SoFi Stock Audit: 18/30 After a 12-Month Low

Why did SoFi stock just hit a 12-month low?

SoFi Technologies shares fell 6.7% on Wednesday, October 14, 2026, and closed at $14.22, the stock's lowest close of the past 12 months. It was the online finance company's biggest one-day move in 10 sessions, and it came right before earnings on Tuesday, October 27, 2026. So this is a good moment to audit the whole business.

The stock dropped another 3.58% on Friday and closed at $14.55 as of the close on Friday, October 16, 2026. That's down 45.3% over the past year, and less than half the $32.21 high close from November 12, 2025.

The headlines have turned skeptical. On October 18, 2026, Simply Wall Street asked whether profit growth concerns just shifted the SoFi investment narrative, and ad-hoc-news.de reported the same day that Keefe Bruyette Woods cut its target to $15.00. Not everyone's bearish, though: StoneX initiated coverage at Buy on October 13, 2026.

What does the SoFi Stock Audit score look like?

SoFi scores 18/30 on the Chart Equity Stock Audit, a B grade that the audit labels "Solid, Monitor." That's solid but not exceptional. The audit found 3 strengths, 2 concerns and 1 potential red flag, with module scores running from 5/5 on valuation down to 1/5 on capital allocation.

Audit module	Score
Revenue Strength	4/5
Profitability	2/5
Balance Sheet Safety	4/5
Competitive Advantage	2/5
Valuation vs Growth	5/5
Capital Allocation	1/5

That spread sums up the debate. The business is growing fast and the price isn't demanding, but returns on capital are thin and shareholders have paid for the growth through dilution. Our guide to the 30-minute stock audit framework explains each module, and you can run the full SoFi Stock Audit to see every check.

How fast is SoFi growing?

Very fast, and consistently. Revenue went from $1.09 billion in 2021 to $4.77 billion in 2025, a compound annual growth rate of 44.7% over four years, and it rose every single year. The latest quarter grew 42.6% from a year earlier, according to Yahoo Finance's summary data.

The path matters, though. Revenue grew 62.1% in 2022 and 64.4% in 2023, then cooled to 27.8% in 2024 and 28.8% in 2025. That slowdown is why Revenue Strength gets a 4 and not a 5. Look for the steady climb, with no down year anywhere in the run.

That quarterly 42.6% is the interesting part. If a similar pace shows up in the next report, the "growth is slowing" worry gets a lot weaker.

Is SoFi actually making money?

Yes, but it looks messier than the growth suggests. Net income was $481.3 million in 2025, down 3.5% from $498.7 million in 2024, even though revenue grew 28.8%. Diluted EPS was $0.39 in both years, and net margin fell from 13.5% to 10.1%.

Now look at where that came from. Operating income more than doubled, from $233.3 million in 2024 to $525.9 million in 2025, and operating margin rose from 6.3% to 11.0%. In 2024, net income was more than twice operating income, so something below the operating line lifted that year, and the income statement summary doesn't say what. Big difference: the core business got more profitable while the bottom line faced a tough comparison.

The trailing 12 months look better again, with an operating margin of 17.0% and a net margin of 14.9%. Watch for the swing from years of losses into profit.

The weak spot is returns. The audit puts return on equity at 7.1%, below the 8% benchmark for a healthy bank and far from the 15% of a top-tier lender. That's why Profitability and Competitive Advantage both score 2/5. Our guide to return on equity explains why lenders get judged so heavily on this ratio.

Why is SoFi's free cash flow so negative?

Free cash flow was -$3.98 billion in 2025, a margin of -83.5%, and it's been negative in each of the last five years. For a lender, that isn't automatically the alarm it would be for a software company, because new loans can flow through operating cash flow. But it means the cash flow statement can't back up the earnings on its own.

The swings are big. Free cash flow was -$7.36 billion in 2022, improved to -$1.28 billion in 2024, then widened again in 2025. Our guide to free cash flow covers how the metric is built.

How strong is the balance sheet?

Stronger than it used to be. At the end of 2025, SoFi held $7.36 billion in cash and short-term investments against $1.93 billion of total debt, net cash of $5.43 billion. Debt-to-equity fell to 0.18.

Standard leverage ratios don't fit lenders well, so the audit's 4/5 rests on assets covering liabilities 1.26x and a growing cash balance. Yahoo Finance's latest quarterly figures show $3.37 billion of cash against $3.42 billion of debt, a different measure but one to check against the next report.

