What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-09 compared with 2022-05-10 · 589 added, 398 removed, 829 unchanged (54% of the section changed)

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Everything we do today is geared toward helping our members “Get Your Money Right” and we strive to innovate and build ways for our members to achieve this goal.

Our three reportable segments and their respective offerings as of March 31, 2022 were as follows:

Our three reportable segments and their respective offerings as of June 30, 2022 were as follows:

Lending Technology Platform Financial Services

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Additionally, our mobile app and website have a member home feed that is personalized and delivers content to a member about what they must do that day in their financial life, what they should consider doing that day in their financial life, and what they can do that day in their financial life.

Since our inception through March 31, 2022, we have served approximately 3.9 million members who have used approximately 5.9 million products on the SoFi platform.

Since our inception through June 30, 2022, we have served approximately 4.3 million members who have used approximately 6.6 million products on the SoFi platform.

SoFi Technologies, Inc.

We offer our members a suite of financial products and services, enabling them to borrow, save, spend, invest and protect their finances across one integrated platform.

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National Bank Charter.

In February 2022, we closed the Bank Merger, pursuant to which we acquired all of the outstanding equity interests in Golden Pacific and its wholly-owned subsidiary, which is a national bank.

In February 2022, we closed the Bank Merger, pursuant to which we acquired all of the outstanding equity interests in Golden Pacific Bancorp, Inc.

and its wholly-owned subsidiary, Golden Pacific Bank, a national bank.

Upon closing the Bank Merger, we became a bank holding company and Golden Pacific began operating as SoFi Bank.

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As a bank holding company, we allow existing members to convert their SoFi Money cash management accounts into SoFi Checking and Savings accounts held at SoFi Bank, which allows us to offer both checking and savings features and higher interest rates on the accounts, and through which SoFi Bank can use the deposit accounts as an alternative and more cost-effective source of funding for loans, as compared to our loan warehouse facility financing arrangements.

Additionally, through SoFi Bank, we expect to, among other things, issue debit cards and provide ACH, check, and wire transaction services over time.

Further, we began to originate new loans within SoFi Bank and intend to transfer other lending products, as well as the SoFi Credit Card, to SoFi Bank.

We are originating all new loan applications within SoFi Bank and transferred SoFi Credit Card and the majority of other lending products to SoFi Bank.

Additionally, through SoFi Bank, we expect to, among other things, issue SoFi debit cards and provide ACH, check, and wire transaction services over time.

The key expected financial benefits to us of operating a national bank include:

(i) lowering our cost to fund loans, as we can utilize member deposits held at SoFi Bank to fund loans, which have a lower borrowing cost of funds than our warehouse and securitization financing model, (ii) holding loans on our balance sheet for longer periods, thereby enabling us to

earn interest on these loans for a longer period, and (iii) supporting origination volume growth by providing an alternative financing option, while also maintaining our warehouse capacity.

(i) lowering our cost to fund loans, as we can utilize deposits held at SoFi Bank to fund loans, which have a lower borrowing cost of funds than our warehouse and securitization financing model, (ii) increasing our ability to hold loans on our balance sheet for longer periods, thereby enabling

SoFi Technologies, Inc.

us to earn interest on these loans for a longer period, and (iii) supporting origination volume growth by providing an alternative financing option, while also maintaining our warehouse capacity.

See Part II, Item 1A “ Risk Factors ” for a discussion of certain potential risks related to being a bank holding company .

IPO Investment Center.

Through our Financial Industry Regulatory Authority (“FINRA”)-registered broker-dealer subsidiary, SoFi Securities LLC (“SoFi Securities”), we are licensed to underwrite securities offerings.

In March 2021, we launched an IPO investment center that allows members with a SoFi active invest account to invest in Initial Public Offerings (“IPOs”).

Through this offering, we earn underwriting fees for participating in the underwriting syndicates for IPOs, or we recognize dealer fees for providing dealer services in partnership with underwriting syndicates for IPOs.

Together, these services are referred to as “equity capital markets services” and are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

See Note 1 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Our Reportable Segments

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Below is a discussion of our segments, their corresponding products and the ways in which those products generate revenues and/or incur expenses for the Company.

In the first quarter of 2022, we implemented a funds transfer pricing (“FTP”) framework to attribute net interest income to our business segments based on their usage and/or provision of funding.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the FTP framework.

Lending Segment

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Our lending process primarily leverages an in-application, digital borrowing experience, which we believe serves as a competitive advantage as digital lending becomes increasingly ubiquitous.

We began accepting new loan applications and originating new loans within SoFi Bank during the first quarter of 2022.

We are originating all new loan applications within SoFi Bank.

A key element of our underwriting process is the ability to facilitate risk-based interest rates that are appropriate for each loan.

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Through data derived at loan origination and throughout the servicing process, SoFi has life-of-loan performance data on each loan in its ecosystem that we originate and on which we retain servicing, which provides a meaningful data asset.

Prior to selling our loans, we rely upon warehouse financing and our own capital to enable us to expand our origination capabilities.

By securing our national bank charter, we believe we can lower our overall cost of asset-backed financing over time by utilizing our members’ deposits held at SoFi Bank to fund our loans.

Prior to selling our loans, we rely upon deposits, warehouse financing and our own capital to enable us to expand our origination capabilities.

We believe our ability to utilize deposits held at SoFi Bank to fund our loans can lower our overall cost of asset-backed financing over time.

Net interest income, which we define as the difference between the earned interest income and interest expense to finance loans, is a key component of the profitability of our Lending segment.

In the first quarter of 2022, we implemented a funds transfer pricing (“FTP”) framework to attribute net interest income to our business segments based on their usage and/or provision of funding, which impacts the net interest income in our Lending segment.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the FTP framework.

In the first quarter of 2022, we implemented an FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding.

Technology Platform Segment

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In certain of our contracts, we provide for a variety of integrated platform services, which vary by client and are either non-cancellable or cancellable with a substantive payment.

Pricing structures under these contracts are typically volume-based, or a combination of activity- and volume-based, and payment terms are predominantly monthly in arrears.

Pricing structures under these contracts are typically volume-based, or a combination of activity and volume-based,

SoFi Technologies, Inc.

and payment terms are predominantly monthly in arrears.

Some of these contracts contain minimum monthly payments with agreed upon monthly service levels and may contain penalties if service levels are not met.

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Following the Bank Merger, we began to allow members to convert their SoFi Money cash management accounts into SoFi Checking and Savings accounts held at SoFi Bank.

Effective June 5, 2022, our SoFi Money cash management accounts will no longer earn interest, as we implement our plan to only build new features for SoFi Checking and Savings and reduce support of SoFi Money cash management accounts.

SoFi Invest is a mobile-first investment platform offering members access to trading and advisory solutions, such as active investing, robo-advisory and digital assets accounts.

Effective June 5, 2022, our SoFi Money cash management accounts no longer earn interest, as we implemented our plan to build new features only for SoFi Checking and Savings and reduced support of our SoFi Money cash management accounts.

SoFi Invest is a mobile-first investment platform offering members access to trading and advisory solutions, such as active investing, robo-advisory and digital assets accounts, the latter of which are further discussed below.

SoFi Credit Card has no annual fee and is designed to help our members save, invest and pay down debt through a variable rewards program, with higher rewards offerings when redeeming into other SoFi products.

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• Brokerage fees :

We earn brokerage fees from our share lending and payment for order flow arrangements related to our SoFi Invest product (for which our clearing broker serves as principal, and we are an agent), exchange conversion services and digital assets activity.

In our share lending arrangements and payment for order flow arrangements, we do not oversee the execution of the transactions by our members, but benefit through a negotiated multi-year revenue sharing arrangement, since our members' brokerage activity drives the share lending and payment for order flow volume.

We earn brokerage fees from our share lending and payment for order flow arrangements related to our SoFi Invest product, exchange conversion services and digital assets activity.

In our share lending arrangements and payment for order flow arrangements, we benefit through a negotiated multi-year revenue sharing arrangement, since our members' brokerage activity drives the share lending and payment for order flow volume.

In our digital assets arrangements, our fee is calculated as a negotiated percentage of the transaction volume.

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As such, the third-party enterprise partners are our customers in these referral arrangements.

Beginning in the third quarter of 2021, we entered into another type of referral arrangement whereby we earn referral fulfillment fees for providing pre-qualified

borrower referrals to a third-party partner who separately contracts with a loan originator.

Beginning in the third quarter of 2021, we entered into a referral arrangement whereby we earn referral fulfillment fees for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator.

The referral fulfillment fee is determined as either of two fixed amounts based on the aggregate origination principal balance of the loan.

• Payment network fees :

We earn payment network fees, which primarily constitute interchange fees from our SoFi-branded debit cards issued by one of our Member Banks and our SoFi Credit Card product, which are reduced by fees payable to card associations and the Member Banks.

These fees are remitted by merchants and are calculated by multiplying a set fee percentage (as stipulated by the debit card payment network) by the transaction volume processed through such network.

We earn payment network fees, which primarily constitute interchange fees from our SoFi-branded debit cards and our SoFi Credit Card product, which are reduced by fees payable to card associations and our fulfillment partners.

These fees are remitted by merchants and are calculated by multiplying a set fee percentage by the transaction volume processed through such network.

We arrange for performance by a card association and the bank issuer to enable certain aspects of the SoFi-branded transaction card process.

We enter into contracts with both parties that establish the shared economics of SoFi-branded transaction cards.

As we continue to transition our former SoFi Money cash management accounts to SoFi Checking and Savings accounts held at SoFi Bank, we expect to decrease certain fees payable to third parties over time.

As we continue to transition our SoFi Money

SoFi Technologies, Inc.

cash management accounts to SoFi Checking and Savings accounts held at SoFi Bank, we expect to decrease certain fees payable to third parties over time.

• Enterprise service fees :

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• Equity capital markets fees :

Equity capital markets fees consist of underwriting fees and dealer fees.

Beginning in the second quarter of 2021, we earned underwriting fees related to our membership in underwriting syndicates for IPOs.

Beginning in the fourth quarter of 2021, we also earned dealer fees for providing dealer services in partnership with underwriting syndicates for IPOs.

We are engaged to place IPO shares that are allocated to us by the underwriters with third-party investors for which we have received a confirmed order.

We recognize both types of equity capital markets fees on the applicable trade date.

Equity capital markets fees consist of underwriting fees.

Beginning in the second quarter of 2021, we began earning underwriting fees related to our membership in underwriting syndicates for IPOs.

We recognize equity capital markets fees on the applicable trade date.

• Net interest income :

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This interest income has no impact on our consolidated financial statements.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on this framework.

To a lesser degree, we generate interest income from deposits sitting in our Member Banks, which are member bank holding companies that we exclusively relied on prior to becoming a bank holding company to provide cash management services to our members through our bank sweep program at our broker-dealer subsidiary.

While we continue to utilize Member Banks, we now also sweep cash management accounts to SoFi Bank.

We also generate interest income on SoFi Credit Card and on cash balances that we hold through SoFi Invest, which amount is not significant to the segment.

Finally, we earn interest income on legacy Golden Pacific loans that are held on our balance sheet, which primarily involve commercial real estate and other commercial lending, such as small business lending.

We incur interest expense on SoFi Credit Card through the FTP framework, which eliminates in consolidation, as well as incur interest expense related to SoFi Checking and Savings and SoFi Money cash management balances.

We also generate interest income on SoFi Credit Card and on cash balances that we hold through SoFi Invest.

Finally, we earn interest income in the Financial Services segment on certain commercial real estate and other commercial loans, such as small business loans.

We incur interest expense on SoFi Credit Card through the FTP framework, which is eliminated in consolidation, as well as incur interest expense related to SoFi Checking and Savings and SoFi Money cash management balances.

COVID-19 Pandemic

On March 11, 2020, the World Health Organization designated the novel coronavirus (“COVID-19”) as a global pandemic and various governmental restrictions were imposed in an attempt to contain the spread of COVID-19.

Although many government mandates to restrict daily activities have been lifted in the United States, the ongoing COVID-19 pandemic and its effects continue to evolve.

Worker shortages, supply chain issues, inflationary pressures, vaccine and testing requirements, and the measures taken in response to the emergence of new variants have contributed to the volatility of ongoing recovery.

The ongoing novel coronavirus (“COVID-19”) pandemic and its effects continue to evolve, particularly with the emergence of new variants and sub-variants that are increasingly transmissible and immune-evading.

Macroeconomic conditions have been volatile and impacted by worker shortages, supply chain issues, inflationary pressures, vaccine and testing requirements, and measures taken in response to the emergence of new variants.

We are unable to predict the future path or impact of any global or regional COVID-19 resurgences, including existing or future variants, or other public health crises.

There can be no assurance that economic recovery will continue or that consumer behavior will be the same as or return to pre-pandemic levels.

The extent to which the COVID-19 pandemic ultimately impacts our business, results of operations and financial condition will depend on future developments that are still uncertain and cannot be predicted.

See Part II, Item 1A “ Risk Factors — COVID-19 Pandemic Risks ” for additional discussion of the risks and uncertainties associated with the repercussions of the ongoing impacts from the COVID-19 pandemic.

See Part II, Item 1A “ Risk Factors — COVID-19 Pandemic Risks ” for additional discussion of the risks and uncertainties associated with the ongoing impacts from the COVID-19 pandemic.

SoFi Technologies, Inc.

Executive Overview

The following tables display key financial measures for our three reportable segments and our consolidated company that are used, along with our key business metrics, by management to evaluate our business, measure our performance, identify trends and make strategic decisions.

Contribution profit (loss) is the primary measure of segment-level profit and loss reviewed by management and is defined as total net revenue for each reportable segment less expenses directly attributable to the corresponding reportable segment and, in the case of our Lending segment, adjusted for fair value adjustments attributable to

assumption changes associated with our servicing rights and residual interests classified as debt.

Contribution profit (loss) is the primary measure of segment-level profit and loss reviewed by management and is defined as total net revenue for each reportable segment less expenses directly attributable to the reportable segment and, in the case of our Lending segment, adjusted for fair value adjustments attributable to assumption changes associated with our servicing rights and residual interests classified as debt.

See “ Results of Operations ”, “ Summary Results by Segment ” and “ Non-GAAP Financial Measures ” herein for discussion and analysis of these key financial measures.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands)

2022 2021 2022 2021

Net interest income (1)

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Technology Platform

Net interest income (loss)

Net interest expense

$ — $ (32) $ — $ (68)

Total noninterest income 83,899 45,329 144,704 91,430

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Corporate/Other (4)

Net interest loss $ (5,303) $ (4,690)

Net interest expense $ (4,199) $ (1,320) $ (9,502) $ (6,010)

Total noninterest income (loss) (4,653) 3,967 (6,343) 4,136

Total net loss (4)

Total net revenue (loss) (3)

(8,852) 2,647 (15,845) (1,874)

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20,304 11,240 28,988 15,372

(1) Net interest income for our Lending and Financial Services segments reported for the three months ended March 31, 2022 reflect the implementation of an FTP framework.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on this framework.

(2) Adjusted net revenue within our Lending segment is used by management to evaluate our Lending segment and our consolidated results.

For our Lending segment, total net revenue is adjusted to exclude the fair value changes in servicing rights and residual interests classified as debt due to valuation inputs and assumption changes (including conditional prepayment and default and discount rates).

We use this adjusted measure in our determination of contribution profit in the Lending segment, as well as to evaluate our consolidated results, as it removes non-cash charges that are not realized during the period and, therefore, do not impact the cash available to fund our operations, and our overall liquidity position.

For our Technology Platform and Financial Services segments, there are no adjustments from total net revenue to arrive at the consolidated adjusted net revenue shown in this table.

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(1) Net interest income for our Lending and Financial Services segments reported for the three and six months ended June 30, 2022 reflects the implementation of an FTP framework.

(2) Adjusted net revenue and adjusted EBITDA are non-GAAP financial measures.

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Generally Accepted Accounting Principles (“GAAP”) measures, see “ Non-GAAP Financial Measures ” herein.

(4) Technology Platform segment total net revenue for the three months ended March 31, 2022 includes $770 of intercompany fees earned by Galileo from SoFi, which is a Galileo client.

(3) Technology Platform segment total net revenue for the three and six months ended June 30, 2022 includes $953 and $1,723, respectively, of intercompany fees earned by Galileo from SoFi, which is a Galileo client.

There is an equal and offsetting expense reflected within the Financial Services segment contribution loss representing the intercompany fees incurred to Galileo.

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For the year ended December 31, 2021, all intercompany amounts were reflected in the fourth quarter, as inter-quarter amounts were determined to be immaterial.

Additionally, for both the three and six months ended June 30, 2022, total net revenue for the Technology Platform segment

SoFi Technologies, Inc.

included $718 of intercompany fees earned by Technisys from Galileo, which is a Technisys client.

