SOFI

SoFi has crossed the durability threshold that long doomed it: after net losses every year from FY2021 to FY2023 (-$484M, -$320M, -$301M), it printed positive net income of $499M in FY2024 and $481M in FY2025, while the topline kept compounding. MD&A frames the year as 'the strongest financial performance in the history of the company,' citing total net revenue of $3.6B (+35%) and record fee-based revenue of $1.5B (+59%) driven by the Loan Platform Business, interchange and brokerage fees. The balance sheet has firmed materially — stockholders' equity up 60.8% to $10.5B and cash up 94.2% to $4.93B — and a liabilities/equity ratio of 3.83x is normal for a bank holding company rather than a sign of stress. Management also flags improving credit: delinquencies peaked over a year ago in Q1 2024 and annualized charge-off rates fell year-over-year, with personal-loan weighted-average default at 4.46%.

The catch is that none of this profitable growth reached per-share owners. Diluted EPS was $0.39 in both FY2024 and FY2025 — flat — because the share count grew 16.3% to 1.28B, so equity holders are running to stand still. At $17.91 that is a 45.9x P/E against a return on equity of just 4.6%, a demanding price for a bank-like franchise earning low single-digit returns on its growing equity base. The headline net margin of 77.7% and P/S of 36.9x are artifacts of the partial XBRL revenue line ($619M) versus the $3.6B total net revenue management actually reports, so I do not lean on them; the honest read is that the multiple is full relative to demonstrated per-share earning power. Reported operating cash flow of -$3.74B is a function of holding originated loans at fair value on the balance sheet (a growing lender's working-capital draw), not operational decay, but it does mean growth is capital-intensive and dilution-prone.