SoFi vs. Upstart: Which Fintech Lending Stock Fits Your Portfolio Best?
- SOFI
- UPST
SoFi Technologies, Inc. SOFI and Upstart Holdings, Inc. UPST both sit at the intersection of consumer lending and financial technology. Each uses data, automation and digital distribution to make credit easier to access, while both are trying to widen their product sets and expand repeat customer relationships. Their second-quarter results also showed fast revenue and origination growth, giving investors two very different ways to participate in a healthier fintech lending cycle.
SoFi operates a regulated, deposit-funded financial platform spanning lending, banking, investing, payments and technology services. However, Upstart is primarily an AI-driven lending marketplace that depends more heavily on bank, credit-union and institutional capital partners to fund loans.
This makes SoFi more diversified across revenue sources, while Upstart is more directly exposed to credit demand, funding appetite and macro-driven default risk. The key question is which business model offers the stronger balance of growth, earnings durability and risk now.
The Case for SOFI
SoFi entered the second half of 2026 with strong operating momentum. Second-quarter adjusted net revenues rose 40% year over year to $1.21 billion, while adjusted EBITDA climbed 44% to $358 million. GAAP net income reached $157 million, showing that rapid growth is now arriving alongside meaningful profitability rather than replacing it.
The customer engine also looks healthy. Members increased 35% to 15.8 million, products rose 42% to 24.4 million, and 51% of new products were opened by existing members. This matters because SoFi can spread acquisition costs across more services, which is a structural advantage over Upstart’s more credit-centered operating model.
Diversification is another key strength for SOFI. Financial Services and Technology Platform revenues together reached $551 million, or 46% of adjusted net revenues, while fee-based revenues totaled $472 million. SoFi is also expanding investing options, including new private-market funds from CAZ Investments and AngelList, giving members more reasons to stay within its ecosystem.
Lending remains important, but SoFi has more funding flexibility. Total originations hit $14.8 billion, including $3.1 billion through its loan platform business. Deposits reached $45.5 billion, supporting a 5.98% net interest margin. Compared with Upstart, SoFi can combine balance sheet lending with partner-funded originations instead of relying mainly on outside capital.
However, the main risk is that personal lending remains a major earnings driver, leaving SoFi exposed to credit and rate changes. Even so, management raised 2026 adjusted net revenue guidance to $4.75 billion to $4.85 billion while maintaining profitability targets. The broader model gives it more room to absorb lending volatility.
