SoFi stock (SOFI) has underperformed the S&P 500 Index this year, down 1.4% over the last three months and trading nearly 20% below its all-time high. The company is set to release its Q4 2025 earnings on Jan. 30, hoping to reverse the trend.

The underperformance of SOFI stock since November can be attributed to stretched valuations, a $1.5 billion capital raise in December, and a crypto angle with the relaunch of its cryptocurrency trading business. Analysts have also been bearish on the stock recently.

Despite recent struggles, SoFi remains a structural growth story with a rising member base and innovative products like the SoFi Smart Card account. The company has conservative lending practices and a loan platform business that presents a major opportunity for growth.

SoFi’s valuations may be a sticking point for some investors, but the company’s high share of fee-based revenues and strong revenue growth justify premium valuations. The upcoming Q4 earnings release could be a catalyst for the stock, with expectations for under-promising and overdelivering in line with past performance.

Read more at Yahoo Finance: Can Q4 Earnings Turn the Tide?