From its humble beginnings as a refinancing solution for student loan borrowers, SoFi Technologies (SOFI 1.05%) has become a budding player in the financial services industry. It now offers a wide variety of products and services to customers.
This digital bank stock has been extremely volatile. And in the past five years, shares are down 6% (as of March 17), even though the momentum has been positive in the past 36 months. The stock is currently trading 46% below its peak.
Where will SoFi be in five years?
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More members and revenue
SoFi has been on an incredible trajectory, as demonstrated by its fantastic growth. Adjusted net revenue soared from $621 million in 2020 to $3.6 billion in 2025. And during that time, the business expanded its customer base more than sevenfold, as it now has 13.7 million of these so-called members on the platform.
Key to SoFi's success has been an expanding set of offerings. The company provides many different financial services and products, from checking and savings accounts to brokerage accounts, personal loans, mortgages, and credit cards. The common theme, though, is that customers have an exceptional user experience. This helps SoFi stand out in a crowded industry that isn't known for being very tech-forward.
Investors should be optimistic about SoFi being a much bigger business in five years than it is today. The leadership team expects the top line to surge at a compound annual rate of "at least 30%" between 2025 and 2028. The company's intense focus on product innovation and doing right by its members will help propel it. And given the massive size of the total banking industry, there is clearly room for SoFi to capture a bigger share of the pie.
NASDAQ: SOFI
Key Data Points
SoFi is set up to be a winning investment
Strong revenue and customer gains have flipped the profitability script for SoFi. The bottom line is exploding.
In 2020, SoFi registered a net loss of $224 million. Last year, it posted adjusted net income of $481 million. Management sees adjusted diluted earnings per share rising at a yearly clip of 40% (at the midpoint) over the next three years. Strong gains should continue in the subsequent years, providing a powerful tailwind for investment gains.
Ever since reaching an all-time high in November 2025, SoFi shares have taken it on the chin, as the price has been cut by nearly half from that record. This presents investors with a great buying opportunity. The stock trades at a forward price-to-earnings ratio of 29.9. In light of how profits are trending, SoFi has what it takes to be a market-beating investment over the next five years.
