SoFi Technologies Inc.

05/07/2026 | Press release | Distributed by Public on 05/07/2026 04:16

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. You should read this discussion and analysis in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q, as well as SoFi Technologies' audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K filed with the SEC on February 17, 2026 and subsequent filings with the SEC. Certain amounts may not foot or tie to other disclosures due to rounding. Certain information in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q contains forward-looking statements that involve numerous risks and uncertainties, including, but not limited to, those described under the sections entitled "Cautionary Statement Regarding Forward-Looking Statements" and Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K. We assume no obligation to update any of these forward-looking statements. Actual results may differ materially from those contained in any forward-looking statements.
Page
Business Overview
53
Business Highlights
58
Non-GAAP Financial Measures
60
Key Business Metrics
66
Key Factors Affecting Operating Results
70
Consolidated Results of Operations
71
Net Interest Income
72
Noninterest Income
73
Provision for Credit Losses
74
Noninterest Expense
76
Income Taxes
77
Summary Results by Segment
78
Lending Segment
79
Technology Platform Segment
84
Financial Services Segment
85
Corporate/Other Segment
86
Consolidated Balance Sheet Analysis
88
Liquidity and Capital Resources
89
Critical Accounting Estimates
93
Recent Accounting Standards Issued, But Not Yet Adopted
94
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Business Overview
We are a mission driven company designed to help our members achieve financial independence in order to realize their ambitions. To us, financial independence does not mean being wealthy, but rather represents the ability of our members to have the financial means to achieve their personal objectives at each stage of life, such as owning a home, having a family, or having a career of their choice - more simply stated, to have enough money to do what they want. We were founded in 2011 and have developed a suite of financial products that offers the speed, selection, content and convenience that only an integrated digital platform can provide. In order for us to achieve our mission, we have to help people get their money right, which means providing them with the ability to borrow better, save better, spend better, invest better and protect better. 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.
In order to help achieve our mission, we are a member-centric, everything app for digital financial services that, through our Lending and Financial Services products, allows members to borrow, save, spend, invest and protect their money. We refer to our customers as "members" and "clients" as defined under "Key Business Metrics". We offer personal loans, student loans, home loans and related servicing and offer a variety of financial services products, such as SoFi Money, SoFi Credit Card, SoFi Crypto, SoFi Invest and SoFi Relay, that provide more daily interactions with our members, as well as products and capabilities, such as SoFi At Work, that are designed to appeal to enterprises. Lending related services that we offer through our Loan Platform Business help a broader range of borrowers to find lending solutions, through our relationships with members as well as third-party enterprise partners. Our Technology Platform supports innovation for a broad range of enterprises, with offerings that give clients the ability to create, launch and run financial products. In addition, SoFi Plus is our premium financial membership that provides benefits that span our offerings and brings together all we have to offer.
We have built a personalized area within our digital native application, which we refer to as the member home experience. The member home experience 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 could do that day in their financial life. Through the member home experience, there are significant opportunities to build frequent engagement and, to date, the member home experience has been an important driver of new product adoption. The member home experience is an important part of our strategy and our ability to use data as a competitive advantage.
To complement these products and services, we believe in establishing partnerships with other enterprises to leverage our existing capabilities to reach a broader market and in building vertically-integrated technology platforms designed to manage and deliver our suite of products and technology solutions to our members and clients in a low-cost and differentiated manner.
Our three reportable segments and their primary product and service offerings as of March 31, 2026 were as follows:
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(1)Loan Platform Business includes activity related to (i) certain loans which we originate on behalf of third-party partners, (ii) referred loans which are originated by a third-party partner to which we provide pre-qualified borrower referrals, (iii) certain loans associated with our Lantern financial services marketplace platform, and (iv) servicing rights assumed from third parties. Refer to "Our Reportable Segments-Financial Services Segment" and "Our Reportable Segments-Lending Segment" for more information.
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Members
We have created an innovative financial services platform designed to offer best-in-class products to meet the broad objectives of our members and the lifecycle of their financial needs. Our platform offers our members (as defined under "Key Business Metrics") a suite of financial products and services, enabling them to borrow, save, spend, invest and protect their finances across one integrated platform, as well as personal financial management tools and benefits to complement our products. Our aim is to create a best-in-class, integrated financial services platform that will generate a virtuous cycle whereby positive member experiences will lead to new product adoption by existing members and enhanced profitability for each additional product by lowering overall member acquisition costs and increasing the lifetime value of our members. We refer to this virtuous cycle as our "Financial Services Productivity Loop".
We believe that developing a comprehensive, long-term relationship with our members and gaining their trust is central to our success as a financial services platform. We have a digital-first financial services platform that we believe can support all of our members' financial services needs throughout their lifetime. We believe this will lead to a competitive advantage over other financial institutions that provide a disjointed and non-seamless product experience, a lack of digital customer acquisition, subpar mobile web products instead of digital native apps and incomplete product offerings to meet a customer's holistic financial needs.
Enterprises
In addition to benefiting our members, our products and capabilities are also designed to appeal to enterprises and have become interconnected with the SoFi platform, such as financial services institutions that subscribe to our enterprise services, third-party partners in our Loan Platform Business, and clients who utilize our technology platform services. While our enterprises are not considered members, they are important contributors to the growth of the SoFi platform, and also have their own constituents who might benefit from our products in the future.
SoFi Bank
SoFi Technologies is a bank holding company, and SoFi Bank is a nationally chartered association.
As a bank holding company, we offer checking and savings accounts, credit cards and crypto trading through SoFi Bank. We are originating all new loans within SoFi Bank, and we intend to continue to explore other products for SoFi Bank over time, including stablecoin issuance and tokenized deposits. The key current and expected financial benefits to us of operating a national bank include: (i) lowering our cost to fund loans, as we can utilize deposits held at SoFi Bank to fund loans, which generally have a lower borrowing cost of funds than warehouse and securitization financing, (ii) increasing our flexibility to hold loans on our balance sheet for longer periods, thereby enabling us to earn interest on these loans for a longer period, (iii) supporting origination volume growth by providing an alternative financing option, while also maintaining our warehouse capacity, and (iv) through deposits, providing us with a channel to obtain meaningful member data that can allow us to better serve our members' financial needs. See Part II, Item 1A. "Risk Factors" for a discussion of certain potential risks related to being a bank holding company.
International Operations
While we primarily operate in the United States, we also operate internationally in Latin America, Canada and Switzerland largely through our Technology Platform segment, as well as in Hong Kong through SoFi Holdings (Hong Kong) Limited (an investment business).
Our Reportable Segments
We conduct our business through three reportable segments: Lending, Technology Platform and Financial Services. Below is a discussion of our segments and their primary products and non-product offerings.
Lending Segment
We offer personal loans, student loans, home loans and related servicing to help our members with a variety of financial needs. We believe that our market opportunity within each of these lending channels is significant. 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. Furthermore, our platform supports the full transaction lifecycle, including credit application, underwriting, approval, funding and servicing. Through data derived at loan origination and throughout the servicing process, SoFi has life-of-loan performance data on each loan in our ecosystem that we originate and on which we retain servicing, which provides a meaningful data asset. Net interest income, which we define as the difference between the
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earned interest income and interest expense to finance loans, is a key component of the profitability of our Lending segment, along with fee-based revenue, which includes loan origination fees.
Personal Loans. We originate personal loans to help our members with a variety of financial needs, such as debt consolidation, home improvement projects, family planning, travel and weddings, to name a few. We offer fixed rate loans with flexible repayment terms. We generally offer loan sizes of $5,000 to $100,000, subject to legal and/or licensing requirements, with terms generally ranging from 2 to 7 years. We regularly update the annual percentage rates offered on our personal loans.
Student Loans. We operate in the student loan refinance space, with a focus on prime and super-prime school loans, as well as the "in-school" lending space, which allows members to borrow funds while they attend school. We offer flexible loan sizes, repayment options and competitive rates. Within student loan refinancing, we generally offer loan sizes of $5,000 or higher, subject to legal and/or licensing requirements, with terms generally ranging from 5 to 20 years. Within in-school loans, we generally offer loan sizes of $1,000 or higher, subject to legal and/or licensing requirements, with terms generally ranging from 5 to 20 years. We regularly update the annual percentage rates offered on our fixed and variable-rate student loans.
Home Loans. We originate agency, non-agency, and certain government loan products (including FHA and VA loans) to members who are purchasing a home, refinancing an existing mortgage, or obtaining a home equity loan. Across our home loan products, we provide competitive rates, flexible down payment options as low as 3% (or 0% for VA loans), a close-on-time guarantee, and educational tools and calculators to support members throughout the borrowing process. When a member's credit profile or other risk attributes do not align with our underwriting guidelines or risk appetite, we may broker home equity loans and home equity lines of credit to a third-party wholesale lender to help meet the member's financing needs. We originate loans in accordance with applicable loan limits and program requirements, including Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) conforming limits and FHA and VA program limits, with FHA and VA loan amounts capped at $1,500,000. We also offer jumbo loans with loan amounts up to $3,000,000 and fixed-rate home equity loans up to $750,000. Our fixed-rate home loans generally have terms of 10, 15, 20, 25 or 30 years. We also offer adjustable-rate mortgage products for conforming and jumbo loans, with an initial fixed-rate period of 5, 7 or 10 years, followed by rate adjustments every six months for the remaining term. For FHA and VA loans, we offer adjustable-rate products with a fixed rate for five years followed by rate adjustments every year for the remainder of the term. We regularly update the annual percentage rates offered on our home loans.
Lending Model
We originate loans through our lending business, and have the option of pursuing a gain-on-sale origination model, whereby we seek to recognize a gain from these loans and sell them into either our whole loan or securitization channels, or holding loans on our balance sheet when advantageous. This enables us to maximize our return and balance our risk by earning interest on these loans for a longer period and to be selective in our sales arrangements. We sell our whole loans primarily to large financial institutions. In securitization transactions that do not qualify for sale accounting, the related assets remain on our balance sheet and cash proceeds received are reported as liabilities, with related interest expense recognized over the life of the related borrowing. In securitization transactions that qualify for sale accounting, we typically have insignificant continuing involvement as an investor. In the case of both whole loan sales and securitizations, and with the exception of certain of our home loans, we also continue to retain servicing rights to our originated loans following transfer.
We also originate and sell loans in support of our Loan Platform Business, through which we provide lending related services to third-party partners. We maintain the same lending relationship with borrowers across all loans that we originate, inclusive of those originated on behalf of a third-party partner and as such, reflect these products within our Lending segment total products. This enables borrowers to gain access to all the benefits of becoming a SoFi member, and enhances our opportunities to sell additional products from across our platform to these members. See "Financial Services Segment" for more information.
We directly service all of the personal loans that we originate through our lending business, as well as provide servicing in support of our Loan Platform Business on loans originated on behalf of third-party partners and servicing rights assumed from third parties. We act as master servicer for, and rely on sub-servicers to directly service, all of our student loans and GSE conforming home loans. We view servicing as an integral component of the Lending segment, as we believe our servicing function is an important asset because of the connection to the member it affords us throughout the life of the loan thereby enhancing the effectiveness of our Financial Services Productivity Loop by increasing member touchpoints and driving new product adoption by existing members.
We rely upon deposits, warehouse financing and our own capital to enable us to continue to expand our origination capabilities. Our ability to utilize deposits held at SoFi Bank to fund our loans has lowered our overall cost of asset-backed
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financing relative to alternative sources of funding. We expect to benefit from the continued mix towards deposit funding through operating SoFi Bank.
Underwriting Process
We have developed an extensive underwriting process across each lending product that is focused on willingness to pay (measured by credit attributes and risk scores), ability to pay (measured through free cash flow), and stability (measured by credit experience). A key element of our underwriting process is the ability to facilitate risk-based interest rates that we believe are appropriate for each loan using proprietary risk models. We believe the outcome of this process helps us determine a more data-driven, risk-adjusted interest rate that we can offer our members. Further, our data and monitoring tools enable us to implement risk mitigation strategies quickly and efficiently, including underwriting standard adjustments to adapt our operations to changing environments and expectations.
Our personal loan and student loan underwriting models are typically based on credit reports, standard industry credit scores, custom credit assessment models, and debt capacity analysis, as indicated by borrower free cash flow. Home loans originated by SoFi that are agency-conforming loans are subject to credit, debt-to-income, and collateral eligibility established by the GSEs. Government loans, such as VA and Federal Housing Administration loans, are subject to the underwriting requirements established by the appropriate government agency. In addition to these requirements, agency-conforming and government loans are subject to credit eligibility criteria established by SoFi as well as individual investor requirements. Other non-agency loans originated by us, such as jumbo loans and home equity loans, are subject to credit eligibility established by SoFi and/or investor credit criteria, which typically includes established credit history requirements, credit score requirements, income verification, as well as maximum limits on debt-to-income and caps on loan-to-value.
We also leverage our data to provide existing members a streamlined application process through automation. Across our loan products, existing members generally experience a higher approval rate than new members, subject to the existing member being in good standing on their existing products.
Technology Platform Segment
We provide technology platform services through a diversified suite of offerings which include an event and authorization platform accessed via application programming interfaces, a cloud-native digital and core banking platform and services related to both platforms. Our customers and partners include financial institutions, government entities and non-financial institutions primarily in North America and Latin America. We earn technology product and solutions fee-based revenue through the use of the platforms, either as a stand ready obligation, or from overall license and maintenance fee service arrangements related to those respective platforms. We also offer additional add-on technology solutions to support our clients and drive engagement, such as a conversational AI engine for customers of banks and financial institutions, and a real-time payment risk platform which employs AI and machine learning technology to enhance payment fraud mitigation strategies for financial customers. We continue to leverage investments made to integrate our services and offerings to position the Technology Platform segment for diversified durable growth.
Financial Services Segment
We offer a suite of financial services solutions, the most significant of which are discussed below. Our financial services products (as defined under "Key Business Metrics") by nature provide more daily interactions with our members and are differentiated from our lending products, which inherently provide less consistent touchpoints with our members. We also offer financial services solutions which are designed to appeal to enterprises, including our At Work product and lending related services offered through our Loan Platform Business. Certain products, such as our complementary SoFi Relay product, do not provide direct sources of revenue but foster additional touch points with our members. We believe that our suite of financial services offerings provide many ways for our members to actively engage in getting their money right as well as attractive enterprise solutions. This enables us to deliver positive experiences through various channels, building trust and durable relationships which can ultimately demonstrate the effectiveness of our Financial Services Productivity Loop virtuous cycle.
