SoFi Technologies, Inc. (SOFI): A Bull Case Theory

We came across a bullish thesis on SoFi Technologies, Inc. on Daniel Romero’s Substack. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc.'s share was trading at $22.40 as of July 29^th. SOFI’s trailing and forward P/E were 44.80 and 75.76, respectively according to Yahoo Finance.

SoFi Technologies delivered a strong quarter, beating expectations across revenue, adjusted EBITDA, and EPS, while also raising full-year guidance. Revenue grew 43.7% YoY to $858.2M, driven by strength across personal loans, membership growth, and an improving margin profile. Members rose to 11.75M, up 34% YoY, and EBITDA surged to $249.1M, nearly 20% above estimates—translating into a 29% EBITDA margin. Loan origination has reaccelerated, and with the Federal Reserve expected to cut rates and the housing market set to revive, SoFi is primed to surpass its 2021 origination levels, now operating as a fully licensed bank with 3M mortgage-ready members currently borrowing elsewhere.

Meanwhile, the Technology Platform, specifically Galileo, dispelled growth concerns with new travel and hospitality clients, including Wyndham, and more to come. SoFi is also expanding aggressively into blockchain, launching automated self-serve international money transfers using blockchain rails, enabling faster, cheaper cross-border payments. The crypto investing platform is returning amid user preference for SoFi’s regulated structure.

SoFi also holds a unique regulatory advantage in launching stablecoins under the Genius Act, ahead of traditional banks. Furthermore, they are exploring the tokenization of loans—making personal credit investments accessible to retail investors—alongside plans to enable borrowing against crypto, staking, and embedded blockchain infrastructure through Galileo.

Despite trading at 74x 2025 EPS, the company’s 100% net income growth guidance, improving margins, and multi-year 20%+ ROI potential support the valuation. By 2027, the forward P/E is projected to compress to ~30x, making SoFi a high-growth fintech compounder with durable upside and multiple catalysts.

Previously, we covered a bullish thesis on SoFi Technologies, Inc. by Oliver | MMMT Wealth in May 2025, which highlighted consistent earnings beats and strong financial services growth. The company’s stock has appreciated ~74% since our coverage as the thesis played out. Daniel Romero shares a similar view but emphasizes SoFi’s blockchain initiatives and regulatory edge in stablecoins.

SoFi Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held SOFI at the end of the first quarter which was 43 in the previous quarter. While we acknowledge the potential of SOFI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.