Where Will SoFi Be in 1 Year?

Core Viewpoint - The current economic environment presents challenges for SoFi Technologies, with potential impacts on its growth trajectory due to tariffs and economic uncertainty [1][6][10]. Company Performance - SoFi has experienced significant growth, with its member base increasing ninefold to over 10 million in the past five years, and revenue rising 26% to $2.6 billion last year [3]. - The adjusted earnings per share improved to$0.15, a recovery from a loss of $0.10 in 2023 [3]. - Management projects revenue to reach approximately$3.2 billion in 2025, reflecting a 25% increase from 2024 [4]. Economic Outlook - The favorable financial conditions that have supported SoFi's growth may be weakening, with concerns about the impact of tariffs on consumer and business financial outlooks [5][6]. - A recent survey indicated that 60% of U.S. CEOs anticipate a recession within the next six months, with economists estimating a 47% chance of recession this year [7]. - Consumer sentiment has declined, now lower than during the Great Recession, indicating a shift in public perception regarding economic stability [9]. Risks to Growth - The potential for an economic slowdown could adversely affect SoFi, as the company relies on new product sign-ups, borrowing, and loan repayments [8][10]. - The uncertainty surrounding tariffs and their economic implications suggests that SoFi may not replicate its previous growth in 2025, with consumers likely to reduce spending [10].