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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2026
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 12. Fair Value Measurements
Recurring Fair Value Measurements The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets:
| June 30, 2026 |  | December 31, 2025
| Fair Value |  | Fair Value
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 569,556 |  |  | $ | — |  |  | $ | — |  |  | $ | 569,556 |  |  | $ | 75,356 |  |  | $ | — |  |  | $ | — |  |  | $ | 75,356 |
Agency mortgage-backed securities(1) | — |  |  | 3,407,063 |  |  | — |  |  | 3,407,063 |  |  | — |  |  | 2,354,606 |  |  | — |  |  | 2,354,606 |
Corporate bonds(1) | — |  |  | 93 |  |  | — |  |  | 93 |  |  | — |  |  | 185 |  |  | — |  |  | 185 |
Other(1) | — |  |  | 823 |  |  | — |  |  | 823 |  |  | — |  |  | 833 |  |  | — |  |  | 833 |
Asset-backed bonds(2) | — |  |  | 204,491 |  |  | — |  |  | 204,491 |  |  | — |  |  | 113,272 |  |  | — |  |  | 113,272 |
Residual investments(2) | — |  |  | — |  |  | 43,626 |  |  | 43,626 |  |  | — |  |  | — |  |  | 31,355 |  |  | 31,355 |
Investment securities(3) | 569,556 |  |  | 3,612,470 |  |  | 43,626 |  |  | 4,225,652 |  |  | 75,356 |  |  | 2,468,896 |  |  | 31,355 |  |  | 2,575,607 |
Loans at fair value(4) | — |  |  | 403,647 |  |  | 46,198,365 |  |  | 46,602,012 |  |  | — |  |  | 204,133 |  |  | 36,199,228 |  |  | 36,403,361 |
Servicing rights | — |  |  | — |  |  | 364,318 |  |  | 364,318 |  |  | — |  |  | — |  |  | 378,178 |  |  | 378,178 |
Third party warrants(5)(6) | — |  |  | — |  |  | 540 |  |  | 540 |  |  | — |  |  | — |  |  | 540 |  |  | 540 |
Derivative assets(5)(7)(8) | — |  |  | 228,649 |  |  | — |  |  | 228,649 |  |  | — |  |  | 61,583 |  |  | — |  |  | 61,583 |
IRLCs(5)(9) | — |  |  | — |  |  | 11,077 |  |  | 11,077 |  |  | — |  |  | — |  |  | 9,971 |  |  | 9,971 |
Student loan commitments(5)(9) | — |  |  | — |  |  | 23,549 |  |  | 23,549 |  |  | — |  |  | — |  |  | 28,779 |  |  | 28,779 |
Personal loan commitments(5)(9) | — |  |  | — |  |  | 8,723 |  |  | 8,723 |  |  | — |  |  | — |  |  | — |  |  | — |
Total assets(11) | $ | 569,556 |  |  | $ | 4,244,766 |  |  | $ | 46,650,198 |  |  | $ | 51,464,520 |  |  | $ | 75,356 |  |  | $ | 2,734,612 |  |  | $ | 36,648,051 |  |  | $ | 39,458,019 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt(10) | $ | — |  |  | $ | 48,111 |  |  | $ | — |  |  | $ | 48,111 |  |  | $ | — |  |  | $ | 54,107 |  |  | $ | — |  |  | $ | 54,107 |
Residual interests classified as debt | — |  |  | — |  |  | 510 |  |  | 510 |  |  | — |  |  | — |  |  | 520 |  |  | 520 |
Derivative liabilities(5)(7)(8) | — |  |  | 10,242 |  |  | — |  |  | 10,242 |  |  | — |  |  | 4,680 |  |  | — |  |  | 4,680 |
Total liabilities | $ | — |  |  | $ | 58,353 |  |  | $ | 510 |  |  | $ | 58,863 |  |  | $ | — |  |  | $ | 58,787 |  |  | $ | 520 |  |  | $ | 59,307 |
_____________________ (1)Investments in debt securities that were classified as Level 2 rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 6. Investment Securities for additional information. (2)These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. The fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. See Note 6. Investment Securities for additional information on the asset-backed bonds and residual investments included herein which are classified as available for sale. (3)These assets are presented within investment securities in the condensed consolidated balance sheets. (4)Home loans classified as Level 2 have observable pricing sources utilized by management. Personal loans, student loans and home loans classified as Level 3 do not trade in an active market with readily observable prices. Personal loans and home loans are presented within loans held for sale, and student loans are presented within loans held for investment, at fair value. (5)These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities, respectively, in the condensed consolidated balance sheets. (6)The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (7)For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 11. Derivative Financial Instruments for additional information. (8)Home loan pipeline hedges represent TBAs