v3.25.4
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following table summarizes information about the assets and liabilities that are measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024:
September 30, 2025
Carrying ValueFair value
Level 1Level 2
Level 3(A)
Total
Assets
Cash and cash equivalents$1,097,123 $1,097,123 $— $— $1,097,123 
Restricted cash64,590 64,590 — — 64,590 
Digital assets(B)
108,680 110,185 — — 110,185 
Distressed asset claims(C)
3,068 — — 3,068 3,068 
Marketable securities, at fair value(D)
239,694 — 201,386 38,308 239,694 
Loans held for sale, at fair value389,032 — — 389,032 389,032 
Loan servicing assets, at fair value100,000 — — 100,000 100,000 
Treasury note futures11 11 — — 11 
Total assets
$2,002,198 $1,271,909 $201,386 $530,408 $2,003,703 
Liabilities
Digital asset collateral repayment obligation(E)
$85,016 $85,016 $— $— $85,016 
Certificate repayment obligation(E)
18,962 — 18,962 — 18,962 
Total liabilities
$103,978 $85,016 $18,962 $— $103,978 
December 31, 2024
Carrying ValueFair value
Level 1Level 2
Level 3(A)
Total
Assets
Cash and cash equivalents$287,256 $287,256 $— $— $287,256 
Restricted cash57,777 57,777 — — 57,777 
Digital assets(B)
86,036 86,036 — — 86,036 
Distressed asset claims(C)
7,589 — — 7,589 7,589 
Marketable securities, at fair value(D)
163,489 — 128,983 34,506 163,489 
Loans held for sale, at fair value395,922 — — 395,922 395,922 
Loan servicing assets, at fair value88,497 — — 88,497 88,497 
Total assets
$1,086,566 $431,069 $128,983 $526,514 $1,086,566 
Liabilities
Digital asset collateral repayment obligation(E)
$64,447 $64,447 $— $— $64,447 
Total liabilities
$64,447 $64,447 $— $— $64,447 
__________________
(A)See Notes 4 and 5 regarding changes in the carrying values of servicing assets and loans, respectively. There were no transfers of Level 3 instruments to, or from, other fair value levels during the periods presented.
(B)Included in “Digital assets” in the Condensed Consolidated Balance Sheets and represents digital assets held for sale at fair value, and excludes digital assets held at cost that are considered intangible assets.
(C)Included in “Other current assets” in the Condensed Consolidated Balance Sheets.
(D)Residual interest securities and non-rated securities in securitizations not considered debt securities are included within Level 3 of the fair value hierarchy.
(E)Included in “Debt, current” in the Condensed Consolidated Balance Sheets.
Significant Valuation Inputs
The Company used the following unobservable inputs that it considers significant to value the financial assets and liabilities carried at fair value and classified within Level 3 of the fair value hierarchy:
September 30, 2025
Fair Value
Discount Rate (A) (%)
CPR (B) (%)
CDR (C) (%)
Servicing Rate (D) (%)
Loss Severity (E)
Marketable Securities
Residual interest securities$38,308 
11.5% - 24.6%
18.3%
16.2% - 20.8%
18.8%
—% - 2.4%
1.2%
n.an.a
Servicing Assets
HELOC loans$98,120 
13.0% - 13.0%
13.0%
—% - 32.5%
13.7%
—% - 4.9%
0.8%
0.3%n.a
Mortgage loans1,880 
9.5% - 10.5%
10.3%
3.6% - 8.0%
5.3%
—% - 1.1%
0.4%
—%n.a
Total / Weighted average(F)
$100,000 12.9%13.5%0.7%0.3%
Loans Held for Sale
HELOC loans(G)
$323,184 
4.9% - 8.9%
6.5%
2.6% - 39.6%
15.6%
—% - 94.3%
1.6%
n.a
—% - 97.6%
28.4%
Personal loans(H)
62,935 
8.9% - 11.5%
10.2%
—% - —%
—%
—% - —%
—%
n.a
—% - —%
—%
Other(I)
2,913 
6.2% - 8.7%
7.1%
18.0% - 40.4%
24.7%
1.3% - 8.7%
6.1%
n.a
88.0% - 92.0%
90.0%
Total / Weighted average(F)
$389,032 5.5%13.1%1.4%
December 31, 2024
Fair Value
Discount Rate(A) (%)
CPR(B) (%)
CDR(C) (%)
Servicing Rate(D) (%)
Loss Severity(E)
Marketable Securities
Residual interest securities$34,506 
14.5% - 24.0%
19.7%
15.2% - 20.1%
17.7%
1.5% - 1.7%
1.6%
n.an.a
Servicing Assets
HELOC loans$86,465 
13.0% - 13.0%
13.0%
1.0% - 33.0%
14.4%
—% - 4.4%
0.7%
0.2%n.a
Mortgage loans2,032 
10.0% - 11.0%
10.8%
3.9% - 8.2%
5.7%
—% - 1.0%
0.2%
—%n.a
Total / Weighted average(F)
$88,497 12.9%14.2%0.7%0.2%
Loans Held for Sale
HELOC loans(G)
$366,154 
6.4% - 10.1%
7.6%
1.3% - 32.4%
13.6%
1.5% - 1.7%
1.6%
n.a
16.6% - 44.2%
32.4%
Other(I)
3,829 
5.1% - 8.7%
6.9%
17.9% - 99.7%
25.6%
0.4% - 10.2%
7.7%
n.a
88.0% - 92.0%
90.0%
Total / Weighted average(F)
$369,983 7.6%13.7%1.7%
__________________
(A)Significant increases (decreases) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement.
