Should You Buy SoFi Stock After Q2 Earnings?

SoFi Technologies (SOFI) reported strong Q2 earnings, raised full-year guidance, and gained traction against legacy banks. The stock surged 197% in the past year, but the recent dip after a $1.5 billion public share offering has investors wondering if it's too late to buy SOFI. With its high valuation and capital-light model, investors must weigh the risks and benefits before investing.

SoFi Technologies Inc. (SOFI) delivered a strong performance in its second quarter of 2025, reporting record earnings and raising its full-year guidance. The company's financial results were a testament to its growing market presence and innovative approach to digital financial services.

Key Financial Highlights

SoFi's adjusted net revenue for Q2 2025 was $858 million, up 44% year-over-year, exceeding market expectations of $804.23 million [3]. The company also reported an adjusted net income of $97.3 million, a sevenfold increase from the previous year, and an adjusted EPS of $0.08, surpassing the forecasted $0.06 by 33.33% [3]. This strong performance led to a 16.08% increase in the stock price in pre-market trading, reaching $23.10 [3].

SoFi added 850,000 new members, bringing its total to 11.7 million, and 1.26 million new products, reaching 17.1 million. Fee-based revenue grew by 72% to $377.5 million, driven by the Loan Platform Business, which originated $2.4 billion in third-party loans and pulled in $130.6 million in revenue on its own [2]. The company also funded a record $8.8 billion in loans, including a 66% increase in personal loan originations, a 35% increase in student loans, and a 92% increase in home lending [2].

Future Outlook

SoFi raised its full-year 2025 guidance, expecting adjusted net revenue of approximately $3.375 billion, up from the previous guidance range of $3.235 billion to $3.31 billion, and adjusted EBITDA of around $960 million [1]. The company plans to continue expanding its offerings, including blockchain-enabled international money transfers and AI-driven financial tools.

Investor Concerns

While the earnings report was positive, the stock experienced a dip after a $1.5 billion public share offering, triggering dilution concerns. The stock has since regained its footing, trading above the $21 level seen before the July 29 earnings release. The high valuation of SOFI stock, currently trading at 71 times forward earnings and 9.3 times sales, has raised concerns among some investors [2].

Analyst Opinions

Analyst opinions on SOFI stock are mixed. Jefferies analyst John Hecht lifted his price target to $27 with a "Buy" rating, while Mizuho boosted its price target to $26 and reaffirmed an "Outperform" rating. However, BTIG and TD Cowen analysts kept a "Hold" rating, questioning SoFi's ability to scale fast enough to rival players like Robinhood (HOOD) [2].

Conclusion

SoFi Technologies' strong Q2 earnings and raised full-year guidance highlight its growth potential in the fintech sector. However, the high valuation and recent stock dip have investors weighing the risks and benefits before investing. The company's strategic focus on product innovation and brand building positions it well for future growth, but the high valuation and dilution concerns may pose challenges.

References

[1] https://www.theglobeandmail.com/investing/markets/stocks/SOFI/pressreleases/33764722/sofi-technologies-reports-record-growth-in-q2-2025/
[2] https://www.barchart.com/story/news/33857928/sofi-stock-is-tearing-higher-after-q2-earnings-is-it-too-late-to-buy-sofi-here
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-sofi-technologies-q2-2025-posts-strong-earnings-beat-stock-surges-93CH-4157707