used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. Interest rate swaps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. As of June 30, 2026 and December 31, 2025, interest rate swaps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (9)IRLCs, student loan commitments (which include in-school loan and student loan refinancing commitments) and personal loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans, student loans and personal loans similar to those in the funding pipelines on the measurement date. (10)The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. As of June 30, 2026 and December 31, 2025, the unpaid principal related to debt measured at fair value was $50,051 and $56,255, respectively. For the three and six months ended June 30, 2026, losses from changes in fair value were immaterial. For the three and six months ended June 30, 2025, gains (losses) from changes in fair value were immaterial. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market and default assumptions, were immaterial for the three and six months ended June 30, 2026 and 2025. (11)During the fourth quarter of 2025, the Company launched SoFi Crypto which provides our members the ability to buy, sell and hold digital assets. To facilitate these member transactions, we maintain an incidental inventory of crypto assets for operational purposes. As of June 30, 2026 and December 31, 2025, the fair value of our crypto assets were immaterial. These assets are presented within other assets and categorized as Level 1 as of June 30, 2026 and December 31, 2025. Level 3 Recurring Fair Value Rollforward The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented.
| Fair Value at |  |  |  |  |  |  | Fair Value at |  |  | Changes in unrealized gains (losses) included in earnings related to assets and liabilities held at period end
| March 31, 2026 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | Other Changes | June 30, 2026 |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Personal loans | $ | 23,682,421 |  | $ | (247,108) |  | $ | 3,560 |  | $ | (13,599) |  | $ | 7,629,592 |  | $ | (3,558,039) |  | $ | 8,463 |  | $ | 27,505,290 |  |  |  | $ | (55,567) |
Student loans | 15,336,820 |  | (79,786) |  | — |  | — |  | 2,686,760 |  | (1,039,179) |  | 15,949 |  | 16,920,564 |  |  |  | (45,260) |
Home loans | 1,322,979 |  | 18,678 |  | — |  | — |  | 476,589 |  | (48,738) |  | 3,003 |  | 1,772,511 |  |  |  | 19,374 |
Loans at fair value(1) | 40,342,220 |  | (308,216) |  | 3,560 |  | (13,599) |  | 10,792,941 |  | (4,645,956) |  | 27,415 |  | 46,198,365 |  |  |  | (81,453) |
Servicing rights(2) | 367,902 |  | 5,696 |  | 2,989 |  | — |  | 36,435 |  | (48,704) |  | — |  | 364,318 |  |  |  | 5,695 |
Residual investments(3) | 37,617 |  | 757 |  | 7,499 |  | (520) |  | — |  | (1,727) |  | — |  | 43,626 |  |  |  | 624 |
IRLCs(4) | 7,561 |  | 8,993 |  | — |  | — |  | — |  | (5,477) |  | — |  | 11,077 |  |  |  | 11,077 |
Student loan commitments(4) | 19,270 |  | 16,766 |  | — |  | — |  | — |  | (12,487) |  | — |  | 23,549 |  |  |  | 23,549 |
Personal loan commitments(4) | 9,034 |  | 5,030 |  | — |  | — |  | — |  | (5,341) |  | — |  | 8,723 |  |  |  | 8,723 |
Third party warrants(5) | 540 |  | — |  | — |  | — |  | — |  | — |  | — |  | 540 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Residual interests classified as debt(3) | (517) |  | (16) |  | — |  | — |  | — |  | 23 |  | — |  | (510) |  |  |  | (16) |
Net impact on earnings |  | $ | (270,990) |  |  |  |  |  |  |  |  |  |
| Fair Value at |  |  |  |  |  |  | Fair Value at |  |  | Changes in unrealized gains (losses) included in earnings related to assets and liabilities held at period end
| January 1, 2026 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | Other Changes | June 30, 2026 |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Personal loans | $ | 21,540,668 |  | $ | (449,565) |  | $ | 6,134 |  | $ | (26,851) |  | $ | 13,006,590 |  | $ | (6,573,195) |  | $ | 1,509 |  | $ | 27,505,290 |  |  |  | $ | 120,388 |
Student loans | 13,657,578 |  | (74,372) |  | 86,875 |  | — |  | 5,300,468 |  | (2,082,429) |  | 32,444 |  | 16,920,564 |  |  |  | 13,329 |
