Is SoFi Stock a Millionaire Maker?

Key Points

• SoFi's earnings soared 700% in Q2.

• Its membership growth has also been notable, increasing 34% in the quarter.

• But maintaining impressive results could be harder if the economy begins slowing down.

• 10 stocks we like better than SoFi Technologies ›

SoFi Technologies (NASDAQ: SOFI) has experienced significant growth over the past several years, thanks to the company launching new financial products and services that serve an ever-expanding customer base.

What was once a business dealing mostly with student loans has evolved into a one-stop shop for nearly every financial product, from bank accounts and credit cards to mortgages and stock investing. The company's innovations and appeal to younger customers have helped it grow quickly over a short period, causing SoFi stock to surge more than 300% in just three years.

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If SoFi can maintain this momentum, could it become a millionaire maker? I think the company's doing a lot of things right, but I don't think the stock will be minting millionaires any time soon. Here's why.

Image source: Getty Images.

SoFi is on fire right now

On the latest earnings call, SoFi CEO Anthony Noto highlighted how cost-effective the company's customer acquisition can be. Using SoFi Relay -- a free tool that analyzes personal finances and identifies ways to save -- SoFi can bring in new members for as little as $15 each. From there, the company cross-sells additional products such as high-yield savings accounts, personal loans, and mortgages, gradually pulling customers deeper into its all-in-one financial ecosystem.

The results speak for themselves. Here's a quick breakdown of some of the company's Q2 highlights:

• Total sales rose 44% from the year-ago quarter to $858 million.
• Non-GAAP earnings spiked 700% to $0.08 per share.
• Fee-based revenue increased by 72% to $378 million.
• 850,000 new members were added, a 34% increase, giving SoFi a total of 11.7 million members.

Part of the reason for the company's growth has been the addition of new products and their success with members. The company said that of its new products offered, like SoFi Invest and SoFi Money (its bank accounts), 35% of them were opened by existing members and boosted the company's financial services revenue by 50% per product.

The strong results caused SoFi's management to boost its guidance for the year, with revenue estimated to be about $3.38 billion in 2025, and net income around $370 million -- up from previous estimates of $3.27 billion and $325 million, respectively.

Why SoFi stock likely isn't a millionaire maker

Despite everything that's working for SoFi right now, hurdles remain that could keep the stock from putting up the same returns experienced over the past few years. The first is that there are many fintech competitors.

Consider that SoFi faces competition on multiple fronts: traditional banks with overlapping services, tech giants like Apple, and fintech players such as Robinhood and PayPal all offer similar financial products. That's just a brief list, but it shows just how many rivals there are in fintech and why it may be hard for SoFi to grow at the same rate it has been in the coming years.

What's more, SoFi's impressive gains have come at a time when optimism in the market is sky high. Sure, SoFi deserves the credit for growth in its sales, earnings, and members, but that doesn't mean its share price will continue rising at the same pace. If sentiment shifts in the market toward a more pessimistic view, then SoFi's share price gains could slow even if it's putting up impressive growth.

Along those same lines, I believe it's important for investors to keep a close eye on what's happening with the economy right now and how it might impact SoFi. The latest Bureau of Labor Statistics (BLS) jobs report showed that only 22,000 jobs were added in August, far lower than the forecast of 75,000 that economists were expecting. That comes on the heels of the BLS data showing that the economy lost 13,000 jobs in June and added just 79,000 in July. In short, the job market is looking increasingly weaker, and hiring is stalling.

SoFi likely needs a very strong economy -- with people using credit cards, taking out loans, making on-time payments, etc. -- to keep its momentum going. If the U.S. economy slows -- or enters a recession -- over the coming years, then the company's impressive run will likely slow.

That doesn't mean SoFi isn't a good stock to own. I think investors could still benefit by adding the stock to their portfolio. But don't expect it to make you a millionaire.

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Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.