SoFi Technologies (SOFI +1.41%) was founded in 2011 with the sole purpose of helping students pay for their college educations. Over the next 14 years, the business evolved into a more comprehensive financial services provider, with a digital-first model at its core. The brand is starting to become more widely recognized.
The company is trying to disrupt the financial services industry, and its progress in the past decade shows that it's on the right path. But where will SoFi stock be in 10 years?
Image source: Getty Images.
Impressive growth trajectory
Technology and the internet have had a profound impact on nearly every industry. However, the financial services sector was perhaps the last to be impacted in any meaningful way. That is changing, and SoFi is one of the businesses leading the charge.
SoFi operates a digital-only banking platform to serve customers. There are 11.7 million of these so-called members (as of June 30) using SoFi's offerings, ranging from checking/savings and brokerage accounts to insurance and lending solutions. The customer base has expanded rapidly, as there were only 3.5 million members as recently as the end of 2021. The business is obviously doing some things right, like providing a wonderful user experience for products and services in an industry that people don't expect it from.
The top line has grown at a brisk pace. Revenue jumped 43% year over year in Q2 (on a GAAP basis). And SoFi is consistently profitable. Executives forecast adjusted net income of $370 million this year, which would represent a phenomenal 63% increase from 2024.
Looking 10 years down the road to 2035, it's easy to believe that SoFi will be a much larger company, especially given its focus on innovation and product enhancements. It's well on its way to having a bigger customer base, with higher revenue and earnings.
Moving up the market
"We are uniquely positioned to capture the increasing opportunities on our way to becoming a top 10 financial institution," CEO Anthony Noto said on the Q2 2025 earnings call. This isn't the first time he has clearly stated his vision for SoFi. But from its current size, there is a long way to go to achieve this goal.
The business has been successful, as mentioned, by introducing new products and services to cater to the various needs of customers. However, in 10 years, it wouldn't be surprising to see SoFi moving upmarket, starting to focus on commercial clients. This is exactly what the largest financial services companies do. And if SoFi wants to be a top-10 bank, it might have to play the same game.
Of course, this opens up more money-making opportunities, whether that means commercial lending, capital markets activities, or advising corporate transactions. SoFi has carved out a successful niche in the banking industry. But if it does start to penetrate these new markets and offer different products and services, it will certainly face stiff competition.
There will also likely be a huge cost component. The business would not only need to build out the technological capabilities and the back-end support, but it would have to attract, train, and retain expensive staff to serve these clients. Nonetheless, it could be part of management's long-term plan.
NASDAQ: SOFI
Key Data Points
Upside for investors
SoFi shares have been on a fantastic run. They have soared 435% in the past three years (as of Sept. 24). That's a monster return that might force investors to think they've missed the boat. Shares trade at a forward price-to-earnings ratio of 52.9. That clearly doesn't look cheap.
But I believe there's still meaningful upside for new investors. It all depends on SoFi's ability to continue growing its earnings base. Based on the current trajectory the company is on, investors have every right to be bullish. The stock could be a winner over the next decade.
