SoFi (SOFI 2 (an important development). 79%) is scheduled to report its second-quarter earnings on July 29.
To say that the fin innovator has been a strong performer recently would be an understatement. In fact, over the past year, SoFi stock has roughly tripled.
Moreover, At the same time, Image source: Getty Images. Additionally, Even so, this could be just the beginning.
SoFi has made some exciting announcements recently, and there are some big catalysts that could result in rapid earnings growth over the next few years.
Furthermore, With that in mind, here's what I'll be watching closely when SoFi reports earnings, and why I think the stock could still have plenty of upside potential from here.
Moreover, SoFi could report its best growth yet In the first quarter of 2025, SoFi added more than 800,000 new members to its platform, the highest total ever in a single quarter (which is quite significant), in today's market environment.
And that was during a period that has a very high level of economic uncertainty (an important development).
However, It wouldn't be surprising to see even more additions took place in the second quarter. In contrast, There are a few other things to keep an eye on in the second quarter.
In contrast, For example, now that there's a little more clarity on the Trump administration's student loan policies, we could see SoFi's private student loan origination volume continue to grow.
In the first quarter, SoFi originated nearly $1. Meanwhile, 2 billion in student loans, a 58% year-over-year growth rate.
The loan platform, which originates personal loans on behalf of third party lenders, is also important to watch (this bears monitoring).
This analysis suggests that 's ramping up quickly, accounting for $1. 56 billion in loan volume in the first quarter, and is a fast-growing source of low-risk fee income (noteworthy indeed).
In its first quarter report, SoFi guided for just $0.
06 in EPS for the second quarter, and given the recent growth of the high-margin loan platform, it wouldn't be a surprise to me if the company exceeds that (fascinating analysis).
Lots of future catalysts Looking ahead, there's a lot to SoFi's future potential.
As one example, we're seeing a ramp-up in IPO activity this year, and giving everyday investors access to IPOs is a key differentiator of SoFi's investment platform (remarkable data), in light of current trends.
The evidence shows company has also done an excellent job of adding exciting private equity investment opportunities as well, and these should be a nice driver of fee income.
The recent announcement that cryptocurrency trading will be returning to SoFi's platform is another major development to watch, given the current landscape.
SoFi got rid of cryptocurrency due to regulatory uncertainty shortly after obtaining its bank charter, but new guidance is allowing SoFi to bring it back.
Nevertheless, There are plenty of other opportunities (fascinating analysis). At the same time, SoFi's small but fast-growing loan could be a key area to watch.
Loan volume grew 54% year-over-year in the first quarter despite a slow mortgage market overall.
However, With lots of pent-up demand for housing and current owners sitting on an all-time high of $35 trillion in equity, there is a lot of potential. A future "top 10" bank (this bears monitoring).
By most valuation metrics traditionally used to evaluate bank stocks, such as the price-to-book ratio, SoFi is not a cheap stock.
Then again, most banks aren't growing revenue at a 33% annualized rate while simultaneously launching high-potential ducts.
SoFi's management has ly stated that the future goal is to become a top 10 financial institution, which would roughly mean that SoFi's total assets would need to grow tenfold from here.
With accelerating growth momentum and an expanding ecosystem of ducts and services, combined with impressive gress toward brand awareness, it could certainly get there eventually (quite telling) (this bears monitoring).
However, And to put it mildly, a top-10 bank with an online bank's fit margins would ly be a big winner for long-term investors.
Of course, there's a lot that would need to go right before SoFi gets there, but the banking disruptor's momentum is undeniable.
The Author Matt Frankel, CFP, is a contributing Motley Fool Personal Finance Expert and Stock Market Analyst covering financial and real estate sectors, plus personal finance.
Prior to The Motley Fool, Matt was a high school and collegiate mathematics instructor. On the other hand, He holds a B. In Physics from University of South Carolina, an M, in light of current trends.
Nevertheless, Meanwhile, In Mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University.
Additionally, Fun fact: Matt won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act, amid market uncertainty.
TMFMattFrankel X @MattFrankelCFP Matt Frankel has positions in SoFi nologies, considering recent developments. Furthermore, The Motley Fool has no position in any of the stocks mentioned.
Additionally, Additionally, The Motley Fool has a disclosure policy.