Item 7. 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 consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K. 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 Annual Report on Form 10-K contains forward-looking statements that involve numerous risks and uncertainties, including, but not limited to, those described under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and Part I, Item 1A. “Risk Factors”. 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.

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Business Overview 87
Non-GAAP Financial Measures 89
Key Business Metrics 97
Key Factors Affecting Operating Results 100
Key Components of Results of Operations 103
Consolidated Results of Operations 104
Net Interest Income 105
Noninterest Income 107
Provision for Credit Losses 109
Noninterest Expense 111
Income Taxes 111
Summary Results by Segment 112
Lending Segment 113
Technology Platform Segment 119
Financial Services Segment 120
Corporate/Other Segment 123
Liquidity and Capital Resources 123
Critical Accounting Estimates 129
Recent Accounting Standards Issued, But Not Yet Adopted 132
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Business OverviewWe are a mission driven company designed to help our members achieve financial independence in order to realize their ambitions. 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. 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, one-stop shop for 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 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 February 2025, we expanded our SoFi Plus membership program, which provides a range of benefits across our suite of products including an attractive APY with a SoFi Money account, extra cash back rewards, exclusive rate discounts on loans and more. Members are able to access these membership benefits through a monthly subscription or direct deposit to a checking and savings account.
See Item 1. “Business—Our Reportable Segments” for a discussion of our segments and their corresponding products. The discussion below focuses on the ways in which our key products and services within each reportable segment generate revenues and/or incur expenses for the Company.
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 yielded several milestones in the year, fueling significant member and product growth and paving the way for future growth.
We achieved a number of key financial achievements in the year ended December 31, 2024, including total net revenue of $2.7 billion, representing an increase of 26% over total net revenue in 2023. Diluted earnings per share for the year ended December 31, 2024 was $0.39 compared to a loss per share of $0.36 for the year ended December 31, 2023. Diluted EPS for the 2024 period does not include benefits from the gain on convertible debt exchanges in the first and third quarters of 2024.
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 10.1 million as of December 31, 2024, a 34% year over year increase, while total products reached over 14.7 million as of December 31, 2024, a 32% year over year increase.
Lending segment contribution profit of $890.5 million for the year ended December 31, 2024 increased 8% over 2023. Contribution margin for 2024 and 2023 was 60%. Lending segment performance was driven by an increase in net interest income primarily attributable to higher loan balances in 2024. We recorded an average net interest margin of 5.80% for the year ended December 31, 2024, a decrease of 8 bps, compared to 5.88% in 2023. The decrease in net interest margin for the year ended December 31, 2024 was driven by an increase in average interest-bearing liabilities of 44% and a decrease in yields on interest-earning assets of 7 bps, partially offset by an increase in average interest-earning assets of 38% and a decrease on the average rate paid on interest-bearing liabilities of 17 bps. Origination volume for our Lending products increased 33%, primarily driven by continued strong demand for personal loans and home loans, as well as growth in the student loan business, despite operating in unpredictable macroeconomic headwinds. Student loan demand increased in the latter part of 2023 following the resumption of principal and interest payments on federally-held student loans and we continued to experience increasing student loan demand with interest rate reductions in 2024. Our acquisition of Wyndham in the second quarter of 2023 provided increased capacity and capabilities for our home loans product, which we expect to continue to provide benefits. This contributed to a notable increase in 2024 in home loans alongside further diversification and expansion of our home loan product offerings, such as home equity loans. We expect overall home loans growth could be correlated with interest rate movements in 2025.
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Technology Platform segment contribution profit of $127.0 million for the year ended December 31, 2024 increased 34% over 2023, and total net revenue of $395.2 million for the year ended December 31, 2024 increased 12% over 2023. Technology Platform total enabled client accounts increased 15% year-over-year, to 168 million up from 145 million in the prior year period. Growth was driven primarily by account growth in Latin America, consumer brands in the United States and clients with innovative use cases like earned wage access and money movement, as well as contribution from new clients. Our pipeline of potential clients spans banks, consumer brands, and fintech companies across consumer and B2B segments, which we believe offer larger and more durable revenue. We believe our pipeline of potential new clients is strong, and the investments we have made in this segment have expanded our market opportunity. We continue to make significant strides in our strategy of leveraging our unique product suite to pursue diversified growth and expansion to serve a broad range of clients, including governmental agencies, consumer brands and financial institutions. Entering 2025, we are seeing strong demand from new partners as we signed several notable deals that represent more predictable revenue from larger established brands with higher average deal sizes. We expect modest growth in segment revenue to continue in 2025 and beyond, as implementation and integration cycles from these deals will be gradual and with revenue impacts expected in 2026.
Within our Financial Services segment, contribution profit of $307.0 million for the year ended December 31, 2024 significantly improved compared to a contribution loss of $0.3 million in 2023. Total net revenue of $821.5 million for the year ended December 31, 2024 increased 88% over 2023. We achieved continued strong growth in deposits, ending the year with $26.0 billion of deposits as of December 31, 2024, allowing us to maintain diversified sources of funding and driving an increase in net interest income earned on our deposits. Noninterest income grew 144% from the prior year period to $248.1 million in the current year. This increase was driven by our Loan Platform Business, where we originate loans on behalf of third parties and refer pre-qualified borrowers to origination partners. During the year, the Loan Platform Business generated $141.6 million in loan platform fees, driven by $2.1 billion of personal loans originated on behalf of third parties, as well as referrals. In addition to our Loan Platform business, we continued to see growth in interchange fees driven by increased spend across Money and Credit Card. By continuously innovating with new and relevant offerings, features and rewards for members, we grew total Financial Services products by 34% year-over-year to 12.7 million at year-end. We continue to achieve scale in our marketing spend and improvement in operating leverage in the segment. We expect to continue to scale our Loan Platform Business services and increase our fee-based revenue through increased brand awareness and network effects, and continue to improve contribution profit in the segment.
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.
During 2024, we continued to have strong deposit contribution from direct deposit members. We expect that our funding mix will continue to move towards deposit funding, which generally has a lower borrowing cost of funds than warehouse financing . We also 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. Our total capital ratio, as calculated under applicable regulatory capital rules, was 16.2% as of December 31, 2024. See Note 21. Regulatory Capital to the Notes to Consolidated Financial Statements for additional information.
Lending Segment
Net interest income, which we define as the difference between the earned interest income and interest expense to finance loans, is a key component of the profitability of our Lending segment. Lending segment net interest income represents the difference between interest income earned on our loans and an FTP charge for the segment’s use of funds to originate loans, which can fluctuate based on changes in interest rates, funding curves, the composition of our balance sheet and the availability of capital.
Technology Platform Segment
We earn technology products and solutions fees for providing an integrated platform as a service for financial and non-financial institutions. Many of our Technology Platform segment contracts are multi-year contracts. In certain of our contracts, we provide for a variety of integrated platform services, which vary by client and are either non-cancellable or cancellable with a substantive payment. Pricing structures under these contracts are typically volume-based, or a combination of activity and volume-based, and payment terms are predominantly monthly in arrears. Many of these contracts contain minimum monthly payments, which may result in credits if we do not meet the agreed upon monthly service levels. We also earn subscription and service fees for providing software licenses and associated services, including implementation, maintenance and subsequent
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development work. We charge a recurring subscription fee for the software license and related maintenance services. Other software-related services are billed on a periodic basis as the services are provided. Certain arrangements for software and related services contain a provision for a fixed upfront payment.
Financial Services Segment
We earn revenues in connection with our Financial Services segment primarily in the ways listed below. See Note 20. Business Segment and Geographic Information and Note 3. Revenue to the Notes to 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 36% of our total Financial Services noninterest income for the year ended December 31, 2024.
•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 24% of our total Financial Services noninterest income for the year ended December 31, 2024.
•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 27% of our total Financial Services noninterest income for the year ended December 31, 2024.
•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 9% of our total Financial Services noninterest income for the year ended December 31, 2024.
Non-GAAP Financial MeasuresThis Annual Report on Form 10-K 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.
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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.

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:

                                                                                                                                                            Year Ended December 31,

($ in thousands) 2024 2023 2022
Total net revenue (GAAP) $2,674,859 $2,122,789 $1,573,535
Servicing rights – change in valuation inputs or assumptions(1) (6,280) (34,700) (39,651)
Residual interests classified as debt – change in valuation inputs or assumptions(2) 108 425 6,608
Gain on extinguishment of debt(3) (62,517) (14,574) —
Adjusted net revenue (non-GAAP) $2,606,170 $2,073,940 $1,540,492

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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.
(3)Reflects gain on extinguishment of debt. Gains and losses are recognized during the period of extinguishment for the difference between the net carrying amount of debt extinguished and the fair value of equity securities issued.
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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) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
Total net revenue (GAAP) $734,125 $697,121 $598,618 $644,995 $615,404 $537,209 $498,018 $472,158
Servicing rights – change in valuation inputs or assumptions(1) 4,962 (4,362) (1,654) (5,226) (6,595) (7,420) (8,601) (12,084)
Residual interests classified as debt – change in valuation inputs or assumptions(2) 25 9 1 73 10 928 (602) 89
Gain on extinguishment of debt(3) — (3,323) — (59,194) (14,574) — — —
Adjusted net revenue (non-GAAP) $739,112 $689,445 $596,965 $580,648 $594,245 $530,717 $488,815 $460,163

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(1)See footnote (1) to the table above.
(2)See footnote (2) to the table above.
(3)See footnote (3) to the table above.
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:

                                                                                                                                                            Year Ended December 31,

($ in thousands) 2024 2023 2022
Total net revenue – Lending (GAAP) $1,485,222 $1,370,621 $1,139,991
Servicing rights – change in valuation inputs or assumptions(1) (6,280) (34,700) (39,651)
Residual interests classified as debt – change in valuation inputs or assumptions(2) 108 425 6,608
Adjusted net revenue – Lending (non-GAAP) $1,479,050 $1,336,346 $1,106,948

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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 (loss) 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 (loss) 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 (loss), 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.
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The following table presents a reconciliation of adjusted contribution margin and incremental adjusted contribution margin for our reportable Lending segment:
Year Ended December 31, 2024 vs 2023 2023 vs 2022
($ in thousands) 2024 2023 2022 $ Change $ Change
Lending
Contribution profit – Lending (GAAP) $890,543 $823,273 $664,003 $67,270 $159,270
Net revenue – Lending (GAAP) 1,485,222 1,370,621 1,139,991 114,601 230,630
Contribution margin – Lending (GAAP)(1) 60 % 60 % 58 %
Incremental contribution margin – Lending (GAAP)(1) 59 % 69 %
Adjusted net revenue – Lending (non-GAAP)(2) $1,479,050 $1,336,346 $1,106,948 $142,704 $229,398
Adjusted contribution margin – Lending (non-GAAP) 60 % 62 % 60 %
Incremental adjusted contribution margin – Lending (non-GAAP) 47 % 69 %

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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 (loss), 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, (iv) share-based expense (inclusive of equity-based payments to non-employees), (v) restructuring charges, (vi) impairment expense (inclusive of goodwill impairment and property, equipment and software abandonments), (vii) transaction-related expenses, (viii) foreign currency impacts related to operations in highly inflationary countries, (ix) fair value changes in each of servicing rights and residual interests classified as debt due to valuation assumptions, (x) gain on extinguishment of debt, and (xi) other charges, as appropriate, that are not expected to recur and are not indicative of our core operating performance.
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.
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Net Income (Loss) and Adjusted EBITDA
In Thousands

The following table reconciles adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, and presents the computations of adjusted EBITDA margin and incremental adjusted EBITDA margin:

                                                                                                                                                            Year Ended December 31,                  2024 vs 2023         2023 vs 2022

($ in thousands) 2024 2023 2022 $ Change $ Change
Net income (loss) (GAAP) $498,665 $(300,742) $(320,407) $799,407 $19,665
Non-GAAP adjustments:
Interest expense – corporate borrowings(1) 48,346 36,833 18,438 11,513 18,395
Income tax (benefit) expense(2) (265,320) (416) 1,686 (264,904) (2,102)
Depreciation and amortization(3) 203,498 201,416 151,360 2,082 50,056
Share-based expense 246,152 271,216 305,994 (25,064) (34,778)
Restructuring charges(4) 1,530 12,749 — (11,219) 12,749
Impairment expense(5) — 248,417 — (248,417) 248,417
Foreign currency impact of highly inflationary subsidiaries(6) 1,683 10,971 — (9,288) 10,971
Transaction-related expense(7) 615 142 19,318 473 (19,176)
Servicing rights – change in valuation inputs or assumptions(8) (6,280) (34,700) (39,651) 28,420 4,951
Residual interests classified as debt – change in valuation inputs or assumptions(9) 108 425 6,608 (317) (6,183)
Gain on extinguishment of debt(10) (62,517) (14,574) — (47,943) (14,574)
Total adjustments 167,815 732,479 463,753 (564,664) 268,726
Adjusted EBITDA (non-GAAP) $666,480 $431,737 $143,346 $234,743 $288,391
Total net revenue (GAAP) $2,674,859 $2,122,789 $1,573,535 $552,070 $549,254
Net income (loss) margin (GAAP) 19 % (14) % (20) %
Incremental net income (loss) margin (GAAP) 145 % 4 %
Adjusted net revenue (non-GAAP)(11) $2,606,170 $2,073,940 $1,540,492 $532,230 $533,448
Adjusted EBITDA margin (non-GAAP) 26 % 21 % 9 %
Incremental adjusted EBITDA margin (non-GAAP) 44 % 54 %

