Valued at a market cap of US$28 billion, SoFi (NASDAQ:SOFI) is among the hottest stocks in 2025, returning almost 240% over the past 12 months.
SoFi is a digital financial services company operating as a one-stop shop platform across lending, banking, and investing. It offers personal loans, student loans, mortgages, checking/savings accounts, investment services, credit cards, and insurance products to help members “get their money right,” while also providing technology platforms to other financial institutions.
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Is SoFi stock a good buy right now?
SoFi delivered exceptional second-quarter (Q2) results that demonstrate the power of its diversified financial services platform and position it as an attractive investment opportunity.
In the June quarter, SoFi achieved record financial performance across key metrics, with adjusted net revenue surging 44% year over year to US$858 million, the highest growth rate in over two years. More importantly, SoFi’s shift toward capital-light, fee-based revenue streams is accelerating, with non-lending businesses generating US$472 million in revenue, up 74% year over year and now representing 55% of total revenue.
The standout performer was SoFi’s Loan Platform Business (LPB), which generated US$2.4 billion in originations during the quarter, up 57% sequentially. This business is now running at an annualized pace of over US$9.5 billion in originations and US$500 million in high-margin fee-based revenue, larger than SoFi’s original student loan refinancing business and approaching US$1 billion in annual revenue potential.
SoFi’s member acquisition engine remains robust, adding a record 850,000 new members in Q2 for 34% year-over-year growth to 11.7 million total members. The cross-selling strategy is working effectively, with 35% of new products opened by existing members, driving superior unit economics and lifetime value.
Management raised full-year guidance significantly, now expecting approximately US$3.375 billion in adjusted net revenue (30% growth) and US$960 million in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).
Analysts tracking SoFi stock forecast revenue to rise from US$2.6 billion in 2024 to US$5.6 billion in 2029. In this period, adjusted earnings are projected to expand from US$0.15 per share to US$0.95 per share.
If SOFI stock is priced at 40 times forward earnings, which is reasonable, it should trade around $38 in early 2029, indicating an upside potential of over 60% from current levels.
Is this TSX stock a better buy than SoFi?
While SOFI stock has crushed broader market returns, Propel (TSX:PRL) is a Canada-based fintech company that is flying under the radar. Part of the financial lending segment, Propel offers installment loans and lines of credit to consumers. The company went public in October 2021 and has since returned 172% to shareholders.
Despite these outsized gains, the TSX stock trades at a compelling forward price-to-earnings multiple of just 9.1 times. Comparatively, adjusted earnings are forecast to expand from US$1.64 per share in 2024 to US$3.84 per share in 2027.
A widening earnings base should also enable the fintech company to increase the annual dividend per share from US$0.40 in 2024 to US$0.98 in 2027.
If PRL stock trades at 15 times forward earnings, it could gain over 100% over the next 12 months. Given consensus price target estimates, the TSX stock trades at a discount of 37% in August 2025.
