SoFi Technologies (SOFI) Soars 20.18% on 33% Revenue Surge

SoFi Technologies (SOFI) shares surged 1.10% today, marking the seventh consecutive day of gains, with a 20.18% increase over the past week. The stock price reached its highest level since November 2021, with an intraday gain of 4.24%.

The strategy of purchasing SOFI shares after they reached a recent high and holding for one week yielded moderate returns but underperformed the broader market. The 5-year annualized return of this strategy was approximately 10%, lower than the 15% return of the SPY ETF over the same period. This suggests that while SOFI has shown strong performance in specific periods, the consistency and overall performance of this strategy fell short compared to a passive investment approach.

SoFi Technologies reported a 33% year-over-year increase in revenue, reaching $771 million for Q1 2025. This growth is driven by its Loan Platform Business and fee-based services like SoFi Money and Invest. The company has significantly expanded its user base, reporting a 34% year-over-year increase in total members, reaching 10.9 million, with 800,000 new members added in Q1 2025. This growth reflects SoFi's successful cross-selling strategy.

SoFi's adjusted EBITDA margin increased by 46% year-over-year, hitting 27% in Q1 2025. The company’s ability to maintain high margins in its financial services division underscores its operational efficiency and profitability. SoFi's diversified business model, which includes lending, financial services, and fee-based products, positions it as a leader in the fintech sector. This diversification reduces reliance on any single market and aligns with broader trends in financial inclusion and digital adoption.

SoFi is considered a safer and growth-oriented investment compared to competitors. The stock has seen positive performance in 2025, with record revenue and strategic moves such as the reintroduction of crypto-related offerings. Analysts have varied ratings, with some assigning a Hold rating and others maintaining a Sell rating. These factors collectively highlight SoFi Technologies as a strong contender in the fintech industry, with robust growth prospects and strategic advantages that may influence its stock price favorably.