SOFICAUTIOUS

SOFI Return on Equity (ROE) Analysis

6.6%

Higher than 11% of Financial Services sector peers

Updated 168h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity.

Sector Performance

11th percentile

SOFI

6.6%

Sector Median

13.4%

Sector Avg

17.9%

Prior Period

4.6%(Jun 2026)

↑ Improving

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity.

SoFi's current ROE of 6.6% means it earns $0.066 for every $1 of equity, which is below the financial-services sector median of 12.9% and places it in the 13th percentile — meaning 87% of peers have higher ROE. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp increase of +43.5%, from 4.6% to 6.6% in the most recent period. While the absolute level remains weak relative to the sector, the rapid quarterly improvement suggests early progress in profitability. This combination of a low but quickly rising ROE implies an opportunity if the trend continues, though the persistent underperformance versus peers still represents risk. The metric partly contradicts the overall CAUTIOUS verdict because the positive quarterly trend hints at improving fundamentals, but the low absolute level and poor sector ranking still justify caution.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SOFI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SOFI's Return on Equity (ROE) compare to its sector?

SOFI's Return on Equity (ROE) of 6.6% compares to a Financial Services sector median of 13.4%, placing it in the 11th percentile.

Who are SOFI's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (13.4%), HDB (13.8%), SPGI (13.9%), AIZ (14.9%), IBN (16.4%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.