(B)Significant increases (decreases) in the CPR, in isolation, would result in a significantly lower (higher) fair value measurement.
(C)Significant increases (decreases) in the CDR, in isolation, would result in a significantly lower (higher) fair value measurement.
(D)Significant increases (decreases) in the servicing rate in excess of servicing costs, in isolation, would result in a significantly higher (lower) fair value measurement. Values represent the weighted average total mortgage servicing amount, net of subservicing costs.
(E)Significant increases (decreases) in the severity, in isolation, would result in a significantly lower (higher) fair value measurement.
(F)Unobservable inputs were weighted by respective fair value of each class.
(G)HELOC loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a residential mortgage cash flow model.
(H)Personal loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model.
(I)Personal unsecured loans included in “Other” are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model. The Company uses an estimated recovery from collections and recent sales to fair value personal loans that are 30 days past due; the fair value of such loans at September 30, 2025 and December 31, 2024 were not material.
Significant Valuation Input Sensitivity
The following tables summarize the estimated change in fair value of assets carried at fair value and classified within Level 3 of the fair value hierarchy for the unobservable inputs in “—Significant Valuation Inputs” at September 30, 2025. Each of the following sensitivity analyses is hypothetical and is provided for illustrative purposes only. There are certain limitations inherent in the sensitivity analyses presented. In particular, the results are calculated by stressing a particular economic assumption independent of changes in any other assumption; in practice, changes in one factor may result in changes in another, which might counteract or amplify the sensitivities. Also, changes in the fair value based on the following variations in an assumption generally may not be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear.
-2%-1%+1%+2%
$%$%$%$%
Discount Rate
Marketable Securities
Residual interest securities$780 3.9 %$380 1.9 %$(360)(1.8)%$(703)(3.5)%
Servicing Assets
HELOC loans5,920 6.2 2,874 3.0 (2,702)(2.8)(5,261)(5.5)
Mortgage loans238 12.6 114 6.1 (105)(5.6)(202)(10.8)
Loans Held for Sale
HELOC loans16,052 3.4 10,890 2.3 (14,240)(3.0)(29,376)(6.2)
Personal loans62,297 0.7 62,155 0.5 (61,446)(0.7)(61,042)(1.3)
-20%-10%+10%+20%
$%$%$%$%
CPR
Marketable Securities
Residual interest securities$1,001 5.0 %$513 2.6 %$(464)(2.3)%$(884)(4.4)%
Servicing Assets
HELOC loans6,044 6.3 2,922 3.1 (2,740)(2.9)(5,309)(5.6)
Mortgage loans125 6.7 61 3.3 (59)(3.1)(115)(6.1)
Loans Held for Sale
HELOC loans815 0.2 488 0.1 (544)(0.1)(1,245)(0.3)
Personal loans— — — — — — — — 
CDR
Marketable Securities
Residual interest securities274 1.4 136 0.7 (135)(0.7)(269)(1.4)
Servicing Assets
HELOC loans— — — — — — — — 
Loans Held for Sale
HELOC loans1,599 0.3 807 0.2 (819)(0.2)(1,628)(0.4)
Personal loans— — — — — — — — 
Servicing Rate
Servicing Assets
HELOC loans8,002 8.4 4,001 4.2 (4,001)(4.2)(8,002)(8.4)
Marketable Securities
The following table summarizes activities involving the Company’s marketable securities that are measured at fair value and classified within Level 3 of the fair value hierarchy for the nine months ended September 30, 2025 and 2024:
Balance at December 31, 2023$11,952 
Purchases(A)
16,527 
Sales(872)
Principal payments(1,002)
Change in fair value(B)
870 
Balance at September 30, 202427,475 
Balance at December 31, 202434,506 
Purchases(A)
12,333 
Principal payments(9,430)
Change in fair value(B)
897 
Balance at September 30, 2025$38,306 
__________________
(A)Includes premiums paid on the purchased notes.
