SoFi Technologies, Inc.

For the three and six months ended June 30, 2025 and , we recorded income tax expense of $14.9 million and $23.6 million, respectively. For the three and six months ended June 30, 2024, we recorded income tax (expense) benefit of $2.1 million and $(4.1) million, respectively. The income tax expense recognized in 2025 is 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 six months ended June 30, 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.

On July 4, 2025, the OBBB was enacted into law, which included certain modifications to U.S. tax law. The Company is currently evaluating the provisions of OBBB but does not expect it to have a material impact on our consolidated financial statements.