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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received upon sale of an asset or the price paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the “exit price”). The Company uses a fair value hierarchy that prioritizes the inputs used in valuation techniques to measure fair value into three broad levels. The following is a brief description of each level:
•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs, including inputs that reflect the reporting entity’s own assumptions.
Financial Instruments Required To Be Carried At Fair Value
Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
 Fair Value Measurements as of September 30, 2025
 Level 1Level 2Level 3Total
Assets
Interest rate cap contracts$— $188 $— $188 
Liabilities
Interest rate swap agreements
— (19,040)— (19,040)
 Fair Value Measurements as of December 31, 2024
 Level 1Level 2Level 3Total
Assets
Interest rate cap contracts$— $252 $— $252 
Liabilities
Interest rate swap agreements— (18,360)— (18,360)
Derivative Contracts:
The Company uses derivative instruments to manage its exposure to fluctuations in interest rates and foreign currency exchange rates. Fair values of these derivative instruments are estimated using models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves, foreign currency exchange rates, and forward and spot prices for currencies.
Non-Recurring Fair Value Measurement:
Certain assets are measured at fair value on a nonrecurring basis. Goodwill and property and equipment are adjusted to fair value when an impairment charge is recognized. Such fair values are determined using various valuation techniques under Level 3 fair value hierarchy. REO assets are classified as held for sale at the lower of their carrying value or fair value less cost to sell. The fair value of the assets held for sale and estimated selling expenses were determined at the time of initial recognition and in each reporting period using Level 3 measurements based on appraised values using market comparables. The fair value estimate of the assets held for sale was approximately $23.5 million and $38.1 million as of September 30, 2025 and December 31, 2024, respectively.
Financial Instruments Not Required To Be Carried At Fair Value
The table below summarizes fair value estimates for the Company's financial instruments that are not required to be carried at fair value. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company.
The carrying amounts in the following table are included in the condensed consolidated statements of financial condition as of September 30, 2025 and December 31, 2024 (in thousands):
 September 30, 2025December 31, 2024
 
Fair Value Level
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Financial Assets
Cash and cash equivalents
Level 1
$172,488 $172,488 $199,865 $199,865 
Receivable portfolios, net
Level 3
4,270,016 4,547,021 3,776,369 4,052,645 
Other assets(2)
Level 2
114,096 114,096 128,674 128,674 
Financial Liabilities
Accounts payable and accrued liabilities
Level 2
259,884 259,884 233,545 233,545 
Global senior secured revolving credit facility
Level 2
927,250 927,250 865,365 865,365 
Senior secured notes(1)
Level 2
1,938,354 1,988,005 1,843,386 1,893,367 
Convertible senior notes due October 2025
Level 2
100,000 105,915 100,000 129,100 
Convertible senior notes due March 2029
Level 2
230,000 227,578 230,000 232,611 
Cabot securitisation senior facility
Level 2
342,899 342,899 319,137 319,137 
U.S. facility
Level 2
352,500 352,500 283,500 283,500 
Other borrowings
Level 2
70,270 70,270 64,904 64,904 
Other liabilities(2)
Level 2
92,247 92,247 97,731 97,731 
_______________________
(1)Carrying amount represents historical cost, adjusted for any related debt discount.
(2)Only includes financial instruments not required to be carried at fair value. Derivative instruments, which are required to be carried at fair value are excluded.
Receivable Portfolios:
The fair value of receivable portfolios is measured by discounting the estimated future cash flows generated by the Company’s proprietary forecasting models. The key inputs include the estimated future gross cash flow, average cost to collect, and discount rate. The determination of such inputs requires significant judgment, including assessing the assumed market participant’s cost structure, its determination of whether to include fixed costs in its valuation, its collection strategies, and determining the appropriate weighted average cost of capital. The Company evaluates the use of these key inputs on an ongoing basis and refines the data as it continues to obtain better information from market participants in the debt recovery and purchasing business.
Borrowings:
The Company’s convertible notes and senior secured notes are carried at historical cost, adjusted for the applicable debt discount. The fair value estimate for the convertible notes incorporates quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. The fair value of the senior secured notes is estimated using borrowing rates with similar terms, maturities, and credit ratings.
The carrying value of the Company’s senior secured revolving credit facility, securitisation senior facility, U.S. facility, and other borrowings approximates fair value due to the use of current market rates that are repriced frequently.
Others:
The Company’s cash and cash equivalents, certain other assets, accounts payable and accrued liabilities, and other liabilities approximate their fair values due to their short-term nature.