0001818874 SoFi Technologies, Inc. 10-Q 2026-06-30 false 2026 Q2 --12-31 Large Accelerated Filer 1291570324 false false true 0001818874 2026-04-012026-06-30 0001818874 2025-04-012025-06-30 0001818874 2026-06-30 0001818874 2025-12-31 0001818874 2026-01-012026-06-30 0001818874 2025-01-012025-06-30 iso4217:USD xbrli:shares iso4217:USDxbrli:shares

SoFi Technologies, Inc.

Form type: 10-Q

Period end: 2026-06-30

Financial statements

Income Statement
Three Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Interest expense-352,333,000.00-274,568,000.00
Interest income1,140,528,000.00792,405,000.00
Noninterest income430,481,000.00337,107,000.00
Total net revenue1,218,676,000.00854,944,000.002,319,044,000.001,626,703,000.00
Cost of revenue200,139,000.00150,437,000.00
Total COGS200,139,000.00150,437,000.00371,262,000.00285,957,000.00
Gross Profit1,018,537,000.00704,507,000.001,947,782,000.001,340,746,000.00
General and administrative216,800,000.00165,390,000.00
Income tax expense (benefit)47,717,000.0014,929,000.00
Other income statement items (derived)13,755,000.0010,035,000.00
Research and development191,276,000.00152,146,000.00
Selling and marketing392,397,000.00264,744,000.00
Total Expenses861,945,000.00607,244,000.001,624,459,000.001,172,367,000.00
Net Income156,592,000.0097,263,000.00323,323,000.00168,379,000.00
Net income (loss) available to common stockholders156,592,000.0097,263,000.00
Basic earnings per share0.120.25
Balance Sheet
June 30, 2026December 31, 2025
Assets
Accounts receivable0.00893,480,000.00
Cash and cash equivalents3,126,237,000.004,929,452,000.00
Debt securities available for sale3,977,313,000.002,448,111,000.00
Goodwill and intangibles1,651,543,000.001,625,424,000.00
Loans receivable, net1,275,529,000.001,516,736,000.00
Mortgage servicing rights364,318,000.00378,178,000.00
Operating lease right-of-use assets86,149,000.0093,941,000.00
Other assets (derived)45,304,773,000.0035,355,780,000.00
Other investments4,225,652,000.002,575,607,000.00
Property, plant and equipment496,712,000.00416,448,000.00
Restricted cash and equivalents439,322,000.00427,321,000.00
Total Assets60,947,548,000.0050,660,478,000.00
Liabilities
Accounts payable and accrued liabilities923,024,000.00743,716,000.00
Debt3,300,544,000.001,815,162,000.00
Deposits45,543,160,000.0037,505,395,000.00
Operating lease liabilities104,083,000.00106,190,000.00
Other liabilities (derived)510,000.00520,000.00
Total Liabilities49,871,321,000.0040,170,983,000.00
Equity
Stockholders equity11,076,227,000.0010,489,495,000.00
Total Equity11,076,227,000.0010,489,495,000.00
Statement of Cash Flows
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Operating activities
Net income323,323,000.00168,379,000.00
Depreciation and amortization140,684,000.00112,026,000.00
Stock-based compensation148,877,000.00127,012,000.00
Changes in operating assets and liabilities, net-6,818,322,000.00-1,852,823,000.00
Net cash from operating activities-6,205,438,000.00-1,445,406,000.00
Investing activities
Investing activities, net-5,225,196,000.00-3,162,691,000.00
Net cash from investing activities-5,225,196,000.00-3,162,691,000.00
Financing activities
Financing activities, net9,640,126,000.004,614,172,000.00
Net cash from financing activities9,640,126,000.004,614,172,000.00
Effect of exchange rate changes on cash-706,000.00-832,000.00
Net change in cash-1,791,214,000.005,243,000.00
Cash at beginning of period5,356,773,000.002,709,360,000.00
Cash at end of period3,565,559,000.002,714,603,000.00
Statement of Stockholders' Equity
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Balance at beginning of period10,489,495,000.006,525,134,000.00
Net income323,323,000.00168,379,000.00
Other equity movements263,409,000.00167,067,000.00
Balance at end of period11,076,227,000.006,860,580,000.00

Notes to financial statements

Notes to financial statements

SoFi Technologies, Inc. is a public reporting company classified under Finance Services. The accompanying unaudited condensed financial statements have been prepared from the Company's books and records and, in the opinion of management, reflect all adjustments necessary for a fair statement of the interim periods presented; results for the interim period ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure.

For the period ended June 30, 2026, the Company recognized total revenue of $1,218,676,000 and net income of $156,592,000. Interest income was $1,140,528,000, an increase of 43.9% from $792,405,000 in the prior period, and noninterest income was $430,481,000, an increase of 27.7% from $337,107,000. Interest expense of $352,333,000 increased 28.3% from $274,568,000 in the prior period, and cost of revenue was $200,139,000, an increase of 33.0% from $150,437,000. Basic earnings per share for the period was $0.12, computed using net income of $156,592,000 and weighted-average basic shares outstanding of 1,284,303,000.

