3 Fintech Stocks Beating the Market in 2025

Core Viewpoint - The fintech sector is experiencing a resurgence in 2025, driven by expectations of lower interest rates and ongoing innovation in digital banking, lending, and payments [1][15]. Group 1: DLocal - DLocal specializes in cross-border payments for global merchants in emerging markets, addressing gaps in traditional financial infrastructure [3]. - Following a strong Q2 earnings report, DLocal's stock surged over 40%, maintaining a nearly 20% increase year-to-date [4]. - The Q2 report revealed a record Total Payment Volume (TPV) of $9.2 billion, a 53% year-over-year increase, and revenue of $256.5 million, exceeding estimates by 11.8% [5][6]. Group 2: Affirm Holdings - Affirm, a pioneer in the buy-now-pay-later space, has seen its shares rise approximately 47% year-to-date, recovering from earlier losses [7]. - The company's fiscal Q4 earnings showed EPS of 20 cents, surpassing estimates, and revenue increased nearly 33% year-over-year to $876.4 million [8][9]. - Despite concerns over consumer credit risks, Affirm's latest results have bolstered investor confidence in its business model [9]. Group 3: SoFi Technologies - SoFi has emerged as a standout performer in 2025, with stock gains exceeding 65% year-to-date, transitioning from a student lending focus to a diversified digital bank [11]. - The Q2 results indicated EPS of 8 cents and revenue of $858.2 million, reflecting a 43% year-over-year growth [12]. - The stock is consolidating near 52-week highs, with potential for further gains if it surpasses the $26 key level [13]. Group 4: Overall Fintech Sector Performance - The fintech sector remains volatile, but companies like DLocal, Affirm, and SoFi are demonstrating strong earnings and renewed investor interest [14]. - The outlook for these companies could improve further with the anticipated backdrop of lower interest rates and increased digital adoption [15].