The #1 number in $SOFI's earnings that made me buy

Añadido: 2026-05-23

[00:00:00]Today I'm going to be sharing you the number one number I saw in the earnings which made me increase my position in SoFi this week. Now it's been down roughly 40% in 2026. And yet buried inside the last quarter's earning report, there was one number I was specifically excited about. A number so elite, so rare, and so durably consistent that most of the market scrolled right past it. That number was 72. And today I'm going to show you exactly what it means and why it changes everything for the stock going forward.

[00:00:29]There's going to be three main things I cover in this video that you're going to walk away with. So what the rule of 40 score of 72 actually is. I'm going to simplify this down so you understand it.

[00:00:39]Why that number makes SoFi look genuinely undervalued right now. And if you hang around to the end, I'm going to show you exactly how that number was built and the word for word quotes from the SoFi CEO and CFO about what they think it means. Let's get into today's video.

[00:00:59]>> And if you don't know who I am, my name is Mikuel and I bring you videos here every single day for stocks that can five and 10x. And over the last 4 and 1/2 years here at XM, we have built a software called the autopilot. What that essentially does, it allows our team of professional traders to send signals through to your account to take the trades we're taking. One of the best things about this is we average anywhere from 5 to 15% returns every single month. And on top of this, you never have to send us money. Your money stays inside of your brokerage account all the time. We're partnered with Interactive Brokers to be able to do this for you because we know after hundreds of conversations over the years, on average, people who get into short-term trades lose anywhere from $10 to $20,000 just learning. And most of them aren't even profitable in the long term. What we do is we solve that. We remove all that time, all that money you spend learning in the markets and our team can trade for you. Now, we're also big believers if you only do one thing, you do it all the time, you get really damn good at it. So, we only trade the US stock market and we only trade options.

[00:01:58]To give you a bit of a look at what's been happening this week and this month inside of the autopilot software, I'll walk you through our members area now.

[00:02:04]So, you can see here just yesterday, we took an AOPD trade that we had a 30% profit margin on that. If we scroll up a little bit, yesterday we shared a bit more of a long-term hold on two on there coming into their earnings and we saw the stock move up 14% after the earnings call came out. We had an INTC trade 24% here. We had a now trade 10% profit here and last week was was just above a break even week. You know, it comes with the territory. This is the reality of short-term trades. And just up here, if we go to May, we had a 41% profit margin on that. Now, we are launching an autopilot V3 shortly. The price will go up. spots will be limited, but if you want to find out how our team can trade completely hands-off for you, click the link below or go to x10daytrade.com and book a call with me personally. I'll walk you through the entire thing, all our trades, all our trade history, and what our projections look like in the future. And also to make sure it's in alignment for what you're looking for.

[00:02:56]Outside of that, let's get stuck into today's video. Picture this. You open a company's earning report, it's a wall of numbers. Revenue, margins, gross profit, net profit, members, loans, earnings per share. And most people's eyes slide right off. But once in a while, hidden in that wall, there's one number. One number that, if you actually understand it, makes you sit up straight, put your coffee down, and go, "Wait, this is not normal." For SoFi's most recent earnings, that number was 72.

[00:03:23]Specifically, a rule of 40 score of 72.

[00:03:27]If you've never heard of the rule of 40, don't worry. I'm going to make it the easiest thing you've ever learned. When you look at a growing company, there are really two things you care about. First is how fast is it growing? Is money coming in faster this year than last year? Second is, is it actually making money or is it growing while bleeding cash? Now, here's the catch in this.

[00:03:48]These two things usually fight each other. A company can grow really fast if it's willing to spend like crazy and forget about profit. or it can be very profitable if it stops spending aggressively, but then growth slows down. Fast growth or strong profit, pick one. That's the normal trade-off. The rule of 40 cuts through that in 1 second. Take the company's revenue growth rate as a percentage. Add the company's profit margin as a percentage.

[00:04:14]Then, if you add them together, above 40 means healthy and doing well. Below 40, something could be off. And hitting 40 at all is genuinely hard. Most companies, even famous well-run ones, fail the rule of 40 in any given quarter. It is an elite benchmark. So now, Sofi's rule of 40 score in Q1 2026, it wasn't 40, it wasn't 30, it wasn't 50 or 60. It was 72, nearly double that of an elite bar metric. But here's exactly how it's built. So there's two main things that go into this, right? So's revenue growth, 41% year-over-year.

[00:04:49]That's the growth side. The second part of this is SoFi's profit margin 31%.

[00:04:54]That's the profitability side 41 31 simple math we get 72 right now. Feel what that actually means. Remember the trade-off fast growth or strong profit.

