SoFi (SOFI): Is Rapid Growth and Raised Guidance Justifying Its Current Valuation After Q3 Earnings?

SoFi Technologies (SOFI) delivered a strong third-quarter earnings report, posting substantial gains in both revenue and net income. The company also raised its full-year outlook, which underlines growing confidence in future performance.

See our latest analysis for SoFi Technologies.

After rallying sharply over the past year, SoFi Technologies has cemented itself as a standout in the fintech world. Its 1-year total shareholder return of 157.18% and 3-year total return of 475.88% speak volumes. Momentum has accelerated lately as product launches and membership growth drive enthusiasm, even as the share price pulled back 4.11% in the past day following the earnings release.

If SoFi's breakout year has you curious about what else is thriving in tech and finance, now’s the ideal time to explore See the full list for free.

After such a rapid climb and a wave of innovation, is SoFi Technologies still undervalued given its fast growth and new offerings, or has the market already priced in its ambitious outlook and future gains?

Most Popular Narrative: 109.8% Overvalued

At $29.37, SoFi Technologies trades at more than double the narrative’s fair value calculation, hinting at bold optimism behind the current market price. This divergence invites a closer look at the assumptions powering the narrative’s view.

"SoFi Technologies (NASDAQ: SOFI) delivered another record-breaking quarter, showing it is no longer just a fintech disruptor; it is a fully scaled digital financial institution. For Q3 2025, the company posted record GAAP net revenue of $962 million, up 38% year-over-year, and adjusted net revenue of $950 million."

Read the complete narrative.

Ever wondered what kind of financial leap supports this ambitious valuation? The narrative builds on a vision of soaring top line performance, next-level profitability, and member growth numbers that would rival the biggest names in tech. Hungry for the details that set this fair value so far apart from the market? There are surprising benchmarks and bullish future assumptions waiting to be explored.

Result: Fair Value of $14.0 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure and intense fintech competition could quickly test the extent of optimism embedded in SoFi's current valuation.

Find out about the key risks to this SoFi Technologies narrative.

Build Your Own SoFi Technologies Narrative

If this perspective doesn't match your own, or you want to dig into the numbers yourself, you can build your own narrative in just minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding SoFi Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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