(B)Included in “Gain on sale of loans, net” in the Condensed Consolidated Statements of Operations.
Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
The following table summarizes information about the liabilities that are not measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024:
September 30, 2025
Carrying ValueFair Value
Level 1Level 2Level 3Total
Liabilities
Financed Retained Interests(A)
$199,129 $— $198,444 $— $198,444 
Total liabilities
$199,129 $— $198,444 $— $198,444 
December 31, 2024
Carrying ValueFair Value
Level 1Level 2Level 3Total
Liabilities
Financed Retained Interests(A)
$128,101 $— $127,327 $— $127,327 
Total liabilities
$128,101 $— $127,327 $— $127,327 
__________________
(A)Financed retained interests classified as Level 2 in the fair value hierarchy were valued with a discounted cash flow model using collateral contractual terms and discount rates of similar instruments that include default and prepayment expectations as observable inputs.
Debt not carried at fair value, including financed retained interests, is presented at the face amount, net of debt issuance costs that are amortized over the contractual term using the effective interest method. The carrying value of debt associated with the warehouse facilities and servicing rights financing approximates the fair value due to their relatively short maturities.
Digital Assets
The Company held HASH at cost, totaling $1.5 million and $1.5 million at September 30, 2025 and December 31, 2024, respectively, as intangible assets presented within “Digital assets” in the Condensed Consolidated Balance Sheets. In connection with a valuation that management performed with the assistance of a third-party specialist during the Reorganization, the Company determined an impairment indicator existed for the HASH it held. Therefore, the Company recognized an impairment charge of $— million and $5.9 million, equal to the difference between the fair value and costs basis of HASH, in “Other income, net” in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2024, respectively. There were no impairment charges during the three and nine months ended September 30, 2025.
FAIR VALUE MEASUREMENTS
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following table summarizes information about the assets and liabilities that are measured at fair value on a recurring basis at December 31, 2024 and 2023:
December 31, 2024
Carrying ValueFair Value
Level 1Level 2
Level 3(A)
Total
Assets
Cash and cash equivalents$287,256 $287,256 $— $— $287,256 
Restricted cash57,777 57,777 — — 57,777 
Digital assets(B)
86,036 86,036 — — 86,036 
Distressed asset claims(C)
7,589 — — 7,589 7,589 
Marketable securities, at fair value(D)
163,489 — 128,983 34,506 163,489 
Loans held for sale, at fair value395,922 — — 395,922 395,922 
Loan servicing assets, at fair value88,497 — — 88,497 88,497 
Total assets $1,086,565 $431,069 $128,983 $526,514 $1,086,565 
Liabilities
Digital asset collateral repayment obligation(E)
$64,447 $64,447 $— $— $64,447 
Total liabilities $64,447 $64,447 $— $— $64,447 
December 31, 2023
Carrying ValueFair Value
Level 1Level 2
Level 3(A)
Total
Assets
Cash and cash equivalents$116,548 $116,548 $— $— $116,548 
Restricted cash59,232 59,232 — — 59,232 
Digital assets5,865 5,865 — — 5,865 
Marketable securities, at fair value(D)
37,066 — 24,318 12,748 37,066 
Loans held for sale, at fair value255,516 — — 255,516 255,516 
Loan held for investment, at fair value61,337 — — 61,337 61,337 
Loan servicing assets, at fair value55,860 — — 55,860 55,860 
Total assets
$591,424 $181,645 $24,318 $385,461 $591,424 
__________________
(A)See Notes 4 and 5 regarding changes in the carrying values of servicing assets and loans, respectively. There were no transfers of Level 3 instruments to, or from, other fair value levels during the periods presented.
(B)Included in Digital Assets on the Consolidated Balance Sheets and represents digital assets held for sale at fair value and excludes digital assets held at cost that are considered intangible assets.
