v3.25.4
Finance Receivables at Fair Value
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Finance Receivables at Fair Value Finance Receivables at Fair Value
The components of installment finance receivables at fair value as of December 31, 2025 and 2024 were as follows (in thousands):

20252024
Unpaid principal balance of finance receivables - accrual$454,542 $394,030 
Unpaid principal balance of finance receivables - non-accrual38,576 31,210 
Unpaid principal balance of finance receivables$493,118 $425,240 
Finance receivables at fair value - accrual$524,577 $452,438 
Finance receivables at fair value - non-accrual3,590 2,906 
Finance receivables at fair value, excluding accrued interest receivable528,167 455,344 
Accrued interest receivable18,069 18,352 
Finance receivables at fair value$546,236 $473,696 
Difference between unpaid principal balance and fair value$35,049 $30,104 

The Company’s policy is to discontinue and reverse the accrual of interest income on installment finance receivables at the earlier of 60 days past due on a recency basis or 90 days past due on a contractual basis. As of December 31, 2025 and 2024, the aggregate unpaid principal balance of installment finance receivables 90 days or more past due on a contractual basis was $16.4 million and $14.4 million, respectively. As of December 31, 2025 and 2024, the fair value of installment finance receivables 90 days or more past due on a contractual basis was $1.5 million and $1.3 million, respectively.

Changes in the fair value of installment finance receivables at fair value for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):

202520242023
Balance at the beginning of the period$473,696 $463,320 $457,296 
Acquired and originated1,277,945 1,226,056 1,219,516 
Repayments(989,254)(1,011,524)(984,338)
Accrued interest receivable(283)287 2,265 
Charge-offs, net (1)
(220,813)(205,755)(220,895)
Net change in fair value (1)
4,945 1,312 (10,524)
Balance at the end of the period$546,236 $473,696 $463,320 
(1) Included in change in fair value of finance receivables in the consolidated statements of operations.

The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk was $36.6 million for the year ended December 31, 2025. The credit risk component was driven by the expected default rate assumption applied in the discounted cash flow model. The expected default rate assumption was developed based on historical data of the installment loan portfolio and also included adjustments to reflect management’s judgment of current economic trends and future credit performance.