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Share-Based Compensation (Tables)

6 Months Ended

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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