FAIR VALUE OF ASSETS AND LIABILITIES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Entity Information [Line Items] |
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| Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value |
The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2025 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value (Note 4) | | $ | — | | | $ | — | | | $ | 309,737 | | | $ | 309,737 | | | Receivable from Credit Card Partner, at Fair Value (Note 5 and 7) | | — | | | — | | | 99,865 | | | 99,865 | | | Servicing Assets (Note 6) | | — | | | — | | | 17,402 | | | 17,402 | | | Credit Card Derivative (Note 5) | | — | | | — | | | 48,290 | | | 48,290 | | | Total Assets | | $ | — | | | $ | — | | | $ | 475,294 | | | $ | 475,294 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value (Note 4) | | $ | — | | | $ | — | | | $ | 243,900 | | | $ | 243,900 | | | Convertible Preferred Stock Warrant Liability (Note 13) | | — | | | — | | | 230,060 | | | 230,060 | | | Loan Trailing Fee Liability (Note 10) | | — | | | — | | | 3,328 | | | 3,328 | | | Credit Card servicing obligation liability (Note 5) | | — | | | — | | | 9,276 | | | 9,276 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 486,564 | | | $ | 486,564 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2024 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value | | $ | — | | | $ | — | | | $ | 461,785 | | | $ | 461,785 | | | Receivable from Credit Card Partner, at Fair Value (Note 5 and 7) | | — | | | — | | | 104,153 | | | 104,153 | | | Servicing Assets | | — | | | — | | | 13,718 | | | 13,718 | | | Credit Card Derivative (Note 5) | | — | | | — | | | 38,739 | | | 38,739 | | | Total Assets | | $ | — | | | $ | — | | | $ | 618,395 | | | $ | 618,395 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 283,030 | | | $ | 283,030 | | | Convertible Preferred Stock Warrant Liability | | — | | | — | | | 261,249 | | | 261,249 | | | Loan Trailing Fee Liability (Note 10) | | — | | | — | | | 3,004 | | | 3,004 | | | Credit Card servicing obligation liability (Note 5) | | — | | | — | | | 8,947 | | | 8,947 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 556,230 | | | $ | 556,230 | |
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| Schedule of Quantitative Information About Significant Unobservable Inputs |
The following tables present quantitative information about the ranges of significant unobservable inputs used for the Company’s Level 3 fair value measurements at December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | 2025 | | 2024 | | Borrower Loans and Notes: | | | | | | | | | Discount rate | 5.0 | % | — | 15.5 | % | | 5.7 | % | — | 10.9 | % | | Default rate | 1.9 | % | — | 14.5 | % | | 2.6 | % | — | 22.6 | % |
At December 31, 2025 and 2024, the discounted cash flow methodology used to estimate the Note fair values used the same projected cash flows as the related Borrower Loans. | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | 2025 | | 2024 | | Servicing Assets: | | | | | | | | | Discount rate | 15.0 | % | — | | 25.0 | % | | 15.0 | % | — | 25.0 | % | | Default rate | 2.0 | % | — | | 15.0 | % | | 2.6 | % | — | 22.6 | % | | Prepayment rate | 13.3 | % | — | | 35.6 | % | | 8.3 | % | — | 29.8 | % | Market servicing rate (1) (2) | 0.593 | % | — | | 0.842 | % | | 0.633 | % | — | 0.842 | % | (1) Servicing assets associated with loans enrolled in a relief program offered by the Company as of December 31, 2025 and 2024, were measured using a market servicing rate assumption of 84.2 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption. | (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of December 31, 2025 and 2024, the market rate for collection fees and non-sufficient fund fees was assumed to be 10 basis points and 7 basis points, respectively, for a weighted-average total market servicing rate of 69.3 basis points to 94.2 basis points and 70.3 basis points to 91.2 basis points, respectively. | | | | | | | | | | | | | | | | |
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| 2025 | | 2024 | Loan Trailing Fee Liability: | | | | | | | | | Discount rate | 15.0 | % | — | | 25.0 | % | | 15.0 | % | — | | 25.0 | % | | Default rate | 2.0 | % | — | | 15.0 | % | | 2.6 | % | — | | 22.6 | % | | Prepayment rate | 13.3 | % | — | | 35.6 | % | | 8.3 | % | — | | 29.8 | % |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table presents additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Assets | | Liabilities | | | | | | Borrower
