Key Points
SoFi is adding customers rapidly and cross-selling new products.
Management raised guidance for 2026 and offered guidance for 2027.
SoFi stock trades at an attractive price for a growth stock.
After nearly a year of stock losses, SoFi Technologies (NASDAQ: SOFI) finally impressed investors with its third-quarter results. SoFi stock jumped 15% after the third-quarter earnings report, but it's still 50% off its high. Is it finally turning a corner? And is it a buy this month?
The new way to bank
SoFi has a growing digital finance app that's quickly attracting new customers. It added 1.2 million customers in the third quarter, a new record, and 2.2 million products. Products per customer are now 1.67, up from 1.56 last year, and 51% of new products came from existing customers. That aligns with the company's "one-stop shop" strategy.
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Image source: SoFi.
Adjusted net revenue increased 44% year over year, and earnings per share (EPS) were up 64% to $0.18. Management raised its 2026 outlook and expects $6.4 billion in adjusted net revenue, a 44% increase, and $0.61 in EPS. It also provided a 2027 outlook implying 27% growth and $0.90 in EPS.
At the current price, SoFi stock trades at 18 times next year's earnings and less than 2 times book value. That's not the cheapest bargain out there, but it's a great price for a growth stock with strong long-term prospects.
The stock may experience short-term volatility as it grows, but over the next five years and beyond, it should reward shareholders well. As long as you can commit to holding for a few years, now is a good time to buy.
Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.