SoFi (SOFI -0.81%) has been a strong performer for investors, with shares up by 135% over the past year, but the stock is still a long way from its all-time high.
SoFi's all-time high came in 2021, shortly after it went public through a special purpose acquisition company, or SPAC. Shares peaked at about $27, but it's fair to say that this was mainly due to the speculative bubble that was going on, especially in SPACs, at the time. By virtually every metric, SoFi is a far stronger business today than it was back then.
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Since 2021, SoFi's membership base has more than tripled, the company's banking deposit base went from zero to more than $27 billion, and SoFi went from an adjusted net loss of $484 million in 2021 to an expected profit of at least $320 million in 2025.
However, in the post-bubble world, SoFi's stock price reached a more recent high of $18.42 per share in January 2025, which is less than 30% above the current share price. Let's take a closer look at the momentum in SoFi's business, the catalysts that could take it to the next level, and whether SoFi could reach a new high later this year.
SoFi's strong momentum
As mentioned, SoFi has grown dramatically since becoming a public company, but it isn't exactly running out of gas just yet. In the first quarter of 2025, SoFi added more than 800,000 new members, its most in a single quarter ever. The company's members have 15.9 million products, 35% more than a year ago and a sequential acceleration in growth rate compared with the prior quarter.
Not only is top-line growth impressive, but SoFi just finished its first full year of profitability, and on a GAAP basis, not adjusted. Margins are expected to grow rapidly for the next few years, with 2025's EPS expected to be about 83% higher year over year, according to the company's own guidance, which it has a strong history of beating.
What to watch for the rest of 2025
To be sure, there's a lot of growth potential throughout SoFi's business. For example, management has said that its goal is for SoFi to be a "top 10" financial institution, and it would need to more than 10X the size of its banking business to earn a spot on the list. But there are some catalysts that could be especially big growth drivers over the next few years.
One example is the company's lending platform. Of course, SoFi began its life as a lender, but it has just recently started to branch out in ways that don't involve it making loans directly to borrowers. SoFi has been rapidly scaling its loan platform business (LPB), which originates loans on behalf of third-party banks or refers customers to other lenders if they don't meet SoFi's criteria. This is a rapidly growing capital-light stream of fee income.
There's a huge opportunity to grow the loan platform, especially when we look beyond the bank's traditional core lending products of personal loans and student loans. Specifically, SoFi's home loan business, which has more than quintupled in size since 2023 (but still remains small), is worth watching. There's a ton of pent-up demand for both purchase loans and cash-out refinancing, with Americans currently sitting on a record high $35 trillion in home equity.
Could SoFi reach a new all-time high before the end of 2025?
First, while I think it can (and will) get there eventually, I don't think there's a high probability of SoFi surpassing its 2021 peak by the end of this year. That level was fueled by a speculative bubble in blank-check companies, and it was at a time when interest rates were at near-zero levels, which was a generally strong catalyst for stock valuations. SoFi would need to rise by about 90% to overtake its all-time high, and that would be a stretch to happen over the next six months or so.
On the other hand, it wouldn't take that much to catapult SoFi past its $18.42 peak earlier this year, which would imply about 27% upside. In a nutshell, if SoFi posts strong results in its next two quarterly reports, tariff uncertainty starts to fade, and consumer confidence rises in the latter half of the year, I believe there's a good chance we'll see a new 2025 high. If the Federal Reserve ends up cutting interest rates at least a couple of times, it would be helpful as well.
Having said that, SoFi is a business with tremendous momentum and massive growth potential. Regardless of what happens for the rest of 2025, SoFi's future looks bright, and it's one of the largest financial sector holdings in my own stock portfolio.
