v3.25.2
Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
The following table presents assets and liabilities measured at fair value and categorized in accordance with the fair value hierarchy:
December 31,June 30,
Level 20242025
Assets
Loans3$806,304 $1,019,504 
Beneficial interest assets
3176,848 266,761 
Line of credit receivable356,269 107,456 
Loan servicing assets327,439 32,443 
Notes receivable and residual certificates322,055 54,708 
Interest rate caps(1)
21,864 493 
Total assets$1,090,779 $1,481,365 
Liabilities
Payable to securitization note holders3$87,321 $65,152 
Trailing fee liabilities34,614 4,958 
Beneficial interest liabilities310,089 10,532 
Loan servicing liabilities31,180 1,750 
Total liabilities$103,204 $82,392 
__________
(1) The fair value of interest rate caps is determined based on the present value of the estimated future cash flows over the contract term using observable market-based inputs as of the valuation date, including implied interest rates.
Schedule of Fair Value by Classes of Loans Held by the Company The following table presents the fair value of classes of loans included in the Company’s condensed consolidated balance sheets as of December 31, 2024 and June 30, 2025:
December 31,June 30,
20242025
Loans held-for-sale$405,812 $445,787 
Loans held-for-investment297,543 497,867 
Loans held in consolidated securitization102,949 75,850 
Total
$806,304 $1,019,504 
Schedule of Significant Unobservable Inputs
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held-for-investment and held-for-sale, excluding loans held in consolidated securitization:
December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average (1)
MinimumMaximum
Weighted-Average (1)
Discount rate9.75 %22.37 %11.91 %5.22 %15.08 %9.78 %
Credit risk rate
0.01 %93.12 %17.87 %0.01 %91.50 %13.50 %
Prepayment rate
0.45 %89.07 %33.07 %0.45 %95.25 %34.76 %
_________
(1) Unobservable inputs were weighted by relative fair value.
The following table presents quantitative information about the significant unobservable inputs implied for the Company’s Level 3 fair value measurements for loans held in consolidated securitization, which is determined by the sum of the fair value of the related securitization notes and residual certificates, and corroborated with a discounted cash flow model, similar to the one used for other loans held on the condensed consolidated balance sheet:
December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average (1)
MinimumMaximum
Weighted-Average (1)
Discount rate5.96 %15.25 %9.59 %5.82 %15.25 %10.19 %
Credit risk rate
0.67 %37.70 %15.66 %0.67 %37.70 %15.86 %
Prepayment rate
6.73 %89.84 %41.51 %6.73 %89.84 %40.91 %
_________
(1) Unobservable inputs were weighted by relative fair value.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements related to the line of credit receivable:

December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average
MinimumMaximum
Weighted-Average
Discount rate6.75%6.75%6.75%6.75 %6.75 %6.75 %
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements related to note receivable, residual certificates, and payable to securitization note holders:
December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average (1)
MinimumMaximum
Weighted-Average (1)
Notes receivable and residual certificates
Discount rate9.60 %22.37 %12.59 %6.72 %13.08 %11.84 %
Credit risk rate
0.54 %50.28 %19.00 %0.43 %50.28 %20.41 %
Prepayment rate
4.61 %94.53 %35.72 %4.11 %95.77 %32.44 %
Payable to securitization note holders
Discount rate5.96 %10.98 %8.52 %5.82 %10.81 %9.29 %
Credit risk rate
0.67 %37.70 %15.66 %0.67 %37.70 %15.86 %
Prepayment rate
6.73 %89.84 %41.51 %6.73 %89.84 %40.91 %
_________
(1)Unobservable inputs were weighted by relative fair value.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s fair value measurements of beneficial interests as of December 31, 2024 and June 30, 2025:
December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average(1)
MinimumMaximum
Weighted-Average(1)
Beneficial interest assets
Discount rate6.75 %13.75 %13.53 %6.75 %13.75 %13.38 %
Credit risk rate spread(2)
(4.00)%12.60 %1.32 %(6.65)%9.40 %0.71 %
Beneficial interest liabilities
Discount rate13.75 %13.75 %13.75 %13.75 %13.75 %13.75 %
Credit risk rate spread(2)
(0.24)%18.68 %9.78 %(3.29)%7.90 %2.67 %
_________
(1) Unobservable inputs were weighted by relative fair value.
(2) Expressed as a percentage of cumulative net loss expectations as of the valuation date compared to the initial expectations as of the origination date or date of loan sale.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for trailing fee liabilities:

