SOFICAUTIOUS

SOFI Return on Equity (ROE) Analysis

7.1%

Higher than 14% of Financial Services sector peers

Updated 363h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — at 7.1%, SoFi earns $0.071 for every $1 of equity invested.

Sector Performance

14th percentile

SOFI

7.1%

Sector Median

13.3%

Sector Avg

19.5%

Prior Period

6.6%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — at 7.1%, SoFi earns $0.071 for every $1 of equity invested.

That level sits far below the sector median of 12.7%, placing SoFi in the 13th percentile among Financial Services peers, meaning roughly 87% of comparable firms achieve higher returns. The trend data is incomplete: the year-over-year change is N/A, while the quarter-over-quarter change is +7.6%, moving from 6.6% to the current 7.1%. The combination of a low absolute ROE alongside a modest quarterly uptick suggests the company is improving from a weak base, but it has not yet reached competitive profitability. For investors, this implies continued pressure on capital efficiency and a higher risk that returns lag the broader sector. This metric directly supports the CAUTIOUS verdict, as the low percentile rank and sub-median ROE confirm underlying profitability concerns.

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 7.1% compares to a Financial Services sector median of 13.3%, placing it in the 14th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), BRK-B (12.1%).

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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.