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

We came across a bullish thesis on SoFi Technologies, Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc.'s share was trading at $24.60 as of January 28th. SOFI’s trailing and forward P/E were 45.46 and 43.10 respectively according to Yahoo Finance.

SoFi Technologies (SOFI) has transformed from a student-loan specialist into a leading digital finance platform, offering lending, banking, fintech, and technology services through its Galileo platform. The company has achieved rapid scale, growing from ~$250 million in revenue and 650,000 members in 2018 to a 2025 run-rate of $3.5 billion and 12.6 million members across 18.6 million products, while delivering eight consecutive quarters of GAAP profitability.

SoFi’s growth has been remarkably efficient, with a combined growth-plus-EBITDA margin exceeding the “Rule of 40” for 16 straight quarters, highlighting its ability to balance scale with profitability. Financial services now account for 55% of revenue, led by banking and fee-based income, while lending has declined to 45%, reflecting a diversified business model with multiple revenue streams. Q3 2025 results underscore this momentum: GAAP net revenue rose 38% YOY to $961.6 million, with financial services revenue up 76% and fee income doubling to $216 million, supported by record loan originations.

Adjusted EBITDA of $276.9 million (29% margin) and strong credit metrics, including low charge-offs and flat delinquency rates, reinforce the company’s operational strength. Member growth remains robust, with 905,000 new members and 1.4 million new products in Q3, while monetization per account rises steadily.

While the recent $1.5 billion equity offering triggered short-term volatility, it strengthens SoFi’s capital base to fund continued growth across its expanding product ecosystem. Given its scale, diversified revenue mix, strong margins, and continued user expansion, SoFi presents a compelling bullish investment case, with significant upside potential as it continues to capitalize on its multi-product platform and strong profitability trajectory.

Previously, we covered a bullish thesis on SoFi Technologies, Inc. (SOFI) by Oliver | MMMT Wealth in May 2025, which highlighted growing membership, strong fee-based revenue, and improving profitability. SOFI’s stock price has appreciated by approximately 91.29% since our coverage due to continued top-line growth. LongYield shares a similar bullish view but emphasizes SoFi’s scale, diversification into banking and fintech, and consistent GAAP profitability.

SoFi Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held SOFI at the end of the third quarter which was 47 in the previous quarter. While we acknowledge the risk and potential of SOFI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOFI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.