SoFi: Great Quarter, But I'm Pausing Accumulation (Rating Downgrade)

  • SoFi delivered a strong Q2 2025 report yesterday, handily beating revenue and EPS estimates, with robust growth in fee-based revenue and member additions. Management raised 2025 guidance, projecting 30% revenue growth and higher EPS, reflecting ongoing business momentum and product innovation. Despite impressive fundamentals, a recent stock rally has shifted SoFi's risk/reward. With its 5-year CAGR slipping below my hurdle rate, I rate SoFi a 'Hold' in the $20s, pausing accumulation.