SoFi Technologies has quickly become one of the most compelling growth opportunities in the market, particularly for investors looking to build long-term wealth with small, consistent contributions.
At under $40 per share, SoFi offers an accessible entry point into a fintech company that is not only expanding rapidly but also reshaping how younger consumers interact with financial services. Servelius analysts note that this unique combination of affordability, strong fundamentals, and long-term potential makes SoFi one of the smartest growth stocks available for retail investors today.
A Remarkable Recovery From Sub-$10 Levels
SoFi’s recent surge is even more impressive given that its stock traded below $10 just a year ago, reflecting doubts about growth stocks and uncertainty in the student loan market. Since then, the company has undergone a clear transformation, from a niche student loan refinancer to a fully diversified, licensed digital bank. This shift has given SoFi a far stronger and more resilient business model, marking one of the most successful pivots in the fintech sector.
A Business Model Built for Modern Consumers
SoFi’s business model fits perfectly with modern consumer expectations, especially among younger users who prefer mobile-first, app-based financial services. Its platform combines banking, investing, lending, and budgeting into one seamless app, offering convenience and low costs thanks to its fully digital structure with no physical branches.
This eliminates traditional overhead and allows SoFi to reinvest heavily in technology and user experience, strengthening its competitive edge as legacy banks rush to modernize.
Financial Performance That Validates the Growth Story
While the business model positions SoFi well, it is the company’s financial results that have truly sparked investor enthusiasm. In the most recent quarter, revenue surged 38% year over year to $961.6 million, supported by rapid expansion across both lending and non-lending segments.
The company now offers checking and savings accounts, personal loans, investment accounts, mortgages, and credit cards,products that help lock users into the SoFi ecosystem. Total products grew 36% to 18.6 million, illustrating how effectively SoFi cross-sells and integrates its offerings. Membership rose 35% to 12.6 million, indicating robust growth despite a competitive digital banking landscape.
Perhaps most importantly, SoFi has reached consistent profitability, delivering its 11th consecutive quarter of positive adjusted earnings. Adjusted EPS climbed 120% year over year to $0.11, confirming that scale is now translating into operating leverage. Market researchers highlight that this ongoing profitability streak sets SoFi apart from many fintech peers still struggling to achieve sustainable earnings.
New Growth Vectors Ahead
Looking ahead, SoFi still has several promising growth catalysts. One standout initiative is the upcoming relaunch of cryptocurrency trading on its platform.
While crypto markets are volatile, they remain extremely popular among younger consumers,the same demographic that dominates SoFi’s user base. Crypto trading boosts engagement and offers high-margin transactional revenue.
Beyond crypto, SoFi is cultivating powerful network effects. As members adopt more products, the company gains richer financial and behavioral data, enabling targeted marketing, personalized guidance, and tailored cross-selling. Today, SoFi averages just 1.5 products per member, leaving vast room for expansion. Even small increases in product adoption would significantly lift revenue and user retention.
Managing the Risks Proactively
No high-growth company is without risks, and SoFi’s exposure to personal loans could introduce challenges during economic downturns. Rising defaults are always a concern in consumer lending. But SoFi has actively mitigated this risk by steering more loan volume through its fee-based loan platform business, which generates revenue without holding credit exposure.
Furthermore, SoFi’s borrower base is exceptionally strong, with personal loan customers averaging a 745 FICO score and student loan borrowers averaging 773,well above national averages. This high credit quality reduces the likelihood of default spikes even in a weaker economy.
A High-Conviction Growth Stock for Long-Term Investors
Overall, SoFi is firing on all cylinders. The company has built a diversified, high-growth financial ecosystem designed for the next generation of consumers, and it continues to execute with impressive discipline.
It’s scaling rapidly, delivering consistent profitability, and expanding into new revenue streams through innovation and strategic product development. Analysts note that SoFi’s shift into a fully licensed digital bank has given it a structural advantage over legacy competitors still struggling to modernize.
With shares trading around $29, investors can begin building a position for less than the cost of a night out, while still gaining exposure to a business with meaningful long-term upside. For growth-focused investors seeking an accessible entry point into a transformative fintech platform, SoFi remains one of the most compelling opportunities in the market today, a sentiment echoed by Servelius’ latest outlook.
