Why This Analyst Is Betting SoFi Stock Can Gain 40% in 2026

Core Insights - SoFi Technologies has seen a significant decline in its stock value in 2026, down 19.1% year-to-date, while the broader S&P 500 Index has gained 1.4% [1] - The company supports 128.5 million accounts globally through its Galileo infrastructure, extending its reach beyond its member base of 13.7 million [1][2] - Despite recent stock performance issues, analysts at Citizens JMP believe SoFi's stock could rise over 40% in 2026 due to its growth potential and market position [4][14] Company Overview - Founded in 2011, SoFi Technologies is a California-based online-only bank that aims to redefine money management in the digital age [3] - The company operates as a digital one-stop shop for financial services, helping users manage borrowing, saving, spending, investing, and protecting their money [2][3] Recent Performance - SoFi's stock has faced selling pressure, dropping nearly 22.7% in the past month and sitting about 55% below its 52-week high of $32.73 [6] - The company reported strong Q4 2025 results, with total net revenue increasing 40% year-over-year to $1.03 billion, surpassing expectations [9][8] - Fee-based revenue surged 53% to a record $443 million, driven by strong performance in various segments [10] User Growth and Engagement - SoFi added a record 1 million new members in the last quarter, bringing total membership to 13.7 million, a 35% increase year-over-year [11] - Product adoption also rose 37% to a record 20.2 million products, indicating strong user engagement [11] Financial Metrics - The company achieved adjusted net income of $174 million, a 160% increase from the previous year, and logged its ninth consecutive profitable quarter [11] - Adjusted EBITDA climbed 60% to a record $318 million, reflecting improved operating efficiency [12] Market Sentiment and Analyst Outlook - Analysts express mixed sentiments about SoFi, with a consensus "Hold" rating among 24 analysts, indicating a balance of optimism and caution [18] - The average price target for SoFi is $27.32, suggesting a potential upside of about 29% from current levels, with the most bullish target at $38 indicating a possible 79% rally [19] Strategic Initiatives - SoFi is diversifying its revenue streams, becoming less reliant on traditional lending income as it expands into fee-based and capital-light revenue [17] - The company has launched innovative products, including crypto trading and a stablecoin, and is expanding its blockchain-powered international remittances [12][13]