Why SoFi Technologies Is Poised for More Upside in 2025

SoFi Technologies Inc. (SOFI) posted impressive results in Q2 2025. The company expanded rapidly across its financial services, lending, and technology segments. Moreover, innovation in AI, blockchain, and digital banking fuelled growth. This article presents the financial and technical performance of SoFi Technologies to understand the stock’s next move.

Q2 2025 Earnings Analysis

SoFi delivered an exceptional performance in Q2 2025. The adjusted net revenue surged 44% year-over-year, reaching the fastest growth rate in over two years. The chart below shows that the revenue for Q2 2025 surged to $1.30 billion. This strong growth came from record member growth and new product rollouts. CEO Anthony Noto credited innovation and brand expansion as key drivers of this performance.

According to the Q2 2025 earnings, SoFi added 850,000 new members during the quarter, marking a 34% increase from the previous year. This addition increased the total membership to 11.7 million. The company also added 1.26 million new products, up 34% year-over-year, bringing the total to 17.1 million.

This growth was driven by strong adoption of SoFi Money, Relay, and Invest. Notably, over 35% of new products were opened by existing members, highlighting the strength of SoFi’s one-stop-shop model. Additionally, financial services revenue per product jumped by more than 50%.

On the other hand, the fee-based revenue hit a record $377.5 million, increasing 72% year-over-year. This growth was led by the Loan Platform Business (LPB), which originated $2.4 billion in loans for third parties. With origination volume increasing 57% from Q1, SoFi is on pace to turn LPB into a $1 billion revenue segment.

Similarly, the total loan originations surged to $8.8 billion, setting a new record. Personal loans grew 66%, while student loans increased 35%. Home loan originations jumped 92% due to improved tech and a new home equity product. These gains reflect SoFi’s strategic focus on product innovation and fulfillment.

SoFi also made key advances in crypto and AI. It announced blockchain-powered international transfers and a return to crypto trading. The upcoming “Cash Coach” AI feature is set to help members manage money more efficiently. These innovations aim to deepen member engagement and retention.

How SoFi’s Core Business Segments Are Fueling Stock Momentum

SoFi operates three primary business segments: Financial Services, Lending, and Technology Platform. The Financial Services segment led the growth in Q2 2025, with net revenue increasing to $363 million from $176 million a year ago. Moreover, the noninterest income and net interest income grew significantly, with noninterest income increasing more than fourfold year-over-year.

The contribution margin increased to 52%, and profit reached $188 million, which is more than triple the figure from Q2 2024. This performance reflects SoFi’s strong growth in deposits, interchange revenue, and brokerage activity.

The Lending segment also delivered solid results with adjusted net revenue increasing to $447 million in Q2 2025, reflecting 32% year-over-year growth. Most of the revenue came from net interest income on held loans, which reached $373 million, as shown in the chart below.

Moreover, contribution profit rose to $245 million, and while the contribution margin dipped slightly to 55%, it remained robust. This segment benefited from strong demand for personal, student, and home loans, driven by SoFi’s product innovation and efficient fulfillment.

Technology Platform segment grew modestly, with net revenue reaching $110 million in Q2 2025. The contribution profit remained stable at $33 million, while the contribution margin held steady at 30%. Despite slower growth compared to other segments, the platform maintained consistent profitability.

This segment supports SoFi’s broader ecosystem and reflects the company’s focus on infrastructure stability and recurring revenue through third-party technology solutions.

SoFi’s 2025 Guidance Signals More Upside Ahead

Given these strong results, SoFi raised its full-year 2025 guidance. The company now expects adjusted net revenue of approximately $3.375 billion, reflecting 30% annual growth. This is higher than its previous forecast of $3.235 to $3.310 billion.

Moreover, the adjusted EBITDA is now projected at $960 million, with a 28% margin, up from earlier estimates of $875 to $895 million. Similarly, the net income is expected to reach $370 million, pushing EPS to $0.31, compared to prior guidance of $0.27 to $0.28.

The company’s management also outlined strong business expectations. SoFi plans to add at least 3 million new members, a 30% increase from 2024. It expects lending revenue growth in the low double digits to teens and financial services revenue growth of 60% to 65%.

The technology platform is also forecast to grow in the low double digits. Overall, the raised guidance signals confidence in strong momentum across all business segments.

