Now, SoFi Technologies (SOFI 0.68%), a most enterprising concern, has been doing rather well for itself lately, hasn’t it? A gain of 229% over the past three years is, if I may say so, not to be sneezed at. It continues to exhibit a robustness that would make a prize-winning bulldog proud, and the future, viewed through rose-tinted spectacles, appears distinctly bright. Let us, therefore, investigate five reasons why a punt on SoFi stock might not be the most frightful of errors, despite the market giving its latest report a bit of a chilly reception.
1. A Flood of New Customers, What Ho!
SoFi, it seems, is attracting new customers to its digital banking platform at a positively dizzying rate, breaking its own records with each passing quarter. Observe, if you will, the numbers:
| Metric | Q1 ’25 | Q2 ’25 | Q3 ’25 | Q4 ’25 |
|---|---|---|---|---|
| Customer Additions | 800,000 | 850,000 | 905,000 | 1 million |
In the fourth quarter of ’25, those additions represented a 35% leap year-on-year, bringing the total to a respectable 13.7 million. Management, a rather optimistic bunch, are forecasting a further 30% increase in accounts for the coming year. A most promising state of affairs, wouldn’t you agree?
2. The Cross-Selling Caper
There are, broadly speaking, two ways a business can flourish: attracting new patrons and persuading existing ones to acquire more of its wares. SoFi, with a touch of genius, is excelling at both. They’ve adopted a “one-stop shop” approach, aiming to provide everything a customer could possibly desire within their app.
Starting life as a loan provider, they’ve expanded into a full-blown financial emporium, encompassing bank accounts, credit cards, and even dabbling in the rather modern world of cryptocurrency, utilising the blockchain to facilitate global payments. They’re even extending this approach to their business-to-business tech platform.
Usage of new products increased by a handsome 37% year-on-year to 20.2 million in the fourth quarter, with a substantial 40% of these being opened by existing SoFi account holders. A clever bit of work, that, and a testament to the appeal of their offerings.
3. Revenue on the Up and Up
This burgeoning membership and product range is, naturally, translating into impressive revenue growth. Adjusted net revenue rose by a noteworthy 37% year-on-year in the quarter, with recent quarters demonstrating an even more accelerated pace.
This is partly due to a resurgence in the loan business, which had been somewhat subdued when interest rates were at their peak. Now that rates are easing, lending revenue has perked up, increasing by 15% year-on-year in the fourth quarter.
However, the real growth is happening in the financial services segment – all those services beyond lending and the tech platform. Sales there were up a staggering 78% year-on-year in the fourth quarter. This is where the innovation is occurring, including those cryptocurrency trading and blockchain-based products, and where SoFi is offering access to private equity funds and initial public offerings (IPOs) like the rather fashionable Figma.
Tech platform revenue – a sign of renewed demand for SoFi’s financial infrastructure systems – increased by 19% year-on-year. While this segment has been a bit of a slow starter, it appears to be gaining momentum. Management has grand plans to introduce more blockchain services, and clients are showing interest, recognising the potential value these services can add.
4. Credit Metrics Improving, Huzzah!
As the company expands its customer base and gathers more data, and with interest rates beginning to soften, its credit metrics are, thankfully, showing improvement.
Personal loan charge-offs decreased from 3.37% in the fourth quarter of ’24 to 2.8% in the fourth quarter of ’25, and most other metrics were in line with expectations and trending downwards.
This area, naturally, carries the biggest risks, but as this small bank grows, it seems to be handling them with increasing competence.
5. Profits on the Rise, Jolly Good!
As SoFi scales up its operations, it’s becoming increasingly profitable. Earnings per share (EPS) rose from $0.05 to $0.13 year-on-year in the fourth quarter and from $0.15 to $0.39 for the full year.
Despite these sound results, the stock price dipped after the report. This may have been due to broader economic anxieties and pronouncements from the Federal Reserve, or perhaps a reaction to management’s cautious forecast for slower growth this year. Regardless, SoFi Technologies stock appears even more attractive at the lower price, and seems like a rather splendid buy today.
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2026-02-02 21:58