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Share-Based Compensation (Tables) | 6 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Schedule of Stock-Based Compensation | Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Technology and product development | $ | 18,342 |  |  | $ | 16,618 |  |  | $ | 35,834 |  |  | $ | 28,234 |
Sales and marketing | 6,008 |  |  | 3,695 |  |  | 11,141 |  |  | 6,140 |
Cost of operations | 4,816 |  |  | 2,709 |  |  | 8,959 |  |  | 4,190 |
General and administrative | 50,976 |  |  | 29,132 |  |  | 101,229 |  |  | 51,044 |
Total | $ | 80,142 |  |  | $ | 52,154 |  |  | $ | 157,163 |  |  | $ | 89,608 |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the period indicated:
| Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years)
Outstanding as of January 1, 2022 | 21,171,147 |  |  | $ | 6.81 |  |  | 5.8
Granted(1) | — |  |  | n/a |  |
Exercised | (1,442,890) |  |  | 1.43 |  |  |
Forfeited | (1,126) |  |  | 6.84 |  |  |
Expired | (92,419) |  |  | 3.06 |  |  |
Outstanding as of June 30, 2022 | 19,634,712 |  |  | $ | 7.23 |  |  | 5.4
Exercisable as of June 30, 2022 | 19,526,150 |  |  | $ | 7.23 |  |  | 5.4
____________________ (1)There were no stock options granted during the six months ended June 30, 2022.
Schedule of Restricted Stock Unit Activity | The following table summarizes RSU activity for the period indicated:
| Number of RSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 | 48,687,524 |  | $ | 12.23 |
Granted | 27,687,968 |  | 8.87 |
Replacement Awards(1) | 630,654 |  | 10.69 |
Vested(2) | (11,312,098) |  | 11.74 |
Forfeited | (4,952,182) |  | 10.13 |
Outstanding as of June 30, 2022(3) | 60,741,866 |  | $ | 10.95 |
________________________ (1)In connection with the Technisys Merger, we converted outstanding Technisys performance awards into RSUs to acquire common stock of SoFi, and for which $2,855 of the fair value was attributed to pre-combination services. See Note 2 for additional information. (2)The total fair value, based on grant date fair value, of RSUs that vested during the six months ended June 30, 2022 was $132.8 million. (3)Includes 178,021 RSUs that were granted in 2020 and later modified in an improbable-to-probable modification (Type III), related to which $741 and $1,695 of share-based compensation expense was recorded during the three and six months ended June 30, 2022, respectively. The awards were fully expensed as of June 30, 2022.
Schedule of Performance Stock Unit Activity | The following table summarizes PSU activity for the period indicated:
| Number of PSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 | 22,970,396 |  | $ | 9.52 |
Granted | 122,190 |  | 3.71
Vested | — |  | n/a
Forfeited | (1,295,212) |  | 7.53
Outstanding as of June 30, 2022 | 21,797,374 |  | $ | 9.60 |
Schedule of Valuation Inputs for Compensation Costs Associated with PSUs | The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:
| June 30, 2022 |  | December 31, 2021 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 16.9% – 25.3% |  | 20.2% |  | 16.5% – 26.3% |  | 19.2% |  |  |  |
Annual default rate | 0.2% – 4.4% |  | 0.4% |  | 0.2% – 4.2% |  | 0.4% |  |  |  |
Discount rate | 3.2% – 8.0% |  | 3.6% |  | 1.9% – 7.1% |  | 2.9% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 2.5% – 7.9% |  | 7.3% |  | 4.8% – 16.4% |  | 12.4% |  |  |  |
Annual default rate | 0.1% – 0.4% |  | 0.1% |  | 0.1% – 0.2% |  | 0.1% |  |  |  |
Discount rate | 4.5% – 13.0% |  | 4.8% |  | 2.5% – 13.0% |  | 2.6% |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 16.1% – 43.8% |  | 19.1% |  | 18.4% – 37.7% |  | 20.5% |  |  |  |
