3 Reasons SOFI Stock Is Going To Crush the Rest of 2025

SoFi Technologies (NASDAQ:SOFI) is a financial services and technology company that sells services through its online platform. The stock is up over 132% over the past year, but it is up only 7.6% year-to-date. However, the rest of 2025 could be much better for SOFI stock if we extrapolate current trends and expectations. Let’s take a look at the three main reasons why the stock could continue delivering solid gains this year.

Rate Cuts

SoFi Technologies derives most of its revenue from lending. In FY 2024, its “Lending” segment constituted 55.5% of all operating revenue and brought in $1.5 billion. The second-biggest business was Financial Services at 30.7%, followed by Technology Platform at 14.8%.

The Financial Services segment has been the fastest grower here since this is the linchpin of SoFi’s aim of becoming the one-stop shop for all things finance. Regardless, the Lending segment could regain momentum once more.

Interest rate cuts would be the biggest positive catalyst here. SoFi would definitely see a reduction in net interest income if interest rates go down, but the increase in demand should offset that and then some. SoFi Technologies saw huge success during the ultra-low interest rate regime, and the Lending business saw its revenue jump from $480.9 million to $738.3 million in one year, from 2020 to 2021.

Of course, it is unlikely that interest rates would go to those levels anytime soon, but even a small decrease in rates will be a net positive for SoFi. There are many consumers who have been waiting for interest rates to come down before borrowing. This pent-up demand for borrowing could return in earnest once the Federal Reserve starts seriously cutting rates.

The market is currently pricing in a September rate cut, followed by another rate cut as early as October or November. An interest rate cut could come even earlier due to significant pressure from the Trump administration and the data showing that inflation has continued to go down despite tariffs.

The Booming Financial Services Segment

As I said before, the Financial Services segment has been booming, despite the higher interest rates. Lower rates could cause the growth to accelerate even more. Even if rate cuts don’t come, the momentum is unlikely to be dampened.

The revenue from this segment has grown from $436.5 million in 2023 to $821.5 million in 2024. In 2020, the revenue from this segment was at a measly $11.9 million. This segment is expected to become SoFi’s largest due to the breadth of its financial services ecosystem. It includes SoFi Money, SoFi Invest, and the SoFi Credit Card. Q1 2025 alone saw this segment post $303 million in revenue.

SoFi expects this segment’s revenue to grow by 60% to 65% this year. You should keep in mind that this is high-margin revenue, and Wall Street loves businesses that can pull off high sales growth with double-digit margins. The contribution margin here was 49% in Q1, up from 25% in 2024. Companies with margins half as high and revenue growth around 20% to 30% trade well above 10 times sales on the market.

Right now, investors are paying a bit over 6 times sales for SOFI stock. This is mainly due to the Lending segment making SoFi’s overall growth look worse, but Wall Street is quickly realizing the potential. The Financial Services segment on its own may have been worth around $10 billion to $15 billion (for context, all of SoFi is now valued at $16.72 billion) if it traded as a standalone business. The numbers here are nothing but stellar.

Wall Street Also Loves Upward Momentum

SoFi Technologies has been beating analyst estimates and has been increasing its guidance figures quite routinely. It has beaten every single revenue and EPS estimate in the past year, and it has also upped its guidance recently.

In Q1, it expects net revenue of $3.235 billion to $3.31 billion for all of 2025, compared to an earlier guidance of $3.2 billion to $3.275 billion. Management also upped its EBITDA guidance to $875 million to $895 million vs. a prior guidance of $845 million to $865 million.

These expectations are based on an interest outlook “consistent with the forward curve and just north of 1.5 rate cuts,” GDP growth of 1% to 2%, and an unemployment rate in the 5% range. It’s quite realistic, and perhaps even a bit conservative if you take recent statements from the Fed into account. Fed Governor Waller said that interest rates could be cut as early as July, though that’s unlikely. Still, this reinforces the idea that the Fed will make do on its promise of implementing two rate cuts this year.

The macroeconomic figures have been strong so far, so there is a good chance that SoFi will increase the guidance more. All of these reasons are why SOFI stock should see a blockbuster 2025, barring a sudden recession, of course.

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