Another Strong Quarter for SoFi as Interest Income and Momentum in Financial Services Drive Results

No-moat SoFi Technologies reported strong third-quarter earnings that came in above our expectations, as its recently acquired bank charter and rising interest rates continue to drive impressive net interest income growth for the company. Net revenue increased 56% from last year and 16.8% sequentially to $424 million. That said, the company remains unprofitable, losing ($0.09) per share compared with ($0.05) last year, which benefited from a $64.4 million fair value adjustment, and ($0.12) last quarter. As we incorporate these results, we do not plan to alter our $15 fair value estimate.