SoFi Money
Checking and savings accounts provide a digital banking experience which allows members to spend, save and earn interest and rewards in flexible ways. We believe SoFi Checking and Savings accounts held at SoFi Bank are attractive to our members and prospective members due to our differentiated offerings, including competitive interest rates, access to expanded FDIC insurance coverage of up to $3 million through our Insured Deposit Program and the convenience and benefits of being part of a cohesive, simplified financial ecosystem within our mobile platform. We also offer global remittance services which leverage blockchain technology to provide fast, seamless, low cost and safe international payments.
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SoFi Invest
A mobile-first investment platform offering members access to trading and advisory solutions, such as active investing and robo-advisory. Our interactive investing experience fosters engagement by allowing members to view and monitor other investors' activity on the platform. Our active investing service enables members to buy and sell stocks and ETFs, as well as alternative investment funds, mutual funds and money market funds, to engage in options trading, to participate in IPOs, to buy and sell fractional shares, to engage in margin investing and to access a retirement investment account. Our robo-advisory service offers a variety of managed portfolios comprising ETFs and mutual funds that are built and managed by our investment committee with support from an asset management partner. Additionally, we provide introductory brokerage services to our members and have invested heavily to create an appealing mobile investing experience.
SoFi Crypto
During the fourth quarter of 2025, we launched SoFi Crypto, a digital asset trading platform within our Financial Services segment. This offering is structured differently from our prior legacy offering and is designed to operate within the Company's current regulatory framework.
SoFi Crypto enables members to buy, sell and hold digital assets through SoFi Bank. The platform is integrated with our existing banking products, allowing members to fund digital asset transactions directly from their SoFi Money checking and savings accounts without transferring funds to external platforms, providing a consolidated experience within a single application. The platform leverages our existing technology infrastructure, compliance framework, and security controls applicable to our bank and brokerage operations. We also provide educational content and in-app disclosures designed to improve accessibility and help members understand digital assets and associated risks, particularly for members who are new to cryptocurrency transactions.
In December 2025, we also launched SoFiUSD, our proprietary stablecoin issued on a public, permissionless blockchain, which represented an additional step in expanding our digital asset capabilities. SoFiUSD is intended to support faster, lower-cost and more efficient movement of funds across payment ecosystems. During the first quarter of 2026, we began minting SoFiUSD and entered into a partnership with Mastercard to support future settlement capabilities across its global payments network. These initiatives are intended to enhance interoperability between digital assets and fiat currencies and, over time, facilitate more continuous transaction settlement capabilities.
Loan Platform Business
We provide lending related services to a broader set of members through our platform of enterprise partners. Revenue from the Loan Platform Business is fee-based. This includes (i) activity through which third-party partners leverage our end-to-end origination and servicing platform to acquire loans within their credit specifications on a fee per loan basis, (ii) referred loans originated by a third-party partner to which we provide pre-qualified borrower referrals, and (iii) activity related to certain loans associated with our Lantern financial services marketplace platform. In addition, we offer loan servicing support through our lending business. See "Lending Segment" for more information.
Additional financial services solutions offered within our platform include:
•SoFi Credit Card: We offer credit card products designed to help eligible members spend better, with benefits and features that fit our members' everyday spending, borrowing and lifestyle needs, including flexible options to redeem cash back rewards through statement credit or other SoFi products.
•SoFi Relay: A personal finance management product that allows members to track all of their financial accounts in one place and gain meaningful insights into their financial health and habits to help them improve their financial standing, such as credit score monitoring and spending behaviors. SoFi Relay also provides us with unified intelligence about our members that offers information about what SoFi products and features may help our members best achieve their financial goals, allowing us to further personalize the SoFi experience for our members.
•Lantern: A financial services marketplace platform developed to help small businesses and individuals who do not qualify for SoFi products, through a simplified search and application experience that connects these users to alternative financial solutions from a curated network of other providers.
•SoFi Protect: A service through which we partner with providers who offer insurance products to help our members protect their assets, including providers across auto, life, homeowners, renters, and cyber insurance products and estate planning.
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•SoFi Travel: A service through which we partner with a provider to offer an easy travel search and booking experience that can be managed directly through the SoFi app or website, alongside expanded member benefits including member prices on certain bookings and additional cash back rewards on purchases made with SoFi Credit Card.
•SoFi At Work: A service through which we partner with other enterprises looking for a seamless way to provide financial benefits to their employees, such as student loan payments made on their employees' behalf.
We believe that the content and features we provide within our mobile application can spur more financial education, which leads to more ways for our members to actively engage in getting their money right and utilize SoFi products.
We earn revenues, both net interest income and fee-based, in connection with our Financial Services segment primarily in the ways listed below. See Note 16. Business Segment Information and Note 2. Revenue to the Notes to Condensed Consolidated Financial Statements for additional information on the FTP framework and Financial Services revenue from contracts with customers. Certain products, such as our complementary product SoFi Relay, do not provide direct sources of revenue. Revenue is driven primarily by variability in product utilization by members, as well as volume of transactions related to arrangements that we enter into with enterprise partners as outlined below.
•Net interest income: Net interest income is a key component of the profitability of our Financial Services segment as it relates primarily to our SoFi Money and credit card products. Net interest income on SoFi Money is based on interest income determined using our FTP framework, net of interest expense based on the interest rate offered to our members on their deposits. Net interest income on credit card is based on the contractual interest included in credit card agreements, net of interest expense as determined using the FTP framework.
•Loan Platform Business, other fees: Through our Loan Platform Business, we originate loans on behalf of third-party partners, for which we receive a specified fee upon sale. The fee includes components for a fixed price per loan and recognition of servicing assets. These fees accounted for 59% of our total Financial Services noninterest income for the three months ended March 31, 2026.
•Referral fees: Through strategic partnerships, we earn a specified referral fee in connection with referral activity we facilitate through our platform, inclusive of referral fees generated through our Loan Platform Business for providing pre-qualified borrower referrals (referred loans) to a third-party partner who separately contracts with a loan originator. Referral fees are paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. Our referral fee is calculated as either a fixed price per successful referral, a percentage of the funded loan, or a percentage of the transaction volume between the enterprise partners and referred consumers. Total referral fees, inclusive of referral fees generated through our Loan Platform Business, accounted for 11% of our total Financial Services noninterest income for the three months ended March 31, 2026.
•Interchange fees: We earn interchange fees from our SoFi-branded debit cards and credit cards. These fees are remitted by merchants and represent a percentage of the underlying transaction value processed through a payment network. We engage a card association and enter into contracts that establish the shared economics of SoFi-branded transaction cards. Interchange fees accounted for 18% of our total Financial Services noninterest income for the three months ended March 31, 2026.
•Brokerage fees: We earn brokerage fees primarily from our share lending and payment for order flow arrangements related to our SoFi Invest product, in which 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. Brokerage fees accounted for 8% of our total Financial Services noninterest income for the three months ended March 31, 2026.
Business Highlights
SoFi is a financial services company that leverages technology to serve people and enterprises. SoFi's continuous investments in innovation and brand building led to the strongest financial performance in the history of the company, fueling significant member and product growth and paving the way for future growth. We reported a number of key financial achievements in the three months ended March 31, 2026, including total net revenue of $1.1 billion, representing an increase of 43% over total net revenue in the same period of 2025. For the first quarter of 2026, total fee-based revenue reached $386.8 million, compared to $315.4 million in the same period of 2025, a year-over-year increase of 23%. This was driven by strong performance from our Loan Platform Business, as well as origination fee revenue, interchange fee revenue and brokerage fee revenue. Diluted EPS for the three months ended March 31, 2026 was $0.12 compared to diluted EPS of $0.06 in the same period of 2025.
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The following tables set forth selected financial data:
Three Months Ended
March 31, 		2026 vs 2025
($ in thousands, except per share amounts) 2026 2025 $ Change % Change
Net interest income $ 692,988 $ 498,726 $ 194,262 39 %
Total noninterest income 407,380 273,033 134,347 49 %
Total net revenue 1,100,368 771,759 328,609 43 %
Provision for credit losses 8,895 5,678 3,217 57 %
Total noninterest expense 891,921 686,299 205,622 30 %
Net income $ 166,731 $ 71,116 $ 95,615 134 %
Earnings per share - diluted $ 0.12 $ 0.06 $ 0.06 100 %
Net interest margin 5.94 % 6.01 %
($ in thousands) March 31, 2026 December 31, 2025 $ Change % Change
Loans held for sale $ 25,454,796 $ 22,862,749 $ 2,592,047 11 %
Loans held for investment, at fair value 15,336,820 13,657,578 1,679,242 12 %
Loans held for investment, at amortized cost 1,381,174 1,516,736 (135,562) (9) %
Total deposits 40,242,697 37,505,395 2,737,302 7 %
Total risk-based capital ratio, SoFi Technologies 21.3 % 22.9 %
Total risk-based capital ratio, SoFi Bank 15.4 % 16.6 %
Continued growth in both total members and products, along with improving operating efficiency, reflects the benefits of our broad product suite and Financial Services Productivity Loop strategy. Total members reached over 14.7 million as of March 31, 2026, a 35% increase from the prior year period, while total products reached nearly 22.2 million as of March 31, 2026, a 39% year-over-year increase.
Three Months Ended
March 31, 		2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Lending
Total net revenue $ 642,420 $ 413,373 229,047 55 %
Contribution profit 382,386 238,935 143,451 60 %
Technology Platform
Total net revenue 75,086 103,427 (28,341) (27) %
Contribution profit 11,999 30,913 (18,914) (61) %
Financial Services
Total net revenue 428,543 303,119 125,424 41 %
Contribution profit 195,584 148,332 47,252 32 %
Lending segment contribution profit increased 60% to $382.4 million for the three months ended March 31, 2026 at a segment contribution margin of 60% as compared to the respective 2025 period, which had a segment contribution margin of 58%. Lending segment performance was driven by net interest income primarily driven by growth in average loan balances.
Origination volume for our Lending products increased 68% for the three months ended March 31, 2026 as a result of continued strong member demand for personal loans, student loans and home loans as well as strong demand from capital markets partners. Overall, we sold, or transferred through our Loan Platform Business, more than $3.8 billion in total of personal loans and home loans during the three months ended March 31, 2026. We believe that the demand for the Loan Platform Business continues to be strong across a diverse set of partners.
Technology Platform segment contribution profit of $12.0 million for the three months ended March 31, 2026 decreased 61% over the respective 2025 period, and total net revenue of $75.1 million for the three months ended March 31, 2026 decreased 27% over the respective 2025 period. Technology Platform total enabled client accounts was 133 million, down from 158 million in the prior year period. These results reflected the exit of a large client that fully transitioned off our platform prior to December 31, 2025.
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Within our Financial Services segment, contribution profit of $195.6 million for the three months ended March 31, 2026, increased 32% compared to the respective 2025 period. Total net revenue of $428.5 million for the three months ended March 31, 2026 increased 41% over the respective 2025 period. In the first quarter of 2026, we generated $138.3 million in loan platform fees, driven by $3.0 billion of personal loans originated on behalf of third parties, as well as referrals. Additionally, our Loan Platform Business generated $2.6 million in servicing cash flow which is recorded in our Lending segment. In total, our Loan Platform Business added $140.8 million to our consolidated adjusted net revenue across these two segments. We also continued to see healthy growth in interchange fee revenue in the first quarter of 2026, up 54% year-over-year, driven by increased spend across Money and Credit Card as well as increased brokerage fee revenue, which was up 116% year-over-year. These results support our ongoing efforts to increase fee-based revenue.
We achieved continued strong growth in member deposits and strong deposit contribution from direct deposit members, ending the period with $40.2 billion of total deposits as of March 31, 2026, allowing us to maintain access to diversified sources of funding. Total deposit funds grew nearly $2.7 billion during the quarter. We continue to provide our members with access to expanded FDIC insurance coverage through a network of participating banks in our Insured Deposit Program, further enhancing the benefits of our offering to our members.
The strength of our results underscores our belief that our suite of differentiated products and services provides the foundation for a diversified business that can endure through market cycles as well as in the face of exogenous factors. For instance, our access to multiple channels of funding, including deposit and loan warehouse funding, provides increased optionality in sourcing liquidity through different environments and periods of capital markets volatility, as well as increases our flexibility to capture additional net interest margin and optimize returns. This typically provides more stable earnings in any macroeconomic environment, but is particularly important during times of macroeconomic volatility.
Non-GAAP Financial Measures
This Quarterly Report on Form 10-Q presents information about certain non-GAAP financial measures provided as supplements to the results provided in accordance with GAAP. Our management and Board of Directors use these non-GAAP measures, to evaluate our operating performance, formulate business plans, help better assess our overall liquidity position, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that these non-GAAP measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures. Other companies may not use these non-GAAP measures or may use similar measures that are defined in a different manner. Therefore, our non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Adjusted Net Revenue
Adjusted net revenue is a non-GAAP measure. Adjusted net revenue is defined as total net revenue, adjusted to exclude the fair value changes in servicing rights and residual interests classified as debt due to valuation inputs and assumptions changes, which relate only to our Lending segment, as well as gains and losses on extinguishment of debt. We adjust total net revenue to exclude these items, as they are non-cash charges that are not realized during the period or not indicative of our core operating performance, and therefore positive or negative changes do not impact the cash available to fund our operations. Management believes this measure is useful because it enables management and investors to assess our underlying operating performance and cash available to fund our operations. In addition, management uses this measure to better decide on the proper expenses to authorize for each of our operating segments, to ultimately help achieve target contribution profit margins.
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Total Net Revenue and Adjusted Net Revenue
In Thousands
The following table reconciles adjusted net revenue to total net revenue, the most directly comparable GAAP measure:
Three Months Ended March 31,
($ in thousands) 2026 2025
Total net revenue (GAAP)
$ 1,100,368 $ 771,759
Servicing rights - change in valuation inputs or assumptions(1)
(13,163) (1,074)
Residual interests classified as debt - change in valuation inputs or assumptions(2)
27 35
Adjusted net revenue (non-GAAP)
$ 1,087,232 $ 770,720
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(1)Reflects changes in fair value inputs and assumptions on servicing rights, including conditional prepayment, default rates and discount rates. These assumptions are highly sensitive to market interest rate changes and are not indicative of our performance or results of operations. Moreover, these non-cash charges are unrealized during the period and, therefore, have no impact on our cash flows from operations.
(2)Reflects changes in fair value inputs and assumptions on residual interests classified as debt, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated securitization VIEs by purchasing residual interests, we receive proceeds at the time of the closing of the securitization and, thereafter, pass along contractual cash flows to the residual interest owner. These residual debt obligations are measured at fair value on a recurring basis, but they have no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business.
