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

We came across a bullish thesis on SoFi Technologies, Inc. (SOFI) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc. (SOFI)'s share was trading at $12.86 as of May 5^th. SOFI’s trailing and forward P/E were 29.91 and 40.16 respectively according to Yahoo Finance.

SoFi Technologies (SOFI) continues to perplex short-term traders with its muted stock reactions post-earnings despite consistent top-line and bottom-line beats. However, long-term investors remain confident in the company’s direction. With 16 consecutive revenue beats and a solid history of surpassing EPS expectations, the fundamentals have continued to improve quarter after quarter. While the stock has failed to reflect this momentum—most recently declining 7% on macroeconomic concerns—the company’s Q1 2025 results paint a clear picture of a maturing and increasingly profitable business. SOFI’s revenue grew 33% YoY to $771 million, its strongest pace in five quarters, driven by expanding membership (up 34% YoY to 10.9 million) and fee-based revenue of $315 million, which is annualizing at $1.3 billion and reflects a more stable, low-risk component of its growth engine. Profitability metrics further underscore the progress: adjusted EBITDA rose 46% YoY to $210 million (27% margin), while net income hit $71 million at a 9% margin, with EPS at $0.06.

Importantly, SOFI’s financial services division delivered breakout results, doubling revenue YoY to $303 million, thanks to increasing adoption of its high-yield APY offerings, P2P payment tools, and its integration with Zelle. This validates management's strategy of tripling financial product offerings over the past three years. Though SoFi Invest trails Robinhood (HOOD) in market positioning, especially in crypto and options trading, it may still carve out a niche if it retains its growing member base and bolsters its product suite. On the technology platform side, progress remains underwhelming with muted commentary and modest growth, but its full value may not be visible until 2026. Once investors acknowledge the combined strength of SOFI’s scalable fintech infrastructure and expanding financial services, the current valuation—around 4.1x forward sales—may be viewed as highly conservative.

Guidance for FY25 calls for $3.235–$3.310 billion in revenue, but based on 6% QoQ growth projections, SOFI is likely to surpass the high end. Even conservative modeling points to a revenue figure of $3.35 billion in 2025, setting the stage for $3.95 billion in 2026. Applying a more appropriate 6.75x sales multiple—similar to where the stock traded earlier in 2025—would imply a $25 stock, nearly double the current price. Meanwhile, SOFI’s forecasted FY25 EBITDA of $895 million represents 34% YoY growth, placing it at 15.4x EBITDA—materially cheaper than HOOD, which trades at over 21x. The stock offers a compelling setup with strong upside and limited downside, making it one of the clearest 2x opportunities in the market today.

SoFi Technologies, Inc. (SOFI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held SOFI at the end of the fourth quarter which was 31 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 timeframe. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.