Total debt at June 30, 2026 was $49,871,321,000, comprising debt of $3,300,544,000, deposits of $45,543,160,000, and operating lease liabilities of $104,083,000. Deposits increased 54.2% from $29,540,674,000 in the prior period, while debt decreased 16.3% from $3,942,636,000. The Company leases certain facilities under operating leases; at June 30, 2026, operating lease right-of-use assets were $86,149,000, an increase of 11.6% from $77,213,000, and operating lease liabilities were $104,083,000, an increase of 13.8% from $91,434,000.

Total stockholders' equity at June 30, 2026 was $11,076,227,000, an increase of 61.4% from $6,860,580,000 in the prior period. The Company is involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.

Debt
CurrentPrior
Debt3,300,544,000.001,815,162,000.00
Deposits45,543,160,000.0037,505,395,000.00
Operating lease liabilities104,083,000.00106,190,000.00
Total debt48,947,787,000.0039,426,747,000.00
Property and equipment
CurrentPrior
Property, plant and equipment496,712,000.00416,448,000.00
Total property and equipment496,712,000.00416,448,000.00
Stockholders' equity
CurrentPrior
Stockholders equity11,076,227,000.0010,489,495,000.00
Total stockholders' equity11,076,227,000.0010,489,495,000.00

Management's discussion and analysis

Management's discussion and analysis

SoFi Technologies, Inc. is a public reporting company classified under Finance Services. For the period, interest income increased 43.9% to $1,140.5 million from $792.4 million in the comparable prior-year period, and noninterest income increased 27.7% to $430.5 million from $337.1 million, driven by [COMPLETE: description of drivers of growth in interest income and noninterest income]. Interest expense increased 28.3% to $352.3 million from $274.6 million, reflecting [COMPLETE: description of drivers of higher interest expense, including funding mix]. Total revenue for the period was $1,218.7 million, and net income was $156.6 million, or $0.12 of basic earnings per share based on weighted-average basic shares outstanding of 1,284,303,000.

Operating expenses increased across most categories, consistent with the growth in our business. Cost of revenue increased 33.0% to $200.1 million from $150.4 million, selling and marketing expense increased 48.2% to $392.4 million from $264.7 million, general and administrative expense increased 31.1% to $216.8 million from $165.4 million, and research and development expense increased 25.7% to $191.3 million from $152.1 million, primarily due to [COMPLETE: description of expense drivers such as headcount, member acquisition, and technology investment]. Other income statement items increased 37.1% to $13.8 million from $10.0 million, and income tax expense increased 219.6% to $47.7 million from $14.9 million, the latter reflecting [COMPLETE: description of drivers of higher tax expense].

Our balance sheet expanded significantly period over period. Deposits grew 54.2% to $45,543.2 million from $29,540.7 million, while debt declined 16.3% to $3,300.5 million from $3,942.6 million, reflecting a continued shift toward deposit funding. Debt securities available for sale increased 76.0% to $3,977.3 million from $2,259.8 million, other investments increased 77.9% to $4,225.7 million from $2,374.8 million, and loans receivable, net decreased 9.8% to $1,275.5 million from $1,413.4 million. Stockholders' equity increased 61.4% to $11,076.2 million from $6,860.6 million. At period end, total assets were $60,947.5 million and total liabilities were $49,871.3 million. We have recently issued a proprietary stablecoin named SoFiUSD, the design, issuance, and operation of which could expose us to regulatory, operational, liquidity, technological, and reputational risks, as the legal and regulatory framework governing stablecoins remains uncertain and is evolving rapidly in the United States and internationally, and new or changing laws, regulations, or supervisory expectations could require changes to our operations or increase our compliance costs.

With respect to liquidity and capital resources, cash and cash equivalents increased 47.3% to $3,126.2 million from $2,122.5 million, while restricted cash and equivalents decreased 25.8% to $439.3 million from $592.1 million. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Based on our cash and cash equivalents, investment portfolio, deposit base, and capital position, management believes that existing resources are sufficient to fund operations and meet obligations for at least the next twelve months.