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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
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debt issuance costs on our convertible notes. Revolving credit facility interest expense in 2024 and 2023 increased due to elevated average interest rates relative to the prior year on identical outstanding debt. Convertible note interest expense in 2024 increased related to the issuance of interest-bearing convertible senior notes during the first quarter of 2024.
(2)Our income tax position in 2024 was primarily due to the release in the fourth quarter of a $258 million valuation allowance against certain deferred tax assets based on our reassessment of their realizability. Income taxes in 2023 were primarily attributable to income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to Technisys, offset by income tax expense associated with the profitability of SoFi Bank in state jurisdictions where separate filings are required, as well as federal taxes where our tax credits and loss carryforwards may be limited. Income taxes in 2022 were primarily attributable to tax expense at SoFi Lending Corp and SoFi Bank due to profitability in state jurisdictions where separate filings are required and recognition of expense from Technisys in certain Latin American countries where separate returns are filed. The expense was partially offset by deferred tax benefits from the amortization of intangible assets acquired in the Technisys Merger. See Note 17. Income Taxes to the Notes to Consolidated Financial Statements for additional information.
(3)Depreciation and amortization expense in 2024 was primarily related to our internally-developed software and intangibles. Depreciation and amortization expense in 2023 increased compared to 2022 primarily in connection with acquisitions and growth in our internally-developed software balance.
(4)Restructuring charges in 2024 relate to legal entity restructuring. Restructuring charges in 2023 primarily included employee-related wages, benefits and severance associated with a small reduction in headcount in our Technology Platform segment in the first quarter of 2023 and expenses in the fourth quarter of 2023 related to a reduction in headcount across the Company, which do not reflect expected future operating expenses and are not indicative of our core operating performance.
(5)Impairment expense in 2023 includes $247,174 related to goodwill impairment, and $1,243 related to a sublease arrangement, which are not indicative of our core operating performance. See Note 8. Goodwill and Intangible Assets to the Notes to Consolidated Financial Statements for additional information on goodwill impairment.
(6)Foreign currency charges reflect the impacts of highly inflationary accounting for our operations in Argentina, which are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger. For the year ended December 31, 2023, all amounts were reflected in the fourth quarter, as inter-quarter amounts were determined to be immaterial. Amounts in 2022 were determined to be immaterial.
(7)Transaction-related expenses in 2024 and 2023 included financial advisory and professional services costs associated with our acquisition of Wyndham. Transaction-related expenses in 2022 primarily included financial advisory and professional services costs associated with our acquisition of Technisys.
(8)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 (loss) to provide management and financial users with better visibility into the earnings available to finance our operations.
(9)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 (loss) to provide management and financial users with better visibility into the earnings available to finance our operations.
(10)Reflects gain on extinguishment of debt. Gains and losses are recognized during the period of extinguishment for the difference between the net carrying amount of debt extinguished and the fair value of equity securities issued.
(11)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 (loss), the most directly comparable GAAP measure, for the quarterly periods presented:

                                                                                                                                                                                                                                                                                                                                        Quarter Ended

($ in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
Net income (loss) (GAAP) $332,473 $60,745 $17,404 $88,043 $47,913 $(266,684) $(47,549) $(34,422)
Non-GAAP adjustments:
Interest expense – corporate borrowings 12,039 12,871 12,725 10,711 9,882 9,784 9,167 8,000
Income tax (benefit) expense (272,549) 3,110 (2,064) 6,183 3,245 (244) (1,780) (1,637)
Depreciation and amortization 53,545 51,791 49,623 48,539 53,449 52,516 50,130 45,321
Share-based expense 66,367 63,646 61,057 55,082 69,107 62,005 75,878 64,226
Restructuring charges 255 1,275 — — 7,796 — — 4,953
Impairment expense — — — — — 247,174 — 1,243
Foreign currency impact of highly inflationary subsidiaries 840 475 194 174 10,971 — — —
Transaction-related expense — — 615 — — (34) 176 —
Servicing rights – change in valuation inputs or assumptions 4,962 (4,362) (1,654) (5,226) (6,595) (7,420) (8,601) (12,084)
Residual interests classified as debt – change in valuation inputs or assumptions 25 9 1 73 10 928 (602) 89
Gain on extinguishment of debt — (3,323) — (59,194) (14,574) — — —
Total adjustments (134,516) 125,492 120,497 56,342 133,291 364,709 124,368 110,111
Adjusted EBITDA (non-GAAP) $197,957 $186,237 $137,901 $144,385 $181,204 $98,025 $76,819 $75,689
Total net revenue (GAAP) $734,125 $697,121 $598,618 $644,995 $615,404 $537,209 $498,018 $472,158
Net income (loss) margin (GAAP) 45 % 9 % 3 % 14 % 8 % (50) % (10) % (7) %
Adjusted net revenue (non-GAAP) $739,112 $689,445 $596,965 $580,648 $594,245 $530,717 $488,815 $460,163
Adjusted EBITDA margin (non-GAAP) 27 % 27 % 23 % 25 % 30 % 18 % 16 % 16 %
Adjusted Net Income (Loss), Adjusted Net Income Margin, Incremental Adjusted Net Income Margin and Adjusted EPS
Adjusted net income (loss), adjusted net income margin, incremental adjusted net income margin and adjusted diluted earnings (loss) are non-GAAP measures. Adjusted net income (loss) is defined as net income (loss), 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 (loss) per share (“adjusted EPS”) is a non-GAAP financial measure that adjusts GAAP diluted earnings (loss) per share. Adjusted EPS is computed by dividing net income (loss) 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.
Adjusted net income margin is computed as adjusted net income (loss) divided by adjusted net revenue. Incremental adjusted net income margin is defined as the change in adjusted net income (loss), 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 (loss), 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 (loss) to net income (loss), the most directly comparable GAAP measure, (ii) reconciles adjusted EPS to diluted earnings (loss) per share, the most directly comparable GAAP measure, and (iii) presents the computations of adjusted net income margin and incremental adjusted net income margin.

                                                                                                                                                         Year Ended December 31,         2024 vs 2023         2023 vs 2022

($ and shares in thousands, except per share amounts) 2024 2023 2022 $ Change $ Change
Net income (loss) (GAAP) $498,665 $(300,742) $(320,407) $799,407 $19,665
Non-GAAP adjustments:
Income tax benefit from release of tax valuation allowance (258,401) — — (258,401) —
Income tax benefit from restructuring (13,042) — — (13,042) —
Goodwill impairment expense — 247,174 — (247,174) 247,174
Adjusted net income (loss) (non-GAAP) $227,222 $(53,568) $(320,407) $280,790 $266,839
Numerator:
Net income (loss) attributable to common stockholders – diluted (GAAP)(1) $434,776 $(341,167) $(360,832)
Non-GAAP adjustments:
Income tax benefit from release of tax valuation allowance (258,401) — —
Income tax benefit from restructuring (13,042) — —
Goodwill impairment expense — 247,174 —
Adjusted net income (loss) attributable to common stockholders – diluted (non-GAAP) $163,333 $(93,993) $(360,832)
Denominator:
Weighted average common stock outstanding – diluted 1,101,390 945,024 900,886
Earnings (loss) per share – diluted (GAAP)(1) $0.39 $(0.36) $(0.40)
Impact of adjustments per share (0.24) 0.26 —
Adjusted earnings (loss) per share – diluted (non-GAAP)(1) $0.15 $(0.10) $(0.40)
Net income (loss) margin (GAAP) 19 % (14) % (20) %
Adjusted net revenue (non-GAAP)(2) $2,606,170 $2,073,940 $1,540,492
Adjusted net income margin (non-GAAP) 9 % (3) % (21) %
Incremental adjusted net income margin (non-GAAP) 53 % 50 %

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(1)For the year ended December 31, 2024, 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.
(2)Refer to 'Adjusted Net Revenue' above for reconciliation of this non-GAAP measure.
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Key Business MetricsThe table below presents the key business metrics that management uses to evaluate our business, measure our performance, identify trends and make strategic decisions:

                                                                                                                       December 31,                                   2024 vs. 2023                                   2023 vs. 2022
                                                  2024                        2023                        2022                                  Variance                   % Change             Variance                   % Change

Members 10,127,323 7,541,860 5,222,533 2,585,463 34 % 2,319,327 44 %
Total Products(1) 14,745,435 11,142,476 7,894,636 3,602,959 32 % 3,247,840 41 %
Total Products — Lending segment 2,010,354 1,663,006 1,340,597 347,348 21 % 322,409 24 %
Total Products — Financial Services segment(1) 12,735,081 9,479,470 6,554,039 3,255,611 34 % 2,925,431 45 %
Total Accounts — Technology Platform segment 167,713,818 145,425,391 130,704,351 22,288,427 15 % 14,721,040 11 %

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(1)In the fourth quarter of 2023, we transferred the crypto services provided by SoFi Digital Assets, LLC, and began closing existing digital assets accounts and removing the account from Invest products. This process was completed in the first quarter of 2024. As of December 31, 2023, SoFi Invest products included 265,595 digital assets accounts. Excluding these accounts (that were closed as part of the transfer of the crypto services), total products increased by 3,868,554, or 36%, and total financial services products increased by 3,521,206, or 38%, during the year ended December 31, 2024 .
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 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. Beginning in the first quarter of 2024, we aligned our methodology for calculating member and product metrics with our member and product definitions to include co-borrowers, co-signers, and joint- and co-account holders, as applicable. Quarterly amounts for prior periods were determined to be immaterial and were not recast.
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.
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Since our inception through December 31, 2024, we have served approximately 10.1 million members who have used approximately 14.7 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 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 and SoFi Relay accounts (with either credit score monitoring enabled or external linked 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 two products: active investing accounts and robo-advisory accounts. Our members can select any one or combination of the types of SoFi Invest products. If a member has multiple SoFi Invest products of the same account type, such as two active investing accounts, that is counted as a single product. However, if a member has multiple SoFi Invest products across account types, such as one active investing account and one robo-advisory account, those separate account types 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.
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Products
In Thousands

Total lending products were composed of the following:

                                                                                         December 31,                               2024 vs. 2023                               2023 vs. 2022

Lending Products 2024 2023 2022 Variance % Change Variance % Change
Personal loans(1) 1,405,928 1,113,864 837,462 292,064 26 % 276,402 33 %
Student loans 568,612 519,489 477,132 49,123 9 % 42,357 9 %
Home loans 35,814 29,653 26,003 6,161 21 % 3,650 14 %
Total lending products 2,010,354 1,663,006 1,340,597 347,348 21 % 322,409 24 %

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(1)Includes loans which we originate as part of our Loan Platform Business.
Total financial services products were composed of the following:

                                                                                                          December 31,                                 2024 vs. 2023                                 2023 vs. 2022

Financial Services Products 2024 2023 2022 Variance % Change Variance % Change
Money(1) 5,094,785 3,374,310 2,195,402 1,720,475 51 % 1,178,908 54 %
Invest(2) 2,525,059 2,380,641 2,158,864 144,418 6 % 221,777 10 %
Credit Card 279,360 245,385 171,425 33,975 14 % 73,960 43 %
Referred loans(3) 85,205 55,231 40,980 29,974 54 % 14,251 35 %
Relay 4,636,755 3,336,868 1,921,986 1,299,887 39 % 1,414,882 74 %
At Work 113,917 87,035 65,382 26,882 31 % 21,653 33 %
Total financial services products(2) 12,735,081 9,479,470 6,554,039 3,255,611 34 % 2,925,431 45 %

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(1)Includes checking and savings accounts held at SoFi Bank, and cash management accounts.
(2)In the fourth quarter of 2023, we transferred the crypto services provided by SoFi Digital Assets, LLC, and began closing existing digital assets accounts and removing the account from Invest products. This process was completed in the first quarter of 2024. As of December 31, 2023, SoFi Invest products included 265,595 digital assets accounts. Excluding these accounts (that were closed as part of the transfer of the crypto services), total products increased by 3,868,554, or 36%, and total financial services products increased by 3,521,206, or 38%, during the year ended December 31, 2024.
(3)Limited to loans wherein we provide third party fulfillment services as part of our Loan Platform Business.
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 20. Business Segment and Geographic Information to the Notes to 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
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Technology Platform segment. We do not measure total accounts for the Technisys products and solutions, as the revenue model is not primarily dependent upon being a fully integrated, stand-ready service.

Technology Platform Accounts
In Millions

                                                                                      December 31,                 2024 vs. 2023                 2023 vs. 2022
                 2024                        2023                        2022                                           % Change                      % Change

Total accounts 167,713,818 145,425,391 130,704,351 15 % 11 %
Key Factors Affecting Operating ResultsOur 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.
Origination Volume
Our Lending segment is our largest segment, comprising 56%, 65% and 72% of total net revenue during the years ended December 31, 2024, 2023 and 2022, respectively. We are dependent upon the addition of new members and new activity from existing members to generate origination volume, which we believe is a contributor to Lending segment net revenue. We believe we have a high-quality loan portfolio, as indicated by our Lending segment weighted average origination FICO score of 750 during the year ended December 31, 2024.
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. Revenue from the Loan Platform Business is fee-based.
See “Industry Trends and General Economic Conditions” for the impact of specific economic factors on origination volume.
Member Growth and Activity
We have invested heavily in our platform and are dependent on continued member growth, as well as our ability to generate additional revenues from our existing members using additional products and services. Member growth and activity is critical to our ability to increase our scale and earn a return on our technology and product investments. Growth in members and member activity will depend heavily on our ability to continue to offer attractive products and services at sustainable costs and our continued member acquisition and marketing efforts.
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Product Offerings
Our aim is to develop and offer a best-in-class integrated financial services platform with products that meet the broad objectives of our members and the lifecycle of their financial needs. We have invested, and continue to invest, heavily in the development, improvement and marketing of our suite of lending and financial services products and are dependent on continued growth in the number of products selected by our members, as well as our ability to build trust and reliability between our members and our platform to reinforce the effects of the Financial Services Productivity Loop. In order to deliver on our strategy, we aim to foster positive member experiences designed to lead to more product adoption by existing members, leading to enhanced profitability for each additional product by lowering overall member acquisition costs.
Galileo Account Growth
Galileo primarily provides technology platform services to financial and non-financial institutions, which enabled us to diversify our business from a primarily consumer-based business to also serve enterprises that rely upon Galileo’s integrated platform as a service to serve their clients. We are dependent on growth in the number of accounts at Galileo, which is an indication of the amount of users that are dependent upon the technology platform for a variety of products and services, including virtual card products, virtual wallets, peer-to-peer and bank-to-bank transfers, early paychecks and relying on real-time authorizations, all of which generate revenue for Galileo.
Operating as a Bank
A key element of our long-term strategy included securing a national bank charter, which we acquired in the first quarter of 2022 and began operating SoFi Bank (formerly Golden Pacific), and SoFi Technologies became a bank holding company. Operating as a bank allows for expanded access to multiple channels of funding, including deposits through SoFi Bank and borrowing capacity through the FHLB and Federal Reserve, which 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. Since acquiring our bank license, we have shifted and continue to expect our funding mix to move towards deposit funding, which generally has a lower cost of funds than warehouse financing.
See Part I, Item 1. “Company Overview—SoFi Bank” and “Government Supervision and Regulation” for a discussion of the key expected financial benefits to us of operating a national bank and discussion of supervision and regulation that we are subject to. See Part I, Item 1A. “Risk Factors” for discussion of certain potential risks related to being a bank holding company.
Industry Trends and General Economic Conditions
Our results of operations have historically been relatively resilient to economic downturns but in the future may be impacted by the relative strength of the overall economy and its effect on unemployment, asset markets and consumer spending. As general economic conditions improve or deteriorate, the amount of consumer disposable income tends to fluctuate, which in turn impacts consumer spending levels and the willingness of consumers to take out loans to finance purchases or invest in financial assets. Specific economic factors, such as interest rate levels, changes in monetary and related policies, unemployment rates, market volatility, consumer confidence and changing expectations for inflation, also influence consumer spending, saving, investing and borrowing patterns.
The Federal Reserve decreased the benchmark interest rate in September, November and December 2024, and additional rate cuts are anticipated by many financial market participants in 2025, although the timing of such cuts, if any, remains uncertain. We have continued to see strong demand for our deposits as a result of our competitive interest rate offering and access to expanded FDIC insurance coverage through a network of participating banks in our Insured Deposit Program. High or rising interest rates have unfavorably impacted, and could continue to unfavorably impact, demand for refinancing loan products. In addition, if the Federal Reserve does not effectively curb inflation, interest rates were to rise unexpectedly or too quickly, or macroeconomic conditions deteriorate or do not improve, it could have a negative impact on the overall economy and result in increased unemployment, which could adversely impact our results of operations. In addition to benchmark interest rate considerations, economic and market volatility may adversely impact our liquidity, results of operations and financial condition. Our increased personal loan annualized charge-off rate year over year was reflective of our expectation of credit metrics to revert over time to more normalized levels, but remains healthy, while our lower credit card annualized charge-off rate was reflective of improvement in credit card delinquency rates. Negative changes to macroeconomic conditions may result in decreased demand for our products, increased operating costs and negatively impact our results of operations.
Fair Value of Loans
We 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
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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
                                                     December 31,                    September 30,                  December 31,                    September 30,
                                                             2024                             2024                          2024                             2024