December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average (1)
MinimumMaximum
Weighted-Average (1)
Discount rate9.55 %22.37 %12.54 %5.22 %15.08 %11.34 %
Credit risk rate
0.02 %88.53 %18.97 %0.03 %67.59 %19.33 %
Prepayment rate
1.51 %95.80 %35.50 %1.52 %95.96 %34.34 %
_________
(1) Unobservable inputs were weighted by relative fair value.
Schedule of Sensitivity Analysis of Fair Value
The following table presents the sensitivity of the fair value of loans held-for-sale and held-for-investment, excluding the loans in consolidated securitization, to adverse changes in key assumptions used in the valuation model as of December 31, 2024 and June 30, 2025:
December 31,June 30,
20242025
Fair value of loans held-for-sale and held-for-investment$703,355 $943,654 
Discount rates
100 basis point increase(9,048)(11,755)
200 basis point increase(17,881)(23,060)
Expected credit loss rates on underlying loans
10% adverse change(9,135)(9,675)
20% adverse change(18,129)(19,001)
Expected prepayment rates
10% adverse change(1,899)*
20% adverse change(3,783)*
_________
* Immaterial

The table below presents the fair value sensitivity of loans in consolidated securitization to adverse changes in key assumptions. The fair value of loans in consolidated securitization is not sensitive to adverse changes in discount rates and prepayment rates as such changes do not result in a material impact on the fair value as of December 31, 2024 and June 30, 2025.
December 31,June 30,
20242025
Fair value of loans held in consolidated securitization
$102,949 $75,850 
Expected credit loss rates on underlying loans
10% adverse change(1,799)*
20% adverse change(3,577)*
_________
* Immaterial
The following table presents the sensitivity of beneficial interest assets and liabilities to adverse changes in key assumptions used in the valuation model as of December 31, 2024 and June 30, 2025. Adverse changes in discount rates do not result in a material impact to the fair value of beneficial interest liabilities as of December 31, 2024 and June 30, 2025.
Significant Recurring Level 3 Fair Value Input Sensitivity
December 31,June 30,
20242025
Fair value of beneficial interest assets$176,848 $266,761 
Discount rate
100 basis point increase(3,247)(3,840)
200 basis point increase(6,384)(7,559)
Expected credit risk rate spreads on underlying loans
10% adverse change(44,356)(58,065)
20% adverse change(89,605)(115,145)
Fair value of beneficial interest liabilities$10,089 $10,532 
Expected credit risk rate spreads on underlying loans
10% adverse change4,720 23,371 
20% adverse change10,259 46,370 
Schedule of Rollforward of Level 3 Assets
The following tables include a rollforward of the loans classified within Level 3 of the fair value hierarchy:
Loans Held-for-Sale
Loans Held-for-InvestmentLoans Held in Consolidated SecuritizationTotal
Fair value at March 31, 2024$763,314 $160,229 $157,322 $1,080,865 
Reclassification of loans(1)
(3,189)3,189 — 
Purchases and originations of loans(1)
504,582 64,789 — 569,371 
Sale of loans(1)
(672,325)— — (672,325)
Purchase of loans for immediate resale(1)
268,888 — — 268,888 
Immediate resale of loans(1)
(268,888)— — (268,888)
Repayments received(1)
(64,665)(30,794)(12,376)(107,835)
Charge-offs and changes in fair value recorded in earnings(26,433)(13,342)(9,826)(49,601)
Other changes(3,362)3,515 — 153 
Fair value at June 30, 2024$497,922 $187,586 $135,120 $820,628 
_________
(1)    Represents the principal balance.
Loans Held-for-Sale
Loans Held-for-InvestmentLoans Held in Consolidated SecuritizationTotal
Fair value at December 31, 2023$830,574 $146,768 $179,071 $1,156,413 
Reclassification of loans(1)
(3,189)3,189 — — 
Purchases and originations of loans(1)(2)
1,083,668 110,941 — 1,194,609 
Sale of loans(1)
(1,235,663)— — (1,235,663)
Purchase of loans for immediate resale(1)
486,345 — — 486,345 
Immediate resale of loans(1)
(486,345)— — (486,345)
Repayments received(1)
(119,973)(55,569)(24,714)(200,256)
Charge-offs and changes in fair value recorded in earnings(52,673)(23,603)(19,237)(95,513)
Other changes(4,822)5,860 — 1,038 
Fair value at June 30, 2024$497,922 $187,586 $135,120 $820,628 
_________
(1)    Represents the principal balance.
(2)    Purchase activity includes an immaterial unpaid principal balance related to securitization clean-up calls during the six months ended June 30, 2024.
Loans Held-for-SaleLoans Held-for-InvestmentLoans Held in Consolidated SecuritizationTotal
Fair value at March 31, 2025$347,749 $378,012 $88,916 $814,677 
Purchases and originations of loans (1)
701,155 228,015 — 929,170 
Sale of loans(1)
(548,007)(18,070)— (566,077)
Purchase of loans for immediate resale(1)
1,933,901 — — 1,933,901 
Immediate resale of loans(1)
(1,933,901)— — (1,933,901)
Repayments received(1)
(46,398)(71,013)(9,652)(127,063)
Charge-offs and changes in fair value recorded in earnings(8,961)(30,429)(3,414)(42,804)
Other changes249 11,352 — 11,601 
Fair value at June 30, 2025$445,787 $497,867 $75,850 $1,019,504 
_________
(1)    Represents the principal balance.


