SoFi Earnings: Deposit and Loan Growth Drive Net Interest Income as Losses Narrow

No-moat-rated SoFi Technologies reported solid third-quarter earnings as strong deposit and loan growth drove results higher. Net revenue increased 27% from last year and 7.9% from last quarter to $531 million. Excluding a $247 million goodwill impairment expense, net losses narrowed to $19.5 million from $74.2 million last year. With the release SoFi also raised its 2023 net revenue guidance from between $1.974 billion and $2.034 billion to $2.045 billion and $2.065 billion. Given the updated guidance, we think it is now likely that SoFi will achieve its goal of GAAP profitability by the end of 2023. While these were good results, we do not expect to materially alter our $14.50 fair value estimate for SoFi.