Bullish Chart Patterns Point to Higher Targets for SoFi in 2025

The long-term outlook for SoFi remains strongly bullish, as shown in the monthly chart below. The stock formed a solid bottom between May 2022 and May 2023. This one-year consolidation created a rounding bottom pattern that led to a breakout in July 2023 toward the $11.20 resistance zone.

After hitting resistance, SoFi entered another consolidation phase from July 2023 to October 2024, forming a second rounding bottom. The stock broke above $11.20 in 2024, reaching around $11.25. In April 2025, a bullish hammer candle appeared, signaling the start of a strong uptrend.

Since April 2025, SoFi has posted consecutive monthly gains with no negative candles. The stock price continues to rise, breaking key resistance levels at $20.20 and $25.20. This breakout suggests that SOFI Technologies is entering a new phase of accelerated growth.

Technical Breakouts Signal Sustained Uptrend for SoFi Stock

The weekly chart for SoFi shows a strong bottom pattern around the $11.20 level. The positive consolidation from 2022 to 2024 suggests that the stock is likely to continue higher. A strong rally followed in 2025, with the price surging from April to recent highs in September.

This sustained momentum confirms that SoFi remains in an upward trend. In addition, the long-term resistance line, marked by the red dotted trend line, was broken in July 2025. This breakout signals growing bullish momentum in the stock.

The daily chart for SoFi Technologies shows strong bullish momentum. It highlights an inverted head and shoulders pattern, with the head at $8.60 in April 2025 and shoulders at $10.85 and $12.78 in March and May 2025. The neckline at $14.50 was broken in June 2025, triggering a sharp upward move.

Following this breakout, the stock formed an ascending broadening wedge pattern after surpassing the $18.20 region. It is now approaching resistance near $28.50. The long-term resistance at $25.00, marked by the blue dotted trendline, was also broken, confirming continued bullish strength.

Based on this strong setup across both long- and short-term charts, SOFI remains in a powerful uptrend. Investors can consider buying on any pullback. As long as the price holds above $25.00, the trend remains intact. A price correction toward the $23.00–$25.00 support zone within the broadening wedge may offer buying opportunities for investors.

Risks to Watch as SoFi Stock Climbs Higher

The Federal Reserve is expected to announce its interest rate decision this week. Political and economic uncertainty continues to impact sentiment in financial markets. The Fed may cut rates to support growth. However, the broader economic outlook remains unclear. The rising unemployment and slowing job creation suggest a weakening labour market.

Despite various efforts, inflation remains elevated. Tariff-related costs are pushing consumer prices higher. These high prices continue to pressure household budgets and limit spending power. At the same time, political risk is increasing. Global tensions and domestic policy shifts add to investor concerns. This growing uncertainty could weigh on future market performance.

Moreover, the regulatory uncertainty also threatens growth. The changes in fintech or crypto regulations could impact product offerings. SoFi’s expansion into blockchain and AI may face compliance challenges, especially as oversight increases.

On the other hand, the competition in digital finance is increasing. Traditional banks and new fintech startups continue to launch similar services. If SoFi fails to retain members or attract new users at the same pace, revenue growth could slow in future quarters.

From a technical perspective, SoFi is approaching the record highs last seen in February 2021. This level has acted as a strong resistance zone, increasing the risk of a potential correction from this area.

Moreover, SoFi has a P/E ratio of 56.40, which is over 250% higher than the financial services sector average of 14.48. This elevated valuation could expose the stock to sharp corrections if growth expectations are not met or if broader market sentiment turns risk-averse.

Why SoFi Stock Still Offers Upside Despite Market Risks

SoFi delivered strong results across all segments in Q2 2025. Revenue, product growth, and membership surged to new records. The company maintained high contribution margins and steady profitability in every business line. Innovation in AI and blockchain added to future growth potential. These achievements allowed SoFi to raise its full-year guidance with confidence.

From a technical perspective, SoFi is emerging from a strong bottom formation and continues to show bullish momentum in 2025. The stock has broken key levels at $20.20 and $25.20, and it continues to rise in a parabolic trend. If the price holds above $25, the next move is likely to be strong and higher. Investors can consider buying the stock at current levels and add more positions if the price corrects toward the $25 or $20 region.