There is an equal and offsetting expense reflected within the Technology Platform segment directly attributable expenses representing the intercompany fees incurred by Galileo to Technisys.

The intercompany revenue and expense are eliminated in consolidation.

The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses below.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

(5) Corporate/Other (previously referred to as “Other”) primarily includes total net revenue associated with corporate functions, non-recurring gains from non-securitization investment activities and interest income and realized gains and losses associated with investments in available-for-sale (“AFS”) debt securities, all of which are not directly related to a reportable segment.

Beginning in the first quarter of 2022, net interest income within Corporate/Other also reflects the residual impact from FTP charges and FTP credits allocated to our reportable segments under our FTP framework.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on this framework.

(4) Corporate/Other (previously referred to as “Other”) primarily includes total net revenue associated with corporate functions, non-recurring gains and losses from non-securitization investment activities and interest income and realized gains and losses associated with investments in available-for-sale (“AFS”) debt securities, all of which are not directly related to a reportable segment.

For the three and six months ended June 30, 2022, net interest income within Corporate/Other also reflects the residual impact from FTP charges and FTP credits allocated to our reportable segments under our FTP framework.

Key Recent Developments

We continue to execute on our growth and other strategic initiatives and we continue to celebrate launches across our product suite and strategic partnerships, further establishing ourselves as a platform that enables individuals to borrow, save, spend, invest, and protect their assets.

Some of our key recent achievements are discussed below.

In March 2022, we closed the Technisys Merger, which added a cloud-native digital and core banking platform with an existing footprint of clients in Latin America to our technology platform offerings.

The combination with our existing technology platform offerings is expected to provide an end-to-end vertically integrated technology stack, which we expect will meet both the expanding needs of our existing and expected future clients.

We believe that the combination of the Technisys core banking platform with our existing technology platform offerings provides an end-to-end vertically integrated technology stack, which we expect will meet both the expanding needs of our existing and expected future clients.

See Note 2 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the Technisys Merger.

In February 2022, we closed the Bank Merger, after which we became a bank holding company and Golden Pacific began operating as SoFi Bank.

We believe operating a national bank will allow us to provide members and prospective members broader and more competitive options across their financial services needs and lower our cost of asset-backed financing (by utilizing our members’ deposits held at SoFi Bank to fund our loans).

We also believe that operating as a national bank will enable us to offer lower interest rates on loans to members as well as offer higher interest rates on member deposit accounts.

We believe operating a national bank allows us to provide members and prospective members broader and more competitive options across their financial services needs and lowers our cost of asset-backed financing (by utilizing deposits held at SoFi Bank to fund our loans).

We also believe that operating as a national bank enables us to offer lower interest rates on loans to members as well as offer higher interest rates on deposit accounts.

See “Business Overview—National Bank Charter” herein and Note 2 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the Bank Merger.

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The primary limitation of adjusted net revenue is its lack of comparability to other companies that do not utilize this measure or that use a similar measure that is defined in a different manner.

SoFi Technologies, Inc.

Quarterly Adjusted Net Revenue

We reconcile adjusted net revenue to total net revenue, the most directly comparable GAAP measure, as presented below for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands)

2022 2021 2022 2021

Total net revenue

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Residual interests classified as debt – change in valuation inputs or assumptions (2)

2,662 5,717 5,625 13,668

Adjusted net revenue

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Quarter Ended

($ in thousands) March 31,

($ in thousands) June 30,

2022 March 31,

2022 December 31,

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2021 June 30,

2021 March 31,

Total net revenue $ 362,527 $ 330,344 $ 285,608 $ 272,006 $ 231,274

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(2) See footnote (2) to the table above.

SoFi Technologies, Inc.

The reconciling items to determine our non-GAAP measure of adjusted net revenue are applicable only to the Lending segment.

The table below presents adjusted net revenue for the Lending segment for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands) 2022 2021 2022 2021

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Residual interests classified as debt – change in valuation inputs or assumptions (2)

2,662 5,717 5,625 13,668

Adjusted net revenue – Lending $ 250,681 $ 172,232 $ 495,053 $ 340,269

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(1) The total net revenue for our Lending segment reported for the three months ended March 31, 2022 reflects the implementation of an FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the FTP framework.

(1) See footnote (1) to the table above.

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Quarterly Adjusted EBITDA

SoFi Technologies, Inc.

We reconcile adjusted EBITDA to net loss, the most directly comparable GAAP measure, below for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands)

2022 2021 2022 2021

Net loss $ (95,835) $ (165,314) $ (206,192) $ (342,878)

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Interest expense – corporate borrowings (1)

Income tax expense (2)

3,450 1,378 6,099 6,386

Income tax expense (benefit) (2)

119 (78) 871 1,021

Depreciation and amortization (3)

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Transaction-related expense (4)

808 21,181 17,346 23,359

Fair value changes in warrant liabilities (5)

— 70,989 — 160,909

Servicing rights – change in valuation inputs or assumptions (6)

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Residual interests classified as debt – change in valuation inputs or assumptions (7)

2,662 5,717 5,625 13,668

Total adjustments 116,139 176,554 235,180 358,250

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$ 20,304 $ 11,240 $ 28,988 $ 15,372

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(1) Our adjusted EBITDA measure adjusts for corporate borrowing-based interest expense, as these expenses are a function of our capital structure.

Corporate borrowing-based interest expense primarily included (i) interest on our revolving credit facility, (ii) for the 2022 period, the amortization of debt discount and debt issuance costs on our convertible notes, and (iii) for the 2021 period, interest on the seller note issued in connection with our acquisition of Galileo.

Corporate borrowing-based interest expense primarily included (i) interest on our revolving credit facility, (ii) for the 2022 periods, the amortization of debt discount and debt issuance costs on our convertible notes, and (iii) for the six-month 2021 period, interest on the seller note issued in connection with our acquisition of Galileo.

Our adjusted EBITDA measure does not adjust for interest expense on warehouse facilities and securitization debt, which are recorded within interest expense—securitizations and warehouses in the unaudited condensed consolidated statements of operations and comprehensive income (loss), as these interest expenses are direct operating expenses driven by loan origination and sales activity.

Additionally, our adjusted EBITDA measure does not adjust for interest expense on deposits or interest expense on our finance lease liability in connection with SoFi Stadium, which are recorded within interest expense—other , as these interest expenses are direct operating expenses.

Revolving credit facility interest expense remained relatively consistent for the three-month periods, primarily due to identical outstanding debt and relatively consistent average interest rates.

(2) Our income tax expense positions were primarily a function of SoFi Lending Corp.’s profitability in state jurisdictions where separate filings are required.

The income tax expense in the 2022 period was partially offset by an income tax benefit at Technisys.

Revolving credit facility interest expense for the three- and six-month periods increased due to higher interest rates during the 2022 periods on identical outstanding debt period over period.

(2) Our income tax expense positions were primarily a function of SoFi Lending Corp.’s profitability, and for the 2022 periods, SoFi Bank, in state jurisdictions where separate filings are required.

The income tax expense in the 2022 periods was partially offset by an income tax benefit at Technisys.

See Note 13 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

(3) Depreciation and amortization expense for the 2022 period increased compared to the 2021 period primarily in connection with our recent acquisitions and growth in our software balance, partially offset by the acceleration of core banking infrastructure amortization during the 2021 period.

(4) Transaction-related expenses primarily included financial advisory and professional services costs associated with our acquisition of Technisys in the 2022 period and associated with our then-pending acquisition of Golden Pacific in the 2021 period.

(3) Depreciation and amortization expense for the three- and six-month 2022 periods increased compared to the comparable 2021 periods primarily in connection with our recent acquisitions and growth in our software balance, partially offset by the acceleration of core banking infrastructure amortization during the 2021 periods.

(4) Transaction-related expenses in the 2022 periods primarily included financial advisory and professional services costs associated with our acquisition of Technisys.

Transaction-related expenses in the three-month 2021 period included the special payment to the holders of Series 1 Redeemable Preferred Stock in conjunction with the Business Combination.

Transaction-related expenses in the six-month 2021 period also included financial advisory and professional services costs associated with our then-pending acquisition of Golden Pacific.

(5) Our adjusted EBITDA measure excludes the non-cash fair value changes in warrants accounted for as liabilities, which were measured at fair value through earnings.

The amounts in the 2021 period related to changes in the fair value of Series H warrants issued by Social Finance in 2019 in connection with certain redeemable preferred stock issuances.

The amounts in the 2021 periods related to changes in the fair value of Series H warrants issued by Social Finance in 2019 in connection with certain redeemable preferred stock issuances.

We did not measure the Series H warrants at fair value subsequent to May 28, 2021 in conjunction with the Business Combination, as they were reclassified into permanent equity.

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As such, these positive and negative non-cash changes in fair value attributable to assumption changes are adjusted out of net loss to provide management and financial users with better visibility into the earnings available to finance our operations.

SoFi Technologies, Inc.

We reconcile adjusted EBITDA to net loss, the most directly comparable GAAP measure, for the quarterly periods indicated below:

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($ in thousands)

2022 March 31,

2022 December 31,

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2021 June 30,

2021 March 31,

$ (95,835) $ (110,357) $ (111,012) $ (30,047) $ (165,314)

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Adjusted EBITDA

$ 20,304 $ 8,684 $ 4,593 $ 10,256 $ 11,240

Key Business Metrics

The table below presents the key business metrics that management uses to evaluate our business, measure our performance, identify trends and make strategic decisions:

March 31, 2022 March 31, 2021 % Change

June 30, 2022 June 30, 2021 % Change

4,318,705 2,560,492 69 %

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___________________

(1) Total accounts refers to the number of open accounts at Galileo as of the reporting date.

Beginning in the fourth quarter of 2021, we included SoFi accounts on the Galileo platform-as-a-service in our total accounts metric to better align with the Technology Platform segment revenue reported in Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements.

Intercompany revenue is eliminated in consolidation.

We did not recast the total accounts as of March 31, 2021 to conform to the current year presentation, as the impact was determined to be immaterial.

We did not recast the total accounts as of June 30, 2021 to conform to the current year presentation, as the impact was determined to be immaterial.

See “Summary Results by Segment” for additional metrics we review at the segment level.

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Member growth is generally an indicator of future revenue, but is not directly correlated with revenues, since not all members who sign up for one of our products fully utilize or continue to use our products, and not all of our products (such as our complimentary product, SoFi Relay) provide direct sources of revenue.

SoFi Technologies, Inc.

Total Products

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Total lending products were composed of the following as of the dates indicated:

Lending Products March 31, 2022 March 31, 2021 Variance % Change

Lending Products June 30, 2022 June 30, 2021 Variance % Change

Home loans 25,128 18,102 7,026 39 %

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1,202,027 981,440 220,587 22 %

SoFi Technologies, Inc.

Total financial services products were composed of the following as of the dates indicated:

Financial Services Products

March 31, 2022 March 31, 2021 Variance % Change

June 30, 2022 June 30, 2021 Variance % Change

SoFi Money (1)

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___________________

(1) This category is presented including SoFi Money cash management accounts, as well as SoFi Checking and Savings accounts held at SoFi Bank, which began operating in the first quarter of 2022.

(2) This product type is limited to loans wherein we provide third party fulfillment services.

(1) Includes SoFi Checking and Savings accounts held at SoFi Bank, beginning in the first quarter of 2022, and SoFi Money cash management accounts.

(2) Limited to loans wherein we provide third party fulfillment services.

Technology Platform Total Accounts

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Intercompany revenue is eliminated in consolidation.

We did not recast total accounts as of March 31, 2021 to conform to the current year presentation, as the impact was determined to be immaterial.

We did not recast total accounts as of June 30, 2021 to conform to the current year presentation, as the impact was determined to be immaterial.

Total accounts is a primary indicator of the accounts dependent upon our technology platform to use virtual card products, virtual wallets, make peer-to-peer and bank-to-bank transfers, receive early paychecks, separate savings from spending balances, make debit transactions and rely upon real-time authorizations, all of which result in revenues for the Technology Platform segment.

We do not measure total accounts for the Technisys products and solutions, as the revenue model is not primarily dependent upon being a fully integrated, stand-ready service.

June 30, 2022 June 30, 2021 Variance % Change

Total Accounts 116,570,038 78,902,156 37,667,882 48 %

Key Factors Affecting Operating Results

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The key factors affecting our operating results are discussed in our Annual Report on Form 10-K, with notable updates provided herein.

Industry Trends and General Economic Conditions

Interest Rates and Macroeconomic Conditions

The Federal Reserve has increased the benchmark interest rate four times during 2022:

25 basis points in March 2022, 50 basis points in May 2022, and 75 basis points in each of June and July 2022.

We expect additional increases in the benchmark interest rate during the remainder of 2022, largely in response to increasing inflation.

We anticipate that in a rising interest rate environment, and operating under a bank charter, we will be able to offer more competitive interest rates to our members on their deposits, which we believe would result in increasing demand for our deposits.

However, rising interest rates could unfavorably impact demand for refinancing loan products.

In addition, if the Federal Reserve does not effectively curb inflation or interest rates rise unexpectedly or too quickly, it could have a negative impact on the overall economy which could adversely impact our results of operations.

In addition to rising interest rates, the U.S.

economy experienced negative gross domestic product growth in the first and second quarters of 2022 and consumer confidence indicators are down.

Negative changes to macroeconomic conditions may result in decreased demand for our products, increased operating costs and negatively impact our results of operations.

SoFi Technologies, Inc.

Student Loan Relief

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Increased focus by policymakers and the current presidential administration on outstanding student loans has led to discussions of potential legislative and regulatory actions, among other possible steps, to reduce outstanding balances of loans, or cancel loans at a significant scale, including the potential forgiveness of federal student debt.

Should there be further student loan relief measures, we expect that this would decrease the demand for our student loan refinancing products and would likely have an adverse impact on our results of operations and overall business.

Industry Trends and General Economic Conditions

Interest Rates

In its May 2022 meeting, the Federal Reserve increased the benchmark interest rate by 50 basis points after increasing the benchmark interest rate previously at its March 2022 meeting.

We expect additional increases in the benchmark interest rate during 2022, partially in response to increasing inflation.

However, rising interest rates could unfavorably impact demand for refinancing loan activities and reduce demand across our loan products.

Should there be further student loan relief measures, we expect that this would continue to decrease the demand for our student loan refinancing products and would likely have an adverse impact on our results of operations and overall business.

Results of Operations

The following table sets forth condensed consolidated statements of income data for the periods indicated:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Interest income

6 unchanged sentences

Securitizations and warehouses 18,599 26,250 (29) % 38,505 56,058 (31) %

Deposits 431 — n/m

Deposits 4,543 — n/m 4,974 — n/m

Corporate borrowings 3,450 1,378 150 % 6,099 6,386 (4) %

4 unchanged sentences

Loan origination and sales 144,414 109,719 32 % 302,118 220,064 37 %

Securitizations (11,281) (2,036) 454 %

Servicing 12,236 (12,109) (201) %

Securitizations (11,737) (26) n/m (23,018) (2,062) n/m

Servicing 10,471 (224) n/m 22,707 (12,333) (284) %

Technology products and solutions 81,670 44,950 82 % 141,527 90,609 56 %

7 unchanged sentences

General and administrative 125,829 171,216 (27) % 262,334 332,913 (21) %

Provision for credit losses 12,961 — n/m

Provision for credit losses 10,103 486 n/m 23,064 486 n/m

Total noninterest expense 458,243 396,666 16 % 898,192 769,115 17 %

Loss before income taxes (95,716) (165,392) (42) % (205,321) (341,857) (40) %

Income tax expense (752) (1,099) (32) %

Income tax (expense) benefit (119) 78 (253) % (871) (1,021) (15) %

Net loss $ (95,835) $ (165,314) (42) % $ (206,192) $ (342,878) (40) %

Other comprehensive loss

Unrealized losses on available-for-sale securities, net (4,455) — n/m

Unrealized losses on available-for-sale securities, net $ (1,991) $ — n/m $ (6,446) $ — n/m

Foreign currency translation adjustments, net (56) (266) (79) % (94) (346) (73) %

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Comprehensive loss $ (97,882) $ (165,580) (41) % $ (212,732) $ (343,224) (38) %

SoFi Technologies, Inc.

Interest Income

The following table presents the components of our total interest income for the periods indicated:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Loans $ 145,337 $ 79,678 82 % $ 259,722 $ 156,899 66 %

4 unchanged sentences

$ 149,512 $ 84,108 78 % $ 267,924 $ 166,636 61 %

Total interest income increased by $35.9 million, or 43%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 due to the following:

Total interest income increased by $65.4 million, or 78%, for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, and increased by $101.3 million, or 61%, for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, the components of which are discussed below.

Three Months—Loans.

