SoFi (SOFI -0.81%) is scheduled to report its second-quarter earnings on July 29. To say that the fintech innovator has been a strong performer recently would be an understatement. In fact, over the past year, SoFi stock has roughly tripled.
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Even so, this could be just the beginning. SoFi has made some exciting announcements recently, and there are some big catalysts that could result in rapid earnings growth over the next few years. With that in mind, here's what I'll be watching closely when SoFi reports earnings, and why I think the stock could still have plenty of upside potential from here.
SoFi could report its best growth yet
In the first quarter of 2025, SoFi added more than 800,000 new members to its platform, the highest total ever in a single quarter. And that was during a period that has a very high level of economic uncertainty. It wouldn't be surprising to see even more additions took place in the second quarter.
There are a few other things to keep an eye on in the second quarter. For example, now that there's a little more clarity on the Trump administration's student loan policies, we could see SoFi's private student loan origination volume continue to grow. In the first quarter, SoFi originated nearly $1.2 billion in student loans, a 58% year-over-year growth rate.
The loan platform business, which originates personal loans on behalf of third party lenders, is also important to watch. It is ramping up quickly, accounting for $1.56 billion in loan volume in the first quarter, and is a fast-growing source of low-risk fee income.
In its first quarter report, SoFi guided for just $0.05 to $0.06 in EPS for the second quarter, and given the recent growth of the high-margin loan platform business, it wouldn't be a surprise to me if the company exceeds that.
Lots of future catalysts
Looking ahead, there's a lot to like about SoFi's future potential. As one example, we're seeing a clear ramp-up in IPO activity this year, and giving everyday investors access to IPOs is a key differentiator of SoFi's investment platform. The company has also done an excellent job of adding exciting private equity investment opportunities as well, and these should be a nice driver of fee income.
The recent announcement that cryptocurrency trading will be returning to SoFi's platform is another major development to watch. SoFi got rid of cryptocurrency due to regulatory uncertainty shortly after obtaining its bank charter, but new guidance is allowing SoFi to bring it back.
There are plenty of other opportunities. SoFi's small but fast-growing home loan business could be a key area to watch. Loan volume grew 54% year-over-year in the first quarter despite a slow mortgage market overall. With lots of pent-up demand for housing and current homeowners sitting on an all-time high of $35 trillion in home equity, there is a lot of potential.
A future "top 10" bank?
By most valuation metrics traditionally used to evaluate bank stocks, such as the price-to-book ratio, SoFi is not a cheap stock. Then again, most banks aren't growing revenue at a 33% annualized rate while simultaneously launching high-potential products.
SoFi's management has clearly stated that the future goal is to become a top 10 financial institution, which would roughly mean that SoFi's total assets would need to grow tenfold from here. With accelerating growth momentum and an expanding ecosystem of products and services, combined with impressive progress toward brand awareness, it could certainly get there eventually. And to put it mildly, a top-10 bank with an online bank's profit margins would likely be a big winner for long-term investors. Of course, there's a lot that would need to go right before SoFi gets there, but the banking disruptor's momentum is undeniable.
