Has the SoFi stock sale created a long-awaited buying opportunity?

Shares of SoFi Technologies ( SOFI ) have seen significant selling pressure despite the financial technology company delivering strong quarterly results. It has fallen 22% over the past month and is now trading nearly 35% below its 52-week high.

Much of the recent weakness in SoFi stock appears to be driven by sentiment. After a strong rally in early 2025, valuation concerns emerged, causing some investors to take profits. At the same time, concerns about potential dilution tied to recent capital raises and macro uncertainty weighed on shares. Together, these factors have overshadowed a period of significant operational progress for the company.

However, for long-term investors, this sharp correction in SoFi stock may be exactly the opportunity they’ve been waiting for. SoFi’s core businesses continue to perform well, and the company remains well-positioned to maintain solid growth momentum through 2026.

Investors worry that SoFi’s recent capital raises could dilute shareholder value. However, these concerns seem overblown.

SoFi recently stated that the capital it raised brought real value to the business. Its tangible book value (TBV) has grown to $8.9 billion in Q4 2025 from $3.3 billion at the end of Q1 2023. Per share, TBV increased to $7.01 from $3.49 during the same period.

The company also used the money it raised to reduce financing costs. A large portion was used to pay down expensive debt, which immediately reduced interest costs. The rest was invested in income generating assets. By the end of 2025, SoFi had completely exited high-cost financing tied to personal and student loans, leaving the company with a cheaper financing structure.

Financially, this change is important. Lower interest expense and higher interest income are expected to drive net interest income. These earnings can help offset dilution from the issuance of new shares and could even increase earnings per share.

Overall, SoFi’s recent capital raises create financial flexibility, support growth and improve profitability. With a stronger balance sheet and more options to invest and expand, management believes the company is better positioned to generate long-term shareholder value.

Despite investor concerns, SoFi is well positioned to deliver strong growth in 2026. The company’s biggest strength is its rapidly growing customer base. In the most recent quarter, SoFi added more than one million new members, bringing its total membership to 13.7 million. This is a 35% increase from a year ago and shows the growing adoption of SoFi’s all-in-one platform, which combines banking, investment, lending and technology services.

Growth doesn’t just come from new customers. Total products reached 20.2 million, up 37% year-on-year (YOY), and around 40% of new products were used by existing users. This means customers are using more SoFi services over time, helping to increase revenue without sharply increasing customer acquisition costs.

SoFi is also shifting to more fee-based businesses, which tend to be more scalable and profitable, thereby reducing its reliance on loans. Its financial services and technology platform segments grew revenue 61% year over year in the fourth quarter. Fee-based income rose 50% and now stands at nearly $1.8 billion annually, which should make earnings more stable.

At the same time, loans remain healthy. Loan income increased 15%, driven by higher interest margin. In addition, deposits increased to $37.5 billion, reducing funding costs and profitability continues to improve. Taken together, these trends support a positive investment outlook for SoFi.

Despite the recent selloff, analysts are maintaining a consensus “Hold” rating on SoFi stock. However, the fundamentals remain strong. SoFi’s growing membership and product base, strength in fee-based earnings, continued momentum in the lending segment, and increasing low-cost deposit base bode well for growth in 2026. Additionally, the recent decline in SoFi’s share price has eased earlier valuation concerns and provides an attractive entry point.

As of the date of publication, Amit Singh had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com

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