(C)Included in Other Assets on the Consolidated Balance Sheets.
(D)Residual interest securities and non-rated securities in securitization not considered debt securities are included within Level 3 of the fair value hierarchy.
(E)Included in Other Liabilities on the Consolidated Balance Sheets.
Significant Valuation Inputs
The Company used the following unobservable inputs that it considers significant to value the financial assets and liabilities carried at fair value and classified within Level 3 of the fair value hierarchy:
December 31, 2024
Fair Value
Discount Rate(A) (%)
CPR(B) (%)
CDR(C) (%)
Servicing Rate(D) (%)
Loss Severity(E)
Marketable Securities
Residual interest securities$34,506 
14.5% - 24.0%
19.7%
15.2% - 20.1%
17.7%
1.5% - 1.7%
1.6%
n.a.n.a.
Servicing Assets
HELOC loans$86,465 
13.0% - 13.0%
13.0%
1.0% - 33.0%
14.4%
—% - 4.4%
0.7%
0.2%n.a.
Mortgage loans2,032 
10.0% - 11.0%
10.8%
3.9% - 8.2%
5.7%
—% - 1.0%
0.2%
n.m.n.a.
Total / Weighted average(F)
$88,497 12.9%14.2%0.7%0.2%n.a.
Loans Held for Sale(G)
HELOC loans$366,154 
6.4% - 10.1%
7.6%
1.3% - 32.4%
13.6%
1.5% - 1.7%
1.6%
n.a.
16.6% - 44.2%
32.4%
Other3,829 
5.1% - 8.7%
6.9%
17.9% - 99.7%
25.6%
0.4% - 10.2%
7.7%
n.a.
88.0% - 92.0%
90.0%
Total / Weighted average(F)
$369,983 7.6%13.7%1.7%—
December 31, 2023
Fair Value
Discount Rate(A) (%)
CPR(B) (%)
CDR(C) (%)
Servicing Rate(D) (%)
Loss Severity(E)
Marketable Securities
Residual interest securities$11,952 
21.0% - 21.3%
21.2%
13.6%- 30.0%
16.7%
0.5% - 48.9%
1.3%
n.a.n.a.
Servicing Assets
HELOC loans$53,645 
12.0% - 14.0%
13.0%
10.0% - 19.4%
14.6%
0.3% - 2.3%
1.1%
0.1%n.a.
Mortgage loans2,215 
9.0% - 11.0%
10.0%
4.2% - 7.4%
5.0%
0.1% - 0.5%
0.2%
n.m.n.a.
Total / Weighted average(F)
$55,860 12.9%14.2%1.1%0.1%n.a.
Loans Held for Sale(G)
HELOC loans$244,670 
7.6% - 17.7%
10.6%
0.4% - 21.0%
16.0%
0.5% - 48.9%
1.3%
n.a.
39.6% - 58.1%
48.4%
Other10,846 
6.5% - 10.1%
8.2%
13.8% - 45.6%
23.5%
1.4% - 11.2%
7.4%
n.a.
88.0% - 92.0%
90.0%
Total / Weighted average(F)
$255,516 10.5%16.3%1.6%n.a.50.2
Loans Held for Investment
HELOC loans$61,337 
7.7% - 19.5%
10.9%
0.3% - 19.0%
14.0%
0.2% - 63.7%
1.6%
n.a.
37.6% - 60.0%
67.0%
__________________
(A)Significant increases (decreases) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement.
(B)Significant increases (decreases) in the CPR, in isolation, would result in a significantly higher (lower) fair value measurement for residual interest securities and loans held for sale or investment, while the inverse is true for servicing assets.
(C)Significant increases (decreases) in the CDR, in isolation, would result in a significantly lower (higher) fair value measurement.
(D)Significant increases (decreases) in the servicing rate in excess of servicing costs, in isolation, would result in a significantly higher (lower) fair value measurement. Weighted average total mortgage servicing amount, net of subservicing costs.
(E)Significant increases (decreases) in the severity, in isolation, would result in a significantly lower (higher) fair value measurement.
(F)Unobservable inputs were weighted by respective fair value of each class.
(G)HELOC loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a residential mortgage cash flow model. Personal loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model. The Company uses an estimated recovery from collections and recent sales to fair value personal loans that are thirty days past due; the fair value of such loans at December 31, 2024 and 2023 are not material.