Weighted average coupon rate(1) 13.4 % 13.5 % 5.9 % 5.9 %
Weighted average annual default rate 4.5 % 4.5 % 0.7 % 0.7 %
Weighted average conditional prepayment rate 26.0 % 26.1 % 11.0 % 10.7 %
Weighted average discount rate 5.29 % 4.78 % 4.40 % 3.99 %

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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.
As of the fourth quarter of 2024 relative to the third quarter of 2024, we observed the following trends:
•The weighted average coupon rates on personal loans decreased by 10 bps, which reflects the impacts of loan sales and rate reduction passed on to borrowers related to drops during the fourth quarter. The weighted average coupon rates on student loans increased 4 bps, which reflects the impacts of loan sales.
•The weighted average conditional prepayment rate on student loans increased by 28 bps, which reflects increases in observed prepayments during the fourth quarter.
•The weighted average discount rates on personal loans and student loans increased by 51 bps and 41, respectively. For personal loans, our discount rate assumptions increased in the fourth quarter due to benchmark interest rates increasing by 63 bps, partially offset by spreads tightening by 12 bps. For student loans, our discount rate assumptions increased in the fourth quarter due to benchmark interest rates increasing by 76 bps, partially offset by credit spreads tightening by 35 bps. Credit spread changes are indicated by asset-backed security and secondary markets.
•Annualized net charge-off rates on personal loans in the fourth quarter of 2024 were 3.37%, which remained lower than the assumed weighted average default rates in our fair value model of 4.55%. Personal loan charge-offs during the third and fourth quarters of 2024 were impacted by delinquent loan sales of $81.0 million and $90.0 million, respectively, of aggregate unpaid principal balance. Annualized net charge-off rates on student loans in the fourth quarter of 2024 of 0.62% were lower than the assumed weighted average default rates in our fair value model of 0.73%. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30 days, 60 days and 90 days past due.
The combination of these and other factors resulted in fair value losses recognized on our personal and student loans portfolios during the fourth quarter of 2024.
Student Loan Relief
While we expect we may continue to see an increase in student loan refinancing volume as borrowers may look to refinance at a lower rate as interest rates decline or, given the high interest rate environment compared to recent historical periods, may look to extend the loan term, the timing and impact to our student loan refinancing product will largely depend on expectations regarding the impact of the recent change in the U.S. presidential administration, the interest rate environment, how competitive our student loan refinancing products are compared to our competitors and macroeconomic factors. 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 that were put forward by the Biden administration. Although we can’t predict the measures related to student loans, if any, that the Trump administration may pursue, any changes in law, regulations or governmental policies could impact our business in ways that are difficult to predict.
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Key Components of Results of OperationsNet Interest Income
Net interest income primarily reflects the excess of interest income earned on our loans over the interest expense incurred to fund such loans. Net interest income is impacted by loan origination volume, the level of securitization activity, the amount of time we hold loans on our consolidated balance sheet and the volume of member deposits, as well as prevailing interest rates, which impact the rates we receive on our loans and securitization-related investments in bonds and residual interest positions, and the rates we incur from our funding sources including our warehouse facilities, securitization debt and member deposits at SoFi Bank. We also incur interest expense related to our revolving credit facility and convertible notes, as well as on our convertible notes in the form of amortization of debt issuance costs and original issue discount.
Noninterest Income
Noninterest income primarily consists of: (i) fee-based revenue recognized from contracts with customers, which primarily relates to our technology products and solutions revenues and the growth and expansion of our financial services offerings, inclusive of referral fees generated through our Loan Platform Business for providing pre-qualified borrower referrals (referred loans) to be originated by a third-party partner, (ii) fees earned upon the sale of loans originated on behalf of third party partners through our Loan Platform Business, (iii) loan origination fees, whereby a borrower may optionally elect to pay origination fees to qualify for a lower annual percentage rate, (iv) fair value changes in loans while we hold them on our consolidated balance sheet and our securitization activities, inclusive of our hedging activities, (v) gains on sales of loans transferred into the securitization or whole loan sale channels, (vi) the income we receive from our loan servicing activities, as well as the assumption of servicing rights from third parties, (vii) gains and losses on non-securitization investments, and (viii) gains and losses on extinguishment of debt.
Noninterest Expense
Noninterest expense primarily relates to the following categories of expenses: (i) technology and product development, (ii) sales and marketing, (iii) cost of operations, and (iv) general and administrative. Certain costs are included within each of these line items, such as compensation and benefits-related expense (inclusive of share-based compensation expense), professional services, depreciation and amortization, and occupancy-related costs. We allocate certain costs to each of these categories based on department-level headcounts. We generally expect these expenses to increase in absolute dollars as our business continues to grow. Noninterest expense also includes goodwill impairment, related to the Galileo and Technisys reporting units.
Directly Attributable Expenses
As presented within “Summary Results by Segment”, in our determination of the contribution profit (loss) for our reportable segments, we allocate certain expenses that are directly attributable to the segment. Directly attributable expenses primarily include compensation and benefits and sales and marketing, inclusive of member incentives, and vary based on the amount of activity within each segment. Directly attributable expenses also include loan origination and servicing expenses, professional services, product fulfillment and lead generation. Expenses are attributed to the reportable segments using either direct costs of the segment or labor costs that can be attributed based upon the allocation of employee time for individual products.
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Consolidated Results of OperationsThe following table sets forth selected consolidated statements of income data:

                                                                                                         Year Ended December 31,                                 2024 vs. 2023                                          2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Net interest income $1,716,481 $1,261,740 $584,096 $454,741 36 % $677,644 116 %
Total noninterest income 958,378 861,049 989,439 97,329 11 % (128,390) (13) %
Total net revenue 2,674,859 2,122,789 1,573,535 552,070 26 % 549,254 35 %
Provision for credit losses(1) 31,712 54,945 54,332 (23,233) (42) % 613 1 %
Total noninterest expense(1) 2,409,802 2,369,002 1,837,924 40,800 2 % 531,078 29 %
Income (loss) before income taxes 233,345 (301,158) (318,721) 534,503 n/m 17,563 (6) %
Income tax benefit (expense) 265,320 416 (1,686) 264,904 n/m 2,102 n/m
Net income (loss) $498,665 $(300,742) $(320,407) $799,407 n/m $19,665 (6) %

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(1)In the fourth quarter of 2024, we made a presentation change to present the provision for credit losses below total net revenue and above total noninterest expense, from its previous presentation within total noninterest expense. Respective prior period amounts were recast to conform to the current period presentation.
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Net Interest Income
The tables below present 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.
Average Balances and Net Interest Earnings Analysis

                                                                                                                                                                                                                                                                                                                        Year Ended December 31,
                                                           2024                                                                                                                                                                               2023                                                                                         2022

($ in thousands) Average Balances(1) Interest Income/Expense Average Yield/Rate Average Balances(1) Interest Income/Expense Average Yield/Rate Average Balances(1) Interest Income/Expense Average Yield/Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks $2,814,098 $133,686 4.75 % $2,172,013 $91,312 4.20 % $1,122,364 $10,841 0.97 %
Investment securities 1,412,821 79,338 5.62 541,590 25,096 4.63 494,005 12,542 2.54
Loans 25,360,067 2,594,793 10.23 18,733,812 1,934,659 10.33 9,200,023 749,071 8.14
Total interest-earning assets 29,586,986 2,807,817 9.49 21,447,415 2,051,067 9.56 10,816,392 772,454 7.14
Total noninterest-earning assets 3,305,102 3,055,580 2,812,054
Total assets $32,892,088 $24,502,995 $13,628,446
Liabilities, Temporary Equity and Permanent Equity
Interest-bearing liabilities:
Demand deposits $2,167,328 $45,117 2.08 % $2,214,794 $51,673 2.33 % $1,336,006 $21,814 1.63 %
Savings deposits 18,385,550 782,205 4.25 8,481,895 359,444 4.24 1,403,750 31,045 2.21
Time deposits 2,060,959 102,832 4.99 1,958,002 96,703 4.94 281,633 6,934 2.46
Total interest-bearing deposits 22,613,837 930,154 4.11 12,654,691 507,820 4.01 3,021,389 59,793 1.98
Warehouse facilities 1,555,603 97,781 6.29 3,142,096 192,987 6.14 2,378,935 71,717 3.01
Securitization debt 188,855 7,197 3.81 751,869 36,853 4.90 593,824 22,507 3.79
Other debt(2) 1,782,732 56,204 3.15 1,638,748 51,526 3.14 1,575,027 30,618 1.94
Total debt 3,527,190 161,182 4.57 5,532,713 281,366 5.09 4,547,786 124,842 2.75
Residual interests classified as debt 2,495 — — 12,301 141 1.15 57,510 3,723 6.47
Total interest-bearing liabilities 26,143,522 1,091,336 4.17 18,199,705 789,327 4.34 7,626,685 188,358 2.47
Total noninterest-bearing liabilities 753,979 757,070 657,314
Total liabilities 26,897,501 18,956,775 8,283,999
Total temporary equity 123,221 320,374 320,374
Total permanent equity 5,871,366 5,225,846 5,024,073
Total liabilities, temporary equity and permanent equity $32,892,088 $24,502,995 $13,628,446
Net interest income(3) $1,716,481 $1,261,740 $584,096
Net interest margin(4) 5.80 % 5.88 % 5.40 %

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(1)Average balances were calculated on daily carrying balances for the 2024 and 2023 periods, and on thirteen-month ending carrying balances for the 2022 period, as the daily analysis in the prior periods would have involved undue burden. Both average calculations are representative of our operations.
(2)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.
(3)Net interest income is calculated as the excess of total interest income on interest-earning assets over total interest expense on interest-bearing liabilities.
(4)Net interest margin is calculated as net interest income divided by total average interest-earning assets.
2024 vs. 2023. Net interest income increased by $454.7 million, or 36%, during the year ended December 31, 2024 compared to the year ended December 31, 2023, and net interest margin decreased by 8 basis points. Average interest-earning assets increased by 38% and average yields decreased by 7 basis points overall, while average interest-bearing liabilities increased by 44% and the average cost of interest-bearing liabilities decreased by 17 basis points.
The increases in net interest income were primarily driven by (i) higher interest income from personal loans and student loans of $602.1 million, which was primarily a function of increases in the average balance and origination volume, as
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well as longer loan holding periods, (ii) higher interest income from investment securities of $54.2 million primarily attributable to higher average balances, (iii) higher interest income from interest-bearing deposits with banks of $42.4 million, primarily attributed to higher average balances, and (iv) lower interest expense on warehouse facilities and securitizations of $124.9 million primarily attributable to lower average balances, which is reflective of our continued funding mix shift towards deposit funding. These items were partially offset by higher interest expense on deposits of $422.3 million primarily attributable to higher average balances.
2023 vs. 2022. Net interest income increased by $677.6 million, or 116%, during the year ended December 31, 2023 compared to the year ended December 31, 2022, and net interest margin increased by 48 basis points. The increases were primarily driven by higher interest income from (i) personal loans, which was primarily a function of increases in the average balance and origination volume, as well as longer loan holding periods for both personal and student loans, and (ii) interest-bearing deposits with banks, which reflected our strong liquidity position in a rising interest rate environment. Average interest-earning assets increased by 98%, and average yields increased by 242 basis points.
These increases were partially offset by higher interest expense on deposits attributable to a higher average balance and higher interest rates offered to our members, and higher interest expense on warehouse facilities attributable to a higher average balance and higher interest rates incurred on our facilities, all of which are reflective of the higher interest rate environment year over year.
Analysis of Changes in Net Interest Income
The following table presents year-over-year 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:

                                                                                                                  2024 vs. 2023                                                                                2023 vs. 2022
                                                                                       Increase (Decrease) Due to Change in(1):                                                     Increase (Decrease) Due to Change in(1):

($ in thousands) Volume Rate Total Variance Volume Rate Total Variance
Interest income:
Interest-bearing deposits with banks $30,503 $11,871 $42,374 $44,128 $36,343 $80,471
Investment securities 48,924 5,318 54,242 2,205 10,349 12,554
Loans 677,986 (17,852) 660,134 984,564 201,024 1,185,588
Total interest income $757,413 $(663) $756,750 $1,030,897 $247,716 $1,278,613
Interest expense:
Interest-bearing deposits $425,495 $(3,161) $422,334 $386,575 $61,452 $448,027
Debt (116,639) (3,545) (120,184) 50,088 106,436 156,524
Residual interests classified as debt — (141) (141) (519) (3,063) (3,582)
Total interest expense $308,856 $(6,847) $302,009 $436,144 $164,825 $600,969
Net interest income $448,557 $6,184 $454,741 $594,753 $82,891 $677,644

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(1)We calculate the change 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.
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Loan Maturity Schedule
The following table presents the maturities of our loan portfolio, as well as the separate presentation of the total amount of loans in each loan category that are due after one year that have variable rates and fixed rates:

                                                     As of December 31, 2024(1)                                                                                                                                                  