Loans interest income increased by $65.7 million, or 82%, primarily driven by increases in non-securitization personal loan and student loan interest income of $61.7 million (173%) and $9.1 million (41%), respectively, which were primarily a function of increases in aggregate average balances for personal loans and student loans of $2.0 billion (158%) and $1.2 billion (60%), respectively.

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The student loan average balance increase was primarily attributable to longer loan holding periods.

These increases were offset by an aggregate decline of $11.6 million (48%) in interest income from consolidated personal loan and student loan securitizations, which were impacted by declines in average balances for personal loans and student loans of $312.8 million (60%) and $302.0 million (36%), respectively.

The declines in aggregate average balances were primarily attributable to payment activity and the absence of additions to our consolidated securitization loan balances.

We also had a decline in our whole loan interest rates.

We also had an increase in our whole loan interest rates.

These increases were offset by decreases in interest income from consolidated personal loan and student loan securitizations of $6.5 million (61%) and $3.1 million (32%), respectively, which were impacted by decreases in average balances for personal loans and student loans of $265.0 million (63%) and $251.0 million (34%), respectively.

The decreases in aggregate average balances were primarily attributable to payment activity and the absence of additions to our consolidated securitization loan balances.

The remaining increase in interest income included $3.2 million attributable to credit card, $1.1 million attributable to the acquired loan portfolio in the Bank Merger, and $0.1 million attributable to home loans.

Securitizations.

Six Months—Loans.

Loans interest income increased by $102.8 million, or 66%, primarily driven by increases in non-securitization personal loan and student loan interest income of $97.5 million and $18.5 million, respectively, which were primarily a function of increases in average balances for personal loans and student loans of $1.6 billion (133%) and $1.2 billion (61%), respectively, attributable to longer loan holding periods.

These increases were offset by decreases in interest income from consolidated personal loan and student loan securitizations of $14.1 million (60%) and $7.0 million (34%), respectively, which were impacted by decreases in average balances for personal loans and student loans of $288.9 million (62%) and $277.6 million (35%), respectively.

The decreases in aggregate average balances were primarily attributable to payment activity and the absence of additions to our consolidated securitization loan balances.

The remaining increase in interest income included $5.8 million attributable to credit card, $1.7 million attributable to the acquired loan portfolio in the Bank Merger, and $0.6 million attributable to home loans.

Three Months—Securitizations.

Securitizations interest income decreased by $1.2 million, or 32%, which was primarily attributable to decreases in residual investment interest income of $0.6 million and asset-backed bonds of $0.7 million related to decreases in average securitization investment balances period over period, as securitization payments outpaced new securitization investments.

This outcome was impacted by the absence of any securitization transactions during the 2022 period.

Related Party Notes.

Six Months—Securitizations.

Securitizations interest income decreased by $2.9 million, or 36%, which was primarily attributable to decreases in residual investment interest income of $1.5 million and asset-backed bonds of $1.6 million related to decreases in average securitization investment balances period over period.

This outcome was impacted by the absence of any securitization transactions during the 2022 period.

Six Months—Related Party Notes.

We did not have any related party notes interest income in the 2022 period.

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See Note 14 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on our related party notes.

Other interest income increased by $0.6 million, or 102%, primarily due to interest rate increases and higher average balances period over period that impacted the interest income we earned on both our interest-bearing cash and cash equivalents balances and Member Bank deposits.

In addition, we earned interest income of $0.2 million on our investments in AFS debt securities, which we did not own during the comparable 2021 period.

Three Months—Other.

Other interest income increased by $1.0 million, or 153%, primarily due to $0.8 million higher interest income earned on our interest-bearing cash and cash equivalents balances primarily due to higher average balances period over period, and interest income of $0.4 million earned on our investments in AFS debt securities, which we did not own

SoFi Technologies, Inc.

during the comparable 2021 period, partially offset by a decrease of $0.4 million in interest earned on Member Bank deposits, as member balances have migrated to SoFi Bank.

Six Months—Other.

Other interest income increased by $1.6 million, or 127%, primarily due to $1.0 million higher interest income earned on our interest-bearing cash and cash equivalents balances primarily due to higher average balances period over period, and interest income of $0.7 million earned on our investments in AFS debt securities, which we did not own during the comparable 2021 period, partially offset by a decrease of $0.4 million in interest earned on Member Bank deposits, as member balances have increasingly migrated to SoFi Bank.

Interest Expense

The following table presents the components of our total interest expense for the periods indicated:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Securitizations and warehouses $ 18,599 $ 26,250 (29) % $ 38,505 $ 56,058 (31) %

Deposits 431 — n/m

Deposits 4,543 — n/m 4,974 — n/m

Corporate borrowings 3,450 1,378 150 % 6,099 6,386 (4) %

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$ 26,783 $ 28,096 (5) % $ 50,262 $ 63,344 (21) %

Total interest expense decreased by $11.8 million, or 33%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 due to the following:

Total interest expense decreased by $1.3 million, or 5%, for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, and decreased by $13.1 million, or 21%, for the six months ended June 30, 2022 compared to the same period in 2021, the components of which are discussed below.

Securitizations and Warehouses.

The following tables present the components of securitizations and warehouses interest expense and other pertinent information.

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Securitization debt interest expense $ 5,204 $ 9,414 (45) % $ 10,737 $ 20,362 (47) %

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$ 18,599 $ 26,250 (29) % $ 38,505 $ 56,058 (31) %

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

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Weighted average interest rates (2)

Securitization debt 3.5 % 3.8 % n/m

Warehouse facilities 1.5 % 1.7 % n/m

Securitization debt 3.8% 3.8% n/m 3.7% 3.8% n/m

Warehouse facilities 1.9% 1.6% n/m 1.7% 1.6% n/m

___________________

(1) Average balances were calculated based on four-month ending balances.

(1) Average balances were calculated based on four- and seven-month ending balances.

(2) Calculated as annualized interest expense divided by average debt balance for the respective debt category.

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Table excludes residual interests classified as debt, as interest expense is dependent on the timing and extent of securitization loan cash flows and, therefore, a derived weighted average interest rate using the methodology in the table herein is not meaningful for the purposes of understanding the change in residual interests classified as debt related interest expense.

Securitizations and warehouses interest expense decreased by $9.9 million, or 33%, driven by the following:

• Securitization debt interest expense (exclusive of debt issuance and discount amortization) decreased by $5.4 million (49%), primarily driven by a decline in the average balance of 46%, which was attributable to payment activity and the absence of additional securitization debt during the current period.

• Warehouse debt interest expense (exclusive of debt issuance amortization) decreased by $0.6 million, which was primarily related to the utilization of warehouse facilities with lower spreads versus benchmark rates during the 2022 period, which was partially offset by an increase in our borrowing base consistent with an increase in the time we held certain loans on our balance sheet.

• Residual interests classified as debt interest expense decreased by $0.7 million, which was correlated with a lower balance of residual interests classified as debt during the 2022 period, as the residual debt balances continue to pay down over time and there were no additions to the balance during the current period.

• Debt issuance cost interest expense decreased by $3.2 million, which was primarily driven by a lower run rate on our issuance cost amortization related to our loan warehouse facilities, as we have extended certain loan warehouse facilities over time, which had the effect of lowering the quarterly debt issuance cost amortization.

The variance was also impacted by the acceleration of certain debt issuance costs during the 2021 period, which contributed to a favorable variance of $1.4 million period over period.

Deposits interest expense of $0.4 million for the three months ended March 31, 2022 was related to interest earned by members on deposits held at SoFi Bank.

We expect this expense to correlate in future periods with the size of our member deposits balances, as well as the interest rate offered on our SoFi Checking and Savings product.

SoFi Technologies, Inc.

Securitizations and warehouses interest expense decreased by $7.7 million, or 29%, for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, and decreased by $17.6 million, or 31%, for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, driven by the following:

• Securitization debt interest expense (exclusive of debt issuance and discount amortization) decreased by $4.2 million (45%) for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $9.6 million (47%) for the six months ended June 30, 2022 compared to the same period in 2021 primarily driven by a decline in the average balance of securitization debt of 44% and 46%, respectively, which was attributable to payment activity and the absence of additional securitization debt during the 2022 periods.

• Warehouse debt interest expense (exclusive of debt issuance amortization) increased by $0.3 million (4%) for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $0.3 million (1)% for the six months ended June 30, 2022 compared to the same period in 2021.

The three-month increase in interest expense was attributable to sharp increases in benchmark rates, which were partially mitigated through a decrease in our borrowing base and negotiated decreases in borrowing spreads.

The six-month decrease in interest expense was primarily related to the utilization of warehouse facilities with lower spreads during the 2022 period combined with a decrease in our borrowing base, which was partially offset by an increase in benchmark rates.

• Residual interests classified as debt interest expense decreased by $1.1 million (52%) for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $1.8 million (41%) for the six months ended June 30, 2022 compared to the same period in 2021, which were correlated with lower balances of residual interests classified as debt during the 2022 periods, as the residual debt balances continue to pay down over time and there were no additions to the balance during the 2022 periods.

• Debt issuance cost interest expense decreased by $2.7 million (50%) for the three months ended June 30, 2022 compared to 2021, and decreased by $5.9 million (51%) for the six months ended June 30, 2022 compared to the same period in 2021, which were primarily driven by a lower run rate on our issuance cost amortization related to our loan warehouse facilities, as we have extended certain loan warehouse facilities over time, which had the effect of lowering the quarterly debt issuance cost amortization.

The variance was also impacted by the acceleration of certain debt issuance costs during the 2021 periods, which contributed to favorable variances of $1.5 million and $2.8 million, respectively, period over period.

Deposits interest expense of $4.5 million and $5.0 million for the three and six months ended June 30, 2022, respectively, was related to interest earned by members on deposits held at SoFi Bank, which had average balances of $1.8 billion and $1.1 billion, respectively.

Deposit accounts also earned a higher interest rate during the second quarter of 2022.

Corporate Borrowings.

Corporate borrowings interest expense decreased by $2.4 million, or 47%, primarily due to the following:

• Interest expense incurred on the Galileo seller note, which was repaid in February 2021, decreased by $3.6 million.

• We incurred interest expense of $1.3 million in the 2022 period associated with our issuance of convertible notes in the fourth quarter of 2021, which consisted of the amortization of the debt discount and debt issuance costs.

• Interest expense on the revolving credit facility was materially consistent period over period, as the average balance remained consistent and one-month LIBOR volatility had a marginal impact on the interest expense variance.

Other interest expense increased by $0.1 million, or 14%, primarily due to an increase in interest expense related to our SoFi Money cash management and SoFi Checking and Savings products, primarily associated with an increase in member cash balances and deposits.

Corporate borrowings interest expense increased by $2.1 million, or 150%, for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $0.3 million, or 4%, for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to the following:

• We incurred interest expense of $1.3 million and $2.5 million for the three- and six-month 2022 periods, respectively, associated with our issuance of convertible notes in the fourth quarter of 2021, which consisted of the amortization of the debt discount and debt issuance costs.

• Interest expense on our revolving credit facility increased by $0.8 million for each of the three- and six-month periods, as one-month LIBOR increased during the second quarter of 2022, while the average balance remained constant.

• Interest expense incurred on the Galileo seller note, which was repaid in February 2021, decreased by $3.6 million for the six-month period.

Other interest expense decreased by $0.3 million, or 59%, for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $0.2 million, or 24%, for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to a decrease in interest expense related to our SoFi Money cash management product, as these accounts ceased earning interest effective June 5, 2022.

SoFi Technologies, Inc.

Noninterest Income and Net Revenue

The following table presents the components of our total noninterest income, as well as total net revenue for the periods indicated:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

% Change Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Loan origination and sales $ 144,414 $ 109,719 32 % $ 302,118 $ 220,064 37 %

Securitizations (11,281) (2,036) 454 %

Servicing 12,236 (12,109) (201) %

Securitizations (11,737) (26) n/m (23,018) (2,062) n/m

Servicing 10,471 (224) n/m 22,707 (12,333) (284) %

Technology products and solutions 81,670 44,950 82 % 141,527 90,609 56 %

4 unchanged sentences

$ 362,527 $ 231,274 57 % $ 692,871 $ 427,258 62 %

Total noninterest income increased by $86.7 million, or 58%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, due to the following:

Loan Origination and Sales.

Total noninterest income increased by $64.5 million, or 37%, for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, and increased by $151.2 million, or 47%, for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, the components of which are discussed below.

Three Months—Loan Origination and Sales.

Loan origination and sales increased by $34.7 million, or 32%, primarily due to the following:

• an increase of $64.5 million in personal loan origination and sales income, of which $15.1 million was attributable to the net effect of higher origination volume during the 2022 period, fair value markdowns of loans, and lower execution prices on sales activity.

Our economic hedging activities by design offset the effects of fair value markdowns and lower sales price execution.

Overall, we had higher gains of $48.6 million on our personal loan economic hedging activities in the 2022 period, which was inclusive of gains on loan origination economic hedges made during the period, as well as economic hedges of loans that remained on our balance sheet from December 31, 2021 or were sold during 2022, and was amplified by the interest rate volatility during the current period as compared to the 2021 comparative period;

• an increase of $46.9 million (83%) in personal loan origination and sales income, of which $21.7 million was attributable to the net effect of (i) higher origination volume during the 2022 period, (ii) fair value markups of loans, and (iii) lower execution prices on sales activity.

Our economic hedging activities are designed to offset the effects of fair value marks and sales price execution.

Overall, we had an increase of $25.2 million on our personal loan economic hedging activities in the 2022 period, which was inclusive of gains on loan origination economic hedges made during the period, as well as economic hedges of loans that remained on our balance sheet from March 31, 2022 or were sold during the 2022 period, and was amplified by the interest rate volatility during the current period as compared to the 2021 period;

• an increase of $2.1 million (6%) in student loan origination and sales income, which was inclusive of losses on related student loan commitments of $0.3 million and interest rate caps of $0.9 million.

We had an aggregate $56.6 million decline due to the impact of lower origination volume in the current quarter at lower prices, fair value markdowns of loans and lower execution prices on 2022 sales activity.

We had an aggregate $31.8 million decline due to the combined impacts of (i) lower origination volume in the current quarter at lower prices, (ii) lower fair value marks of loans, and (iii) lower execution prices on 2022 sales activity.

Offsetting these declines were increases of $34.2 million on our student loan economic hedging activities for the same reasons as stated in the foregoing personal loan discussion;

• a decrease of $19.8 million in home loan origination and sales related income, which was inclusive of the favorable impact related to IRLCs of $1.7 million and higher gains on home loan pipeline hedges of $9.9 million, which by design offset some of our period over period declines in home loan fair values.

The remaining home loan origination and sales decrease was primarily attributable to the effect of originating loans during the quarter at a price below par compared to a price above par in the prior year quarter, as well as lower execution prices on sales activity;

• a decrease of $2.7 million (68%) in home loan origination fees in conjunction with a 58% decrease in origination volume.

Securitizations.

Securitizations income decreased by $9.2 million, or 454%, for the three months ended March 31, 2022 compared to the same period in 2021, primarily due to an aggregate decrease of $14.0 million in securitization loan fair market value changes, principally due to increases in market interest rates.

We also had a decline in securitization investment fair values of $8.6 million, which was primarily attributable to negative fair value adjustments on our student loan securitization bonds that were impacted by the interest rate volatility during the 2022 period.

These unfavorable variances were partially offset by gains on our economic hedges of securitization investments, which resulted in gains of $6.3 million in the 2022 period.

Partially offsetting these effects was a reduction in securitization loan write-offs of $2.7 million in the 2022 period, which was correlated with lower average securitization loan balances and stronger securitization loan credit performance during the 2022 period.

Additionally, we had a decline in residual debt fair value adjustments of $4.3 million, exclusive of the portion reclassified to interest expense.

• a decrease of $13.9 million (83%) in home loan origination and sales related income, of which $40.7 million was attributable to the effect of lower origination volume in the current quarter at lower prices, as well as lower execution prices on sales activity.

Offsetting this decline was the favorable impact related to IRLCs of $3.5 million and higher gains on home loan pipeline hedges of $23.2 million, which offset some of our period-over-period declines in home loan fair values;

• a decrease of $1.1 million (30%) in home loan origination fees, which was driven by a 58% decrease in origination volume that was partially mitigated by higher fees earned per loan originated due the rising interest rate environment in the 2022 period.

Six Months—Loan Origination and Sales.

Loan origination and sales increased by $82.1 million, or 37%, primarily due to the following:

• an increase of $108.5 million (122%) in personal loan origination and sales income, of which $34.7 million was attributable to the net effect of (i) significantly higher origination volume during the 2022 period, (ii) lower fair value marks of loans, and (iii) lower execution prices on sales activity.

Our economic hedging activities are designed to offset the effects of fair value marks and sales price execution.

