Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 16 Mar, 26 | SOFI | Buy | USD 17.73 | USD 18.7 | USD 19.7 | 10 days | Closed |
11.45%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.
Adjusted EBITDA Growth: FY25 adjusted EBITDA rose to USD 1.05 billion compared with USD 666.5 million in FY24
Revenue Expansion: FY25 total net revenue increased to USD 3.61 billion in FY25 from USD 2.67 billion in FY24
Net Interest Margin Compression: Net interest margin declined to 5.72% in Q4 FY25 from 5.91% in Q4 FY24
GAAP Net Income Decline: Net income decreased to USD 481.3 million in FY25 compared with USD 498.7 million in FY24
The company faces risks related to credit quality deterioration, regulatory changes affecting fintech banking operations, competitive pressures in digital financial services, macroeconomic volatility impacting lending demand, and technology platform client concentration
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 17.73 | 15.7 | 18.7 | 19.7 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Expansion and Business Scale: SoFi Technologies delivered strong financial growth in FY25, driven by expanding member adoption, product penetration, and diversified revenue streams. The company reported GAAP total net revenue of USD 3.61 billion in FY25 compared with USD 2.67 billion in FY24, reflecting 35% year-over-year growth as the platform continued to scale its digital financial ecosystem. The strong performance was supported by a combination of lending activity, technology platform expansion, and financial services monetization. Adjusted net revenue also grew significantly, reaching USD 3.59 billion in FY25 compared with USD 2.61 billion in FY24, highlighting the company’s ability to sustain high growth while improving operational leverage.
Profitability Trends and Earnings Performance: Despite significant revenue expansion, GAAP net income showed modest contraction during FY25 as the company continued investing in innovation and growth initiatives. Net income declined slightly to USD 481.3 million in FY25 from USD 498.7 million in FY24, reflecting ongoing reinvestment across marketing, technology infrastructure, and product innovation. However, adjusted profitability metrics showed strong improvement. Adjusted net income increased to USD 481.3 million in FY25 from USD 227.2 million in FY24, while adjusted EBITDA rose to USD 1.05 billion compared with USD 666.5 million in FY24, demonstrating enhanced operating leverage and scalability across the platform.
Robust Member and Product Growth: Operationally, SoFi recorded exceptional expansion in its user base and product ecosystem during FY25. The company’s total members increased 35% year-over-year to 13.7 million compared with 10.1 million in FY24, reflecting strong brand awareness and digital adoption. Similarly, product adoption surged, with total products rising 37% year-over-year to 20.2 million from 14.7 million in FY24. The expansion highlights the success of the company’s cross-selling strategy, with approximately 40% of new products opened by existing members, demonstrating increasing engagement across its integrated financial services platform.
Lending Segment Growth and Credit Performance: The lending business remained a key revenue contributor, supported by strong loan originations and expanding credit demand. During FY25, total loan originations reached approximately USD 36 billion, supported by strong personal loan refinancing demand and student loan activity.
In Q4 FY25 alone, the company achieved record quarterly originations of USD 10.5 billion, driven primarily by USD 7.5 billion in personal loans, USD 1.9 billion in student loans, and over USD 1.1 billion in home loans.
Growth in Fee-Based and Capital-Light Revenue Streams: SoFi continued its strategic transition toward diversified and capital-light revenue sources during FY25. Fee-based revenue reached USD 443 million in Q4 FY25, representing a 53% increase year-over-year, driven by the Loan Platform Business, referral fees, brokerage fees, and interchange revenue. This shift helped expand the Financial Services and Technology Platform segments, which together generated USD 579 million in Q4 net revenue, representing a 61% increase compared with the prior year period.
Strategic Innovation and Product Expansion: During FY25, SoFi continued to enhance its digital ecosystem through product innovation and technology integration. Key developments included the launch of SoFiUSD stablecoin, crypto trading capabilities, blockchain-enabled international remittances, and the SoFi Smart Card aimed at improving financial accessibility and engagement.
Balance Sheet Strength and Capital Position: SoFi strengthened its balance sheet during FY25 through capital raising and improved deposit growth. Equity increased to USD 10.5 billion, while tangible book value reached approximately USD 8.9 billion, reflecting capital inflows and retained earnings growth. The company also expanded deposits significantly, reaching USD 37.5 billion, which lowered funding costs and improved net interest margins relative to warehouse funding facilities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to SoFi Technologies, Inc (NASDAQ: SOFI) at the closing market price of USD 17.73, as on Mar 16,2026 at 9:35 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Credit Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | ||
|---|---|---|---|---|---|---|---|---|
| SOFI SoFi Technologies Inc. |
0.49 2.81% | 17.91 | - | 91.74 | 3.75 | 1.48 | ||
| V Visa Inc. Class A |
-3.14 0.95% | 327.24 | 31.25 | 25.97 | 16.18 | 13.64 | 16.19 | 23.37 |
| MA Mastercard Inc |
-3.2 0.65% | 489.79 | 37.04 | 29.50 | 16.14 | 62.35 | 16.47 | 27.24 |
| AXP American Express Company |
-2.54 0.75% | 338.00 | 21.46 | 18.83 | 3.38 | 6.76 | 3.93 | |
| COF Capital One Financial Corporation |
0.66 0.33% | 201.53 | 61.36 | 10.04 | 3.84 | 1.12 | 3.02 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 16, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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