($ in thousands) Within 1 year After 1 year through 5 years After 5 years through 15 years After 15 years Total
Loan Portfolio:
Personal loans $386,485 $13,128,259 $3,074,879 $— $16,589,623
Student loans 4,941 1,222,684 4,951,901 2,036,103 8,215,629
Home loans — — 10,963 138,899 149,862
Secured loans — 360,940 443,860 — 804,800
Credit card(2) 328,472 — — — 328,472
Commercial and consumer banking 2,654 3,056 11,284 135,644 152,638
Total loans $722,552 $14,714,939 $8,492,887 $2,310,646 $26,241,024
Loans with variable rates:
Personal loans $308 $— $— $308
Student loans 10,565 83,633 18,626 112,824
Commercial and consumer banking 351 5,566 126,320 132,237
Total loans $11,224 $89,199 $144,946 $245,369
Loans with fixed rates:
Personal loans $13,127,951 $3,074,879 $— $16,202,830
Student loans 1,212,119 4,868,268 2,017,477 8,097,864
Home loans — 10,963 138,899 149,862
Secured loans 360,940 443,860 — 804,800
Commercial and consumer banking 2,705 5,718 9,324 17,747
Total loans $14,703,715 $8,403,688 $2,165,700 $25,273,103

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(1)Maturities presented are based upon the contractual terms of the loans. Amounts represent unpaid principal balance of loans outstanding at period end.
(2)Due to the revolving nature of credit cards, we report all of our credit card balances as due within one year.
Noninterest Income
The following table presents the components of our total noninterest income:

                                                                                                            Year Ended December 31,                                   2024 vs. 2023                                   2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Loan origination, sales, and securitizations $255,870 $371,812 $565,372 $(115,942) (31) % $(193,560) (34) %
Servicing 22,244 37,328 43,547 (15,084) (40) % (6,219) (14) %
Technology products and solutions 350,810 323,972 304,901 26,838 8 % 19,071 6 %
Loan platform fees 141,608 33,602 31,540 108,006 321 % 2,062 7 %
Other 187,846 94,335 44,079 93,511 99 % 50,256 114 %
Total noninterest income $958,378 $861,049 $989,439 $97,329 11 % $(128,390) (13) %
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Loan Platform Business
The following table presents the components of noninterest income associated with our Loan Platform Business:

                                                                                                                       Year Ended December 31,                                 2024 vs. 2023                               2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Loan platform fees(1) $141,608 $33,602 $31,540 $108,006 321 % $2,062 7 %
Servicing(2) 15,825 2,464 3,711 13,361 542 % (1,247) (34) %
Loan platform fees and servicing, total noninterest income $157,433 $36,066 $35,251 $121,367 337 % $815 2 %

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(1)Recorded within noninterest income—loan platform fees in the consolidated statements of operations and comprehensive income (loss), and the Financial Services reportable segment.
(2)Recorded within noninterest income—servicing in the consolidated statements of operations and comprehensive income (loss), 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.
2024 vs. 2023. Total noninterest income increased by $97.3 million, or 11%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily attributable to: (i) in loan origination, sales and securitizations, higher origination fees of $242.9 million primarily related to a product feature offered on personal loans, whereby a borrower may optionally elect to pay origination fees to qualify for a lower annual percentage rate; (ii) growth in our Loan Platform Business of $121.4 million composed of an increase of $108.0 million reported in loan platform fees related to revenue from loans that we originate on behalf of third parties and pre-qualified borrower referrals to third-party loan origination partners, as well as a related increase in servicing income of $13.4 million; (iii) in other, an increase in gains on extinguishment of debt of $47.9 million, and an increase in interchange fee revenue of $32.4 million on higher volume; and (iv) in technology products and solutions, an increase in technology services fee revenue of $26.3 million driven by increased processing and service arrangement activity among our integrated technology solutions clients as well as account growth.
These increases were partially offset by lower revenue in loan origination, sales and securitizations reflecting: (i) higher personal and student loan net charge-offs of $172.5 million, primarily driven by growth in the portfolios and elevated charge off rates; (ii) a net decrease of $111.0 million related to the following: lower fair value gains on personal loans, which were primarily impacted by smaller decreases in discount rate assumptions during 2024 (a decrease of $371.2 million); lower fair value gains on student loans, which were primarily impacted by higher discount rate assumptions (a decrease of $77.7 million; and gains on student loan, personal loan and risk retention interest rate swap positions during 2024 compared to losses in 2023, primarily driven by larger increases in interest rates in the 2024 period (an increase of $337.9 million). In addition, servicing income decreased $28.4 million primarily related to unfavorable changes in valuation inputs and assumptions for personal loans and student loans, which was primarily attributable to increased prepayment rate and default rate assumptions, respectively, during 2024; and (iii) higher losses of $66.1 million on personal loan sales in the 2024 period, and were due to both price and volume factors, as well as delinquent loan sales in the 2024 period only.
2023 vs. 2022. Total noninterest income decreased by $128.4 million, or 13%, for the year ended December 31, 2023 compared to the year ended December 31, 2022, which was primarily attributable to: (i) higher personal loan write-offs in 2023, (ii) higher origination fees primarily related to a new product feature offered on personal loans, whereby a borrower may optionally elect to pay origination fees to qualify for a lower annual percentage rate, (iii) the net effect of higher income related to in period originations, loan sale execution and fair value adjustments on loans and securitization loans, which were primarily impacted by higher personal loan origination volume, lower student loan prepayment assumptions, and an increase in securitization loan fair market values primarily associated with a consolidated securitization transaction in the first quarter of 2023, partially offset by losses in 2023 compared to gains in 2022 on loan hedging and risk retention hedge activities due to smaller increases in interest rates during the 2023 period, (iv) growth in technology products and solutions fees largely driven by revenue contribution from Technisys for the full period in 2023, (v) increased interchange revenue, and (vi) gain on extinguishment of debt during 2023.
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Provision for Credit Losses

                                                                                          Year Ended December 31,   2024 vs. 2023                                                             2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Credit Card $31,599 $54,267 $53,030 $(22,668) (42) % $1,237 2 %
Commercial and consumer banking 113 678 1,302 (565) (83) % (624) (48) %
Total $31,712 $54,945 $54,332 $(23,233) (42) % $613 1 %
2024 vs. 2023. The provision for credit losses was $31.7 million for the year-ended December 31, 2024, reflecting net charge-offs of $39.6 million and an allowance release of $8.0 million. Net charge-offs of $39.6 million decreased $1.4 million compared to the year ended December 31, 2023, driven by lower credit card charge-offs primarily due to improved delinquency rate (total credit card delinquency rate was 4.8%, down approximately 210 bps from the comparative period) as a result of tighter underwriting standards and risk mitigation actions. The allowance release of $8.0 million was also primarily related to our credit card products, reflecting improved credit quality of the portfolio, including higher borrower FICO scores. The prior year provision for the year ended December 31, 2023 was $54.9 million, reflecting net charge-offs of $41.0 million and an allowance increase of $13.3 million.
2023 vs. 2022. The provision for the year ended December 31, 2023 was $54.9 million and increase of $0.6 million from the prior year reflecting higher average credit card balances combined with elevated credit card loss rates during 2022.
Refer to “Analysis of Charge-offs”.
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:

                                                                                                                December 31,

($ in thousands) 2024 2023
Allowance for credit losses to total loans outstanding
Allowance for credit losses $46,684 $54,695
Total loans held for investment, at amortized cost outstanding(1) $1,285,910 $884,390
Ratio(2) 3.63 % 6.18 %

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(1)Total loans outstanding excludes accrued interest.
(2)The decrease in the ratio was primarily attributable to secured loans, for which we did not recognize an allowance for credit losses, as well as a decrease in the allowance for credit losses related to credit card on improved delinquencies.
We omitted the credit ratios associated with nonaccrual loans, as the balance of nonaccrual loans was immaterial.
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:

                                   December 31, 2024                                                                         December 31, 2023                                                                      

($ 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 $44,350 26 % $52,385 36 %
Commercial and consumer banking 2,334 12 % 2,310 13 %
Secured loans(2) — 62 % — 51 %
Total $46,684 100 % $54,695 100 %

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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
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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 December 31, 2024, based on this evaluation we did not recognize an allowance for credit losses on our secured loans.
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:

                                                                                                                                                                                                                                                                                                                        Year Ended December 31,
                                   2024                                                                                                                                                                                                 2023                                                                                               2022

($ in thousands) Average Loans(1) Net Charge-offs(2)(3)(4) Ratio(4)(5) Average Loans(1) Net Charge-offs(2)(3) Ratio(5) Average Loans(1) Net Charge-offs(2)(3) Ratio(5)
Personal loans $16,426,053 $581,370 3.54 % $12,638,807 $432,706 3.42 % $4,767,708 $88,511 1.86 %
Student loans 7,414,829 47,097 0.64 % 5,641,787 25,048 0.44 % 4,059,001 12,677 0.31 %
Home loans 77,912 — — % 78,554 — — % 132,663 — — %
Secured loans 1,024,275 — — % 26,291 — — % — — — %
Credit card 274,093 39,634 14.46 % 238,832 40,992 17.16 % 167,290 20,957 12.53 %
Commercial and consumer banking 142,905 89 0.06 % 109,541 46 0.04 % 73,361 7 0.01 %
Total loans $25,360,067 $668,190 2.63 % $18,733,812 $498,792 2.66 % $9,200,023 $122,152 1.33 %

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(1)Average balances were calculated on daily carrying balances for the 2024 and 2023 periods, and on thirteen-month ending carrying balances for the 2022 period, as the daily analysis in the prior periods would have involved undue burden. Both average calculations are representative of our operations.
(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, and securitizations 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 year ended December 31, 2024 . These loans were sold prior to charge-off during the year ended December 31, 2024 and otherwise would have been charged off as of December 31, 2024 consistent with our policy. See Note 4. Loans to the Notes to Consolidated Financial Statements for additional information.
(5)Net charge-off ratio is calculated as net charge-offs divided by average loans.
2024 vs. 2023. For the year ended December 31, 2024, the total net charge-off ratio was 2.63%, a decrease of 3 bps compared with the year ended December 31, 2023, and total net charge-offs were $668.2 million, an increase of $169.4 million over the comparable period. The decrease in the total net charge-off ratio was primarily due to a lower credit card net charge-off ratio reflective of improvement in delinquency rates (total credit card delinquency rate was 4.8%, down approximately 210 bps from the comparative period) as a result of tighter underwriting standards and risk mitigation actions, as well as an increase of $359.1 million in secured loans, for which we did not recognize an allowance for credit losses. The increase in total net charge-offs was primarily driven by higher personal loan amounts of $148.7 million and higher student loan amounts of $22.0 million. In addition, charge-off ratios for personal loans and student loans were higher year over year, by 12 bps and 20 bps, respectively, which partially offset the improvement in the total net charge-off ratio. These increases reflect growth in our portfolios, seasoning of vintages and credit normalization, along with the impact of the end of the student loan payment moratorium on August 30, 2023.
2023 vs. 2022. For the year ended December 31, 2023, the total net charge-off ratio was 2.66%, an increase of 133 bps compared with the year ended December 31, 2022, and total net charge-offs were $498.8 million, an increase of $376.6 million over the comparable period. The increase in the net charge-off rate and net charge-offs related to credit card was primarily related to our maturing portfolio, and personal loans on growth in our portfolio, seasoning of vintages and credit normalization.
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Noninterest Expense
The following table presents the components of our total noninterest expense:

                                                                                                         Year Ended December 31,                                 2024 vs. 2023                                 2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Technology and product development $551,787 $511,419 $405,257 $40,368 8 % $106,162 26 %
Sales and marketing 796,293 719,400 617,823 76,893 11 % 101,577 16 %
Cost of operations 461,633 379,998 313,226 81,635 21 % 66,772 21 %
General and administrative 600,089 511,011 501,618 89,078 17 % 9,393 2 %
Goodwill impairment — 247,174 — (247,174) (100) % 247,174 n/m
Total noninterest expense(1) $2,409,802 $2,369,002 $1,837,924 $40,800 2 % $531,078 29 %

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(1)In the fourth quarter of 2024, we made a presentation change to present the provision for credit losses below total net revenue and above total noninterest expense, from its previous presentation within total noninterest expense. Respective prior period amounts were recast to conform to the current period presentation.
2024 vs. 2023. Total noninterest expense increased by $40.8 million, or 2%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by: (i) in sales and marketing, increases in direct member incentives, advertising and marketing expenditures, and lead generation costs of $112.8 million primarily related to our Lending and Financial Services segments; (ii) increases in amortization of purchased and internally-developed software, and tools and subscriptions costs of $55.2 million, primarily reported in technology and product development, reflective of continued investments in technology; (iii) increases in professional services costs of $43.8 million, primarily reported in general and administrative and cost of operations; (iv) primarily in cost of operations, an increase in product fulfillment costs of $36.1 million, which included debit card fulfillment services, primarily related to our SoFi Money product, as well as payment processing network association fees associated with increased activity on our technology platform; (v) higher employee compensation and benefits of $32.5 million, which was attributable to increases in headcount and salary related to support of our growth and impacts of the inflationary environment, partially offset by decreases in share-based compensation expense and restructuring charges during the first quarter of 2023; and (vi) in general and administrative, amortization of premiums on a credit default swap of $30.2 million related to our student loans during the 2024 period. These increases were partially offset by the absence of $247.2 million of goodwill impairment expenses in the 2023 period related to the Galileo and Technisys reporting units.
2023 vs. 2022. Total noninterest expense increased by $531.1 million, or 29%, for the year ended December 31, 2023 compared to the year ended December 31, 2022, primarily driven by: (i) goodwill impairment expense related to the Galileo and Technisys reporting units, further discussed within “Critical Accounting Estimates—Goodwill”, (ii) higher employee compensation and benefits, which was attributable to increases in headcount and salary and the inclusion of Technisys for the full 2023 period compared to a partial period in 2022, related to support of our growth and impacts of the inflationary environment, as well as restructuring charges during the first and fourth quarters of 2023 and partially offset by decreases in share-based compensation expense, (iii) increases in advertising and marketing expenditures, utilization of lead generation channels and direct member incentives, (iv) increased amortization of purchased and internally-developed software, and in tools and subscriptions costs, reflective of continued investments in technology, (v) an increase in product fulfillment costs, which included debit card fulfillment services, primarily related to our SoFi Money product, as well as payment processing network association fees associated with increased activity on our technology platform, and (vi) increases in amortization of intangible assets primarily due to acquired intangible assets in the Technisys Merger and Wyndham acquisition. These increases were partially offset by the absence of transaction expenses that were incurred in the 2022 period related to our acquisition of Technisys.
Income Taxes
The income tax benefit for the year ended December 31, 2024 was $265.3 million, primarily due to the release in the fourth quarter of a $258.4 million valuation allowance against certain deferred tax assets based on our reassessment of their realizability. The timing of this valuation allowance release was primarily due to our cumulative income combined with projections of continued profitability. Management defines cumulative income as the most recent three years of pre-tax income when adjusted for certain non-recurring, non-taxable, or non-deductible transactions. See Note 17. Income Taxes to the Notes to Consolidated Financial Statements for additional information.
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Our income tax benefit in 2023 was primarily attributable to income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to Technisys. Our 2023 benefits were partially offset by income tax expense associated with the profitability of SoFi Bank in state jurisdictions where separate filings are required, as well as federal taxes where our tax credits and loss carryforwards may be limited.
Our income tax expense position in 2022 was primarily attributable to tax expense at SoFi Lending Corp. and SoFi Bank due to profitability in state jurisdictions where separate filings are required and recognition of expense from Technisys in certain Latin American countries where separate returns are filed. The expense was partially offset by deferred tax benefits from the amortization of intangible assets acquired in the Technisys Merger.
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. As noted above, in 2024 we released a significant portion of our valuation allowance. See Note 17. Income Taxes to the Notes to Consolidated Financial Statements.
Summary Results by SegmentContribution profit (loss) 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 (loss) 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.

