SoFi Earnings: Growth in Deposits and Personal Loan Originations Drives Another Strong Quarter

No-moat-rated SoFi Technologies reported strong second-quarter results as it enjoyed strong deposit growth and personal loan originations. Net revenue increased 37% from last year to $498 million, and increased revenue against fixed costs led to better margins, with net loss improving to $47.5 million from $95.8 million last year. As we incorporate these results, we are increasing our fair value estimate to $14.50 per share from $14. Roughly half of the increase reflects the time value of money since our last update, while the remainder is due to lower near-term expense growth projections as we now expect SoFi to be profitable during 2024.