Annual default rate | 4.3% – 35.1% |  | 4.6% |  | 4.2% – 30.0% |  | 4.4% |  |  |  |
Discount rate | 5.1% – 9.4% |  | 5.4% |  | 3.9% – 7.0% |  | 4.0% |  |  |  |
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:
| June 30, 2022 |  | December 31, 2021 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.1% – 0.2% |  | 0.1% |  | 0.1% – 0.2% |  | 0.1% |  |  |  |
Conditional prepayment rate | 15.1% – 23.3% |  | 19.1% |  | 15.2% – 25.6% |  | 20.4% |  |  |  |
Annual default rate | 0.2% – 4.3% |  | 0.4% |  | 0.2% – 4.3% |  | 0.4% |  |  |  |
Discount rate | 7.3% – 7.3% |  | 7.3% |  | 7.3% – 7.3% |  | 7.3% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.1% – 0.1% |  | 0.1% |  | 0.1% – 0.1% |  | 0.1% |  |  |  |
Conditional prepayment rate | 5.0% – 11.2% |  | 5.2% |  | 10.0% – 16.4% |  | 11.5% |  |  |  |
Annual default rate | 0.1% – 0.1% |  | 0.1% |  | 0.1% – 0.2% |  | 0.1% |  |  |  |
Discount rate | 8.0% – 8.0% |  | 8.0% |  | 7.5% – 7.5% |  | 7.5% |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.2% – 1.3% |  | 0.3% |  | 0.2% – 1.1% |  | 0.2% |  |  |  |
Conditional prepayment rate | 17.0% – 44.0% |  | 25.1% |  | 22.5% – 41.4% |  | 26.0% |  |  |  |
Annual default rate | 3.3% – 7.0% |  | 4.5% |  | 3.2% – 7.0% |  | 4.4% |  |  |  |
Discount rate | 7.3% – 7.3% |  | 7.3% |  | 7.3% – 7.3% |  | 7.3% |  |  |  |
The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:
| June 30, 2022 |  |  |  | December 31, 2021 |  |
Discount rate (range) | 1.6% – 5.0% |  |  |  | 0.6% – 3.7% |  |
Conditional prepayment rate (range) | 19.4% – 33.0% |  |  |  | 19.5% – 32.2% |  |
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:
| June 30, 2022 |  | December 31, 2021 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Residual investments |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 19.2% – 35.6% |  | 21.6% |  | 19.5% – 33.6% |  | 23.0% |  |  |  |
Annual default rate | 0.3% – 5.3% |  | 0.9% |  | 0.3% – 5.7% |  | 0.9% |  |  |  |
Discount rate | 3.9% – 10.5% |  | 5.4% |  | 2.6% – 10.5% |  | 4.4% |  |  |  |
Residual interests classified as debt |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 19.1% – 50.7% |  | 30.2% |  | 20.0% – 41.8% |  | 31.5% |  |  |  |
Annual default rate | 0.5% – 5.8% |  | 2.7% |  | 0.5% – 5.6% |  | 3.2% |  |  |  |
Discount rate | 6.0% – 9.5% |  | 6.4% |  | 5.0% – 9.5% |  | 5.7% |  |  |  |
The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:
| June 30, 2022 |  | December 31, 2021 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
IRLCs |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 26.0% – 56.0% |  | 53.9% |  | 75.0% – 75.0% |  | 75.0% |  |  |  |
Student loan commitments |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 95.0% – 95.0% |  | 95.0% |  | 95.0% – 95.0% |  | 95.0% |  |  |  |
___________________ (1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $34,668 as of June 30, 2022. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs. Our key valuation inputs were as follows as of the dates indicated:
Purchase Price Earn-Out |  | June 30, 2022 |  | December 31, 2021
Conditional prepayment rate |  | 22.7% |  | 22.9%
Annual default rate |  | 35.6% |  | 30.0%
Discount rate |  | 25.0% |  | 25.0%
The following table summarizes the inputs used for estimating the fair value of PSUs granted during the period indicated:
Input |  | Six Months Ended June 30, 2022
Risk-free interest rate |  | 1.6%
Expected volatility |  | 37.7%
Fair value of common stock |  | $12.06
Dividend yield |  | —%

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