After putting up a standout performance in 2025, digital financial services firm SoFi Technologies (SOFI) has suddenly found itself on shaky ground this year. The stock has been sliding, and the pullback has come even after the company delivered stronger-than-expected fourth-quarter results just last month. Fundamentally, the numbers told a strong story, but the market mood has shifted. Investors have become increasingly uneasy about valuation levels and the risk of future dilution from capital raises, both of which have pressured the shares.
At the same time, SoFi has become a victim of the latest broader risk-off market sentiment, where investors are rotating out of high-growth names and dialing back to areas like cryptocurrency and software in favor of safer, more defensive plays. But not everyone is backing away. In fact, analysts at Citizens JMP are urging investors to look beyond the recent weakness. The firm believes that, despite the current pullback, SoFi’s stock could still climb more than 40% in 2026. So, what’s fueling that level of optimism? Let’s take a closer look to find out.
Founded in 2011, California-based SoFi Technologies has grown into one of the most innovative players in the fintech industry, an online-only, nationally chartered bank redefining how people manage money in the digital age. The company has positioned itself as a digital one-stop shop for modern money management, built around a mission to help people achieve financial independence and chase their ambitions.
Today, 13.7 million members rely on SoFi to borrow, save, spend, invest, and protect their money, all from a single app, while also gaining access to financial planners, exclusive experiences, and a vibrant member community. Beyond its consumer platform, SoFi powers the fintech ecosystem through Galileo Financial Technologies, its technology arm that enables fintechs, financial institutions, and global brands to create and manage innovative financial products.
Galileo’s infrastructure now supports 128.5 million accounts worldwide, extending SoFi’s reach far beyond its own member base. After a strong run in recent years, shares have taken a notable hit in 2026. Currently valued at a market capitalization of about $25.7 billion. SoFi’s stock is down 19.1% this year, sharply underperforming the broader S&P 500 Index ($SPX), which has managed a modest 1.4% gain over the same period.
The selling pressure has ramped up in recent weeks, with the fintech stock tumbling almost 22.7% over the past month alone. Despite its earlier surge, shares now sit roughly 55% below their 52-week high of $32.73 reached last November, a sharp retreat that underscores how quickly investor sentiment has cooled.
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Valuation worries are hard to ignore also. Even after its latest pullback, SoFi is trading at a rich 34.33 times forward earnings and 5.9 times sales, well above sector medians of 10.95 times forward earnings and 2.98 times sales. That hefty premium signals investors have been willing to pay up for SoFi’s growth story, but it also leaves the stock with less room for error if expectations cool or momentum slows.
When SoFi reported its fiscal 2025 fourth-quarter results on Jan. 30, the headline numbers looked like a recipe for a rally. The company topped Wall Street’s expectations on both revenue and earnings and delivered a string of record-setting achievements. Instead, the market reaction went the other way. Shares fell nearly 6.4% on the day of the release and slipped another 3.2% in the following session.
Digging into the figures, though, and the growth story remains hard to ignore. Total net revenue surged 40% year-over-year (YOY) to $1.03 billion, beating the $985.9 million consensus estimate. The quarter also marked SoFi’s first billion-dollar revenue milestone, with adjusted net revenue climbing 37% to a record $1.013 billion.
Fee-based revenue was another standout, jumping 53% to a record $443 million. The strength was driven by solid performance in the Loan Platform Business along with rising referral, interchange, and brokerage fee revenue. Together, the Financial Services and Technology Platform segments generated $579.1 million in net revenue, a 61% increase from the same period last year.
User growth remained a major engine. SoFi added a record 1 million new members during the quarter, bringing its total to 13.7 million, up 35% YOY. Product adoption followed the same trend, rising 37% to a record 20.2 million products. Profitability also continued to scale. The company logged its ninth straight profitable quarter, posting adjusted net income of $174 million and earnings of $0.13 per share, a 160% jump from a year earlier and comfortably above the $0.11 estimate.
Adjusted EBITDA climbed 60% to a record $318 million, signaling improving operating efficiency as the business grows. On the innovation front, SoFi pushed further into digital assets and global payments. During the quarter, it became the first nationally chartered bank to launch crypto trading for consumers and to introduce its own stablecoin, SoFiUSD, on a public, permissionless blockchain.
Further, the company rolled out blockchain-powered international remittances across more than 30 countries. Looking ahead, management’s 2026 outlook suggests the momentum isn’t slowing. The company expects total membership to increase by at least 30% YOY. Meanwhile, adjusted net income is expected to total approximately $825 million, or an 18% margin, while adjusted earnings per share are projected at about $0.60.
Recently, Citizens JMP stepped off the sidelines and upgraded the stock to “Outperform” from “Market Perform,” slapping on a $30 price target. That target suggests the stock could jump about 40.5% from current levels. According to Citizens JMP analysts led by Devin Ryan, SoFi has been caught in a broader risk-off rotation, where investors are backing away from “higher-growth” or “speculative-adjacent” themes like crypto and software.
Meanwhile, more traditional macro plays such as regional banks have held up better. The analysts argue the selloff is driven less by fear about the economy and more by technical factors and a shift in market style preferences. In their view, that creates a buying opportunity in what they call one of the most compelling long-term compounders in fintech. They believe the stock’s risk-reward profile has improved significantly since SoFi’s late-January earnings report clarified its fundamentals and mid-term growth outlook.
A key part of the bullish case is SoFi’s “one-stop shop” model. The company says 40% of new products are opened by existing members, showing strong cross-selling and deeper engagement. Record growth in members and products last quarter also points to a rapidly expanding ecosystem. Just as important, the business mix is evolving.
Citizens JMP notes that SoFi is becoming less reliant on traditional lending income as fee-based and capital-light revenue streams take a bigger role. While lending still matters, diversification across segments and improving profitability are strengthening the overall model. Looking ahead, the analysts believe some of SoFi’s biggest future growth drivers are still not fully reflected in forecasts, with cryptocurrency opportunities standing out as a potential upside lever.
While Citizens JMP is bullish, Wall Street hasn’t fully made up its mind on SoFi just yet. The stock currently carries a consensus “Hold” rating, reflecting a mix of optimism and caution. Out of 24 analysts covering the name, seven are firmly bullish with “Strong Buy” calls, while two lean positive with a “Moderate Buy.”
Still, a large chunk of the Street is taking a wait-and-see approach. Ten analysts rate the stock a “Hold,” two see downside with “Moderate Sell,” and three are outright bearish with “Strong Sell” recommendations. The divided outlook highlights the tug-of-war between SoFi’s growth potential and lingering concerns around valuation and risk.
Analysts see meaningful upside ahead. The average price target of SoFi sits at $27.32, implying about 29% upside from current levels. At the high end of the range, the most bullish target of $38 suggests the stock could rally as much as 79%, showing that while caution remains, some on Wall Street see substantial rebound potential.
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On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
