Rapid member and product growth strengthens SoFi’s platform economics by expanding its customer base and increasing cross-selling potential. Rising products per member and accelerating adoption can support recurring fee, interchange, and lending revenues while improving retention and lifetime value.
Read all positive factors
SoFi Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue streams from different segments, revealing which parts of the business are most lucrative and where there might be room for growth.
Analyzes revenue streams from different segments, revealing which parts of the business are most lucrative and where there might be room for growth.
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The Fly
The FlySoFi (SOFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.41B
Dividend YieldN/A
Average Volume (3M)42.59M
Price to Earnings (P/E)31.0
Beta (1Y)2.44
Revenue Growth34.08%
EPS Growth-0.29%
CountryUS
Employees6,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.51
Shares Outstanding1,291,570,300
10 Day Avg. Volume42,441,522
30 Day Avg. Volume42,594,505
Financial Highlights & Ratios
PEG Ratio-7.17
Price to Book (P/B)2.87
Price to Sales (P/S)6.31
P/FCF Ratio-7.56
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue4.31
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda24.07
Forecast
1Y Price Target
$20.57Price Target Upside8.25% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)0.59
Revenue Forecast (FY)$4.85B
SoFi Business Overview & Revenue Model
Company Description
SoFi Technologies, Inc. specializes in delivering a wide array of online financial solutions. The company's business is structured across three main divisions: Lending, Technology Platform, and Financial Services. Through its diverse offerings, So...
How the Company Makes Money
SoFi makes money through a mix of interest income, fee-based revenues, and B2B technology revenues:
1) Lending (interest income and loan-related income)
- Net interest income: SoFi originates consumer loans (notably personal loans, and also stude...
SoFi Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operating and financial results: robust top-line growth (+40% YoY), record member and product additions, record loan originations, improving credit metrics, expanding fee-based and platform businesses, and materially higher tangible book value. Management raised revenue guidance while maintaining disciplined capital and reinvesting incremental revenue into new growth initiatives (SoFi Plus, Coach, Big Business Banking, SMB, STS). Principal negatives were a higher-than-expected tax rate that reduced EPS, modest declines in fair-value loan marks driven by higher discount rates, and selective unfulfilled loan-platform demand due to capital/prioritization decisions. Overall, positives materially outweigh the challenges, with strong momentum and visible paths to longer-term return targets.Positive Updates
Record Revenue and Strong Profitability
Adjusted net revenue $1.2B, up 40% year-over-year; adjusted EBITDA $358M, up 44% YoY with a 30% margin; adjusted net income $160M (margin 13%); net income up 61% YoY. Adjusted EPS $0.12 (impacted by higher tax rate).
Negative Updates
Higher-Than-Expected Tax Rate Reduces EPS
Full-year tax rate guidance raised to ~22% (≈700 bps higher than original assumption), which reduced reported EPS by roughly $0.05 in the quarter and lowered FY EPS guidance from a hypothetical $0.65 to $0.60.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Profitability
Adjusted net revenue $1.2B, up 40% year-over-year; adjusted EBITDA $358M, up 44% YoY with a 30% margin; adjusted net income $160M (margin 13%); net income up 61% YoY. Adjusted EPS $0.12 (impacted by higher tax rate).
Read all positive updates
Company Guidance
Management guided full‑year 2026 adjusted net revenue of $4.75–$4.85 billion (≈32–35% y/y), adjusted EBITDA of ≈$1.6 billion (≈33–34% margin), adjusted net income of ≈$825 million (~17% margin) and EPS of ≈$0.60 (assuming a 22% tax rate, ~700 bps higher than prior guidance; at the earlier mid‑teens tax rate EPS would be ~$0.65). They expect a net interest margin above 5% for the foreseeable future, now model 1–2 Fed hikes in 2026 (vs. prior expected cuts), and reiterated medium‑term targets of 20–30% return on tangible common equity (anchored by a 25–30% net‑income margin and roughly $1 of revenue per $1 of tangible equity) while planning to let the risk‑based capital ratio normalize toward the low‑to‑mid‑teens.SoFi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.58B | 4.77B | 3.70B | 2.90B | 1.76B | 1.09B |
| Gross Profit | 4.27B | 3.58B | 2.58B | 2.05B | 1.52B | 977.30M |
| EBITDA | 1.00B | 760.01M | 436.84M | -99.74M | -167.36M | -379.61M |
| Net Income | 636.26M | 481.32M | 498.67M | -300.74M | -320.41M | -483.94M |
Balance Sheet | ||||||
| Total Assets | 60.95B | 50.66B | 36.25B | 30.07B | 19.01B | 9.18B |
| Cash, Cash Equivalents and Short-Term Investments | 7.35B | 7.36B | 4.34B | 3.59B | 1.46B | 689.62M |
| Total Debt | 3.41B | 1.93B | 3.20B | 5.36B | 5.63B | 4.19B |
| Total Liabilities | 49.87B | 40.17B | 29.73B | 24.52B | 13.48B | 4.48B |
| Stockholders Equity | 11.08B | 10.49B | 6.53B | 5.55B | 5.53B | 4.70B |
Cash Flow | ||||||
| Free Cash Flow | -4.98B | -3.98B | -1.28B | -7.35B | -7.36B | -1.40B |
| Operating Cash Flow | -4.69B | -3.74B | -1.12B | -7.23B | -7.26B | -1.35B |
| Investing Cash Flow | -12.59B | -6.72B | -4.82B | -1.89B | -106.33M | 110.19M |
| Financing Cash Flow | 18.14B | 13.11B | 5.03B | 10.89B | 8.44B | 684.99M |
SoFi Technical Analysis
Negative
19.00
Price Trends
17.39
Negative
17.28
Negative
18.67
Negative
Market Momentum
-0.51
Positive
38.93
Neutral
33.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOFI, the sentiment is Negative. The current price of 19 is above the 20-day moving average (MA) of 16.36, above the 50-day MA of 17.39, and above the 200-day MA of 18.67, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOFI.
SoFi Risk Analysis
SoFi disclosed 102 risk factors in its most recent earnings report. SoFi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoFi Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.69B | 7.38 | 20.94% | 1.70% | -2.40% | 18.50% | |
69 Neutral | $122.24B | 12.33 | 9.28% | 1.61% | 37.99% | 722.44% | |
68 Neutral | $27.23B | 14.13 | 47.91% | ― | 32.43% | 3583.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.45B | 8.42 | 23.07% | 7.49% | 6.93% | 19.96% | |
65 Neutral | $20.41B | 30.98 | 6.18% | ― | 34.08% | -0.29% | |
59 Neutral | $11.43B | 8.76 | 9.42% | 3.19% | 1.97% | 174.08% |
* Financial Sector Average
SOFI
SoFi
15.80
-11.34
-41.78%
COF
Capital One Financial
199.26
-5.17
-2.53%
ALLY
Ally Financial
37.59
0.79
2.13%
SYF
Synchrony Financial
72.80
3.81
5.52%
OMF
OneMain Holdings
56.07
6.48
13.07%
AFRM
Affirm Holdings
80.70
7.52
10.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.