[00:05:03]So if I didn't pick one so far is growing revenue at 41% a year. The kind of growth you'd expect from a hot young startup and running a 31% profit margin.

[00:05:13]The kind of fat margin you'd expect from a mature money printing company. Both at the same time. That combination is genuinely like very very rare and you need to take a second look and a second glance to make sure this adds up. And there's a key detail that takes you from impressive to you need to pay intention.

[00:05:31]See for this this was not a one-time fluke. The CEO Anthony Nodo opened the earnings call and the first metric out of his mouth was the rule of 40. So far had now beaten it 18 consecutive quarters. See any company can have one lucky quarter. stringing together 18 in a row through interest rate swings, through macro chaos and market noise.

[00:05:53]That in itself is not luck. That is a machine consistently executing on what they're here to do. And here's what the bears really don't want you to notice in this. The score is going up. Q4 2025, the rule of 40 score was 68. We can see here Q3 2025, it was 64. You can see it progressing every quarter. I have here laid out for you. Now, the company is not slowing down. It's actually accelerating. Now, is it growing fast?

[00:06:18]Yes. 41 points of growth inside it. Is it profitable? Yes. 31 points of margin inside of it as well. The rule of 40 tells you about the health of the whole company in a single glance. And that is why it's a number that really really matters and it needs to be taken into context. So, when you're looking at earnings from companies, you can start to look and use the rule of 40 and then see how consistently is this happening.

[00:06:40]Did they sandbag a quarter? Did we only get it for one quarter because because there was compounded acquisition costs in one quarter which allowed the next quarter to look better than what it actually is. This is a way you can look at this but you need to look at this over multiple quarters at time to get a proper picture of the company. Now one of the deeper questions in this is why does a score of 72 make SoFi look so undervalued. There's three main reasons here. Now the stock price is trading right now around 1570. Right now at closing it was 1565. So profit growing at 62% underlying value per share growing at 57% all pointing in opposite directions when performance and price point in opposite directions one of them has to be wrong. The first reason is the market is pricing so far like a slow sleepy bank. Every stock trades at a valuation basically how much investors are willing to pay for every dollar of the company's earnings. A traditional bank slow growing boring. A lender gets a low valuation. A fast growing tech platform gets a high valuation. But there's a key problem in here. the market is currently looking at so far and slapping a cheap bank price tag on it. But a company growing at 41% a year with 31% margins does not behave like a sleepy bank. It behaves like a tech platform. A score of 72 is the statistical fingerprint of the expensive category wherein the price tag of the cheap category. The mismatch is reason number one. Reason two, 18 quarters earns a durability premium, not a discount. The market pays up for reliability and pays down for uncertainty. See, 18 consecutive quarters above the rule of 40 is dependable and elite execution for 4 and 1/2 years. That consistency should earn so far a premium valuation. Instead, the market is handing it a discount as if the results were unreliable. See, the market is applying a skepticism discount to a company that has earned a durability premium. That backwards pricing is reason number two. Reason number three, the 72 is made of real cash, not accounting smoke. A smart skeptic might hear 41% revenue growth and ask, "Is that real or is it just an accounting illusion?" Right? What is actually left after all of that revenue growth? So anticipated that exact question and they've absolutely crushed it. For the very first time, SoFi disclosed something called cash reserve.

[00:08:49]The CFO showed that SoFi generated over 1 billion of actual literal cash in a quarter. 690 million from interest paid by members, 390 million from fees, cards, brokerage, tech platform, and loans. Add those up, it's 1 billion plus. And that cash figure was essentially equal to SoFi's total reported revenue for the quarter. In plain English, what does that mean? The 41% growth is backed dollar for dollar by real cash. High quality performance at a discounted price. That's the textbook definition of undervalued. Let me put a concrete frame on the size of this gap. Think about two imaginary companies. Company A, 4% revenue growth, 5% profit margin. Rule of 40 score of 9.

[00:09:30]A genuinely sleepy bank market pays maybe 11 times earnings. Company B, 41% revenue growth, 31% profit margin. Rule of 40 score is 72. The market routinely pays 35, 40, 50 times earnings for that profile because it's so rare. So far is company B score. So why is it trading closer to company's a price tag? There is no fundamental good answer for this.

[00:09:53]The only answers are sentiment, fear, and distraction. See, the market got spooked by short-term noise and hasn't done the work of recognizing what the 72 actually represents. Sentiment and fear are temporary. A 72 rule of 40 score is structural. When something temporary suppresses the price of something structural, that historically is where opportunity lives. Now, let's look at the other side. I like to look at all these things objectively, right? the honest counterargument because good analysis means looking at both sides. So when Sofi reported this elite quarter, the stock dropped, a slice of fee based revenue came in lighter than some analysts wanted, partly because SoFi deliberately chose to hold more loans on its balance sheet to earn long-term interest rather than quick upfront fees.

