$SoFi Technologies Inc.(SOFI)$ is down 38% this year!
Yet, I am still bullish!
Here are 5️⃣ simple reasons why:🧵
1/ Members are exploding
1.2M added in Q3, a record.
17.1M total, +35% Y/Y.
51% of new products now come from existing members, which makes every new dollar of growth cheaper.
Sofi members, products and products per member through Q3 2026
2/ Profits are growing faster than revenue
Revenue +44%.
ADJ EBITDA +70%.
EPS +64%.
46 cents of every new revenue dollar turned into EBITDA.
Sofi adjusted EBITDA and margin by quarter through Q3 2026
3/ Credit keeps getting better
Personal loan charge-offs fell to 2.26% from 2.60%, while originations grew +71%.
Bears predicted the exact opposite.
Sofi net charge-offs by quarter through Q3 2026
4/ The dilution story is over
The 2027 guide needs no capital raise and implies about 3% more shares.
EPS is guided +48%.
Sofi diluted shares outstanding versus diluted EPS by quarter
5/ The stock is priced for failure
18x 2027 EPS after 12 straight revenue beats.
Analysts see $20.97. My fair value is $40+
Sofi forward P/E history
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments