Based on the latest earnings report for SoFi Technologies (SOFI +1.25%), the digital-first financial services company continues to grow at an impressive clip. However, since late 2025, investors have become far less enthusiastic about SoFi and its future growth potential, at least as reflected in this stock's 50% drop from its 52-week high.
Factors like the company's decision not to raise guidance have contributed to its steep decline. However, don't forget that SoFi also houses a financial technology business.
At scale, this business could create significant value for SoFi investors. Down the road, management may be able to unlock this value by splitting this business from its core lending and financial services operations.
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SoFi has been quietly building a fintech powerhouse
In recent years, SoFi's focus has been on its pivot toward becoming a "financial supermarket" for affluent, upwardly mobile millennials and Gen Z. However, a few years back, before this shift, SoFi spent heavily to bulk up its presence in the fintech space.
NASDAQ: SOFI
Key Data Points
First, in 2020, SoFi acquired Galileo, a provider of back-end technology for payments and other financial transactions, for $1.2 billion. Then, in 2022, the company acquired Technisys, another provider of back-end technology for financial services companies, for $1.1 billion.
Since making these acquisitions, folding them into the aforementioned technology platform segment, SoFi's fintech business has steadily scaled. Since 2022, this segment's revenue has grown by 42%, from $315.1 million to $450.2 million. During this time, contribution profit has nearly doubled, growing from $76.5 million to $144.4 million.
Admittedly, the technology platform segment experienced negative growth last quarter. During the first quarter of 2026, revenue and contribution profit fell 27% and 61%, respectively. However, the near-term hiccup surrounding this decline belies the opportunity still at hand with this segment.
A significant value creation opportunity
As noted in the Q1 press release, last quarter's big decline for the technology platform segment was due to a one-time item: the loss of a large client. As also noted, SoFi is in the midst of revamping this segment, unifying its Galileo and Technisys businesses under the SoFi Technology Solutions brand.
Moreover, despite losing a major customer last year, SoFi's fintech platform continues to win new clients. Last year, CEO Anthony Noto noted the platform had gained 10 new clients ahead of 2026, with the company expanding into new verticals, such as payment cards affiliated with travel and hospitality companies.
Don't expect it to happen overnight, but if this segment gets back on track with steady double-digit annual growth, SoFi Technology Solutions could still be on its way to becoming a billion-dollar business. Beyond the potential impact on future profitability, scaling up this business could create significant value.
That's because the market values bank stocks and fintech stocks differently. For example, while a well-run, established bank like JPMorgan Chase may trade for 14 times earnings, payment technology pure plays like Adyen trade at forward multiples in the mid-20s or higher. To unlock this value, SoFi could spin off this segment. Although this long-term catalyst is still in its early stages, keep this in mind when deciding whether to buy, sell, or hold SoFi shares following the recent pullback.
