SoFi Technologies Stock Before Q3 Earnings: To Buy or Not to Buy?

SoFi Technologies, Inc. SOFI will report its third-quarter 2025 results on Oct. 28, before the bell.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 9 cents, indicating 80% growth from the year-ago reported quarter. The consensus estimate for revenues stands at $890.8 million, implying 29.2% year-over-year growth.

There have been two upward revisions in earnings estimates in the past 60 days against one downward revision.

SOFI May Deliver Q3 Earnings Beat

Our model predicts a likely earnings beat for SOFI this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

SOFI has an Earnings ESP of +5.44% and a Zacks Rank of 3.

SOFI May Deliver Strong Segmental Growth

We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from the Financial Services, Lending, and Technology Platforms segments.

The consensus estimate for Financial Services revenues is pegged at $375.13 million, indicating 57.5% year-over-year growth. The consensus mark for Lending revenues is pegged at $464 million, indicating 17% year-over-year growth. The Technology Platform segment is expected to grow 13%.

Investment Considerations

SOFI has seen its stock skyrocket, fueled by investor confidence in its digital-first model and the growing contribution of fee-based income streams. Shares have gained a massive 88% this year compared with a 4% rise in its industry.

The company’s asset-light platform has scaled effectively, reducing reliance on traditional lending revenues and positioning SoFi as a disruptive force in consumer finance. Yet, the rally has pushed valuations into uncomfortable territory. Trading at a lofty forward earnings multiple, SoFi now carries expectations that may be difficult to sustain if growth slows, leaving little margin for error. The forward 12-month Price/Earnings ratio stands at 54.82X forward earnings, which is way higher than the industry’s average of 24.14X.

Despite the bullish run and rising earnings optimism, the stock carries a Zacks Rank #3 (Hold), a sign that the rocket ride may cool off in the short term as investors digest the valuation.

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

As SoFi feels a bit expensive right now, Block XYZ and Upstart UPST may offer better value. Block, trading at a forward P/E of 23.14X, stands out for its diversified ecosystem, including Cash App and Square. Investors value Block for its balanced revenue streams and long-term fintech vision. In a choppy market, XYZ may offer steadier ground.

Meanwhile, Upstart, with a forward P/E of 19.43X, continues to lean into its AI-driven lending platform. Though UPST has faced volatility, it remains a strong contender if credit conditions stabilize. For those seeking growth at more grounded valuations, both Block and UPST deserve consideration while SoFi cools off.

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

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