Overall, we had higher gains of $73.8 million on our personal loan economic hedging activities in the 2022 period, which was inclusive of gains on loan origination economic hedges made during the period, as well as economic hedges of loans that remained on our balance sheet from December 31, 2021 or were sold during the 2022 period, and was amplified by the interest rate volatility during the current period as compared to the 2021 period;

SoFi Technologies, Inc.

• an increase of $7.1 million (9%) in student loan origination and sales income, of which $98.0 million was related to our student loan economic hedging activities for the same reasons as stated in the foregoing personal loan discussion.

This increase was partially offset by an aggregate $88.5 million decline due to the combined impacts of (i) lower origination volume in the 2022 period at lower prices, (ii) lower fair value mark of loans, and (iii) lower execution prices on 2022 sales activity.

Additionally, we had losses on student loan commitments of $2.5 million and interest rate caps of $3.0 million;

• a decrease of $33.8 million (79%) in home loan origination and sales related income, of which $72.2 million was attributable to the effect of lower origination volume in the 2022 period at lower prices, as well as lower execution prices on sales activity.

Offsetting this decline was the favorable impact related to IRLCs of $5.2 million and higher gains on home loan pipeline hedges of $33.2 million, which offset some of our period-over-period declines in home loan fair values;

• a decrease of $3.9 million (50%) in home loan origination fees, which was driven by a 58% decrease in origination volume that was partially mitigated by higher fees earned per loan originated due the rising interest rate environment in the 2022 period.

Three Months—Securitizations.

Securitizations income decreased by $11.7 million, primarily due to an aggregate decrease of $13.9 million in securitization loan fair market value changes, principally due to increases in market interest rates.

We also had a decline in securitization investment fair values of $4.6 million, which was primarily attributable to negative fair value adjustments on our securitization bonds that were impacted by the interest rate volatility during the 2022 period.

These unfavorable variances were partially offset by gains of $2.7 million in the 2022 period on our economic hedges of securitization investments.

Additionally, securitizations income was favorably impacted by a reduction in securitization loan write-offs of $2.9 million in the 2022 period, which was correlated with lower average securitization loan balances and stronger securitization loan credit performance during the 2022 period, as well as a decline in residual debt fair value adjustments of $1.9 million, exclusive of the portion reclassified to interest expense.

Six Months—Securitizations.

Securitizations income decreased by $21.0 million, primarily due to an aggregate decrease of $27.9 million in securitization loan fair market value changes, principally due to increases in market interest rates.

We also had a decline in securitization investment fair values of $13.2 million, which was primarily attributable to negative fair value adjustments on our securitization bonds that were impacted by the interest rate volatility during the 2022 period.

These unfavorable variances were partially offset by gains of $9.1 million in the 2022 period on our economic hedges of securitization investments.

Additionally, securitizations income was favorably impacted by a reduction in securitization loan write-offs of $5.6 million in the 2022 period, which was correlated with lower average securitization loan balances and stronger securitization loan credit performance during the 2022 period, as well as a decline in residual debt fair value adjustments of $6.3 million, exclusive of the portion reclassified to interest expense.

SoFi Technologies, Inc.

The table below presents additional information related to loan gains and losses and overall performance:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

3 unchanged sentences

Economic derivative hedges of securitization investments (2)

2,749 — n/m 9,068 — n/m

Economic derivative hedges of loan fair values (3)

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(1) Represents the gain recognized on loan securitization transfers qualifying for sale accounting treatment, excluding the impact of economic hedging activities.

We had no loan securitization transfers during the 2022 period.

We had no loan securitization transfers during the three and six months ended June 30, 2022.

(2) Represents the gain on interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments.

(3) During the three months ended March 31, 2022, we had gains on interest rate swap positions of $134.5 million, comprising $84.5 million related to student loan hedges and $50.0 million related to personal loan hedges.

(3) During the three months ended June 30, 2022, we had gains on interest rate swap positions of $53.4 million, which comprised $28.6 million related to student loan hedges and $24.8 million related to personal loan hedges.

We also had gains on interest rate caps of $0.9 million.

All of these gains were primarily attributable to increases in interest rates during the period.

We had gains of $23.5 million on home loan pipeline hedges primarily due to decreases in the underlying hedge price index during the period.

During the three months ended March 31, 2021, we had gains of $22.5 million on interest rate swap positions, comprising $21.2 million related to student loan hedges and $1.3 million related to personal loan hedges, which were primarily due to increases in interest rates during the period.

We also had gains of $13.5 million on mortgage pipeline hedges primarily due to decreases in the underlying hedge price index during the period.

These gains were primarily attributable to increases in interest rates during the period.

We also had gains of $15.2 million on home loan pipeline hedges primarily due to decreases in the underlying hedge price index during the period.

During the three months ended June 30, 2021, we had losses of $5.9 million on interest rate swap positions, primarily due to declines in interest rates during the period, and losses of $8.0 million on mortgage pipeline hedges due to increases in the underlying hedge price index.

During the six months ended June 30, 2022 and 2021, we had gains of $187.9 million and $16.6 million, respectively, on interest rate swap positions.

The six-month 2022 period gains comprised $113.2 million related to student loan hedges and $74.8 million related to personal loan hedges.

We also had gains on interest rate caps of $3.5 million.

These gains were primarily attributable to increases in interest rates during the 2022 period.

We also had gains of $38.7 million and $5.6 million during the six months ended June 30, 2022 and 2021, respectively, on mortgage pipeline hedges primarily due to decreases in the underlying hedge price index during the periods.

Our economic hedge gains during the periods also included the impact of hedging of loan origination volume.

Amounts presented herein exclude IRLCs and student loan commitments, as they are not economic hedges of loan fair values.

(4) For the three months ended March 31, 2022, the decrease was correlated with a 58% decrease in home loan origination volume relative to 2021.

(5) For the three months ended March 31, 2022 and 2021, includes gross write-offs of $11.8 million and $7.4 million, respectively.

During the 2022 period, $0.8 million of the $3.7 million of recoveries were captured via loan sales to a third-party collection agency.

During the 2021 period, $0.5 million of the $2.3 million of recoveries were captured via loan sales to a third-party collection agency.

(6) For the three months ended March 31, 2022 and 2021, includes gross write-offs of $3.3 million and $7.4 million, respectively.

During the 2022 period, $0.2 million of the $1.6 million of recoveries were captured via loan sales to a third-party collection agency.

During the 2021 period, $1.3 million of the $3.0 million of recoveries were captured via loan sales to a third-party collection agency.

(4) For the three and six months ended June 30, 2022, the decreases relative to the comparable 2021 periods were correlated with a 58% decrease in each period in home loan origination volume, which was partially mitigated by higher fees earned per loan originated due the rising interest rate environment in 2022.

(5) For the three months ended June 30, 2022 and 2021, includes gross write-offs of $17.7 million and $6.6 million, respectively.

During the three-month 2022 period, $1.0 million of the $4.1 million of recoveries were captured via loan sales to a third-party collection agency.

During the three-month 2021 period, $1.4 million of the $3.0 million of recoveries were captured via loan sales to a third-party collection agency.

For the six months ended June 30, 2022 and 2021, includes gross write-offs of $29.5 million and $14.0 million, respectively.

During the six-month 2022 period, $1.7 million of the $7.8 million of recoveries were captured via loan sales to a third-party collection agency.

During the six-month 2021 period, $1.9 million of the $5.2 million of recoveries were captured via loan sales to a third-party collection agency.

(6) For the three months ended June 30, 2022 and 2021, includes gross write-offs of $2.2 million and $5.8 million, respectively.

During the three-month 2022 period, $0.2 million of the $1.8 million of recoveries were captured via loan sales to a third-party collection agency.

During the three-month 2021 period, $0.6 million of the $2.5 million of recoveries were captured via loan sales to a third-party collection agency.

For the six months ended June 30, 2022 and 2021, includes gross write-offs of $5.5 million and $13.2 million, respectively.

During the six-month 2022 period, $0.3 million of the $3.4 million of recoveries were captured via loan sales to a third-party collection agency.

During the six-month 2021 period, $1.9 million of the $5.5 million of recoveries were captured via loan sales to a third-party collection agency.

(7) Represents the (expense) benefit associated with our estimated loan repurchase obligation.

See Note 15 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Servicing income increased by $24.3 million, or 201%, for the three months ended March 31, 2022 compared to the same period in 2021, of which $23.7 million was related to favorable changes in valuation inputs and assumptions, consisting of $17.0 million related to student loans, $4.4 million related to home loans and $2.2 million related to personal loans.

The favorable variance was primarily attributable to prepayment rates.

Student and personal loans servicing prepayment rates increased from the fourth quarter of 2020 to the first quarter of 2021, resulting in a decrease in servicing asset valuations, versus slightly declining from the fourth quarter of 2021 to the first quarter of 2022.

Home loans servicing prepayment rates declined in both the 2021 and 2022 periods, but had a larger rate of decline during the current period.

Three Months—Servicing.

Servicing income increased by $10.7 million, of which $9.3 million was related to favorable changes in valuation inputs and assumptions, consisting of $6.1 million related to student loans, $3.0 million related to home loans and $0.2 million related to personal loans.

The favorable variances were primarily attributable to prepayment rates, as our prepayment rate assumptions increased modestly during the 2021 period compared to a decrease during the 2022 period.

We also earned $1.3 million of servicing income in the 2022 period associated with referral activity we facilitate through our platform.

Six Months—Servicing.

Servicing income increased by $35.0 million, of which $33.0 million was related to favorable changes in valuation inputs and assumptions, consisting of $23.1 million related to student loans, $7.4 million related to home loans and $2.5 million related to personal loans.

The favorable variances were primarily attributable to prepayment rates, as our prepayment rate assumptions increased during the 2021 period compared to a decrease during the 2022 period.

We also earned $1.9 million of servicing income in the 2022 period associated with referral activity we facilitate through our platform.

SoFi Technologies, Inc.

We own the master servicing on all of the servicing rights that we retain and, in each case, recognize the gross servicing rate applicable to each serviced loan.

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Further, there is no impact on servicing income due to forbearance and moratoriums on certain debt collection activities, and there are no waivers of late fees.

The table below presents additional information related to our loan servicing activities.

Three Months Ended March 31, 2022 vs 2021

The table below presents additional information related to our loan servicing activities for the periods indicated:

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

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______________

(1) The contractual servicing earned on our home loan portfolio was 25 bps and 25 bps during the three months ended March 31, 2022 and 2021, respectively.

(2) The weighted average bps earned for student loan servicing was 42 bps and 41 bps during the three months ended March 31, 2022 and 2021, respectively.

(3) The weighted average bps earned for personal loan servicing was 70 bps and 70 bps during the three months ended March 31, 2022 and 2021, respectively.

(4) The impact on the fair value change resulting from changes in valuation inputs and assumptions was $7.7 million and $3.3 million during the three months ended March 31, 2022 and 2021, respectively.

(5) The impact of the fair value change resulting from changes in valuation inputs and assumptions was $1.3 million and $(15.7) million during the three months ended March 31, 2022 and 2021, respectively.

In addition, the impact of the fair value change resulting from the derecognition of servicing due to loan purchases was $(1.0) million for the three months ended March 31, 2022.

(6) The impact of the fair value change resulting from changes in valuation inputs and assumptions was $2.5 million and $0.3 million during the three months ended March 31, 2022 and 2021, respectively.

In addition, the impact of the fair value change resulting from the derecognition of servicing due to loan purchases was $(0.4) million for the three months ended March 31, 2022.

Technology Products and Solutions.

Technology Products and Solutions increased by $14.2 million, or 31%, for the three months ended March 31, 2022 compared to the same period in 2021.

The current period was bolstered by $6.2 million of revenue contribution from the Technisys Merger, which closed on March 3, 2022.

(1) The contractual servicing earned on our home loan servicing portfolio was 25 bps during all periods presented.

(2) The weighted average bps earned for student loan servicing was 42 bps and 44 bps during the three months ended June 30, 2022 and 2021, respectively, and 42 bps during each of the six months ended June 30, 2022 and 2021.

(3) The weighted average bps earned for personal loan servicing was 70 bps and 71 bps during the three months ended June 30, 2022 and 2021, respectively, and 70 bps during each of the six months ended June 30, 2022 and 2021.

(4) The impact on the fair value change resulting from changes in home loan valuation inputs and assumptions was $1.2 million and $(1.8) million during the three months ended June 30, 2022 and 2021, respectively, and $8.9 million and $1.5 million during the six months ended June 30, 2022 and 2021, respectively.

(5) The impact on the fair value change resulting from changes in student loan valuation inputs and assumptions was $5.7 million and $(0.4) million during the three months ended June 30, 2022 and 2021, respectively, and $7.0 million and $(16.1) million during the six months ended June 30, 2022 and 2021, respectively.

In addition, the impact of the fair value change resulting from the derecognition of servicing due to loan purchases was $(0.4) million during the three months ended June 30, 2021, and $(1.1) million and $(0.4) million during the six months ended June 30, 2022 and 2021, respectively.

(6) The impact on the fair value change resulting from changes in personal loan valuation inputs and assumptions was $2.2 million and $1.9 million during the three months ended June 30, 2022 and 2021, respectively, and $4.7 million and $2.2 million during the six months ended June 30, 2022 and 2021, respectively.

In addition, the impact of the fair value change resulting from the derecognition of servicing due to loan purchases was $(0.1) million and $(0.2) million during the three months ended June 30, 2022 and 2021, respectively, and $(0.5) million and $(0.2) million during the six months ended June 30, 2022 and 2021, respectively.

Three Months—Technology Products and Solutions.

Technology products and solutions fees increased by $36.7 million, or 82%.

The 2022 period was bolstered by $20.3 million of revenue contribution from the Technisys Merger, which closed in March 2022.

In addition, our existing integrated technology solutions contributed an increase of $16.4 million in revenue period over period, which was predominantly a function of account growth and activity related to clients that were on our platform for both the 2021 and 2022 periods.

Other income increased by $10.1 million, or 147%, for the three months ended March 31, 2022 compared to the same period in 2021 primarily due to period-over-period increases in payment network fees of $2.8 million and referral fees of $5.5 million.

Six Months—Technology Products and Solutions.

Technology products and solutions fees increased by $50.9 million, or 56%.

The 2022 period was bolstered by $26.5 million of revenue contribution from the Technisys Merger, which closed in March 2022.

In addition, our existing integrated technology solutions contributed an increase of $24.4 million in revenue period over period, which was predominantly a function of account growth and activity related to clients that were on our platform for both periods.

Three Months—Other.

Other income decreased by $5.9 million, or 28%, primarily due to (i) a $6.4 million impact from a loss in the 2022 period on a venture capital investment compared to a gain in the 2021 period on the same investment, (ii) the absence in the 2022 period of $1.8 million of equity capital markets services fees earned in the 2021 period, (iii) a $2.9 million decrease in brokerage fees related to lower digital assets trading activity, and (iv) a $2.5 million decrease in enterprise services revenue primarily due to the absence of advisory services revenues in the 2022 period.

These decreases were partially offset by increases in referral fees of $5.7 million and payment network fees of $1.7 million.

The increase in referral fees was primarily attributable to growth in our partner relationships and related activity, as we continue to onboard new partners and help drive volume to our partners, as well as an increase associated with a referral fulfillment arrangement we entered in the third quarter of 2021.

The increase in payment network fees (which includes interchange fees) was primarily attributable to increased credit card spending on our platform.

Lastly, the increase in referral fees was primarily attributable to growth in our partner relationships and related activity, as we continue to onboard new partners and help drive volume to our partners, as well as an increase associated with a referral fulfillment arrangement we entered into in the third quarter of 2021.

Lastly, we had a decline in SoFi Invest trading losses of $2.1 million period over period.

SoFi Technologies, Inc.

Six Months—Other.

Other income increased by $4.2 million, or 15%, primarily due to increases in referral fees of $11.2 million and payment network fees of $4.5 million.

The increase in payment network fees (which includes interchange fees) was primarily attributable to increased credit card spending on our platform.

We also had a decline in SoFi Invest trading losses of $1.6 million period over period, which had a favorable impact on the other income variance.

These impacts were partially offset by (i) a $7.0 million impact from losses on venture capital investments in the 2022 period compared to gains in the 2021 period, (ii) a $2.8 million decrease in brokerage fees related to lower digital assets trading activity, (iii) a $2.3 million decrease in enterprise services revenue primarily due to the absence of advisory service revenues in the 2022 period, and (iv) the absence in the 2022 period of $1.8 million of equity capital markets services fees earned in the 2021 period.

Noninterest Expense

The following table presents the components of our total noninterest expense for the periods indicated:

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Technology and product development $ 99,366 $ 69,389 43 % $ 181,274 $ 135,337 34 %

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General and administrative 125,829 171,216 (27) % 262,334 332,913 (21) %

Provision for credit losses 12,961 — n/m

Provision for credit losses 10,103 486 n/m 23,064 486 n/m

Total noninterest expense

$ 458,243 $ 396,666 16 % $ 898,192 $ 769,115 17 %

Total noninterest expense increased by $67.5 million, or 18%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, due to the following:

Technology and Product Development.

