Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Note 5. Allowance for Credit Losses

Our allowance for credit losses represents our current estimate of expected credit losses over the remaining contractual life of certain financial assets, including credit cards as well as commercial and consumer banking loans, which relate to our Financial Services segment, and accounts receivables primarily related to our Technology Platform segment. Given our methods of collecting funds on servicing receivables, our historical experience of infrequent write offs, and that we have not observed meaningful changes in our counterparties’ abilities to pay, we determined that the future exposure to credit losses on

servicing related receivables was immaterial. See our Annual Report on Form 10-K for further discussion of the methodology and policies for determining our allowance for credit losses for each of our loan portfolios.

The following table presents changes in our allowance for credit losses:


	Credit Card(1)		Commercial and Consumer Banking(1)		Accounts Receivable(1)
Three Months Ended June 30, 2026
Balance at March 31, 2026	$	50,064	$	1,870	$	2,682
Provision for credit losses(2)	13,708		47		167
Net charge-offs(3)	(9,212)		(18)		(292)
Balance at June 30, 2026	$	54,560	$	1,899	$	2,557
Three Months Ended June 30, 2025
Balance at March 31, 2025	$	42,179	$	2,190	$	2,789
Provision for credit losses(2)	9,901		134		389
Net charge-offs(3)	(6,565)		(1)		—
Balance at June 30, 2025	$	45,515	$	2,323	$	3,178
Six Months Ended June 30, 2026
Balance at December 31, 2025	$	49,205	$	1,729	$	2,998
Provision for credit losses(2)	22,214		436		109
Net charge-offs(3)	(16,859)		(266)		(550)
Balance at June 30, 2026	$	54,560	$	1,899	$	2,557
Six Months Ended June 30, 2025
Balance at December 31, 2024	$	44,350	$	2,334	$	2,444
Provision for credit losses(2)	15,720		(7)		767
Net charge-offs(3)	(14,555)		(4)		(33)
Balance at June 30, 2025	$	45,515	$	2,323	$	3,178

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(1)Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment, at amortized cost in the condensed consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the condensed consolidated balance sheets.

(2)The provision for credit losses on credit cards and commercial and consumer banking loans is presented within provision for credit losses in the condensed consolidated statements of operations and comprehensive income. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income.

(3)During the three and six months ended June 30, 2026 and , recoveries of amounts previously reserved related to credit cards were $1,516 and $2,819, respectively. During the three and six months ended June 30, 2025, recoveries of amounts previously reserved related to credit cards were $805 and $1,569, respectively. There were immaterial recoveries of amounts previously reserved related to commercial and consumer banking loans during the three and six months ended June 30, 2026 and 2025. During the three and six months ended June 30, 2026, recoveries of amounts previously reserved related to accounts receivable were $38 and $2,064, respectively. During the three and six months ended June 30, 2025, recoveries of amounts previously reserved related to accounts receivable were $300 and $602, respectively.

Credit card: During the three and six months ended June 30, 2026, accrued interest receivables written off by reversing interest income were $2.4 million and $4.4 million, respectively. During the three and six months ended June 30, 2025, accrued interest receivables written off by reversing interest income were $1.5 million and $3.4 million, respectively.