The following table reconciles adjusted net revenue to total net revenue, the most directly comparable GAAP measure, for the quarterly periods presented:
Quarter Ended
($ in thousands) March 31,
2026 		December 31,
2025 		September 30,
2025 		June 30,
2025 		March 31,
2025
Total net revenue (GAAP) $ 1,100,368 $ 1,025,051 $ 961,600 $ 854,944 $ 771,759
Servicing rights - change in valuation inputs or assumptions(1)
(13,163) (12,224) (11,989) 3,274 (1,074)
Residual interests classified as debt - change in valuation inputs or assumptions(2)
27 8 15 12 35
Adjusted net revenue (non-GAAP) $ 1,087,232 $ 1,012,835 $ 949,626 $ 858,230 $ 770,720
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(1)See footnote (1) to the table above.
(2)See footnote (2) to the table above.
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The following table reconciles adjusted net revenue for the Lending segment to total net revenue for the Lending segment, the most directly comparable GAAP measure:
Three Months Ended March 31,
($ in thousands) 2026 2025
Total net revenue - Lending (GAAP)
$ 642,420 $ 413,373
Servicing rights - change in valuation inputs or assumptions(1)
(13,163) (1,074)
Residual interests classified as debt - change in valuation inputs or assumptions(2)
27 35
Adjusted net revenue - Lending (non-GAAP) $ 629,284 $ 412,334
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(1)See footnote (1) to the table above.
(2)See footnote (2) to the table above.
Adjusted Contribution Margin and Incremental Adjusted Contribution Margin - Lending
Adjusted contribution margin and incremental adjusted contribution margin are non-GAAP measures and relate only to our Lending segment. Adjusted contribution margin is defined as segment contribution profit for the Lending segment, divided by adjusted net revenue for the Lending segment, a non-GAAP measure. Incremental adjusted contribution margin is defined as the change in segment contribution profit for our Lending segment, divided by change in adjusted net revenue for the Lending segment. See 'Adjusted Net Revenue' above for a reconciliation of Lending segment adjusted net revenue.
Management believes adjusted contribution margin metrics are useful because they enable management and investors to assess the underlying operating performance of our Lending segment, by removing the impact of changes in volume over periods to present a comparable view of segment contribution profit, which is a measure of the direct profitability of each of our reportable segments, as a percentage of segment adjusted net revenue for the Lending segment during each period.
The following table presents a reconciliation of adjusted contribution margin and incremental adjusted contribution margin for our reportable Lending segment:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change
Lending
Contribution profit - Lending (GAAP) $ 382,386 $ 238,935 $ 143,451
Net revenue - Lending (GAAP) 642,420 413,373 229,047
Contribution margin - Lending (GAAP)(1)
60 % 58 %
Incremental contribution margin - Lending (GAAP)(1)
63 %
Adjusted net revenue - Lending (non-GAAP)(2)
$ 629,284 $ 412,334 $ 216,950
Adjusted contribution margin - Lending (non-GAAP) 61 % 58 %
Incremental adjusted contribution margin - Lending (non-GAAP) 66 %
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(1)Contribution margin is defined for each of our reportable segments as contribution profit (loss), divided by net revenue. Incremental contribution margin for each of our reportable segments is defined as the change in segment contribution profit (loss), divided by change in net revenue.
(2)Refer to 'Adjusted Net Revenue' above for reconciliation of this non-GAAP measure.
Adjusted EBITDA, Adjusted EBITDA Margin and Incremental Adjusted EBITDA Margin
Adjusted EBITDA, adjusted EBITDA margin and incremental adjusted EBITDA margin are non-GAAP measures. Adjusted EBITDA is defined as net income, adjusted to exclude, as applicable: (i) corporate borrowing-based interest expense (our adjusted EBITDA measure is not adjusted for warehouse or securitization-based interest expense, nor deposit interest expense and finance lease liability interest expense, as these are direct operating expenses), (ii) income tax expense (benefit), (iii) depreciation and amortization associated with property, equipment and software and intangible assets, (iv) share-based expense (inclusive of equity-based payments to non-employees), (v) foreign currency impacts related to operations in highly inflationary countries, (vi) fair value changes in each of servicing rights and residual interests classified as debt due to valuation assumptions, (vii) restructuring charges, (viii) transaction-related expenses, and (ix) other charges, as appropriate, that are not expected to recur and are not indicative of our core operating performance.
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Adjusted EBITDA margin is computed as adjusted EBITDA divided by adjusted net revenue. Incremental adjusted EBITDA margin is defined as the change in adjusted EBITDA, divided by change in adjusted net revenue. See 'Adjusted Net Revenue' above for a reconciliation of this non-GAAP measure.
Management believes adjusted EBITDA, adjusted EBITDA margin and incremental adjusted EBITDA margin are useful measures for period-over-period comparisons of our business. These measures enable management and investors to assess our core operating performance or results of operations by removing the effects of certain non-cash items and charges, as well as the impact of changes in volume over periods as applicable. In addition, management uses these measures to help evaluate cash flows generated from operations and the extent of additional capital, if any, required to invest in strategic initiatives.
Net Income and Adjusted EBITDA
In Thousands
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The following table reconciles adjusted EBITDA to net income, the most directly comparable GAAP measure, and presents the computations of adjusted EBITDA margin and incremental adjusted EBITDA margin:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change
Net income (GAAP) $ 166,731 $ 71,116 $ 95,615
Non-GAAP adjustments:
Interest expense - corporate borrowings(1)
10,651 11,428 (777)
Income tax expense (benefit)(2)
32,821 8,666 24,155
Depreciation and amortization
67,578 55,283 12,295
Share-based expense 72,012 63,756 8,256
Foreign currency impact of highly inflationary subsidiaries(3)
411 276 135
Servicing rights - change in valuation inputs or assumptions(4)
(13,163) (1,074) (12,089)
Residual interests classified as debt - change in valuation inputs or assumptions(5)
27 35 (8)
Restructuring charges(6)
1,960 851 1,109
Transaction-related expense(7)
873 - 873
Total adjustments 173,170 139,221 33,949
Adjusted EBITDA (non-GAAP)
$ 339,901 $ 210,337 $ 129,564
Total net revenue (GAAP) $ 1,100,368 $ 771,759 $ 328,609
Net income margin (GAAP) 15 % 9 %
Incremental net income margin (GAAP) 29 %
Adjusted net revenue (non-GAAP)(8)
$ 1,087,232 $ 770,720 $ 316,512
Adjusted EBITDA margin (non-GAAP) 31 % 27 %
Incremental adjusted EBITDA margin (non-GAAP) 41 %
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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 includes interest on our revolving credit facility, as well as interest expense and the amortization of debt discount and debt issuance costs on our convertible notes.
(2)The income tax expense recognized in both periods was primarily attributable to the Company's profitability, partially offset by discrete tax benefits for stock compensation recorded in each quarter. See Note 13. Income Taxes to the Notes to Condensed Consolidated Financial Statements for additional information.
(3)Foreign currency charges reflect the impacts of highly inflationary accounting for our operations in Argentina, which are related to our Technology Platform segment.
(4)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, these positive and negative changes in fair value attributable to assumption changes are adjusted out of net income to provide management and financial users with better visibility into the earnings available to finance our operations.
(5)Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, which has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business. As such, these positive and negative non-cash changes in fair value attributable to assumption changes are adjusted out of net income to provide management and financial users with better visibility into the earnings available to finance our operations.
(6)Restructuring charges in the 2026 period included employee-related wages, benefits and severance associated with a small reduction in headcount in our Technology Platform segment, which do not reflect expected future operating expenses and are not indicative of our core operating performance. Restructuring charges in 2025 relate to legal entity restructuring.
(7)Transaction-related expenses in the 2026 period reflect costs associated with strategic evaluations and related activities.
(8)Refer to 'Adjusted Net Revenue' above for reconciliation of this non-GAAP measure.
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The following table reconciles adjusted EBITDA to net income, the most directly comparable GAAP measure, for the quarterly periods presented:
Quarter Ended
($ in thousands) March 31,
2026 		December 31,
2025 		September 30,
2025 		June 30,
2025 		March 31,
2025
Net income (GAAP) $ 166,731 $ 173,549 $ 139,392 $ 97,263 $ 71,116
Non-GAAP adjustments:
Interest expense - corporate borrowings 10,651 11,196 11,595 11,504 11,428
Income tax expense 32,821 11,783 9,159 14,929 8,666
Depreciation and amortization 67,578 62,880 59,245 56,743 55,283
Share-based expense 72,012 68,577 66,469 63,256 63,756
Foreign currency impact of highly inflationary subsidiaries 411 1,808 2,954 2,066 276
Servicing rights - change in valuation inputs or assumptions (13,163) (12,224) (11,989) 3,274 (1,074)
Residual interests classified as debt - change in valuation inputs or assumptions 27 8 15 12 35
Restructuring charges 1,960 20 41 36 851
Transaction-related expense 873 - - - -
Total adjustments 173,170 144,048 137,489 151,820 139,221
Adjusted EBITDA (non-GAAP) $ 339,901 $ 317,597 $ 276,881 $ 249,083 $ 210,337
Total net revenue (GAAP) $ 1,100,368 $ 1,025,051 $ 961,600 $ 854,944 $ 771,759
Net income margin (GAAP) 15 % 17 % 14 % 11 % 9 %
Adjusted net revenue (non-GAAP) $ 1,087,232 $ 1,012,835 $ 949,626 $ 858,230 $ 770,720
Adjusted EBITDA margin (non-GAAP) 31 % 31 % 29 % 29 % 27 %
Adjusted Net Income, Adjusted Net Income Margin, Incremental Adjusted Net Income Margin and Adjusted EPS
Adjusted net income, adjusted net income margin, incremental adjusted net income margin and adjusted diluted earnings per share are non-GAAP measures. Adjusted net income is defined as net income, adjusted to exclude, as applicable, goodwill impairment expense and certain income tax benefits that are not expected to recur and are not indicative of our core operating performance.
Adjusted diluted earnings per share ("adjusted EPS") is a non-GAAP financial measure that adjusts GAAP diluted earnings per share. Adjusted EPS is computed by dividing net income attributable to common stockholders, adjusted to exclude, as applicable, goodwill impairment expense and certain income tax benefits that are not expected to recur and are not indicative of our core operating performance, by the diluted weighted average number of shares of common stock outstanding during the period, excluding the dilutive impact of the 2026 and 2029 convertible notes under the if-converted method for which the 2026 and 2029 capped call transactions, respectively, would deliver cash or shares to offset dilution.
Adjusted net income margin is computed as adjusted net income divided by adjusted net revenue. Incremental adjusted net income margin is defined as the change in adjusted net income, divided by change in adjusted net revenue. See 'Adjusted Net Revenue' above for a reconciliation of this non-GAAP measure.
Management believes adjusted net income, adjusted net income margin, incremental adjusted net income margin and adjusted EPS are useful because they enable management and investors to assess our core operating performance or results of operations, by removing the effects of certain non-cash items and charges to present a comparable view for period over period comparisons of our business.
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The following table: (i) reconciles adjusted net income to net income, the most directly comparable GAAP measure, (ii) reconciles adjusted EPS to diluted earnings per share, the most directly comparable GAAP measure, and (iii) presents the computations of adjusted net income margin and incremental adjusted net income margin:
Three Months Ended
March 31,
2026 vs 2025
($ and shares in thousands, except per share amounts)(1)
2026 2025 $ Change
Net income (GAAP) $ 166,731 $ 71,116 $ 95,615
Adjusted net income (non-GAAP) $ 166,731 $ 71,116 $ 95,615
Numerator:
Net income attributable to common stockholders - diluted (GAAP)(2)
$ 167,075 $ 71,455
Adjusted net income attributable to common stockholders - diluted (non-GAAP)
$ 167,075 $ 71,455
Denominator:
Weighted average common stock outstanding - diluted (GAAP) 1,378,011 1,185,466
Non-GAAP adjustments:
Dilutive impact of convertible notes(3)
(22,032) (31,412)
Adjusted weighted average common stock outstanding - diluted (non-GAAP) 1,355,979 1,154,054
Earnings per share - diluted (GAAP)(2)
$ 0.12 $ 0.06
Impact of adjustments per share - -
Adjusted earnings per share - diluted (non-GAAP)(2)
$ 0.12 $ 0.06
Net income margin (GAAP) 15 % 9 %
Adjusted net revenue (non-GAAP)(4)
$ 1,087,232 $ 770,720
Adjusted net income margin (non-GAAP) 15 % 9 %
Incremental adjusted net income margin (non-GAAP) 30 %
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(1)Certain amounts may not recalculate exactly using the rounded amounts provided. Earnings per share is calculated based on unrounded numbers.
(2)Diluted earnings per share and diluted net income attributable to common stockholders exclude gain on extinguishment of debt, net of tax, as well as interest expense incurred, net of tax, associated with convertible note activity during the period as evaluated under the if-converted method.
(3)This non-GAAP adjustment excludes the dilutive impact of the 2026 and 2029 convertible notes, to the extent that the 2026 and 2029 capped call transactions, respectively, would deliver cash or shares to offset dilution.
(4)Refer to 'Adjusted Net Revenue' above for reconciliation of this non-GAAP measure.
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, 2026 March 31, 2025 Variance % Change
Members 14,706,040 10,915,811 3,790,229 35 %
Total Products 22,159,146 15,915,425 6,243,721 39 %
Total Products - Lending segment 2,831,352 2,129,833 701,519 33 %
Total Products - Financial Services segment 19,327,794 13,785,592 5,542,202 40 %
Total Accounts - Technology Platform segment 132,874,105 158,432,347 (25,558,242) (16) %
See "Summary Results by Segment" for additional metrics we review at the segment level.
Members
We refer to our customers as "members". We define a member as someone who has a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring service. Our members have access to our CFPs, our member events, our content, educational material, news, and our tools and calculators, which are provided at no cost to the member. Additionally, our
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mobile application and website have a member home experience 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.
Once someone becomes a member, they are always considered a member unless they are removed in accordance with our terms of service, in which case, we adjust our total number of members. This could occur for a variety of reasons-including fraud or pursuant to certain legal processes-and, as our terms of service evolve together with our business practices, product offerings and applicable regulations, our grounds for removing members from our total member count could change. The determination that a member should be removed in accordance with our terms of service is subject to an evaluation process, following the completion, and based on the results, of which, relevant members and their associated products are removed from our total member count in the period in which such evaluation process concludes. However, depending on the length of the evaluation process, that removal may not take place in the same period in which the member was added to our member count or the same period in which the circumstances leading to their removal occurred. For this reason, our total member count may not yet reflect adjustments that may be made once ongoing evaluation processes, if any, conclude.
