After a strong rally through 2025, SoFi (SOFI) stock stumbled on Tuesday as investors reacted to dilution concerns tied to the company’s $1.5 billion equity raise. Even with that setback, the broader picture remains constructive. Shares are still up roughly 81% over the past year, reflecting the market’s confidence in SoFi’s evolving business model.
A key driver behind this optimism is SoFi’s steady shift toward capital-light sources of income. The company has been expanding its technology platform fees and financial services revenue, both of which generate attractive margins without tying up large amounts of capital. Importantly, these businesses reduce SoFi’s reliance on interest income and lower its exposure to credit risk, making overall earnings more resilient in different market conditions.
That said, SoFi’s lending operations continue to hold up well. Loan originations remain solid, supported by a growing and loyal deposit base. This deposit strength helps keep funding costs relatively low, giving SoFi an advantage over competitors that rely more heavily on external or higher-cost funding. The result is a lending segment that remains profitable while the company builds out less cyclical revenue streams alongside it.
Adding to the positives, SoFi recently launched its first stablecoin, SoFiUSD. This move marks an important step in expanding its non-lending businesses that can scale efficiently over time while reducing reliance on interest-driven revenue.
Valuation a Concern, but Fundamentals Still Support SOFI Stock
The sharp rise in SOFI’s share price naturally raises questions about valuation. However, the strong underlying business suggests that there’s room for further upside. The company is scaling efficiently, improving the quality and durability of its revenue, and strengthening its funding profile. These factors position it well for sustainable growth.
A key growth catalyst for SoFi is its rapidly expanding member base. The company added a record 905,000 new members in the most recent quarter, lifting total membership to 12.6 million, a 35% increase from a year earlier. This growth highlights the appeal of SoFi’s all-in-one financial platform, which combines banking, lending, investing, and technology services in a single ecosystem.
Further, SoFi’s total products reached 18.6 million, up 36% year-over-year (YoY), with roughly 40% of new product additions coming from current users. This strong cross-buy behavior shows SoFi’s ability to increase customer lifetime value without significantly raising acquisition costs.
Notably, SoFi’s transition toward less balance-sheet-intensive operations is gaining real traction. Its Financial Services and Technology Platform segments generated $534 million in revenue in the third quarter, a 57% increase YoY. These segments are scalable and are expected to deliver higher margins over time.
Its fee-based revenue climbed 50% to $409 million during the quarter. On an annualized basis, fee income now exceeds $1.6 billion. As this revenue stream becomes a larger portion of total sales, SoFi should benefit from greater earnings stability, especially in a volatile macro environment.
Another increasingly important contributor is SoFi’s Loan Platform Business. This model allows the company to originate and transfer customized loan portfolios for third-party partners. Because these loans sit on SoFi’s balance sheet for only a brief period, the company earns attractive fees without taking on long-term credit risk. The result is incremental revenue growth that strengthens the balance sheet.
Despite the strategic emphasis on fee-driven activities, lending continues to be a meaningful contributor to SoFi’s growth. In the third quarter, lending revenue rose 23% YoY to $481 million, with loan originations hitting a record $9.9 billion, driven largely by demand for unsecured personal loans. Meanwhile, deposits grew to $32.9 billion, strengthening SoFi’s position as a well-funded digital bank with a lower-cost and stable funding base.
The Bottom Line
While analysts maintain a “Hold” consensus rating on SOFI stock, the fintech appears well-positioned for continued growth in 2026. A fast-growing member base, increasing engagement across products, accelerating growth in capital-light and fee-based businesses, and a solid deposit foundation position it well to deliver solid financials, which could boost its share price.
On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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