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 $27.14 as of October 13th. SOFI’s trailing and forward P/E were 51.94 and 47.17 respectively according to Yahoo Finance.

SoFi (SOFI) has delivered exceptional execution, significantly outpacing its medium-term guidance following its first GAAP profitable quarter in Q4 2023. The company initially guided for $0.55–$0.80 EPS in 2026, with growth targets across Lending, Tech Platform, Financial Services, and disciplined cost control. Lending has surged well ahead of schedule, growing 27% in Q1 and 32% in Q2 2025, fueled by a stronger macro environment and a recent capital raise that expands balance sheet capacity and improves net interest margins. Contribution margins appear lower due to the loan platform business (LPB) structure, but this is offset by high-margin revenue recognition in Financial Services, keeping overall profitability above expectations.

Financial Services, driven by the LPB launched in Q3 2024, has emerged as a primary growth engine, posting 101% and 106% growth in Q1 and Q2 2025, with contribution margins reaching 52% in Q2. This segment’s exceptional operating leverage suggests long-term margins could stabilize above 60%, with further upside potential if reinvestment priorities are managed efficiently.

The Tech Platform segment has underperformed, growing around 15% in Q2, below the 25% target, and leadership changes aim to improve execution. Other expenses have risen modestly but remain within acceptable limits given revenue outperformance, while corporate revenue volatility introduces some modeling uncertainty but does not materially impact the overall growth trajectory.

With these dynamics, SoFi is on track to comfortably exceed its 2026 guidance, with projected EPS of $0.75 and revenue well ahead of analyst expectations. The company’s strong balance sheet, reinvestment capacity, and continued growth in high-margin segments position it to accelerate further, making it a compelling opportunity with both upside and resilience, rather than merely coasting to its targets.

Previously we covered a bullish thesis on SoFi Technologies, Inc. (SOFI) by Oliver | MMMT Wealth in May 2025, which highlighted strong revenue growth, expanding membership, breakout Financial Services results, and improving profitability. The company's stock price has appreciated approximately 111% since our coverage. The thesis still stands as SoFi continues to exceed guidance. Data Driven Investing shares a similar perspective but emphasizes segment-level execution and operating leverage driving profitability.

SoFi Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held SOFI at the end of the second quarter which was 44 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.