SoFi Stock Surges 32% in Three Months: Capitalizing on the Digital Refinancing Boom

Overview of SoFi’s Stock Performance

In June 2025, SoFi’s stock price has soared from about $11.60 three months ago to the current price of $15.36, with a cumulative increase of 32%, while the average increase in the fintech industry during the same period was only 13.8%. The increase for the year has reached as high as 121.5%, demonstrating strong growth momentum.

Digital Refinancing: Core Growth Engine

The U.S. federal student loan policy is tightening, and as the relief options become more restricted, an increasing number of borrowers are turning to the private refinancing market. SoFi is known for its digital platform, competitive rates, and flexible terms, attracting a large number of users. In the first quarter of 2025, SoFi’s student loan refinancing volume grew by 59% year-on-year, indicating a significant rebound in refinancing demand.

Diversified ecosystem and cross-selling

SoFi’s “land-and-expand” strategy helps it build a moat in the one-stop financial services sector. Starting with student loans, SoFi subsequently launched products such as investments, insurance, and credit cards, achieving cross-selling within the ecosystem. The broader product line not only enhances customer loyalty but also reduces customer acquisition costs, creating a virtuous cycle. Management expects revenue growth rates to reach 24%-27% by 2025, with earnings per share (EPS) potentially rising by 80%-87%.

Galileo Platform: The Future Potential

Galileo is SoFi’s B2B financial services platform that provides payment and lending solutions to third-party businesses. With the embedded finance market expected to expand at a compound annual growth rate of 16.8% by 2029, Galileo is set to become an important long-term growth engine. Several large clients have already integrated with Galileo, and it is expected to continue contributing revenue in the future.

Latest financial performance and member growth

In the first quarter of 2025, SoFi achieved a 20% year-on-year increase in net sales, with net profit soaring by 217%. The number of members increased by 800,000, marking the highest quarterly growth on record, further enhancing cross-selling potential. All three major business segments contributed: loan income grew by 25%, technology platform income increased by 10%, and financial services income surged by 101%.

Risks that investors should pay attention to

• Macroeconomic uncertainty: The Federal Reserve’s interest rate policy, potential recession, or changes in trade policy may affect loan demand and profit margins.
• Strong competitive pressure: Challenges from the digital transformation of traditional banks such as JPMorgan and Bank of America, as well as market competition from emerging fintechs like Revolut.
• Valuation premium: SoFi’s current forward price-to-earnings ratio (P/E) is about 40, far higher than the industry average of 18.6, and future prices may face adjustment risks.

Operation suggestions and timing layout

Given that SoFi has a strong fundamental outlook, but its valuation is already high, it is suggested that investors may start with a small position and consider increasing their holdings when the price adjusts to the $14 level. At the same time, it is important to pay close attention to the secondary market’s reaction to further tightening of federal loan policies, as well as changes in performance expectations when SoFi announces its next quarterly earnings report.