4 Reasons To Buy the Dip in SoFi Stock Right Now

Core Viewpoint - SoFi has shown strong performance over the past three years but has recently experienced a significant decline in stock value, dropping 19% year-to-date and over 30% from its peak in November, despite a better-than-expected Q4 2025 earnings report [1][2]. Group 1: Q4 Earnings Highlights - SoFi added over 1 million new members in Q4, bringing the total to 13.7 million, which is more than 20 times the member count at the end of 2018 [5]. - The company reported revenue exceeding $1 billion in Q4, marking a 37% year-over-year increase and the first time quarterly revenues surpassed $1 billion [6]. - SoFi's adjusted EBITDA for Q4 was $318 million, with annual adjusted EBITDA exceeding $1 billion for the first time [8]. Group 2: Future Guidance - For Q1 2026, SoFi forecasts revenue of $1.04 billion and projects full-year revenue at $4.65 billion, indicating a 30% growth compared to the previous year [6]. - Management expects adjusted EBITDA for 2026 to reach $1.6 billion, representing a margin of 34% [8]. - The company anticipates full-year adjusted EPS of $0.60, which is 53% higher than the previous year's $0.39, although this guidance is at the lower end of the prior forecast [8]. Group 3: Key Metrics and Brand Performance - The cross-sell rate increased to 40% in Q4, a rise of 7 percentage points from the previous year, highlighting the effectiveness of SoFi's cross-selling strategy [7]. - Unaided brand awareness reached an all-time high of 9.6% in Q4, indicating successful brand-building efforts [7].