Is SoFi the Smartest Investment You Can Make Today?

To call SoFi's (NASDAQ: SOFI) growth impressive would be an understatement, and that's especially true as the company sustains its growth as it scales.

In the first quarter of 2025, SoFi reported about 10.9 million members, up 34% year over year and up by about 800,000 during the first three months of the year alone. These members have nearly 16 million products between them, and SoFi's revenue grew by 33% year-over-year in the quarter, an acceleration over its 2024 growth rate.

Not only does SoFi continue to grow at a rapid pace, but the company is profitable. It achieved its first full year of positive earnings per share in 2024 and is expecting earnings to nearly double in 2025 and for adjusted EBITDA to grow by 27% year over year. This is a rare combination of momentum and profitability, especially for a bank stock.

Image source: Getty Images.

Future growth catalysts

Of course, SoFi's membership growth has been impressive, and the company's current focus on building brand awareness should keep growth rates elevated for years to come. And I believe other impressive growth areas like bank deposits will continue to grow at a double-digit pace for the foreseeable future. But there are some newer or largely untapped growth areas in particular that could help take SoFi to the next level.

The lending platform is a big catalyst that is already fueling growth acceleration. SoFi has always been a lender, but it has recently focused on building out its loan platform business that uses SoFi's platform to originate loans on behalf of third parties, and refers customers to lending partners, both of which generate capital-light fee income for SoFi.

It's also worth noting that SoFi's loan platform is growing fast in a pretty bad environment for lending, with persistently high interest rates and economic uncertainty. As rates fall, which is widely expected over the next few years, it could be a big catalyst for loan growth.

Home loans could be an especially interesting part of the business to watch. They currently make up less than 10% of SoFi's loan business, but it is by far the biggest lending market in the United States and SoFi's home loan volume in the first quarter has grown by nearly 500% over the past two years. With tons of pent-up demand for both purchase mortgages and refinancing, as Americans are sitting on about $35 trillion in home equity, this could grow exponentially in the coming years.

Cross-selling products to existing members is another big opportunity. Things like getting a checking account customer to sign up for a credit card or take out a loan with SoFi. The average SoFi customer has less than 1.5 products with the bank, and with the largest U.S. banks, the average is typically four or more. As SoFi grows, the larger its natural marketing funnel becomes, and this could be a big growth driver.

Still in the early stages

SoFi is still a relatively small bank today. With about $27 billion in customer deposits today and about $38 billion in total assets, SoFi is currently the 60th largest U.S. bank, according to the Federal Reserve. It has stated that it aims to be a top 10 financial institution, which would require the bank to roughly 10X in size to achieve. Just to put things into perspective with a familiar name, Capital One is the ninth largest bank and has $491 billion in assets.

If SoFi could achieve that, while maintaining an above-average margin and growing some of the asset-light income streams it has (like the third-party loan platform), SoFi could be a massive home run for investors who buy at the current level.

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Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.