                                                                                                        December 31,                                 2024 vs. 2023                                 2023 vs. 2022
                                   2024                        2023                        2022                                  Change                   % Change             Change                   % Change

Lending
Total net revenue $1,485,222 $1,370,621 $1,139,991 $114,601 8 % $230,630 20 %
Directly attributable expenses (588,507) (513,073) (442,945) (75,434) 15 % (70,128) 16 %
Contribution profit 890,543 823,273 664,003 67,270 8 % 159,270 24 %
Technology Platform
Total net revenue $395,178 $352,340 $315,133 $42,838 12 % $37,207 12 %
Directly attributable expenses (268,223) (257,554) (238,620) (10,669) 4 % (18,934) 8 %
Contribution profit 126,955 94,786 76,513 32,169 34 % 18,273 24 %
Financial Services
Total net revenue $821,511 $436,515 $167,676 $384,996 88 % $268,839 160 %
Provision for credit losses (31,659) (54,945) (54,332) 23,286 (42) % (613) 1 %
Directly attributable expenses (482,845) (381,832) (312,770) (101,013) 26 % (69,062) 22 %
Contribution profit (loss) 307,007 (262) (199,426) 307,269 n/m 199,164 (100) %
Reportable segments total
Total net revenue $2,701,911 $2,159,476 $1,622,800 $542,435 25 % $536,676 33 %
Provision for credit losses (31,659) (54,945) (54,332) 23,286 (42) % (613) 1 %
Directly attributable expenses (1,339,575) (1,152,459) (994,335) (187,116) 16 % (158,124) 16 %
Contribution profit 1,324,505 917,797 541,090 406,708 44 % 376,707 70 %
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Lending Segment
In the table below, we present certain metrics related to our Lending segment:

                                                                                                                          December 31,                                   2024 vs. 2023                                   2023 vs. 2022

Metric 2024 2023 2022 Change % Change Change % Change
Total products (number, as of period end) 2,010,354 1,663,006 1,340,597 347,348 21 % 322,409 24 %
Origination volume ($ in thousands, during period)
Personal loans(1) $17,614,985 $13,801,065 $9,773,705 $3,813,920 28 % $4,027,360 41 %
Student loans 3,780,752 2,630,040 2,245,499 1,150,712 44 % 384,541 17 %
Home loans 1,820,213 997,492 966,177 822,721 82 % 31,315 3 %
Total $23,215,950 $17,428,597 $12,985,381 $5,787,353 33 % $4,443,216 34 %
Loans with a balance (number, as of period end)(2) 1,257,965 1,009,433 753,043 248,532 25 % 256,390 34 %
Average loan balance ($, as of period end)(2)
Personal loans $25,377 $24,223 $24,917 $1,154 5 % $(694) (3) %
Student loans(3) 42,960 44,683 46,585 (1,723) (4) % (1,902) (4) %
Home loans 279,321 284,289 285,152 (4,968) (2) % (863) — %

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(1)Inclusive of origination volume related to our Loan Platform Business. For the year ended December 31, 2024, we originated $2.1 billion of personal loans on behalf of third parties. We did not originate any loans on behalf of third parties during 2023 or 2022.
(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.
Total Products
Total products in our Lending segment is a subset of our total products metric. See “Key Business Metrics” and Part I, Item 1. “Our Reportable Segments” for further discussion of this measure as it relates to our Lending segment.
Origination Volume
We refer to the aggregate dollar amount of loans originated through our platform in a given period as origination volume. Origination volume is an indicator of the size and health of our Lending segment and an indicator (together with the relevant loan characteristics, such as interest rate and prepayment and default expectations) of revenues and profitability. 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 year ended December 31, 2024, total personal loan origination volume increased by 28% relative to 2023, inclusive of a $2.1 billion increase related to personal loans originated on behalf of third parties during the second half of 2024 in support of our Loan Platform Business. Overall increases in origination volume were primarily due to increased demand driven by expanded marketing efforts and increased demand for debt consolidation products in a rising interest rate environment during 2023 that remained elevated into the third quarter of 2024.
During the year ended December 31, 2023, personal loan origination volume increased by 41% relative to 2022, primarily due to increased demand driven by expanded marketing efforts and increased demand for debt consolidation products in a rising interest rate environment.
Student Loans. During the year ended December 31, 2024, student loan origination volume increased by 44% relative to 2023, as demand for student loan refinancing products increased after the resumption of principal and interest payments on federally-held student loans as borrowers looked to refinance at a lower rate or, given the high interest rate environment, to extend the loan term.
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During the year ended December 31, 2023, student loan origination volume increased by 17% relative to 2022, as demand for student loan refinancing products increased ahead of the resumption of principal and interest payments on federally-held student loans as borrowers looked to refinance at a lower rate or, given the high interest rate environment, to extend the loan term. This was partially offset by the unfavorable impact of the suspension of principal and interest payments on federally-held student loans through August 30, 2023 and the expectation of debt cancellation for certain federal student loan borrowers which was struck down by the U.S. Supreme Court in June 2023, combined with a continued rising interest rate environment in 2023.
Home Loans. During the year ended December 31, 2024, home loan origination volume increased by 82% relative to 2023. Our home loan origination volume increased notably beginning in the second quarter of 2023 and throughout 2024, aided by the increased capacity and capabilities subsequent to our acquisition of Wyndham. In addition, interest rates began to decline in the third quarter of 2024, which tends to raise demand for home loans overall as well as shift demand towards refinance originations from purchase originations.
During the year ended December 31, 2023, home loan origination volume decreased by 3% relative to 2022 due to continued rising interest rates, which tends to lower demand for home loans overall and shift demand from refinance originations to purchase originations, the latter of which is a more competitive landscape. Although purchase originations historically represented a smaller percentage of our home loan originations, our mix during the 2023 period has shifted toward more purchase originations, which we would expect to continue under similar macroeconomic conditions. Our home loan origination volume increased notably beginning in the second quarter of 2023, aided by the increased capacity and capabilities subsequent to our acquisition of Wyndham.
Loans with a Balance and Average Loan Balance
Loans with a balance refers to the number of loans that have a balance greater than zero dollars as of the reporting date. Loans with a balance allows management to better understand the unit economics of acquiring a loan in relation to the lifetime value of that loan. Average loan balance is defined as the total unpaid principal balance of the loans divided by loans with a balance within the respective loan product category as of the reporting date. Average loan balance tends to fluctuate based on the pace of loan originations relative to loan repayments and the initial loan origination size.
In the table below, we present additional information related to our lending products:

                                                                                                                  Year Ended December 31,

($ in thousands) 2024 2023 2022
Overall weighted average origination FICO 750 749 752
Personal Loans(1)
Weighted average origination FICO 746 745 747
Weighted average interest rate earned(2) 13.34 % 13.28 % 11.82 %
Interest income recognized $2,077,990 $1,600,527 $551,458
Sales of loans $6,595,822 $938,403 $2,911,491
Student Loans
Weighted average origination FICO 766 770 773
Weighted average interest rate earned(2) 5.73 % 5.13 % 4.27 %
Interest income recognized $406,546 $281,921 $170,550
Sales of loans $294,187 $96,678 $877,920
Home Loans
Weighted average origination FICO 755 755 749
Weighted average interest rate earned(2) 7.94 % 5.76 % 3.42 %
Interest income recognized $6,117 $4,982 $4,714
Sales of loans $1,737,100 $1,029,214 $1,094,981

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(1)Inclusive of activity related to loans originated and subsequently sold as part of our Loan Platform Business. For the year ended December 31, 2024, included $2.1 billion related to loans originated on behalf of third parties. We did not originate any loans on behalf of third parties during the 2023 and 2022 periods presented.
(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 for the 2024 and 2023 periods and on a thirteen-month basis for the 2022 period, as the daily analysis in the prior period would have involved undue burden. Both average calculations are representative of our operations.
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Lending Segment Results of Operations
The following table presents the measure of contribution profit for the Lending segment.

                                                                                                                                                            Year Ended December 31,                                 2024 vs. 2023                                 2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Net interest income $1,207,226 $960,773 $531,480 $246,453 26 % $429,293 81 %
Noninterest income 277,996 409,848 608,511 (131,852) (32) % (198,663) (33) %
Total net revenue 1,485,222 1,370,621 1,139,991 114,601 8 % 230,630 20 %
Servicing rights – change in valuation inputs or assumptions(1) (6,280) (34,700) (39,651) 28,420 (82) % 4,951 (12) %
Residual interests classified as debt – change in valuation inputs or assumptions(2) 108 425 6,608 (317) (75) % (6,183) (94) %
Directly attributable expenses (588,507) (513,073) (442,945) (75,434) 15 % (70,128) 16 %
Contribution profit $890,543 $823,273 $664,003 $67,270 8 % $159,270 24 %
Adjusted net revenue — Lending(3) $1,479,050 $1,336,346 $1,106,948 $142,704 11 % $229,398 21 %

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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. These non-cash charges, which are recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss), 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 obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the consolidated statements of operations and comprehensive income (loss). 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.
(3)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
2024 vs. 2023. Net interest income in our Lending segment increased by $246.5 million, or 26%, for the year ended December 31, 2024 compared to 2023. This was primarily attributable to increases in aggregate average personal and student loan unpaid principal balances of $3.5 billion (29%) and $1.6 billion (29%), respectively, combined with higher weighted average interest rates. The personal and student loan average balance increases were primarily attributable to higher origination volume and longer loan holding periods. Interest expense associated with funding our lending activities increased by $410.0 million, or 44%, primarily due to higher average loan balances.
2023 vs. 2022. Net interest income in our Lending segment increased by $429.3 million, or 81%, for the year ended December 31, 2023 compared to 2022. This was primarily attributable to increases in average personal and student loan unpaid principal balances of $7.0 billion (161%) and $1.7 billion (49%), respectively, combined with a higher weighted average interest rate. The personal loan average balance increase was primarily attributable to higher origination volume and longer loan holding periods. The student loan average balance increase was primarily attributable to longer loan holding periods. Interest expense associated with funding our lending activities increased by $732.1 million, or 356%, primarily due to the sharp increases in benchmark rates which are reflective of the higher interest rate environment year over year, as well as higher average loan balances.
Noninterest income
2024 vs. 2023. Noninterest income in our Lending segment decreased by $131.9 million, or 32%, for the year ended December 31, 2024 compared to 2023, which was primarily attributable to lower loan origination, sales, and securitizations income of $115.9 million.
2023 vs. 2022. Noninterest income in our Lending segment decreased by $198.7 million, or 33%, for the year ended December 31, 2023 compared to 2022, which was primarily attributable to lower loan origination, sales, and securitizations income of $193.3 million.
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Loan Originations, Sales, and Securitizations
The following table presents the components of noninterest income—loan origination, sales, and securitizations:

                                                                                                                                          Year Ended December 31,                                   2024 vs. 2023                                   2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
In period originations, loan sale execution and fair value adjustments(1) $199,464 $689,956 $295,562 $(490,492) (71) % $394,394 133 %
Economic derivative hedges of loan fair values 331,477 (11,258) 369,898 342,735 n/m (381,156) n/m
Other derivative instruments(2) (15,730) 7,560 (11,032) (23,290) n/m 18,592 n/m
Loan origination fees 377,277 134,399 7,452 242,878 181 % 126,947 n/m
Loan write-off expense – whole loans(3) (627,696) (455,194) (101,188) (172,502) 38 % (354,006) 350 %
Loan repurchase (expense) benefit(4) (4,803) (2,075) 4,460 (2,728) 131 % (6,535) n/m
Other (4,097) 8,453 (10) (12,550) n/m 8,463 n/m
Loan origination, sales, and securitizations noninterest income $255,892 $371,841 $565,142 $(115,949) (31) % $(193,301) (34) %

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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)Includes gains (losses) on IRLCs and interest rate caps. Also includes losses related to credit derivatives in 2024, as well as gains on purchase price earn-out during 2023 and 2022.
(3)For the years ended December 31, 2024, 2023 and 2022, includes gross write-offs of $730.1 million, $533.3 million and $131.6 million, respectively. Total recoveries were $102.4 million, $78.1 million and $30.4 million, respectively, of which $78.8 million, $53.7 million and $10.5 million, respectively, were captured via loan sales to a third-party collection agency.
(4)Represents the (expense) benefit associated with our estimated loan repurchase obligation. See Note 18. Commitments, Guarantees, Concentrations and Contingencies to the Notes to Consolidated Financial Statements for additional information.
2024 vs. 2023. The decrease in loan origination, sales, and securitizations income of $115.9 million, or 31%, was primarily driven by: (i) higher personal loan as well as student loan write-offs in the 2024 period, primarily driven by higher loan origination volume, longer loan holding periods and elevated charge off rates during 2024 ($170.7 million); (ii) a net decrease of $111.0 million related to the following: lower fair value gains on personal loans, which were primarily impacted by smaller decreases in discount rate assumptions during 2024 ($371.2 million); lower fair value gains on student loans, which were primarily impacted by higher discount rate assumptions ($77.7 million); and gains on student loan, personal loan and risk retention interest rate swap positions during 2024 compared to losses in 2023, primarily driven by larger increases in interest rates in the 2024 period ($337.9 million); and (iii) higher losses of $66.1 million on personal loan sales in the 2024 period, and were due to both price and volume factors, as well as delinquent loan sales in the 2024 period only.
These decreases were partially offset by higher origination fees primarily related to a new product feature offered on personal loans, whereby a borrower may optionally elect to pay origination fees to qualify for a lower annual percentage rate ($242.9 million).
2023 vs. 2022. The decrease in loan origination, sales, and securitizations income was primarily driven by: (i) higher personal loan write-offs in the 2023 period, primarily driven by longer loan holding periods and elevated charge off rates, (ii) losses in 2023 compared to gains in 2022 on student loan, personal loan and risk retention interest rate swap positions primarily driven by smaller increases in interest rates during the 2023 period, and (iii) lower gains on home loan pipeline hedges primarily driven by larger increases in the underlying hedge price index during the 2023 period.
These decreases were partially offset by: (i) higher fair value gains on personal loans and lower fair value losses on student loans in the 2023 period, which were primarily impacted by higher origination volume and lower prepayment assumptions, respectively, (ii) higher origination fees primarily related to a new product feature offered on personal loans, whereby a borrower may optionally elect to pay origination fees to qualify for a lower annual percentage rate, (iii) improvement in securitizations income primarily driven by an increase in securitization loan and residual interests in securitization trusts fair market values primarily associated with consolidated securitization transactions in the first and third quarters of 2023, and a positive variance in our securitization bond and residual interest position fair values, (iv) fair value gains on home loans (compared to losses in the 2022 period), which were primarily impacted by smaller decreases in benchmark rates, and (v) losses on home loan and student loan sale execution in the 2022 period, which were due to both volume and price factors.
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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:

