TLDR
- SoFi Technologies stock surged to an all-time high of $30.35 in September but has since fallen over 5% to below $26
- The company reported 44% revenue growth and 459% adjusted net income growth in Q2 2025 with 11.7 million total members
- Analysts expect $883.14 million in revenue next quarter and $3.43 billion for the full year
- SoFi is expanding services to include crypto trading for Bitcoin and Ethereum plus international money transfers
- The stock broke below its 20-day moving average with $25 emerging as the next support level
SoFi Technologies reached an all-time high earlier this month at $30.35. The stock has now given back those gains.
Shares fell more than 5% today and dropped below $26. That puts the fintech company about 14% off last week’s peak.
The pullback comes despite strong financial results and ambitious expansion plans. It highlights how quickly sentiment can shift in the fintech sector.
SoFi’s September rally was fueled by impressive Q2 earnings. The company reported 44% year-over-year revenue growth to $858 million.
Adjusted net income surged 459% to $97 million. The company added 846,000 new members in the quarter.
Total membership now stands at 11.7 million. That’s more than double the number from three years ago.
The stock eclipsed its previous 2021 peak during the rally. Investors responded positively to management raising full-year guidance.
However, the recent decline pushed shares below a key technical level. The stock fell beneath its 20-day simple moving average.
This moving average had provided support since April. Technical analysts view this break as a potential warning sign.
Revenue Expectations Remain Strong
Analysts project continued growth ahead. The Zacks Consensus Estimate calls for $883.14 million in revenue next quarter.
That would represent 28% growth year-over-year. Full-year revenue forecasts sit at $3.43 billion.
Earnings per share estimates show similar optimism. Analysts expect $0.08 EPS next quarter, up 60% from last year.
Full-year EPS projections of $0.32 would mark 31.73% growth. The company has delivered two consecutive years of positive adjusted net income.
Fee-based revenue now accounts for 44% of total revenue. This shift shows SoFi has moved beyond its student loan refinancing origins.
The lending portfolio performed well with $8.8 billion in loans originated during Q2. Charge-offs have been declining over recent quarters.
New Services Coming to Platform
SoFi operates as a digital-first platform. Users can manage checking accounts, loans, stock trading, and crypto all in one app.
The company plans to restart its crypto service this year. Members will be able to trade Bitcoin and Ethereum directly in the app.
Management is also exploring staking services and crypto-backed loans. Plans for a proprietary stablecoin are under consideration.
International money transfers are coming soon for qualified SoFi Money users. The feature will be automated and self-service within the app.
SoFi launched the SoFi Agentic AI ETF to capture investor interest in artificial intelligence. The company is expanding into private market funds as well.
These moves give retail investors access to opportunities previously reserved for institutions. The strategy aims to create a full-spectrum financial platform.
Cross-selling multiple products to each customer increases engagement. It also reduces customer churn and builds switching costs.
Traditional banks typically specialize in one area. SoFi’s integrated approach sets it apart from competitors.
The company faces competition from Robinhood in trading. BlackRock competes in asset management while Coinbase challenges in crypto.
Execution will be key as SoFi balances banking, investing, and new services. The stock currently trades at a P/E ratio of 62 times.
SoFi’s gross profit margin hit 82% in Q2. The company received a “GOOD” financial health rating.
Lower interest rates could boost lending volumes in coming quarters. This would further support profitability.
The next support level sits at $25 if selling pressure continues. Investors will watch the next earnings report closely.
