The Company provides retail financial services to customers of its dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to dealer sales of motorcycles to retail customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts.

The Company offers wholesale financing to its dealers in the U.S. and Canada. Wholesale finance receivables are related primarily to the Company's sale of motorcycles, related parts and accessories and apparel to dealers. Wholesale loans to dealers are generally secured by financed inventory or property.

Finance receivables held for investment, net includes both retail and wholesale finance receivables, including amounts held by consolidated VIEs, which management has the intent and ability to hold. Finance receivables held for investment are recorded in the financial statements at amortized cost net of an allowance for credit losses as appropriate.

Finance receivables held for sale, net includes retail finance receivables that management intends to sell. The Company expects to sell approximately two-thirds of future retail loan originations through December 2030 to two counterparties under an agreement with the two counterparties (Forward Flow Agreement). The Company expects HDFS will continue to service the future retail loan originations it sells to the counterparties and earn a loan servicing fee of 1% per annum for prime

loans and 2.5% per annum for subprime loans. When finance receivables are reclassified to held for sale from held for investment status based on management's intent to sell them, any previously recorded allowance for credit losses associated with the finance receivables is reversed. Finance receivables transferred to, or originated as, held for sale are measured at the lower of amortized cost or fair value. If fair value is lower than amortized cost, a valuation allowance is recorded through Financial services revenue on the Consolidated statements of operations. The valuation allowance is updated each period to reflect the difference between amortized cost and the estimated selling price of the receivables.

Amortized cost for finance receivables held for investment and held for sale includes the principal outstanding, accrued interest, and deferred loan fees and costs. Deferred loan fee and cost amortization associated with loans held for investment is included within Financial services revenue on the Consolidated statements of operations. Amortization of deferred loan fees and costs is terminated at the time a loan is reclassified to held for sale status and any remaining deferred balances are included in any subsequent gain or loss on sale of the associated finance receivables.

Finance receivables held for investment, net and Finance receivables held for sale, net were as follows (in thousands):


	March 31, 2026		December 31, 2025		March 31, 2025
Retail finance receivables held for investment	$	885,450	$	754,421	$	6,514,733
Wholesale finance receivables held for investment	1,150,757		948,800		1,278,052
	2,036,207		1,703,221		7,792,785
Allowance for credit losses	(21,596)		(2,235)		(393,178)
Finance receivables held for investment, net	2,014,611		1,700,986		7,399,607

Finance receivables held for sale, net	426,792		264,238		—
Total finance receivables, net	$	2,441,403	$	1,965,224	$	7,399,607

The Company's allowance for credit losses reflects expected lifetime credit losses, net of expected recoveries, on its finance receivables held for investment. Based on differences in the nature of the finance receivables held for investment and the underlying methodology for calculating the allowance for credit losses, the Company segments its finance receivables held for investment into the retail and wholesale portfolios. The Company further disaggregates each portfolio by credit quality indicators. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit quality indicators for each portfolio.

The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes weighted-average remaining maturity and vintage-based loss forecast methodologies. Vintage-based forecasts include decompositions for probability of default, exposure at default, attrition rate, and recovery balance rate. Reasonable and supportable economic forecasts for a one- or two-year period are incorporated into the methodologies to reflect the estimated impact of changes in future economic conditions, such as unemployment rates, household obligations or other relevant factors, over the reasonable and supportable period. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience immediately or using a mean-reversion process over a three-year period. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors. As of March 31, 2026 and December 31, 2025, the retail allowance for credit losses was in an asset position as estimated recoveries from retail finance receivables previously charged-off exceeded the remaining allowance for credit losses on loans held for investment.

The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review to determine whether the loans share similar risk characteristics. The Company individually evaluates loans that do not share risk characteristics. Loans identified as those for which foreclosure is probable are classified as Non-Performing, and a specific allowance for credit losses is established when appropriate. The specific allowance is determined based on the amortized cost of the related finance receivable and the estimated fair value of the collateral, less selling costs and the cash that the Company expects to receive. Finance receivables in the wholesale portfolio not individually assessed are aggregated, based on similar risk characteristics, according to the Company’s internal risk rating system and measured collectively. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past credit loss experience, reasonable and supportable economic forecasts, and the value of the underlying collateral and expected recoveries.

