Best Fintech Stocks to Buy in 2026

Sezzle reported Q1 revenue growth of 29.2% year over year, active subscriber growth of 48.4%, and a 37.9% net profit margin, supporting the bull case for BNPL adoption. SoFi also posted record revenue, members, and product growth, with Q1 revenue up 43% and net income more than doubling, but shares fell more than 15% after management kept guidance unchanged due to revised Fed rate-cut expectations. Overall, the article is constructive on fintech fundamentals, with the weaker near-term reaction at SoFi driven mainly by guidance optics rather than operating performance.

Analysis

The key signal is not simply that fintech is growing, but that monetization is holding up while funding conditions are no longer the main narrative driver. For SEZL, the combination of accelerating subscriber growth and rising profitability suggests the company is moving from pure volume capture toward a more durable take-rate model; in BNPL, that usually precedes a step-up in merchant acceptance because merchants tolerate fees better when conversion lift is visibly high. The second-order effect is competitive pressure on smaller BNPL players and point-of-sale lenders that lack Sezzle’s improving unit economics, because the cost of customer acquisition rises faster than the cost of capital in a stable or easing demand environment.

For SOFI, the market appears to be treating unchanged guidance as a signal of slowing fundamentals, but the more important read-through is that management is embedding a higher-for-longer rate regime into planning. That matters because the business mix is increasingly exposed to spread revenue and cross-sell economics rather than just loan growth; if rates stay elevated, near-term NII may be less sensitive than the street expects while deposit franchise value compounds over time. The downside is that the stock may remain sentiment-driven for weeks, but the longer the company continues printing record members and products, the harder it becomes to justify a valuation discount versus traditional banks with lower growth and higher overhead.

The contrarian view is that both names are benefiting from a narrative reset rather than a fundamental step-change in one quarter. SEZL’s margin profile may be vulnerable if merchant incentives rise or credit performance normalizes, and SOFI’s crypto contribution is too small to matter unless retail risk appetite stays strong for multiple quarters. The market is also likely underestimating how much of SOFI’s rerating is tied to visible guidance beats; if that cadence stalls again, the stock can stay cheap even with good operating results.

Key Decisions for Investors

• Long SEZL into post-earnings momentum, but size it as a tactical 4-8 week trade; target continuation if subscriber growth stays above ~40% and gross margins hold, with a stop if the stock gives back the earnings gap on volume.
• Buy SOFI on weakness over the next 1-3 months as a quality growth bank proxy; risk/reward improves if the market keeps pricing in zero Fed cuts, because the core thesis shifts from macro tailwind to execution durability.
• Pair trade: long SOFI / short a basket of regional banks or lower-growth fintech lenders over 3-6 months; SOFI should outperform if rate cuts remain off the table and deposit/product growth keeps compounding.
• For more asymmetric exposure, use call spreads on SOFI rather than common stock; this limits drawdown if sentiment remains pressured while preserving upside if the market re-rates the company on continued record operating metrics.
• Avoid chasing SEZL after strength unless there is a pullback or confirmation of continued margin expansion; the key risk is that BNPL enthusiasm can reverse quickly if credit quality or merchant economics deteriorate.