SoFi Technologies (SOFI) kicked off 2025 with impressive momentum, reporting first-quarter results that surpassed expectations and raised its full-year outlook. The financial technology firm has now delivered its sixth consecutive quarter of profitability, highlighting its transformation into a diversified company that can deliver sustainable earnings.

Despite the macroeconomic uncertainty and prolonged high interest rates, SoFi has consistently delivered solid financials over the past several quarters. While its share price has lost about 27% of value in three months, SoFi’s strong fundamentals and expanding revenue streams could position the stock for a sharp rebound, possibly toward the Street-high price target of $20.

Q1 Results Highlight Growth Momentum

In Q1, SoFi posted record revenue of $771 million, marking a 33% increase year-over-year. This growth was fueled by rapid member and product expansion. The company added 800,000 new members during the quarter, its highest quarterly addition to date, bringing the total to 10.9 million, a 34% jump from a year ago. Product additions were also impressive, growing 35% year-over-year to reach 15.9 million. These gains reflect SoFi’s growing brand appeal and the effectiveness of its cross-sell strategy.

The company’s shift toward capital-light, fee-based revenue is adding to its growth. Non-lending businesses generated $407 million in revenue, up 66% from the same period last year. Fee-based revenue hit a quarterly record of $315 million, up 67% year-over-year. This includes revenue from SoFi’s loan platform, referral partnerships, interchange fees, and brokerage services. On an annualized basis, SoFi is now producing nearly $1.3 billion in fee-based revenue, reflecting the success of its diversification strategy.

A significant catalyst has been the transformation of SoFi’s loan platform. Previously reliant on lending, the company now originates loans in partnership with institutional investors, allowing it to earn origination and servicing fees without the burden of keeping those loans on its balance sheet. This model reduces credit exposure while unlocking new cross-selling opportunities, particularly as SoFi retains the servicing rights.

Another key strength is SoFi’s deposit base, which continues to grow rapidly. Deposits have surged to $27.3 billion, fueled largely by members using SoFi for direct deposit. These deposits provide SoFi with a reliable, low-cost funding source, an advantage over its peers. By reducing its reliance on wholesale funding, SoFi has been able to lower its interest expenses and boost profit margins.

SoFi Lifts Full-Year Outlook

The outlook for the rest of the year is equally compelling. Management raised its full-year revenue guidance to a range of $3.235 billion to $3.310 billion, representing 24% to 27% growth year-over-year. This is an improvement over the previous range of 23% to 26%. Adjusted EBITDA guidance was also raised to between $875 million and $895 million, up from $845 million to $865 million, with expected EBITDA margins of 27%. Additionally, SoFi now forecasts adjusted net income between $320 million and $330 million and adjusted EPS between $0.27 and $0.28, reflecting improved profitability projections across the board.

This forecast includes a projected 2.8 million net new members in 2025, a 28% increase from the prior year. As user engagement deepens across SoFi’s suite of financial products, the company is poised to benefit from increased cross-platform activity and higher per-member revenue.

Can SoFi Stock Hit $20?

Despite recent macroeconomic headwinds and broader market caution, SoFi’s business fundamentals remain intact. While analysts maintain a “Hold” rating amid economic uncertainty, the company’s underlying business continues to show strength.

With ongoing momentum in its business, a growing membership and product base, and a revenue model that now leans on more stable, recurring income, SoFi stock has the potential to hit $20.