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 in September and October 2025, citing softening labor market conditions, along with continued, but moderating, inflationary pressures. Many financial market participants anticipate one additional rate cut before year-end, though the timing and magnitude of further adjustments, 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 consumer borrowing costs have weighed on demand for certain loan products, particularly refinancing, although recent Federal Reserve actions could provide incremental relief if borrowing costs begin to ease. If the Federal Reserve does not effectively continue to curb inflation, interest rates were to rise unexpectedly or too quickly, or macroeconomic conditions deteriorate, it could have a negative impact on the overall economy and result in reduced credit demand and affordability, worsening credit quality and delinquencies and weakened consumer confidence, 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 continued to be strong in the third quarter of 2025 after seeing delinquencies peak over one year ago in the first quarter of 2024. Annualized charge-off rates decreased year-over-year across several portfolios, reflecting improvements in overall credit quality. Changes or uncertainty persists 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 operations, earnings and capital. 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 generally 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 third quarter of 2025 relative to the second quarter of 2025, we observed the following trends:

•The weighted average discount rates on personal loans and student loans decreased by 12 bps and 7 bps, respectively. For personal loans, our discount rate assumptions decreased in the third quarter due to benchmark interest rates declining by 10 bps along with credit spreads tightening by 2 bps. For student loans, our discount rate assumptions decreased in the third quarter due to benchmark interest rates declining by 4 bps along with credit spreads tightening by 3 bps. Credit spread changes are indicated by asset-backed security and secondary markets.

•The weighted average coupon rates on personal loans decreased by 6 bps, which reflects the impacts of increased originations and rate reduction passed on to borrowers related to drops during the third quarter.

•The conditional prepayment rate on personal loans increased 45 bps and student loans decreased 1 basis point, reflecting the impact of expected changes in prepayments.

•Annualized net charge-off rates on personal loans in the third quarter of 2025 were 2.60%, which remained lower than the assumed weighted average default rates in our fair value model of 4.33%. Personal loan charge-offs during each of the third, second and first quarters of 2025 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 third quarter of 2025 of 0.69% were slightly higher 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, including in period originations, resulted in fair value gains recognized on our personal and student loans portfolios, during the third quarter of 2025.

Student Lending

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.

Changes in law, regulations or governmental policies related to federal or private student loans could impact demand for our student loan products and our business in ways that are difficult to predict. 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. While student loan repayments resumed in October 2023 for certain federal student loans, beginning in May 2025, defaulted borrowers risked garnished wages, seized tax refunds, and reduced Social Security benefits. In July 2025, the One Big Beautiful Bill Act (Pub. L. No. 119-21) (“OBBB”) was signed into law, which among other provisions, eliminates Grad PLUS loans and imposes lower borrowing limits and restrictions on Parent PLUS loans, starting in July 2026, and establishes new repayment assistance plans. In August 2025, the Department of Education issued proposed rules that would narrow employer eligibility under the Public Service Loan Forgiveness program. We expect these changes could lead to incremental opportunities for SoFi’s student loan products; however, all such outcomes are highly uncertain.