Quantitative and qualitative disclosures about market risk

Quantitative and qualitative disclosures about market risk

Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $3,126,237,000, an increase of 47.3% from $2,122,502,000 at the prior period end, together with restricted cash and equivalents of $439,322,000. Our investment portfolio included debt securities available for sale of $3,977,313,000, up 76.0% from $2,259,818,000, and other investments of $4,225,652,000, up 77.9% from $2,374,810,000, each of which is subject to fluctuations in fair value and yield as market interest rates change. Because these instruments are generally short-term in nature, we do not believe an immediate change in interest rates would have a material effect on their fair value, although changes in rates would affect the income earned on these balances. [COMPLETE: quantitative sensitivity analysis of the impact of a hypothetical change in interest rates]

Changes in interest rates also affect our results of operations through the interest we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. For the three months ended June 30, 2026, we recorded interest income of $1,140,528,000, compared to $792,405,000 in the prior-year period, and interest expense of $352,333,000, compared to $274,568,000 in the prior-year period. Our interest-bearing liabilities include deposits of $45,543,160,000 as of June 30, 2026, an increase of 54.2% from $29,540,674,000, and debt of $3,300,544,000, a decrease of 16.3% from $3,942,636,000. In addition, interest rate movements can affect the fair value of our loans receivable, net, which totaled $1,275,529,000 at period end, and our mortgage servicing rights of $364,318,000, as changes in prevailing rates influence prepayment expectations and the demand for our lending products, which include personal loans, student loans, home loans and related servicing.

We do not have material foreign currency or commodity price exposure. While we primarily operate in the United States, we also operate internationally in Latin America, Canada and Switzerland largely through our Technology Platform segment, as well as in Hong Kong through SoFi Holdings (Hong Kong) Limited; however, we do not consider our resulting foreign currency exposure to be material to our financial statements. We will continue to monitor our market risk exposures and may take actions in the future to mitigate risks we consider material.

Controls and procedures

Controls and procedures

Our management, including our Principal Executive Officer and our other certifying officers, is responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting for SoFi Technologies, Inc. Under the supervision and with the participation of management, we evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report, that is, as of June 30, 2026. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and is accumulated and communicated to management to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting that occurred during the quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management does not expect that its disclosure controls and procedures or internal control over financial reporting will prevent or detect all errors, and controls, no matter how well designed and operated, can provide only reasonable assurance that their objectives are met. [COMPLETE: Management to review and formally adopt the conclusion language in this section prior to filing.]

Legal proceedings

Legal proceedings

From time to time, SoFi Technologies, Inc. is involved in legal proceedings arising in the ordinary course of business. These matters may include claims, disputes, regulatory inquiries, and other proceedings incidental to the operation of the Company's business. Management does not currently believe that any pending matter is material to the Company's financial statements.

The Company evaluates developments in its legal matters on an ongoing basis and accrues for loss contingencies when a loss is probable and the amount can be reasonably estimated. Although the outcome of litigation and other proceedings is inherently uncertain, based on currently available information, management does not believe the ultimate resolution of pending matters will have a material adverse effect on the Company's financial condition, results of operations, or cash flows.

Risk factors

Risk factors

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K, except as supplemented below. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. As of the current period, we held cash and cash equivalents of $3,126,237,000, an increase of 47.3% from $2,122,502,000 in the prior period, and debt securities available for sale of $3,977,313,000, an increase of 76.0% from $2,259,818,000. Changes in prevailing interest rates could adversely affect the fair value of these holdings and the income we earn on them. Interest income of $1,140,528,000 for the current period, compared with $792,405,000 in the prior period, represents a substantial portion of our total revenue of $1,218,676,000, and a sustained decline in interest rates or compression of spreads could materially reduce our results of operations. We do not have material foreign currency or commodity price exposure.

Our funding profile depends significantly on deposits, which grew 54.2% to $45,543,160,000 from $29,540,674,000, while outstanding debt declined 16.3% to $3,300,544,000 from $3,942,636,000. If we are unable to retain or continue to grow our deposit base at attractive rates, or if depositors withdraw funds more rapidly than anticipated, our liquidity, funding costs, and lending capacity could be adversely affected. During the six months ended June 30, 2026, net cash used in operating activities was $6,205,438,000 and net cash used in investing activities was $5,225,196,000, funded in part by net cash provided by financing activities of $9,640,126,000, and cash declined by $1,791,214,000 to $3,565,559,000 at the end of the period. Based on our cash and cash equivalents, investment portfolio, deposit base, and capital position, management believes that existing resources are sufficient to fund operations and meet obligations for at least the next twelve months; however, there can be no assurance that these resources will remain adequate if market conditions deteriorate.

Our results of operations may fluctuate as we continue to invest in growth, and we may not sustain recent levels of profitability. During the current period, selling and marketing expense increased 48.2% to $392,397,000, general and administrative expense increased 31.1% to $216,800,000, research and development expense increased 25.7% to $191,276,000, and income tax expense increased to $47,717,000 from $14,929,000. Although we reported net income of $156,592,000 on revenue of $1,218,676,000 for the period, continued growth in operating expenses that outpaces revenue growth could adversely affect our future profitability. In addition, we are involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, an adverse outcome in one or more of these matters could harm our business, financial condition, or results of operations.

Other information

Other information

The following disclosure is provided pursuant to Item 408(a) of Regulation S-K with respect to Rule 10b5-1 trading arrangements of the directors and officers of SoFi Technologies, Inc. during the fiscal quarter ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]