Is SoFi's Scalable Profitability the Key to Its Stronger 2025 Outlook?

Scalable profitability has become the defining driver behind SoFi Technologies’ SOFI stronger 2025 outlook, as evidenced by upward revisions across all major operating metrics. The company now expects to add roughly 3.5 million new members, indicating 34% growth versus its earlier 30% projection. This upgrade reflects the compounding strength of SoFi’s ecosystem, where a larger member base fuels higher product penetration and rising operating leverage.

Revenue guidance has also moved meaningfully higher. Adjusted net revenue is now expected to reach $3.54 billion, implying 36% year-over-year growth and exceeding the prior forecast of $3.375 billion. Profitability assumptions improved even more decisively, with adjusted EBITDA guided to $1.035 billion, adjusted net income projected at $455 million and adjusted EPS expected at 37 cents. The most notable upgrade, however, is tangible book value growth, now forecast at $2.5 billion, well above the earlier $640 million estimate, highlighting stronger capital formation and increased capacity to support future lending and fee-driven expansion.

Taken together, these revisions point to a business that is gaining structural efficiency as it scales. Robust member growth, disciplined cost management, and expanding fee-based revenue streams are helping SoFi evolve into a more resilient, higher-margin financial platform with improved visibility into long-term profitability.

Peer Perspective: 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. It 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 64% year to date against the industry’s 13% decline.

From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 44X, well above the industry’s 22X. 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research