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Accounts Receivables & Allowance for Doubtful Receivables | 9 Months Ended
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Sep. 30, 2025
Accounts Receivable, after Allowance for Credit Loss [Abstract] |
Accounts Receivable & Allowance for Doubtful Receivables | Accounts Receivable & Allowance for Doubtful Receivables The Company maintains an allowance for doubtful receivables that, in management’s judgment, reflects losses inherent in the portfolio. A provision for doubtful receivables is recorded to adjust the level of the allowance as deemed necessary by management. Changes in the allowance for doubtful trade receivables for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | 4,368 |  |  | $ | 5,507 |  |  | $ | 6,372 |  |  | $ | 2,868 |
Provision for bad debt | 896 |  |  | 2,271 |  |  | 1,701 |  |  | 5,048 |
Net write-offs |  |  |  |  |  |  |
Write-offs | (1,100) |  |  | (1,082) |  |  | (4,105) |  |  | (2,197) |
Recoveries | 72 |  |  | 309 |  |  | 268 |  |  | 1,286 |
Net write-offs | (1,028) |  |  | (773) |  |  | (3,837) |  |  | (911) |
Ending balance | $ | 4,236 |  |  | $ | 7,005 |  |  | $ | 4,236 |  |  | $ | 7,005 |
Changes in the allowance for doubtful finance receivables for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance | $ | 5,097 |  |  | $ | 3,192 |  |  | $ | 4,191 |  |  | $ | 3,428 |
Provision for bad debt | 25,325 |  |  | 835 |  |  | 27,631 |  |  | 3,113 |
Net write-offs |  |  |  |  |  |  |
Write-offs | (1,459) |  |  | (528) |  |  | (3,227) |  |  | (3,338) |
Recoveries | — |  |  | 58 |  |  | 368 |  |  | 354 |
Net write-offs | (1,459) |  |  | (470) |  |  | (2,859) |  |  | (2,984) |
Ending balance | $ | 28,963 |  |  | $ | 3,557 |  |  | $ | 28,963 |  |  | $ | 3,557 |
On September 10, 2025, Tricolor Holdings, LLC, and certain of its affiliates (collectively, "Tricolor") filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy court for the Northern District of Texas. Floorplan loans to Tricolor accounted for approximately $18.7 million of the Company's finance receivables as of September 30, 2025. There are allegations against Tricolor of significant fraud that are being investigated by Federal authorities. In regards to the collectability of our finance receivables, in the quarter ended September 30, 2025, the Company recorded a provision for credit losses of $18.7 million on finance receivables due from Tricolor. The loss was recorded in selling, general, and administrative expenses within the Condensed Consolidated Statement of Operations. In addition to the provision recorded related to the previously described Tricolor bankruptcy, the Company recorded an increase in the allowance for doubtful finance receivables at September 30, 2025 primarily due to reserves on specific borrowers exhibiting signs of stress and to a lesser degree, due to deterioration in collection experience on the Company's broader finance receivable portfolio.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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