SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs

No-moat-rated SoFi Technologies reported first-quarter earnings that were roughly in line with our expectations, though the company did report slower growth as it takes a more conservative approach to its lending segment. Adjusted net revenue increased 26.2% from last year but declined 2.2% from last quarter to $580.6 million. Meanwhile, earnings per share increased to $0.08 from a loss of $0.05 last year, though this includes a one-time $59 million gain on extinguishment of debt, without which the 2024 earnings per share would have been only $0.02. As we incorporate these results, we do not plan to materially alter our $13 fair value estimate. We see the shares as significantly undervalued.