Total noninterest expense increased by $61.6 million, or 16%, for the three months ended June 30, 2022 compared to the three months ended June 30, 2021, and increased by $129.1 million, or 17%, for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, the components of which are discussed below.

Three Months—Technology and Product Development.

Technology and product development expenses increased by $30.0 million, or 43%, primarily due to:

• an increase in employee compensation and benefits of $11.0 million, inclusive of an increase in share-based compensation expense of $5.9 million, which was related to an increase in technology and product personnel in support of our growth.

Moreover, the impact of the Technisys Merger contributed $4.3 million to the period-over period-variance.

We also had an increase in average compensation in the 2022 period;

• an increase in employee compensation and benefits of $15.9 million, inclusive of an increase in share-based compensation expense of $1.7 million, and of which $9.4 million was attributable to employee compensation and benefits at Technisys.

The remaining increase was related to an increase in technology and product personnel in support of our growth, as well as an increase in average compensation in the 2022 period;

• an increase in purchased and internally-developed software amortization of $5.9 million, which was primarily reflective of increased investments in technology in our Technology Platform segment;

• an increase in amortization expense on intangible assets of $4.3 million, which was related to intangible asset amortization of $5.6 million associated with acquired intangible assets in the Technisys Merger, partially offset by $1.3 million associated with the acceleration of our core banking infrastructure through the first half of 2021;

• an increase in software licenses, and tools and subscriptions expense of $1.3 million related to headcount increases and internal technology initiatives.

• a decrease in amortization expense on intangible assets of $1.0 million, which was related to the acceleration of our core banking infrastructure through the first half of 2021, partially offset by other intangible asset amortization of $1.7 million associated with the Technisys Merger.

Sales and Marketing.

Six Months—Technology and Product Development.

Technology and product development expenses increased by $45.9 million, or 34%, primarily due to:

• an increase in employee compensation and benefits of $26.9 million, inclusive of an increase in share-based compensation expense of $7.6 million, and of which $13.8 million was attributable to employee compensation and benefits at Technisys.

The remaining increase was related to an increase in technology and product personnel in support of our growth, as well as an increase in average compensation in the 2022 period;

• an increase in purchased and internally-developed software amortization of $10.3 million, which was primarily reflective of increased investments in technology in our Technology Platform segment;

• an increase in amortization expense on intangible assets of $3.3 million, which was related to intangible asset amortization of $7.3 million associated with acquired intangible assets in the Technisys Merger, partially offset by $4.1 million associated with the acceleration of our core banking infrastructure through the first half of 2021;

SoFi Technologies, Inc.

• an increase in software licenses, and tools and subscriptions expense of $2.5 million related to headcount increases and internal technology initiatives.

Three Months—Sales and Marketing.

Sales and marketing expenses increased by $48.9 million, or 52%, primarily due to:

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• an increase of $13.5 million related to increasing utilization of lead generation channels during the 2022 period;

• an increase in employee compensation and benefits of $6.9 million, inclusive of an increase in share-based compensation expense of $2.7 million, which was correlated with an increase in sales and marketing personnel to support our growth.

We also had an increase in average compensation in the 2022 period;

• an increase in employee compensation and benefits of $8.2 million, inclusive of an increase in share-based compensation expense of $2.3 million and of which $1.9 million was attributable to Technisys.

The remaining increase was correlated with an increase in sales and marketing personnel to support our growth;

• an increase in direct customer promotional expenditures of $2.7 million, which is one of our levers for stimulating member product adoption and engagement;

• increases in travel and entertainment-related expenditures and software licenses and tools and subscriptions expenses.

Six Months—Sales and Marketing.

Sales and marketing expenses increased by $99.8 million, or 55%, primarily due to:

• an increase in advertising expenditures of $39.4 million, which was primarily attributable to an increase in direct mail, search and social network advertising expenditures in the 2022 period;

• an increase of $28.3 million related to increasing utilization of lead generation channels during the 2022 period;

• an increase in employee compensation and benefits of $15.1 million, inclusive of an increase in share-based compensation expense of $5.0 million and of which $2.3 million was attributable to Technisys.

The remaining increase was correlated with an increase in sales and marketing personnel to support our growth;

• an increase in direct customer promotional expenditures of $6.5 million, which is one of our levers for stimulating member product adoption and engagement;

• an increase of SoFi Stadium related expenditures of $2.3 million, which is exclusive of depreciation and interest expense on the embedded lease portion of our SoFi Stadium agreement;

• the remaining increase was primarily related to travel and entertainment-related expenditures and software licenses and tools and subscriptions expenses.

Cost of Operations.

• increases related to travel and entertainment-related expenditures and software licenses and tools and subscriptions expenses.

Three Months—Cost of Operations.

Cost of operations increased by $18.5 million, or 30%, primarily due to:

• an increase in employee compensation and benefits of $8.9 million, which was correlated with an increase in cost of operations personnel in support of our growth, in addition to an increase in average compensation in the 2022 period;

• an increase in employee compensation and benefits of $10.3 million, inclusive of an increase in share-based compensation expense of $2.1 million, which was correlated with an increase in cost of operations personnel in support of our growth, as well as an increase in average compensation in the 2022 period;

• an increase of $2.2 million in third-party fulfillment costs, which was primarily related to payment processing network association fees associated with increased activity in the Technology Platform segment;

• an increase in software licenses, tools and subscriptions and other related fees of $3.3 million, consistent with headcount increases and internal technology initiatives;

• an increase in credit card processing and fulfillment costs of $0.7 million related to increased credit card activity;

• an increase in operational losses of $0.4 million;

• a decrease in loan origination and servicing expenses of $3.1 million, of which $4.8 million was related to home loans, partially offset by an increase of $1.8 million related to personal loans, which were primarily attributable to changes in origination volume period over period.

Six Months—Cost of Operations.

Cost of operations increased by $31.3 million, or 27%, primarily due to:

• an increase in employee compensation and benefits of $19.2 million, inclusive of an increase in share-based compensation expense of $4.8 million, which was correlated with an increase in cost of operations personnel in support of our growth, as well as an increase in average compensation in the 2022 period;

• an increase of $4.5 million in third-party fulfillment costs, which was primarily related to payment processing network association fees associated with increased activity in the Technology Platform segment;

SoFi Technologies, Inc.

• an increase in software licenses, tools and subscriptions and other related fees of $5.2 million, consistent with headcount increases and internal technology initiatives;

• an increase in operational losses of $2.1 million;

• an increase in credit card processing and fulfillment costs of $1.6 million related to increased credit card activity;

• a decrease in loan origination and servicing expenses of $3.3 million, of which $4.2 million was related to home loans and was correlated with a decline in home loan originations during the 2022 period;

General and Administrative.

• a decrease in loan origination and servicing expenses of $6.4 million, of which $9.0 million was related to home loans, partially offset by an increase of $2.9 million related to personal loans, which were primarily attributable to changes in origination volume period over period.

Three Months—General and Administrative.

General and administrative expenses decreased by $45.4 million, or 27%, primarily due to:

• favorability resulting from $89.9 million of expense in the 2021 period associated with the fair value increase of our warrant liabilities.

• favorability resulting from the absence in the 2022 period of $71.0 million of expense incurred in the 2021 period associated with the fair value increase of our warrant liabilities.

The Series H warrants were reclassified to permanent equity in the second quarter of 2021 in conjunction with the Business Combination and, therefore, had no impact on the 2022 period;

• an increase in employee compensation and benefits of $39.1 million, inclusive of an increase in share-based compensation expense of $28.3 million, which was related to an increase in general and administrative personnel to support our growing infrastructure and administrative needs in addition to an increase in average compensation in the 2022 period;

• an increase in transaction-related expenses of $14.4 million associated with our acquisitions during the 2022 period;

• a decrease in transaction-related expenses of $20.4 million, of which $21.2 million of the variance was attributable to the special payment made to the Series 1 preferred stockholders in the second quarter of 2021 associated with the Business Combination;

• an increase in employee compensation and benefits of $35.0 million, inclusive of an increase in share-based compensation expense of $21.8 million and additional increases attributable to Technisys of $1.8 million.

The remaining increase was related to an increase in general and administrative personnel to support our growing infrastructure and administrative needs, as well as an increase in average compensation in the 2022 period;

• an increase of $4.4 million related to aggregate credit card and personal loan third party fraud events in the 2022 period;

• an increase in corporate insurance of $2.6 million, which was primarily attributable to the increased costs of being a public company;

• an increase in occupancy-related costs of $0.6 million.

Provision for Credit Losses.

The provision for credit losses of $13.0 million during the three months ended March 31, 2022 reflects the expected credit losses of $12.0 million associated with our credit card loans, which reflected elevated credit card loss rates during the current period, and the remainder associated with loans acquired in the Bank Merger in the 2022 period.

We had a net loss of $110.4 million for the three months ended March 31, 2022 compared to $177.6 million for the three months ended March 31, 2021.

The decrease in loss for the current period was due to the factors discussed above, net of the change in income taxes.

For the three months ended March 31, 2022 and 2021, we recorded income tax expense of $752 and $1,099, respectively, which was primarily due to income tax expense associated with the profitability of SoFi Lending Corp.

in some state jurisdictions where a separate company filing is required.

For the three-months ended March 31, 2022, this expense was partially offset by income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to the Technisys Merger.

• an increase in corporate insurance of $1.3 million and professional services costs of $1.6 million, which were primarily attributable to the increased costs of being a public company.

Six Months—General and Administrative.

General and administrative expenses decreased by $70.6 million, or 21%, primarily due to:

• favorability resulting from the absence in the 2022 period of $160.9 million of expense incurred in the 2021 period associated with the fair value increase of our warrant liabilities.

The Series H warrants were reclassified to permanent equity in the second quarter of 2021 in conjunction with the Business Combination and, therefore, had no impact on the 2022 period;

• a decrease in transaction-related expenses of $6.0 million during the 2022 period, which was attributable to the special payment of $21.2 million to the Series 1 preferred stockholders in the second quarter of 2021 associated with the Business Combination, partially offset by costs associated with our acquisitions in the 2022 period;

• an increase in employee compensation and benefits of $74.1 million, inclusive of an increase in share-based compensation expense of $50.2 million and additional increases attributable to Technisys of $2.1 million.

The remaining increase was related to an increase in general and administrative personnel to support our growing infrastructure and administrative needs in addition to an increase in average compensation in the 2022 period;

• an increase of $13.7 million related to aggregate credit card and personal loan third party fraud events in the 2022 period;

• an increase in corporate insurance of $3.9 million and professional services costs of $1.1 million, which were primarily attributable to the increased costs of being a public company.

Three Months—Provision for Credit Losses.

The provision for credit losses increased by $9.6 million, which reflected higher average credit card balances combined with elevated credit card loss rates during the 2022 period.

Six Months—Provision for Credit Losses.

The provision for credit losses increased by $22.6 million, which reflected higher average credit card balances combined with elevated credit card loss rates during the 2022 period.

The provision in the 2022 period was also impacted by loans acquired in the Bank Merger.

SoFi Technologies, Inc.

We had a net loss of $95.8 million for the three months ended June 30, 2022 compared to $165.3 million for the three months ended June 30, 2021, and a net loss of $206.2 million for the six months ended June 30, 2022 compared to $342.9 million for the six months ended June 30, 2021.

The decreases in losses for the current periods were due to the factors discussed above, net of the change in income taxes.

For the three months ended June 30, 2022 and 2021, we recorded income tax (expense) benefit of $(0.1) million and $0.1 million, respectively.

For the six months ended June 30, 2022 and 2021, we recorded income tax (expense) of $(0.9) million and $(1.0) million, respectively.

The income tax expense was primarily due to income tax expense associated with the profitability of SoFi Lending Corp.

and, for the 2022 periods, SoFi Bank, in some state jurisdictions where separate company filing is required.

In the 2022 periods, this expense was partially offset by income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to the Technisys Merger.

Summary Results by Segment

Lending Segment

In the table below, we present certain metrics related to our Lending segment.

Three Months Ended March 31, 2022 vs 2021

In the table below, we present certain metrics related to our Lending segment for the periods indicated:

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

2022 2021 2022 2021

Total products (number, as of period end) 1,202,027 981,440 22 % 1,202,027 981,440 22 %

14 unchanged sentences

(2) In-school loans carry a lower average balance than student loan refinancing products.

The following table presents additional information on the terms as of March 31, 2022 of the lending products we offer.

Total Products

Total products in our Lending segment is a subset of our total products metric.

See “ Key Business Metrics ” for further discussion of this measure as it relates to our Lending segment.

Origination Volume

We refer to the aggregate dollar amount of loans originated through our platform in a given period as origination volume.

Origination volume is an indicator of the size and health of our Lending segment and an indicator (together with the relevant loan characteristics, such as interest rate and prepayment and default expectations) of revenues and profitability.

Changes in origination volume are driven by the addition of new members and existing members, the latter of which at times will either refinance into a new SoFi loan or secure an additional, concurrent loan, as well as macroeconomic factors impacting consumer spending and borrowing behavior.

Since the profitability of the Lending segment is largely correlated with origination volume, management relies on origination volume trends to assess the need for external financing to support the Financial Services segment and the expense budgets for unallocated expenses.

During the three and six months ended June 30, 2022, home loan origination volume declined relative to the corresponding 2021 periods due to rising interest rates relative to the 2021 levels, which tends to lower demand for home loans overall and shift demand from refinance originations to purchase originations, the latter of which is a more competitive landscape and has historically represented a smaller percentage of our home loan originations.

SoFi Technologies, Inc.

Personal Loans.

During the three and six months ended June 30, 2022, personal loan origination volume increased significantly relative to the corresponding 2021 periods, primarily due to increased demand driven by expanded marketing efforts amid a backdrop of steady consumer confidence levels in the 2022 periods relative to the 2021 periods, combined with a positive impact from increased loan application approval rates that were implemented during the second half of 2021 and maintained during 2022.

Student Loans.

During the three and six months ended June 30, 2022, student loan origination volume decreased relative to the corresponding 2021 periods, as demand for student loan refinancing products continued to be unfavorably impacted by the ongoing suspension of principal and interest payments on federally-held student loans, combined with a rising interest rate environment in 2022.

Loans with a Balance and Average Loan Balance

Loans with a balance refers to the number of loans that have a balance greater than zero dollars as of the reporting date.

Loans with a balance allows management to better understand the unit economics of acquiring a loan in relation to the lifetime value of that loan.

Average loan balance is defined as the total unpaid principal balance of the loans divided by loans with a balance within the respective loan product category as of the reporting date.

Average loan balance tends to fluctuate based on the pace of loan originations relative to loan repayments and the initial loan origination size.

The following table presents additional information on the terms as of June 30, 2022 of the lending products we offer:

Product Loan Size Rates (1)

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Variable rate:

1.74% – 7.74% 5 – 20 years

1.74% – 7.99%

3.24% – 7.99%

In-School Loans

Variable rate:

1.25% – 11.29% 5 – 15 years

1.44% – 13.79%

3.75% – 13.55%

Personal Loans

5.74% – 21.78% 2 – 7 years

Home Loans $100,000 – $647,200 (3)(4)

$5,000 – $100,000 (2)

6.99% – 22.23%

$100,000 – $647,200 (3)(4)

2.38% – 6.88%

10, 15, 20 or 30 years

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__________________

(1) Loan annual percentage rates presented reflect rates as advertised as of the date indicated, inclusive of an auto-pay discount.

(1) Loan annual percentage rates presented reflect rates as advertised as of the date indicated, inclusive of an auto-pay discount, as applicable.

(2) Minimum loan size may be higher within certain states due to legal or licensing requirements.

3 unchanged sentences

“Jumbo Loans” refers to loans in the jumbo loan program.

In the table below, we present additional information related to our lending products.

Three Months Ended March 31,

SoFi Technologies, Inc.

In the table below, we present additional information related to our lending products during the periods indicated:

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Overall weighted average origination FICO

751 761 753 763

Student Loans

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__________________

(1) Weighted average interest rate earned represents annualized interest income recognized divided by the average of the four-month unpaid principal balances of loans outstanding during the period, which are impacted by the timing and extent of loan sales.

(1) Weighted average interest rate earned represents annualized interest income recognized divided by the average of the four- and seven-month unpaid principal balances of loans outstanding during the period, which are impacted by the timing and extent of loan sales.

The weighted average interest rates earned for the comparative 2021 periods were recast to conform to the current period methodology for calculating average balances.

(2) See “ Results of Operations—Interest Income ” for a discussion of interest income recognized during the periods indicated.

