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Share-Based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
2021 Stock Option and Incentive Plan
In connection with the Closing of the Business Combination, the Company adopted the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which authorized for issuance 63,575,425 shares of common stock in connection with the Business Combination. The 2021 Plan allowed for the number of authorized shares to increase on the first day of each fiscal year beginning on January 1, 2022 and ending on and including January 1, 2030. Effective January 1, 2022, our Board of Directors authorized the issuance of an additional 8,937,242 shares under this provision. Refer to Note 19 for discussion of an amendment and restatement of the 2021 Plan during the subsequent event period. The 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (including performance stock units), dividend
equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool.
During the six months ended June 30, 2022 and 2021, we incurred cash outflows of $5,846 and $28,603, respectively, related to the payment of withholding taxes for vested RSUs. These cash outflows are presented within net cash provided by (used in) financing activities in the unaudited condensed consolidated statements of cash flows.
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,
2022202120222021
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 
Stock Options
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, 202221,171,147 $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, 202219,634,712 $7.23 5.4
Exercisable as of June 30, 202219,526,150 $7.23 5.4
____________________
(1)There were no stock options granted during the six months ended June 30, 2022.
Total compensation cost related to unvested stock options not yet recognized as of June 30, 2022 was $3.2 million and will be recognized over a weighted average period of approximately 0.7 years.
Restricted Stock Units
RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. For employees hired on or after January 1, 2022, new hire RSU grants typically vest 12.5% on the first vesting date, which occurs approximately six months after the date of grant, and ratably each quarter of the ensuing 14-quarter period. For employees hired before January 1, 2022, new hire RSU grants typically vest 25% on the first vesting date, which occurs approximately one year after the date of grant, and ratably each quarter of the ensuing 12-quarter period. RSUs have been issued under other vesting schedules, including grants to existing employees.
The following table summarizes RSU activity for the period indicated:
Number of
RSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 202248,687,524$12.23 
Granted
27,687,9688.87 
Replacement Awards(1)
630,65410.69 
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.
As of June 30, 2022, there was $631.7 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 3.1 years.
Performance Stock Units
The following table summarizes PSU activity for the period indicated:
Number of
PSUs		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 202222,970,396$9.52 
Granted
122,1903.71
Vested—n/a
Forfeited
(1,295,212)7.53
Outstanding as of June 30, 2022
21,797,374$9.60 
Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determine the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. The following table summarizes the inputs used for estimating the fair value of PSUs granted during the period indicated:
InputSix Months Ended
June 30, 2022
Risk-free interest rate
1.6%
Expected volatility
37.7%
Fair value of common stock
$12.06
Dividend yield
—%
Our use of a Monte Carlo simulation model requires the use of subjective assumptions:
•The risk-free interest rate assumption was based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs.
•The expected volatility assumption was based on the implied volatility of our common stock from a set of comparable publicly-traded companies.
•The fair value of our common stock was based on the closing stock price on the date of grant.
•We assumed no dividend yield because we have historically not paid out dividends to common stockholders.
As of June 30, 2022, there was $103.3 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 1.4 years.