We view members as an indication not only of the size and a measurement of growth of our business, but also as a measure of the significant value of the data we have collected over time. The data we collect from our members helps us to, among other things: (i) assess loan life performance data on each loan in our ecosystem, which can inform risk-based interest rates that we can offer our members, (ii) understand our members' spending behavior to identify and suggest other products we offer that may align with the members' financial needs, and (iii) enhance our opportunities to sell additional products to our members, as our members represent a vital source of marketing opportunities. When we provide additional products to members, it helps improve our unit economics per member, as we save on marketing costs that we would otherwise incur to attract new members. It also increases the lifetime value of an individual member. This in turn enhances our Financial Services Productivity Loop.
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.
Since our inception through March 31, 2026, we have served approximately 14.7 million members who have used approximately 22.2 million products on the SoFi platform.
Members
In Thousands
Total Products
Total products refers to the aggregate number of lending and financial services products that our members have selected on our platform since our inception through the reporting date, whether or not the members are still registered for such products. Total products is a primary indicator of the size and reach of our Lending and Financial Services segments. Management relies on total products metrics to understand the effectiveness of our member acquisition efforts and to gauge the propensity for members to use more than one product.
In our Lending segment, total products refers to the number of personal loans, student loans and home loans that have been originated through our platform through the reporting date, inclusive of loans which we originate as part of our Loan Platform Business, whether or not such loans have been paid off. If a member has multiple loan products of the same loan
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product type, such as two personal loans, that is counted as a single product. However, if a member has multiple loan products across loan product types, such as one personal loan and one home loan, that is counted as two products. The account of a co-borrower or co-signer is not considered a separate lending product.
In our Financial Services segment, total products refers to the number of SoFi Money accounts (inclusive of checking and savings accounts held at SoFi Bank and cash management accounts), SoFi Invest accounts, SoFi Credit Card accounts (including accounts with a zero dollar balance at the reporting date), referred loans (which are originated by a third-party partner to which we provide pre-qualified borrower referrals), SoFi At Work accounts, SoFi Relay accounts (with either credit score monitoring enabled or external linked accounts), and SoFi Crypto accounts that have been opened through our platform through the reporting date. Checking and savings accounts are considered one account within our total products metric. Our SoFi Invest service is composed of four products: IRA self-directed accounts, taxable self-directed accounts, IRA robo-advisory accounts, and taxable robo-advisory accounts. Our members can select any one or combination of the SoFi Invest products. If a member has multiple SoFi Invest accounts of the same products, such as one IRA self-directed account and one IRA robo-advisory account (or one tax-advantaged brokerage account and one taxable brokerage account), those are considered separate products. The account of a joint- or co-account holder is considered a separate financial services product. In the event a member is removed in accordance with our terms of service, as discussed under "Members" above, the member's associated products are also removed.
Product 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 immediately or 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. Further, product growth may not directly correlate with expense growth as a result of the effects of the Financial Services Productivity Loop.
See " Consolidated Results of Operations" and "Summary Results by Segment" for discussion and analysis of operating results.
Products
In Thousands
Total lending products were composed of the following:
Lending Products March 31, 2026 March 31, 2025 Variance % Change
Personal loans(1)
2,100,366 1,507,344 593,022 39 %
Student loans 672,407 583,914 88,493 15 %
Home loans 58,579 38,575 20,004 52 %
Total lending products 2,831,352 2,129,833 701,519 33 %
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(1)Includes loans which we originate as part of our Loan Platform Business.
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Total financial services products were composed of the following:
Financial Services Products March 31, 2026 March 31, 2025 Variance % Change
Money(1)
7,319,872 5,477,472 1,842,400 34 %
Invest(2)
3,672,884 2,684,658 988,226 37 %
Credit Card 436,184 306,106 130,078 42 %
Referred loans(3)
162,485 102,986 59,499 58 %
Crypto(4)
239,509 - 239,509 n/m
At Work 176,142 119,886 56,256 47 %
Relay 7,320,718 5,094,484 2,226,234 44 %
Total financial services products 19,327,794 13,785,592 5,542,202 40 %
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(1)Includes checking and savings accounts held at SoFi Bank, and cash management accounts.
(2)Beginning in the first quarter of 2026, we updated our SoFi Invest product metric to reflect four products. Prior to this, our SoFi Invest service was composed of two products, self-directed accounts and robo-advisory accounts. Self-directed accounts were previously referred to as active investing accounts. The impact to prior periods was determined to be immaterial, and prior periods were not recast.
(3)Limited to loans wherein we provide third party fulfillment services as part of our Loan Platform Business.
(4)During the fourth quarter of 2025, we returned to crypto investing with the launch of SoFi Crypto.
Technology Platform Total Accounts
In our Technology Platform segment, total accounts refers to the number of open accounts at Galileo as of the reporting date. We include intercompany 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 16. Business Segment Information to the Notes to Condensed Consolidated Financial Statements, which includes intercompany revenue. Intercompany revenue is eliminated in consolidation. 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 other products and solutions for which the revenue model is not primarily dependent upon being a fully integrated, stand-ready service.
Technology Platform Accounts
In Millions
March 31, 2026 March 31, 2025 Variance % Change
Total accounts(1)
132,874,105 158,432,347 (25,558,242) (16) %
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(1)Includes the impact from a large client which fully transitioned off the platform prior to December 31, 2025.
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Key Factors Affecting Operating Results
Our future operating results and cash flows are dependent upon a number of opportunities, challenges and other factors, including our loan origination volume, financial services products and member activity on our platform, growth in technology platform clients, competition and industry trends, general economic conditions and our ability to optimize our national bank charter. The key factors affecting our operating results are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, with notable updates provided herein.
Industry Trends and General Economic Conditions
The Federal Reserve adjusts monetary policy in response to evolving macroeconomic conditions, including inflation, labor market dynamics, and broader economic indicators. The timing and extent of policy changes remain uncertain and may be influenced by economic data and Federal Reserve leadership considerations. Persistent inflation may reduce consumer purchasing power and real wages, adversely affecting the credit profile of our members and demand for our lending and investment products. Elevated or rising interest rates, including in response to inflation, have adversely impacted and may continue to adversely impact demand for refinancing products. Additionally, rapid increases in interest rates or deterioration in macroeconomic conditions could negatively affect economic growth, consumer financial health, and overall market conditions.
Our results of operations have historically demonstrated relative resilience during economic downturns; however, future performance remains dependent on the strength of the overall economy and key drivers such as unemployment, inflation, asset prices, and consumer spending. Changes in economic conditions influence disposable income, which in turn affects consumer spending, saving, borrowing, and investing behaviors. Interest rates, monetary policy, market volatility, consumer confidence, and expectations regarding inflation or deflation may further impact these behaviors. The liquidity and condition of capital markets may also affect benchmark interest rates and credit spreads, influencing consumer demand and financial activity.
Global geopolitical conditions, including conflicts in the Middle East and other regions, may contribute to volatility in energy markets, including oil prices, and broader global economic instability. Such developments may exacerbate inflationary pressures, disrupt supply chains, and increase market volatility, which could adversely affect economic growth and consumer financial conditions.
We have continued to experience strong demand for our deposit products, driven in part by competitive interest rates and access to expanded FDIC insurance coverage through our Insured Deposit Program. Our credit trends continued to be strong in the first quarter of 2026 after seeing delinquencies peak over two years ago in the first quarter of 2024. Annualized charge-off rates decreased year-over-year across several portfolios, reflecting improvements in overall credit quality. These trends, together with the macroeconomic and geopolitical factors described above, may impact demand for our products, our cost structure, and our liquidity, results of operations, and financial condition.
Fair Value of Loans
We measure our personal loans, student loans and home loans at fair value. Our fair value adjustments on loans impact our consolidated results of operations and include adjustments related to loans originated during the period, loans held at the balance sheet date, as well as gains (losses) on loans sold or repurchased during the period. Fair value adjustments made in each reporting period are impacted by factors such as, among others, interest rates, weighted average coupon, credit spreads, actual and estimated losses, prepayment speeds, duration and previous loan sale execution on similar loans. In determining our fair value assumptions, we incorporate recent data impacting the capital markets, as well as factors specific to us. Changes in these factors, either positive or negative, can have a material impact on our results of operations.
The following table summarizes the significant inputs to the fair value model for personal and student loans:
Personal Loans Student Loans
March 31,
2026 		December 31,
2025 		March 31,
2026 		December 31,
2025
Weighted average coupon rate(1)
12.96 % 13.11 % 5.91 % 5.87 %
Weighted average annual default rate 4.57 % 4.46 % 0.69 % 0.68 %
Weighted average conditional prepayment rate 25.55 % 26.87 % 11.15 % 11.21 %
Weighted average discount rate 4.61 % 4.46 % 4.05 % 3.89 %
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(1)Represents the average coupon rate on loans held on balance sheet, weighted by unpaid principal balance outstanding at the balance sheet date.
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As of the first quarter of 2026 relative to the fourth quarter of 2025, we observed the following trends:
•Personal loan marks were down from the prior quarter, driven by an increase in the weighted average discount rate which was due to a higher benchmark rate, as well as a modest decline in weighted average coupon rate and a modest increase in the weighted average annual default rate assumption. These changes were partially offset by a modest decrease in the weighted average prepayment rate.
•The personal loan annualized charge-off rate increased to 3.03% from 2.80% in the prior quarter, including the impact of asset sales, new originations and delinquency sales in the quarter. This was primarily a function of maintaining consistent delinquent loan sales as the balance sheet has grown.
•Student loan marks were down from the prior quarter, driven by an increase in the weighted average discount rate due to a higher benchmark rate, and was partially offset by a modest decrease in the weighted average prepayment rate. The weighted average coupon rate and weighted average default rate assumptions remained relatively consistent with the fourth quarter.
•The student loan annualized charge-off rate decreased to 65 basis points from 76 basis points in the prior quarter, driven by seasonality and the impact from a student loan repurchase that concluded during the fourth quarter.
The combination of these and other factors, including in period originations, resulted in fair value losses and gains recognized on our personal and student loans portfolios, respectively, during the first quarter of 2026.
Student Lending
Changes in demand and loan volume for our student loan refinancing product and our in-school student loans will likely be affected by a variety of factors affecting students, including the overall interest rate environment, employment market, school tuition and admissions, executive actions by the U.S. presidential administration related to federal student loans, and how competitive our student loan refinancing products are compared to our competitors and other macroeconomic factors.
Changes in law, regulations or governmental policies related to federal or private student loans could materially impact demand for our student loan products and our business in ways that are difficult to predict. For example, in the past, the government has provided relief measures for federal student loan borrowers, including, among others, a federal student loan payment moratorium and debt forgiveness measures. The manner in which federal loans require repayment and federal loan servicers implement such policies can be expected to affect demand for SoFi student loan refinancing. Additionally, in July 2025, the One Big Beautiful Bill Act (Pub. L. No. 119-21) ("OBBB") was signed into law, which included provisions to eliminate federal Grad PLUS loans, impose lower borrowing limits and restrictions on Parent PLUS loans, starting in July 2026, and establish new repayment assistance plans. We expect these changes could lead to changes in demand for SoFi's student loan products. All such outcomes are highly uncertain and depend on additional factors not specified here.
Consolidated Results of Operations
The following table sets forth selected consolidated statements of income data:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Net interest income $ 692,988 $ 498,726 $ 194,262 39 %
Total noninterest income 407,380 273,033 134,347 49 %
Total net revenue 1,100,368 771,759 328,609 43 %
Provision for credit losses 8,895 5,678 3,217 57 %
Total noninterest expense 891,921 686,299 205,622 30 %
Income before income taxes 199,552 79,782 119,770 150 %
Income tax expense (32,821) (8,666) (24,155) 279 %
Net income $ 166,731 $ 71,116 $ 95,615 134 %
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Net Interest Income
The table below presents average balance and interest information for each major category of interest-earning assets and interest-bearing liabilities, along with net interest income and net interest margin. The table also presents period-over period changes in net interest income and the extent to which the variances are attributable to changes in the volume of our interest-earning assets and interest-bearing liabilities or changes in the interest rates related to these assets and liabilities.
Average Balances and Net Interest Earnings Analysis
Three Months Ended March 31, 2026 Three Months Ended March 31, 2025
Change due to(1)
($ in thousands)
Average Balances(2)
Interest Income/Expense Average Yield/Rate
Average Balances(2)
Interest Income/Expense Average Yield/Rate Volume Rate Total
Assets
Interest-earning assets:
Interest-bearing deposits with banks $ 4,497,684 $ 37,749 3.40 % $ 2,738,657 $ 25,987 3.85 % $ 14,762 $ (3,000) $ 11,762
Investment securities 2,722,554 32,740 4.88 2,031,588 26,344 5.26 8,310 (1,914) 6,396
Loans 40,101,179 930,507 9.41 28,877,073 711,481 9.99 260,445 (41,419) 219,026
Total interest-earning assets 47,321,417 1,000,996 8.58 33,647,318 763,812 9.21 283,517 (46,333) 237,184
Total noninterest-earning assets 4,649,975 3,822,660
Total assets $ 51,971,392 $ 37,469,978
Liabilities and Equity
Interest-bearing liabilities:
Demand deposits $ 3,412,369 $ 8,395 1.00 % $ 1,988,318 $ 2,371 0.48 % $ 3,504 $ 2,520 $ 6,024
Savings deposits 33,344,978 268,303 3.26 23,694,819 216,671 3.71 77,648 (26,016) 51,632
Time deposits 1,008,195 10,531 4.24 502,562 6,357 5.13 5,281 (1,107) 4,174
Total interest-bearing deposits 37,765,542 287,229 3.08 26,185,699 225,399 3.49 86,433 (24,603) 61,830
Warehouse facilities 726,929 8,298 4.63 1,988,643 26,390 5.38 (14,403) (3,689) (18,092)
Securitization debt 53,065 390 2.98 73,781 581 3.20 (151) (40) (191)
Other debt(3)
1,761,584 12,091 2.78 1,755,695 12,716 2.94 40 (665) (625)
Total debt 2,541,578 20,779 3.32 3,818,119 39,687 4.22 (14,514) (4,394) (18,908)
Residual interests classified as debt 511 - - 579 - - - - -
Total interest-bearing liabilities 40,307,631 308,008 3.10 30,004,397 265,086 3.58 71,919 (28,997) 42,922
Total noninterest-bearing liabilities 1,220,573 851,676
Total liabilities 41,528,204 30,856,073
Total equity 10,443,188 6,613,905
Total liabilities and equity $ 51,971,392 $ 37,469,978
Net interest income(4)
$ 692,988 $ 498,726 $ 211,598 $ (17,336) $ 194,262
Net interest margin(5)
5.94 % 6.01 %
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(1)We calculate the changes in interest income and interest expense separately for each item. Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates.
