SoFi Technologies Inc

For the three months ended March 31, 2025 and 2024, we recorded income tax expense of $8.7 million and $6.2 million, respectively. The income tax expense recognized in both periods was primarily attributable to the Company’s profitability and discrete tax benefits for stock compensation recorded in each quarter.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination of whether a valuation allowance is necessary, the Company considers all available positive and negative evidence supporting the allowance. In the fourth quarter of 2024 we released a significant portion of our valuation allowance. During the three months ended March 31, 2025, we continue to maintain a valuation allowance in certain state and foreign jurisdictions where sufficient positive evidence does not exist to support the realizability of deferred tax assets. Management will continue to assess the need for a valuation allowance in future periods.