Chris Neiger, The Motley Fool
4 min read
In This Article:
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SoFi's sales and earnings are rising, and it has nearly 11 million members.
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The online bank recently raised its revenue guidance for 2025.
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But uncertainty surrounding tariffs and the economy in general remains.
The share price of SoFi Technologies (NASDAQ: SOFI), an online bank and leading financial technology (fintech) company, has more than doubled over the past year. The San Francisco-based company has done a great job of expanding its services to appeal to a wider consumer base, which in turn has pushed sales and earnings -- along with SoFi's stock price -- higher.
Despite its growth, there are indications that consumers are trimming their spending amid some economic uncertainty. Here's how it might impact the company and where SoFi could be three years from now.
By almost all measures, SoFi is doing quite well. The company increased its members by 34% in the first quarter, reaching nearly 11 million. That growth helped spur the company's adjusted sales, which rose 33% to $770 million in the quarter. Meanwhile, adjusted earnings per share soared 200% to $0.06.
The strong quarter led SoFi's management to raise its revenue guidance to a range of $3.2 billion to $3.3 billion for 2025. Management said SoFi is off to a "tremendous" start in 2025 and that sales growth was its fastest in the past five quarters.
What's more, SoFi's fee-based revenue spiked 67% to $315 million in the quarter, and the average number of services each SoFi member uses is 1.4, indicating that SoFi has room to expand its fee-based services to its customers.
With SoFi on very solid footing right now and management recently raising its guidance, there's likely more to look forward to from the company over the next several years.
When President Donald Trump announced his tariff policies, investors panicked, and most stocks fell. SoFi wasn't immune, and its share price tumbled 20% in one week alone. It's recovered since then, but some of the uncertainty surrounding tariffs and the economy in general has remained.
Consumer sentiment has risen recently, but it's still down about 20% from December. Americans have pulled back on their retail spending and travel spending. All of this matters because if consumers are feeling unsure about the economy, they'll be less likely to get a mortgage, take out a loan for a small business, or sign up for a new credit card, all of which SoFi offers.