How much has dilution cost SoFi shareholders?

A lot. Diluted weighted shares went from 526.7 million in 2021 to 1.25 billion in 2025, a 137.6% increase. The audit's red flag looks at the recent stretch, where the share count grew 39% over three years, or about 12% a year. That's why Capital Allocation scores 1/5.

Here's the thing. Shareholders' equity jumped from $6.53 billion to $10.49 billion in 2025 while the share count went from 1.1 billion to 1.25 billion. The balance sheet got stronger, but EPS stayed at $0.39. Buybacks of $65.0 million barely dent that, and with return on invested capital at -1.8%, the new capital isn't yet earning its keep.

Is SoFi stock cheap at $14.55?

On forward estimates, it looks reasonable. At Friday's close SoFi traded at 29.7x trailing earnings but 17.6x forward earnings, and the audit's PEG ratio of 0.51 earns a perfect 5/5 on valuation. Price-to-sales is 3.4x on trailing revenue of $4.27 billion.

That score leans heavily on one estimate. Forward EPS of $0.82 is about 67% above trailing EPS of $0.49, and each of the last four quarters came in between $0.11 and $0.13. If the step up happens, the stock looks inexpensive for its growth. If it doesn't, 29.7x isn't cheap.

Analysts' average target of $20.36 is about 39.9% above the share price, based on 23 analysts, though targets came under pressure in mid-October.

What's the bull case and the bear case for SoFi?

The bull case is growth at a modest price: 44.7% compound revenue growth, four straight earnings beats and a PEG of 0.51. The bear case is that per-share results haven't kept up. The share count grew 137.6%, net margin slipped to 10.1% and short interest sits at 16.9% of the float.

The bull case

Operating income more than doubled in 2025, and trailing margins are above the full-year figures. If revenue keeps growing near 42.6% and share issuance slows, EPS finally has room to catch up.

The bear case

The stock is down 55.5% from its 52-week high of $32.73, and its beta of 2.33 means it has historically moved more than twice as much as the market. ROE is still under the audit's benchmark for a healthy bank.

What would change the thesis?

Two things. Revenue growth falling well below the 45% historical pace would knock out the strongest leg of the story. And if the share count keeps growing at double digits, EPS stays stuck no matter how fast revenue climbs.

What's next for SoFi stock?

SoFi reports next on Tuesday, October 27, 2026, according to the Yahoo Finance earnings calendar. It has beaten the consensus EPS estimate four quarters in a row, most recently with $0.12 against $0.11 on Wednesday, July 29, 2026.

Report date	EPS actual	Consensus
October 28, 2025	$0.11	$0.08
January 30, 2026	$0.13	$0.12
April 29, 2026	$0.12	$0.12
July 29, 2026	$0.12	$0.11

Watch three numbers: revenue growth against the latest quarter's 42.6%, net margin against the trailing 14.9%, and the diluted share count. If shares are still climbing about 12% a year, the $0.82 forward estimate gets harder to reach.

Frequently Asked Questions

Does SoFi Technologies pay a dividend?

No. SoFi's dividend yield is 0.00%, and it paid no dividends in 2025. Its cash flow statements do show dividend payments of $40.4 million a year from 2021 through 2023 and $16.5 million in 2024, but those stopped. Anyone looking at SoFi today is looking at an earnings growth story, not an income stock, so returns depend on the business and the share price.

Why is SoFi stock so volatile?

SoFi has a five-year beta of 2.33, meaning it has historically moved more than twice as much as the broader market in either direction. The past year fits that pattern: the stock's highest close was $32.21 and its lowest was $14.22. A stock like that can swing hard on a single earnings report or headline, in both directions.

What do analysts think of SoFi stock?

Analysts are split. Per Yahoo Finance, 10 rate SoFi Buy or Strong Buy, 11 rate it Hold and 4 rate it Sell or Strong Sell. Price targets run from $12.00 to $30.00, a very wide range. The lowest target is below the current share price, and the highest is more than double it, which shows how differently analysts read the same numbers.

Who owns SoFi stock?

Institutions hold about 51.5% of SoFi's shares and insiders about 1.5%, according to Yahoo Finance. Short positions equal 16.9% of the float, well above a typical stock, and the audit flags that as a concern. Heavy short interest can add to volatility around events like earnings, because short sellers may rush to buy shares back if results surprise to the upside.