Despite shares falling 13% so far in 2026 (as of Jan. 30), SoFi Technologies (SOFI 3.16%) has been on its way up. They have soared 284% just in the past three years, as the market continues to digest very favorable financial results.
With the fintech stock currently trading below $25, should you buy SoFi? It's easy to be bullish, but investors shouldn't ignore a critical metric.
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SoFi had a strong showing in 2025
Last year, investors had to deal with a curveball with major changes coming to trade policy. Additionally, consumer confidence just fell to a near 12-year low. And there is no shortage of ongoing geopolitical tension.
Despite a dynamic backdrop, SoFi continued to showcase impressive fundamental momentum. The burgeoning digital bank reported 38% year-over-year adjusted revenue growth to $3.6 billion in 2025, after reporting its first ever $1 billion quarter in Q4. It now has 13.7 million customers, adding 1 million just in the last three months.
The cross-selling is working. SoFi mentioned that 40% of new products were opened by existing customers. Loan originations are soaring. The business is innovating in the crypto and blockchain space, enabling trading and launching its own stablecoin. And credit metrics remain solid.
It has also been remarkable to see SoFi turn the page financially. What was once a consistently unprofitable company has morphed into a money-making machine. Adjusted net income totaled $173.5 million in Q4 2025, up 184% compared to the year-ago period.
The leadership team doesn't expect the business to take its foot off the gas. Guidance calls for 30% revenue growth in 2026. Diluted earnings per share (EPS) are expected to jump 54% this year.
NASDAQ: SOFI
Key Data Points
Market expectations remain elevated
Valuations of companies that are experiencing strong growth can often look expensive, particularly as management teams optimize for revenue gains at the expense of positive earnings. Consequently, investors that only look at the situation at the surface level might not get the full picture. SoFi shares trade at a forward price-to-earnings ratio of 41.3. This can turn certain market participants away.
It's always important to think about valuation before buying a stock. However, in this instance, I believe it makes sense to lean on the bullish side of the debate. That confidence stems from SoFi's incredible earnings trajectory, as noted. Sell-side analysts expect the good times to roll, with the consensus forecast calling for EPS to balloon, agreeing with what management thinks.
"Our one-stop shop is scaling exactly as intended and delivering a winning combination of growth and returns," CEO Anthony Noto said about the latest financial results. Assuming SoFi's bottom-line performance lives up to expectations, it's worth taking the time to consider buying the stock while it's below $25.
