SoFi Technologies, Inc. (SOFI): A Bull Case Theory

Core Thesis - SoFi Technologies, Inc. is experiencing strong growth and is expected to exceed its 2026 guidance, with projected EPS of $0.75 and revenue surpassing analyst expectations [5] Financial Performance - SoFi reported its first GAAP profitable quarter in Q4 2023, with EPS guidance for 2026 set between $0.55 and $0.80, driven by growth in Lending, Tech Platform, and Financial Services [2] - Lending has shown significant growth, with a 27% increase in Q1 and a 32% increase in Q2 2025, supported by a favorable macro environment and a recent capital raise [2] - Financial Services, propelled by the LPB launched in Q3 2024, achieved 101% and 106% growth in Q1 and Q2 2025, respectively, with contribution margins reaching 52% in Q2 [3] Segment Performance - The Tech Platform segment has underperformed, growing around 15% in Q2, which is below the 25% target, prompting leadership changes to enhance execution [4] - Contribution margins in the loan platform business are lower, but high-margin revenue from Financial Services offsets this, maintaining overall profitability above expectations [2][3] Strategic Outlook - The company’s strong balance sheet and reinvestment capacity position it for further acceleration, making it a compelling investment opportunity [5] - SoFi's stock price has appreciated approximately 111% since previous bullish coverage, reflecting strong revenue growth and expanding membership [6]