Key Points
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SoFi Technologies shares have declined significantly since late 2024, as investor enthusiasm for the company’s growth prospects has waned.
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Investors should recognize the growth potential in SoFi’s two financial technology businesses: Galileo and Technisys.
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At scale, SoFi’s Technology Platform segment could deliver substantial value to shareholders and represents a potential catalyst for the business.
Based on the latest earnings report for SoFi Technologies (NASDAQ: SOFI), the digital-first financial services company continues to post strong growth. However, since late 2024, investor sentiment toward SoFi and its future prospects has turned notably bearish, with the stock falling approximately 50% from its 52-week high.
Factors including the company’s decision not to raise guidance have contributed to this decline. Nevertheless, SoFi’s embedded fintech business remains a compelling story often overlooked by the market.
Image source: Getty Images.
SoFi has been quietly building a fintech powerhouse
In recent years, SoFi has focused on transforming into a “financial supermarket” serving affluent millennials and Gen Z consumers. Prior to this shift, the company invested heavily in building fintech capabilities. This began in 2020 with the acquisition of Galileo, a back-end technology provider for payments and financial transactions, for $1.2 billion, followed by the 2022 purchase of Technisys, another fintech infrastructure company, for $1.1 billion.
Since these acquisitions, SoFi’s Technology Platform segment has scaled steadily. From 2022 to date, segment revenue grew 42% to $450.2 million from $315.1 million, while contribution profit nearly doubled to $144.4 million from $76.5 million.
Although the technology platform segment recorded negative growth in the first quarter of 2026—revenue fell 27% and contribution profit dropped 61%—this temporary setback masks longer-term potential. The decline stemmed from losing a major client, though SoFi is streamlining operations by unifying Galileo and Technisys under the SoFi Technology Solutions brand.
A significant value creation opportunity
Despite the recent client loss, the platform continues winning new customers. CEO Anthony Noto noted last year’s addition of 10 new clients across expanding verticals, including payment cards for travel and hospitality companies.
If this segment resumes steady double-digit annual growth, SoFi Technology Solutions could evolve into a $1 billion business. This scaling potential creates meaningful value given how markets value fintech versus traditional banking. While established banks like JPMorgan Chase trade at roughly 14x earnings, pure-play payment technology companies like Adyen command forward multiples in the mid-20s or higher.
To unlock this value, SoFi could potentially spin off the technology platform segment. Though this remains an early-stage possibility, it’s a compelling consideration for investors evaluating the recent stock pullback.
Should you buy stock in SoFi Technologies right now?
The path forward for SoFi depends largely on execution in its technology platform business. Investors will want to monitor client retention, new customer acquisition, and the company’s ability to achieve consistent growth as it integrates its fintech infrastructure.
