SoFi's Upgraded Outlook Driven by Strengthening Scalable Profitability

Scalable profitability has emerged as the central force behind SoFi Technologies’ SOFI stronger guidance for 2025, reflected in raised expectations across every major metric. SOFI now anticipates adding approximately 3.5 million members, representing a 34% growth rate compared with the earlier forecast of 30%. This upward revision demonstrates the compounding effect of SoFi’s expanding ecosystem; more members mean higher product adoption and increased operating leverage.

Revenue expectations have also increased significantly. Adjusted net revenue is now projected at $3.54 billion, indicating 36% year-over-year growth and surpassing the prior $3.375 billion estimate. Profitability projections improved even more sharply: adjusted EBITDA is now guided to $1.035 billion, while adjusted net income is expected at $455 million with adjusted EPS of $0.37. SoFi’s most striking upgrade is tangible book value growth, now forecast at $2.5 billion, significantly above the earlier $640 million target. This signals enhanced capital strength and supports future lending and fee-driven expansion.

The broad upward revision suggests a business gaining structural efficiency as it scales. Strong member growth, improved cost discipline and expanding fee-based revenue streams are helping SoFi transition into a more durable, higher-margin financial platform with clearer visibility into long-term profitability.

Peer View: Upstart and LendingClub

Upstart UPST serves as a useful comparison because Upstart remains focused on AI-driven lending but continues to face inconsistent loan volume tied to funding availability. This makes Upstart less predictable in converting growth into sustained profitability. The contrast highlights SoFi’s advantage in operating with a stronger balance sheet.

LendingClub LC is another relevant peer. LendingClub follows a marketplace-bank hybrid model and emphasizes credit discipline and deposit stability. However, LendingClub has not matched SoFi’s momentum in member expansion or fee-income scale. With a narrower product set and slower diversification, LendingClub reflects the challenges of achieving the same degree of operating leverage that SoFi is beginning to demonstrate.

SOFI’s Price Performance, Valuation and Estimates

The stock has gained 81% year to date against the industry’s 6.5% decline.

From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 49X, well above the industry’s 24X. It carries a Value Score of F.

The Zacks Consensus Estimate for SOFI’s 2025 earnings has been on the rise over the past 30 days.

SOFI stock 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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