Will Q2 Earnings Drive SOFI Stock Higher? Here's What Wall Street Thinks
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Expectations from SOFI's Q2 Earnings
SoFi Technologies reported a 20% growth in its Q1 revenue and the sixth consecutive quarter of GAAP profitability. The company ended the quarter with 10.9 million members, marking an impressive 34% growth. Investors will be keen to see if that momentum continued in the second quarter.
They would also pay attention to the strength in SoFi's Financial Services segment, its fastest-growing division, which includes offerings like SoFi Money, Loan Platform Business (LPB), and SoFi Invest. The company is growing beyond its traditional lending business by aggressively shifting to fee-based revenue.
Analysts expect SOFI's Q2 revenue to increase by more than 34% to about $804.2 million, while earnings per share (EPS) is estimated to jump to $0.06 from $0.01 in the prior-year quarter.
Analysts' Views Ahead of SoFi's Q2 Earnings
Heading into Q2 results, Goldman Sachs analyst Will Nance initiated coverage of SoFi Technologies stock with a Hold rating and a price target of $19. The analyst noted the company's impressive growth story in the neobank space, its focus on diversification, and the strength of the company's LPB offering. That said, Nance contends that at 5.0x tangible book value, SOFI stock seems 'somewhat disconnected' from the return profile of the business. The analyst is also concerned about SoFi's unique fair value accounting for its lending business, which pulls forward earnings.
Recently, Keefe, Bruyette & Woods analyst Timothy Switzer increased the price target for SoFi Technologies stock to $13 from $9, but reaffirmed a Sell rating. The analyst noted strong catalysts that drove SOFI stock higher in recent months, mainly the pending revenue opportunities from the recently announced re-entry into crypto trading and significantly expanded student lending opportunity following the passage of U.S. President Donald Trump's 'Big, Beautiful Bill.'
Despite SoFi's exciting growth prospects and strong value proposition, Switzer remains bearish on SOFI stock, as he believes that it has moved beyond its fundamental value.
Is SOFI Stock a Buy, Sell, or Hold?
Overall, Wall Street is cautious on SoFi Technologies stock, with a Hold consensus rating based on five Buys, eight Holds, and three Sell recommendations. The average SOFI stock price target of $17.08 indicates a downside risk of about 21% from current levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
36 minutes ago
- Yahoo
Will Stripe SPAC or IPO in 2025?
Key Points Webull, Chime, and Circle Internet Group are some popular fintech companies that went public during the past year. In addition, SoFi Technologies and Robinhood Markets have emerged as leading fintech stocks over incumbents such as Block or PayPal. Although Stripe is a highly coveted private company, investors are curious if the company will become the next hot fintech IPO. 10 stocks we like better than SoFi Technologies › During the past several years, a number of technology-driven companies have burst onto the scene in search of disrupting the financial services industry. Amid a flurry of public offerings from the likes of Webull, Chime, Circle Internet Group, Robinhood Markets, and SoFi Technologies (NASDAQ: SOFI), financial services unicorn Stripe has remained a private company. But with a reported valuation of $91.5 billion, Stripe exceeds the market capitalizations of incumbent fintech businesses such as PayPal and Block by a considerable margin. Let's dig into the paths that competing fintech companies took to public exchanges in recent years. From there, I'll outline some factors that may weigh on Stripe's decision to pursue a public offering in the near future. How do companies go public? During a traditional initial public offering (IPO) process, a company will engage a number of investment banking firms such as Goldman Sachs, Morgan Stanley, or JPMorgan Chase to assist with the underwriting process. Banks put together detailed documentation covering the company's historical financial profile, key performance indicators (KPIs), and risk factors around the business. This information is packaged in a regulatory filing known as an S-1 made with the Securities and Exchange Commission (SEC). From there, banks and executives conduct a roadshow during which they market and pitch the IPO offering to institutional investors and wealth management firms. This process helps gauge investor interest and how the offering should be priced. Another way to list on the public exchanges is through a special purpose acquisition company (SPAC). SPACs are colloquially referred to as "blank check companies" on Wall Street. Essentially, a sponsor will take a shell company public to raise capital. From there, the goal is to use those funds to merge with a private company and take it public . SPACs can be attractive for businesses as they typically offer a faster route to going public compared to traditional underwriting protocols led by investment banks. For investors, SPAC mergers may be more accessible than traditional IPO companies -- where allocations are generally first reserved for institutional investors. How have fintech offerings fared in recent years? Although SPACs may sound appealing as they can provide investors with access to popular start-ups in hot industries more easily than a traditional IPO, there are some important points to consider about these companies. According to a SPAC study conducted at the University of Florida, one-year de-SPAC (the transition period after a merger announcement) returns averaged negative 46.3% between 2012 and 2022. The average three-year return was even worse, posting a return of negative 57.7%. When it comes to industry-specific metrics, the median de-SPAC returns between 2009 and 2025 for crypto companies was negative 66% while broader financial services companies returned negative 6%. No matter which way you cut it, SPACs in the fintech realm have been largely underwhelming. By contrast, since Robinhood went public back in 2021 using the traditional IPO process, the shares have surged by 192% -- handily topping the 48% return from the S&P 500. Both Circle and Chime completed IPOs about a month ago and have posted mixed returns so far. While Circle stock went to the moon initially, it has since pulled back considerably (yet still trades much higher than its IPO price). Chime's action has been relatively muted, likely due to investors realizing that competing neobank SoFi is much larger and more profitable -- calling into question Chime's growth prospects. Should Stripe go public in 2025? Overall, I think the results have largely been mixed for public offerings in the fintech sector in recent years. I think a big reason for this performance is that despite impressive growth and differentiated product offerings, questions remain over how neobanks and new brokerage platforms can really compete and disrupt industry incumbents. In addition, I think Stripe is likely weighing how macro factors such as potential changes to Federal Reserve monetary policy could affect its own business results, sentiment across the broader capital markets, valuations, and appetites for public offerings. Whether Stripe should go public really hinges on the company's needs and whether it makes sense from a strategic and operational perspective. Should you buy stock in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Adam Spatacco has positions in SoFi Technologies. The Motley Fool has positions in and recommends Block, Goldman Sachs Group, JPMorgan Chase, and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. Will Stripe SPAC or IPO in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Epoch Times
3 hours ago
- Epoch Times
LIVE NOW: House Ways and Means Committee Holds Hearing on Economic Bill
The House Ways and Means Committee holds a hearing titled 'The One, Big, Beautiful Bill Delivering for the American Economy' at the Ronald Reagan Presidential Library in Simi Valley, California, at 12 p.m. ET on July 26.
