SoFi Partners with Templum to Offer Exclusive Private Market Access, Highlighting Growth Focus Amid Valuation Concerns

What happened

SoFi has launched an exclusive partnership with Templum to provide accredited investors with access to private investments in Epic Games and Stripe through the Cosmos Fund during a limited December 2025 window. This move aims to expand SoFi's financial services offerings, potentially increasing fee-based revenues and attracting higher-net-worth members. However, it comes against the backdrop of SoFi's already rich valuation, with a P/E of ~54x and EV/EBITDA of ~80.7x, as detailed in recent filings. The company has shown progress with GAAP profitability and member growth, but its free cash flow remains volatile and mostly negative, raising questions about sustainability. While this initiative aligns with SoFi's strategy to deepen engagement, it does not directly address core issues like low interest coverage of 0.36x or the need for consistent cash generation.

Implication

1. The initiative may enhance SoFi's product breadth, driving incremental fee revenue from accredited investors and supporting the Financial Services segment's growth. 2. However, the financial impact is likely limited relative to SoFi's larger lending and technology platform businesses, which contribute more significantly to earnings. 3. Investors should remain cautious, as this move does not improve key metrics like interest coverage or free cash flow stability, which are critical for value assessment. 4. It reflects management's aggressive expansion tactics, which could strain resources and add regulatory complexity without guaranteed returns. 5. Ultimately, the partnership underscores SoFi's growth narrative but reinforces the need for evidence of durable profitability before justifying current premiums.

Thesis delta

This news does not materially shift the investment thesis, as it aligns with SoFi's existing strategy to diversify revenue streams but does not address fundamental weaknesses. The core concerns—high valuation multiples, volatile cash flows, and credit exposure—remain unchanged, maintaining the 'WAIT' recommendation. Investors should continue monitoring for sustained improvements in free cash flow and fee-based revenue share before considering a more bullish outlook.