Key Takeaways SoFi's shares jumped 82% in six months as Q3 showed record EBITDA, strong lending revenues.The company raised 2025 guidance, boosting member, revenues, EBITDA and tangible book value projections.Galileo integration strengthens SoFi's tech stack, supporting faster innovation and a more scalable platform.Shares of SoFi Technologies, Inc. (SOFI) have surged 82% in the past six months against the industry’s 1% decline.                                                    Image Source: Zacks Investme ...

Core Insights - Scalable profitability is the driving force behind SoFi Technologies' (SOFI) improved guidance for 2025, with expectations raised across all major metrics [1][3] - SoFi anticipates adding approximately 3.5 million members, reflecting a 34% growth rate, up from the previous forecast of 30% [1] - The upward revision indicates the compounding effect of SoFi's expanding ecosystem, leading to higher product adoption and increased operating leverage [1] Revenue and Profitability Expectations - Adjusted net revenue is projected at $3.54 billion, indicating a 36% year-over-year growth, surpassing the prior estimate of $3.375 billion [2] - Adjusted EBITDA is now guided to $1.035 billion, with adjusted net income expected at $455 million and adjusted EPS of $0.37 [2] - Tangible book value growth is forecasted at $2.5 billion, significantly above the earlier target of $640 million, indicating enhanced capital strength [2] Business Efficiency and Growth - The broad upward revision suggests that SoFi is gaining structural efficiency as it scales, with strong member growth and improved cost discipline [3] - The transition into a higher-margin financial platform is supported by expanding fee-based revenue streams, providing clearer visibility into long-term profitability [3] Peer Comparison - Upstart (UPST) is compared as it focuses on AI-driven lending but faces inconsistent loan volume, making it less predictable in achieving sustained profitability [4] - LendingClub (LC) follows a marketplace-bank hybrid model but has not matched SoFi's momentum in member expansion or fee-income scale, reflecting challenges in achieving similar operating leverage [5] Stock Performance and Valuation - SOFI's stock has gained 81% year to date, contrasting with the industry's 6.5% decline [6] - The stock trades at a forward price-to-earnings ratio of 49X, significantly above the industry's 24X, and carries a Value Score of F [8] - The Zacks Consensus Estimate for SOFI's 2025 earnings has been on the rise over the past 30 days, indicating positive market sentiment [10]