TLDR
- SoFi Technologies (NASDAQ: SOFI) stock has surged 235% in the past year, trading near all-time highs
- Q2 revenue jumped 43% to $855 million, with customer base growing from 4.3 million to 11.7 million over three years
- Company turned profitable with adjusted EPS of $0.08 in Q2, up 700% year-over-year
- Management forecasts 63% increase in adjusted net income for 2025 to $370 million
- SoFi expanding into crypto trading and Bitcoin-based international transfers through Lightspark partnership
SoFi Technologies stock has captured investor attention with a remarkable 235% gain over the past year. The digital bank now trades near all-time highs as financial results continue to impress.
The company reported Q2 revenue of $855 million, representing a 43% increase from the previous year. This growth accelerated from the pace seen in the first quarter.
Revenue has grown dramatically over a three-year period. The $855 million quarterly figure represents a 136% increase compared to the same period three years ago.
SoFi’s customer base expansion tells a compelling growth story. The company now serves 11.7 million customers, up from 4.3 million exactly three years ago.
This customer growth reflects the popularity of SoFi’s digital-first approach. The company offers checking and savings accounts, brokerage services, insurance, and various loan products.
Profitability Transformation Drives Market Confidence
The most striking change has been SoFi’s shift to consistent profitability. Non-GAAP diluted earnings per share reached $0.08 in Q2, up 700% year-over-year.
Management raised guidance based on strong momentum. They now forecast adjusted net income of $370 million for 2025, which would represent a 63% increase from the prior year.
After years of losses, SoFi has proven its business model can scale profitably. The company operates without physical branches, eliminating major cost burdens that traditional banks face.
Deposits have grown to nearly $30 billion, up 28% year-over-year. During the March 2023 regional banking crisis, SoFi differentiated itself by offering FDIC insurance up to $2 million.
Crypto Push and Technology Partnerships
SoFi is expanding into cryptocurrency trading as regulatory conditions improve. The platform will reintroduce crypto trading features for customers.
The company announced a partnership with Lightspark to enable international money transfers. This system uses Bitcoin’s lightning network for faster and cheaper cross-border transactions.
CEO Anthony Noto has set an ambitious goal for SoFi to become a “top 10 financial institution.” Currently, SoFi’s $41 billion in assets compares to Bank of New York Mellon’s $398 billion asset base.
The company’s cross-selling strategy aims to increase revenue per customer over time. A college student might start with a loan but later add checking accounts, credit cards, and mortgages.
Management expects earnings per share to grow at a compound yearly rate of 20% to 25% after 2026. Revenue is projected to grow at a compound annual rate of 24.6% between 2024 and 2027.
The stock currently trades at a forward price-to-earnings ratio of 72 as of recent trading. This valuation reflects high expectations for continued growth and profitability improvements.
SoFi will reintroduce crypto trading on its platform while expanding its partnership with Lightspark for Bitcoin-based international money transfers.
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