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, 2025, with notable updates provided herein.

Industry Trends and General Economic Conditions

The U.S. economic environment continues to be influenced by evolving monetary policy, inflation trends, labor market conditions and broader geopolitical developments. Economic growth has remained positive, but the pace and durability of growth remain subject to uncertainty. Inflationary pressures have moderated from prior peak levels but remain above the Federal Reserve’s longer-term objective, with renewed pressure from energy prices, supply-chain conditions and trade policy. Geopolitical developments, including the ongoing conflict in the Middle East and related disruptions to energy markets and global trade routes, have contributed to volatility in oil prices and broader financial markets. Sustained increases in energy prices or renewed inflationary pressures could adversely affect consumer purchasing power, economic growth and financial market conditions.

In May 2026, Kevin Warsh became Chair of the Federal Reserve. The Federal Reserve has continued to emphasize a data-dependent approach to monetary policy, balancing its objectives of achieving maximum employment and restoring price stability. In September 2026, the Federal Reserve increased the target range for the federal funds rate by 25 basis points to 3.75% to 4.00%. The future direction and timing of additional changes in interest rates remain uncertain and will depend on incoming inflation, employment and economic data. These conditions have contributed to continued volatility in benchmark interest rates, credit spreads and capital markets.

Changes in interest rates and broader macroeconomic conditions directly influence consumer spending, saving, borrowing and investing behavior. Elevated interest rates and affordability pressures have reduced demand for refinancing products and may continue to affect demand across certain lending products. A potentially weakening labor market, higher energy costs and elevated household expenses may also affect consumer liquidity, repayment behavior and credit performance. Interest rate volatility influences the economics of our capital markets activities, including loan pricing, funding costs, gain-on-sale margins and investor demand for consumer credit assets. In addition, changes in benchmark interest rates, inflation expectations, credit spreads and market liquidity may affect the pricing, execution and liquidity of loan sales and securitization transactions.

Our results of operations have historically demonstrated relative resilience during periods of economic stress, supported by our diversified business model. However, our future operating results, financial condition and cash flows remain dependent upon the strength of the overall economy, consumer financial health, employment conditions, the performance of our loan portfolios, the condition and liquidity of the capital markets and our ability to continue executing our business strategy. Changes in macroeconomic conditions could adversely affect loan demand, credit performance, funding costs, capital markets execution and the value of financial assets.

Fair Value of Loans

We measure our personal loans, student loans, home loans, and small business loan 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 2026 relative to the second quarter of 2026, we observed the following trends:

•Personal loan marks were down from the prior quarter, driven by an increase in the weighted average discount rate which was due to a higher benchmark rate, as well as a modest decline in weighted average coupon rate and modest increases in the weighted average annual default rate assumption and weighted average prepayment rate.

•The personal loan annualized charge-off rate decreased to 2.26% from 2.62% in the prior quarter. This was driven by an improvement in the underlying performance as well as strong growth in average loans.

•Student loan marks were down from the prior quarter, driven by an increase in the weighted average discount rate due to a higher benchmark rate, as well as an increase in the weighted average annual default rate, partially offset by a decrease in the weighted average prepayment rate and a modest increase in the weighted average coupon rate.

•The student loan annualized charge-off rate increased modestly to 63 basis points from 61 basis points in the prior quarter.

The combination of these and other factors, including in period originations, resulted in fair value losses recognized on our personal and student loans portfolios, respectively, during the third quarter of 2026.

Student Lending

Changes in demand and loan volume for our student loan refinancing product and our in-school student loans could be affected by a variety of factors affecting students, schools, and the overall economy, including the overall interest rate environment, employment market, school tuition and admissions, executive actions by the U.S. presidential administration related to federal student loans, how competitive our student loan products are compared to our competitors and other macroeconomic factors.

Changes in law, regulations or governmental policies related to federal or private student loans could materially 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. The manner in which federal loans require repayment and federal loan servicers implement such policies can be expected to affect demand for SoFi student loan refinancing. Additionally, in July 2025, the One Big Beautiful Bill Act (Pub. L. No. 119-21) (“OBBB”) was signed into law, which included provisions to eliminate federal Grad PLUS loans, impose lower borrowing limits and restrictions on Parent PLUS loans, starting in July 2026, and establish new repayment assistance plans. We expect these changes could lead to changes in demand for SoFi’s student loan products. All such outcomes are highly uncertain and depend on additional factors not specified here.