Home loans | 1,000,982 |  | 33,818 |  | — |  | — |  | 813,719 |  | (78,910) |  | 2,902 |  | 1,772,511 |  |  |  | 33,451 |
Loans at fair value(1) | 36,199,228 |  | (490,119) |  | 93,009 |  | (26,851) |  | 19,120,777 |  | (8,734,534) |  | 36,855 |  | 46,198,365 |  |  |  | 167,168 |
Servicing rights(2) | 378,178 |  | 3,816 |  | 5,044 |  | — |  | 70,883 |  | (93,603) |  | — |  | 364,318 |  |  |  | 4,218 |
Residual investments(3) | 31,355 |  | 933 |  | 15,901 |  | (520) |  | — |  | (4,043) |  | — |  | 43,626 |  |  |  | 800 |
IRLCs(4) | 9,971 |  | 7,402 |  | — |  | — |  | — |  | (6,296) |  | — |  | 11,077 |  |  |  | 11,077 |
Student loan commitments(4) | 28,779 |  | 17,703 |  | — |  | — |  | — |  | (22,933) |  | — |  | 23,549 |  |  |  | 23,549 |
Personal loan commitments(4) | — |  | 8,723 |  | — |  | — |  | — |  | — |  | — |  | 8,723 |  |  |  | 8,723 |
Third party warrants(5) | 540 |  | — |  | — |  | — |  | — |  | — |  | — |  | 540 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Residual interests classified as debt(3) | (520) |  | (43) |  | — |  | — |  | — |  | 53 |  | — |  | (510) |  |  |  | (43) |
Net impact on earnings |  | $ | (451,585) |  |  |  |  |  |  |  |  |  |
| Fair Value at |  |  |  |  |  |  | Fair Value at |  |  | Changes in unrealized gains (losses) included in earnings related to assets and liabilities held at period end
| March 31, 2025 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | Other Changes | June 30, 2025 |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Personal loans | $ | 17,869,230 |  | $ | (10,430) |  | $ | 2,032 |  | $ | (290,015) |  | $ | 4,519,171 |  | $ | (2,486,773) |  | $ | 722 |  | $ | 19,603,937 |  |  |  | $ | 248,752 |
Student loans | 9,571,457 |  | 100,161 |  | 698,901 |  | — |  | 993,326 |  | (621,766) |  | (438) |  | 10,741,641 |  |  |  | 125,767 |
Home loans | 268,778 |  | 4,150 |  | — |  | (266,469) |  | 257,994 |  | (5,092) |  | — |  | 259,361 |  |  |  | 12,907 |
Loans at fair value(1) | 27,709,465 |  | 93,881 |  | 700,933 |  | (556,484) |  | 5,770,491 |  | (3,113,631) |  | 284 |  | 30,604,939 |  |  |  | 387,426 |
Servicing rights(2) | 389,780 |  | (16,925) |  | 3,573 |  | (5,841) |  | 40,323 |  | (35,904) |  | — |  | 375,006 |  |  |  | (16,925) |
Residual investments(3) | 28,730 |  | 671 |  | 3,827 |  | (313) |  | — |  | (1,685) |  | — |  | 31,230 |  |  |  | 671 |
IRLCs(4) | 8,074 |  | 10,054 |  | — |  | — |  | — |  | (8,074) |  | — |  | 10,054 |  |  |  | 10,054 |
Student loan commitments(4) | 471 |  | 1,138 |  | — |  | — |  | — |  | (471) |  | — |  | 1,138 |  |  |  | 1,138 |
Third party warrants(5) | 540 |  | — |  | — |  | — |  | — |  | — |  | — |  | 540 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Residual interests classified as debt(3) | (579) |  | (12) |  | — |  | — |  | — |  | 37 |  | — |  | (554) |  |  |  | (12) |
Net impact on earnings |  | $ | 88,807 |  |  |  |  |  |  |  |  |  |
| Fair Value at |  |  |  |  |  |  | Fair Value at |  |  | Changes in unrealized gains (losses) included in earnings related to assets and liabilities held at period end
| January 1, 2025 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | Other Changes | June 30, 2025 |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Personal loans | $ | 17,532,396 |  | $ | (83,855) |  | $ | 4,930 |  | $ | (1,485,419) |  | $ | 8,496,841 |  | $ | (4,859,930) |  | $ | (1,026) |  | $ | 19,603,937 |  |  |  | $ | 391,223 |
Student loans | 8,597,368 |  | 225,930 |  | 898,970 |  | — |  | 2,184,789 |  | (1,167,012) |  | 1,596 |  | 10,741,641 |  |  |  | 264,476 |
Home loans | 85,568 |  | 13,430 |  | — |  | (266,469) |  | 433,225 |  | (6,393) |  | — |  | 259,361 |  |  |  | 14,440 |
Loans at fair value(1) | 26,215,332 |  | 155,505 |  | 903,900 |  | (1,751,888) |  | 11,114,855 |  | (6,033,335) |  | 570 |  | 30,604,939 |  |  |  | 670,139 |
Servicing rights(2) | 342,128 |  | (15,851) |  | 7,210 |  | (7,781) |  | 129,254 |  | (79,954) |  | — |  | 375,006 |  |  |  | (15,851) |
Residual investments(3) | 25,394 |  | 1,335 |  | 8,082 |  | (313) |  | — |  | (3,268) |  | — |  | 31,230 |  |  |  | 1,335 |
IRLCs(4) | 1,227 |  | 18,128 |  | — |  | — |  | — |  | (9,301) |  | — |  | 10,054 |  |  |  | 10,054 |
Student loan commitments(4) | 6,042 |  | 1,609 |  | — |  | — |  | — |  | (6,513) |  | — |  | 1,138 |  |  |  | 1,138 |
