| Leased Merchandise, Net |
Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands):
| | | | | | | | | | | | | | | | | | | As of June 30, | | As of
December 31, | | 2025 | | 2024 | | 2024 | | Leased merchandise | $ | 260,373 | | | $ | 364,831 | | | $ | 319,444 | | | Processing fees | (2,229) | | | (3,824) | | | (2,960) | | Merchant partner (discounts) and premiums, net | (34) | | | 1,851 | | | 493 | | | Accumulated depreciation | (87,754) | | | (117,145) | | | (108,283) | | | Leased merchandise, before allowance for lease losses | 170,356 | | | 245,713 | | | 208,694 | | | Less allowance for lease losses | (69,667) | | | (102,778) | | | (80,257) | | | Leased merchandise, net | $ | 100,689 | | | $ | 142,935 | | | $ | 128,437 | |
The following table details the changes in the allowance for lease losses (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | Balance at beginning of period | $ | 68,785 | | | $ | 95,127 | | | $ | 80,257 | | | $ | 95,127 | | | Provision for lease losses | 32,543 | | | 47,653 | | | 60,105 | | | 90,663 | | | Charge-offs | (33,633) | | | (41,666) | | | (75,007) | | | (86,679) | | | Recoveries | 1,972 | | | 1,664 | | | 4,312 | | | 3,667 | | | Balance at end of period | $ | 69,667 | | | $ | 102,778 | | | $ | 69,667 | | | $ | 102,778 | |
|