Total Products

Total products in our Lending segment is a subset of our total products metric.

See “ Key Business Metrics ” for further discussion of this measure as it relates to our Lending segment.

Origination Volume

We refer to the aggregate dollar amount of loans originated through our platform in a given period as origination volume.

During the three months ended March 31, 2022, home loan origination volume declined relative to the corresponding 2021 period due to rising interest rates relative to the 2021 levels, which tends to lower demand for home loans overall and shift demand from refinance originations to purchase originations, the latter of which is a more competitive landscape.

During the three months ended March 31, 2022, personal loan origination volume increased significantly relative to the corresponding 2021 period, primarily due to the improved economic outlook and consumer confidence levels in the 2022 period relative to the 2021 period, which we believe increased the overall demand for our personal loans.

We also increased our loan application approval rate during the second half of 2021 and maintained those approval levels during 2022, which positively impacted the 2022 period.

During the three months ended March 31, 2022, student loan origination volume decreased modestly relative to the 2021 period, as demand for student loan refinancing products continued to be unfavorably impacted by the automatic suspension of principal and interest payments on federally-held student loans that was extended most recently through August 2022.

Loans with a Balance and Average Loan Balance

Loans with a balance refers to the number of loans that have a balance greater than zero dollars as of the reporting date.

Loans with a balance allows management to better understand the unit economics of acquiring a loan in relation to the lifetime value of that loan.

Average loan balance is defined as the total unpaid principal balance of the loans divided by loans

with a balance within the respective loan product category as of the reporting date.

Average loan balance tends to fluctuate based on the pace of loan originations relative to loan repayments and the initial loan origination size.

Lending Segment Results of Operations

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The information is derived from our internal financial reporting used for corporate management purposes.

During the three months ended March 31, 2022, we implemented an FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, as further discussed below.

Refer to Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for more information on the FTP framework.

Three Months Ended March 31, 2022 vs 2021

In the first quarter of 2022, we implemented an FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, as further discussed below.

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Net interest income (1)

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Servicing rights – change in valuation inputs or assumptions (2)

(11,580) 12,109 (196) %

(9,098) 224 n/m (20,678) 12,333 (268) %

Residual interests classified as debt – change in valuation inputs or assumptions (3)

3 unchanged sentences

Contribution profit

$ 141,991 $ 89,188 59 % $ 274,642 $ 176,874 55 %

Adjusted net revenue (5)

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___________________

(1) Net interest income and, thereby, total net revenue and contribution profit for our Lending segment reported for the three months ended March 31, 2022 reflects the implementation of an FTP framework, under which Lending segment net interest income represents the difference between interest income earned on our loans and an FTP charge for the segment’s use of funds to originate loans, which can fluctuate based on changes in interest rates, funding curves, the composition of our balance sheet and the availability of capital.

For the comparative period ended March 31, 2021, Lending segment net interest income reflected the external financing costs for our loans.

If we had applied our current FTP framework during the comparative period, the Lending segment net interest income would have decreased by $0.1 million, which we deemed immaterial.

(1) Net interest income and, thereby, total net revenue and contribution profit for our Lending segment reported for the three and six months ended June 30, 2022 reflects the implementation of an FTP framework, under which Lending segment net interest income represents the difference between interest income earned on our loans and an FTP charge for the segment’s use of funds to originate loans, which can fluctuate based on changes in interest rates, funding curves, the composition of our balance sheet and the availability of capital.

For the comparative periods ended June 30, 2021, Lending segment net interest income reflected the external financing costs for our loans.

If we had applied our current FTP framework during the comparative three and six month periods, the Lending segment net interest income would have increased by $1.4 million and $2.7 million, respectively.

(2) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates.

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As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.

SoFi Technologies, Inc.

(3) Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates.

8 unchanged sentences

Net interest income

Net interest income in our Lending segment increased by $42.6 million, or 82%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, due to the following:

Loans Interest Income.

Loans interest income increased by $34.0 million, or 44%, period over period.

See “Results of Operations—Interest Income—Loans” for information on the primary drivers of the variance related to our personal loans, student loans and home loans.

Securitizations Interest Income.

Securitizations interest income decreased by $1.7 million, or 38%, period over period.

See “Results of Operations—Interest Income—Securitizations” for information on the primary drivers of the variance.

Net interest income in our Lending segment increased by $57.2 million, or 101%, for the three months ended June 30, 2022 compared to the same period in 2021, and increased by $99.8 million, or 92%, for the six months ended June 30, 2022 compared to the same period in 2021, the components of which are discussed below.

Three Months—Loans Interest Income.

Loans interest income increased by $61.4 million, or 77%, for the three months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Interest Income—Three Months—Loans” for information on the primary drivers of the variance related to our personal loans, student loans and home loans.

Six Months—Loans Interest Income.

Loans interest income increased by $95.3 million, or 61%, for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Interest Income—Six Months—Loans” for information on the primary drivers of the variance related to our personal loans, student loans and home loans.

Three Months—Securitizations Interest Income.

Securitizations interest income decreased by $1.2 million, or 32%, for the three months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Interest Income—Three Months—Securitizations” for information on the primary drivers of the variance.

Six Months—Securitizations Interest Income.

Securitizations interest income decreased by $2.9 million, or 36%, for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Interest Income—Six Months—Securitizations” for information on the primary drivers of the variance.

Interest Expense.

Interest expense in our Lending segment decreased by $10.3 million, or 35%, period over period.

For the full 2022 period compared to the full 2021 period, interest expense in our Lending segment reflected the following:

(i) a decline in securitization debt interest expense (exclusive of debt issuance and discount amortization) of $5.4 million;

(ii) a decline in residual interests classified as debt interest expense of $0.7 million;

and (iii) a decline in debt issuance cost interest expense of $3.2 million.

Additionally, in the 2022 period, we recognized the actual interest incurred on our use of securitizations and warehouse facilities for one month of $1.7 million and FTP interest expense for two months of $7.8 million, which was a framework we implemented during the quarter.

In the 2021 period, which was prior to our implementation of an FTP framework, we recognized the actual interest incurred on our use of securitizations and warehouse facilities for the full quarter of $10.5 million.

See Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for further discussion of the FTP framework.

Interest expense increased by $3.0 million, or 11%, for the three months ended June 30, 2022 compared to the same period in 2021, and decreased by $7.4 million, or 13%, for the six months ended June 30, 2022 compared to the same period in 2021.

For the three and six month 2022 periods relative to the comparable 2021 periods, interest expense in our Lending segment reflected the following:

(i) a decline in securitization debt interest expense (exclusive of debt issuance and discount amortization) of $4.2 million and $9.6 million, respectively;

(ii) a decline in residual interests classified as debt interest expense of $1.1 million and $1.8 million, respectively;

and (iii) a decline in debt issuance cost interest expense of $2.8 million and $6.2 million, respectively.

Additionally, in the six-month 2022 period, we recognized the actual interest incurred on our use of securitizations and warehouse facilities for one month of $1.7 million and FTP interest expense for five months of $28.2 million, which was a framework we implemented during the first quarter.

In the 2021 periods, which were prior to our implementation of an FTP framework, we recognized the actual interest incurred on our use of securitizations and warehouse facilities for the full three and six month periods of $9.3 million and $19.8 million, respectively.

Noninterest income

Noninterest income in our Lending segment increased by $62.4 million, or 65%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, due to the following:

Loan Origination and Sales.

Loan origination and sales increased by $47.4 million, or 43%, period over period.

See “Results of Operations—Noninterest Income and Net Revenue—Loan Origination and Sales” for information on the primary drivers of the variance.

Securitizations.

Securitizations income decreased by $9.2 million, or 454%, period over period.

See “Results of Operations—Noninterest Income and Net Revenue—Securitizations” for information on the primary drivers of the variance.

Servicing income increased by $24.3 million, or 201%, period over period.

Noninterest income in our Lending segment increased by $33.6 million, or 31%, for the three months ended June 30, 2022 compared to the same period in 2021, and increased by $96.1 million, or 47%, for the six months ended June 30, 2022 compared to the same period in 2021, the components of which are discussed below.

Three Months—Loan Origination and Sales.

Loan origination and sales increased by $34.7 million, or 32%, for the three months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Three Months—Loan Origination and Sales” for information on the primary drivers of the variance.

Six Months—Loan Origination and Sales.

Loan origination and sales increased by $82.1 million, or 37%, for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Six Months—Loan Origination and Sales” for information on the primary drivers of the variance.

SoFi Technologies, Inc.

Three Months—Securitizations.

Securitizations income decreased by $11.7 million for the three months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Three Months—Securitizations” for information on the primary drivers of the variance.

Six Months—Securitizations.

Securitizations income decreased by $21.0 million for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Six Months—Securitizations” for information on the primary drivers of the variance.

Three Months—Servicing.

Servicing income increased by $10.6 million for the three months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Servicing” for information on the primary drivers of the variance.

Six Months—Servicing.

Servicing income increased by $35.0 million, or 283%, for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Servicing” for information on the primary drivers of the variance.

Directly attributable expenses

The directly attributable expenses allocated to the Lending segment that were used in the determination of the segment's contribution profit were as follows.

Three Months Ended March 31, 2022 vs 2021

The directly attributable expenses allocated to the Lending segment that were used in the determination of the segment's contribution profit were as follows for the periods indicated:

Three Months Ended

June 30, 2022 vs 2021

Six Months Ended

June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

3 unchanged sentences

Loan origination and servicing costs 10,471 13,545 (23) % 21,102 27,537 (23) %

Unused warehouse line fees 2,684 3,701 (27) %

Professional services 2,349 1,256 87 % 3,869 2,697 43 %

3 unchanged sentences

(1) Other expenses primarily include loan marketing expenses, third party loan fraud, member promotional expenses, tools and subscriptions, travel and occupancy-related costs.

Lending segment directly attributable expenses for the three months ended March 31, 2022 increased by $31.4 million, or 39%, compared to the three months ended March 31, 2021, primarily due to the following:

• increases of $15.2 million due to increasing utilization of lead generation channels associated with increased personal loan origination volume in the 2022 period;

• increases of $13.9 million in direct advertising related to direct mail, search engine and social network advertising, partially offset by declines in television advertisement;

• increases of $2.2 million in allocated compensation and related benefits, which primarily reflected increases in headcount allocated to the lending segment, partially offset by declines in home loan commissions of $0.8 million attributable to a decline in home loan originations period over period;

• increases of $0.1 million in professional services costs, which were largely audit and advisory related costs;

• increases of $4.4 million in other expenses, primarily related to third-party personal loan fraud of $5.3 million during the 2022 period, which was offset by a decline in bad debt expense of $0.8 million;

• decreases of $3.4 million in loan origination and servicing costs, which was largely attributable to declines in home loan origination costs of $4.4 million that correlated with the decline in period-over-period home loan origination volume.

This decline was partially offset by an increase in personal loan origination costs of $1.2 million, which corresponded with the increase in personal loan origination volume period over period;

• decreases of $1.0 million in unused warehouse line fees due to higher average committed warehouse line usage and lower unused fee rates.

Lending segment directly attributable expenses for the three and six months ended June 30, 2022 increased by $25.6 million, or 31%, and $57.0 million, or 35%, respectively, compared to the same periods in 2021, primarily due to the following:

• increases of $11.6 million for the three-month period and $25.6 million for the six-month period in direct advertising related to direct mail, search engine and social network advertising, partially offset by declines in television advertisement;

• increases of $9.8 million for the three-month period and $25.0 million for the six-month period due to increasing utilization of lead generation channels primarily associated with increased personal loan origination volume in the 2022 periods;

• increases of $5.7 million for the three-month period and $7.8 million for the six-month period in allocated compensation and related benefits, which primarily reflected increases in headcount allocated to the lending segment, partially offset by declines in home loan commissions of $0.3 million and $1.1 million for the three and six-month periods, respectively, attributable to declines in home loan originations;

• increases of $1.1 million for the three-month period and $1.2 million for the six-month period in professional services costs, which were largely audit and advisory related costs;

• increases of $0.5 million for the three-month period and $3.9 million for the six-month period in other expenses.

The three-month variance was primarily related to increased tools and subscriptions costs.

The six-month variance was primarily related to third-party personal loan fraud of $5.3 million during the 2022 period and increased tools and subscriptions costs, which were partially offset by a decline in bad debt expense of $0.8 million;

• decreases of $3.1 million for the three-month period and $6.4 million for the six-month period in loan origination and servicing costs, which were largely attributable to decreases in home loan origination costs of $4.7 million and $9.1 million, respectively, that correlated with declines in home loan origination volume.

This decline was partially offset

SoFi Technologies, Inc.

by increases in personal loan origination costs of $1.6 million and $2.8 million, respectively, which corresponded with increases in personal loan origination volume.

Technology Platform Segment

In the table below, we present a metric that is related to Galileo within our Technology Platform segment.

March 31, 2022 March 31, 2021 2022 vs 2021

June 30, 2022 June 30, 2021 2022 vs 2021

Total accounts

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Refer to Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for further information regarding Technology Platform segment performance.

Three Months Ended March 31, 2022 vs 2021

Three Months Ended June 30, 2022 vs 2021

% Change Six Months Ended June 30, 2022 vs 2021

($ in thousands)

Net interest income (loss) $ — $ (36) (100) %

2022 2021 2022 2021

Net interest expense $ — $ (32) (100) % $ — $ (68) (100) %

Noninterest income 83,899 45,329 85 % 144,704 91,430 58 %

Total net revenue

83,899 45,297 85 % 144,704 91,362 58 %

Directly attributable expenses (1)

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$ 21,841 $ 13,013 68 % $ 40,096 $ 28,698 40 %

___________________

(1) For a disaggregation of the directly attributable expenses allocated to the Technology Platform segment in each of the periods presented, see “ Directly Attributable Expenses ” below.

Noninterest income

Noninterest income in our Technology Platform segment increased by $14.7 million, or 32%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, due to the following:

Technology Products and Solutions.

Technology products and solutions revenues increased by $15.0 million, or 33%, period over period.

Noninterest income in our Technology Platform segment increased by $38.6 million, or 85%, for the three months ended June 30, 2022 compared to the same period in 2021, and increased by $53.3 million, or 58%, for the six months ended June 30, 2022 compared to the same period in 2021, the components of which are discussed below.

Three and Six Months—Technology Products and Solutions.

Technology products and solutions revenues increased by $38.4 million, or 85%, for the three months ended June 30, 2022 compared to the same period in 2021 and by $53.4 million, or 59%, for the six months ended June 30, 2022 compared to the same period in 2021.

See “Results of Operations—Noninterest Income and Net Revenue—Technology Products and Solutions” for information on the primary drivers of the variance.

In addition, the variance includes $0.8 million of intercompany revenue during the 2022 period.

Other income decreased by $0.3 million, or 60%, period over period, which was correlated with a decline in payment network transaction volume on our technology platform.

In addition, the variances are inclusive of $1.7 million and $2.4 million of intercompany revenue for the three and six months ended June 30, 2022, respectively.

SoFi Technologies, Inc.

Directly attributable expenses

The directly attributable expenses allocated to the Technology Platform segment that were used in the determination of the segment's contribution profit were as follows.

Three Months Ended March 31, 2022 vs 2021

The directly attributable expenses allocated to the Technology Platform segment that were used in the determination of the segment's contribution profit were as follows for the periods indicated:

Three Months Ended June 30, 2022 vs 2021

% Change Six Months Ended June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

6 unchanged sentences

___________________

(1) Other expenses are primarily related to advertising and marketing, occupancy-related costs, bad debt and data center expenses.

Technology Platform segment directly attributable expenses for the three months ended March 31, 2022 increased by $12.2 million, or 40%, compared to the three months ended March 31, 2021, primarily due to the following:

• increases of $9.1 million in compensation and benefits expense, which was correlated with an increase in personnel to support segment growth, as well as an increase in average compensation during the 2022 period.

In addition, the segment had expense of $5.1 million related to Technisys compensation and benefits during the 2022 period;

• increases of $2.4 million in product fulfillment costs, primarily related to payment processing network association fees associated with increased activity on the platform.

These fees grew by 27% during the 2022 period compared to 2021, which positively correlated with the applicable integrated platform-as-a-service growth in our technology products and solutions revenues;

• increases of $1.4 million in tools and subscriptions costs related to headcount increases and internal technology initiatives to support the growth of the platform, along with the inclusion of Technisys in our 2022 results;

• increases of $0.2 million in professional services costs, of which $0.8 million were related to the operations of Technisys in the 2022 period, with a partially offsetting decrease due to a decline in legal fees period over period;

• decreases of $0.9 million in other expenses, which were primarily related to a reversal of provision for credit losses in the 2022 period associated with the recovery of significantly aged accounts receivable.

(1) Other expenses are primarily related to advertising and marketing, travel and occupancy-related costs, bad debt and data center expenses.

