SoFi Investment Thesis: Part 2!
Loan Platform Business, Crypto and SofiUSD Stablecoin.
Since I published my Sofi Investment Thesis article on 28, May 2025, the stock has increased by 90%!
This strong performance was not driven by hype, but rather by the company executing on all its objectives perfectly.
Revenue growth accelerated to 38%
Adjusted EBITDA grew by 49%
EPS grew by 100%
Members grew by 35% to 12.6M
Lending volumes jumped 57%
In my opinion, Sofi is a transformational fintech with a decade-plus roadmap for strong growth.
JPMorgan Chase, the largest bank in the US, has over 5,000 retail bank branches.
Wells Fargo has over 4,000.
Bank of America has over 3,000.
Meanwhile…..Sofi has 0 bank branches!
The old-style traditional way of doing banking is over. GenZ and Millennials are demanding affordable, convenient, and easy-to-use financial services, and Sofi is providing just that.
Recently, Sofi CEO Anthony Noto said he believes Sofi could become a $1T market cap company!
This is a highly ambitious long-term goal for a company with a market cap of $32.5B. So far, the company has executed spectacularly in the last 3 years, driven by the release of highly successful offerings.
As you can see in the graph above, Financial Services revenues have more than tripled in less than 2 years!
Just recently, Sofi entered a segment that has the potential to be even larger than the financial services segment, and that is Crypto.
In this Sofi update, I will look at the incredible performance of Sofi’s Loan Platform Business and the strategy Sofi is using to build a large and highly profitable Crypto business. (Stablecoins).
As always, I will finish with a valuation analysis and a new 2030 Valuation Model.
Let’s begin.
1. Loan Platform Business
2. Crypto
3. Trump’s 10% Interest Rate Limit
4. Valuation
5. Valuation Model
6. Conclusion
1. Loan Platform Business
In my May report, I talked about how the Loan Platform Business (LPB) has been an outstanding innovation for the company.
A quick refresher on how this segment works.
1. SoFi raises billions of dollars from credit investment funds.
2. A SoFi customer applies for the loan in the app.
3. Sofi evaluates the application to see if it meets the LPB credit investor requirements.
4. If approved, the loan is funded by the credit investor.
5. The loan is managed by Sofi through the Sofi App.
6. The customer doesn’t even know who funded the loan.
7. Sofi keeps the customer relationship and collects origination and servicing fees.
8. As Sofi bears no credit default risk and doesn’t provide funding, it incurs limited expenses to generate these loans, making the LPB fees incredibly profitable.
“Sofi has a problem that many fintechs would wish to have, they have more loan applications than they know what to do with. Other fintechs or financial institutions would lower their lending standards to finance these applications, however, Sofi has very strict risk management policies, and they are not willing to do so. Nevertheless, Sofi has figured out multiple ways to monetize these requests, without incurring higher risk, whilst simultaneously increasing margins!” Sofi Investment Case, Ray Myers, Global Equity Briefing