The Company considers various third-party economic forecast scenarios as part of estimating the allowance for expected credit losses and applies a probability-weighting to those economic forecast scenarios. Each quarter, the Company's outlook on economic conditions impacts the Company's retail and wholesale estimates for expected credit losses. At the end of the first quarter of 2026, the Company's probability weighting of its economic forecast scenarios was weighted towards more pessimistic scenarios given continued challenging macro-economic conditions including a persistently high interest rate environment, ongoing elevated inflation levels, and muted consumer confidence.

Additionally, the historical experience incorporated into the portfolio-specific models does not fully reflect the Company's comprehensive expectations regarding the future. As such, the Company incorporated qualitative factors to establish an appropriate allowance for credit losses balance. These factors may include motorcycle recovery value considerations, delinquency adjustments, specific problem loan trends, or changes in other portfolio-specific loan characteristics as appropriate.

Due to the use of projections and assumptions in estimating the losses, the amount of losses incurred by the Company in either portfolio could differ from the amounts estimated. Further, the Company’s allowance for credit losses incorporates known conditions at the balance sheet date and the Company’s expectations surrounding the economic forecasts. The Company will continue to monitor future economic trends and conditions. Expectations surrounding the Company's economic forecasts may change in future periods as additional information becomes available.


	Three months ended March 31, 2026
	Retail		Wholesale		Total
Balance, beginning of period	$	(22,342)	$	24,577	$	2,235
Provision for credit losses	12,970		183		13,153
Charge-offs	(3,942)		—		(3,942)
Recoveries	10,025		125		10,150

Balance, end of period	$	(3,289)	$	24,885	$	21,596
	Three months ended March 31, 2025
	Retail		Wholesale		Total
Balance, beginning of period	$	378,373	$	22,810	$	401,183
Provision for credit losses	50,801		2,533		53,334
Charge-offs	(77,534)		(641)		(78,175)
Recoveries	16,836		—		16,836
Balance, end of period	$	368,476	$	24,702	$	393,178

The Company manages retail credit risk through its credit approval process and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. For the Company’s U.S. and Canadian retail finance receivables, the Company determines the credit quality indicator for each loan at origination and does not update the credit quality indicator subsequent to the loan origination date.

As loan performance by credit quality indicator differs between the U.S. and Canadian retail loans, the Company’s credit quality indicators vary for the two portfolios. For U.S. retail finance receivables, those with a FICO score of 740 or above at origination are generally considered super prime, loans with a FICO score between 640 and 740 are generally categorized as prime, and loans with FICO score below 640 are generally considered sub-prime. For Canadian retail finance receivables, those with a FICO score of 700 or above at origination are generally considered super prime, loans with a FICO score between 620 and 700 are generally categorized as prime, and loans with FICO score below 620 are generally considered sub-prime.

The amortized cost of the Company's U.S. and Canadian retail finance receivables held for investment, along with total retail gross charge-offs by vintage and credit quality indicator were as follows (in thousands):


	March 31, 2026
	2026		2025		2024		2023		2022		2021 & Prior		Total
U.S. Retail:
Super prime	$	80,913	$	173,389	$	94,917	$	47,238	$	14,123	$	8,525	$	419,105
Prime	72,821		167,766		86,815		48,573		22,808		11,481		410,264
Sub-prime	26,901		19,546		894		802		753		1,603		50,499
	180,635		360,701		182,626		96,613		37,684		21,609		879,868
Canadian Retail:
Super prime	2,408		1,258		2		2		3		3		3,676
Prime	1,086		623		3		2		3		9		1,726
Sub-prime	77		98		2		1		1		1		180
	3,571		1,979		7		5		7		13		5,582
	$	184,206	$	362,680	$	182,633	$	96,618	$	37,691	$	21,622	$	885,450
Gross charge-offs for the three months ended March 31, 2026:
U.S. Retail	$	79	$	2,037	$	1,041	$	489	$	231	$	47	$	3,924
Canadian Retail	—		18		—		—		—		—		18
	$	79	$	2,055	$	1,041	$	489	$	231	$	47	$	3,942