Loans | | Loans Held
for Sale | | | Notes | | | | Total | | Fair Value at January 1, 2024 | | $ | 545,038 | | | $ | 161,501 | | | | $ | (321,966) | | | | | $ | 384,573 | | | Purchase of Borrower Loans/Issuance of Notes | | 186,073 | | | 2,054,646 | | | | (184,200) | | | | | 2,056,519 | | | Principal repayments on Borrower Loans | | (349,740) | | | (22,554) | | | | 195,169 | | | | | (177,125) | | | Borrower Loans sold to third parties | | (4,454) | | | (2,055,338) | | | | — | | | | | (2,059,792) | | | Other changes | | (1,550) | | | (303) | | | | 424 | | | | | (1,429) | | | Change in fair value | | (49,271) | | | (2,263) | | | | 27,543 | | | | | (23,991) | | | Transfer of Loans Held for Sale to Borrower Loans upon PMIT 2024-1 Transaction, at Fair Value | | 135,689 | | | (135,689) | | | | — | | | | | — | | | Fair Value at December 31, 2024 | | $ | 461,785 | | | $ | — | | | | $ | (283,030) | | | | | $ | 178,755 | | | Purchase of Borrower Loans/Issuance of Notes | | 164,625 | | | 2,487,702 | | | | (163,892) | | | | | 2,488,435 | | | Principal repayments on Borrower Loans | | (283,762) | | | — | | | | 183,753 | | | | | (100,009) | | | Borrower Loans sold to third parties | | (2,632) | | | (2,487,702) | | | | — | | | | | (2,490,334) | | | Other changes | | (1,577) | | | — | | | | 474 | | | | | (1,103) | | | Change in fair value | | (28,702) | | | — | | | | 18,795 | | | | | (9,907) | | | Fair Value at December 31, 2025 | | $ | 309,737 | | | $ | — | | | | $ | (243,900) | | | | | $ | 65,837 | |
The following table presents additional information about the Level 3 Receivable from Credit Card Partner, measured at fair value on a recurring basis for the year ended December 31, 2025 (in thousands): | | | | | | | | | | | Receivable from Credit Card Partner | | Fair Value at January 1, 2024 | | $ | — | | | Transfer of Credit Card principal and interest receivables upon securitization | | 96,907 | | | Purchases of Credit Card principal receivables | | 9,254 | | | Principal repayments on Credit Card receivables | | (11,885) | | | Other changes | | 415 | | | Change in fair value | | 9,462 | | | Fair Value at December 31, 2024 | | $ | 104,153 | | | Purchases of Credit Card principal receivables | | 75,181 | | | Principal repayments on Credit Card receivables | | (62,311) | | | Other changes | | 160 | | | Change in fair value | | (17,318) | | | Fair Value at December 31, 2025 | | $ | 99,865 | | | | | | | |
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| Schedule of Servicing Assets and Liabilities Measured at Fair Value |
The following table presents additional information about the Level 3 Servicing Assets measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | Servicing Assets | | Fair Value at January 1, 2024 | | $ | 12,249 | | | Additions | | 10,997 | | | Less: Change in fair value | | (9,528) | | | Fair Value at December 31, 2024 | | $ | 13,718 | | | Additions | | 13,609 | | | Less: Change in fair value | | (9,925) | | | Fair Value at December 31, 2025 | | $ | 17,402 | |
The following table presents additional information about the Level 3 Credit Card Derivative measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | Credit Card Derivative | | Fair Value at January 1, 2024 | | | | $ | 36,848 | | | Change in fair value | | | | 13,335 | | | Reduction to fair value upon PMCC 2024-1 securitization (Notes 5 and 7) | | | | (11,444) | | | Fair Value at December 31, 2024 | | | | $ | 38,739 | | | Change in fair value | | | | 9,551 | | | Fair Value at December 31, 2025 | | | | $ | 48,290 | |
The following table presents additional information about the Level 3 Credit Card servicing obligation liability measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands). | | | | | | | | | | | | | | | Credit Card Servicing Obligation Liability | | Fair Value at January 1, 2024 | | | | $ | 9,732 | | | Reduction to fair value upon PMCC 2024-1 securitization (Note 5) | | | | (2,846) | | | Other changes in fair value | | | | 2,061 | | | Fair Value at December 31, 2024 | | | | $ | 8,947 | | | Change in fair value | | | | 329 | | | Fair Value at December 31, 2025 | | | | $ | 9,276 | |
