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

We came across a bullish thesis on SoFi Technologies, Inc. on Archive Invest’s Substack by Felix. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc.'s share was trading at $29.72 as of November 28th. SOFI’s trailing and forward P/E were 53.07 and 50.00 respectively according to Yahoo Finance.

SoFi Technologies, Inc. provides various financial services in the United States, Latin America, Canada, and Hong Kong. SoFi’s Q3 2025 results reveal a business increasingly transitioning from rapid growth to durable profitability. The company serves 12.6 million members with 18.5 million products, but the most important story lies beneath the headline numbers. SoFi’s Financial Services Productivity Loop (FSPL) creates a self-reinforcing cycle, where strong brand awareness attracts digitally-oriented members, superior product value builds trust and drives cross-buy behavior, and higher lifetime values fund continuous innovation.

This loop underpins SoFi’s competitive advantage and sustainable growth across its Lending, Financial Services, and Technology Platform segments. Lending remains the largest revenue driver, generating $481 million in Q3, up 23% year over year, with a 54% contribution margin. Personal loan originations reached $7.5 billion, net charge-offs fell to 2.6%, and a growing deposit base of $33 billion allows the company to fund loans internally, reducing reliance on expensive warehouse lines. The Financial Services segment, nearly matching Lending revenue at $420 million, grew 76% year over year with a 54% margin, fueled by deposits, card usage, and referrals, demonstrating the strength of cross-product engagement.

The Technology Platform segment, while smaller at $115 million revenue, delivers high-margin B2B infrastructure solutions for fintechs and enterprises, providing long-term optionality often overlooked by the market. With $950 million in adjusted net revenue and $277 million in adjusted EBITDA, SoFi is evolving into a full-stack digital bank with diversified, high-quality revenue streams. The combination of a disciplined lending model, rapidly growing financial services, and scalable technology infrastructure positions SoFi for sustainable profitability and long-term value creation, making it an attractive investment beyond its headline growth metrics.

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, and improving profitability. The company's stock price has appreciated approximately by 131.10% since our coverage. This is because the thesis played out. The thesis still stands as SOFI’s scalable fintech infrastructure supports long-term value creation. Felix shares a similar but emphasizes the Q3 2025 results and the Financial Services Productivity Loop driving sustainable growth.

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.