(2)Average balances were calculated on daily carrying balances.
(3)Interest expense on other debt primarily includes debt issuance and discount expense, as well as interest expense on the revolving credit facility and convertible senior notes.
(4)Net interest income is calculated as the excess of total interest income on interest-earning assets over total interest expense on interest-bearing liabilities.
(5)Net interest margin is calculated as net interest income divided by total average interest-earning assets.
For the three months ended March 31, 2026 compared to the three months ended March 31, 2025, net interest income increased by $194.3 million, or 39%, and net interest margin decreased by 7 bps. Average interest-earning assets increased by 41%, and average yields decreased by 63 bps, while average interest-bearing liabilities increased by 34% and the average cost of interest-bearing liabilities decreased by 48 bps.
The $194.3 million increase in net interest income was primarily driven by (i) higher interest income on loans of $219.0 million, which was primarily a function of an increase in origination volume, (ii) lower interest expense on warehouse facilities of $18.1 million as we continued to rely less on our warehouse facilities for our funding needs and were fully paid down by the end of the quarter, (iii) higher interest income from interest-bearing deposits with banks of $11.8 million driven by an increase in average deposits and the proceeds from the common stock offerings that we completed in the third and fourth quarters of 2025, and (iv) higher interest income from investment securities of $6.4 million primarily attributable to an increase in average balances.
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These items were partially offset by higher interest expense on interest-bearing deposits of $61.8 million resulting from the net impact of higher interest-bearing deposit balances partially offset by lower rates on savings and time deposits.
Noninterest Income
The following table presents the components of our total noninterest income:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Loan origination, sales, securitizations and servicing $ 142,209 $ 52,805 $ 89,404 169 %
Technology products and solutions 49,351 86,437 (37,086) (43) %
Loan platform fees 138,255 92,750 45,505 49 %
Net crypto transaction revenue 852 - 852 n/m
Other 76,713 41,041 35,672 87 %
Total noninterest income $ 407,380 $ 273,033 $ 134,347 49 %
Total noninterest income increased by $134.3 million, or 49%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Loan Origination, Sales, Securitizations and Servicing
The increase in loan origination, sales, securitizations and servicing of $89.4 million, or 169%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by (i) gains during the 2026 period compared losses in the 2025 period on interest rate swap positions primarily related to personal loans and student loans ($282.7 million), (ii) higher origination fees ($36.3 million) primarily driven by increased originations compared to the year ago quarter , and (iii) net fair value gains on home loans ($11.6 million) primarily impacted by increased home loan origination volume.
These increases were partially offset by (i) net fair value losses on personal loans and lower fair value gains on student loans driven by weighted average mark decreases ($223.6 million), (ii) net higher loan write-offs ($33.1 million) driven by balance sheet growth and (iii) unfavorable changes in home loan and student loan commitments ($13.2 million).
Technology Products and Solutions
Technology products and solutions decreased by $37.1 million, or 43%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. These results reflected the exit of a large client who fully transitioned off our platform in 2025.
Loan Platform Fees and Related Servicing
Loan platform fees and related servicing increased by $44.7 million, or 47%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This was driven by an increase of $1.4 billion of Loan Platform Business originations.
The following table presents the components of noninterest income associated with our Loan Platform Business:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Loan platform fees(1)
$ 138,255 $ 92,750 $ 45,505 49 %
Servicing(2)
2,557 3,346 (789) (24) %
Loan platform fees and servicing, total noninterest income $ 140,812 $ 96,096 $ 44,716 47 %
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(1)Recorded within noninterest income-loan platform fees in the condensed consolidated statements of operations and comprehensive income, and the Financial Services reportable segment.
(2)Recorded within noninterest income-loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income, and the Lending reportable segment. Amounts reflect revenue from our servicing agreements on loans which we did not originate, excluding the impacts of changes in fair value inputs and assumptions on related servicing rights as they were immaterial for all periods presented.
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Net crypto transaction revenue
Net crypto revenue was $0.9 million for the three months ended March 31, 2026, driven by the launch of SoFi Crypto in the fourth quarter of 2025.
Other
Other noninterest income increased by $35.7 million, or 87%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was driven by higher interchange income as a result increased spending volumes across SoFi Money and Credit Card and higher brokerage income.
Provision for Credit Losses
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Credit card $ 8,506 $ 5,819 $ 2,687 46 %
Commercial and consumer banking 389 (141) 530 n/m
Total $ 8,895 $ 5,678 $ 3,217 57 %
The provision for credit losses was $8.9 million for the three months ended March 31, 2026, reflecting net charge-offs of $7.9 million and an allowance increase of $1.0 million. Net charge-offs of $7.9 million decreased $0.1 million compared to the three months ended March 31, 2025, driven by the credit stabilization in our credit card portfolio as a result of improved underwriting standards and risk mitigation actions. The allowance increase of $1.0 million primarily reflected growth in the credit card portfolio balances, partially offset by continued improvement in credit quality of the portfolio.
The prior year provision for the three months ended March 31, 2025 was $5.7 million, reflecting net charge-offs of $8.0 million and an allowance release of $2.3 million.
Refer to "Analysis of Charge-offs" for a further discussion of the factors driving changes in net charge-offs and the allowance.
Analysis of Allowance for Credit Losses
Allowance for Credit Losses Ratios
The following table presents the ratio of allowance for credit losses to total loans outstanding that are measured at amortized cost:
($ in thousands) March 31, 2026 March 31, 2025
Allowance for credit losses to total loans outstanding
Allowance for credit losses $ 51,934 $ 44,369
Total loans held for investment, at amortized cost outstanding(1)
1,416,765 1,329,279
Ratio(2)
3.67 % 3.34 %
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(1)Total loans outstanding excludes accrued interest.
(2)The increase in the ratio was primarily attributable to a decrease of $90.1 million in secured loans.
We omitted the credit ratios associated with nonaccrual loans, as the balance of nonaccrual loans was immaterial.
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Allocation of Allowance for Credit Losses
The following table presents the allocation of the allowance for credit losses and the percentage of loans outstanding by category to total loans outstanding that are measured at amortized cost:
March 31, 2026 March 31, 2025
($ in thousands) Allowance for credit losses
Percent of loans to total loans(1)
Allowance for credit losses
Percent of loans to total loans(1)
Credit card $ 50,064 35 % $ 42,179 26 %
Commercial and consumer banking 1,870 13 % 2,190 11 %
Secured loans(2)
- 52 % - 63 %
Total $ 51,934 100 % $ 44,369 100 %
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(1)Loans outstanding balances used in the calculation exclude accrued interest.
(2)Secured loans are term loan arrangements secured by underlying loans (collateral) owned by the debtor. The underlying loans were previously originated by us and were subject to our underwriting process and risk models, prior to being sold to the debtor and in most instances these loans continue to be serviced by us. We evaluate the credit quality of our secured loan portfolio relative to the fair value of the underlying collateral, reassessing it quarterly based on relevant information, including funded loan rates and historical loss experience. An allowance for credit losses is required when there is an expected credit loss after considering the fair value of the collateral as well as any anticipated future changes in the underlying collateral. As of March 31, 2026, based on this evaluation we did not recognize an allowance for credit losses on our secured loans.
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Analysis of Charge-offs
The following tables present information regarding average loans outstanding, net charge-offs and the annualized ratio of net charge-offs to average loans outstanding:
Three Months Ended March 31, 2026 Three Months Ended March 31, 2025
($ in thousands)
Average Loans(1)
Net Charge-offs(2)(3)(4)
Ratio(4)(5)
Average Loans(1)
Net Charge-offs(2)(3)(4)
Ratio(4)(5)
Personal loans $ 22,886,367 $ 170,821 3.03 % $ 18,394,833 $ 150,074 3.31 %
Student loans 14,368,902 22,919 0.65 % 9,051,465 10,597 0.47 %
Home loans 1,399,917 - - % 226,734 - - %
Secured loans 805,795 - - % 757,030 - - %
Credit card 464,009 7,647 6.68 % 297,637 7,990 10.89 %
Commercial and consumer banking 176,189 248 0.57 % 149,374 3 0.01 %
Total loans $ 40,101,179 $ 201,635 2.04 % $ 28,877,073 $ 168,664 2.37 %
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(1)Average balances were calculated on daily carrying balances.
(2)Net charge-offs include both credit- and certain non-credit-related charge-offs. Non-credit related charge-offs, which primarily relate to alleged or potential fraud, occur occasionally in our business and are impacted by factors different from our credit related charge-offs. Non-credit related charge-offs were immaterial for all periods presented.
(3)Net charge-offs related to personal, student and home loans are generally recorded in noninterest income-loan origination, sales, securitizations and servicing as part of the respective loans total change in fair value. Net charge-offs related to credit card and commercial and consumer banking are considered as part of the allowance for credit losses and provision for credit losses.
(4)Excludes the impact of delinquent personal loan sales during the quarter. These loans were sold prior to charge-off during each respective quarter and otherwise would have been charged off as of the quarter-end consistent with our policy. See Note 3. Loans to the Notes to Condensed Consolidated Financial Statements for additional information.
(5)Net charge-off ratio is calculated as net charge-offs divided by average loans.
For the three months ended March 31, 2026, the total net charge-off ratio was 2.04%, a decrease of 33 bps compared with the three months ended March 31, 2025, and total net charge-offs were $201.6 million, an increase of $33.0 million over the comparable period. The decrease in the total net charge-off ratio was primarily due a lower credit card net charge-off ratio reflective of higher average credit card loan balance and normalization in delinquency rates (total credit card delinquency rate was 4.1%, up approximately 10 bps from the comparative period) as a result of improved underwriting standards and risk mitigation actions. Additionally, a lower personal loan charge-off ratio contributed to the decrease, reflecting higher average personal loan balances and steady delinquency rates compared to the year ago period (total personal loan delinquency rate was 47 bps, down approximately 1 bps from the comparative period). The total net charge-off ratio decrease was partially offset by an increase in the student loan net charge-off ratio primarily driven by the impact of repurchased seasoned loans during 2025 that had a higher charge-off rate, in line with our expectations. While the student loan charge-off ratio increased during the period, the delinquency rate was in line with the prior year period, reflecting overall stable credit quality of the portfolio.
The increase in total net charge-offs was $33.0 million, driven by higher personal loan net charge-offs of $20.7 million student loan net charge-offs of $12.3 million primarily reflecting an increase in average loans.
Noninterest Expense
The following table presents the components of our total noninterest expense:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Technology and product development $ 187,675 $ 156,206 $ 31,469 20 %
Sales and marketing 335,539 238,176 97,363 41 %
Cost of operations 171,123 135,520 35,603 26 %
General and administrative 197,584 156,397 41,187 26 %
Total noninterest expense $ 891,921 $ 686,299 $ 205,622 30 %
Total noninterest expense increased by $205.6 million, or 30%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, as described below.
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Technology and product development
Technology and product development expenses increased by $31.5 million, or 20%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily driven by higher employee compensation and benefits attributable to increases in headcount and salary to support our growth, and amortization of internally-developed software.
Sales and marketing
Sales and marketing expenses increased by $97.4 million, or 41%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was driven by: (i) increases in advertising and marketing expenditures, (ii) higher lead generation costs primarily related to our Financial Services and Lending segments as we continue to drive expansion of our products and offerings, and (iii) higher employee compensation and benefits attributable to increases in headcount to support our growth.
Cost of operations
Cost of operations expenses increased by $35.6 million, or 26%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was driven by higher employee compensation and benefits attributable to increases in headcount and salary to support our growth, and loan origination and servicing expenses.
General and administrative
General and administrative expenses increased by $41.2 million, or 26%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This increase was driven by higher employee compensation and benefits attributable to increases in headcount and salary to support our growth, tools and subscriptions costs reflective of continued investments in technology, as well as transaction-related expenses of $0.9 million in the first quarter of 2026.
Income Taxes
For the three months ended March 31, 2026 and 2025, we recorded income tax expense of $32.8 million and $8.7 million, respectively. The income tax expense recognized in both periods was primarily attributable to the Company's profitability, partially offset by discrete tax benefits for stock compensation recorded in each quarter. For the three months ended March 31, 2026, the Company's effective tax rate was lower than the U.S. federal statutory rate primarily due to excess tax benefits from stock compensation.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination of whether a valuation allowance is necessary, the Company considers all available positive and negative evidence supporting the allowance. During the three months ended March 31, 2026, we continue to maintain a valuation allowance in certain state and foreign jurisdictions where sufficient positive evidence does not exist to support the realizability of deferred tax assets. Management will continue to assess the need for a valuation allowance in future periods.
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Summary Results by Segment
Contribution profit is the primary measure of segment-level profit and loss that, along with our key business metrics, is used by management to evaluate our business, measure our performance, identify trends and make strategic decisions. Contribution profit is defined as total net revenue for each reportable segment less expenses directly attributable to the reportable segment, provision for credit losses 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 the sections entitled "Consolidated Results of Operations", "Summary Results by Segment" and "Non-GAAP Financial Measures" for discussion and analysis of these key financial measures.
The following table sets forth selected segment-level data:
Three Months Ended
March 31, 		2026 vs 2025
($ in thousands) 2026 2025 Change % Change
Lending
Total net revenue $ 642,420 $ 413,373 $ 229,047 55 %
Directly attributable expenses (246,898) (173,399) (73,499) 42 %
Contribution profit
382,386 238,935 143,451 60 %
Technology Platform
Total net revenue $ 75,086 $ 103,427 $ (28,341) (27) %
Directly attributable expenses (63,087) (72,514) 9,427 (13) %
Contribution profit
11,999 30,913 (18,914) (61) %
Financial Services
Total net revenue $ 428,543 $ 303,119 $ 125,424 41 %
Provision for credit losses (8,890) (5,639) (3,251) 58 %
Directly attributable expenses (224,069) (149,148) (74,921) 50 %
Contribution profit
195,584 148,332 47,252 32 %
Reportable segments total
Total net revenue $ 1,146,049 $ 819,919 $ 326,130 40 %
Provision for credit losses (8,890) (5,639) (3,251) 58 %
Directly attributable expenses (534,054) (395,061) (138,993) 35 %
Contribution profit
589,969 418,180 171,789 41 %
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Lending Segment
Lending Segment Results of Operations
The following table presents the measure of contribution profit for the Lending segment.