	December 31, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
U.S. Retail:
Super prime	$	185,774	$	108,025	$	54,501	$	16,944	$	9,675	$	1,544	$	376,463
Prime	166,971		96,360		54,902		26,268		11,525		2,413		358,439
Sub-prime	13,436		986		897		830		726		1,098		17,973
	366,181		205,371		110,300		44,042		21,926		5,055		752,875
Canadian Retail:
Super prime	1,012		5		5		5		3		1		1,031
Prime	377		4		3		8		5		8		405
Sub-prime	101		2		3		1		1		2		110
	1,490		11		11		14		9		11		1,546
	$	367,671	$	205,382	$	110,311	$	44,056	$	21,935	$	5,066	$	754,421
Gross charge-offs for the year ended December 31, 2025:
U.S. Retail	$	3,280	$	48,145	$	53,272	$	41,304	$	21,354	$	13,556	$	180,911
Canadian Retail	126		996		991		821		383		427		3,744
	$	3,406	$	49,141	$	54,263	$	42,125	$	21,737	$	13,983	$	184,655


	March 31, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
U.S. Retail:
Super prime	$	246,251	$	930,951	$	619,801	$	390,933	$	173,826	$	72,153	$	2,433,915
Prime	237,047		959,136		746,249		588,551		316,903		179,922		3,027,808
Sub-prime	83,027		290,920		201,277		159,669		104,683		86,365		925,941
	566,325		2,181,007		1,567,327		1,139,153		595,412		338,440		6,387,664
Canadian Retail:
Super prime	8,019		32,371		25,930		15,301		6,824		3,038		91,483
Prime	2,247		8,365		7,693		6,000		3,582		2,917		30,804
Sub-prime	334		1,578		1,081		807		370		612		4,782
	10,600		42,314		34,704		22,108		10,776		6,567		127,069
	$	576,925	$	2,223,321	$	1,602,031	$	1,161,261	$	606,188	$	345,007	$	6,514,733
Gross charge-offs for the three months ended March 31, 2025:
U.S. Retail	$	—	$	18,323	$	22,716	$	18,667	$	9,775	$	6,425	$	75,906
Canadian Retail	—		419		491		365		159		194		1,628
	$	—	$	18,742	$	23,207	$	19,032	$	9,934	$	6,619	$	77,534

Information about the asset performance of the total portfolio of retail loans serviced by the Company ("Managed Portfolio"), including receivables retained ("Owned Portfolio"), along with receivables sold to third parties or included in off-balance sheet VIEs ("Off-Balance Sheet Portfolio"), is provided in the tables below (in thousands):


	Principal Balance				Credit Losses
	Total		30+ Day Delinquent		Three months ended
	March 31, 2026		March 31, 2026		March 31, 2026
Owned portfolio	$	1,265,564	$	15,178	$	(6,111)
Off-balance sheet portfolio	4,743,111		217,528		60,420
Managed portfolio	$	6,008,675	$	232,706	$	54,309

The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon the Company’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. Additionally, the Company classifies dealers identified as those in which foreclosure is probable as Non-Performing. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated by the Company on a quarterly basis.

The amortized cost of the Company's wholesale finance receivables, by vintage and credit quality indicator, was as follows (in thousands):


	March 31, 2026
	2026		2025		2024		2023		2022		2021 & Prior		Total
Non-Performing	$	6	$	1,862	$	1,650	$	183	$	19	$	—	$	3,720
Doubtful	18,380		27,965		5,043		909		—		1		52,298
Substandard	3,484		4,138		3,104		21		—		—		10,747
Special Mention	10,708		12,106		4,533		7		—		—		27,354
Medium Risk	—		—		—		—		—		—		—
Low Risk	620,947		358,919		40,245		7,451		28,924		152		1,056,638
	$	653,525	$	404,990	$	54,575	$	8,571	$	28,943	$	153	$	1,150,757
Gross charge-offs for the three months ended March 31, 2026:
Wholesale	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	December 31, 2025
	2025		2024		2023		2022		2021		2010 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	13,010		5,984		1,002		19		—		1		20,016
Substandard	3,192		2,613		21		—		—		—		5,826
Special Mention	45,320		5,331		289		—		—		—		50,940
Medium Risk	414		57		—		—		—		—		471
Low Risk	762,221		71,071		8,370		29,081		803		1		871,547
	$	824,157	$	85,056	$	9,682	$	29,100	$	803	$	2	$	948,800
Gross charge-offs for the year ended December 31, 2025:
Wholesale	$	2,775	$	1,017	$	191	$	—	$	—	$	2,301	$	6,284


