As fintech stocks diverge, investors are weighing SoFi Technologies’ rapid rise as a profitable digital bank against Upstart’s volatile AI-powered lending model, which promises long-term growth but carries higher risk amid shifting market conditions.
Both companies reflect how technology continues to reshape finance, but they are doing so in very different ways. SoFi has built momentum as a digital-first banking platform with growing profits, while Upstart is betting on AI to rewrite how credit decisions are made, accepting higher volatility along the way.
Sofi’s Rise as a Profitable Digital Bank
SoFi’s appeal lies in execution and scale. The company’s adjusted net revenue jumped 126% between Q3 2022 and Q3 2025, fueled by rapid customer growth and smooth digital user experience in an industry known for commoditized products.
That growth is now translating into profits. After posting adjusted net income of $227 million in 2024, SoFi expects that figure to nearly double to $455 million in 2025, an extraordinary turnaround from an adjusted net loss of $54 million in 2023. Its digital-only model is proving highly scalable, allowing costs to grow far more slowly than adjusted net revenue.
Innovation has also become part of SoFi’s growth story. The most recent ones include a collaboration with Lightspark for the implementation of low-cost cross-border payment functionalities on the Bitcoin Lightning network, in addition to the crypto trading feature.
All these new features are specifically targeting younger, richer individuals, and again show SoFi’s status as a comprehensive “super app.”
This has made fintech stocks and market performance rather attention-grabbing. SoFi’s stock has risen by more than 400% in the last three years, indicating its commitment to a more definitive roadmap towards sustainability.
Upstart’s AI Bet Comes with Higher Risk
Upstart’s story is more volatile but potentially transformative for fintech stocks. For more than a decade, the company has developed an AI-driven lending model that evaluates thousands of borrower variables, far beyond the traditional FICO score’s five factors. The company says this approach can approve more borrowers while maintaining default rates, a claim that has attracted over 100 lending partners.
After a difficult period, growth for fintech stocks has returned.
In Q3 2025, transaction volume rose 128% and adjusted net revenue climbed 71%. While personal loans remain central, auto loans and home equity lines of credit surged 357% and 324% year after year, signaling expansion into much larger lending markets.
However, profitability is a work in progress. Upstart is currently projected to achieve a net income of $50 million on a Generally Accepted Accounting Principles (GAAP) basis in 2025. This is a marked improvement over the net loss of $129 million that the company incurred in 2024 but untested over a complete business cycle.
Fintech stocks are more optimistic about the stock price upside in the case of Upstart, although there is uncertainty associated with it. SoFi is valued higher with predictable profit and growth prospects.
Ultimately, it all comes down to risk tolerance: You can get visibility and size with SoFi, while you get AI-fueled ambition with Upstart and all that comes with it.
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