WHY $SOFI COULD BE THE BEST GROWTH STOCK TO OWN IN 2027
SoFi just delivered another record quarter with approximately $1.37B in adjusted revenue, representing 44% year over year growth, while adjusted EBITDA surged 70% to nearly $470M and earnings per share increased 64% to $0.18.
What's impressive is that the company continues accelerating its financial performance while expanding its customer base, with total members reaching 17.1M, up 35%, and total products increasing 44% to approximately 26.7M but I do think the biggest competitive advantage is something that often gets overlooked when investors compare SoFi with traditional fintech companies, which is its banking charter and enormous deposit base.
SoFi now holds approximately $51.3B in deposits, representing roughly 90% of its average liabilities, and management estimates those deposits cost approximately 145 basis points less than comparable warehouse financing, translating into around $745M in annualized interest expense savings and funding advantage helped support a 6.14% net interest margin and creates a structural competitive advantage that fintech lenders without their own banking charters simply cannot replicate as easily.
What makes that funding advantage even more interesting is how effectively SoFi is beginning to translate it into accelerating lending growth without a corresponding deterioration in credit quality since during Q3 total loan originations reached a record $16.9B, increasing 71% year over year, while its personal lending business continued benefiting from strong demand and an expanding network of capital markets partners.
Normally I'd become increasingly cautious when a consumer lender begins accelerating originations this aggressively because rapid lending growth can sometimes conceal deteriorating underwriting standards, but SoFi's recent credit performance has actually been moving in the opposite direction.
I think the bigger opportunity is that SoFi is gradually becoming much more than a consumer lender because approximately 87% of its products now come from non-lending services, including banking, investing, payments and other financial products.
Lending still contributes roughly 59% of adjusted revenue today which shows how much work remains in monetizing the broader ecosystem but I think that gap also illustrates how significant the long term opportunity could become as existing members adopt additional products and SoFi captures more revenue from each customer relationship.
The other development I think investors should be paying considerably more attention to is SoFi's expansion into digital payments infrastructure because the company is positioning itself to participate in the transition toward blockchain-based financial settlement rather than simply competing for deposits and consumer loans.
Through SoFiUSD, its bank-issued stablecoin, the company has already begun migrating settlement activity across its Mastercard card program onto blockchain infrastructure, with the program expected to process more than $25B in annualized transaction volume which is interesting because SoFi has an advantage that many cryptocurrency-native companies don't possess, which is an established nationally chartered banking operation capable of integrating new payment technology directly into existing financial services infrastructure.
Ultimately I think the strongest argument for SoFi heading into 2027 comes directly from management's financial outlook because the company is guiding for approximately $6.4B in adjusted revenue, $2.24B in adjusted EBITDA and $0.90 in earnings per share next year which represents approximately 27% revenue growth alongside nearly 48% earnings growth compared with its updated 2026 EPS guidance of $0.61 which is exactly the kind of operating leverage I want to see as a growth company begins reaching greater scale.
Of course I don't want to suggest the investment is without risks because consumer credit remains sensitive to unemployment and economic conditions, revenue growth is expected to moderate from roughly 40% in 2026 to 27% in 2027 and its Tech Platform segment continues facing challenges after losing a major customer.
I also think investors need to remember that a growing deposit base and strong capital position don't automatically eliminate credit cycle risks, especially when lending still generates the majority of revenue.
However, what makes SoFi particularly compelling to me is that the company appears to be entering a phase where revenue diversification, lower funding costs and improving operating leverage could begin translating into substantially faster earnings growth than revenue growth.
If management can execute on its 2027 outlook while maintaining credit discipline and accelerating monetization across its broader financial services ecosystem, I think there's a credible argument that SoFi deserves to be valued less like a traditional consumer lender and more like a high growth financial platform with multiple durable earnings engines.
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