SoFi Technologies, Inc. SOFI is currently benefiting from a robust top line and sustained profitability as it continues to grow its member base.
The company’s earnings for 2024 and 2025 are expected to increase more than 100% year over year. SOFI has a long-term (three to five years) expected earnings growth rate of 51.1%. Revenues for 2024 and 2025 are expected to increase 15.5% and 17.5%, respectively, year over year.
Factors That Bode Well
SOFI is having an exceptional year so far. It saw a remarkable 26% increase in adjusted net revenues in the first quarter of 2024, driven by 54% combined revenue growth in the Tech Platform and Financial Services segments. This indicates a strong demand for services.
SoFi Technologies, Inc. Revenue (TTM)
SoFi Technologies, Inc. revenue-ttm | SoFi Technologies, Inc. Quote
Adjusted EBITDA soared 91% year over year, demonstrating improved operational efficiency. SOFI achieved a remarkable 57% incremental margin and a consolidated EBITDA margin of 25% for the first quarter of 2024. These margins exceed the company’s long-term target of 30%, indicating efficient cost management.
Members and products both experienced robust growth rates of more than 35% in the quarter. The company added 0.6 million new members, bringing the total to more than 8.1 million members. Nearly a million new products were added, resulting in a total of 11.8 million products by the end of the first quarter.
Zacks Rank & Stocks to Consider
SOFI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton BAH and SPX Technologies, Inc. SPXC.
Booz Allen Hamilton has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BAH has a long-term earnings growth expectation of 14%. It delivered a trailing four-quarter earnings surprise of 12.5%, on average.
SPX Technologies, Inc. currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 18%. SPXC delivered a trailing four-quarter earnings surprise of 13.9%, on average.
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Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report