SoFi Technologies, Inc.SOFI
NMS • Financial Services
$14.77
P/E
28.96
PEG
0.47
FCF Yield
-20.9%
Rev Growth YoY
+42.5% YoY
Gross Margin
—
Health Score
4/10
D/E Ratio
0.30
Confidence
LOW
Business Snapshot
SoFi Technologies is a digital financial services company operating a member-centric platform that spans lending (personal, student, and home loans), financial services (banking, investing, and a credit card), and a technology platform segment that provides banking infrastructure to third parties. It competes in the US consumer banking and fintech arena as a challenger to incumbent banks, using its national bank charter to fund loans with deposits rather than relying purely on wholesale funding. With a market capitalisation of $19.08B and TTM revenue of $4.31B, it sits in the mid-cap tier and has scaled well beyond its startup roots. The defining characteristic is its vertically integrated, deposit-funded model combined with a technology platform that diversifies revenue beyond its own balance sheet — a structure that gives it both a lending book and a fee-based software business.
Financial Health
The margin picture is the central tension: net margin (TTM) is -19.8%, meaning the company is currently loss-making on a trailing basis despite reporting positive net income in each of the last four quarters. Gross margin is not reported for this financial-services business, so the net margin is the cleanest profitability read available...
Risk Assessment
- VALUATION — P/E of 28.96x sits well above the sector average of 17.9x, a ~62% premium that leaves little room for a growth stumble.
- CASH BURN — Free cash flow of -$3.99B and an FCF yield of -20.9% represent a substantial cash drain that must eventually reverse.
- EARNINGS QUALITY — 3 of 4 recent quarters beat estimates, a reasonable but not flawless record that leaves some guidance-credibility risk.
- MARGIN CONTRADICTION — TTM net margin of -19.8% conflicts with positive net income in all four recent quarters, a discrepancy that warrants scrutiny of the trailing figure.
- INSIDER SELLING — Insiders recorded 0 buys versus 2 sells over the last 90 days, a net-sell signal.
- 52-WEEK POSITION — At $14.77 the price sits far below the 52-week high of $32.73 and just above the low of $13.86, roughly 55% below the high.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
The margin picture is the central tension: net margin (TTM) is -19.8%, meaning the company is currently loss-making on a trailing basis despite reporting positive net income in each of the last four quarters. Gross margin is not reported for this financial-services business, so the net margin is the cleanest profitability read available. The balance sheet is genuinely conservative on the leverage side, with a debt/equity ratio of 0.3x — a healthy profile that leaves room to absorb credit losses. The cash flow statement is the weak spot: free cash flow is -$3.99B with an FCF yield of -20.9%, a substantial cash burn that demands attention even for a lending business where loan originations can distort operating cash flow. Return on equity of 7.1% is modest but positive. Overall, this is a company with a fortress-like leverage profile but a heavy cash-consumptive growth engine — the key question for an investor is whether the quarterly profitability converts into durable cash generation before the burn becomes a funding constraint.
- VALUATION — P/E of 28.96x sits well above the sector average of 17.9x, a ~62% premium that leaves little room for a growth stumble. - CASH BURN — Free cash flow of -$3.99B and an FCF yield of -20.9% represent a substantial cash drain that must eventually reverse. - EARNINGS QUALITY — 3 of 4 recent quarters beat estimates, a reasonable but not flawless record that leaves some guidance-credibility risk. - MARGIN CONTRADICTION — TTM net margin of -19.8% conflicts with positive net income in all four recent quarters, a discrepancy that warrants scrutiny of the trailing figure. - INSIDER SELLING — Insiders recorded 0 buys versus 2 sells over the last 90 days, a net-sell signal. - 52-WEEK POSITION — At $14.77 the price sits far below the 52-week high of $32.73 and just above the low of $13.86, roughly 55% below the high. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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