SoFi Technologies, Inc.

NASDAQ Global Select
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Somewhat Bullish +45

Why SoFi Stock Is a Good Buy Now

Company update Customer growth AI-generated analysis

📉 SOFI stock has underperformed significantly this year, falling approximately 34.5% year-to-date as the market reacts to increased reliance on lending revenue.

💰 SoFi reported record adjusted net revenue of $1.2 billion in Q2, up 40% year-over-year, though lending contributed the majority at $712 million versus $551 million from non-lending operations.

📊 Non-lending operations currently account for about 46% of total adjusted net revenue, down from 57% in Q4 2025, reflecting a strategic shift toward retaining loans on the balance sheet.

👥 Membership growth remains robust with 1.1 million new members added in Q2, bringing the total member base to 15.8 million, a 35% year-over-year increase.

🛠️ Product adoption is accelerating as total products grew by 2.2 million to 24.4 million, with existing customers driving 51% of new product openings in the quarter.

💵 Fee-based revenue reached $472 million in Q2, representing 39% of total revenue and increasing 22% sequentially due to growth in origination fees and interchange income.

🚀 The Loan Platform Business (LPB) is a key growth catalyst designed to scale origination capabilities while limiting direct credit risk exposure compared to retained loans.

🎯 Management expects non-lending businesses to eventually contribute more than half of total revenue, a transition that could spur a recovery in the share price.

📉 Wall Street analysts maintain a 'Hold' consensus rating due to concerns over increasing lending exposure and credit risk associated with retained loans.

💡 The recent significant pullback in SOFI's share price is viewed by some as an attractive entry point given the company's strong membership growth and expanding deposit base.

Bullish Signals
  • SoFi reported record adjusted net revenue of $1.2 billion in Q2, representing a 40% year-over-year increase driven by overall business expansion.
  • The company added approximately 1.1 million members in the second quarter, bringing total membership to 15.8 million, a 35% year-over-year increase.
  • Total products increased by 2.2 million to reach 24.4 million in Q2, reflecting strong adoption among existing customers who now account for 51% of new product openings.
  • Fee-based revenue reached $472 million in the second quarter, representing 39% of total revenue and growing 22% sequentially from the prior quarter.
  • The Loan Platform Business (LPB) is scaling effectively to generate fee income while limiting direct credit risk exposure compared to retained loans.
  • SoFi continues to expand its deposit base, providing a low-cost funding source that supports long-term growth prospects and margin expansion.
  • Management indicates a strategic path toward having non-lending businesses contribute more than half of total revenue, which could drive future share price recovery.
Risk Factors
  • The increasing contribution of the lending business to overall revenue has led to market concerns about SoFi's reliance on interest-sensitive segments.
  • Retaining more originated loans on its balance sheet exposes SoFi directly to credit risk and potential defaults, which can impact earnings quality.
  • The higher contribution from lending indicates that non-lending operations represented only 46% of total adjusted net revenue in Q2, down from 57% in Q4 2025.
  • Wall Street analysts maintain a 'Hold' consensus rating on SOFI stock, reflecting ongoing concerns about the company's increasing exposure to its lending business.
  • The strategic shift toward retaining loans requires greater capital allocation, which may constrain liquidity or increase regulatory capital requirements.
Full Analysis
SoFi Technologies (SOFI) stock has underperformed significantly in the current year, dropping approximately 34.5% year-to-date and trading within a narrow range. A primary driver of this underperformance is the increasing reliance on its lending business for revenue growth. In the second quarter, SoFi reported record adjusted net revenue of $1.2 billion, a 40% year-over-year increase, but the majority of this growth originated from the lending segment, which generated $712 million compared to $551 million from combined Financial Services and Technology Platform businesses. The company's non-lending operations currently represent about 46% of total adjusted net revenue, down from 57% in Q4 2025. This shift indicates that SoFi is retaining more originated loans on its balance sheet to boost interest income, a strategy that supports revenue growth but simultaneously increases capital allocation requirements and exposes the company to greater credit risk and potential defaults. Market caution regarding these risks has contributed to the stock's decline, though management views the current share price as reflecting these concerns. Despite the lending-heavy mix, SoFi continues to demonstrate strong ecosystem growth with a member base expansion of 1.1 million in the second quarter, bringing total membership to 15.8 million. Product adoption is also accelerating, with total products increasing by 2.2 million to reach 24.4 million. Fee-based revenue reached $472 million in the quarter, representing 39% of total revenue and growing 22% sequentially, driven by origination fees, interchange revenue, and brokerage income from its Loan Platform Business (LPB).