[00:10:37]See, SoFi also flagged a lost technology platform customer, and the whole fintech sector was having valuations compressed.

[00:10:44]These are real concerns. I'm not waving them away at all, but none of those concerns change the 72 number. None of them break the 18 quarter streak, and none of them undo the 41% revenue growth and the 31% margins. The market was a teacher that was distracted by the messy handwriting and ignored the 18 straight A's they have delivered. So, when the market grades a straight A company on its handwriting, the stock gets cheap.

[00:11:08]My analogies sometimes aren't that great. So, if that landed, awesome. If it didn't, help me out with some analogies in the future. Yeah. The third part of this is how this number really comes together. Like how was this 72 actually built and what did SoFi's CEO and CFO choose to stress about it?

[00:11:25]Because there's a tip in this earnings call and what management leads with. The very first thing out of their mouth tells you what they're most confident about. The CEO opened the Q1 2026 earnings call in late April and he did not lead with members. The very first metric out of his mouth was the rule of 40. his exact words, we've achieved 18 consecutive quarters of exceeding the rule of 40, far exceeding it again this quarter at 72 with 41% revenue growth, 31% EB margins. When other companies are stumbling, our revenue growth is accelerating. Every piece of that is deliberate and thought out. He leads with the streak establishing durability.

[00:11:59]He gives the score and immediately breaks it into two parts. And word for word when he said, "When other companies are stumbling, our revenue growth is accelerating." directly contrasting so far against the rest of the market.

[00:12:11]Other companies struggling so far is speeding up. It's accelerating. Now he also said that our strategy and execution continue to be unmatched by any company I can think of at our scale and put SoFi in a class of one. A class of one. This is not vague corporate language. This is a CEO saying flatly he cannot think of another company at SoFi's size executing at this level. And crucially, it's not just a Bose. It's bolted to a specific verifiable mathematical number. When a boast is anchored in hard math, you can actually check it. And the math actually checks out. Now, the CEO, which is the numbers guy, right? He opened this section by the call by saying, "Our innovation in brand building is powering exceptionally strong revenue growth. In the first quarter, adjusted net revenue grew 41% to 1.1 billion." This is a further acceleration in the growth rate from the prior quarter. There's that word again, acceleration. the CFO, the careful numbers guy confirming the growth rate didn't just stay strong, it sped up.

[00:13:11]Then he did something even more powerful after this. He introduced the brand new cash revenue disclosure. 690 million in interest income plus 390 million in fees equals over a billion dollars of real cash. He explained exactly why that matters. See, different companies use different accounting methods, but at the end of the day, cash is cash counted the same way for every company on Earth. And SoFi's $1 billion cash reserve was essentially equal to its total reported revenue. The CFO was handing investors the receipts, preemptively destroying the skeptic's best attack. But the engine underneath it all is so far added a record 1.1 million net new members in Q1. 14.7 million total members, up 35% year-over-year. And 43% of new products were opened by existing members. Like I mentioned, that's a flywheel. Members join, they trust Sofi, they open a second product, a third, a loan, a card, whatever that is. More products per member means more revenue per member at almost zero extra cost. That compounding machine of members going deeper is the deep engine generating the 41% growth.

[00:14:16]That is half of the 72. So if we bring this home today, the first part is the number, the rule of 40 score of 72. 41% revenue growth, 31% profit margin, nearly double what the elite bar is.

[00:14:28]They've had 18 straight quarters. They have been executing and I personally believe right now this is undervalued.

[00:14:35]This is one of the key reasons why I extended a much bigger position this week into this stock. Now, if you're in the game and you have a position, it comes with risks like all investments do. SoFi is still significantly a lender. Credit losses are real if the economy turns. The streak doesn't promise a 19th quarter. An undervalued stock can stay undervalued far longer than logic suggests. The data points in this direction, but track the risks. Do your homework. And as always, this is not financial advice. I'm bringing these videos to you every single day to help you deeply understand these stocks so you can adjust your exposure. You can adjust your risks or you can increase your position in these. Going forward, I'm going to be bringing you videos every single day on here. So, go down, give the subscribe button a bit of a tickle. I noticed on my channel is 80% of my viewers don't even subscribe. And, you know, I'm not my feelings aren't going to get hurt by that. But if you enjoy these videos, and you obviously do if you stay around to the end, just hit the subscribe and I'll see you in a video again tomorrow. Appreciate your time.