The following table presents additional information about the Level 3 Convertible Preferred Stock Warrant Liability measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | Convertible Preferred Stock Warrant Liability | | Fair Value at January 1, 2024 | | | | $ | 215,041 | | | | | | | | | | | | | | | | | | Change in fair value | | | | 46,208 | | | Fair Value at December 31, 2024 | | | | $ | 261,249 | | | Reclassification to Convertible Preferred Stock upon exercise of Series F Warrants (Note 13) | | | | (73,292) | | | | | | | | | | | | | Change in fair value | | | | 42,103 | | | Fair Value at December 31, 2025 | | | | $ | 230,060 | |
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| Schedule of Level 3 Liabilities Measured on Recurring Basis |
The following table presents additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | Loan Trailing Fee Liability | | Balance at January 1, 2024 | | $ | 2,942 | | | Issuances | | 1,959 | | | Cash payment of Loan Trailing Fee | | (2,597) | | | Change in fair value | | 700 | | | Balance at December 31, 2024 | | $ | 3,004 | | | Issuances | | 2,477 | | | Cash payment of Loan Trailing Fee | | (2,657) | | | Change in fair value | | 504 | | | Balance at December 31, 2025 | | $ | 3,328 | |
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| Schedule of Fair Value Assumptions |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 and 2024 for Borrower Loans are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | | | Borrower Loans | | December 31, 2025 | | December 31, 2024 | | | | Fair value, using the following assumptions: | | $ | 309,737 | | | $ | 461,785 | | | | | Weighted-average discount rate | | 8.53 | % | | 7.72 | % | | | | Weighted-average default rate | | 11.79 | % | | 12.59 | % | | | | | | | | | | | Fair value resulting from: | | | | | | | 100 basis point increase in discount rate | | $ | 307,014 | | | $ | 457,584 | | | | 200 basis point increase in discount rate | | 304,354 | | | 453,483 | | | | | Fair value resulting from: | | | | | | | 100 basis point decrease in discount rate | | $ | 312,526 | | | $ | 466,090 | | | | 200 basis point decrease in discount rate | | 315,384 | | | 470,502 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to default rate | | $ | 307,253 | | | $ | 456,385 | | | | Applying a 1.2 multiplier to default rate | | 304,767 | | | 451,011 | | | | | Fair value resulting from: | | | | | | | Applying a 0.9 multiplier to default rate | | $ | 312,219 | | | $ | 467,211 | | | | Applying a 0.8 multiplier to default rate | | 314,699 | | | 472,663 | | | |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 and 2024 for Notes are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Notes | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 243,900 | | | $ | 283,030 | | | Weighted-average discount rate | | 8.67 | % | | 7.70 | % | | Weighted-average default rate | | 11.48 | % | | 13.25 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 241,752 | | | $ | 280,451 | | 200 basis point increase in discount rate | | 239,655 | | | 277,934 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 246,096 | | | $ | 285,669 | | 200 basis point decrease in discount rate | | 248,352 | | | 288,381 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 241,944 | | | $ | 279,718 | | Applying a 1.2 multiplier to default rate | | 239,987 | | | 276,422 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 245,853 | | | $ | 286,358 | | Applying a 0.8 multiplier to default rate | | 247,806 | | | 289,702 | |
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| Schedule Of Estimated Fair Value Of Sensitivity Assets And Liabilities |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 and 2024 for Servicing Assets is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Servicing Assets | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 17,402 | | | $ | 13,718 | | | Weighted-average market servicing rate | | 0.598 | % | | 0.640 | % | | Weighted-average prepayment rate | | 21.65 | % | | 18.70 | % | | Weighted-average default rate | | 11.84 | % | | 14.03 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.025% | | $ | 16,398 | | | $ | 12,843 | | Market servicing rate decrease of 0.025% | | 18,405 | | | 14,593 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 16,949 | | | $ | 13,415 | | Applying a 0.9 multiplier to prepayment rate | | 17,863 | | | 14,026 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 17,114 | | | $ | 13,448 | | Applying a 0.9 multiplier to default rate | | 17,689 | | | 13,989 | |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 for Receivable from Credit Card Partner is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | | | Receivable from Credit Card Partner | | December 31, 2025 | | December 31, 2024 | | | | Fair value, using the following assumptions: | | $ | 99,865 | | | $ | 104,153 | | | | | Discount rate on Credit Card receivable cash flows | | 23.15 | % | | 22.44 | % | | | | Prepayment rate on Credit Card receivables | | 8.22 | % | | 8.14 | % | | | | Default rate on Credit Card receivables | | 15.00 | % | | 14.80 | % | | | | | | | | | | | Fair value resulting from: | | | | | | | 100 basis point increase in discount rate | | $ | 99,689 | | | $ | 103,923 | | | | 200 basis point increase in discount rate | | 99,518 | | | 103,699 | | | | | Fair value resulting from: | | | | | | | 100 basis point decrease in discount rate | | $ | 100,045 | | | $ | 104,390 | | | | 200 basis point decrease in discount rate | | 100,231 | | | 104,633 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 99,676 | | | $ | 103,911 | | | | Applying a 0.9 multiplier to prepayment rate | | 100,055 | | | 104,398 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to default rate | | $ | 97,376 | | | $ | 101,503 | | | | Applying a 0.9 multiplier to default rate | | 102,459 | | | 106,916 | | | |
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| Schedule of Derivative Assets Measured at Fair Value |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 and 2024 for the Credit Card Derivative is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Credit Card Derivative | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 48,290 | | | $ | 38,739 | | | Outstanding Credit Card Principal Balance, Prosper and Coastal Allocations | | 330,409 | | | 303,245 | | | Discount rate on Prosper Allocations | | 23.15 | % | | 22.44 | % | | Discount rate on Coastal Program Fee | | 23.15 | % | | 22.44 | % | | Prepayment rate applied to Credit Card portfolio | | 8.22 | % | | 8.14 | % | | Default rate applied to Credit Card portfolio | | 15.33 | % | | 15.65 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in both discount rates | | $ | 47,654 | | | $ | 38,225 | | 200 basis point increase in both discount rates | | 47,036 | | | 37,725 | | | Fair value resulting from: | | | | | 100 basis point decrease in both discount rates | | $ | 48,945 | | | $ | 39,269 | | 200 basis point decrease in both discount rates | | 49,619 | | | 39,814 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 47,625 | | | $ | 38,210 | | Applying a 0.9 multiplier to prepayment rate | | 48,964 | | | 39,275 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 38,254 | | | $ | 29,252 | | Applying a 0.9 multiplier to default rate | | 58,663 | | | 48,556 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Derivative Liability Measured at Fair Value |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at December 31, 2025 and 2024 for Credit Card servicing obligation liability is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Credit Card servicing obligation liability | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 9,276 | | | $ | 8,947 | | | Discount rate on Credit Card portfolio servicing obligation | | 23.15 | % | | 22.44 | % | | Prepayment rate applied to Credit Card portfolio | | 8.22 | % | | 8.14 | % | | Default rate applied to Credit Card portfolio | | 15.33 | % | | 15.65 | % | | Market servicing rate | | 2.00 | % | | 2.00 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.10% | | $ | 9,761 | | | $ | 9,415 | | Market servicing rate decrease of 0.10% | | 8,792 | | | 8,481 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 9,174 | | | $ | 8,849 | | Applying a 0.9 multiplier to prepayment rate | | 9,380 | | | 9,047 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 9,056 | | | $ | 8,730 | | Applying a 0.9 multiplier to default rate | | 9,501 | | | 9,170 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Financial Instruments, Assets And Liabilities Not Recorded at Fair Value |
