
PART I – FINANCIAL INFORMATION Financial Statements This section presents the unaudited condensed consolidated financial statements for SoFi Technologies, Inc. as of March 31, 2025, and for the three-month period then ended, including balance sheets, statements of operations, changes in equity, and cash flows, along with detailed notes Condensed Consolidated Balance Sheets The balance sheet shows total assets of $37.7 billion as of March 31, 2025, a 4% increase from December 31, 2024, driven by increases in loans held for investment and loans held for sale, with total liabilities growing to $31.1 billion and total permanent equity rising to $6.7 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Total loans | $29,093,933 | $27,528,718 | | Total assets | $37,749,286 | $36,250,951 | | Liabilities & Equity | | | | Total deposits | $27,256,528 | $25,978,204 | | Total debt | $3,046,145 | $3,092,692 | | Total liabilities | $31,070,772 | $29,725,817 | | Total permanent equity | $6,678,514 | $6,525,134 | Condensed Consolidated Statements of Operations and Comprehensive Income For the three months ended March 31, 2025, the company reported total net revenue of $771.8 million, a 20% increase year-over-year, with net income at $71.1 million, or $0.06 per diluted share, driven by growth in both net interest income and noninterest income Q1 2025 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total net revenue | $771,759 | $644,995 | | Net interest income | $498,726 | $402,718 | | Total noninterest income | $273,033 | $242,277 | | Net income | $71,116 | $88,043 | | Earnings per share – diluted | $0.06 | $0.02 | Condensed Consolidated Statements of Cash Flows For the first quarter of 2025, net cash provided by operating activities was $21.5 million, while net cash used in investing activities was $1.44 billion, primarily for loan originations and investment purchases, with net cash provided by financing activities at $1.43 billion, driven by increased deposits Q1 2025 Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,502 | $738,248 | | Net cash used in investing activities | $(1,440,220) | $(1,261,184) | | Net cash provided by financing activities | $1,425,763 | $1,055,445 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations of the accounting policies and financial data presented in the statements, covering revenue recognition, loan portfolio composition and fair value, allowance for credit losses, investment securities, debt structure, equity, and segment-level performance - The company operates through three reportable segments: Lending, Technology Platform, and Financial Services. It became a bank holding company in 2022 and operates SoFi Bank, National Association35 Disaggregated Revenue from Contracts with Customers (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Financial Services | $53,758 | $29,699 | | Technology Platform | $86,624 | $85,910 | | Total | $140,382 | $115,609 | Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loans held for sale, at fair value | $18,226,063 | $17,684,892 | | Loans held for investment, at fair value | $9,571,457 | $8,597,368 | | Loans held for investment, at amortized cost | $1,296,413 | $1,246,458 | | Total loans | $29,093,933 | $27,528,718 | Segment Contribution Profit (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Lending | $238,935 | $207,719 | | Technology Platform | $30,913 | $30,742 | | Financial Services | $148,332 | $37,174 | | Total Contribution Profit | $418,180 | $275,635 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's Q1 2025 financial performance, highlighting a 20% year-over-year increase in total net revenue to $771.8 million and a 67% increase in fee-based revenue, covering segment results, balance sheet changes, liquidity, and critical accounting estimates, emphasizing growth in members, products, and deposits driven by its Financial Services Productivity Loop strategy - SoFi's strategy centers on the "Financial Services Productivity Loop," aiming to lower member acquisition costs and increase lifetime value by cross-selling products across its integrated platform254 Key Financial Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total net revenue | $771,759 | $644,995 | 20% | | Net income | $71,116 | $88,043 | (19)% | | Adjusted EBITDA (non-GAAP) | $210,337 | $144,385 | 46% | Key Business Metrics (as of period end) | Metric | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Members | 10,915,811 | 8,131,720 | 34% | | Total Products | 15,915,425 | 11,830,128 | 35% | Business Overview SoFi operates as a member-centric, one-stop shop for financial services across three segments: Lending, Technology Platform, and Financial Services, aiming to help members achieve financial independence through an integrated digital platform, with its bank holding company status allowing for lower funding costs and greater flexibility - SoFi's business is structured into three reportable segments: Lending, Technology Platform, and Financial Services250 - The company's strategy is built around the "Financial Services Productivity Loop," where positive member experiences drive adoption of additional products, lowering acquisition costs and increasing lifetime value254 - Operating SoFi Bank provides key financial benefits, including lower cost of funds through deposits, increased flexibility to hold loans, and better member data for cross-selling258 Consolidated Results of Operations In Q1 2025, total net revenue increased 20% YoY to $771.8 million, driven by a 24% rise in net interest income and a 13% increase in noninterest income, with net interest income growth fueled by higher average loan balances and noninterest income growth primarily due to a 766% surge in loan platform fees, while total noninterest expenses rose 26% to $686.3 million, led by higher sales and marketing costs Consolidated Results of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $498,726 | $402,718 | 24% | | Total noninterest income | $273,033 | $242,277 | 13% | | Total net revenue | $771,759 | $644,995 | 20% | | Total noninterest expense | $686,299 | $543,587 | 26% | | Net income | $71,116 | $88,043 | (19)% | - The increase in net interest income was primarily driven by higher