XML 20 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Other Receivables
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Other Receivables Other Receivables
As of September 30, 2025 and December 31, 2024, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following:

(in thousands)September 30, 2025December 31, 2024
Delinquency fees receivable, net
$5,109 $993 
Receivables from merchants
525 698 
Receivables from originating partner
1,789 1,938 
Other receivables, net$7,423 $3,629 

Delinquency fees are comprised of late payment fees and failed payment fees. Late payment fees are applied to delinquent principal installments. Failed payment fees are applied when a payment method fails when attempting to make an installment payment. Delinquency fees are subject to regulations within specific state jurisdictions and are considered to be the same number of days delinquent as the principal payment associated with the fee. Delinquency fees receivable, net, is comprised of outstanding delinquency fees that we reasonably expect to collect from our consumers. As of September 30, 2025 and December 31, 2024, gross delinquency fees receivable totaled $17.0 million and $6.3 million, respectively.

Our delinquency fees receivable are considered past due when the principal associated with the order has not been received within one calendar day of when they are due in accordance with the agreed upon contractual terms. We maintain an allowance for other credit losses at a level necessary to absorb expected credit losses on delinquency fees receivable from our consumers. Any amounts delinquent after 90 days are charged off with an offsetting reversal to the allowance for other credit losses. Any adjustment to the allowance for other credit losses is recognized in net income through an offset to total revenue on our consolidated statements of operations and comprehensive income. Payments recovered after 90 days are recognized as a reduction to the allowance for other credit losses in the period the receivable is recovered.

The activity in the allowance for other credit losses related to delinquency fees, including the provision for other credit losses, charge-offs, and recoveries for the three and nine months ended September 30, 2025 and 2024 was as follows:

For the three months ended September 30, For the nine months ended September 30,
(in thousands)2025202420252024
Balance at beginning of period$5,249 $1,526 $5,276 $1,272 
Provision for other credit losses12,291 2,341 20,814 4,940 
Charge-offs(6,174)(1,382)(15,259)(3,994)
Recoveries of charged-off receivables511 108 1,046 375 
Balance at end of period$11,877 $2,593 $11,877 $2,593 

Due to the nature of delinquency fees, we monitor the credit quality of the receivables based on delinquency status. Delinquency fees receivable were $17.0 million delinquent as of September 30, 2025, and $6.0 million delinquent and $0.3 million current as of December 31, 2024. Net delinquency fee charge-offs by year of origination for the nine months ended September 30, 2025 was as follows:

(in thousands)20252024202320222021Total
Current period gross charge-offs$(8,763)$(6,473)$(1)$(22)$— $(15,259)
Current period recoveries249 621 74 45 57 1,046 
Current period net charge-offs$(8,514)$(5,852)$73 $23 $57 $(14,213)

Receivables from merchants primarily represents amounts due to us from our long-term lending partner that will be used to settle outstanding merchant accounts payable. Receivables from originating partner represents amounts due to us from our originating partner that will be used to settle outstanding merchant accounts payable on orders originated by them. We do not expect to incur losses on receivables from merchants or our originating partner therefore, there is no allowance for credit losses recorded.