In the most recent update, I talked about likely trimming some SoFi shares if it crossed $20/share. That has now happened and so I’ve trimmed 14% of my position. The company has more than doubled in the last two months and has raced to 60x forward earnings and a PEG ratio nearing 1x.

And from a fundamental perspective, that move is well-deserved.

They carefully and responsibly managed their balance sheet across a chaotic cycle, while strictly clinging to their ulta-prime niche and rapidly shifting lending revenue to asset light, fee-based sources. They’ve cultivated excellent credit health, which has led to loyal and eager capital market investors. They’ve continued to deliver consistently rapid member growth, rising engagement and an increasingly powerful cross-selling engine… even before unleashing the credit card, crypto and more effectively monetizing the brokerage business. They’ve shown clear signs of a near-future tech platform re-acceleration, as churned clients flock back to them, 10+ deals gear up for 2026 revenue generation, more late-stage deals materialize and the pipeline swells. Despite a mountain of headwinds, ranging from a student loan moratorium, a tech go-to-market overhaul, a massive integration project, a regional banking crisis and 5 points of rate hikes, they’ve generated consistent, margin-accretive and (uniquely) cross-cycle growth. They’ve executed and they’re now being rightfully rewarded.

At the same time, as I frequently talk about, most of this business is still tied to lending in some way shape or form. The model is innately more cyclical than pretty much anything else I own aside from Nu Bank. The core lending segment is 53% of revenue while loan platform (part of financial services) is another 12% of total revenue. While SoFi’s admirably responsible underwriting practices and diverse funding will lead to it faring much better across cycles than peers, they won’t be immune. Capital market buyers will practice some degree of incremental caution and this segment will face headwinds.

So? When the stock doubles over a very short period of time, enjoys multiple expansion and sets multi-year highs, I want to harvest a modest amount of profits. I want to do so during the fun parts of the current cycle, not the challenging parts. I remain very optimistic about this company’s future and would welcome the opportunity to resume adding to my stake if the stock price cools off a bit. It is likely due for a breather, but we’ll have to see if that comes.

The two charts below are identical. The second is included because the primary source from Schwab is hard to read.