The following tables present the fair value hierarchy for assets and liabilities not recorded at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2025 | | Carrying Amount | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Fair Value | | Assets: | | | | | | | | | | | | Cash and Cash Equivalents | | $ | 46,755 | | | $ | 46,755 | | | $ | — | | | $ | — | | | $ | 46,755 | | | Restricted Cash - Cash and Cash Equivalents | | 92,854 | | | 92,854 | | | — | | | — | | | 92,854 | | | Restricted Cash - Certificates of Deposit | | 1,509 | | | — | | | 1,509 | | | — | | | 1,509 | | | Accounts Receivable | | 11,947 | | | — | | | 11,947 | | | — | | | 11,947 | | | Total Assets | | $ | 153,065 | | | $ | 139,609 | | | $ | 13,456 | | | $ | — | | | $ | 153,065 | | | Liabilities: | | | | | | | | | | | | Accounts Payable and Accrued Liabilities | | $ | 56,501 | | | $ | — | | | $ | 56,501 | | | $ | — | | | $ | 56,501 | | | Transaction Fee Refund Liability (Note 17) | | 17,191 | | | — | | | — | | | 17,191 | | | 17,191 | | | Payable to Investors | | 77,604 | | | — | | | 77,604 | | | — | | | 77,604 | | | Notes Issued by Securitization Trust | | 149,902 | | | — | | | 151,325 | | | — | | | 151,325 | | | | | | | | | | | | | | Term Loan (Note 11) | | 75,000 | | | — | | | 76,089 | | | — | | | 76,089 | | | Total Liabilities | | $ | 376,198 | | | $ | — | | | $ | 361,519 | | | $ | 17,191 | | | $ | 378,710 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2024 | | Carrying Amount | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Fair Value | | Assets: | | | | | | | | | | | | Cash and Cash Equivalents | | $ | 30,334 | | | $ | 30,334 | | | $ | — | | | $ | — | | | $ | 30,334 | | | Restricted Cash - Cash and Cash Equivalents | | 111,724 | | | 111,724 | | | — | | | — | | | 111,724 | | | Restricted Cash - Certificates of Deposit | | 3,029 | | | — | | | 3,029 | | | — | | | 3,029 | | | Accounts Receivable | | 7,545 | | | — | | | 7,545 | | | — | | | 7,545 | | | Total Assets | | $ | 152,632 | | | $ | 142,058 | | | $ | 10,574 | | | $ | — | | | $ | 152,632 | | | Liabilities: | | | | | | | | | | | | Accounts Payable and Accrued Liabilities | | $ | 49,346 | | | $ | — | | | $ | 49,346 | | | $ | — | | | $ | 49,346 | | | Transaction Fee Refund Liability (Note 17) | | 9,212 | | | — | | | — | | | 9,212 | | | $ | 9,212 | | | Payable to Investors | | 91,945 | | | — | | | 91,945 | | | — | | | 91,945 | | | Notes Issued by Securitization Trust | | 258,960 | | | — | | | 260,985 | | | — | | | 260,985 | | | Term Loan (Note 11) | | 75,540 | | | — | | | 76,581 | | | — | | | 76,581 | | | Total Liabilities | | $ | 485,003 | | | $ | — | | | $ | 478,857 | | | $ | 9,212 | | | $ | 488,069 | |
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| Prosper Funding LLC |
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| Entity Information [Line Items] |
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| Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value |
The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value | | $ | — | | | $ | — | | | $ | 245,337 | | | $ | 245,337 | | | Servicing Assets | | — | | | — | | | 17,601 | | | 17,601 | | | Total Assets | | $ | — | | | $ | — | | | $ | 262,938 | | | $ | 262,938 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 243,900 | | | $ | 243,900 | | | | | | | | | | | | Loan Trailing Fee Liability (included in Other Liabilities) | | — | | | — | | | 3,328 | | | 3,328 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 247,228 | | | $ | 247,228 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value | | $ | — | | | $ | — | | | $ | 285,578 | | | $ | 285,578 | | | Servicing Assets | | — | | | — | | | 14,333 | | | 14,333 | | | | | | | | | | | | Total Assets | | $ | — | | | $ | — | | | $ | 299,911 | | | $ | 299,911 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 283,030 | | | $ | 283,030 | | | | | | | | | | | | Loan Trailing Fee Liability (included in Other Liabilities) | | — | | | — | | | 3,004 | | | 3,004 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 286,034 | | | $ | 286,034 | |
*Included in Other Liabilities on the consolidated balance sheets.
