To The Moon

🌟🌟🌟The name SoFi $SoFi Technologies Inc.(SOFI)$   stands for Social Finance.  Established in 2011, SoFi's mission is to empower its members to talk about money so that everyone can all learn from each other and celebrate the journey to become financially independent.  

As of 2024, SoFi serves 8.8 million customers and 158 million platform accounts.   SoFi is a member centric one stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money. 

SoFi's share price has jumped 11.4% on Monday and on track for its largest daily percentage increase since January this year.  The exciting news is that SoFi has signed  a huge USD 2 billion pact for personal loans with funds managed by affiliates of investment manager Fortress Investment Group. 

This is a game changer as the agreement will expand SoFi's capabilities in its loan platform business where SoFi refers prequalifed borrowers to loan origination partners.  SoFi will also originates loans on behalf of 3rd parties too. 

According to CEO Anthony Noto, SoFi's loan platform business is an important part of its strategy to serve the financial needs of more members and diversify towards less capital  intensive and more fee based sources of revenue. 

Is it time to buy SoFi? 

Let's look at its latest Q2 2024 financials to determine if SoFi is doing well. 

SoFi reported a Net Revenue of USD 599 million and Net Income of USD 17 million in its latest quarter, marking its 3rd consecutive quarter of GAAP Profitability. 

SoFi's Financial Services and Tech Platform segments now make up a record 45% of SoFi's adjusted net revenue, up from 38% a year ago and 32% 2 years ago.  In Q2 24, these 2 segments grew revenue by a combined 46% year over year. 

SoFi 's Total GAAP net revenue of USD 598.6 million increased 20% compared to previous year quarter of USD 498 million.  Q2 24 adjusted EBITDA of USD 137.9 million, a 23% margin, increased 80% from the same prior year period of USD 76.8 million.  This equates to a 56% incremental adjusted EBITDA margin, with all 3 segments profitable on a contribution basis. 

SoFi's Net Interest Income of USD 412.6 million for Q2 24 was up 42% year over year and up 2% sequentially.  Net Interest Margin of 5.83% was up from 5.74% in the prior year quarter. 

New member additions were over 643,000 in Q2 24 and total members reached almost 8.8 million or 41% from the prior year period. 

Product additions were over 946,000 in Q2 24 and total products were nearly 12.8 million, up 36% from 9.4 million at the same prior year period. 

Performance wise, SoFi has risen 20% in the past 5 days  and 24% in the past month.  SoFi is up 4% year todate and in 2023, SoFi has risen by 21.7%.

I have just started to invest in SoFi in August and very happy with its excellent performance.  I like SoFi's continuous product innovation and brand building which contributed significantly to its growing memberships.   Most importantly, SoFi 's mission to help people reach financial independence aligns with my goal of FIRE - Financial Independence Retire Early.  Since its inception in 2011 SoFi has made a big impact on the Fintech sector with products that offer the speed, selection, content and convenience that only an integrated digital platform can provide. 

That is why SoFi is soaring and that is why SoFi is a Buy for me. 

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