SoFi Technologies (SOFI 7.99%) continues to dazzle investors with its incredible performance and vast opportunities. The fintech stock is up about 72% so far in 2025, but it could go much, much higher. If you have $1,000 to invest today and are looking for a fantastic growth stock, consider SoFi. Here's why.
Climbing to the top
SoFi is a fairly young bank that's all digital. It pours its investments into technology and marketing instead of costly real estate for branch offices, and as it scales, that's paying off with high sales and cost efficiency.
The company originated as a loan co-op for college students, and lending remains its core segment. However, management envisioned the bigger picture early on and has expanded the platform to include a large suite of banking services. It made the savvy decision to get a bank charter with its acquisition of Golden Pacific Bancorp a few years ago, opening it up to a larger assortment of products. At that time, the banking charter meant that it had to shut its cryptocurrency trading operation, but new regulations let it revive that service, and SoFi is launching many new solutions that cover the gamut of traditional products as well as innovative technology-driven services.
Image source: SoFi Technologies.
That dual focus, which places it at the intersection of a trustworthy, reliable bank and a neobank that puts innovation first, is winning it accolades from customers, who are signing up for accounts in droves. In fact, even as it gets bigger, it's gaining record numbers of signups. In the 2025 second quarter, it added 850,000 new accounts, a 34% increase year over year.
Part of its strategy is cross-selling, which is happening over time. Its core customer is still a student or professional, often in their first job and getting their feet wet in personal financial management. However, this is an educated, upwardly mobile crowd whose financial needs are growing. Product additions are outpacing new member acquisitions, with 1.3 million new products in Q2; 35% of new products were opened by existing account holders.
Much of the growth is happening in financial services, which are all of the individual non-lending products. SoFi also has a business-to-business fintech infrastructure segment that it calls Tech Platform. Financial services continue to drive the company's results, accounting for the biggest increase in revenue --106%. These are mostly fee-based and low cost, resulting in strong margins and padding the bottom line. Financial services contribution profit increased 241% in Q2 to $188 million, getting close to profit from lending.
The lending business, which was under pressure with high interest rates, is rebounding as well, adding to the positive picture. All of the lending categories are growing, with personal loan origination up 66%, student loans up 35%, and home loans up 92%.
Total adjusted net revenue rose 44% year over year in Q2, and earnings per share (EPS) rose from $0.01 last year to $0.08 this year.
Chief Executive Officer Anthony Noto envisions SoFi becoming one of the U.S.'s top-10 financial institutions, and it continues to leapfrog over the competition.
Risk vs. reward
Considering the enthusiasm around SoFi and its recent stock climb, SoFi stock isn't cheap today. It trades at 47 times forward earnings and 4.5 times book value.
There's also more risk than the typical, established bank because it's still young and working on improving its credit metrics. Like other banks, it's exposed to changes in interest rates, but it doesn't have years of experience under its belt as it reacts to changing events.
However, it has come through these past few years in excellent shape, giving it more strength to be ready for future economic challenges.
SoFi stock isn't for the most risk-averse investor, but if you're looking for an excellent growth stock, SoFi is a great choice.