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| Schedule of Quantitative Information About Significant Unobservable Inputs |
The following tables present quantitative information about the significant unobservable inputs used for PFL’s Level 3 fair value measurements at the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | Range | | Borrower Loans and Notes: | December 31, 2025 | | December 31, 2024 | | Discount rate | 6.3 | % | — | | 15.5 | % | | 5.8 | % | — | | 8.7 | % | | Default rate | 2.3 | % | — | | 14.5 | % | | 2.9 | % | — | | 22.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | Range | | Servicing Assets: | December 31, 2025 | | December 31, 2024 | | Discount rate | 15.0 | % | — | | 25.0 | % | | 15.0 | % | — | 25.0 | % | | Default rate | 1.9 | % | — | | 15.0 | % | | 2.9 | % | — | 22.6 | % | | Prepayment rate | 3.4 | % | — | | 41.4 | % | | 13.6 | % | — | 28.1 | % | Market servicing rate (1) (2) | 0.593 | % | — | | 0.842 | % | | 0.633 | % | — | 0.842 | % | (1) Servicing assets associated with loans enrolled in a relief program offered by the Company as of December 31, 2025 and 2024 were measured using a market servicing rate assumption of 84.2 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption. | (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of December 31, 2025 and 2024, the market rate for collection fees and non-sufficient fund fees was assumed to be 10 basis points and 7 basis points, respectively, for a weighted-average total market servicing rate of 69.3 basis points to 94.2 basis points and 70.3 basis points to 91.2 basis points, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | | | Range | Loan Trailing Fee Liability: | December 31, 2025 | | December 31, 2024 | | Discount rate | 15.0 | % | — | | 25.0 | % | | 15.0 | % | — | | 25.0 | % | | Default rate | 1.9 | % | — | | 15.0 | % | | 2.9 | % | — | | 22.6 | % | | Prepayment rate | 3.4 | % | — | | 41.4 | % | | 13.6 | % | — | | 28.1 | % |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table presents additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | Borrower
Loans | | Loans Held
for Sale | | Notes | | Total | | Fair value at January 1, 2024 | | $ | 324,311 | | | $ | — | | | $ | (321,966) | | | $ | 2,345 | | | Originations | | 186,073 | | | 2,054,646 | | | (184,200) | | | 2,056,519 | | | Borrower Loans contributed by Parent, at Fair Value | | 1,634 | | | — | | | — | | | 1,634 | | | Principal repayments | | (192,113) | | | — | | | 195,169 | | | 3,056 | | | Borrower Loans sold to third parties | | (4,454) | | | (2,054,646) | | | — | | | (2,059,100) | | | Other changes | | (421) | | | — | | | 424 | | | 3 | | | Change in fair value | | (29,452) | | | — | | | 27,543 | | | (1,909) | | | Fair value at December 31, 2024 | | $ | 285,578 | | | $ | — | | | $ | (283,030) | | | $ | 2,548 | | | Originations | | 164,625 | | | 2,487,702 | | | (163,892) | | | 2,488,435 | | | Principal repayments | | (182,231) | | | — | | | 183,753 | | | 1,522 | | | Borrower Loans sold to third parties | | (2,632) | | | (2,487,702) | | | — | | | (2,490,334) | | | Other changes | | (467) | | | — | | | 474 | | | 7 | | | Change in fair value | | (19,536) | | | — | | | 18,795 | | | (741) | | | Fair value at December 31, 2025 | | $ | 245,337 | | | $ | — | | | $ | (243,900) | | | $ | 1,437 | |
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| Schedule of Servicing Assets and Liabilities Measured at Fair Value |
The following table presents additional information about Level 3 Servicing Assets recorded at fair value (in thousands): | | | | | | | | | | | Servicing Assets | | Fair value at January 1, 2024 | | $ | 13,818 | | | Additions | | 10,997 | | | Change in fair value | | (10,482) | | | Fair value at December 31, 2024 | | $ | 14,333 | | | Additions | | 13,609 | | | Change in fair value | | (10,341) | | | Fair value at December 31, 2025 | | $ | 17,601 | |