Third party warrants(5) | 540 |  | — |  | — |  | — |  | — |  | — |  | — |  | 540 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Residual interests classified as debt(3) | (609) |  | (47) |  | — |  | — |  | — |  | 102 |  | — |  | (554) |  |  |  | (47) |
Net impact on earnings |  | $ | 160,679 |  |  |  |  |  |  |  |  |  |
_____________________ (1)For loans at fair value, purchases reflect consideration and relate to previously transferred loans. Purchase activity included elective repurchases of $604.8 million and $804.8 million during the three and six months ended June 30, 2025, respectively. There were no elective repurchases during the three and six months ended June 30, 2026. Purchase activity also included securitization clean-up calls of $86.7 million during the six months ended June 30, 2026 and $94.1 million during each of the three and six months ended June 30, 2025. There were no securitization clean-up calls during the three months ended June 30, 2026. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Sales reflect consideration received on loans sold during the period. Issuances represent the unpaid principal balance of loans originated. Settlements represent principal payments made on loans during the period. Other changes represent fair value adjustments that impact the balance sheet primarily associated with loan commitments funded during the period, capitalized interest, whole loan strategic repurchases, clean up calls and consolidated securitizations. Impacts on earnings for loans at fair value are recorded within interest income—loans and securitizations, within noninterest income—loan origination, sales, securitizations and servicing, and within noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income. (2)For servicing rights, impacts on earnings are recorded within noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. (3)For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, impacts on earnings are recorded within noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income, a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—loans and securitizations for residual investments, but does not impact the liability or asset balance, respectively. (4)For IRLCs, student loan commitments and personal loan commitments, settlements reflect funded loans during the period multiplied by the respective IRLC, student loan commitment or personal loan commitment price in effect at the beginning of the quarter. For IRLCs, student loan commitments and personal loan commitments, impacts on earnings are recorded within noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. (5)For third party warrants, impacts on earnings are recorded within noninterest income—other in the condensed consolidated statements of operations and comprehensive income. Loans at Fair Value Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are primarily impacted by valuation assumption changes as well as sales price execution. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $27,813 and $16,190 during the three and six months ended June 30, 2026, respectively, and $62,784 and $113,753 during the three and six months ended June 30, 2025, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. Level 3 Significant Inputs 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. Level 3 fair value measurements include 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. Loans The following key unobservable assumptions were used in the fair value measurement of our loans:
| June 30, 2026 |  | December 31, 2025 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 15.4% – 32.1% |  | 25.8% |  | 18.3% – 30.7% |  | 26.9% |  |  |  |
Annual default rate | 4.0% – 18.3% |  | 4.8% |  | 3.7% – 37.9% |  | 4.5% |  |  |  |
Discount rate | 4.9% – 6.9% |  | 5.0% |  | 4.4% – 6.6% |  | 4.5% |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 9.3% – 12.8% |  | 11.0% |  | 9.6% – 12.9% |  | 11.2% |  |  |  |
Annual default rate | 0.4% – 6.8% |  | 0.7% |  | 0.4% – 6.4% |  | 0.7% |  |  |  |
Discount rate | 4.1% – 8.2% |  | 4.3% |  | 3.7% – 8.2% |  | 3.9% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 8.2% – 14.9% |  | 14.9% |  | 6.2% – 20.7% |  | 13.6% |  |  |  |