Technology Platform segment directly attributable expenses increased by $29.8 million, or 92%, for the three months ended June 30, 2022 compared to the same period in 2021 and by $41.9 million, or 67%, for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to the following:

• increases of $20.1 million for the three-month period and $29.2 million for the six-month period in compensation and benefits expense, which was correlated with an increase in personnel to support segment growth, as well as an increase in average compensation during the 2022 periods.

Technisys compensation and benefits contributed $13.5 million and $18.7 million during the three- and six-month 2022 periods, respectively;

• increases of $2.1 million for the three-month period and $4.5 million for the six-month period in product fulfillment costs, primarily related to payment processing network association fees associated with increased activity on the platform.

These fees grew by 28% during both the three- and six-month 2022 periods relative to the comparable 2021 periods, which positively correlated with the applicable integrated platform-as-a-service growth in our technology products and solutions revenues;

• increases of $2.1 million for the three-month period and $3.5 million for the six-month period in tools and subscriptions costs related to headcount increases and internal technology initiatives to support the growth of the platform, along with the inclusion of Technisys in our 2022 results;

• increases of $2.7 million for the three-month period and $3.0 million for the six-month period in professional services costs, of which $2.6 million and $3.2 million, respectively, were related to the operations of Technisys;

• increases of $2.7 million for the three-month period and $1.8 million for the six-month period in other expenses, which were primarily related to advertising, marketing and travel and occupancy-related costs that were largely incurred at Technisys, partially offset by a reversal of provision for credit losses in the six-month 2022 period associated with the recovery of significantly aged accounts receivable.

Financial Services Segment

In the table below, we present a key metric related to our Financial Services segment:

March 31, 2022 March 31, 2021 2022 vs.

June 30, 2022 June 30, 2021 2022 vs.

Total products (number, as of period end) 5,362,147 2,685,681 100 %

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The information is derived from our internal financial reporting used for corporate management purposes.

During the three months ended March 31, 2022, we implemented an FTP framework to attribute net interest income to our business

segments based on their usage and/or provision of funding, as further discussed below.

Refer to Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for more information on the FTP framework.

Three Months Ended March 31, 2022 vs 2021

SoFi Technologies, Inc.

first quarter of 2022, we implemented an FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, as further discussed below.

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands)

2022 2021 2022 2021

Net interest income (1)

$ 5,882 $ 229 n/m

$ 12,925 $ 542 n/m $ 18,807 $ 771 n/m

Noninterest income 17,438 16,497 6 % 35,099 22,731 54 %

Total net revenue

30,363 17,039 78 % 53,906 23,502 129 %

Directly attributable expenses (2)

2 unchanged sentences

___________________

(1) Net interest income and, thereby, total net revenue and contribution loss for our Financial Services segment reported for the three months ended March 31, 2022 reflects the implementation of an FTP framework, under which Financial Services segment net interest income reflects the difference between an FTP credit for the segment’s provision of deposits as a source of funding and an FTP charge for the segment’s use of funds to originate credit card loans.

For the comparative period ended March 31, 2021, our Financial Services segment net interest income was nominal, as it did not have deposits and the credit card product was nascent.

As such, the Financial Services segment net interest income would not have been materially impacted by the application of the FTP framework to the comparative 2021 period.

(1) Net interest income and, thereby, total net revenue and contribution loss for our Financial Services segment reported for the three and six months ended June 30, 2022 reflects the implementation of an FTP framework, under which Financial Services segment net interest income reflects the difference between an FTP credit for the segment’s provision of deposits as a source of funding and an FTP charge for the segment’s use of funds to originate credit card loans.

For the comparative periods ended June 30, 2021, our Financial Services segment net interest income was nominal, as it did not have deposits and the credit card product was nascent.

If we had applied our current FTP framework during the comparative three and six month periods, the Financial Services segment net interest income would have decreased by $0.1 million and $0.1 million, respectively.

(2) For a disaggregation of the directly attributable expenses allocated to the Financial Services segment in each of the periods presented, see “ Directly Attributable Expenses ” below.

Net interest income

Net interest income in our Financial Services segment increased by $5.7 million for the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

For the 2022 period, net interest income primarily reflected net interest income earned on our credit card loans, and net interest income based on our FTP framework, which corresponded with the level of deposits at SoFi Bank.

The gross interest income FTP credit applied to the Financial Services segment was $3.2 million during the 2022 period and eliminates in consolidation.

In addition, net interest income earned on our credit card loans increased by $2.3 million period over period, which was attributable to a growth in average balance.

Net interest income in our Financial Services segment increased by $12.4 million for the three months ended June 30, 2022 compared to the same period in 2021 and by $18.0 million for the six months ended June 30, 2022 compared to the same period in 2021.

For the three- and six-month 2022 periods, net interest income primarily reflected net interest income earned on our deposits of $8.7 million and $11.5 million, respectively, which includes interest income based on our FTP framework (which eliminates in consolidation) and interest expense to members, and corresponds with the level of deposits at SoFi Bank.

In addition, net interest income earned on our credit card loans increased by $2.6 million and $5.6 million for the three and six month periods, respectively, which was attributable to growth in the average balance.

Noninterest income

Noninterest income in our Financial Services segment increased by $11.4 million, or 183%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily due to the following:

• increases in referral fees of $5.5 million, which were primarily attributable to growth in our partner relationships and related activity, as we continue to onboard new partners and help drive volume to these partners, as well as increases associated with a referral fulfillment arrangement we entered into in the third quarter of 2021;

• increases in payment network fees of $3.1 million and brokerage-related fees of $0.1 million, the former of which coincided with increased credit card and debit card transaction volume;

• a reduction in trading losses related to our SoFi Invest product of $2.1 million;

• increases of $0.5 million in non-payment network related credit card fees.

Noninterest income in our Financial Services segment increased by $0.9 million, or 6%, for the three months ended June 30, 2022 compared to the same period in 2021 and by $12.4 million, or 54% for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to the following:

• increases in referral fees of $5.7 million for the three-month period and $11.2 million for the six-month period, which were primarily attributable to a referral fulfillment arrangement we entered in the third quarter of 2021, as well as growth in our partner relationships and related activity, as we continue to onboard new partners and help drive volume to these partners;

• increases in payment network fees of $1.5 million for the three-month period and $4.6 million for the six-month period, which coincided with increased credit card and debit card transaction volume;

• increases of $0.6 million for the three-month period and $1.1 million for the six-month period in non-payment network related credit card fees;

• a reduction in trading losses related to our SoFi Invest product during the six-month period of $1.6 million;

• decreases in brokerage-related fees of $2.9 million for the three-month period and $2.8 million for the six-month period, which coincided with lower digital assets trading volume on our platform during the 2022 periods;

• decreases in enterprise service fees of $2.5 million for the three-month period and $2.3 million for the six-month period, which were primarily related to advisory service revenues of $2.6 million recognized in the second quarter of 2021;

• decreases in equity capital markets services of $1.8 million for both the three and six-month periods, related to underwriting fee revenue recognized in the second quarter of 2021.

SoFi Technologies, Inc.

Directly attributable expenses

The directly attributable expenses allocated to the Financial Services segment that were used in the determination of the segment's contribution loss were as follows:

Three Months Ended March 31, 2022 vs 2021

The directly attributable expenses allocated to the Financial Services segment that were used in the determination of the segment's contribution loss were as follows for the periods indicated:

Three Months Ended June 30, 2022 vs 2021

Six Months Ended June 30, 2022 vs 2021

($ in thousands) 2022 2021 2022 2021

Compensation and benefits $ 26,371 $ 19,800 33 % $ 50,309 $ 38,584 30 %

Provision for credit losses 12,961 — n/m

Product fulfillment 7,197 5,043 43 %

Provision for credit losses 10,103 486 n/m 23,064 486 n/m

Direct advertising 9,299 3,030 207 % 16,151 6,798 138 %

Member incentives 9,202 4,309 114 % 15,805 9,290 70 %

Product fulfillment 8,228 5,074 62 % 15,425 10,117 52 %

Lead generation 6,064 2,388 154 % 8,573 5,206 65 %

Professional services 1,234 836 48 % 2,334 2,404 (3) %

Intercompany technology platform expenses 770 — n/m

Intercompany technology platform expenses 953 — n/m 1,723 — n/m

12,609 5,861 115 % 23,737 10,881 118 %

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(1) Other expenses primarily include tools and subscriptions, operational product losses, third party fraud expense, travel and occupancy-related costs, and marketing-related expenses.

Financial Services directly attributable expenses for the three months ended March 31, 2022 increased by $31.1 million, or 74%, compared to the three months ended March 31, 2021, primarily due to the following:

• increases of $13.0 million related to our provision for credit losses, to which our credit card loans contributed $12.0 million, and the remainder was associated with loans acquired in the Bank Merger during the 2022 period.

The increase in provision for credit losses for credit card loans was reflective of both an increase in average balance and an increase in our estimate of the expected future credit loss rate;

• increases of $5.2 million in compensation and benefits expense, which was consistent with our ongoing prioritization of growth in the Financial Services segment, which required additional staffing;

• increases of $3.1 million in direct advertising costs primarily driven by an increase in search engine and social network marketing.

All marketing initiatives were primarily related to the continued promotion of, and growth in, our Financial Services products;

• increases of $2.2 million in product fulfillment costs related to SoFi Invest, SoFi Checking and Savings, and SoFi Money cash management, which included such activities as brokerage expenses and debit card fulfillment services, operating SoFi Bank, and operating our cash management sweep program.

In addition, we had $1.1 million of higher costs related to credit card fulfillment in the 2022 period;

• increases of $1.6 million primarily related to direct member incentives utilized to drive adoption and usage of our various Financial Services products, the most significant of which was SoFi Money cash management and SoFi Checking and Savings;

• increases of $6.1 million in other costs, which were primarily related to operational product losses of $2.1 million and third-party credit card fraud of $4.0 million;

• decreases of $0.5 million in professional services costs, which were primarily related to reduced third-party technology and product consulting and contractor usage;

• decreases of $0.3 million related to lead generation, which was consistent with our efforts to rely less on referrals period over period for product growth.

Financial Services directly attributable expenses increased by $42.3 million, or 101%, for the three months ended June 30, 2022 compared to the same period in 2021 and by $73.4 million, or 88%, for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to the following:

• increases of $9.6 million for the three-month period and $22.6 million for the six-month period related to our provision for credit losses, which were primarily related to increases in the provision for credit card loans of $10.3 million and $22.2 million, respectively, due to higher average credit card balances combined with elevated credit card loss rates during the 2022 periods.

The remaining changes were associated with loans acquired in the Bank Merger during the first quarter of 2022;

• increases of $6.6 million for the three-month period and $11.7 million for the six-month period in compensation and benefits expense, which were consistent with our ongoing prioritization of growth in the Financial Services segment, which required additional staffing;

• increases of $6.3 million for the three-month period and $9.4 million for the six-month period in direct advertising costs primarily driven by an increase in search engine and social network marketing.

The marketing initiatives were primarily related to the continued promotion of, and growth in, our Financial Services products;

• increases of $4.9 million for the three-month period and $6.5 million for the six-month period primarily related to increased direct member incentives utilized to drive adoption and usage of our Financial Services products, the most significant of which was SoFi Checking and Savings, partially offset by lower incentives related to SoFi Invest;

• increases of $3.2 million for the three-month period and $5.3 million for the six-month period in product fulfillment costs related to SoFi Checking and Savings and SoFi Money cash management, which included such activities as brokerage expenses and debit card fulfillment services, operating SoFi Bank, and operating our cash management sweep program.

In addition, we had $0.9 million and $2.0 million of higher costs related to credit card fulfillment for the three- and six-month 2022 periods, respectively;

• increases of $3.7 million for the three-month period and $3.4 million for the six-month period related to lead generation, primarily related to SoFi Checking and Savings;

• an increase of $0.4 million for the three-month period in professional services costs;

• increases of $6.7 million for the three-month period and $12.9 million for the six-month period in other costs, which were primarily related to third-party credit card fraud of $4.4 million and $8.4 million, respectively, and operational product losses of $0.6 million and $2.7 million, respectively.

In addition, we had increases in travel and occupancy-related costs and tools and subscriptions costs.

SoFi Technologies, Inc.

Corporate/Other Non-Reportable Segment

Non-segment operations are classified as Corporate/Other (previously referred to as “Other”), which includes net revenues associated with corporate functions that are not directly related to a reportable segment, as well as, beginning in the first quarter of 2022, the financial impact of our capital management activities within the treasury function, which reflects the

residual impact from the FTP charges and FTP credits on our reportable segments under our FTP framework.

Refer to Note 17 to the Notes to Unaudited Condensed Consolidated Financial Statements for more information on the FTP framework.

Reconciliation of Directly Attributable Expenses

The following table reconciles directly attributable expenses allocated to our reportable segments to total noninterest expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands) 2022 2021 2022 2021

Reportable segments directly attributable expenses $ (254,811) $ (157,112) $ (482,140) $ (309,825)

Intercompany technology platform expenses 770 —

Intercompany expenses 1,671 — 2,441 —

Expenses not allocated to segments:

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(45,316) (36,944) (88,006) (69,224)

Fair value changes in warrant liabilities — (89,920)

Fair value change of warrant liabilities — (70,989) — (160,909)

Special payment (2)

— (21,181) — (21,181)

Other corporate and unallocated expenses (3)

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(1) Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.

(2) Includes corporate overhead costs that are not allocated to reportable segments, such as certain advertising, promotional and corporate marketing costs, transaction-related expenses, certain tools and subscription costs, and professional services costs.

(2) Included a special payment to the Series 1 preferred stockholders in connection with the Business Combination in the second quarter of 2021.

(3) Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate insurance expense and transaction-related expenses.

Liquidity and Capital Resources

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Historically, our Lending cash flow variability has related to loan origination and sales volume, our available funding sources and utilization of our warehouse facilities.

Moreover, given our continued growth initiatives, we have seen variability in financing cash flows due to the timing and extent of common stock and redeemable preferred stock raises, redemptions and additional uses and repayments of debt, and our convertible notes issuance.

Moreover, given our continued growth initiatives, we have seen variability in financing cash flows due to growth in deposits, the timing and extent of common stock and redeemable preferred stock raises, redemptions and additional uses and repayments of debt, and our convertible notes issuance.

Remaining operating cash flow variability is largely related to our investments in our business, such as technology and product investments and sales and marketing initiatives.

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• Sell our loans at favorable prices, or at all;

• Grow or maintain our deposit base over time;

• Meet our minimum capital requirements as a bank holding company and a national banking association;

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• Increase or extend the maturity of our revolving credit facility capacity;

• Satisfy our obligation to repay the convertible notes if they do not convert into common stock before maturity;

• Satisfy our obligation to repay our convertible notes if they do not convert into common stock before maturity;

• Meet margin requirements associated with hedging or financing agreements;

SoFi Technologies, Inc.

• Fund continued operating losses in our business, especially if such operating losses continue at the current level for an extended period of time;

• Make future investments in the necessary technological and operating infrastructure to support our business.

During the three months ended March 31, 2022, we generated negative cash flows from operations.

During the six months ended June 30, 2022, we generated negative cash flows from operations.

The primary drivers of operating cash flows related to our Lending segment are origination volume, the holding period of our loans, loan sale execution and, to a lesser extent, the timing of loan repayments.

We either fund our loan originations entirely using our

own capital, through proceeds from securitization transactions (applicable to 2021 only), via SoFi bank deposits or receive an advance rate from our various warehouse facilities to finance the majority of the loan amount.

We either fund our loan originations entirely using our own capital, through proceeds from securitization transactions (applicable to 2021 only), via SoFi bank deposits or receive an advance rate from our various warehouse facilities to finance the majority of the loan amount.

Our cash flows from operations were also impacted by material net losses in both periods.

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We have also utilized our revolving credit facility capacity to fund current liquidity needs in the normal course of business, such as general corporate activities.

Our revolving credit facility had remaining capacity of $74.0 million as of March 31, 2022, of which $6.0 million was not available for general borrowing purposes because it was utilized to secure the uncollateralized portion of certain letters of credit issued to secure certain of our operating lease obligations.

As of March 31, 2022, the remaining $3.1 million of the $9.1 million letters of credit outstanding was collateralized by cash deposits with the banking institution, which were presented within restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets.

As of March 31, 2022, we also maintained letters of credit associated with our banking activities of $8.2 million, which serve as collateral for public deposits and are collateralized by loans.

Our revolving credit facility had remaining capacity of $74.0 million as of June 30, 2022, of which $6.0 million was not available for general borrowing purposes because it was utilized to secure the uncollateralized portion of certain letters of credit issued to secure certain of our operating lease obligations.

As of June 30, 2022, the remaining $3.1 million of the $9.1 million letters of credit outstanding was collateralized by cash deposits with the banking institution, which were presented within restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets.