Loans Held-for-SaleLoans Held-for-InvestmentLoans Held in Consolidated SecuritizationTotal
Fair value at December 31, 2024
$405,812 $297,543 $102,949 $806,304 
Purchases and originations of loans (1)
1,271,809 377,898 — 1,649,707 
Sale of loans(1)
(1,119,703)(19,688)— (1,139,391)
Purchase of loans for immediate resale(1)
2,708,533 — — 2,708,533 
Immediate resale of loans(1)
(2,708,533)— — (2,708,533)
Repayments received(1)
(86,302)(126,778)(19,932)(233,012)
Charge-offs and changes in fair value recorded in earnings(24,683)(51,402)(7,167)(83,252)
Other changes(1,146)20,294 — 19,148 
Fair value at June 30, 2025$445,787 $497,867 $75,850 $1,019,504 
_________
(1)    Represents the principal balance.
The following tables present a rollforward of the line of credit receivable classified by the Company within Level 3 of the fair value hierarchy:
Line of Credit Receivable
Fair value at March 31, 2024$— 
Issuances8,261 
Changes in fair value recorded in earnings44 
Fair value at June 30, 2024$8,305 

Line of Credit Receivable
Fair value at December 31, 2023$— 
Issuances8,261 
Changes in fair value recorded in earnings44 
Fair value at June 30, 2024$8,305 

Line of Credit Receivable
Fair value at March 31, 2025$81,780 
Issuances24,983 
Changes in fair value recorded in earnings563 
Changes in accrued interest130 
Fair value at June 30, 2025$107,456 
Line of Credit Receivable
Fair value at December 31, 2024$56,269 
Issuances49,839 
Changes in fair value recorded in earnings1,063 
Changes in accrued interest285 
Fair value at June 30, 2025$107,456 
The following tables include a rollforward of the notes receivable and residual certificates and payables to securitization note holders related to securitization transactions classified by the Company within Level 3 of the fair value hierarchy:

Notes Receivable and Residual Certificates
Payable to
Securitization Note
Holders
Fair value at March 31, 2024$13,376 $129,092 
Repayments and settlements(1,456)(14,882)
Changes in fair value recorded in earnings(278)(558)
Fair value at June 30, 2024$11,642 $113,652 

Notes Receivable and Residual CertificatesPayable to
Securitization Note
Holders
Fair value at December 31, 2023$14,847 $141,416 
Repayments and settlements(2,681)(28,446)
Changes in fair value recorded in earnings(524)682 
Fair value at June 30, 2024$11,642 $113,652 

Notes Receivable and Residual CertificatesPayable to
Securitization Note
Holders
Fair value at March 31, 2025$19,471 $75,904 
Additions
38,355 — 
Repayments and settlements(3,836)(10,577)
Changes in fair value recorded in earnings718 (175)
Fair value at June 30, 2025$54,708 $65,152 

Notes Receivable and Residual Certificates
Payable to
Securitization Note
Holders
Fair value at December 31, 2024$22,055 $87,321 
Additions38,355 — 
Repayments and settlements(6,521)(22,021)
Changes in fair value recorded in earnings819 (148)
Fair value at June 30, 2025$54,708 $65,152 
The following tables presents a rollforward of beneficial interest assets and liabilities:


Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at March 31, 2024$62,214 $8,485 
Acquisition of beneficial interests
41,124 — 
Settlement of beneficial interests
(1,729)(1,658)
Changes in fair value recorded in earnings(3,805)4,371 
Fair value at June 30, 2024$97,804 $11,198 

Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at December 31, 2023$41,012 $4,221 
Acquisition of beneficial interests
71,400 — 
Settlement of beneficial interests
(1,729)(2,367)
Changes in fair value recorded in earnings(12,879)9,344 
Fair value at June 30, 2024$97,804 $11,198 
Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at March 31, 2025$216,578 $4,032 
Acquisition of beneficial interests
71,432 — 
Settlement of beneficial interests, net
(27,133)(5,672)
Changes in fair value recorded in earnings5,884 12,172 
Fair value at June 30, 2025$266,761 $10,532 

Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at December 31, 2024$176,848 $10,089 
Acquisition of beneficial interests
109,870 — 
Settlement of beneficial interests, net
(43,441)(11,664)
Changes in fair value recorded in earnings23,484 12,107 
Fair value at June 30, 2025$266,761 $10,532 
Schedule of Aggregate Fair Value and Principal Outstanding of All Loans And Loans 90 Days or More Past Due
The following table presents the aggregate fair value and aggregate principal outstanding of all loans and loans that were 90 days or more past due included in the condensed consolidated balance sheets:

LoansLoans > 90 Days Past Due
December 31,June 30,December 31,June 30,
2024202520242025
Outstanding principal balance$858,440 $1,086,542 $11,236 $9,067 
Net fair value and accrued interest adjustments(52,136)(67,038)(9,638)(6,500)
Fair value(1)(2)
$806,304 $1,019,504 $1,598 $2,567 
_________
(1)     Includes $285.5 million and $378.6 million of auto loans at fair value as of December 31, 2024 and June 30, 2025, respectively, of which an immaterial amount are 90 days or more past due as of December 31, 2024 and June 30, 2025. Also includes $54.3 million and $132.9 million of HELOCs at fair value as of December 31, 2024 and June 30, 2025, respectively, of which immaterial amounts are 90 days or more past due as of December 31, 2024 and June 30, 2025, respectively.
(2)     The fair value of loans in nonaccrual status was immaterial as of December 31, 2024 and June 30, 2025.
Schedule of Rollforward of Level 3 Liabilities
The following tables include a rollforward of the notes receivable and residual certificates and payables to securitization note holders related to securitization transactions classified by the Company within Level 3 of the fair value hierarchy:

Notes Receivable and Residual Certificates
Payable to
Securitization Note
Holders
Fair value at March 31, 2024$13,376 $129,092 
Repayments and settlements(1,456)(14,882)
Changes in fair value recorded in earnings(278)(558)
Fair value at June 30, 2024$11,642 $113,652 

Notes Receivable and Residual CertificatesPayable to
Securitization Note
Holders
Fair value at December 31, 2023$14,847 $141,416 
Repayments and settlements(2,681)(28,446)
Changes in fair value recorded in earnings(524)682 
Fair value at June 30, 2024$11,642 $113,652 

Notes Receivable and Residual CertificatesPayable to
Securitization Note
Holders
Fair value at March 31, 2025$19,471 $75,904 
Additions
38,355 — 
Repayments and settlements(3,836)(10,577)
Changes in fair value recorded in earnings718 (175)
Fair value at June 30, 2025$54,708 $65,152 

Notes Receivable and Residual Certificates
Payable to
Securitization Note
Holders
Fair value at December 31, 2024$22,055 $87,321 
Additions38,355 — 
Repayments and settlements(6,521)(22,021)
Changes in fair value recorded in earnings819 (148)
Fair value at June 30, 2025$54,708 $65,152 
The following tables presents a rollforward of beneficial interest assets and liabilities:


Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at March 31, 2024$62,214 $8,485 
Acquisition of beneficial interests
41,124 — 
Settlement of beneficial interests
(1,729)(1,658)
Changes in fair value recorded in earnings(3,805)4,371 
Fair value at June 30, 2024$97,804 $11,198 

Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at December 31, 2023$41,012 $4,221 
Acquisition of beneficial interests
71,400 — 
Settlement of beneficial interests
(1,729)(2,367)
Changes in fair value recorded in earnings(12,879)9,344 
Fair value at June 30, 2024$97,804 $11,198 
Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at March 31, 2025$216,578 $4,032 
Acquisition of beneficial interests
71,432 — 
Settlement of beneficial interests, net
(27,133)(5,672)
Changes in fair value recorded in earnings5,884 12,172 
Fair value at June 30, 2025$266,761 $10,532 