                                                                                                 Year Ended December 31,                                 2024 vs. 2023                                 2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Servicing income recognized
Personal loans(1) $90,918 $24,074 $35,653 $66,844 278 % $(11,579) (32) %
Student loans 22,811 25,174 36,256 (2,363) (9) % (11,082) (31) %
Home loans 17,347 15,161 12,965 2,186 14 % 2,196 17 %
Servicing rights fair value change
Personal loans(1) $153,952 $28,839 $(4,245) $125,113 434 % $33,084 n/m
Student loans (7,678) (4,929) (24,058) (2,749) 56 % 19,129 (80) %
Home loans 15,385 6,705 9,898 8,680 129 % (3,193) (32) %

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(1)Increases during the 2024 periods were primarily attributable to higher loan sales.
Directly attributable expenses
The directly attributable expenses allocated to the Lending segment that were used in the determination of the segment's contribution profit were as follows:

                                                                                                         Year Ended December 31,                               2024 vs. 2023                                        2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Direct advertising $218,566 $183,885 $178,263 $34,681 19 % $5,622 3 %
Lead generation 149,481 115,388 87,716 34,093 30 % 27,672 32 %
Compensation and benefits 126,394 119,266 103,996 7,128 6 % 15,270 15 %
Loan origination and servicing costs 51,415 46,241 41,535 5,174 11 % 4,706 11 %
Professional services 11,957 9,592 6,649 2,365 25 % 2,943 44 %
Intercompany technology platform expenses 2,706 948 — 1,758 185 % 948 n/m
Other(1) 27,988 37,753 24,786 (9,765) (26) % 12,967 52 %
Directly attributable expenses $588,507 $513,073 $442,945 $75,434 15 % $70,128 16 %

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(1)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).
2024 vs. 2023. Lending segment directly attributable expenses increased by $75.4 million, or 15%, for the year ended December 31, 2024 compared to 2023, primarily due to: (i) an increase in direct advertising primarily related to online and digital advertising, (ii) an increase in personal and student loan lead generation channels, (iii) an increase in allocated compensation and related benefits, which reflected increases in average compensation in 2024, and (iv) a decrease in other expenses, primarily related to third-party loan fraud.
2023 vs. 2022. Lending segment directly attributable expenses increased by $70.1 million, or 16%, for the year ended December 31, 2023 compared to 2022, primarily due to: (i) an increase in personal loan lead generation channels during 2023, (ii) an increase in allocated compensation and related benefits, which reflected increases in average compensation and average headcount in 2023, (ii) an increase in direct advertising primarily related to direct mail advertising, and (iv) an increase in other expenses, primarily related to loan marketing expenses and third-party loan fraud.
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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 4. Loans to the Notes to Consolidated Financial Statements for additional information.
The following table summarizes our whole loan sales:

                                                                                                                                    Year Ended December 31,

2024 2023 2022
Personal loans
Fair value of consideration received:
Cash $2,967,487 $567,904 $3,016,740
Receivable 5,288 — —
Servicing assets recognized 178,919 30,168 21,925
Repurchase liabilities recognized (9,907) (2,069) (7,351)
Total consideration received 3,141,787 596,003 3,031,314
Aggregate unpaid principal balance and accrued interest of loans sold 2,973,077 567,003 2,924,567
Realized gain $168,710 $29,000 $106,747
Sale execution(1)(2) 106.0 % 105.5 % 103.9 %
Student loans
Fair value of consideration received:
Cash $310,331 $98,624 $883,859
Servicing assets recognized 8,249 2,792 9,275
Repurchase liabilities recognized (46) (16) (134)
Total consideration 318,534 101,400 893,000
Aggregate unpaid principal balance and accrued interest of loans sold 303,578 99,916 881,922
Realized gain $14,956 $1,484 $11,078
Sale execution(1) 104.9 % 101.5 % 101.3 %
Home loans
Fair value of consideration received:
Cash $1,750,711 $1,022,600 $1,057,596
Servicing assets recognized 14,675 10,184 13,926
Repurchase liabilities recognized (2,958) (1,765) (1,158)
Total consideration 1,762,428 1,031,019 1,070,364
Aggregate unpaid principal balance and accrued interest of loans sold 1,738,036 1,029,623 1,095,882
Realized gain (loss) $24,392 $1,396 $(25,518)
Sale execution(1) 101.6 % 100.3 % 97.8 %

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(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 year ended December 31, 2024, had related origination fees of $60.5 million. Sales execution including these origination fees would be 108.0%. Personal loans sold during the year ended December 31, 2023, had related origination fees of $4.7 million. Sales execution including these origination fees would be 106.3%.
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The following table summarizes our delinquent whole loan sales during the year ended December 31, 2024. There were no delinquent whole loan sales during the years ended December 31, 2023 and 2022.

                                                                                 Year Ended December 31,

2024
Personal loans
Fair value of consideration received:
Cash $24,228
Servicing assets recognized 20,259
Repurchase liabilities recognized (136)
Total consideration 44,351
Aggregate unpaid principal balance and accrued interest of loans sold(1) 319,738
Realized loss $(275,387)
Sale execution(2) 13.9 %

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(1) For the year ended December 31, 2024, includes $302.9 million of aggregate unpaid principal balance sold, related to late-stage delinquent loans for which we retained servicing and portions of recoveries. For the year ended December 31, 2024, $197.4 million of unpaid principal balance was recorded in prior periods as a write down in noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive income (loss). These loans were sold prior to charge-off during the year ended December 31, 2024 and otherwise would have been charged off as of December 31, 2024 consistent with our policy. In our other charged off whole loan sales, we typically do not retain servicing or recoveries.
(2) 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.
In addition to the previously disclosed personal, student and home loan sale activity, during the year ended December 31, 2024 we also sold secured loans at par with an aggregate unpaid principal balance and accrued interest of $555.9 million.
Technology Platform Segment
In the table below, we present the total accounts metric related to Galileo within our Technology Platform segment:

                                                                                      December 31,                                   2024 vs. 2023                                   2023 vs. 2022
                 2024                        2023                        2022                                  $ Change                   % Change             $ Change                   % Change

Total accounts 167,713,818 145,425,391 130,704,351 22,288,427 15 % 14,721,040 11 %
See “Key Business Metrics” and Part I, Item 1. “Our Reportable Segments” for further discussion of this measure as it relates to our Technology Platform segment.
Technology Platform Segment Results of Operations
The following table presents the measure of contribution profit for the Technology Platform segment.

                                                                                                Year Ended December 31,                                 2024 vs. 2023                                 2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Net interest income $2,158 $1,514 $— $644 43 % $1,514 n/m
Noninterest income 393,020 350,826 315,133 42,194 12 % 35,693 11 %
Total net revenue 395,178 352,340 315,133 42,838 12 % 37,207 12 %
Directly attributable expenses (268,223) (257,554) (238,620) (10,669) 4 % (18,934) 8 %
Contribution profit $126,955 $94,786 $76,513 $32,169 34 % $18,273 24 %
Net interest income
Net interest income in our Technology Platform segment of $2.2 million and $1.5 million for the years ended December 31, 2024 and 2023, respectively, relates to interest income earned on segment cash balances, which we began recording within the Technology Platform segment in the third quarter of 2023. Prior period amounts were determined to be immaterial, and presented within Corporate/Other.
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Noninterest income
2024 vs. 2023. Noninterest income in our Technology Platform segment increased by $42.2 million, or 12%, for the year ended December 31, 2024 compared to 2023. The increase was primarily attributable to growth in technology services fees of $26.3 million driven by increased processing and service arrangement activity among our integrated technology solutions clients as well as account growth. Noninterest income also included $36.8 million and $22.2 million of intercompany revenue for the years ended December 31, 2024 and 2023, respectively. The increase in intercompany revenue was primarily attributable to increased usage of technology platform services during the 2024 period by our Financial Services segment as we continue to leverage synergies to enhance our product offerings.
2023 vs. 2022. Noninterest income in our Technology Platform segment increased by $35.7 million, or 11%, for the year ended December 31, 2023 compared to 2022. The increase was primarily attributable to growth in technology services fees of $20.5 million driven by revenue contribution from Technisys for the full 2023 period compared to ten months of 2022. Noninterest income also included $22.2 million and $7.6 million of intercompany revenue for the years ended December 31, 2023 and 2022, respectively. The increase in intercompany revenue was primarily attributable to increased usage of technology platform services during the 2023 periods by our Financial Services segment, as well as within our Technology Platform segment, as we continue to leverage synergies to enhance our product offerings.
Directly attributable expenses
The directly attributable expenses allocated to the Technology Platform segment that were used in the determination of the segment's contribution profit were as follows:

                                                                                                Year Ended December 31,                               2024 vs. 2023                               2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Compensation and benefits $152,158 $151,041 $143,843 $1,117 1 % $7,198 5 %
Product fulfillment 58,247 47,731 39,237 10,516 22 % 8,494 22 %
Tools and subscriptions 28,081 26,384 21,745 1,697 6 % 4,639 21 %
Professional services 12,088 13,230 11,460 (1,142) (9) % 1,770 15 %
Other(1) 17,649 19,168 22,335 (1,519) (8) % (3,167) (14) %
Directly attributable expenses $268,223 $257,554 $238,620 $10,669 4 % $18,934 8 %

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(1)Other expenses are primarily related to travel and occupancy-related costs, advertising and marketing, and accounts receivable write-offs.
2024 vs. 2023. Technology Platform segment directly attributable expenses increased by $10.7 million, or 4%, for the year ended December 31, 2024 compared to 2023, primarily attributable to an increase in product fulfillment costs, primarily related to payment processing network association fees associated with increased activity on the platform.
2023 vs. 2022. Technology Platform segment directly attributable expenses increased by $18.9 million, or 8%, for the year ended December 31, 2023 compared to 2022, primarily due to: (i) an increase in product fulfillment costs, primarily related to payment processing network association fees associated with increased activity on the platform, (ii) an increase in compensation and benefits expense, primarily related to bonus adjustments in the second quarter of 2023 and the inclusion of Technisys in our results for the full 2023 period, partially offset by a decrease in average headcount in 2023 corresponding with restructuring during the first quarter of 2023, and (iii) an increase in tools and subscriptions costs related to internal technology initiatives to support the growth of the platform, along with the inclusion of Technisys in our results for the full 2023 period.
Financial Services Segment
In the table below, we present the total products metric related to our Financial Services segment:

                                                                                  December 31,                                 2024 vs. 2023                                 2023 vs. 2022
                 2024                        2023                      2022                              $ Change                   % Change           $ Change                   % Change

Total products 12,735,081 9,479,470 6,554,039 3,255,611 34 % 2,925,431 45 %
Total products in our Financial Services segment is a subset of our total products metric. See “Key Business Metrics” and Part I, Item 1. “Our Reportable Segments” for a further discussion of this measure as it relates to our Financial Services segment.
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Financial Services Segment Results of Operations
The following table presents the measure of contribution profit (loss) for the Financial Services segment.

                                                                                                     Year Ended December 31,                                 2024 vs. 2023                                 2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Net interest income $573,422 $334,847 $92,574 $238,575 71 % $242,273 262 %
Noninterest income 248,089 101,668 75,102 146,421 144 % 26,566 35 %
Total net revenue 821,511 436,515 167,676 384,996 88 % 268,839 160 %
Provision for credit losses(1) (31,659) (54,945) (54,332) 23,286 (42) % (613) 1 %
Directly attributable expenses(1) (482,845) (381,832) (312,770) (101,013) 26 % (69,062) 22 %
Contribution profit (loss) $307,007 $(262) $(199,426) $307,269 n/m $199,164 (100) %

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(1)In the fourth quarter of 2024, we made a presentation change to present the provision for credit losses below total net revenue and above directly attributable expenses, from its previous presentation within directly attributable expenses. Respective prior period amounts were recast to conform to the current period presentation.
Net interest income
2024 vs. 2023. Net interest income in our Financial Services segment increased by $238.6 million, or 71%, for the year ended December 31, 2024 compared to 2023, 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.
2023 vs. 2022. Net interest income in our Financial Services segment increased by $242.3 million, or 262%, for the year ended December 31, 2023 compared to 2022, which was primarily attributable to net interest income earned on our deposits, which includes interest income based on our FTP framework (which eliminates in consolidation) and interest expense to members. This net increase corresponds with the growth of deposits at SoFi Bank, as well as the impact of higher interest rates offered to members. In addition, net interest income earned on our credit cards increased, which includes interest income earned on outstanding balances as well as interest expense incurred under the FTP framework, and was primarily attributable to growth in total credit cards.
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.