CNBC
5 hours ago
- CNBC
SoFi Student Loans: 2025 Review
If you're looking to take out a student loan you probably just have the basics in mind — good rates, manageable terms and a clear path to repayment. While many lenders check those boxes, some go a step further. SoFi, one of the biggest names in the private student loan space, offers more than just funding. From career coaching to financial planning tools and member perks, SoFi is designed to support borrowers well beyond the classroom. Let's break it down. 3.23% to 15.99% APR with 0.25% autopay discount (Undergraduate New Loan). Other rates and loan types are available. Visit SoFi's website for full details. Undergraduate, graduate, parent loans, law school, MBA and health professions loans $5,000 (or state-mandated minimum) up to the cost of attendance 5, 7, 10, 15 years; refinancing loans up to 20 years No Yes - click here for details Yes - click here for details Terms in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent and graduate students, parents, health professionals$5,000 minimum (or up to state); maximum up to cost of attendance5, 7, 10, 15, years; up to 20 years for refinancing loans Terms applyUndergraduate and graduate students, parents, international students with U.S. co-signer$1,000 up to the cost of attendance ($180,000 lifelong maximum)5, 8, 10, 15 years for undergraduate loans, up to 20 years for graduate loans Terms apply SoFi offers private student loans for undergraduate, graduate, law, MBA and parent borrowers. These loans are designed to help cover educational expenses not met by scholarships, grants or federal student aid. SoFi also offers student loan refinancing for those looking to consolidate and potentially lower their existing loan payments. To qualify for a SoFi student loan, you must meet several eligibility criteria related to your enrollment status, credit history and U.S. residency. You'll also need to apply with the necessary documentation, such as proof of income, ID and school certification. SoFi required you to be enrolled at least half-time in a degree-granting program at an eligible Title IV school. SoFi loans are not available for non-degree or certificate programs. You also need to have good to excellent credit, typically a minimum FICO score of 650 to 680, though having a co-signer can improve approval odds and interest rates. SoFi performs a soft credit check for prequalification, so checking rates won't affect your score. SoFi offers competitive rates with no hidden fees. Their loans are often best suited for borrowers with strong credit or access to a creditworthy co-signer. SoFi offers fixed rates starting at around 3.23% to 15.99% APR, and variable rates starting at around 4.39% to 15.99% APR. Exact rates vary by creditworthiness, loan term and whether you sign up for autopay. SoFi offers both fixed and variable rate student loans with terms ranging from five to 20 years. SoFi charges no origination fees, prepayment penalties or late fees. Borrowers can take out up to the full cost of attendance, as certified by the school, minus any other financial aid received. SoFi offers several repayment plans: SoFi goes beyond traditional student lending and offers a range of perks, such as: Like any private lender, SoFi has its strengths and trade-offs SoFi offers a 7-day-a-week customer support via phone, email or live chat. It also has an A+ from the Better Business Bureau (BBB), highlighting its intuitive online platform. To apply for a SoFi loan, you'll first have to get prequalified with a soft credit check. From there, you'll: While SoFi offers flexible terms and valuable perks, many of the same benefits can also be found with Earnest, which provides a wide range of loan terms and amounts — from $1,000 up to the full cost of attendance, or $5,000 to $550,000 for student loan refinancing. Earnest also offers a nine-month grace period, which is three more months than what most lenders offer before repayment begins. Undergraduate and graduate students, parents, half-time students, international and DACA students Undergraduate, graduate loans, parent loans, MBA, medical school, law school, international and DACA student loans $1,000 up to the cost of attendance for new loans, $5,000 to $550,000 for refinance loans 5, 7, 10, 12, 15 years Nine-month grace period available No Yes - click here for details Terms you're looking to apply without a co-signer, Ascent is another strong option. It offers loans to borrowers without established credit or a co-signer by evaluating alternative factors such as your school, program, expected graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress. 3.09% to 15.61% APR with autopay discount (undergraduate new loan). Other rates and loan types are available. Visit Ascent's website for full details. Undergraduate and graduate loans, MBA, medical school, dental school, law school, doctorate and Master's, health professional loans. $2,001 up to $200,000 for undergraduate loans and $400,000 for graduate loans 5, 7, 10, 12, 15, 20 years Deferment and forbearance options available For DACA recipients and non-U.S. citizens or permanent residents No Terms apply. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