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Net interest income $ 500,231 $ 360,621 $ 139,610 39 %
Noninterest income 142,189 52,752 89,437 170 %
Total net revenue 642,420 413,373 229,047 55 %
Servicing rights - change in valuation inputs or assumptions(1)
(13,163) (1,074) (12,089) n/m
Residual interests classified as debt - change in valuation inputs or assumptions(2)
27 35 (8) (23) %
Directly attributable expenses:
Direct advertising (96,905) (67,769) (29,136) 43 %
Lead generation (59,144) (40,245) (18,899) 47 %
Compensation and benefits (52,249) (35,889) (16,360) 46 %
Loan origination and servicing costs (24,696) (18,721) (5,975) 32 %
Professional services (3,861) (2,235) (1,626) 73 %
Intercompany technology platform expenses (612) (489) (123) 25 %
Other(3)
(9,431) (8,051) (1,380) 17 %
Directly attributable expenses (246,898) (173,399) (73,499) 42 %
Contribution profit
$ 382,386 $ 238,935 $ 143,451 60 %
Adjusted net revenue - Lending(4)
$ 629,284 $ 412,334 $ 216,950 53 %
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(1)Reflects changes in fair value inputs and assumptions on servicing rights, including conditional prepayment, default rates and discount rates. These assumptions are highly sensitive to market interest rate changes and are not indicative of our performance or results of operations. Moreover, these non-cash charges, which are recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income, are unrealized during the period and, therefore, have no impact on our cash flows from operations.
(2)Reflects changes in fair value inputs and assumptions on residual interests classified as debt, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated securitization VIEs by purchasing residual interests, we receive proceeds at the time of the closing of the securitization and, thereafter, pass along contractual cash flows to the residual interest owner. These residual debt obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income, but they have no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business.
(3)Other expenses primarily include loan marketing expenses, member promotional expenses, tools and subscriptions, travel and occupancy-related costs and third-party loan fraud (net of related insurance recoveries).
(4)Adjusted net revenue is a non-GAAP financial measure. For information regarding our use and definition of this measure and for a reconciliation to the most directly comparable U.S. GAAP measure, total net revenue, see "Non-GAAP Financial Measures" herein.
Net interest income
Net interest income in our Lending segment increased by $139.6 million, or 39%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This was primarily attributable to increases in aggregate average personal, student and home loan unpaid principal balances of $4.4 billion (25%), $5.0 billion (58%) and $1.1 billion (495%), respectively, partially offset by lower weighted average interest rates on personal and student loans. The personal, student and home loan average balance increases were primarily attributable to higher origination volume.
Noninterest income
Noninterest income in our Lending segment increased by $89.4 million, or 170%, for the three months ended March 31, 2026, respectively, compared to the same period in 2025, which was primarily attributable to higher loan origination, sales, securitizations and servicing income.
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Loan Origination, Sales, Securitizations and Servicing
The following table presents the components of noninterest income-loan origination, sales, securitizations and servicing:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
In period originations, loan sale execution and fair value adjustments(1)
$ 37,575 $ 240,416 $ (202,841) (84) %
Economic derivative hedges of loan fair values 161,843 (134,973) 296,816 n/m
Loan origination fees 138,278 101,998 36,280 36 %
Loan write-off expense - whole loans(2)
(193,739) (160,670) (33,069) 21 %
Other(3)
(1,768) 6,019 (7,787) n/m
Loan origination, sales, securitizations and servicing noninterest income $ 142,189 $ 52,790 $ 89,399 169 %
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(1)Includes fair value adjustments on loans originated during the period, fair value adjustments of loans and securitization bond and residual interest positions held at the balance sheet date, as well as gains (losses) on loans sold and consolidated securitization transactions during the period. Fair value adjustments are impacted by interest rates, weighted average coupon, credit spreads and loss estimates, prepayment speeds, duration and previous loan sale execution on similar loans.
(2)For the three months ended March 31, 2026 and 2025, includes gross write-offs of $226.7 million and $186.8 million, respectively. Total recoveries were $32.9 million and $26.1 million, respectively, of which $24.4 million and $19.4 million, respectively, were captured via loan sales to a third-party collection agency.
(3)Includes changes in fair value of servicing rights, gains (losses) on IRLCs and interest rate caps and the (expense) benefit associated with our estimated loan repurchase obligation (see Note 14. Commitments, Guarantees, Concentrations and Contingencies to the Notes to Condensed Consolidated Financial Statements for additional information).
The increase in loan origination, sales, securitizations and servicing income of $89.4 million, or 169%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by (i) gains during the 2026 period compared losses in the 2025 period on interest rate swap positions primarily related to personal loans and student loans ($282.7 million), (ii) higher origination fees ($36.3 million) primarily driven by increased originations across loan products compared to the year ago quarter, and (iii) net fair value gains on home loans ($11.6 million) primarily impacted by increased home loan origination volume.
These increases were partially offset by (i) net fair value losses on personal loans and lower fair value gains on student loans driven by weighted average mark decreases ($223.6 million), (ii) net higher loan write-offs ($33.1 million) driven by balance sheet growth and (iii) unfavorable changes in home loan and student loan commitments ($13.2 million).
Servicing
We own the master servicing on all of the servicing rights that we retain and, in each case, recognize the gross servicing rate applicable to each serviced loan. Sub-servicers are utilized for all serviced student loans and home loans, which represents a cost to SoFi, but these arrangements do not impact our calculation of the weighted average basis points earned for each loan type serviced. Further, there is no impact on servicing income due to forbearance and moratoriums on certain debt collection activities, and there are no waivers of late fees.
The table below presents information related to our loan servicing assets:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Servicing income recognized
Personal loans $ 36,781 $ 36,626 $ 155 - %
Student loans 3,026 3,000 26 1 %
Home loans 5,092 4,424 668 15 %
Servicing rights fair value change
Personal loans $ (13,190) $ 54,544 $ (67,734) n/m
Student loans (3,075) (5,461) 2,386 (44) %
Home loans 5,989 (1,431) 7,420 n/m
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Directly attributable expenses
Lending segment directly attributable expenses increased by $73.5 million, or 42%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to: (i) an increase in direct advertising primarily related to online, digital and direct mail advertising, (ii) an increase in expense related to personal loan lead generation channels, and (iii) an increase in allocated compensation and related benefits, which reflected increases in headcount and salary in 2026 to support growth in the Lending segment.
Total Products
Total products in our Lending segment is a subset of our total products metric. See "Key Business Metrics" and "Business Overview" for further discussion of this measure as it relates to our Lending segment.
In the table below, we present certain metrics and financial information related to our Lending segment:
Three Months Ended
March 31,
2026 vs 2025
Metric 2026 2025 Change % Change
Total products (number, as of period end) 2,831,352 2,129,833 701,519 33 %
Origination volume ($ in thousands, during period)
Personal loans(1)
$ 8,340,249 $ 5,536,841 $ 2,803,408 51 %
Student loans 2,613,708 1,191,463 1,422,245 119 %
Home loans 1,224,674 517,758 706,916 137 %
Total $ 12,178,631 $ 7,246,062 $ 4,932,569 68 %
Loans with a balance (number, as of period end)(2)
1,897,303 1,345,279 552,024 41 %
Average loan balance ($, as of period end)(2)
Personal loans $ 25,673 $ 25,598 $ 75 - %
Student loans(3)
44,663 43,103 1,560 4 %
Home loans 238,235 268,674 (30,439) (11) %
__________________
(1)Inclusive of origination volume related to our Loan Platform Business. For the three months ended March 31, 2026 and 2025, we originated $3.0 billion and $1.6 billion, respectively, of personal loans on behalf of third parties.
(2)Loans with a balance and average loan balance include Lending products on our balance sheet, as well as transferred loans and referred loans with which we have a continuing involvement through our servicing agreements.
(3)Includes in-school loans and student loan refinancing products. In-school loans carry a lower average balance than student loan refinancing products.
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. We also originate and sell loans in support of our Loan Platform Business, through which we provide lending related services to third-party partners. We maintain the same lending relationship with borrowers across all loans that we originate, inclusive of those originated on behalf of a third-party partner and as such, reflect these products within our Lending segment total products. 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.
Personal Loans. During the three months ended March 31, 2026, total personal loan origination volume increased by 51% relative to the corresponding 2025 period, inclusive of a $3.0 billion increase related to personal loans originated on behalf of third parties in support of our Loan Platform Business. Demand from our Loan Platform Business has remained robust as partners continue to leverage our customer acquisition and operational capabilities to originate loans at scale, as well as increased demand driven by expanded advertising and marketing efforts.
Student Loans. During the three months ended March 31, 2026, student loan origination volume increased by 119% relative to the corresponding 2025 period, as demand for student loan refinancing products continued to increase as borrowers looked to refinance at a lower rate, as well as increased interest in loan term extensions given the elevated interest rate environment.
Home Loans. During the three months ended March 31, 2026, home loan origination volume increased by 137% relative to the corresponding 2025 period. Our home loan origination volume increased notably throughout 2024 and into 2025,
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aided by the increased capacity and technology and fulfillment capabilities subsequent to our acquisition of Wyndham. Origination volume during 2025 and into 2026 reflected increased demand for home equity loans, which have allowed members to take advantage of the equity that has built up in their homes.
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 and investors 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.
In the table below, we present additional information related to our lending products:
Three Months Ended March 31,
($ in thousands) 2026 2025
Overall weighted average origination FICO 751 748
Personal Loans(1)
Weighted average origination FICO 745 743
Weighted average interest rate earned(2)
12.77 % 13.12 %
Interest income recognized $ 685,659 $ 562,214
Sales of loans $ 3,030,618 $ 2,748,920
Student Loans
Weighted average origination FICO 767 769
Weighted average interest rate earned(2)
5.90 % 5.94 %
Interest income recognized $ 198,245 $ 125,911
Sales of loans $ - $ -
Home Loans
Weighted average origination FICO 757 748
Weighted average interest rate earned(2)
7.87 % 7.59 %
Interest income recognized $ 25,448 $ 4,119
Sales of loans $ 763,927 $ 322,271
__________________
(1)Inclusive of activity related to loans originated and subsequently sold as part of our Loan Platform Business. For the three months ended March 31, 2026 and 2025, included $2.9 billion and $1.6 billion, respectively, related to loans originated on behalf of third parties.
(2)Weighted average interest rate earned represents annualized interest income recognized divided by the average of the unpaid principal balances of loans outstanding during the period, which are impacted by loan holding periods as well as interest rates charged to borrowers. Weighted average interest rate earned was determined on a daily basis.
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Transfers of Financial Assets
We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances of the transfer. See Note 3. Loans to the Notes to Condensed Consolidated Financial Statements for additional information.
The following table summarizes our current whole loan sales:
Three Months Ended March 31,
($ in thousands) 2026 2025
Personal loans
Fair value of consideration received:
Cash $ - $ 1,113,022
Servicing assets recognized - 68,625
Repurchase liabilities recognized - (1,280)
Total consideration - 1,180,367
Aggregate unpaid principal balance and accrued interest of loans sold - 1,113,172
Realized gain $ - $ 67,195
Sale execution(1)(2)
- % 106.2 %
Home loans
Fair value of consideration received:
Cash $ 773,099 $ 326,640
Servicing assets recognized 7,377 2,794
Repurchase liabilities recognized (1,066) (609)
Total consideration 779,410 328,825
Aggregate unpaid principal balance and accrued interest of loans sold 764,515 322,532
Realized gain $ 14,895 $ 6,293
Sale execution(1)
102.1 % 102.1 %
_____________________
(1)Sale execution represents the ratio of cash proceeds and servicing assets recognized to the aggregate unpaid principal balance and accrued interest of the loans sold. Amounts included in repurchase liabilities are excluded from the calculation, as they typically would not materially differ from the fair value markdown on the loans over the repurchase period had they been held on balance sheet and entered delinquency.
(2)Excludes net origination fees, which are recognized in earnings at the time of origination. Personal loans sold during the three months ended March 31, 2025 had related origination fees of $30,338. Sales execution, for three months ended March 31, 2025, including these origination fees would be 108.9%.
The following table summarizes our delinquent whole loan sales:
Three Months Ended March 31,
($ in thousands) 2026 2025
Personal loans
Fair value of consideration received:
Cash $ 7,114 $ 7,200
Servicing assets recognized 6,254 6,306
Repurchase liabilities recognized (116) (81)
Total consideration 13,252 13,425
Aggregate unpaid principal balance and accrued interest of loans sold(1)(2)
93,530 94,833
Realized loss $ (80,278) $ (81,408)
Sale execution(3)
14.3 % 14.2 %
_____________________
(1) During the three months ended March 31, 2026 and 2025, includes $88.9 million and $90.0 million, respectively, of aggregate unpaid principal balance sold, related to late-stage delinquent loans for which we retained servicing and portions of recoveries.
(2) For the three months ended March 31, 2026 and 2025, $57.9 million and $63.3 million, respectively, of unpaid principal balance was recorded in prior periods as a write down in noninterest income-loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. These loans were sold prior to charge-off during the respective periods and otherwise would have been charged off as of March 31, 2026 and 2025, respectively, consistent with our policy. In our other charged off whole loan sales, we typically do not retain servicing or recoveries.
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(3) Sale execution represents the ratio of cash proceeds and servicing assets recognized to the aggregate unpaid principal balance and accrued interest of the loans sold. Amounts included in repurchase liabilities are excluded from the calculation, as they typically would not materially differ from the fair value markdown on the loans over the repurchase period had they been held on balance sheet and entered delinquency.
Technology Platform Segment
Technology Platform Segment Results of Operations
The following table presents the measure of contribution profit for the Technology Platform segment.
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Net interest income $ 355 $ 413 $ (58) (14) %
Noninterest income 74,731 103,014 (28,283) (27) %
Total net revenue 75,086 103,427 (28,341) (27) %
Directly attributable expenses:
Compensation and benefits (46,090) (44,486) (1,604) 4 %
Product fulfillment (2,527) (13,962) 11,435 (82) %
Tools and subscriptions (6,991) (6,890) (101) 1 %
Professional services (4,311) (2,670) (1,641) 61 %
Other(1)
(3,168) (4,506) 1,338 (30) %
Directly attributable expenses (63,087) (72,514) 9,427 (13) %
Contribution profit
$ 11,999 $ 30,913 $ (18,914) (61) %
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(1)Other expenses are primarily related to travel and occupancy-related costs, advertising and marketing and accounts receivable write-offs.
Net interest income
Net interest income in our Technology Platform segment of $0.4 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively, relates to interest income earned on segment cash balances.