                                                                                                    Year Ended December 31,                                          2024 vs. 2023                                        2023 vs. 2022

2024 2023 2022 $ Change % Change $ Change % Change
Referrals, loan platform business(1) $52,129 $33,602 $31,540 $18,527 55 % $2,062 7 %
Referrals, other(2) 8,197 4,841 4,512 3,356 69 % 329 7 %
Interchange(2) 66,829 35,247 17,391 31,582 90 % 17,856 103 %
Brokerage(2) 21,494 21,127 15,446 367 2 % 5,681 37 %
Other(2)(3) 2,797 2,647 2,245 150 6 % 402 18 %
Total revenue from contracts with customers(4) 151,446 97,464 71,134 53,982 55 % 26,330 37 %
Loan platform business, other(1) 89,479 — — 89,479 n/m — n/m
Other sources of revenue(5) 7,164 4,204 3,968 2,960 70 % 236 6 %
Total Financial Services noninterest income $248,089 $101,668 $75,102 $146,421 144 % $26,566 35 %

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(1) Presented within noninterest income—loan platform fees in the consolidated statements of operations and comprehensive income (loss).
(2) Presented within noninterest income—other in the consolidated statements of operations and comprehensive income (loss).
(3) Includes revenues from enterprise services and equity capital markets services.
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(4) See Note 3. Revenue to the Notes to Consolidated Financial Statements for additional information.
(5) Presented within noninterest income—other, noninterest income—servicing and noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive income (loss).
2024 vs. 2023. Noninterest income in our Financial Services segment increased by $146.4 million, or 144%, for the year ended December 31, 2024 compared to 2023, primarily due to: (i) growth in our Loan Platform Business of $108.0 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 $31.6 million, which coincided with increased credit card and debit card transactions.
2023 vs. 2022. Noninterest income in our Financial Services segment increased by $26.6 million, or 35%, for the year ended December 31, 2023 compared to 2022, primarily due to an increase in interchange fees of $17.9 million, which coincided with increased credit card and debit card transactions, as well as brokerage-related fees, which were primarily attributable to increased trading volume on our platform during 2023.
Provision for credit losses
2024 vs. 2023. Provision for credit losses in our Financial Services segment decreased by $23.3 million, or 42%, primarily related to improvement in credit card delinquency rates (total credit card delinquency rate was 4.8%, down approximately 210 bps from the comparative period) as a result of tighter underwriting standards and risk mitigation actions, and improved credit quality of the portfolio, including higher borrower FICO scores.
2023 vs. 2022. Provision for credit losses in our Financial Services segment increased by $0.6 million, or 1%, reflecting higher average credit card balances combined with elevated credit card loss rates during 2022.
Directly attributable expenses
The directly attributable expenses allocated to the Financial Services segment that were used in the determination of the segment’s contribution profit (loss) were as follows:

                                                                                                         Year Ended December 31,                                 2024 vs. 2023                               2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Compensation and benefits $137,097 $125,143 $110,288 $11,954 10 % $14,855 13 %
Member incentives 80,837 54,616 45,923 26,221 48 % 8,693 19 %
Product fulfillment 73,194 49,829 33,713 23,365 47 % 16,116 48 %
Lead generation 50,325 36,447 30,418 13,878 38 % 6,029 20 %
Direct advertising 36,729 44,347 36,660 (7,618) (17) % 7,687 21 %
Intercompany technology platform expenses 23,924 12,961 4,600 10,963 85 % 8,361 182 %
Professional services 22,972 12,719 4,590 10,253 81 % 8,129 177 %
Other(1) 57,767 45,770 46,578 11,997 26 % (808) (2) %
Directly attributable expenses(2) $482,845 $381,832 $312,770 $101,013 26 % $69,062 22 %

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(1)Other expenses primarily include operational product losses, third party fraud expense, network servicing fees, travel and occupancy-related costs, tools and subscriptions, and marketing expenses.
(2)In the fourth quarter of 2024, we made a presentation change to present the provision for credit losses below total net revenue and above directly attributable expenses, from its previous presentation within directly attributable expenses. Respective prior period amounts were recast to conform to the current period presentation.
2024 vs. 2023. Financial Services directly attributable expenses increased by $101.0 million, or 26%, for the year ended December 31, 2024 compared to 2023, primarily due to: (i) an increase in direct member incentives utilized to drive adoption and usage of our Financial Services products, the most significant of which was our SoFi Money product; (ii) an increase in product fulfillment costs, which included debit card fulfillment services, primarily related to our SoFi Money product; (iii) an increase in compensation and benefits expense, which reflected an increase in allocated compensation and related benefits to support growth in the Financial Services segment, in addition to increases in average compensation in 2024; and (iv) an increase in intercompany expenses attributable to increased usage of technology platform services during the 2024 period.
2023 vs. 2022. Financial Services directly attributable expenses increased by $69.1 million, or 22%, for the year ended December 31, 2023 compared to 2022, primarily due to: (i) an increase in product fulfillment costs, which included debit card
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fulfillment services, primarily related to our SoFi Money product, (ii) an increase in compensation and benefits expense, which reflected growth in the Financial Services segment that required additional staffing, as well as increased average compensation in 2023, (iii) an increase in direct member incentives utilized to drive adoption and usage of our Financial Services products, the most significant of which was our SoFi Money product, (iv) an increase in direct advertising costs primarily driven by an increase in online and digital advertising largely related to the promotion of our SoFi Money product, and (v) an increase related to utilization of lead generation channels, primarily related to our credit card and Relay products
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:

                                      Year Ended December 31,                                                                                     2024 vs. 2023                               2023 vs. 2022

($ in thousands) 2024 2023 2022 $ Change % Change $ Change % Change
Net interest expense $(66,325) $(35,394) $(39,958) $(30,931) 87 % $4,564 (11) %
Noninterest income (loss) 39,273 (1,293) (9,307) 40,566 n/m 8,014 (86) %
Total net revenue (loss) $(27,052) $(36,687) $(49,265) $9,635 (26) % $12,578 (26) %
Reconciliation of Directly Attributable Expenses
The following table reconciles directly attributable expenses allocated to our reportable segments to total noninterest expense in the consolidated statements of operations and comprehensive income (loss):

                                                                                                                        Year Ended December 31,

($ in thousands) 2024 2023 2022
Reportable segments directly attributable expenses(1) $(1,339,575) $(1,152,459) $(994,335)
Intercompany expenses 36,765 22,199 7,604
Expenses not allocated to segments:
Share-based compensation expense (246,152) (271,216) (305,994)
Employee-related costs(1) (288,767) (250,326) (184,764)
Depreciation and amortization expense (203,498) (201,416) (151,360)
Goodwill impairment expense — (247,174) —
Other corporate and unallocated expenses(2) (368,575) (268,610) (209,075)
Total noninterest expense $(2,409,802) $(2,369,002) $(1,837,924)

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(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.
Liquidity and Capital ResourcesLiquidity
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
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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, 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:

                                                                                                                                          December 31, 2024
                                              Amount Available               Amount Borrowed / Utilized                        Remaining Available Capacity

Cash and cash equivalents $2,538,293 n/a $2,538,293
Investments in AFS debt securities(1) 1,661,449 n/a 1,661,449
Warehouse facilities(2) 6,798,750 1,256,883 5,541,867
Revolving credit facility(3) 645,000 498,300 146,700
FHLB advances(4) 170,391 25,200 145,191
Other lines of credit(5) 50,000 — 50,000
Total liquidity $11,863,883 $1,780,383 $10,083,500

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(1)Excludes investments in AFS debt securities which are pledged as collateral to the FHLB.
(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. As of December 31, 2024, warehouse facility maturity dates ranged from January 2025 through November 2027. See Note 12. Debt to the Notes to Consolidated Financial Statements for additional information.
(3)As of December 31, 2024, the amount utilized under the revolving credit facility includes $12.3 million utilized to secure letters of credit. See Note 12. Debt to the Notes to Consolidated Financial Statements for additional information.
(4)As of December 31, 2024, we had $142.6 million of investments in AFS debt securities and $51.2 million of loans pledged as collateral to the FHLB to secure undrawn borrowing capacity of $170.4 million, of which $25.2 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 December 31, 2024 and December 31, 2023, time deposit balances due in less than one year totaled $814.7 million and $2.6 billion, respectively. As of December 31, 2024 and December 31, 2023, the amount of uninsured deposits totaled $544.3 million and $348.1 million, respectively. As of December 31, 2024, approximately 98% of our total deposits were insured.
The following table presents uninsured time deposits as of December 31, 2024 by remaining time to maturity:

($ in thousands) December 31, 2024
3 months or less $3,164
Over 3 months through 6 months 9,205
Over 6 months through 12 months 6,350
Over 12 months 1,586
Total uninsured time deposits $20,305
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. In addition, our Financial Services segment has historically generated losses, and achieved contribution profit for the first time during the third quarter of 2023. 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.
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As of December 31, 2024, we had debt obligations and common stock outstanding.
Borrowings
Our borrowings primarily included our loan and risk retention warehouse facilities, asset-backed securitization debt, revolving credit facility and convertible notes. The amount of financing actually advanced on each individual loan under our loan warehouse facilities, as determined by agreed-upon advance rates, may be less than the stated advance rate depending, in part, on changes in underlying loan characteristics of the loans securing the financings. Each of our loan warehouse facilities allows the lender providing the funds to evaluate the market value of the loans that are serving as collateral for the borrowings or advances being made. The amount owed and outstanding on our loan warehouse facilities fluctuates significantly based on our origination volume, sales volume, the amount of time we strategically hold loans on our balance sheet, and the amount of loans being funded with our cash or member deposits.
Refer to Note 12. Debt to the Notes to Consolidated Financial Statements 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 12. Debt to the Notes to 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 December 31, 2024.
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.
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.
As of December 31, 2024, 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 December 31, 2024 that management believes would change the categorization. See Note 21. Regulatory Capital to the Notes to Consolidated Financial Statements for the risk- and leverage-based capital ratios and amounts for SoFi Bank and SoFi Technologies.
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Cash Requirements from Known Contractual Obligations and Other Commitments
The following table summarizes our cash requirements from known contractual obligations and other commitments as of December 31, 2024:

                                                                                                                                                                                         Payments Due by Period

($ in thousands) Total Less than 1 Year 1 – 3 Years 3 – 5 Years More than 5 Years
Warehouse debt(1) $1,261,094 $197,553 $1,063,541 $— $—
Revolving credit facility(2) 583,231 — — 583,231 —
Convertible notes(3) 1,339,038 — 428,022 911,016 —
Operating lease obligations 117,411 25,473 41,804 29,282 20,852
Sponsorship, advertising, and cloud computing agreements(4) 685,630 99,419 133,202 94,531 358,478
Total contractual obligations(5) $3,986,404 $322,445 $1,666,569 $1,618,060 $379,330

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(1)The amounts reported exclude future interest expense, other than interest accrued as of December 31, 2024, as it is difficult to predict the amount of interest we will incur due to the variability of the utilization of our warehouse debt and timing of collateral cash flows. As such, only principal commitments and the aforementioned accrued interest are included herein. See Note 12. Debt to the Notes to Consolidated Financial Statements for additional information on our warehouse debt.
(2)Includes principal balance and variable interest on our revolving credit facility. The estimated interest payments assume that our borrowings under the revolving credit facility (i) remain unchanged, (ii) are held to maturity, and (iii) incur interest at the rate for standard withdrawals in effect as of December 31, 2024 through its maturity. See Note 12. Debt to the Notes to Consolidated Financial Statements for additional information on our revolving credit facility.
(3)The convertible notes will mature October 2026 and March 2029, unless earlier repurchased, redeemed or converted. Includes principal balance for the 2026 convertible notes and 2029 convertible notes, and future interest expense on our 2029 convertible notes. The estimated interest payments assume that our borrowings under the 2029 convertible notes (i) remain unchanged, (ii) are held to maturity, and (iii) incur interest at the rate in effect as of December 31, 2024 through maturity. See “Borrowings” for additional information on the provisions of our convertible notes.
(4)See Note 18. Commitments, Guarantees, Concentrations and Contingencies to the Notes to Consolidated Financial Statements for additional information on these financial commitments.
(5)Contractual obligations exclude residual interests classified as debt that result from transfers of assets that are accounted for as secured financings. Similarly, contractual obligations exclude securitization debt, as the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts, the timing of which cannot be reasonably estimated. Additionally, our own liquidity resources are not required to make any contractual payments on these borrowings, except in limited instances associated with our guarantee arrangements. Our maturity date represents the legal maturity of the last class of maturing notes. See Note 18. Commitments, Guarantees, Concentrations and Contingencies to the Notes to Consolidated Financial Statements for further discussion of our guarantees. Finally, contractual obligations exclude the impact of uncertain tax positions, as we are not able to reasonably estimate the timing of such future cash flows. See Note 17. Income Taxes to the Notes to Consolidated Financial Statements for additional information on income taxes and unrecognized tax benefits.
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 18. Commitments, Guarantees, Concentrations and Contingencies to the Notes to 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 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 2024.
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There is no guarantee that we will be able to execute on our strategy as it relates to the timing and pricing of securitization-related transfers. Therefore, we may hold securitization interests for longer than planned or be forced to liquidate at suboptimal prices. Securitization transfers are also negatively impacted during recessionary periods, wherein purchasers may be more risk averse.
Further, future uncertainties around the demand for our personal loans, 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. Securitization markets can also generate additional liquidity; however, financing through the securitization market could result in worse execution as compared to whole loans sales depending on market conditions and, in certain cases, we are required to maintain a minimum investment due to securitization risk retention rules.
Additionally, our securitization transactions require us to maintain a continuing financial interest in the form of securitization investments when we deconsolidate the SPE or in consolidation of the SPE when we have a significant financial interest. In either instance, the continuing financial interest requires us to maintain capital in the SPE that would otherwise be available to us if we had sold loans through a different channel. As it relates to our securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts, the timing of which cannot be reasonably estimated. Our own liquidity resources are not required to make any contractual payments on our securitization borrowings.
Our cash flows from operations have also historically been impacted by material net losses. While we achieved net income profitability for the first time during the fourth quarter of 2023, changing business, macroeconomic or other conditions could potentially lead us, in the future, to raise additional capital in the form of equity or debt, which may not be at favorable terms when compared to previous financing transactions.
Our long-term liquidity strategy includes continuing to grow our deposit base, maintaining adequate warehouse capacity, maintaining corporate debt and other sources of financing, as well as effectively managing the capital raised through debt and equity transactions. Although our goal is to increase our cash flow from operations, there can be no assurance that our future operating plans will lead to improved operating cash flows.
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.” See Part I, Item 1. “Government Supervision and Regulation—Brokered Deposits” for additional information. As of December 31, 2024, 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.
Cash Flow and Liquidity Analysis
The following table provides a summary of cash flow data:

