If you’ve been on the fence about buying SoFi Technologies (SOFI 1.44%) stock, you might want to consider buying it right now. Once a young and risky growth stock, it’s proving itself over and over again as a real contender in U.S. banking, and it still has a massive growth opportunity. SoFi just reported a blowout first quarter; here are five reasons to buy it today.
1. Membership is accelerating
Membership is the driver behind any growth platform, and SoFi’s membership is not only growing, but accelerating. In the 2025 first quarter, it added 800,000 new members, a 34% year-over-year increase, for a total of 10.9 million.
It might be helpful to reframe that in comparison to some of the country’s biggest banks, like JPMorgan Chase, which services 60 million accounts in its consumer business alone.
Management believes its marketing efforts have led to higher unaided brand awareness, and it continues to invest in growing its brand presence with deals like a partnership with the Country Music Association and launching TGL, a “tech-driven stadium golf league.”
2. Revenue growth is accelerating
It’s been a tough environment for SoFi to grow its revenue with high interest rates, but it’s been helped along by its expanding services platform. As interest rates come down and SoFi continues to expand its platform, revenue growth is accelerating.
In the first quarter, adjusted net revenue increased 33% year over year to $772 million. In addition to lower interest rates, the company is benefiting from its cross-selling strategy, which involves bringing in new customers and getting them to buy more and higher-priced products. This indicates consumer satisfaction and high growth potential.
SoFi targets a young professional population, and SoFi’s all-digital platform appeals to this market. These consumers will likely continue to bank with SoFi, increase engagement, and drive growth for the bank. As usual, 90% of SoFi Money deposits came from direct deposit in the first quarter, and this recurring deposit stream leads to higher net interest income and earnings.
The company recently launched SoFi Plus, a paid subscription service, and 90% of signups have been from existing platform members. Plus, 30% of them sign up for another product within 30 days of membership. Of the remaining new members, 75% sign up for a new product within 30 days.
The financial services segment accounted for 90% of new products in the first quarter, with a 36% increase in products year over year. Revenue from the segment more than doubled from last year, and contribution profit was up 299%.
3. The lending segment is soaring
The non-lending segment continues to increase and take the pressure off of the lending segment, but the lending segment is bouncing back now, too. Lending products and revenue both increased 25% year over year in the quarter, and contribution profit was up 15%.
Despite the company’s impressive pivot into a large assortment of financial services, lending is still its core segment, accounting for more than half of total revenue. Better credit conditions mean more lending activity and higher revenue for SoFi.
4. Charge-off rates are declining
That’s already playing out. The annualized charge-off rate fell from 3.37% in the fourth quarter to 3.31% in the first quarter for personal loans, and 90-day delinquencies declined by 9 basis points to 46 basis points. The student loan charge-off rate fell from 62 basis points to 47 basis points.
That’s still above the bank average of 3.02% for U.S. bank personal loans, but as the company grows and gets better at risk management, credit metrics should keep improving.
5. The price is right
SoFi is getting better and better, but its stock is down 14% this year, and it trades at a forward one-year P/E ratio of 28. That isn’t objectively cheap, but it’s attractive for a high-growth stock and a great entry point for new investors.
While many other companies are tempering their forecasts with new tariff effects on the horizon, SoFi raised its full-year guidance for revenue growth; adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA); net income; and tangible book value growth. If you have some appetite for risk and a long time horizon, SoFi stock could be an incredible growth addition to your portfolio.
JPMorgan Chase is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.