Loan Trailing Fee Liability The fair value of the Loan Trailing Fee Liability (included in Other Liabilities on the accompanying Consolidated Balance Sheets) represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below. The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | Loan Trailing Fee Liability | | Fair Value at January 1, 2024 | | $ | 2,942 | | | Issuances | | 1,959 | | | Cash payment of Loan Trailing Fee | | (2,597) | | | Change in fair value | | 700 | | | Fair Value at December 31, 2024 | | $ | 3,004 | | | Issuances | | 2,477 | | | Cash payment of Loan Trailing Fee | | (2,657) | | | Change in fair value | | 504 | | | Fair Value at December 31, 2025 | | $ | 3,328 | |
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| Schedule of Fair Value Assumptions |
Key economic assumptions are used to compute the fair value of Borrower Loans. The sensitivity of the current fair value to immediate changes in assumptions at December 31, 2025 and 2024 for Borrower Loans are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Borrower Loans: | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 245,337 | | | $ | 285,578 | | | Weighted-average discount rate | | 8.67 | % | | 7.70 | % | | Weighted-average default rate | | 11.48 | % | | 13.35 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 243,180 | | | $ | 282,980 | | 200 basis point increase in discount rate | | 241,073 | | | 280,443 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 247,547 | | | $ | 288,240 | | 200 basis point decrease in discount rate | | 249,810 | | | 290,969 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 243,371 | | | $ | 282,239 | | Applying a 1.2 multiplier to default rate | | 241,402 | | | 278,916 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 247,304 | | | $ | 288,934 | | Applying a 0.8 multiplier to default rate | | 249,269 | | | 292,306 | |
Key economic assumptions are used to compute the fair value of Notes. The sensitivity of the fair value to immediate changes in assumptions at December 31, 2025 and 2024 for Notes funded through the Note Channel are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Notes: | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 243,900 | | | $ | 283,030 | | | Weighted-average discount rate | | 8.67 | % | | 7.70 | % | | Weighted-average default rate | | 11.48 | % | | 13.25 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 241,752 | | | $ | 280,451 | | 200 basis point increase in discount rate | | 239,655 | | | 277,934 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 246,096 | | | $ | 285,669 | | 200 basis point decrease in discount rate | | 248,352 | | | 288,381 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 241,944 | | | $ | 279,718 | | Applying a 1.2 multiplier to default rate | | 239,987 | | | 276,422 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 245,853 | | | $ | 286,358 | | Applying a 0.8 multiplier to default rate | | 247,806 | | | 289,702 | |
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| Schedule Of Estimated Fair Value Of Sensitivity Assets And Liabilities |
Key economic assumptions are used to compute the fair value of Servicing Assets. The sensitivity of the current fair value to immediate changes in assumptions at December 31, 2025 and 2024 for Servicing Assets are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Servicing Assets: | | December 31, 2025 | | December 31, 2024 | | Fair value, using the following assumptions: | | $ | 17,601 | | | $ | 14,333 | | | Weighted-average market servicing rate | | 0.598 | % | | 0.635 | % | | Weighted-average prepayment rate | | 21.72 | % | | 18.83 | % | | Weighted-average default rate | | 11.86 | % | | 13.89 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.025% | | $ | 16,586 | | | $ | 13,419 | | Market servicing rate decrease of 0.025% | | 18,615 | | | 15,247 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 17,143 | | | $ | 14,016 | | Applying a 0.9 multiplier to prepayment rate | | 18,068 | | | 14,655 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 17,310 | | | $ | 14,052 | | Applying a 0.9 multiplier to default rate | | 17,892 | | | 14,616 | |
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