Marketable Securities
The following table summarizes activities involving the Company’s marketable securities that are measured at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2023:
Balance at December 31, 2022
$— 
Purchases(A)
16,177 
Sales(602)
Principal payments(1,576)
Change in fair value(B)
(2,047)
Balance at December 31, 2023
11,952 
Purchases(A)
24,440 
Sales(872)
Principal payments(2,184)
Change in fair value(B)
1,170 
Balance at December 31, 2024
$34,506 
__________________
(A)Includes premiums paid on the purchased notes.
(B)Included in Gain on sale of loans, net in the Consolidated Statements of Operations.
Significant Valuation Input Sensitivity
The following tables summarize the estimated change in fair value of assets carried at fair value and classified within Level 3 of the fair value hierarchy for the unobservable inputs in "— Significant Valuation Inputs" at December 31, 2024. Each of the following sensitivity analyses is hypothetical and is provided for illustrative purposes only. There are certain limitations inherent in the sensitivity analyses presented. In particular, the results are calculated by stressing a particular economic assumption independent of changes in any other assumption; in practice, changes in one factor may result in changes in another, which might counteract or amplify the sensitivities. Also, changes in the fair value based on the following variations in an assumption generally may not be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear.
-2%-1%+1%+2%
$%$%$%$%
Discount Rate
Marketable Securities
Residual interest securities$1,599 4.6 %$699 2.0 %$(1,163)(3.4)%$(2,124)(6.2)%
Servicing Assets
HELOC loans5,510 6.3 2,668 3.0 (2,514)(2.9)(4,880)(5.5)
Mortgage loans202 9.9 97 4.8 (89)(4.4)(171)(8.4)
Loans Held for Sale(A)
HELOC loans7,804 2.3 6,025 1.8 (10,088)(3.0)(21,523)(6.4)
-20%-10%+10%+20%
$%$%$%$%
CPR
Marketable Securities
Residual interest securities$(3,824)(11.1)%$(2,065)(6.0)%$1,912 5.5 %$4,160 12.1 %
Servicing Assets
HELOC loans5,642 6.4 2,721 3.1 (2,540)(2.9)(4,924)(5.6)
Mortgage loans114 5.6 56 2.7 (53)(2.6)(105)(5.1)
Loans Held for Sale(A)
HELOC loans616 0.2 336 0.1 (351)(0.1)(732)(0.2)
CDR
Marketable Securities
Residual interest securities1,049 3.0 424 1.2 (723)(2.1)(1,263)(3.7)
Loans Held for Sale(A)
HELOC loans1,100 0.3 560 0.2 (570)(0.2)(1,100)(0.3)
Servicing Rate
Servicing Assets
HELOC loans6,020 6.8 3,011 3.4 (3,006)(3.4)(6,015)(6.8)
__________________
(A)Excludes non-HELOC loans as they are not considered material.
Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
Debt is presented at face value, net of debt issuance costs that are amortized over the contractual term using the effective interest method. The carrying value of debt associated with the warehouse facilities and MSR financing approximates the fair value due to their relatively short maturities. The carrying value of debt associated with financed retained residuals is disclosed below.
The following table summarizes information about the liabilities that are not measured at fair value on a recurring basis at December 31, 2024 and 2023:
December 31, 2024
Carrying ValueFair Value
Level 1
Level 2(A)
Level 3Total
Liabilities
Financed Retained Interests
$128,101 $— $127,327 $— $127,327 
Total liabilities
$128,101 $— $127,327 $— $127,327 
December 31, 2023
Carrying ValueFair Value
Level 1
Level 2(A)
Level 3Total
Liabilities
Financed Retained Interests
$25,048 $— $24,667 $— $24,667 
Total liabilities
$25,048 $— $24,667 $— $24,667 
__________________
(A)The fair value of financed retained interests was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments.
Assets Measured at Fair Value on a Non-recurring Basis
Digital Assets
The Company held Hash at cost of $1.5 million at December 31, 2024 as intangible assets presented within Digital Assets in the Consolidated Balance Sheets. During the year ended December 31, 2024, the Company recognized an impairment of $5.9 million in Other income (expense), net in the Consolidated Statements of Operations. The Company determined an impairment indicator existed upon performing a valuation, with the assistance of a third-party specialist, of Hash in connection to the Reorganization. Therefore the Company recognized an impairment equal to the difference between the fair value and costs basis. The Company did not record any impairment for the year ended December 31, 2023.