SoFi Just Posted Another Quarter of Fast Growth. What Has to Happen Next for the Stock to Follow?

In an industry dominated by global money-center financial institutions, SoFi Technologies (NASDAQ: SOFI) keeps proving to investors that it has successfully carved out a niche. The online bank's momentum isn't letting up, despite the uncertain macroeconomic environment. It reported adjusted net revenue of $1.2 billion during the second quarter, up 40% year over year. And for all of 2026, management expects this top-line figure to be 32% to 35% higher than in 2025. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " This flourishing business continues to maintain its impressive growth trajectory. But what has to happen next for the fintech stock's price, which is down 30% in 12 months (as of Sept. 2), to follow? Image source: Getty Images. Financial results are the envy of the industry Shareholders have every right to be upset that the stock hasn't done well during the past year. The fundamentals have been very encouraging, so there is a disconnect between the market's perception and how the actual company is faring. SoFi's top line has been buoyed by a budding customer base. The business now has 15.8 million customers, rising almost 16% from the end of 2025. These younger and more affluent individuals come to SoFi's platform because of its compelling product and service offerings. They also appreciate the tech-enhanced user experience. Over time, the company's ability to cross-sell to its customers is enhanced. This drives stickiness, meaning customers are reluctant to face the inconvenience of taking their business elsewhere. And it increases the lifetime value of its client base, supporting a competitive advantage. Revenue growth has translated into superb profit gains as well. It wasn't that long ago when SoFi was consistently losing money each quarter. However, the digital banking powerhouse has evolved into a highly profitable business. Adjusted net income jumped 65% year over year to $160 million in Q2, lifted by operating leverage that comes from greater scale. The leadership team believes that adjusted earnings per share will rise between 38% and 42% from 2025 to 2028. Controlling risk will win over the investment community SoFi shares reached their all-time high in November 2025. In the three years leading up to this peak, they soared 441%. The stock has taken a beating since, as it now trades 45% off that record. This disappointing performance has happened even though the company is still firing on all cylinders. The market is clearly concerned about something. In my view, I believe it's a risk factor that isn't specific to SoFi, but something all banking entities have to deal with: credit risk. SoFi has been growing in remarkable fashion. Every investor loves to see it. However, with rapid expansion comes heightened risk that lending standards are being loosened to satisfy the robust demand from borrowers. Personal loan originations totaled $10.7 billion during the second quarter, up 54% year over year and accounting for 72% of the total. These products represent the biggest loan category on the balance sheet. They are riskier loans to make that carry high monthly payments, raising the chances that borrowers will run into trouble should economic conditions deteriorate. I believe this is what investors are worried about. Missed payments can eventually lead to loan losses. This would directly hit SoFi's income statement. On the other hand, though, approving more personal loans is a rational strategy for the management team to embark on. SoFi ended Q2 with $45.5 billion in deposits. This gives it a low-cost and stable source of funding that it can lend out to borrowers, earning net interest income in the process. And these loans have been performing well. "Excluding the impact of delinquent loan sales, the estimated all-in annualized net charge-off rate was 3.7%," Chief Financial Officer Chris Lapointe said on the Q2 2026 earnings call. For the stock price to steadily rise in the hopes of reaching a new record, all SoFi needs to do is continue reporting stellar financial metrics. With each quarter of upbeat results, the market's confidence in the business will grow. Should you buy stock in SoFi Technologies right now? Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoFi Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,334,577!* Now, it's worth noting Stock Advisor's total average return is 966% -- a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of September 3, 2026. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SoFi Just Posted Another Quarter of Fast Growth. What Has to Happen Next for the Stock to Follow?

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