SoFi Technologies Inc

Our future operating results and cash flows are dependent upon a number of opportunities, challenges and other factors, including our loan origination volume, financial services products and member activity on our platform, growth in technology platform clients, competition and industry trends, general economic conditions and our ability to optimize our national bank charter. The key factors affecting our operating results are discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, with notable updates provided herein.

Industry Trends and General Economic Conditions

The Federal Reserve decreased the benchmark interest rate several times in 2024, and additional rate cuts are anticipated by many financial market participants in 2025, although the timing of such cuts, if any, remains uncertain. We have continued to see strong demand for our deposits as a result of our competitive interest rate offering and access to expanded FDIC insurance coverage through a network of participating banks in our Insured Deposit Program. High or rising interest rates have unfavorably impacted, and could continue to unfavorably impact, demand for refinancing loan products. In addition, if the Federal Reserve does not effectively curb inflation, interest rates were to rise unexpectedly or too quickly, or macroeconomic conditions deteriorate or do not improve, it could have a negative impact on the overall economy and result in increased unemployment, which could adversely impact our results of operations.

In addition to benchmark interest rate considerations, economic and market volatility may adversely impact our liquidity, results of operations and financial condition. Our credit trends continue to be strong in the first quarter of 2025 after seeing delinquencies peak one year ago in the first quarter of 2024. Annualized charge-off rates decreased year-over-year across portfolios, reflecting improvements in credit quality. Changes or uncertainty persist with respect to the U.S. presidential administration, governmental policies and regulations, and evolving priorities and guidance, and may adversely impact our members, our technology platform clients, our counterparties, and our earnings and operations. Negative changes to macroeconomic conditions may result in decreased demand for our products, increased operating costs and negatively impact our results of operations.

Fair Value of Loans

We measure our personal loans, student loans and home loans at fair value. Our fair value adjustments on loans impact our consolidated results of operations and include adjustments related to loans originated during the period, loans held at the balance sheet date, as well as gains (losses) on loans sold or repurchased during the period. Fair value adjustments made in each reporting period are impacted by factors such as, among others, interest rates, weighted average coupon, credit spreads, actual and estimated losses, prepayment speeds, duration and previous loan sale execution on similar loans. In determining our fair value assumptions, we incorporate recent data impacting the capital markets, as well as factors specific to us. Changes in these factors, either positive or negative, can have a material impact on our results of operations.

The following table summarizes the significant inputs to the fair value model for personal and student loans:

(1)Represents the average coupon rate on loans held on balance sheet, weighted by unpaid principal balance outstanding at the balance sheet date.

As of the first quarter of 2025 relative to the fourth quarter of 2024, we observed the following trends:

•The weighted average discount rates on personal loans and student loans decreased by 42 bps and 18 bps, respectively. For personal loans, our discount rate assumptions decreased in the first quarter due to benchmark interest rates declining by 34 bps and spreads tightening by 8 bps. For student loans, our discount rate assumptions decreased in the first quarter due to benchmark interest rates declining by 38 bps, partially offset by credit spreads widening by 20 bps. Credit spread changes are indicated by asset-backed security and secondary markets.

•The weighted average coupon rates on personal loans decreased by 14 bps, which reflects the impacts of loan sales and rate reduction passed on to borrowers related to drops during the first quarter.

•The conditional prepayment rate on personal loans increased 52 bps, reflecting the impact of observed increases in prepayments during the first quarter.

•Annualized net charge-off rates on personal loans in the first quarter of 2025 were 3.31%, which remained lower than the assumed weighted average default rates in our fair value model of 4.37%. Personal loan charge-offs during each of the first quarter of 2025 and fourth quarter of 2024 were impacted by delinquent loan sales of $90.0 million of aggregate unpaid principal balance. Annualized net charge-off rates on student loans in the first quarter of 2025 of

0.47% were lower than the assumed weighted average default rates in our fair value model of 0.67%. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30 days, 60 days and 90 days past due.

The combination of these and other factors resulted in fair value gains recognized on our personal and student loans portfolios, during the first quarter of 2025 as compared to the first quarter of 2024.

Student Loan Relief

We expect we may continue to see an increase in student loan refinancing volume as borrowers may look to refinance at a lower rate as interest rates decline, or may look to extend the loan term given the high interest rate environment compared to recent historical periods. However, we expect that the timing and impact to our student loan refinancing product will largely depend on other factors, including expectations regarding the impact of the recent change in the U.S. presidential administration, the interest rate environment and how competitive our student loan refinancing products are compared to our competitors and macroeconomic factors.

For example, in the past, the government has provided relief measures for federal student loan borrowers, including, among others, a federal student loan payment moratorium and debt forgiveness measures that were put forward by the Biden administration. In April 2025, the Trump administration announced that it would resume collections activity on its federal student loan portfolio. Although we cannot predict the measures related to student loans, if any, that the Trump administration may pursue, any changes in law, regulations or governmental policies could impact demand for our student loan refinancing products and our business in ways that are difficult to predict.