Noninterest income
Three Months. Noninterest income in our Technology Platform segment decreased by $28.3 million, or 27%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily attributable to a decline in technology services fees of $37.2 million. These results reflected the exit of a large client who fully transitioned off our platform in 2025. This was partially offset by an increase in intercompany revenue of $8.5 million, primarily attributable to increased usage of technology platform services during the 2026 periods by our Financial Services segment as we continue to leverage synergies to enhance our product offerings.
Directly attributable expenses
Three Months. Technology Platform segment directly attributable expenses decreased by $9.4 million, or 13%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily attributable to a decrease in product fulfillment costs, primarily related to payment processing network association fees associated with decreased activity on the platform.
Total Accounts
In the table below, we present the total accounts metric related to our Technology Platform segment:
2026 vs 2025
March 31, 2026 March 31, 2025 Change % Change
Total accounts 132,874,105 158,432,347 (25,558,242) (16) %
See "Key Business Metrics" and "Business Overview" for further discussion of this measure as it relates to our Technology Platform segment.
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Financial Services Segment
Financial Services Segment Results of Operations
The following table presents the measure of contribution profit for the Financial Services segment:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Net interest income $ 227,740 $ 173,199 $ 54,541 31 %
Noninterest income 200,803 129,920 70,883 55 %
Total net revenue 428,543 303,119 125,424 41 %
Provision for credit losses (8,890) (5,639) (3,251) 58 %
Directly attributable expenses:
Compensation and benefits (57,425) (42,479) (14,946) 35 %
Direct advertising (11,994) (5,676) (6,318) 111 %
Lead generation (51,624) (31,668) (19,956) 63 %
Product fulfillment (26,597) (18,701) (7,896) 42 %
Member incentives (24,634) (16,083) (8,551) 53 %
Professional services (9,649) (7,257) (2,392) 33 %
Intercompany technology platform expenses (12,727) (11,021) (1,706) 15 %
Other(1)
(29,419) (16,263) (13,156) 81 %
Directly attributable expenses (224,069) (149,148) (74,921) 50 %
Contribution profit
$ 195,584 $ 148,332 $ 47,252 32 %
___________________
(1)Other expenses primarily include operational product losses, network servicing fees, travel and occupancy-related costs, tools and subscriptions, and marketing expenses.
Net interest income
Net interest income in our Financial Services segment increased by $54.5 million, or 31%, for the three months ended March 31, 2026 compared to the same period in 2025, which was primarily attributable to net interest income earned on our deposits which includes interest income based on our FTP framework (which is eliminated in consolidation) and interest expense to members. This net increase corresponds with the growth of our SoFi Money product and related deposits at SoFi Bank.
Noninterest income
The table below presents revenue from contracts with customers disaggregated by type of service, as well as a reconciliation of total revenue from contracts with customers to total noninterest income for the Financial Services segment.
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Referrals, loan platform business(1)
$ 19,277 $ 19,700 $ (423) (2) %
Referrals, other(2)
3,756 2,530 1,226 48 %
Interchange(2)
35,201 22,812 12,389 54 %
Brokerage(2)
15,104 6,985 8,119 116 %
Net crypto transaction revenue 852 - 852 n/m
Other(2)(3)
5,972 1,731 4,241 245 %
Total net revenue from contracts with customers(4)
80,162 53,758 26,404 49 %
Loan platform business, other(1)
118,978 73,050 45,928 63 %
Other sources of revenue(5)
1,663 3,112 (1,449) (47) %
Total Financial Services noninterest income $ 200,803 $ 129,920 $ 70,883 55 %
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(1) Presented within noninterest income-loan platform fees in the condensed consolidated statements of operations and comprehensive income.
(2) Presented within noninterest income-other in the condensed consolidated statements of operations and comprehensive income.
(3) Includes revenues from wire fee income, enterprise services, SoFi Plus subscriptions and equity capital markets services.
(4) See Note 2. Revenue to the Notes to Condensed Consolidated Financial Statements for additional information.
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(5) Presented within noninterest income-other and noninterest income-loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income.
Three Months. Noninterest income in our Financial Services segment increased by $70.9 million, or 55%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to: (i) growth in our Loan Platform Business of $45.5 million, which includes increases in loan platform fees related to revenue from loans which we originate on behalf of third parties in order to subsequently sell as well as pre-qualified borrower referrals to third-party loan origination partners as we continue to drive volume to our partners; and (ii) an increase in interchange fees of $12.4 million, which coincided with increased credit card and debit card transactions.
Provision for credit losses
Provision for credit losses in our Financial Services segment increased by $3.3 million, or 58%, for the three months ended March 31, 2026 compared to the same period in 2025. The allowance increase of $1.0 million during the three months ended March 31, 2026 primarily reflected growth in the credit card portfolio balances, partially offset by continued improvement in credit quality of the portfolio. Net charge-offs decreased driven by the credit stabilization in our credit card portfolio (total credit card delinquency rate was 4.1% as of March 31, 2026, up approximately 10 bps from the comparative period) as a result of improved underwriting standards and risk mitigation actions.
Directly attributable expenses
Three Months. Financial Services directly attributable expenses increased by $74.9 million, or 50%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to: (i) a net increase in direct advertising and lead generation costs as we continue to expand our SoFi Money and Invest products and Loan Platform Business; and (ii) an increase in allocated compensation and related benefits which reflected an increase in headcount in 2026 to support growth in the Financial Services segment.
Total Products
In the table below, we present the total products metric related to our Financial Services segment:
2026 vs 2025
March 31, 2026 March 31, 2025 Change % Change
Total products 19,327,794 13,785,592 5,542,202 40 %
Total products in our Financial Services segment is a subset of our total products metric. See "Key Business Metrics" and "Business Overview" for a further discussion of this measure as it relates to our Financial Services segment.
Corporate/Other Segment
Non-segment operations are classified as Corporate/Other, which includes net revenues associated with corporate functions, non-recurring gains and losses from non-securitization investment activities, interest income and realized gains and losses associated with investments in AFS debt securities, and gains or losses on extinguishment of convertible debt, all of which are not directly related to a reportable segment. Net interest expense within Corporate/Other also reflects the financial impact of our capital management activities within the treasury function, which reflects the residual impact from FTP charges and FTP credits allocated to our reportable segments under our FTP framework. The following table presents the measure of total net revenue (loss) for Corporate/Other:
Three Months Ended
March 31,
2026 vs 2025
($ in thousands) 2026 2025 $ Change % Change
Net interest income (expense) $ (35,338) $ (35,507) $ 169 - %
Noninterest income (loss) (10,343) (12,653) 2,310 (18) %
Total net revenue (loss)
$ (45,681) $ (48,160) $ 2,479 (5) %
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Reconciliation of Directly Attributable Expenses
The following table reconciles directly attributable expenses allocated to our reportable segments to total noninterest expense in the condensed consolidated statements of operations and comprehensive income:
Three Months Ended March 31,
($ in thousands) 2026 2025
Reportable segments directly attributable expenses $ (534,054) $ (395,061)
Intercompany expenses 24,737 16,195
Expenses not allocated to segments:
Share-based compensation expense (72,012) (63,756)
Employee-related costs(1)
(108,455) (88,197)
Depreciation and amortization expense (67,578) (55,283)
Other corporate and unallocated expenses(2)
(134,559) (100,197)
Total noninterest expense $ (891,921) $ (686,299)
___________________
(1)Includes expenses related to compensation, benefits, restructuring charges, 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)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, amortization of premiums on a credit default swap, corporate and FDIC insurance costs, foreign currency translation adjustments and transaction-related expenses.
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Consolidated Balance Sheet Analysis
Assets
The following is a discussion of the significant changes in our assets, liabilities and permanent equity between March 31, 2026 and December 31, 2025.
2026 vs 2025
($ in thousands) March 31, 2026 December 31, 2025 $ Change % Change
Assets
Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 3,761,251 $ 5,356,773 $ (1,595,522) (30) %
Investment securities 3,231,227 2,575,607 655,620 25 %
Total loans 42,172,790 38,037,063 4,135,727 11 %
All other assets(1)
4,532,990 4,691,035 (158,045) (3) %
Total assets $ 53,698,258 $ 50,660,478 $ 3,037,780 6 %
___________________
(1)All other assets includes servicing rights, property, equipment and software, goodwill, intangible assets, operating lease right-of-use assets and other assets. See the condensed consolidated balance sheets within this report.
Total assets as of March 31, 2026 were $53.7 billion, up $3.0 billion, or 6%, from December 31, 2025. The increase was primarily attributable to an increase in total loans of $4.1 billion, comprised of held for sale ($2.6 billion) driven by an increase in personal and home loan originations and an increase in our loans held for investment ($1.5 billion) which was primarily related to student loan originations. This increase was partially offset by a reduction in cash, cash equivalents of $1.6 billion as a result of using some of our equity to fund loans . See "Cash Flow and Liquidity Analysis" for further discussion of changes in total cash, cash equivalents, restricted cash and restricted cash equivalents during the three months ended March 31, 2026.
2026 vs 2025
($ in thousands) March 31, 2026 December 31, 2025 $ Change % Change
Liabilities and equity
Liabilities:
Total deposits $ 40,242,697 $ 37,505,395 $ 2,737,302 7 %
Debt 1,813,481 1,815,162 (1,681) - %
All other liabilities(1)
830,489 850,426 (19,937) (2) %
Total liabilities 42,886,667 40,170,983 2,715,684 7 %
Total equity
10,811,591 10,489,495 322,096 3 %
Total liabilities and equity
$ 53,698,258 $ 50,660,478 $ 3,037,780 6 %
___________________
(1)Other liabilities includes accounts payable, accruals and other liabilities, operating lease liabilities and residual interests classified as debt. See the condensed consolidated balance sheets within this report.
Liabilities and Equity
Total liabilities as of March 31, 2026 were $42.9 billion, up $2.7 billion, or 7%, from December 31, 2025. The increase was primarily attributable to an increase in total deposits ($2.7 billion) driven by our differentiated checking and savings account offerings and competitive APY.
Total equity as of March 31, 2026 was $10.8 billion, up $0.3 billion, or 3%, from December 31, 2025. The increase was primarily attributable a decrease in accumulated deficit driven by net income during the three months ended March 31, 2026 as well as the completion of a common stock offering in January 2026.
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Cash Flow and Liquidity Analysis
The following table provides a summary of cash flow data:
Three Months Ended March 31,
($ in thousands) 2026 2025
Net cash (used in) provided by operating activities $ (2,314,994) $ 21,502
Net cash used in investing activities (2,394,334) (1,440,220)
Net cash provided by financing activities 3,114,580 1,425,763
Cash Flows from Operating Activities
For the three months ended March 31, 2026, net cash used in operating activities primarily stemmed from loans held for sale originations outpacing cash proceeds from loans held for sale paydowns and sales activities, partially offset by net income and paydowns on our loans previously classified as held for sale. We had principal loan originations of $9.6 billion during the period. These cash uses were partially offset by cash proceeds of principal loan payments of $3.3 billion and principal loan sales of $3.7 billion.
For the three months ended March 31, 2025, net cash provided by operating activities stemmed from net income, paydowns on our loans previously classified as held for sale, and favorable changes in other assets, partially offset by loans held for sale originations outpacing cash proceeds from loans held for sale paydowns and sales activities.
Cash Flows from Investing Activities
For the three months ended March 31, 2026, net cash used in investing activities was primarily driven by growth in our loans and AFS investment portfolio, including $2.6 billion of loan originations and $1.4 billion of AFS investment purchases, as well as net outflows related to credit cards of $12.8 million. These outflows were partially offset by $1.0 billion of proceeds from loan repayments and recoveries, $605.8 million of AFS investment sales and $167.3 million of AFS investment payments and maturities.
For the three months ended March 31, 2025, net cash used in investing activities was primarily driven by originations and purchases of loans held for investment outpacing repayments of loans held for investment as well as investment securities purchases. These uses were partially offset by cash proceeds from sales, maturities, and paydowns of investment securities and from sales of loans held for investment.
Cash Flows from Financing Activities
For the three months ended March 31, 2026, net cash provided by financing activities was primarily attributable to net cash sources from our SoFi Bank deposits of $3.0 billion and proceeds of $87.4 million from the common stock offering that we completed in the first quarter of 2026.
For the three months ended March 31, 2025, net cash provided by financing activities was primarily attributable to net cash sources from our SoFi Bank deposits. This was partially offset by our net change in debt facilities related to our warehouses and debt repayments.
Liquidity and Capital Resources
Liquidity
We strive to maintain access to diverse funding sources and ample liquidity to fund our operating requirements, to pursue strategic growth initiatives and to meet our legal and regulatory requirements. Our principal sources of liquidity are our cash and cash equivalents, including cash from operations, and investments in other highly liquid assets.
We maintain Treasury risk policies which outline specific requirements relating to the oversight of SoFi Technologies, Inc. (and its subsidiaries) capital planning, financial planning and forecasting, liquidity risk management, contingency funding planning, interest rate risk management, cash management and financial operations, among other activities. Oversight of these activities is the responsibility of our ALCO. The ALCO is a management committee comprised of a cross-functional leadership team that is responsible for managing our use of capital, liquidity, sources and uses of funding, and sensitivities to various market risks, by identifying key risks and exposures, monitoring them appropriately, establishing tolerances and limits,
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mitigating risks where appropriate, and facilitating timely responses to changes in the macroeconomic environment and liquidity events to work to ensure the Company has the ability to meet its obligations.
The following table summarizes our total liquidity reserves:
March 31, 2026
($ in thousands) Amount Available Amount Borrowed / Utilized Remaining Available Capacity
Cash and cash equivalents $ 3,401,020 n/a $ 3,401,020
Investments in AFS debt securities(1)
2,826,503 n/a 2,826,503
Warehouse facilities(2)
7,180,000 - 7,180,000
Revolving credit facility(3)
645,000 497,400 147,600
FHLB advances(4)
264,927 46,700 218,227
Other lines of credit(5)
50,000 - 50,000
Total liquidity $ 14,367,450 $ 544,100 $ 13,823,350
___________________
(1)Excludes investments in AFS debt securities which are pledged as collateral to the FHLB, and AFS securitization investments.
(2)Includes personal loan, student loan and risk retention warehouse facilities. For risk retention facilities, we only include capacity amounts wherein we can pledge additional asset-backed bonds and residual investments as of the date indicated. See Note 8. Debt to the Notes to Condensed Consolidated Financial Statements for additional information.
(3)As of March 31, 2026, the amount utilized under the revolving credit facility includes $11.4 million utilized to secure letters of credit. See Note 8. Debt to the Notes to Condensed Consolidated Financial Statements for additional information.