Beneficial Interest Assets
Beneficial Interest Liabilities
Fair value at December 31, 2024$176,848 $10,089 
Acquisition of beneficial interests
109,870 — 
Settlement of beneficial interests, net
(43,441)(11,664)
Changes in fair value recorded in earnings23,484 12,107 
Fair value at June 30, 2025$266,761 $10,532 
Schedule of Level 3 Fair Value Assumptions for Loan Servicing Assets and Liabilities
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan servicing assets and liabilities:
December 31, 2024June 30, 2025
MinimumMaximum
Weighted-Average (1)
MinimumMaximum
Weighted-Average (1)
Discount rate13.00 %20.00 %17.14 %13.00 %20.00 %17.27 %
Credit risk rate
0.08 %61.96 %16.05 %0.09 %61.96 %16.61 %
Market-servicing rate (2)(3)
0.62 %3.70 %0.62 %0.62 %3.70 %0.62 %
Prepayment rate
2.17 %96.90 %36.43 %2.59 %96.90 %35.52 %
_________
(1)Unobservable inputs were weighted by relative fair value.
(2)Excludes ancillary fees that would be passed on to a third-party servicer.
(3)Expressed as a percentage of the outstanding principal balance for auto loans of 3.70% as of both December 31, 2024 and June 30, 2025, and 0.62% for personal loans as of both December 31, 2024 and June 30, 2025.
Schedule of Fair Value Sensitivity of Loan Servicing Assets and Liabilities to Adverse Changes in Key Assumptions
The table below presents the fair value sensitivity of loan servicing assets to adverse changes in key assumptions. The fair value of loan servicing assets and liabilities is not sensitive to adverse changes in discount rates and prepayment rates as such changes do not result in a material impact on the fair value as of December 31, 2024 and June 30, 2025. Adverse changes in market-servicing rates do not result in a material impact to the fair value of loan servicing liabilities as of December 31, 2024 and June 30, 2025.
December 31,June 30,
20242025
Fair value of loan servicing assets$27,439 $32,443 
Expected market-servicing rates
10% market-servicing rates increase(6,931)(7,538)
20% market-servicing rates increase(14,098)(15,074)
Schedule of Servicing Liabilities at Fair Value Rollforward
The following tables present a rollforward of the loan servicing assets and liabilities classified by the Company within Level 3 of the fair value hierarchy:
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at March 31, 2024$26,753 $1,585 
Sale of loans2,952 1 
Changes in fair value recorded in earnings(3,915)(363)
Fair value at June 30, 2024$25,790 $1,223 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2023$28,092 $2,038 
Sale of loans5,899 2 
Changes in fair value recorded in earnings(8,201)(817)
Fair value at June 30, 2024$25,790 $1,223 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at March 31, 2025
$28,886 $1,487 
Sale of loans8,107 601 
Changes in fair value recorded in earnings(4,550)(338)
Fair value at June 30, 2025$32,443 $1,750 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2024$27,439 $1,180 
Sale of loans13,644 1,193 
Changes in fair value recorded in earnings(8,640)(623)
Fair value at June 30, 2025$32,443 $1,750 
Schedule of Servicing Assets at Fair Value Rollforward
The following tables present a rollforward of the loan servicing assets and liabilities classified by the Company within Level 3 of the fair value hierarchy:
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at March 31, 2024$26,753 $1,585 
Sale of loans2,952 1 
Changes in fair value recorded in earnings(3,915)(363)
Fair value at June 30, 2024$25,790 $1,223 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2023$28,092 $2,038 
Sale of loans5,899 2 
Changes in fair value recorded in earnings(8,201)(817)
Fair value at June 30, 2024$25,790 $1,223 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at March 31, 2025
$28,886 $1,487 
Sale of loans8,107 601 
Changes in fair value recorded in earnings(4,550)(338)
Fair value at June 30, 2025$32,443 $1,750 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2024$27,439 $1,180 
Sale of loans13,644 1,193 
Changes in fair value recorded in earnings(8,640)(623)
Fair value at June 30, 2025$32,443 $1,750 
Schedule of Rollforward of Level 3 Liabilities
The following tables include a rollforward of trailing fee liabilities classified by the Company within Level 3 of the fair value hierarchy:

Trailing Fee Liabilities
Fair value at March 31, 2024$4,244 
Issuances573 
Repayments and settlements(648)
Changes in fair value recorded in earnings73 
Fair value at June 30, 2024$4,242 

Trailing Fee Liabilities
Fair value at December 31, 2023$4,251 
Issuances1,189 
Repayments and settlements(1,311)
Changes in fair value recorded in earnings113 
Fair value at June 30, 2024$4,242 
Trailing Fee Liabilities
Fair value at March 31, 2025$4,574 
Issuances1,086 
Repayments and settlements(733)
Changes in fair value recorded in earnings    31 
Fair value at June 30, 2025$4,958 
Trailing Fee Liabilities
Fair value at December 31, 2024$4,614 
Issuances1,786 
Repayments and settlements(1,336)
Changes in fair value recorded in earnings    (106)
Fair value at June 30, 2025$4,958