Could Buying SoFi Stock Today Set You Up for Life?

Key Points

• SoFi's lending business is back and booming as interest rates go lower.

• Its non-lending services are growing even faster and offer greater opportunities.

• The company is launching innovative products that are getting the market excited.

• 10 stocks we like better than SoFi Technologies ›

SoFi Technologies (NASDAQ: SOFI) has emerged as a real player in online banking, offering value for customers through competitive savings rates and innovative products. Its stock has reflected that, and it's up more than 200% over the past year alone. Is it just getting started? Let's see if SoFi stock can set you up for life.

Banking for beginners

SoFi is one of a group of all-digital banks that got started a few years ago and are gaining traction as a real alternative to the traditional banking system. SoFi started off as a lender, and that's still its core business. But it made a prescient decision to get a full banking charter a few years ago, and it's benefited from higher interest rates over the past few years, with increasing net interest income that has helped it turn a robust profit.

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That decision also opened up a world of new opportunities as it has expanded its platform to offer a large assortment of products and services for its customers, and it has helped it stand out from the increasingly crowded space of online banking.

Image source: Getty Images.

The company has made many smart moves over the years, leaning into its target market of students and young professionals and offering products that suit them. It also has a strong focus on the user experience, and its app is easy to use. This makes what could be a daunting foray into financial management more pleasant for young individuals who are just getting their feet wet in the system.

All of this has culminated in excellent performance quarter after quarter. In the 2025 second quarter, adjusted net revenue increased 44% year over year. SoFi added a record 850,000 new members to end the quarter with 11.7 million, a 34% increase year over year. Adjusted earnings per share increased 700% from $0.01 last year to $0.08 this year.

More than loans

Although SoFi has benefited from high interest rates on its deposits, the flip side of that has been slower loan originations and higher default rates. That's how banking works. As interest rates come down, SoFi is benefiting from higher loan originations and lower default rates.

Lending product increased 28% over last year in the second quarter, with strength across personal, home, and student loans. Revenue increased 30%, and contribution profit was up 24%. Originations increased 64% year over year to a record $8.8 billion.

But the financial services segment, which comprises all the non-lending products outside of the tech platform segment, continues to drive the highest growth. Financial services products increased 35% in the quarter, and revenue more than doubled, again. Contribution profit increased 241%.

If interest rates get cut again this month, which Fed Chairman Jerome Powell has indicated would happen, SoFi is likely to maintain its performance and potentially accelerate its growth as economic activity ramps up.

Banking for the future

SoFi knows its customers, and it knows its place in the banking landscape. Its edge is in its ability to provide something different from the traditional banking platform that offers meaningful value for its user base.

It got accolades from the market when it announced it's bringing back cryptocurrency trading to its platform, and it has followed up on that by announcing instant international money transfers through a blockchain network. It's partnering with LightSpark to convert funds to Bitcoin, which then gets converted to local currency. The transfers will happen in the SoFi app, and it's set to launch later this year.

The market has been enthusiastic about SoFi as it keeps innovating with new services. While it already has a sizable portion of its target market, it has solid opportunities to monetize this base with its expanded services. It's also a market that's growing in its financial journey, and its customers' lifetime value is likely to increase enormously.

SoFi is just getting started, and although I wouldn't count on any stocks setting you up for life, SoFi stock could be a fantastic growth addition to a diversified portfolio that could help you become a millionaire.

Should you invest $1,000 in SoFi Technologies right now?

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Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.