(4)As of March 31, 2026, we had $202.5 million of investments in AFS debt securities and $59.5 million of loans pledged as collateral to the FHLB to secure undrawn borrowing capacity of $264.9 million, of which $46.7 million was utilized to secure letters of credit.
(5)Borrowing capacity with a correspondent bank, which is an unsecured committed Federal funds line.
We believe our existing liquidity will be sufficient to meet our existing working capital and capital expenditure needs as well as our planned growth for at least the next 12 months.
Sources of Funding
Our primary funding sources include SoFi Bank deposits, warehouse funding, common equity capital, convertible debt, corporate revolving credit facility, securitizations, and other financings.
We offer deposit accounts (checking and savings accounts) to our members through SoFi Bank. We also source brokered and non-brokered wholesale deposits, which include certificates of deposit. As of March 31, 2026 and December 31, 2025, time deposit balances due in less than one year totaled $1.1 billion and $1.2 billion, respectively. As of March 31, 2026 and December 31, 2025, the amount of uninsured deposits totaled $1.1 billion and $1.0 billion, respectively. As of March 31, 2026, approximately 97% of our total deposits were insured.
On December 8, 2025, the Company completed an underwritten public offering of 54,545,454 shares of common stock, at an offering price of $27.50 per share. The Company received net proceeds of $1.5 billion after deducting underwriting discounts and offering costs. In January 2026, the Company completed the issuance and sale of an additional 3,209,206 shares of common stock purchased pursuant to a 30-day option related to the December 2025 underwriting agreement. The Company received net proceeds of approximately $0.1 billion after deducting underwriting discounts and commissions paid.
Inclusive of the option, the total aggregate number of shares sold in December 2025 and January 2026 related to the offering was 57,754,660 shares, for total cash proceeds of approximately $1.6 billion, net of underwriting discounts and commissions paid.
Uses of Funding
Our primary uses of funds include loan originations, investments in our business, such as technology and product investments, as well as sales and marketing initiatives. Our capital expenditures have historically been less significant relative to our operating and financing cash flows, and we expect this trend to continue for the foreseeable future.
As of March 31, 2026, we had debt obligations and common stock outstanding.
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Borrowings
Our borrowings primarily included our revolving credit facility and convertible notes. During the fourth quarter of 2025, the Company used a portion of the proceeds from its common stock issuances to pay down its warehouse facilities; the warehouse facilities remain open to maintain future borrowing capacity.
Refer to Note 8. Debt to the Notes to Condensed Consolidated Financial Statements in this Form 10-Q and to Note 12. Debt to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for additional information on our borrowing arrangements and the capped call transactions entered into in connection with the issuance of our convertible notes.
Covenants
We have various affirmative and negative financial covenants, as well as non-financial covenants, related to our warehouse debt and revolving credit facility. Additionally, we have compliance requirements associated with our convertible notes, and certain provisions of the arrangement could change in the event of a "Make-Whole Fundamental Change", as defined in the indenture governing such convertible notes.
The availability of funds under our warehouse facilities and revolving credit facility is subject to, among other conditions, our continued compliance with the covenants. These financial covenants include, but are not limited to, maintaining: (i) a certain minimum tangible net worth, (ii) minimum unrestricted cash and cash equivalents, (iii) a maximum leverage ratio of total debt to tangible net worth, and (iv) minimum risk-based capital and leverage ratios. A breach of these covenants can result in an event of default under these facilities and allows the lenders to pursue certain remedies. See Note 8. Debt to the Notes to Condensed Consolidated Financial Statements for additional information. Our subsidiaries are restricted in the amount that can be distributed to SoFi only to the extent that such distributions would cause the financial covenants to not be met.
We were in compliance with all covenants as of March 31, 2026.
Capital Management
SoFi Technologies, a bank holding company, and SoFi Bank, a nationally chartered association, are required to comply with regulatory capital rules issued by the Federal Reserve and other U.S. banking regulators, including the OCC and FDIC. From time to time, we may contribute capital to 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. banking organizations (U.S. Basel III). If the Federal Reserve finds that we are not "well-capitalized" or "well-managed", we would be required to take remedial action, which may contain additional limitations or conditions relating to our activities.
The Federal Reserve and the OCC have authority to prohibit bank holding companies and banks, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. Under the National Bank Act, SoFi Bank generally may, without prior approval of the OCC, declare a dividend so long as the total amount of all dividends, including the proposed dividend, in the current year do not exceed net income for the current year to date plus retained net income for the prior two years. However, taking into account a wide range of factors, the OCC may object and therefore prevent SoFi Bank from paying dividends to the Company. As such, as of March 31, 2026, the Bank would not have any funds free of restrictions that are available for dividend payments. Restrictions on the ability of SoFi Bank to pay dividends to the parent company could also impact the Company's ability to pay dividends to common stockholders.
Additionally, under the Federal Reserve's capital rules, our bank holding company's ability to pay dividends is restricted if we do not maintain capital above the capital conservation buffer, as discussed below. Further, a policy statement of the Federal Reserve provides that, among other things, a bank holding company generally should not pay dividends on regulatory capital instruments if its net income for the past year is not sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company's capital needs, asset quality, and overall financial condition. Based on this Federal Reserve policy, as of March 31, 2026, the Company generally would not have any funds free of restrictions available for dividend payments on regulatory capital instruments.
These requirements establish required minimum ratios for CET1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Additionally, regulatory capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios in order to avoid restrictions on capital distributions and discretionary bonuses. In addition, the Federal Reserve and the OCC have authority to require banking organizations subject to their supervision to hold additional amounts of capital in excess of the minimum risk-based capital ratios.
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The risk- and leverage-based capital ratios and amounts are presented below:
March 31, 2026 December 31, 2025
($ in thousands) Amount Ratio Amount Ratio
Required Minimum(1)
Well-Capitalized Minimum(2)
SoFi Technologies(3)
CET1 risk-based capital $ 8,830,429 21.1 % $ 8,473,542 22.8 % 7.0 % n/a
Tier 1 risk-based capital 8,830,429 21.1 % 8,473,542 22.8 % 8.5 % n/a
Total risk-based capital 8,882,173 21.3 % 8,524,272 22.9 % 10.5 % n/a
Tier 1 leverage 8,830,429 17.7 % 8,473,542 18.8 % 4.0 % n/a
Risk-weighted assets 41,792,048 37,234,048
Quarterly adjusted average assets 49,987,621 45,007,951
SoFi Bank
CET1 risk-based capital $ 6,109,887 15.3 % $ 5,789,629 16.4 % 7.0 % 6.5 %
Tier 1 risk-based capital 6,109,887 15.3 % 5,789,629 16.4 % 8.5 % 8.0 %
Total risk-based capital 6,161,631 15.4 % 5,840,360 16.6 % 10.5 % 10.0 %
Tier 1 leverage 6,109,887 12.8 % 5,789,629 13.5 % 4.0 % 5.0 %
Risk-weighted assets 39,953,375 35,221,924
Quarterly adjusted average assets 47,851,179 42,755,205
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(1)Required minimums presented for risk-based capital ratios include the required capital conservation buffer.
(2)The well-capitalized minimum measure is applicable at the bank level only.
(3)Amounts and ratios for March 31, 2026 are estimated.
As of March 31, 2026 and December 31, 2025, 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, 2026 that management believes would change the categorization.
Commitments
In addition to our warehouse facility borrowings, revolving credit facility borrowings and convertible notes, our material commitments requiring, or potentially requiring, the use of cash in future periods primarily include commitments related to sponsorship, advertising, and cloud computing agreements under which we are required to make payments over the life of the agreements. Additional material commitments include operating lease obligations primarily associated with office premises and finance lease obligations which expire in 2040.
Guarantees
We may require liquidity resources associated with our guarantee arrangements. As a component of our loan sale agreements, we make certain representations to third parties that purchased our previously held loans. We have a three-year obligation to GSEs on loans that we sell to GSEs, to repurchase any originated loans that do not meet certain GSE guidelines, and we are required to pay the full initial purchase price back to the GSEs. In addition, we make standard representations and warranties related to personal, student and home loan transfers, as well as limited credit-related repurchase guarantees on certain such transfers. If realized, any of the repurchases would require the use of cash. See Note 14. Commitments, Guarantees, Concentrations and Contingencies to the Notes to Condensed Consolidated Financial Statements for further information on these and other guarantee obligations. We believe we have adequate liquidity to meet these expected obligations.
Factors Affecting Liquidity
The activities of our lending business are a key factor affecting our liquidity, in particular our origination volume, the holding period of our loans, loan sale execution and the timing of loan repayments. Our ability to have adequate liquidity to fund our balance sheet is impacted by our ability to access new deposits, and retain and grow existing deposits, along with our ability to access whole loan buyers, sell our loans on favorable terms, maintain adequate warehouse capacity at favorable terms, and to strategically manage our continuing financial interest in securitization-related transfers. Our ability to attract and maintain deposits can be impacted by, among other things, general economic conditions, competition from other financial services firms, idiosyncratic events and the interest rates we offer, which can impact our liquidity from deposits. In 2023, we
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began to provide our members with access to expanded FDIC insurance coverage through a network of participating banks in our Insured Deposit Program. We continued to have strong deposit contribution through the first quarter of 2026.
There is no guarantee that we will be able to execute on our strategy as it relates to the timing and pricing of capital markets transaction.
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 or market disruptions, should be considered when assessing our future liquidity and solvency prospects. 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.
In addition to our ability to pledge unencumbered loans against available warehouse capacity, we have relationships with whole loan buyers who have historically demonstrated strong demand for our loans. Capital markets can also generate additional liquidity; however, we are required to maintain a minimum investment due to securitization risk retention rules.
We also had available borrowing capacity at the FHLBs and the discount window at the Federal Reserve Banks as a result of collateral pledged by us to such banks.
Our long-term liquidity strategy includes continuing to grow our deposit base, maintaining adequate warehouse capacity, maintaining access to debt capital markets 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.
The FDIA and FDIC regulations generally limit the ability of an insured depository institution to accept, renew or roll over any brokered deposit unless the institution's capital category is "well capitalized" or, with the FDIC's approval, "adequately capitalized." As of March 31, 2026, 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.
Other Arrangements
We enter into arrangements in which we originate loans, establish an SPE and transfer loans to the SPE, which has historically served as an important source of liquidity. We also retain the servicing rights of the underlying loans and hold additional interests in the SPE. When an SPE is determined not to be a VIE or when an SPE is determined to be a VIE but we are not the primary beneficiary, the SPE is not consolidated. In addition, a significant change to the pertinent rights of other parties or our pertinent rights, or a significant change to the ranges of possible financial performance outcomes used in our assessment of the variability of cash flows due to us, could impact the determination of whether or not a VIE is consolidated. VIE consolidation and deconsolidation may lead to increased volatility in our financial results and impact period-over-period comparability. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards to the Notes to Consolidated Financial Statements within our Annual Report on Form 10-K for the year ended December 31, 2025 for our VIE consolidation policy.
Historically, we have established personal loan trusts and student loan trusts that were created and designed to transfer credit and interest rate risk associated with the underlying loans through the issuance of collateralized notes and residual certificates. We hold a variable interest in the trusts through our ownership of collateralized notes in the form of asset-backed bonds and residual certificates. The residual certificates absorb variability and represent the equity ownership interest in the equity portion of the personal loan and student loan trusts.
We are also the servicer for all trusts in which we hold a financial interest. As servicer, we may have the power to perform the activities which most impact the economic performance of the VIE, but since either we hold an insignificant financial interest in the trusts or rights held by other variable interest holders convey power, we are not the primary beneficiary. Further, we do not provide financial support beyond our initial equity investment, and our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to that initial investment. For a more detailed discussion of nonconsolidated VIEs, including related activity during the period, see Note 6. Securitization and Variable Interest Entities to the Notes to Condensed Consolidated Financial Statements.
Critical Accounting Estimates
Our consolidated financial statements have been prepared in accordance with GAAP. In preparing our consolidated financial statements, we make judgments, estimates and assumptions that affect reported amounts of assets and liabilities, as
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well as revenues and expenses. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. The results involve judgments about the carrying values of assets and liabilities not readily apparent from other sources. Actual results could differ materially from these estimates under different assumptions or conditions. We regularly evaluate our estimates, assumptions and judgments, particularly those that include the most difficult, subjective or complex judgments which are often about matters that are inherently uncertain. 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 2026. 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, 2025 within Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards to the Notes to Consolidated Financial Statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates".
Goodwill
Goodwill represents the fair value of an acquired business in excess of the fair value of the identified net assets acquired. As of March 31, 2026, we had goodwill of $1.4 billion, of which $1.3 billion was assigned to the Technology Platform reporting unit.
Goodwill is tested for impairment at the reporting unit level at least annually, with a recurring testing date of October 1, or whenever indicators of impairment exist. We may assess goodwill for impairment initially based on qualitative considerations, referred to as "step zero", to determine whether conditions exist that indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If management concludes, based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting unit's carrying value is greater than its fair value, then a quantitative analysis, referred to as "step one", will be performed to determine if there is any impairment. We may alternatively elect to initially perform a quantitative assessment and bypass the qualitative assessment. Quantitative goodwill impairment assessments require a significant amount of management judgment, and a meaningful change in the forecasted future revenues and cash flows, the discount rate, and the determination of market multiples used in testing goodwill for impairment could result in a material impact on the Company's results of operations and financial position.
During the first quarter of 2026, we performed a qualitative assessment for our reporting units to which goodwill is allocated to determine if, for any reporting unit, it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company evaluated events and circumstances since the last goodwill assessment date to determine if it was more likely than not that the fair value of the reporting units were less than their respective carrying amounts. The factors evaluated included an assessment of macroeconomic conditions, industry and market conditions, key financial metrics, overall financial performance of the reporting unit, or any other specific events or changes. As a result of this assessment, we concluded that it was not more-likely-than-not that the fair value of any of our reporting units was below its respective carrying value as of March 31, 2026.
Management cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the value of goodwill. We continue to monitor the general macroeconomic environment, including the interest rate environment, inflationary pressures, and the potential for a prolonged economic downturn or recession, as well as other factors such as if the Company's market capitalization was to decline due to unforeseen factors, along with those listed in "Cautionary Statement Regarding Forward-Looking Statements" and of this Quarterly Report and "Risk Factors" in Part II, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025. Further persistence of the aforementioned conditions and these other factors could result in impairment charges in future periods.
Recent Accounting Standards Issued, But Not Yet Adopted
See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards to the Notes to Condensed Consolidated Financial Statements herein and Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
SoFi Technologies Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 07, 2026 at 10:17 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]