In a year when most analysts can’t look away from anything stamped “AI,” SoFi Technologies has become one of the market’s most surprising comeback stories.
The digital-first bank now commands a $30+ billion market cap, yet it still manages to slip past the radar of investors glued to megacap tech.
The stock is closing in on triple-digita gains this year, almost an eye-popping 6x over the past three years. That kind of performance doesn’t happen unless something meaningful is happening behind the scenes.
And with SoFi, there is.
Key Points
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SoFi has evolved into a fast-growing digital bank, powered by its banking charter, booming deposits, and a rapidly expanding user base.
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Execution is strong, with rising profitability and new products that deepen customer engagement.
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Valuation is the main risk, as the stock trades at a premium after its massive multi-year run.
A Fintech That’s Graduated Into a Full-Scale Bank
What’s made SoFi’s run so striking is how durable the momentum has been. Most investors know the company for its early days in student lending, but the business today barely resembles that version. SoFi has rebuilt itself into a vertically integrated bank with its own national banking charter, a structural advantage most fintech peers still dream about.
That charter is a superpower because it lets SoFi fund loans more cheaply than marketplace lenders, keep interest income for itself, and scale without relying on volatile third-party capital markets.
You can see the impact in the numbers. In Q3, the company added over 900k new members, pushing SoFi past just shy of 13 million total users.
Three years ago, it had fewer than half that. Revenue climbed to $950 million for the quarter and several analysts have noted that SoFi’s deposit base is growing 5x faster than regional banks of similar size, a datapoint few investors realize.
Cross-Selling + New Product Lines
The real unlock for SoFi isn’t just adding users but getting those users to adopt more parts of its ecosystem. Only a minority of members use more than one SoFi product today, which gives the company a long runway. Each new layer, whether checking, savings, credit cards, investing, personal loans, or mortgages makes the customer stickier and raises lifetime value.
Many investors also missed SoFi’s push into newer segments, including crypto trading and cross-border transfers powered by the Bitcoin Lightning Network. While those may seem niche, they serve a purpose: they attract younger, higher-earning customers who are typically early adopters of new financial tools.
Why the Stock Pulled Back
Even great companies hit potholes. SoFi shares dipped after management announced a $1.5 billion equity raise. Investors hate dilution, and the sell-off essentially reflected knee-jerk math.
But the nuance matters. SoFi raised the exact same amount back in July, and the stock has climbed sharply since then.
The company is raising capital from a position of strength, not distress. In fact, one under-appreciated fact is that SoFi now has one of the fastest-growing deposit bases of any U.S. digital bank, giving it optionality few fintechs enjoy.
More capital simply gives SoFi a longer runway to scale its lending, broaden its product suite, and accelerate technology investments.
In other words, it’s dilution in service of expansion, not survival.
Is the Stock Too Expensive?
Fundamentally, SoFi checks nearly every box investors want, strong growth, improving profitability, increasing brand recognition, and a loyal customer base. The one sticking point is price.
After a nearly 6x three-year run, the stock now trades around 50x earnings. That multiple prices in a lot of future execution, and investors need to decide whether they think SoFi can grow into, and beyond, that valuation.
If SoFi hits Noto’s long-term targets, the next phase of its life could look much more like a major national bank than a fintech startup. That’s the upside scenario the market is gradually waking up to.
If growth slows, however, the valuation won’t leave much room for error.
SoFi Top 10 Bank?
SoFi has clawed its way from niche lender to full-scale digital bank, built an infrastructure moat most fintechs simply don’t have, and is steadily compounding revenue, members, and profitability.
For long-term investors, this belongs on the watchlist at a minimum. Whether it’s a buy right now depends entirely on your comfort with paying up for a company that’s executing well, but still has a lot to prove as it marches toward its “top-10 bank” vision.
If SoFi keeps up this trajectory, today’s valuation could eventually look cheap in hindsight. If not, the stock’s stellar run means expectations are high enough to leave little cushion.