interest income from personal and student loans due to higher average balances and longer holding periods364 - The increase in noninterest income was driven by a significant $82.0 million (766%) increase in loan platform fees368371 - The 26% increase in noninterest expense was led by a 42% rise in sales and marketing and a 35% increase in cost of operations, reflecting investments in growth389 Summary Results by Segment In Q1 2025, all three segments showed top-line growth, with the Lending segment's contribution profit growing 15% to $238.9 million, the Technology Platform segment's contribution profit stable at $30.9 million, and the Financial Services segment seeing a significant 299% increase in contribution profit to $148.3 million, driven by a 101% rise in net revenue Contribution Profit by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Lending | $238,935 | $207,719 | 15% | | Technology Platform | $30,913 | $30,742 | 1% | | Financial Services | $148,332 | $37,174 | 299% | - Lending segment growth was driven by a 35% increase in net interest income from higher loan balances400 - Financial Services segment performance was propelled by a 101% increase in total net revenue, largely from a $99.1 million (321%) surge in noninterest income433439 Consolidated Balance Sheet Analysis As of March 31, 2025, total assets increased by 4% to $37.7 billion from year-end 2024, driven by a $1.6 billion growth in total loans, while total liabilities rose 5% to $31.1 billion, primarily due to a $1.3 billion increase in deposits, reflecting the company's strategy of using deposits to fund loan growth, and total permanent equity increased by $153.4 million to $6.7 billion - Total assets grew by $1.5 billion (4%) since December 31, 2024, primarily due to a $1.6 billion increase in total loans449 - Total liabilities increased by $1.3 billion (5%), driven by a $1.3 billion growth in deposits, while total debt decreased by $46.5 million, indicating a shift towards deposit funding451 Liquidity and Capital Resources SoFi maintains a strong liquidity position with total available liquidity of $10.2 billion as of March 31, 2025, primarily from cash, investment securities, and undrawn warehouse and credit facilities, with deposits growing to $27.3 billion as a primary funding source, and both SoFi Technologies and SoFi Bank exceeding all regulatory capital requirements to be considered "well-capitalized" Total Liquidity Reserves (in thousands) | Source | Amount Available | Remaining Available Capacity | | :--- | :--- | :--- | | Cash and cash equivalents | $2,085,697 | $2,085,697 | | Investments in AFS debt securities | $1,898,085 | $1,898,085 | | Warehouse facilities | $7,098,750 | $5,872,819 | | Revolving credit facility | $645,000 | $146,700 | | Total Liquidity | $11,938,062 | $10,188,631 | Regulatory Capital Ratios (March 31, 2025) | Entity / Ratio | Actual Ratio | Required Minimum (Well-Capitalized) | | :--- | :--- | :--- | | SoFi Bank | | | | CET1 risk-based capital | 16.5% | 7.0% (6.5%) | | Total risk-based capital | 16.6% | 10.5% (10.0%) | | SoFi Technologies | | | | CET1 risk-based capital | 15.3% | 7.0% (n/a) | | Total risk-based capital | 15.5% | 10.5% (n/a) | Quantitative and Qualitative Disclosures About Market Risk SoFi is exposed to interest rate, credit, counterparty, and operational risks, with its balance sheet being liability-sensitive, indicating net interest income (NII) is expected to increase in a falling rate environment, and a hypothetical 100 basis point decrease in rates estimated to increase NII by $133.2 million over 12 months, while credit risk sensitivity analysis shows a 10% increase in credit loss rates would decrease pre-tax income by $121.1 million Interest Rate Sensitivity Analysis (in thousands, as of March 31, 2025) | Basis Point Change Scenario | Effect on Net Interest Income (12-month) | Change in Fair Value of Assets | | :--- | :--- | :--- | | +200 | $(173,080) | $(1,161,587) | | +100 | $(78,638) | $(616,598) | | -100 | $133,241 | $644,780 | | -200 | $235,920 | $1,320,259 | Credit Risk Sensitivity Analysis (in thousands, as of March 31, 2025) | Scenario | Impact on Income (Loss) Before Income Taxes | | :--- | :--- | | 10% Increase in Credit Loss Rates | $(121,068) | | 10% Decrease in Credit Loss Rates | $121,068 | - The company manages counterparty risk by selecting financially strong partners, diversifying exposure, and using master netting agreements. As of March 31, 2025, gross derivative assets and liabilities subject to netting were $27 thousand and $142.2 million, respectively519 Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, also confirming no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025524 - There were no material changes in internal control over financial reporting during the first quarter of 2025525 PART II – OTHER INFORMATION Legal Proceedings The company states that information regarding legal proceedings is included in Note 14 to the Condensed Consolidated Financial Statements, indicating it is subject to various legal proceedings in the ordinary course of business but does not believe any ultimate liability will have a material adverse effect on its financial position - Information on legal proceedings is cross-referenced to Note 14 of the financial statements526 Risk Factors The company notes no material changes from the risk factors in its 2024 Annual Report on Form 10-K, except for a new risk factor related to the potential incorporation of cryptocurrency into its product offerings, highlighting the complex, evolving, and costly regulatory landscape for cryptocurrencies - A new risk factor has been added concerning the potential offering of cryptocurrency products. This involves navigating complex and changing regulations, which could impose significant operational and cost constraints528529 - Risks associated with cryptocurrency include extreme price volatility, potential classification as securities, and reliance on third-party custodians, which could lead to financial loss and harm the business530531 Other Information This section confirms that during the first quarter of 2025, no company director or officer adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025535