SOFI Stock Skyrockets 80% in 3 Months: Too Late or Still a Bet?

Shares of SoFi Technologies, Inc. SOFI have surged 80% in the past three months, far exceeding the industry’s 4% growth. Over the last year, the stock has skyrocketed 262%. With such a steep rally, investors are now asking: Is there still room to buy, or is a pullback on the horizon? Here’s what the data suggests.

SOFI’s Strong Membership Growth Drives Momentum

SOFI continues to impress investors with robust user growth, delivering a record 850,000 new members in the second quarter of 2025. Total membership now stands at 11.7 million, reflecting an impressive 34% year-over-year increase. This expanding customer base is not just growing in number but also in engagement, as evidenced by the addition of 1.3 million new products during the quarter, a 34% increase compared to the prior year.

Particularly notable is that 35% of these new products were adopted by existing members, signaling strong cross-selling capabilities and effective product diversification. For investors, this trend indicates a solid and sticky customer foundation, reducing churn risk while enhancing lifetime customer value. SoFi’s ability to consistently grow its active member base enhances its revenue potential, positioning the company for sustainable long-term growth and improved competitive positioning in the fintech and financial services industry.

SOFI’s Expanding Fee-Based Income Strengthens Model

SOFI is advancing its transition toward a capital-light, fee-based business model, a development highly attractive to investors seeking sustainable growth. In the second quarter of 2025, total fee-based revenue surged by 72% year over year, reaching $378 million. This growth stems from diversified sources, including origination fees, referral commissions, interchange revenues and brokerage fees.

Annualized fee-based revenues now exceed $1.5 billion, significantly reducing reliance on traditional interest-based income. The shift enhances SoFi’s margin profile and lowers vulnerability to interest rate fluctuations or credit risk. Additionally, strong operating leverage is reflected in a record adjusted EBITDA margin of 29%, up 600 basis points year over year. The incremental EBITDA margin of 43% demonstrates disciplined cost management and scalability of the platform. For investors, this trend supports the thesis that SoFi is evolving into a more profitable, capital-efficient fintech leader, well-positioned for attractive long-term returns amid industry growth.

SOFI’s Earnings Momentum Holds Firm

The Zacks Consensus Estimate for third-quarter 2025 EPS stands at 8 cents, indicating a 60% jump from the prior year. Earnings are forecasted to grow 107% in 2025, followed by 81% growth in 2026.

Sales projections are similarly upbeat, with expected revenue growth of 26% in the third quarter, and full-year top-line expansion of 30% in 2025 and 22.5% in 2026.

SOFI Faces Intense Competitive Pressure

Competition also remains a critical concern. SoFi may benefit from a first-mover advantage in the U.S. fintech space, but it faces formidable pressure from established banking powerhouses such as JPMorgan JPM and Bank of America BAC. These institutions not only bring decades of customer trust and regulatory experience but are also rapidly expanding their digital capabilities to counter fintech disruptors.

JPMorgan has been actively investing in digital banking infrastructure, while Bank of America continues to enhance its mobile and AI-driven services to retain tech-savvy consumers. As SoFi scales, competing with legacy giants like JPMorgan and Bank of America alongside agile fintechs like Revolut, which is now pursuing a U.S. banking license, will remain a defining test of its long-term resilience.

Buy SOFI, Positioned for Growth

SOFI remains a strong buy due to its impressive market momentum and strategic positioning. The company continues to expand its customer base at a record pace, demonstrating effective product diversification and strong cross-selling capabilities. SoFi is successfully transitioning toward a fee-based, capital-light business model, enhancing profitability and reducing dependence on traditional interest income. This scalable model provides a competitive edge in a rapidly evolving financial landscape. Despite facing intense competition from large banks and agile fintech challengers, SoFi’s innovative platform and first-mover advantage support sustainable growth. Investors should consider buying SOFI to benefit from its long-term potential and industry leadership.

SOFI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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