Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 7 Sept 2026
SOFI· Financial Services
SoFi Technologies
SoFi's negative owner earnings yield and low ROIC indicate a lack of moat and profitability.
Buffett fit
Weak fit
Owner
36
Durability
56
Management
44
Price
7
Score updated 5 Oct 2026 · analysis from 7 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of SoFi, we'd focus on improving profitability and establishing a clearer competitive advantage.
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In 10 years, we'd want to ensure SoFi has developed a durable competitive advantage, such as a strong brand or network effects.
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SoFi's raises concerns, with a high share count CAGR of 21.56% indicating dilution.
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The current of 34.1 and negative yield of -20.15% suggest the stock is overvalued.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 44.71% over 5 years indicates strong growth potential.
- 2 of 76.02% shows efficient cost management in delivering services.
- 3Net debt/EBITDA of -2.07 indicates a net cash position, providing financial flexibility.
- 4Low debt/equity ratio of 0.18 reflects conservative .
Concerns
6- 1 yield of -20.15% indicates negative cash flow generation.
- 2 of 1.07% is significantly below sector top-quintile threshold of 10.6%.
- 3Share count CAGR of 21.56% dilutes existing shareholders.
- 4Interest coverage ratio of 0.5 suggests difficulty in covering interest expenses.
Price history
$15.77-2.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
SoFi Technologies operates through three segments: Lending, Technology Platform, and Financial Services. It offers student, personal, and home loans, alongside cash management and investment services. Despite a strong revenue growth rate of 44.71% CAGR over five years, the company struggles with profitability, as seen in its net margin of 11.22% and a negative yield of -20.15%. The unit economics are challenged by the need to scale profitably in a competitive financial services market.
How this analysis has moved
The call has held across 3 reviews.
Sep 27, 2026 → Oct 5, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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