INVESTMENTS

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Our investment portfolio is primarily funded by product premiums from the sale of our TCA F&I products. The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available-for-sale are as follows:


	As of March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In millions)
Short-term investments	$	6.6	$	—	$	—	$	6.6
U.S. Treasury	1.6		—		—		1.6
Municipal	4.8		0.1		—		4.9
Corporate	149.9		1.7		(0.1)		151.4
Mortgage and other asset-backed securities	199.8		1.8		(0.7)		200.9




Total investments	$	362.7	$	3.6	$	(0.8)	$	365.4


	As of December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In millions)
Short-term investments	$	14.4	$	—	$	—	$	14.4
U.S. Treasury	2.6		—		—		2.6
Municipal	10.6		0.1		(0.1)		10.6
Corporate	152.0		0.8		(0.9)		151.9
Mortgage and other asset-backed securities	170.1		0.6		(1.7)		169.1




Total investments	$	349.8	$	1.6	$	(2.7)	$	348.6

As of March 31, 2025 and December 31, 2024, the Company had $2.6 million and $2.8 million of accrued interest receivable, respectively, which is included in other current assets on the condensed consolidated balance sheets. The Company does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses.

A summary of amortized costs and fair value of investments by time to maturity, is as follows:


	As of March 31, 2025
	Amortized Cost		Fair Value
	(In millions)
Due in 1 year or less	$	6.6	$	6.6
Due in 1-5 years	103.6		104.7
Due in 6-10 years	49.9		50.4
Due after 10 years	2.8		2.8
Total by maturity	162.9		164.5
Mortgage and other asset-backed securities	199.8		200.9



Total investment securities	$	362.7	$	365.4

There were $0.2 million gross losses and $0.2 million gross gains realized related to the sale of available-for-sale debt securities carried at fair value for the three months ended March 31, 2025.

There were no gross losses and $0.2 million gross gains realized related to the sale of available-for-sale debt securities carried at fair value for the three months ended March 31, 2024.

The following tables summarize the amount of unrealized losses, defined as the amount by which the amortized cost exceeds fair value, and the related fair value of investments with unrealized losses. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was March 31, 2025.


	As of March 31, 2025
	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In millions)
Short-term investments	$	—	$	—	$	2.1	$	—	$	2.1	$	—
U.S. Treasury	—		—		0.8		—		0.8		—
Municipal	—		—		1.4		—		1.4		—
Corporate	11.3		(0.1)		6.0		(0.1)		17.4		(0.1)
Mortgage and other asset-backed securities	38.2		(0.2)		22.5		(0.4)		60.6		(0.7)
Total debt securities	$	49.5	$	(0.3)	$	32.9	$	(0.6)	$	82.4	$	(0.8)


	As of December 31, 2024
	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In millions)
Short-term investments	$	0.3	$	—	$	3.9	$	—	$	4.1	$	—
U.S. Treasury	1.1		—		1.4		—		2.5		—
Municipal	3.4		(0.1)		1.6		—		4.9		(0.1)
Corporate	64.3		(0.5)		26.6		(0.4)		90.9		(0.9)
Mortgage and other asset-backed securities	78.5		(1.0)		26.4		(0.7)		104.9		(1.7)
Total debt securities	$	147.5	$	(1.6)	$	59.8	$	(1.2)	$	207.3	$	(2.7)

The Company reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors including changes in credit ratings. The decline in fair value identified in the tables above are a result of widening market spreads and not a result of credit quality. Additionally, the Company has determined it has both the intent and ability to hold these investments until the market price recovers or until maturity and does not believe it will be required to sell the securities before maturity. Accordingly, no credit losses were recognized on these securities during the three months ended March 31, 2025.