                                                                                                                     Year Ended December 31,

($ in thousands) 2024 2023 2022
Net cash used in operating activities $(1,119,807) $(7,227,139) $(7,255,858)
Net cash used in investing activities (4,820,990) (1,889,864) (106,333)
Net cash provided by financing activities 5,034,577 10,885,602 8,439,485
Cash Flows from Operating Activities
For the year ended December 31, 2024, net cash used in operating activities of $1.1 billion stemmed from net income of $498.7 million, an unfavorable change in our operating assets net of operating liabilities of $1.6 billion, and a negative adjustment for non-cash items of $5.6 million. The change in operating assets net of operating liabilities was primarily a result of our loan origination and sales activities. We originated loans of $19.4 billion during the year and also purchased loans of $170 million. These cash uses were partially offset by principal payments on loans of $9.5 billion and principal proceeds from loan sales of $8.5 billion.
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For the year ended December 31, 2023, net cash used in operating activities of $7.2 billion stemmed from a net loss of $300.7 million and an unfavorable change in our operating assets net of operating liabilities of $7.6 billion, partially offset by a positive adjustment for non-cash items of $706.8 million. The change in operating assets net of operating liabilities was primarily a result of our loan origination and sales activities. We originated loans of $17.4 billion during the year and also purchased loans of $198.7 million. These cash uses were partially offset by principal payments on loans of $7.2 billion and proceeds from loan sales of $2.1 billion.
For the year ended December 31, 2022, net cash used in operating activities of $7.3 billion stemmed from a net loss of $320.4 million and an unfavorable change in our operating assets net of operating liabilities of $7.5 billion, partially offset by a positive adjustment for non-cash items of $560.1 million. The change in operating assets net of operating liabilities was primarily a result of our loan origination and sales activities. We originated loans of $13.0 billion during the year and also purchased loans of $2.5 billion. These cash uses were largely offset by principal payments on loans of $3.1 billion and proceeds from loan sales of $4.9 billion.
Cash Flows from Investing Activities
For the year ended December 31, 2024, net cash used in investing activities of $4.8 billion was primarily attributable to $3.5 billion related to loan activities. Changes in loans held for investment was primarily a result of loan originations during the period of $7.5 billion, partially offset by principal payments on loans of $3.3 billion and proceeds from loan sales of $677.6 million. Other cash uses included net purchases of $1.2 billion related to our investments in AFS debt securities, $154.3 million for purchases of property, equipment and software, which primarily included internally-developed software and purchased software, and $37.8 million related to purchases of non-securitization investments, primarily FRB stock and FHLB stock. These uses were partially offset by proceeds of $79.8 million from our securitization investments.
For the year ended December 31, 2023, net cash used in investing activities of $1.9 billion was primarily attributable to $1.4 billion related to loan activities, primarily driven by student loans, secured loans and credit cards, net purchases of $381.0 million related to our investments in AFS debt securities, $111.4 million for purchases of property, equipment and software, which primarily included internally-developed software and purchased software, $72.3 million related to business combinations, net of cash acquired, which includes our acquisition of Wyndham and settlements of vested employee performance awards associated with the Technisys Merger, and $66.6 million related to purchases of non-securitization investments, primarily FRB stock and FHLB stock. These uses were partially offset by proceeds of $108.3 million from our securitization investments.
For the year ended December 31, 2022, net cash used in investing activities of $106.3 million was primarily attributable to proceeds of $118.8 million from our securitization investments and the aggregate net cash acquired from the Technisys Merger and Bank Merger of $58.5 million. These sources were more than offset by net cash uses of $173.7 million related to loan activities, primarily driven by credit cards, $93.2 million for purchases of property, equipment and software, which primarily included internally-developed software and purchased software, as well as $10.5 million related to costs incurred in the development and enhancement of software to be sold, leased or marketed.
Cash Flows from Financing Activities
For the year ended December 31, 2024, net cash provided by financing activities of $5.0 billion was primarily attributable to net cash sources from our SoFi Bank deposits of $7.0 billion and proceeds from the issuance of our 2029 convertible notes of $845.3 million. This was partially offset by our net change in debt facilities of $2.0 billion related to our warehouses, and debt repayments of $352.8 million. Our payments of debt issuance costs were in the normal course of business and reflective of our recurring debt warehouse facility activity, which involves securing new warehouse facilities and extending existing warehouse facilities. In addition, we had an outflow of $323.4 million related to the redemption of our Series 1 preferred stock in May 2024.
For the year ended December 31, 2023, net cash provided by financing activities of $10.9 billion was primarily attributable to net cash sources from our SoFi Bank deposits of $11.2 billion. This was partially offset by debt repayments of $799.9 million which exceeded our proceeds from debt financing activity of $520.5 million, which were primarily related to our warehouse facilities. Our payments of debt issuance costs were in the normal course of business and reflective of our recurring debt warehouse facility activity, which involves securing new warehouse facilities and extending existing warehouse facilities.
For the year ended December 31, 2022, net cash provided by financing activities of $8.4 billion was primarily attributable to net cash sources from our SoFi Bank deposits of $7.2 billion. Additionally, our proceeds from debt financing activities of $1.9 billion exceeded our debt repayments of $516.4 million, which were primarily related to our warehouse facilities. Our payments of debt issuance costs were in the normal course of business and reflective of our recurring debt
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warehouse facility activity, which involves securing new warehouse facilities and extending existing warehouse facilities. Finally, we paid redeemable preferred stock dividends of $40.4 million and taxes related to RSU vesting of $9.0 million.
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 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 year, see Note 7. Securitization and Variable Interest Entities to the Notes to Consolidated Financial Statements.
Financial Condition Summary
Changes in the composition and balance of our assets and liabilities as of December 31, 2024 compared to December 31, 2023 were principally attributed to the following:
•a decrease of $906.2 million in cash and cash equivalents and restricted cash and restricted cash equivalents. See “Cash Flow and Liquidity Analysis” for further discussion of our cash flow activity;
•an increase in loans held for investment of $2.3 billion, which was primarily related to longer loan holding periods on student loans and secured loans;
•an increase in loans held for sale of $2.3 billion, which was primarily related to personal loan originations;
•an increase in other assets of $1.2 billion, which was primarily related to an increase in accounts receivable, derivative instruments, and deferred tax assets. See Note 10. Other Assets and Other Liabilities to the Notes to Consolidated Financial Statements for additional information;
•an increase in investments in AFS debt securities portfolio of $1.2 billion. Our portfolio primarily consists of U.S. Treasury and agency mortgage-backed securities of high credit quality, utilized in our ongoing asset-liability management activities;
•an increase in deposits of $7.4 billion, which was primarily related to increased savings deposits from members; and
•a decrease of $2.0 billion in gross warehouse and risk retention facility debt as we continue to use our consumer deposit growth to replace higher cost of funding sources.
Critical Accounting EstimatesOur 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 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
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include the most difficult, subjective or complex judgments which are often about matters that are inherently uncertain. The most significant judgments, estimates and assumptions relate to the critical accounting estimates, which are discussed in detail below. 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. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards to the Notes to Consolidated Financial Statements for a summary of our significant accounting policies.
Fair Value
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-level fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three levels are defined as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.
•Level 2 — Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or observable inputs other than quoted prices.
•Level 3 — Unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability.
A financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Instruments are categorized in Level 3 of the fair value hierarchy based on the significance of unobservable factors in the overall fair value measurement. Our involvement with VIEs and origination of personal loans, student loans and home loans results in Level 2 and Level 3 assumptions having a material impact on our consolidated financial statements, as further discussed below. We utilize third-party valuation specialists to perform a valuation of these Level 2 and Level 3 financial instruments on a monthly basis with quarterly oversight by a Valuation Working Group established by the Company that comprises leaders across finance, capital markets and accounting.
Loans
We elected the fair value option to measure our personal loans, student loans and home loans, as we believe that fair value best reflects the expected economic performance of the loans. Home loans classified as Level 2 have observable pricing sources utilized by management. Personal loans, student loans and home loans which do not trade in an active market with readily observable prices are classified as Level 3 because the valuations utilize significant unobservable inputs.
We determine the fair value of our loans using a DCF calculation, which is a form of the income approach, while also considering market data as it becomes available. In applying the DCF methodology, we estimate the future cash flows of each loan portfolio using key loan metrics, such as term, vintage, coupon rate, coupon type and current balance, among others. The significant assumptions used in the valuation model include conditional prepayment rate, annual default rate and discount rate. The conditional prepayment rate represents the monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. The annual default rate represents the annualized rate of borrowers who do not make loan payments on time. The conditional prepayment and annual default rate assumptions are determined using company-specific historical loan performance curves. The discount rate represents the weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the loans. The discount rate is determined based on company-specific factors and market observations, including underlying benchmark rates, our weighted average coupon rate and expected duration of the assets, the last of which is also impacted by expected prepayment rates. We also consider the volume and terms of recent whole loan sales and securitization market pricing factors, as applicable, as indicators of loan fair values.
Securitizations
Loans in consolidated VIEs remain on our consolidated balance sheet and are measured at fair value using Level 3 inputs in a manner consistent with our non-securitization loans. Moreover, third-party residual claims on these loans are measured at fair value on a recurring basis and are presented as residual interests classified as debt in our consolidated balance sheet. We classify the residual interests classified as debt as Level 3 due to the reliance on significant unobservable valuation
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inputs. In Company-sponsored securitization transactions that meet the applicable criteria to be accounted for as a sale, we retain certain asset-backed bonds, which are measured at fair value on a recurring basis using Level 2 inputs, and residual investments, which are measured at fair value on a recurring basis using Level 3 inputs. These risk retention interests in nonconsolidated VIEs are referred to as securitization investments.
We determine the fair value of our residual interests classified as debt and our securitization investments using a DCF calculation, while also considering market data as it becomes available. In applying the DCF methodology, we estimate the future collateral cash flows using key securitization portfolio metrics, such as contractual payments and delinquency profile, among others. The significant assumptions used in the valuation model include conditional prepayment rate, annual default rate and discount rate. The conditional prepayment and annual default rate assumptions are determined using observed prepayment and default performance. The discount rate is determined based on market observations, such as secondary trading information, newly closed deals, benchmark rates and spread index, among others.
See “Quantitative and Qualitative Disclosures About Market Risk” for discussion of the sensitivity of our financial instruments measured at fair value to changes in various market risks.
Goodwill
Goodwill represents the fair value of an acquired business in excess of the fair value of the identified net assets acquired. As of December 31, 2024, we had goodwill of $1.4 billion.
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. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. 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.
A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Therefore, if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. Our reporting units for our goodwill impairment analysis represent components of our business at one level below our operating segments.
As of the annual impairment testing date of October 1, 2024, the Company performed a quantitative assessment for its Galileo and Technisys reporting units. Management calculated the fair value amount of the Galileo and Technisys reporting units using an evenly weighted combination of a DCF calculation, which is a form of the income approach, and a market multiples calculation, which is a form of the market approach.
The discount rates used for the Galileo and Technisys reporting units in our annual quantitative assessment were 13.2% and 19.7%, respectively. The higher discount rate at Technisys was primarily driven by macroeconomic factors in Latin America, specifically the highly inflationary economic environment in Argentina. Additionally, management applied a terminal year long-term growth rate of 4.0% to both reporting units.
As a result of this assessment, the fair value of the Galileo and Technisys reporting units were determined to be above their respective carrying values, though not substantially, which resulted in no impairment at October 1, 2024.
If the discount rate applied to the estimated cash flows was increased or decreased by 50 basis points, the fair value of the Galileo and Technisys reporting units would decrease or increase by approximately 7% and 5%, respectively. Similarly, if the long-term growth rate was increased or decreased by 50 basis points, the fair value of the Galileo and Technisys reporting units would increase or decrease by approximately 3% and 2%, respectively.
As of December 31, 2024 the amount of goodwill assigned to Galileo and Technisys was $816.0 million and $522.6 million, respectively.
For each of our other reporting units, the Company performed a qualitative “step zero” analysis as of its annual impairment testing date of October 1, 2024. The Company evaluated events and circumstances since the last assessment date to
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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, the fair value of these reporting units was determined to be above their respective carrying values which resulted in no impairment loss as of October 1, 2024.
For all of our reporting units, management continued to monitor events and circumstances after October 1 annual testing date and through December 31, 2024, concluding 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 December 31, 2024.
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 aforementioned conditions, general macroeconomic deterioration, including the interest rate environment, inflationary pressures, and the potential for a prolonged economic downturn or recession, as well as other factors, including those listed in "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in Part I, Item 1A of this Annual Report. Further persistence of the aforementioned conditions and these other factors could result in additional impairment charges in future periods.
See Note 8. Goodwill and Intangible Assets to the Notes to Consolidated Financial Statements for additional disclosures related to goodwill.
Valuation Allowance on Deferred Tax Assets
Determining our deferred tax assets, including any related valuation allowance, and assessing their realizability, requires significant judgements and assumptions. To the extent that our judgements and assumptions materially change, or if actual circumstances differ materially from those in the assumptions, our financial statements could be materially impacted, by the recognition of deferred tax expense and increases to our valuation allowance.
We recognize deferred tax assets for the expected future tax benefits of temporary differences between the financial reporting and tax basis of assets, as well as for net operating loss and tax credit carryforwards. Deferred tax assets are measured using tax rates that are expected to apply to taxable income for the years in which those assets are expected to be realized. A significant portion of the Company’s deferred tax assets relate to U.S. federal and state jurisdictions.
In connection with recording deferred taxes, management assesses the likelihood that deferred tax assets are more likely than not to be realized. A valuation allowance is recorded if, in management’s judgment, it is determined that it is not more-likely-than-not that all or some portion of the deferred tax asset will be realized. We evaluate our deferred tax assets quarterly to determine whether adjustments to our valuation allowance are appropriate in light of changes in facts and circumstances.
Management reviews all evidence, both positive and negative, to determine whether it is more likely than not that our deferred tax assets are realizable. Examples of positive or negative evidence include cumulative income, projections of future profitability, future reversal of deferred tax liabilities, history of U.S. federal and material state tax attributes expiring unused, as well as tax planning strategies. Management defines cumulative income as the most recent three years of pre-tax income adjusted for certain non-recurring, non-taxable, or non-deductible transactions. Generally, the weight we give to any particular factor is dependent upon the degree to which it can be objectively verified. As a result, we give greater weight to the recent cumulative income of a relevant jurisdiction than other more subjective factors.
During the fourth quarter of 2024, based on this assessment, management concluded that cumulative income combined with projections of future profitability provided substantial positive evidence that outweighs the negative evidence to support the realization of certain of the Company's deferred tax assets, primarily related to U.S. and certain state jurisdictions. As a result, during the fourth quarter of 2024, the Company released $258.4 million of its valuation allowance. We continue to maintain a valuation allowance of $30.7 million 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.
See Note 17. Income Taxes to the Notes to Consolidated Financial Statements for additional disclosures related to income taxes.
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 Consolidated Financial Statements.
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