Annual default rate | 0.5% – 1.0% |  | 0.5% |  | 0.1% – 7.4% |  | 0.6% |  |  |  |
Discount rate | 6.0% – 6.1% |  | 6.0% |  | 4.9% – 8.5% |  | 5.9% |  |  |  |
The key assumptions are defined as follows: •Conditional prepayment rate— The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Annual default rate— The annualized rate of borrowers who do not make loan payments on time. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Discount rate— 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 primarily determined based on an underlying benchmark rate curve and spread(s), the latter of which is determined based on factors including, but not limited to, weighted average coupon rate, prepayment rate, default rate and resulting expected duration of the assets. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. See Note 4. Loans for additional loan fair value disclosures. Servicing Rights Servicing rights for personal loans and student loans do not trade in an active market with readily observable prices. Similarly, home loan servicing rights infrequently trade in an active market. At the time of the underlying loan sale or the assumption of servicing rights, the fair value of servicing rights is determined using a discounted cash flow methodology based on observable and unobservable inputs. Management classifies servicing rights as Level 3 due to the use of significant unobservable inputs in the fair value measurement. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights:
| June 30, 2026 |  | December 31, 2025 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.2% – 1.4% |  | 0.3% |  | 0.1% – 1.1% |  | 0.3% |  |  |  |
Conditional prepayment rate | 15.6% – 37.6% |  | 24.9% |  | 15.0% – 39.4% |  | 24.3% |  |  |  |
Annual default rate | 1.0% – 17.5% |  | 4.8% |  | 1.0% – 18.0% |  | 5.0% |  |  |  |
Discount rate | 8.5% – 19.3% |  | 10.5% |  | 8.5% – 19.0% |  | 10.1% |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.1% – 0.4% |  | 0.2% |  | 0.1% – 0.3% |  | 0.2% |  |  |  |
Conditional prepayment rate | 9.7% – 15.4% |  | 13.1% |  | 6.4% – 15.1% |  | 12.5% |  |  |  |
Annual default rate | 0.3% – 3.7% |  | 1.0% |  | 0.3% – 3.7% |  | 0.9% |  |  |  |
Discount rate | 8.5% – 8.5% |  | 8.5% |  | 8.5% – 8.5% |  | 8.5% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.7% – 0.9% |  | 0.7% |  | 0.1% – 0.2% |  | 0.1% |  |  |  |
Conditional prepayment rate | 4.4% – 14.5% |  | 9.0% |  | 4.7% – 21.5% |  | 8.7% |  |  |  |
Annual default rate | 0.1% – 0.4% |  | 0.1% |  | 0.0% – 0.1% |  | 0.0% |  |  |  |
Discount rate | 9.0% – 12.8% |  | 9.1% |  | 9.3% – 10.0% |  | 9.3% |  |  |  |
The key assumptions are defined as follows: •Market servicing costs— The fee a willing market participant, which we validate through actual third-party bids for our servicing, would require for the servicing of personal loans, student loans and home loans with similar characteristics as those in our serviced portfolio. An increase in the market servicing cost, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Conditional prepayment rate— The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Annual default rate— The annualized rate of default within the total serviced loan balance. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Discount rate— The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the servicing rights. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. The following table presents the estimated decrease to the fair value of our servicing rights if the key assumptions had each of the below adverse changes:
| June 30, 2026 |  | December 31, 2025
Market servicing costs |  |  |
2.5 basis points increase | $ | (11,469) |  |  | $ | (8,825) |
5.0 basis points increase | (20,184) |  |  | (17,675) |
Conditional prepayment rate |  |  |
10% increase | $ | (11,103) |  |  | $ | (11,650) |
20% increase | (21,567) |  |  | (22,653) |
Annual default rate |  |  |
10% increase | $ | (995) |  |  | $ | (1,015) |
20% increase | (1,982) |  |  | (2,020) |
Discount rate |  |  |
100 basis points increase | $ | (6,805) |  |  | $ | (6,646) |
200 basis points increase | (13,202) |  |  | (12,925) |
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the effect of an adverse variation in a particular assumption on the fair value of our servicing rights is calculated while holding the other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Residual Investments and Residual Interests Classified as Debt Residual investments and residual interests classified as debt do not trade in active markets with readily observable prices, and there is limited observable market data for reference. The fair values of residual investments and residual interests classified as debt are determined using a discounted cash flow methodology. Management classifies residual investments and residual interests classified as debt as Level 3 due to the use of significant unobservable inputs in the fair value measurements. The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt:
| June 30, 2026 |  | December 31, 2025 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Residual investments |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 11.3% – 36.7% |  | 20.9% |  | 11.9% – 36.5% |  | 21.2% |  |  |  |
Annual default rate | 0.7% – 9.1% |  | 3.8% |  | 0.7% – 8.6% |  | 3.5% |  |  |  |
Discount rate | 5.3% – 30.0% |  | 13.2% |  | 5.1% – 30.0% |  | 11.9% |  |  |  |
Residual interests classified as debt |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 11.7% – 11.7% |  | 11.7% |  | 12.0% – 12.0% |  | 12.0% |  |  |  |
Annual default rate | 1.0% – 1.0% |  | 1.0% |  | 1.1% – 1.1% |  | 1.1% |  |  |  |
Discount rate | 9.5% – 9.5% |  | 9.5% |  | 9.5% – 9.5% |  | 9.5% |  |  |  |
The key assumptions are defined as follows: •Conditional prepayment rate— The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period for the pool of loans in the securitization. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Annual default rate— The annualized rate of borrowers who fail to remain current on their loans for the pool of loans in the securitization. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. •Discount rate— The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the residual investments and residual interests classified as debt. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. Loan Commitments We classify student loan commitments and personal loan commitments as Level 3 because the assets do not trade in an active market with readily observable prices and, as such, our valuations utilize significant unobservable inputs. Additionally, we classify IRLCs as Level 3, as our IRLCs are inherently uncertain and unobservable given that a home loan origination is contingent on a variety of factors. The following key unobservable inputs were used in the fair value measurements of our IRLCs, student loan commitments and personal loan commitments:
| June 30, 2026 |  | December 31, 2025 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
IRLCs |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 64.4% – 78.0% |  | 71.5% |  | 58.6% – 75.6% |  | 69.7% |  |  |  |
Student loan commitments |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 89.0% – 99.0% |  | 93.9% |  | 89.0% – 99.0% |  | 94.5% |  |  |  |
Personal loan commitments |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 97.2% – 99.4% |  | 97.8% |  | n/m |  | n/m |  |  |  |
___________________ (1)The aggregate amount of student loans we committed to fund was $592,540 and $437,470 as of June 30, 2026 and December 31, 2025, respectively. The aggregate amount of personal loans we committed to fund was $87,803 as of June 30, 2026. As of December 31, 2025, we had no personal loan commitments. See Note 11. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. The key assumption is defined as follows: •Loan funding probability— Our expectation of the percentage of IRLCs, student loan commitments or personal loan commitments which will become funded loans. 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, student loan commitments and personal loan commitments. An increase in the loan funding probabilities, in isolation, would result in an increase in a fair value measurement. The weighted average assumptions were weighted based on relative fair values. Financial Instruments Not Measured at Fair Value The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the condensed consolidated balance sheets:
|  |  | Fair Value
| Carrying Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
June 30, 2026 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | $ | 3,126,237 |  |  | $ | 3,126,237 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,126,237 |
Restricted cash and restricted cash equivalents(1) | 439,322 |  |  | 439,322 |  |  | — |  |  | — |  |  | 439,322 |
Loans(2) | 1,331,370 |  |  | — |  |  | — |  |  | 1,346,645 |  |  | 1,346,645 |
Other investments(3) | 149,668 |  |  | — |  |  | 149,668 |  |  | — |  |  | 149,668 |
Total assets | $ | 5,046,597 |  |  | $ | 3,565,559 |  |  | $ | 149,668 |  |  | $ | 1,346,645 |  |  | $ | 5,061,872 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits(4) | $ | 45,543,160 |  |  | $ | — |  |  | $ | 45,545,291 |  |  | $ | — |  |  | $ | 45,545,291 |
Debt(5) | 3,252,433 |  |  | 2,183,446 |  |  | 1,974,307 |  |  | — |  |  | 4,157,753 |
Stablecoin liability outstanding(6) | 52,484 |  |  | — |  |  | 52,484 |  |  | — |  |  | 52,484 |
Total liabilities | $ | 48,848,077 |  |  | $ | 2,183,446 |  |  | $ | 47,572,082 |  |  | $ | — |  |  | $ | 49,755,528 |
December 31, 2025 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | $ | 4,929,452 |  |  | $ | 4,929,452 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,929,452 |
Restricted cash and restricted cash equivalents(1) | 427,321 |  |  | 427,321 |  |  | — |  |  | — |  |  | 427,321 |
Loans(2) | 1,633,702 |  |  | — |  |  | — |  |  | 1,670,391 |  |  | 1,670,391 |
Other investments(3) | 146,204 |  |  | — |  |  | 146,204 |  |  | — |  |  | 146,204 |
Total assets | $ | 7,136,679 |  |  | $ | 5,356,773 |  |  | $ | 146,204 |  |  | $ | 1,670,391 |  |  | $ | 7,173,368 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits(4) | $ | 37,505,395 |  |  | $ | — |  |  | $ | 37,506,689 |  |  | $ | — |  |  | $ | 37,506,689 |
Debt(5) | 1,761,055 |  |  | 2,997,347 |  |  | 486,000 |  |  | — |  |  | 3,483,347 |
Total liabilities | $ | 39,266,450 |  |  | $ | 2,997,347 |  |  | $ | 37,992,689 |  |  | $ | — |  |  | $ | 40,990,036 |
___________________ (1)The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. (2)The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking, loans held at lower of amortized cost or fair value and secured loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. (3)Other investments include FRB stock and FHLB stock, which are presented within other assets in the condensed consolidated balance sheets. (4)The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate their carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on interest rates currently offered for deposits of similar remaining maturities. (5)The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The estimated fair value of our 2026 convertible notes was $440.7 million and $554.1 million as of June 30, 2026 and December 31, 2025, respectively. The estimated fair value of our 2029 convertible notes was $1.7 billion and $2.4 billion as of June 30, 2026 and December 31, 2025, respectively. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. (6)The carrying amount of our stablecoin liability approximates its fair value due to its on-demand nature and 1:1 backing of USD. Stablecoin is presented within Accounts payable, accruals and other liabilities in the condensed consolidated balance sheets. The related reserve assets backing the stablecoin liability are presented within Cash and cash equivalents on our condensed consolidated balance sheets. Nonrecurring Fair Value Measurements Investments in equity securities of $54,024 and $51,083 as of June 30, 2026 and December 31, 2025, respectively, which are presented within other assets in the condensed consolidated balance sheets, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. The fair value measurements are classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs in the fair value measurements. The balances were primarily composed of a $27,500 investment as well as a $20,000 investment as of June 30, 2026 and December 31, 2025, that are valued under the measurement alternative method.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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