v3.26.1
SEGMENTS
 12 Months Ended
Dec. 31, 2025
Entity Information [Line Items]  
SEGMENTS SEGMENTS
Effective in the fourth quarter of 2025, the Company updated its operating and reportable segments to align with recent strategic business and management reporting changes. This realignment is reflected in the periodic financial reports provided to the Company’s Chief Executive Officer, who serves as the chief operating decision maker (“CODM”), for the purposes of evaluating performance, making operating decisions and allocating resources. As a result of these changes, the Company’s former Home Equity segment was eliminated and the related products and services are now combined with the Personal Loan segment, which includes both Personal Loan products and services, as well as general corporate expenses. The Company now has two reportable and operating segments: Personal Loan and Credit Card. Periods prior to the fourth quarter of 2025 have been recast to conform to the current reportable segment presentation.
The CODM evaluates the financial performance of the Company’s segments based upon segment revenues, as well as segment Adjusted Net Revenue and segment Adjusted EBITDA, both non-GAAP profitability measures. The Company does not prepare segment assets for the CODM to use to allocate resources or to assess performance of the segments and, therefore, total segment assets have not been disclosed.
The tables below present segment Total Net Revenue reconciled to segment Adjusted Net Revenue, significant segment operating expenses, and segment Adjusted EBITDA reconciled to Net Income (Loss) Before Taxes, as well as interest income and expense included in segment Adjusted Net Revenue and Adjusted EBITDA, for the periods indicated (in thousands).
Year Ended December 31, 2025
Personal LoanCredit CardTotal
Total Net Revenue$192,197 $20,352 $212,549 
Impact of interest rates on fair value of loans held in consolidated trusts21 — 21 
Segment Adjusted Net Revenue$192,218 $20,352 $212,570 
Less: Segment Operating Expenses (1)
Compensation and Benefits (2)
69,395 10,428 79,823 
Marketing and Advertising45,998 8,825 54,823 
Transaction Costs7,756 11,611 19,367 
Other Expenses (3)
28,316 827 29,143 
Segment Adjusted EBITDA40,753 $(11,339)$29,414 
Depreciation expense:
Origination and Servicing(11,292)
General and Administrative - Other(836)
Stock-based compensation(1,307)
Change in Fair Value of Convertible Preferred Stock Warrants(42,103)
Impact of interest rates on fair value of loans held in consolidated trusts(21)
Interest income on cash and cash equivalents2,942 
Interest Expense on Term Loans(12,331)
Net Loss Before Income Taxes$(35,534)
Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Financial Instruments$57,032 $24,872 $81,904 
Interest Expense on Financial Instruments(51,689)(8,081)(59,770)
Total Interest Income, Net Included in Segment Adjusted EBITDA$5,343 $16,791 $22,134 
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. These amounts exclude items that are adjusted out of Net Income (Loss) for the purposes of calculating Adjusted EBITDA.
(2) Compensation and Benefits includes costs related to certain outsourced headcount in operations.
(3) Other Expenses include, but are not limited to, costs related to professional services, insurance, facilities, software licenses, Cloud platform, and outsourced services in engineering and marketing.
Year Ended December 31, 2024
Personal LoanCredit CardTotal
Total Net Revenue$146,016 $27,339 $173,355 
Impact of interest rates on fair value of loans held in consolidated trusts1,386 — 1,386 
Accelerated amortization of PWIT debt issuance costs733 — 733 
Segment Adjusted Net Revenue$148,135 $27,339 $175,474 
Less: Segment Operating Expenses (1)
Compensation and Benefits (2)
57,295 8,579 65,874 
Marketing and Advertising35,501 7,479 42,980 
Transaction Costs7,667 14,036 21,703 
Other Expenses (3)
27,463 393 27,856 
Segment Adjusted EBITDA20,209 $(3,148)$17,061 
Depreciation expense:
Origination and Servicing(9,199)
General and Administrative - Other(1,532)
Amortization of intangibles(85)
Stock-based compensation(1,616)
Change in Fair Value of Convertible Preferred Stock Warrants(46,208)
Impairment of long-lived assets(463)
Impact of interest rates on fair value of loans held in consolidated trusts(1,386)
Interest income on cash and cash equivalents3,322 
Interest Expense on Term Loan(13,124)
Accelerated amortization of PWIT debt issuance costs(733)
Net Loss Before Income Taxes$(53,963)
Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale$84,968 $4,881 $89,849 
Interest Expense on Financial Instruments(72,509)(1,317)(73,826)
Accelerated amortization of PWIT debt issuance costs733 — 733 
Total Interest Income, Net Included in Segment Adjusted EBITDA$13,192 $3,564 $16,756 
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. These amounts exclude items that are adjusted out of Net Income (Loss) for the purposes of calculating Adjusted EBITDA.
(2) Compensation and Benefits includes costs related to certain outsourced headcount in operations.
(3) Other Expenses include, but are not limited to, costs related to professional services, insurance, facilities, software licenses, Cloud platform, and outsourced services in engineering and marketing.
Year Ended December 31, 2023
Personal LoanCredit CardTotal
Total Net Revenue$102,796 $34,904 $137,700 
Impact of interest rates on fair value of loans held in consolidated trusts2,629 — 2,629 
Accelerated amortization of PWIIT debt issuance costs1,880 — 1,880 
Segment Adjusted Net Revenue$107,305 $34,904 $142,209 
Less: Segment Operating Expenses (1)
Compensation and Benefits (2)
73,798 9,868 83,666 
Marketing and Advertising32,930 12,209 45,139 
Transaction Costs7,103 8,114 15,217 
Other Expenses (3)
27,984 831 28,815 
Segment Adjusted EBITDA$(34,510)$3,882 $(30,628)
Depreciation expense:
Origination and Servicing(8,774)
General and Administrative(2,108)
Amortization of intangibles(107)
Stock-based compensation(1,575)
Change in Fair Value of Convertible Preferred Stock Warrants(48,695)
Interest Expense on Term Loan(12,265)
Impairment of operating lease right-of-use assets(196)
Interest income on cash and cash equivalents2,473 
Impact of interest rates on fair value of loans held in consolidated trusts(2,629)
Accelerated amortization of PWIIT debt issuance costs(1,880)
Net Income Before Income Taxes$(106,384)
Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale$115,663 $— $115,663 
Interest Expense on Financial Instruments(91,983)— (91,983)
Accelerated amortization of PWIIT debt issuance costs1,880 — 1,880 
Total Interest Income, Net Included in Segment Adjusted EBITDA$25,560 $— $25,560 
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. These amounts exclude items that are adjusted out of Net Income (Loss) for the purposes of calculating Adjusted EBITDA.
(2) Compensation and Benefits includes costs related to certain outsourced headcount in operations.
(3) Other Expenses include, but are not limited to, costs related to professional services, insurance, facilities, software licenses, Cloud platform, and outsourced services in engineering and marketing.
Prosper Funding LLC  
Entity Information [Line Items]  
SEGMENTS SEGMENTS
PFL’s Chief Executive Officer, who serves as the chief operating decision maker, reviews financial information on a consolidated basis at the PMI level for purposes of allocating resources and evaluating financial performance. As a result, PFL has no operating segments.