$SOFI is a steal at $6.60. Here's 5 reasons to own $SOFI

1/ STRONG MOAT

$SoFi Technologies Inc.(SOFI)$ are building a one-stop-shop for all financial services and it's clearly working. If they add just 613k members in both Q3 and Q4 they'll be at 10 million members which is a huge milestone. This growth is testament to $SOFI's brand and execution over the last 3-4 years. Members are flocking to $SOFI at rates not seen in any other financial institution.

2/ FINANCIAL SERVICES SEGMENT

7 years ago, 99% of $SoFi Technologies Inc.(SOFI)$ revenue came from only lending...today that figure is 57% which shows just how diversified the business is becoming. The financial services segment grew 80% YoY with a 129% YoY increase in debit spend. The best part of this segment is that it's a very fixed cost business with limited variable costs. With revenue growth comes huge profit potential.

3/ VALUATION

A $SoFi Technologies Inc.(SOFI)$ has a price to book value of 2.0x compared to it's 3 year average of 2.24x. Price to book value is typically used to value banks, but you can't say that $SOFI is just a bank now with a huge tech segment.

Further, $SOFI has a 2025 EV/Sales ratio of 2.8x and a 2025 EV/EBITDA of 9.07x. Both appear very low for a company with grow in the mid 20s CAGR and a segment growing at 80% YoY. If you attach a PE multiple of 30x to 2026 EPS estimates you get a stock price of $14.4 which isn't unreasonable at all.

4/ LENDING SEGMENT

Management have been very conservative with the lending segment keeping a capital ratio of 17% (ahead of 10% minimum). They've clearly stated that they're waiting for macro conditions to settle more before they really flood investment into further growing this segment. Despite this prudence, we saw: - 71% increase in home loans - 12% increase in personal loans - 86% increase in personal loans We are also entering Q3 which is historically the best time for student loans as students head back to school.

5/ TECH SEGMENT

The tech segment was the most meh part of the entire earnings report for me because we were yet again given little to no information on the segment despite the slower growth. However, as management said they are trying to create the AWS for not just fintechs, but the financial services industry as a whole. They already has $Robinhood(HOOD)$ and $Toast, Inc.(TOST)$ as customers.

From my research, I believe the product (Galileo) is excellent, however, the integration cycle is extremely long and therefore revenue recognition does take a long time. I think this one is a waiting game.