SoFi Technologies (NASDAQ: SOFI), the fast-growing all-digital bank, has seen its share price fall 41% in 2026 despite delivering outstanding growth figures quarter after quarter.
The company is set to release its third-quarter earnings on October 27, a date that investors are watching closely given the stock’s persistent underperformance relative to its operational results.
SoFi’s core business remains lending, but the company has built an expansive suite of financial products designed to deepen customer engagement through cross-selling, a strategy that is now showing measurable results.
Its product lineup spans basic banking offerings like savings accounts and credit cards, as well as more innovative tools including blockchain-based international wire transfers and a U.S.-dollar-backed stablecoin.
A key metric tracking that strategy, products per member, has accelerated over the last two quarters, and for the first time, products added were twice the number of new members added in the second quarter.
SoFi added 1.1 million new members in Q2, representing a 35% year-over-year increase, bringing total membership to a record 15.8 million, while total products reached a record 24.4 million, up 42%.
CEO Anthony Noto expressed confidence in the company’s trajectory, stating: “We are starting to hit escape velocity on our path to be the winner that takes most in digital financial services.”
Cross-buying behavior is also strengthening, with 51% of new products now coming from existing members, up from 43% in the prior quarter, suggesting the loyalty loop the company has been building is beginning to pay off.
SoFi obtained a bank charter in 2022 through the acquisition of Golden Pacific, which allowed it to take deposits and fund its own loans directly, cutting out the third-party banks it previously relied on and reducing the fee drag that had weighed on margins.
Operating margin reached 16.9% in Q2, up from 13.1% a year earlier, a sign that the company’s cost structure is improving as the business matures, even as marketing and technology spending remain elevated compared to traditional lenders.
The Federal Reserve’s interest rate hike in September, its first in three years, introduces a meaningful headwind, as higher rates could slow lending activity and increase the risk of credit defaults across SoFi’s loan book.
Rate-driven investor rotation away from higher-growth stocks has also added pressure, since SoFi is frequently valued somewhere between a conventional bank and a high-growth fintech, leaving it vulnerable to sentiment shifts in both categories.
For the full year, SoFi expects adjusted revenue to grow between 32% and 35%, with its adjusted EBITDA margin expanding roughly four to five percentage points to reach a range of 33% to 34%.
Analysts project that from 2025 to 2028, SoFi’s revenue and adjusted EBITDA will grow at compound annual rates of 27% and 37%, respectively, underscoring the long-term growth case even as near-term pressures weigh on sentiment.
With an enterprise value of $17.2 billion and a valuation of just 11 times this year’s adjusted EBITDA, the stock appears inexpensive relative to its growth profile, though the October 27 earnings report will be critical in determining whether the market is ready to reassess that discount.
