SoFi (SOFI) will release its financial results for the second quarter of 2025 on Tuesday, July 29. The financial technology company has consistently delivered strong quarterly numbers, and this trend is expected to continue in Q2 as well. However, the significant appreciation in its share price has raised valuation concerns ahead of the earnings print.

Over the past month, SoFi shares have soared more than 36%, recently hitting a new 52-week high. Zooming out, the numbers are even more solid. The stock has nearly doubled in the past three months and is up about 175% over the past year. This rally reflects both strong business performance and broader market optimism, particularly after last year’s interest rate cuts, which provided a tailwind for growth-oriented fintech names like SoFi.

SoFi’s solid execution, revenue diversification, cost reduction, expansion of product offerings, and growing customer base have all contributed to its rise. However, the market may already be pricing in many positives ahead of the Q2 report.

With the stock now appearing fairly valued, if not somewhat stretched, will SoFi continue to deliver the kind of growth that justifies its high valuation? Let’s take a look at the Q2 expectations.

SoFi’s Strong Q2 Outlook Signals Further Upside Potential

SoFi Technologies is gearing up for a strong second quarter, with all signs pointing to sustained growth across its core business lines. The fintech firm continues to capitalize on its expanding user base, increasing product offering, and a strategic shift toward capital-light revenue streams. These elements, combined with a lower cost of capital and effective risk management, position SoFi to deliver strong top-line and bottom-line growth.

Management has projected adjusted net revenue for Q2 to fall between $785 million and $805 million, reflecting a year-over-year increase of 31.1% to 34.5%. This growth outlook is supported by continued momentum in member acquisition and product adoption. In Q1 alone, SoFi added 800,000 new members and 1.2 million new products. Fee-based revenue reached a quarterly high of $315 million, a 67% jump from the prior year, primarily driven by the momentum in its Loan Platform Business (LPB) and a diversified mix of non-interest income sources.

The LPB, which facilitates loan originations for third-party partners without taking on credit risk, is proving to be a scalable model. Management expects LPB to become SoFi’s third business line to exceed $1 billion in annual revenue after SoFi Money.

Notably, SoFi Money, its digital banking offering, is on a similar trajectory, driven by customer-friendly features like high-yield accounts and peer-to-peer transfers.

SoFi’s investment arm is also showing strength. The SoFi Invest platform saw a 21% year-over-year increase in investment product uptake in Q1. The company is broadening investor access to exclusive opportunities through partnerships, most recently giving members the chance to invest in private firms like Anthropic. This access, once limited to ultra-wealthy individuals, has become a compelling draw for SoFi’s growing member base.

Its technology platform continues to build momentum, attracting new clients and generating steady, fee-based revenue. As SoFi refines its tech infrastructure, the segment is expected to become an increasingly important revenue contributor.

On the lending front, personal loans remain a key driver of growth, while home equity products are gaining momentum. The company's ability to fund these loans cost-effectively is a significant advantage. SoFi's deposit base swelled to $27.3 billion in Q1, helping reduce funding costs by an estimated $515 million annually.

Wall Street anticipates SoFi will post earnings of $0.06 per share for the quarter, reflecting a year-over-year increase of about 500%. SoFi has beaten analyst estimates for four consecutive quarters, including a 100% beat last quarter, and another strong showing could push its share price even higher.

Here’s What Analysts Recommend for SoFi Stock

SoFi's stock is already trading near the highest price target of $21, which indicates a potential pullback could be coming. Additionally, analysts currently have a “Hold” consensus rating on the stock.

The Bottom Line

SoFi is likely to deliver solid Q2 financials led by growth across its core business segments. However, the recent surge in its share price has heightened valuation concerns, potentially limiting near-term upside. While SoFi’s fundamentals remain strong and point to long-term growth potential, Q2 results and its outlook could reveal whether SoFi stock will continue to rise or its hot streak is due for a cool-down.