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

We came across a bullish thesis on SoFi Technologies, Inc. on Data Driven Investing’s Substack. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc.'s share was trading at $25.54 as of August 29^th. SOFI’s trailing and forward P/E were 51.08 and 75.19 respectively according to Yahoo Finance.

SoFi Technologies (SOFI) delivered a standout quarter, surpassing expectations across nearly every metric and reinforcing its position as a top U.S. fintech. Revenue surged 43.8% YoY, the strongest absolute growth in its history, while EBITDA and net income margins hit record highs of 29% and 11.4%. Incremental EBITDA margins reached 43%, suggesting SoFi’s long-term profitability could exceed its 30% target and approach 40%+. This performance lifted its Rule of 40 score to 73, unmatched in consistency by peers such as Robinhood, Affirm, and Shift4.

Personal loan originations soared to $7.0B, outpacing estimates by over $1B, while the Lending Platform Business (LPB) continued its meteoric rise, growing 57% QoQ to $2.45B in originations. In just one year, LPB has scaled into a $500M+ run-rate business and is on track to rival Upstart’s decade-old platform. Financial Services also stunned, with revenue of $362.5M, up 358% YoY and contribution margins of 52%, far above long-term guidance. Galileo, the tech platform, showed renewed growth at 15% YoY with stabilizing contribution margins, aided by new client wins such as Banco Nacion.

Engagement is deepening, with annualized debit and credit card spend doubling to $18B, far outpacing membership growth. Credit cards, once a drag, are recovering as charge-offs fall sharply, setting up a new growth vector. While risks remain around student loan strategy and LPB cyclicality, profitability continues to outstrip expectations. Adjusted EBITDA of $249M beat guidance by $44M, driving net income of $98M and EPS of $0.084, both well above consensus. With management targeting 25% revenue compounding “for decades,” SoFi’s execution and momentum point toward durable long-term upside.

Previously we covered a bullish thesis on SoFi Technologies, Inc. (SOFI) by Oliver | MMMT Wealth in May 2025, highlighting consistent beats, membership growth, and expanding financial services. The stock has appreciated ~98% since, as profitability and growth exceeded expectations. The thesis still stands with strong ecosystem scaling. Data Driven Investing shares a similar view but emphasizes record margins and LPB momentum.

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.