SoFi Technologies (SOFI +1.22%) is a fast-growing online bank, and despite demonstrating outstanding growth so far in 2026, its share price has fallen 41% this year. It seems that each quarter, while the general trajectory is fantastic, something the market didn't like has sent the stock down.
The next update comes on Oct. 27 when SoFi releases third-quarter earnings. Here's what to expect.
The cross-selling strategy is working
SoFi is an all-digital bank aiming to become one of the largest banks in the U.S. Its core business is lending, but it offers a wide range of financial products and services, and its strategy involves cross-selling products to deepen engagement. Today, its repertoire includes basic banking products such as savings accounts and credit cards, as well as innovative offerings such as blockchain-based international wire transfers and a SoFi U.S.-dollar-backed stablecoin.
Image source: Getty Images.
The strategy is starting to take off. Products per member as a metric has accelerated over the last two quarters, and for the first time, products added were twice the number of members added in Q2. That's quite a feat, especially since it added so many new members -- 1.1 million, a 35% increase year over year. "We are starting to hit escape velocity on our path to be the winner that takes most in digital financial services," said CEO Anthony Noto.
Cross-buy is also increasing at 51% of new products coming from existing members, up from 43% in the previous quarter. Investors should take note of product growth relative to member growth in the Q3 update.
Much of market sentiment will hinge on interest rates
SoFi is a growing fintech company, but it's also a bank, which means it moves with traditional bank stocks in some ways. It's highly exposed to interest rates, like any bank stock, and it's been moving lower as the Federal Reserve implies a coming rate hike. Its credit metrics have been improving, with a 3.7% personal loan charge-off rate in Q2, 0.7 percentage points lower than the prior quarter, and a 0.61% student loan charge-off rate, down 0.04 percentage points from the prior year. This is also an important metric to track in Q3.
Should you buy SoFi stock now?
Management didn't provide an outlook for Q3, but Wall Street is expecting $1.26 billion in revenue, a 32.7% increase over last year, and $0.17 in earnings per share (EPS), up from $0.10 last year.
NASDAQ: SOFI
Key Data Points
It's really anyone's guess how the stock will react. If credit metrics get worse or results don't meet expectations, the stock is likely to drop again. However, at the current, lower price, the stock can absorb some news the market doesn't like if the report is solid.
Long term, SoFi has a clear path toward continued growth, and if you can hold for a few years, this could be a good time to buy the stock.
