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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value of Loans Receivable and Asset-Backed Notes

The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown:


	June 30, 2025				December 31, 2024
(in thousands)	Unpaid Principal Balance		Fair Value		Unpaid Principal Balance		Fair Value
Assets


Loans Receivable at Fair Value	$	2,672,483	$	2,755,470	$	2,716,992	$	2,778,523

Liabilities
Asset-backed notes	$	628,961	$	617,904	$	1,103,002	$	1,080,690

Schedule of Quantitative Information About Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for Loans Receivable at Fair Value. The personal loans receivable balance at fair value as of June 30, 2025, consists of $2,536.2 million of unsecured personal loans receivable and $219.3 million of secured personal loans receivable.


	June 30, 2025			December 31, 2024
Personal Loans Receivable	Minimum	Maximum	Weighted Average (2)	Minimum	Maximum	Weighted Average (2)
Remaining cumulative charge-offs (1)	9.30%	51.83%	11.96%	8.92%	54.72%	11.68%
Remaining cumulative prepayments (1)	0.00%	37.49%	24.82%	0.00%	34.55%	24.70%

Average life (years)	0.31	1.66	1.08	0.29	1.74	1.11
Discount rate	7.03%	7.03%	7.03%	7.92%	7.92%	7.92%

(1) Figure disclosed as a percentage of outstanding principal balance.

(2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms).

The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for derivative instruments presented within Other Assets in the Condensed Consolidated Balance Sheets (Unaudited):


	June 30, 2025			December 31, 2024
	Low	High	Weighted Average	Low	High	Weighted Average
Remaining cumulative charge-offs	—%	32.75%	12.53%	—%	30.92%	10.43%
Remaining cumulative prepayments	1.31%	33.00%	15.04%	1.53%	42.63%	21.16%
Average life (years)	0.42	1.72	1.45	0.44	2.05	1.45
Discount rate	14.58%	14.58%	14.58%	17.29%	17.29%	17.29%

Schedule of Reconciliation of Loans Receivable at Fair Value Using Significant Unobservable Inputs

The table below presents a reconciliation of Loans Receivable at Fair Value on a recurring basis using significant unobservable inputs:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Balance – beginning of period	$	2,770,486	$	2,841,525	$	2,778,523	$	2,962,352

Principal disbursements	658,955		678,040		1,318,353		1,262,202
Principal and interest payments from members	(582,313)		(591,964)		(1,163,920)		(1,187,997)
Other loan sales	—		(19,234)		—		(54,091)
Gross charge-offs	(100,745)		(101,545)		(198,942)		(204,582)
Credit card receivables reclassified as held for sale	—		(55,720)		—		(55,720)
Net increase (decrease) in fair value	9,087		(36,692)		21,456		(7,754)
Balance – end of period	$	2,755,470	$	2,714,410	$	2,755,470	$	2,714,410

Schedule of Carry Value and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy:


	June 30, 2025
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	96,816	$	96,816	$	96,816	$	—	$	—
Restricted cash	131,406		131,406		131,406		—		—



Liabilities
Accounts payable	5,986		5,986		5,986		—		—
Secured financing (Note 8)	335,336		335,336		—		335,336		—
Asset-backed borrowings at amortized cost (Note 8)	1,600,246		1,607,408		—		1,252,168		355,240
Corporate financing (Note 8)	222,500		222,534		—		222,534		—


	December 31, 2024
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	59,968	$	59,968	$	59,968	$	—	$	—
Restricted cash	154,657		154,657		154,657		—		—


Liabilities
Accounts payable	6,586		6,586		6,586		—		—
Secured financing (Note 8)	539,204		537,646		—		537,646		—
Asset-backed borrowings at amortized cost (Note 8)	982,582		984,687		—		481,655		503,032
Corporate financing (Note 8)	235,768		236,105		—		236,105		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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