SoFi Techs's Earnings: A Preview

SoFi Techs SOFI is gearing up to announce its quarterly earnings on Tuesday, 2025-04-29. Here’s a quick overview of what investors should know before the release.

Analysts are estimating that SoFi Techs will report an earnings per share (EPS) of $0.05.

Anticipation surrounds SoFi Techs’s announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

Last quarter the company beat EPS by $0.01, which was followed by a 0.56% increase in the share price the next day.

Here’s a look at SoFi Techs’s past performance and the resulting price change:

Market Performance of SoFi Techs’s Stock

Shares of SoFi Techs were trading at $12.88 as of April 25. Over the last 52-week period, shares are up 91.3%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about SoFi Techs

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on SoFi Techs.

The consensus rating for SoFi Techs is Neutral, based on 4 analyst ratings. With an average one-year price target of $15.12, there’s a potential 17.39% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Credit Acceptance, with an average 1-year price target of $475.0, suggesting a potential 3587.89% upside.
• Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $134.5, suggesting a potential 944.25% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Credit Acceptance and Enova International, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

SoFi Techs ranks highest in Revenue Growth among its peers, showing strong performance. It also leads in Gross Profit, indicating efficient operations. However, it lags behind in Return on Equity compared to its peers. Overall, SoFi Techs is positioned well in terms of revenue growth and gross profit, but could improve its return on equity to align with industry standards.

Get to Know SoFi Techs Better

SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients’ finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.

Unraveling the Financial Story of SoFi Techs

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: SoFi Techs’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 22.19%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: SoFi Techs’s net margin excels beyond industry benchmarks, reaching 45.29%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): SoFi Techs’s financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.26%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): SoFi Techs’s ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.94%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.49.

To track all earnings releases for SoFi Techs visit their earnings calendar on our site.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.