Shares of SoFi Technologies (SOFI) rose on Thursday after the company unveiled its first stablecoin called SoFiUSD. This is a major development in their overall blockchain strategy. This development comes on the heels of SoFi Technologies’ launch of SoFi Crypto. It appears that SoFi Technologies has embarked on accelerating its expansion plan in the crypto space.
Although stablecoins are not uncommon in today’s crypto community, this announcement is notable because SoFi is launching with the clear advantage and competitive advantage of being a regulated national bank. In fact, as management announced, they are not launching a product for speculative purposes but to address true inefficiencies in payment, settlement and liquidity movement flows. The market has reacted favorably to this announcement as a mere extension of SoFi’s growing fee-based and technology-based lines of business.
SoFi Technologies is a digital financial services company and is headquartered in San Francisco, California. This company has an extensive ecosystem that encompasses lending, banking, investing, credit cards, and financial planning, all on a single mobile platform. With SoFi Bank, the company also has a national banking charter, which gives it some regulatory advantages over its fintech rivals. Its $32 billion market capitalization falls in the large-cap fintech space.
SOFI stock has remained quite volatile over the past year and has ranged between a low of $8.60 and a high of $32.73 over the 52-week period. Although the stock has seen strong appreciation over the past year, it has yet to touch its recent high. Although it currently trades at approximately $27 per share, the stock has outperformed the broader market over the past 12 months.
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In terms of valuation, SoFi stands out with high multiples. In terms of trailing and forward P/E multiples, it stands at 84x and 68x, respectively, indicating that the market is still expecting a certain level of earnings growth. The AP/S multiple of 11.4x indicates that it is a premium compared to traditional banks. However, it is not significantly different compared to infrastructure-based fintech companies.
SoFi last reported its results on October 28, with its Q3 2025 EPS at $0.11, a strong doubling of results from a year ago. Net revenue increased 38% to $961.6 million, while net income increased 129% from a year earlier. Additionally, SoFi posted its eighth consecutive GAAP profitable quarter.
Adjusted EBITDA increased to $276.9 million, an adjusted margin of 29%, and adjusted net income hit an all-time high of $949.6 million. Notably, the company emphasized accelerated membership growth with the addition of 905,000 members in the quarter, bringing the membership base to 12.6 million. Additionally, product adoption rates continued at high levels, with 40% of new product accounts represented by existing members.
In this sense, the introduction of SoFiUSD stands out against the broader strategy aimed at fee-driven growth and infrastructure monetization. Specifically, management clarified that the stablecoin will not only benefit its customers but will also provide the white label infrastructure for other banks and fintech companies. CEO Anthony Noto stated that blockchain technology is in the middle of a supercycle, with SoFiUSD being one of the useful instruments to overcome slow settlement times, regionalization and reserve transparency.
SoFi has not yet offered guidance on revenue from the stablecoin business. However, the fact that it has been seen alongside other high-margin revenue streams, such as the financial services operating segment and lending platform businesses, indicates that it will be a source of long-term revenue growth.
Wall Street is fairly neutral on SOFI at the moment. Analysts following the stock have a consensus rating of “Hold” and a price target of $27.69, which is pretty close to the stock’s current price. Analyst targets show a wide range in value, from a high of $38 to a low of $12. The wide range of targets reflects that it’s not just growth rate and profitability being compared, but also what kind of growth and profitability SoFi can potentially deliver and how that affects valuation multiples going forward.
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As of the date of publication, Yiannis Zourmpanos had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
