Is SoFi Stock a Buy Now?

Key Points

• SoFi added a record 846,000 customers in Q2, leading to strong revenue growth.

• Its streak of positive earnings is now at seven straight quarters.

• Shares of SoFi have surged during the past 12 months, but the stock still has considerable upside potential.

• 10 stocks we like better than SoFi Technologies ›

The U.S. banking industry is truly vast. According to the Federal Reserve Board, the total asset base of the top 10 banks in the U.S. is in excess of $10 trillion. These financial institutions are quite literally essential to the smooth functioning of our economy. However, the incumbents' strong positions don't mean that newcomers can't make some noise.

This is exactly what SoFi Technologies (NASDAQ: SOFI) is doing. In the years since its founding in 2011 as a student loan refinancer, it has rapidly evolved into a full-service digital banking powerhouse. Investors are taking notice: Its shares have soared by 235% just in the past year.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Is this booming fintech stock, which is trading near its record high, a smart buying opportunity right now?

Image source: SoFi Technologies.

Recipe for success

If you're reviewing this business's results in detail for the first time, its growth rate is probably what will draw your attention immediately. SoFi ended the second quarter with 11.7 million customers after adding a record 846,000 members in the period. Cumulatively, that membership figure was up 34% year over year.

SoFi leans on what it describes as its financial services productivity loop. It's essentially the company's growth playbook: Its new customers might first sign up for a checking or savings account, then expand to its other offerings, like a credit card, brokerage account, or personal loan.

This strategy is obviously working. Revenue increased 43% year over year in Q2. Wall Street sell-side analysts forecast that its top line in 2027 will be 95% higher than it was in 2024.

As SoFi continues on its current trajectory, introducing more products and services, and bringing on new customers, it should benefit more from the competitive moat that is created by switching costs -- an advantage that the big boys in the industry already possess. As customers come to handle more of their financial needs with SoFi and become entrenched in its ecosystem, they will be less likely to go to the trouble and expense of switching to a competitor.

To its credit, SoFi's target demographic is young and affluent consumers. Once they've joined, these people have higher lifetime values as customers due to their relative youth. And once they enter their peak earning years, they will surely need to access more of SoFi's offerings, which will support higher revenue for the business.

SoFi's improving bottom line

In the 2023 fourth quarter, SoFi reported earnings per share of $0.02. This was the first quarter that the company was profitable on a GAAP (generally accepted accounting principles) basis. Fast-forward to Q2 2025, and SoFi has been operating in the black for seven straight quarters. It went from a perennial money loser to being a consistent profit generator.

Two of SoFi's biggest operating expense categories are technology and product development, and sales and marketing. While investors certainly won't want the leadership team to ease up on the gas pedal in terms of pushing for growth, it undoubtedly has some leverage with these costs. In other words, SoFi should be able to increase its revenue at a faster rate than its expenses from here.

SoFi's net profit margin came in at 11% in Q2. That's far better than where it stood in prior periods, but there's still plenty of room for improvement. JPMorgan Chase, often viewed as the gold standard in the banking industry, posted a net profit margin of 33% during the second quarter. These companies have many differences, but that does show just how profitable a thriving financial services business can be.

Some investors might hesitate to consider buying a stock that has skyrocketed in the past 12 months, thinking that they've already missed the boat. But SoFi's rising earnings power, buoyed by its surging revenue, makes it an investment opportunity that's still worth taking a closer look at. SoFi has the potential to outperform the broader market during the next five years.

Should you invest $1,000 in SoFi Technologies right now?

Before you buy stock in SoFi Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,639!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.