With companies already reporting financial results for the final quarter of 2025, investors can now pay attention to any projections made by management teams. For this one fintech enterprise, it's very easy to be bullish as we look toward the rest of 2026.
This superstar business expects its profit to skyrocket 72% this year. Here's what investors need to know.
Image source: Getty Images.
Going from the red to the black
The company to focus on right now is SoFi Technologies (SOFI 4.16%). The digital banking powerhouse registered adjusted net income of $481 million last year. Executives believe that this metric will rise to $825 million in 2026.
This continues an impressive run of the business evolving from a money-losing entity to a highly lucrative one. In 2021, SoFi posted an adjusted loss of $484 million, which was certainly troubling at the time. Critics could have easily called out the lack of profits, doubting if the company would ever get to the black.
Chief Executive Officer Anthony Noto thinks the business is in a wonderful position. "This combination of scale, innovation, and profitability positions SoFi to drive durable, compounding growth, and deliver superior financial returns in 2026 and for years to come," he said in the fourth-quarter 2025 earnings release.
NASDAQ: SOFI
Key Data Points
Strength across the board
SoFi is a financial services provider. It doesn't operate any physical bank branches, however. This helps it run lean while scaling. Tech and product development and sales and marketing are two major expense categories. And between 2020 and 2025, they have declined as a percentage of revenue from 84% to 48%, indicating operating leverage.
It helps that the business is growing quickly. SoFi's pace of customer additions has been accelerating. It added more than 1 million customers in Q4, bringing the total to almost 13.7 million. Revenue increased by 35% in 2025.
Personal, student, and home loan originations are soaring. There's clearly a lot of demand from borrowers, which showcases a more optimistic outlook toward the economy among SoFi's target customer group.
An expanding net interest margin is a big part of the profit story. This is supported by nearly $30 billion in interest-bearing deposits, up 32% from 2024. These provide a sticky and relatively low-cost source of funding that the bank can use to make higher-yielding loans.
Fee-based revenue, which isn't dependent on interest income, jumped 53% year over year. SoFi is building diversified revenue streams.
It's rational for investors to believe the growth will slow over time, particularly as SoFi further captures its market opportunity. But Wall Street is bullish, with the consensus outlook calling for earnings per share to rise 36% in 2027 and 25% in 2028.
The trajectory of SoFi's bottom line makes paying a forward price-to-earnings ratio of 35 look like a smart move.
