SoFi: Execution Makes It A Buy Again (Rating Upgrade)

Joseph Parrish3.5K FollowersFollow5ShareSavePlay(10min)CommentsSummarySoFi has demonstrated strong execution, growing net revenue from $2.7B in 2024 to $3.6B in 2025 and expanding its product suite.I see 2025 as a pivotal year, with robust segment growth, especially in financial services, and member count rising from 10.1M to 13.7M.Management guides for a 30% net revenue CAGR and 38–42% EPS CAGR through 2028, targeting $1.5B in near-term earnings and $3B longer term.Despite unsecured loan risk, SOFI's innovation and diversified fee-based revenues justify my upgrade to Buy, with a long-term target of $45 per share. natatravel/iStock via Getty Images SoFi (SOFI) released full-year 2025 results recently. I revisited this stock to catch up and because I've seen a lot of discussion about the quality of its loans. I felt more positive, though, so I am hereThis article was written byJoseph Parrish3.5K FollowersFollowI analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. This brought me to study value investing, in order to grow wealth with risk management in mind.From 2020 to 2022, I worked in a sales role at a law firm. As the top-grossing salesman, I eventually managed a team and contributed to our sales strategy. I spent much of my free time reading books and annual reports, steadily building my vault of knowledge about public companies. This period has since been useful in helping me assess a company's prospects by its sales strategy. I particularly get excited when the product seems to sell itself.From 2022 to 2023, I worked as an investment advisory rep with Fidelity, primarily with 401K planning. My personal study before that allowed me to pass my Series exams two weeks ahead of schedule, and I once again found myself excelling at the job. I learned a few useful things from this more formal setting, but my main frustration was that I was still a value investor, and Fidelity's 401K planning was based on modern portfolio theory. Lacking a way to change positions internally, I chose to walk away after a year.I gave writing for Seeking Alpha a try in November of 2023, and I've been here since. As I spent those years saving aggressively and building up my base of capital, I also actively invest now. My articles are how I share the opportunities that I seek for myself, and my readers are effectively walking this road alongside me.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.