As of June 30, 2022, we also maintained letters of credit associated with our banking activities of $9.7 million, which serve as collateral for public deposits and are collateralized by loans.

Our warehouse facility and securitization debt is secured by a continuing lien on, and security interest in, the loans financed by the proceeds.

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Securitization transfers are also negatively impacted during recessionary periods, wherein purchasers may be more risk averse.

Further, future uncertainties around the demand for our personal loans and around the student loan refinance market in general should be considered when assessing our future liquidity and solvency prospects.

Further, future uncertainties around the demand for our personal loans, home loans and around the student loan refinance market in general, including as a result of worsening macroeconomic conditions, should be considered when assessing our future liquidity and solvency prospects.

Principal and interest payments on federally-held student loans were suspended most recently through August 2022, which in turn has continued to lower the propensity for borrowers to refinance into SoFi student loans relative to pre-COVID levels.

To the extent that additional measures, such as student loan forgiveness or a further extension of the student loan payment moratorium, are implemented, it may negatively impact our future student loan origination volume.

In the future, our loan origination volume and our resulting loan balances, and any positive cash flows thereof, could be lower based on strategic decisions to tighten our credit standards.

To the extent that additional measures, such as student loan forgiveness or a further extension of the student loan payment moratorium, are implemented, it may continue to negatively impact our future student loan origination volume.

In the future, our loan origination volume and our resulting loan balances, and any positive cash flows thereof, could also be lower based on strategic decisions to tighten our credit standards.

See “Key Factors Affecting Operating Results—Student Loan Relief” .

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Shortly after we closed the Bank Merger, we allocated $750 million in capital to SoFi Bank.

Golden Pacific’s community bank business continues to operate as a division of SoFi Bank.

We are required to manage our capital position to maintain sufficient capital to satisfy these regulatory rules and support our business activities, including the requirement to maintain minimum regulatory capital ratios in accordance with the Basel Committee on Banking Supervision standardized approach for U.S.

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If the Federal Reserve finds that we are not “well-capitalized” or “well-managed”, we would be required to take remedial action to comply with all applicable capital and management requirements, which may contain additional limitations or conditions relating to our activities.

Additionally, the applicable federal regulatory authority is authorized to determine, under certain circumstances relating to the financial condition of a bank or bank holding company, that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof.

As of March 31, 2022, our regulatory capital ratios exceeded the thresholds required to be regarded as a well-capitalized institution, and meet all capital adequacy requirements to which we are subject.

There have been no events or conditions since March 31, 2022 that management believes would change our categorization.

Additionally, the applicable federal regulatory authority is authorized to determine, under

SoFi Technologies, Inc.

certain circumstances relating to the financial condition of a bank or bank holding company, that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof.

As of June 30, 2022, our regulatory capital ratios exceeded the thresholds required to be regarded as a well-capitalized institution, and meet all capital adequacy requirements to which we are subject.

There have been no events or conditions since June 30, 2022 that management believes would change the categorization.

See Note 18 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on our regulatory capital requirements.

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We believe we have adequate liquidity to meet these expected obligations.

Our long-term liquidity strategy includes growing our SoFi bank deposit base, maintaining adequate warehouse capacity (which we expect to decrease as a percentage of our total funding base over time), maintaining corporate debt and other sources of financing, as well as effectively managing the capital raised through debt and equity transactions.

Our long-term liquidity strategy includes continuing to grow our SoFi bank deposit base, maintaining adequate warehouse capacity (which we expect to decrease as a percentage of our total funding base over time), maintaining corporate debt and other sources of financing, as well as effectively managing the capital raised through debt and equity transactions.

Although our goal is to increase our cash flow from operations, there can be no assurance that our future operating plans will lead to improved operating cash flows.

We had unrestricted cash and cash equivalents of $1.3 billion as of March 31, 2022.

We had unrestricted cash and cash equivalents of $707.3 million as of June 30, 2022.

We believe our existing cash and cash equivalents balance, investments in AFS debt securities, SoFi Bank deposits, available capacity under our revolving credit facility, together with additional warehouses or other financing we expect to be able to obtain at reasonable terms, will be sufficient to cover net losses, meet our existing working capital and capital expenditure needs, as well as our planned growth for at least the next 12 months.

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We have relationships with whole loan buyers who we believe we will be able to continue to rely on to generate near-term liquidity.

Securitization markets can also generate additional liquidity, albeit to a lesser extent, as it involves accessing a much less liquid securitization residual investment market, and in certain cases we are required to maintain a minimum investment due to securitization risk retention rules.

Our borrowings as of March 31, 2022 primarily included our loan and risk retention warehouse facilities, asset-backed securitization debt, revolving credit facility and convertible notes.

Securitization markets can also generate additional liquidity, albeit to a lesser extent, as it involves accessing a much less liquid securitization residual investment market, could result in worse

SoFi Technologies, Inc.

execution as compared to whole loans sales, and in certain cases we are required to maintain a minimum investment due to securitization risk retention rules.

Our borrowings as of June 30, 2022 primarily included our loan and risk retention warehouse facilities, asset-backed securitization debt, revolving credit facility and convertible notes.

A detailed description of each of our borrowing arrangements is included in Note 9 to the Notes to Unaudited Condensed Consolidated Financial Statements.

The amount of financing actually advanced on each individual loan under our loan warehouse facilities, as determined by agreed-upon advance rates, may be less than the stated advance rate depending, in part, on changes in underlying loan characteristics of the loans securing the financings.

The amount of financing actually advanced on each individual loan under our loan warehouse facilities, as determined by agreed-upon advance rates, may be less than the stated advance rate depending, in part, on changes in underlying characteristics of the loans securing the financings.

Each of our loan warehouse facilities allows the lender providing the funds to evaluate the market value of the loans that are serving as collateral for the borrowings or advances being made.

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Therefore, redemption events and conversion events (to the extent we elect to cash settle) could require a material use of cash at the time of the event.

Additionally, the convertible notes may incur special interest in the event of default, or additional interest if the Company has not satisfied certain reporting conditions or the convertible notes are not otherwise freely tradable, as such term is

defined in the indenture.

SoFi Technologies, Inc.

If special interest or additional interest is incurred on the convertible notes, it could require an additional use of cash.

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The following table provides a summary of cash flow data during the periods indicated:

Three Months Ended March 31,

Six Months Ended June 30,

($ in thousands) 2022 2021

Net cash provided by (used in) operating activities $ (1,956,723) $ 82,608

Net cash provided by investing activities 49,879 180,947

Net cash provided by (used in) investing activities (4,918) 239,339

Net cash provided by (used in) financing activities 2,192,231 (876,576)

Cash Flows from Operating Activities

For the three months ended March 31, 2022, net cash used in operating activities of $1.0 billion stemmed from a net loss of $110.4 million and an unfavorable change in our operating assets net of operating liabilities of $1.0 billion, partially offset by a positive adjustment for non-cash items of $137.6 million.

For the six months ended June 30, 2022, net cash used in operating activities of $2.0 billion stemmed from a net loss of $206.2 million and an unfavorable change in our operating assets net of operating liabilities of $2.0 billion, partially offset by a positive adjustment for non-cash items of $277.3 million.

The change in operating assets net of operating liabilities was primarily a result of our loan origination and sales activities.

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These cash uses were largely offset by principal payments on loans of $1.2 billion and proceeds from loan sales of $3.6 billion.

For the three months ended March 31, 2021, net cash provided by operating activities of $340.1 million stemmed from a net loss of $177.6 million that was positively adjusted for non-cash items of $164.8 million, and a favorable change in our operating assets net of operating liabilities of $352.8 million.

For the six months ended June 30, 2021, net cash provided by operating activities of $82.6 million stemmed from a net loss of $342.9 million that was positively adjusted for non-cash items of $317.6 million, and a favorable change in our operating assets net of operating liabilities of $107.9 million.

The change in operating assets net of operating liabilities was primarily a result of our loan origination and sales activities.

We originated loans of $5.6 billion during the period and also purchased loans of $149.9 million.

These cash uses were offset by principal payments from members of $0.5 billion and proceeds from loan sales of $2.4 billion.

These cash uses were offset by principal payments on loans of $1.1 billion and proceeds from loan sales of $4.8 billion.

Cash Flows from Investing Activities

For the three months ended March 31, 2022, net cash provided by investing activities of $49.9 million was primarily attributable to proceeds of $42.8 million from our securitization investments, the aggregate net cash acquired from the Technisys Merger and Bank Merger of $73.3 million, and proceeds of $29.6 million from sales, maturities and paydowns of our investments in AFS debt securities.

These sources were offset by cash uses of $33.9 million related to loan activities, $25.1 million for purchases of property, equipment and software, which primarily included internally-developed software and purchased software, and cash uses of $36.8 million related to purchases of AFS debt securities.

For the three months ended March 31, 2021, net cash provided by investing activities of $180.9 million was primarily attributable to proceeds of $107.5 million from the call on our equity method investment in Apex and proceeds of $64.2 million from our securitization investments.

Additionally, Apex repaid its outstanding principal balance of $16.7 million.

Lastly, we used $7.4 million for purchases of property, equipment and software.

For the six months ended June 30, 2022, net cash used in investing activities of $4.9 million was primarily attributable to proceeds of $76.0 million from our securitization investments, the aggregate net cash acquired from the Technisys Merger and Bank Merger of $58.5 million, and proceeds of $37.4 million from sales, maturities and paydowns of our investments in AFS debt securities.

These sources were more than offset by net cash uses of $81.9 million related to loan activities, primarily driven by credit card loans, $50.0 million for purchases of property, equipment and software, which primarily included internally-developed software and purchased software, and cash uses of $45.0 million related to purchases of AFS debt securities.

For the six months ended June 30, 2021, net cash provided by investing activities of $239.3 million was primarily attributable to proceeds from Apex of $107.5 million from the call on our equity method investment and $16.7 million from repayment of the outstanding principal balance on its related party notes, as well as proceeds of $141.9 million from our securitization investments.

These sources were partially offset by a cash use of $26.8 million for purchases of property, equipment and software, which primarily included internally-developed software, purchased software, and furniture and fixtures.

SoFi Technologies, Inc.

Cash Flows from Financing Activities

For the three months ended March 31, 2022, net cash provided by financing activities was $1.9 billion.

We received $3.6 billion of proceeds from debt financing activities related to our lending activities, all of which was related to our warehouse activities.

These debt proceeds were partially offset by $2.6 billion of debt repayments, of which $2.5 billion were related to our warehouse facilities.

Our payments of debt issuance costs were in the normal course of business and reflective of our recurring debt warehouse facility activity, which involves securing new warehouse facilities and extending existing

warehouse facilities.

Additionally, we had net cash sources from our SoFi Bank deposits of $961.8 million.

Finally, we paid taxes of $3.6 million related to RSU vesting.

For the three months ended March 31, 2021, net cash used in financing activities was $1.1 billion.

For the six months ended June 30, 2022, net cash provided by financing activities of $2.2 billion was primarily attributable to net cash sources from our SoFi Bank deposits of $2.5 billion.

Additionally, our debt repayments related to our lending activities of $5.0 billion, of which $4.8 billion were related to our warehouse facilities, were largely offset by proceeds from debt financing activities of $4.7 billion.

Finally, we paid redeemable preferred stock dividends of $20.0 million and taxes related to RSU vesting of $5.8 million.

For the six months ended June 30, 2021, net cash used in financing activities was $0.9 billion.

We received proceeds from the Business Combination and PIPE Investment of $2.0 billion, and paid costs directly related to the Business Combination and PIPE Investment of $27.0 million.

We received $3.8 billion of proceeds from debt financing activities related to our lending activities.

These debt proceeds were more than offset by $6.4 billion of debt repayments, of which $5.7 billion were related to our warehouse facilities.

Our payments of debt issuance costs were in the normal course of business and reflective of our recurring debt warehouse facility activity.

We also paid taxes of $26.0 million related to RSU vesting.

Finally, we paid $132.9 million to repurchase redeemable preferred stock and $0.5 million to repurchase common stock during the period.

We also paid taxes related to RSU vesting of $28.6 million, as well as redeemable preferred stock dividends of $20.0 million.

Finally, we paid $282.9 million to repurchase redeemable common and preferred stock, of which $150.0 million related to redeemable common stock repurchased in conjunction with the Business Combination, and $0.5 million to repurchase common stock during the period.

Other Arrangements

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For a more detailed discussion of nonconsolidated VIEs, including activity in relation to the establishment of trusts, the aggregate outstanding values of variable interests and the deconsolidation of VIEs, see Note 5 to the Notes to Unaudited Condensed Consolidated Financial Statements.

As a component of our loan sale agreements, we make certain representations to third parties that purchased our previously held loans, which includes FNMA repurchase requirements, general representations and warranties and credit-related repurchase requirements, all of which are standard in nature and, therefore, do not constrain our ability to recognize a sale for accounting purposes.

We establish a loan repurchase liability, which is based on historical experience and any current developments which would make it probable that we would buy back loans previously sold to third parties at the historical sales price.

Our credit-related repurchase requirements are assessed for credit losses.

During the three months ended March 31, 2022, we made repurchases of $2.6 million associated with these arrangements.

As of March 31, 2022 and December 31, 2021, we accrued liabilities of $5.2 million and $7.4 million, respectively, related to our estimated repurchase obligation.

During the three and six months ended June 30, 2022, we made repurchases of $5.8 million and $8.4 million, respectively, associated with these arrangements.

As of June 30, 2022 and December 31, 2021, we accrued liabilities of $4.8 million and $7.4 million, respectively, related to our estimated repurchase obligation.

SoFi Technologies, Inc.

Financial Condition Summary

March 31, 2022 compared to December 31, 2021

Changes in the composition and balance of our assets and liabilities as of March 31, 2022 compared to December 31, 2021 were principally attributed to the following:

June 30, 2022 compared to December 31, 2021

Changes in the composition and balance of our assets and liabilities as of June 30, 2022 compared to December 31, 2021 were principally attributed to the following:

• an increase of $230.5 million in cash and cash equivalents and restricted cash and restricted cash equivalents.

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• an increase in total loans of $2.1 billion, which was primarily related to personal and student loans;

• an increase in intangible assets of $196.5 million, of which $240.0 million was related to our two acquisitions during the first quarter of 2022, with a partially offsetting decrease attributable to amortization expense;

• an increase in goodwill of $726.8 million related to our two acquisitions during the first quarter of 2022.

See Note 2 to the Notes to Unaudited Condensed Consolidated Financial Statements for additional information;

• a decrease in securitization investments of $86.0 million, of which $76.0 million was related to cash receipts.

There were no securitization investments made during the first quarter of 2022;

• an increase in intangible assets of $220.9 million, of which $240.0 million was related to our two acquisitions during the current quarter, with a partially offsetting decrease attributable to amortization expense;

• an increase in goodwill of $717.2 million related to our two acquisitions during the current quarter;

• an increase in deposits of $1.2 billion, which was attributable to our launch of SoFi bank during the current quarter;

There were no securitization investments made during the first half of 2022;

• an increase in deposits of $2.7 billion, which was attributable to our launch of SoFi Bank during the first quarter of 2022;

• an increase in deferred tax liabilities of $55.0 million, which was primarily attributable to the separately identifiable intangible assets acquired in the Technisys Merger;

• an increase of $1.0 billion in gross warehouse facility debt to support our originations during the current quarter, which reflected the net impact of $3.6 billion of cash borrowings and $2.5 billion of cash repayments;

• a decrease of $75.5 million in gross warehouse facility debt to support our originations during the current period, which reflected the net impact of $4.8 billion of cash repayments and $4.7 billion of cash borrowings;

• a decrease of $153.7 million in liabilities related to gross securitization debt, which was settled with proceeds from related collateral repayments.

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We evaluate our critical accounting policies and estimates on an ongoing basis and update them as necessary based on changes in market conditions or factors specific to us.

There have been no material changes in our significant accounting policies or critical accounting estimates during the first quarter of 2022.

For a complete discussion of our significant accounting policies and critical accounting estimates, see Note 1 to the Notes to Consolidated Financial Statements for a summary of our significant accounting policies and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates ” in our Annual Report on Form 10-K for the year ended December 31, 2021.

There have been no material changes in our significant accounting policies or critical accounting estimates during the first half of 2022.

For a complete discussion of our significant accounting policies and critical accounting estimates, refer to our Annual Report on Form 10-K for the year ended December 31, 2021 within Note 1 to the Notes to Consolidated Financial Statements for a summary of our significant accounting policies and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates ”.

Recent Accounting Standards Issued, But Not Yet Adopted

See Note 1 to the Notes to Unaudited Condensed Consolidated Financial Statements and Note 1 to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021.

See Note 1 to the Notes to Unaudited Condensed Consolidated Financial Statements herein and Note 1 to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis