Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment:






















Three Months Ended March 31, 2024	Lending		Technology Platform		Financial Services		Reportable Segments Total(1)		Corporate/Other(1)		Total
Net revenue
Net interest income	$	266,536	$	501	$	119,713	$	386,750	$	15,968	$	402,718
Noninterest income(2)	63,940		93,865		30,838		188,643		53,634		242,277
Total net revenue	$	330,476	$	94,366	$	150,551	$	575,393	$	69,602	$	644,995
Servicing rights – change in valuation inputs or assumptions(3)	(5,226)		—		—		(5,226)
Residual interests classified as debt – change in valuation inputs or assumptions(4)	73		—		—		73
Directly attributable expenses	(117,604)		(63,624)		(113,377)		(294,605)
Contribution profit	$	207,719	$	30,742	$	37,174	$	275,635

Three Months Ended March 31, 2023	Lending		Technology Platform		Financial Services		Reportable Segments Total(1)		Corporate/Other(1)		Total
Net revenue
Net interest income (expense)	$	201,047	$	—	$	58,037	$	259,084	$	(23,074)	$	236,010
Noninterest income (expense)(2)	136,034		77,887		23,064		236,985		(837)		236,148
Total net revenue (loss)	$	337,081	$	77,887	$	81,101	$	496,069	$	(23,911)	$	472,158
Servicing rights – change in valuation inputs or assumptions(3)	(12,084)		—		—		(12,084)
Residual interests classified as debt – change in valuation inputs or assumptions(4)	89		—		—		89
Directly attributable expenses	(115,188)		(63,030)		(105,336)		(283,554)
Contribution profit (loss)	$	209,898	$	14,857	$	(24,235)	$	200,520

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(1)Within the Technology Platform segment, intercompany fees were $7,001 for the three months ended March 31, 2024 and $3,741 for the three months ended March 31, 2023. The equal and offsetting intercompany expenses are reflected within all three segments’ directly attributable expenses, as well as within expenses not allocated to segments. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below.

(2)Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense).

(3)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss), is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.

(4)Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.

The following table reconciles reportable segments total contribution profit to income (loss) before income taxes. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.


	Three Months Ended March 31,
		2024		2023
Reportable segments total contribution profit		$	275,635	$	200,520
Corporate/Other total net income (loss)		69,602		(23,911)
Intercompany expenses		7,001		3,741
Servicing rights – change in valuation inputs or assumptions		5,226		12,084
Residual interests classified as debt – change in valuation inputs or assumptions		(73)		(89)
Expenses not allocated to segments:
Share-based compensation expense		(55,082)		(64,226)
Employee-related costs(1)		(62,384)		(61,814)
Depreciation and amortization expense		(48,539)		(45,321)

Other corporate and unallocated expenses(2)		(97,160)		(57,043)
Income (loss) before income taxes		$	94,226	$	(36,059)

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(1)Includes compensation, benefits, restructuring charges, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.

(2)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate and FDIC insurance costs, foreign currency translation adjustments and transaction-related expenses.