	March 31, 2025
	2025		2024		2023		2022		2021		2010 & Prior		Total
Non-Performing	$	2,208	$	3,698	$	643	$	—	$	—	$	—	$	6,549
Doubtful	13,553		19,970		3,765		107		—		8,357		45,752
Substandard	5,038		6,560		1,683		—		—		—		13,281
Special Mention	2,494		2,016		297		—		—		—		4,807
Medium Risk	2,335		1,375		131		—		—		—		3,841
Low Risk	664,472		445,883		50,616		38,095		1,547		3,209		1,203,822
	$	690,100	$	479,502	$	57,135	$	38,202	$	1,547	$	11,566	$	1,278,052
Gross charge-offs for the three months ended March 31, 2025:
Wholesale	$	1	$	506	$	134	$	—	$	—	$	—	$	641

Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables at amortized cost, excluding accrued interest, are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. The Company reverses accrued interest related to charged-off accounts against Financial services interest income when the account is charged-off. The Company reversed $0.3 million and $9.4 million of accrued interest against Financial services interest income during the three months ended March 31, 2026 and March 31, 2025, respectively. Due to the timely write-off of accrued interest, the Company made the election provided under Accounting Standards Codification (ASC) Topic 326, Financial Instruments - Credit Losses to exclude accrued interest from its allowance for credit losses. Accordingly, as of March 31, 2026, December 31, 2025, and March 31, 2025, all retail finance receivables were accounted for as interest-earning receivables.

Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once the Company determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the Company determines that foreclosure is probable, and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Once an account is charged-off, the Company will reverse the associated accrued interest against Financial services interest income. As the Company follows a non-accrual policy for interest, the allowance for credit losses excludes accrued interest for the wholesale portfolio. There were no charged off accounts for the three months ended March 31, 2026, and as such, the Company did not reverse any wholesale accrued interest during that period. The Company reversed $0.1 million of accrued interest related to the charge-off of Non-Performing dealer loans during the three months ended March 31, 2025.

Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):


	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2026		March 31, 2026		Recognized
Wholesale:
No related specific allowance recorded	$	3,715	$	1,043	$	—
Related specific allowance recorded	—		2,677		14
	$	3,715	$	3,720	$	14

	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2025		March 31, 2025		Recognized
Wholesale:
No related specific allowance recorded	$	7,510	$	6,549	$	37
Related specific allowance recorded	3,753		—		—
	$	11,263	$	6,549	$	37

The aging analysis of the Company's finance receivables held for investment was as follows (in thousands):


	March 31, 2026
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	864,200	$	9,478	$	4,686	$	7,086	$	—	$	21,250	$	885,450
Wholesale	1,141,145		2,775		2,107		3,711		1,019		9,612		1,150,757
	$	2,005,345	$	12,253	$	6,793	$	10,797	$	1,019	$	30,862	$	2,036,207

	December 31, 2025
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	735,999	$	9,715	$	2,942	$	5,765	$	—	$	18,422	$	754,421
Wholesale	941,116		1,830		948		4,288		618		7,684		948,800
	$	1,677,115	$	11,545	$	3,890	$	10,053	$	618	$	26,106	$	1,703,221

	March 31, 2025
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	6,266,363	$	138,090	$	52,813	$	57,467	$	—	$	248,370	$	6,514,733
Wholesale	1,268,943		5,273		1,475		1,721		640		9,109		1,278,052
	$	7,535,306	$	143,363	$	54,288	$	59,188	$	640	$	257,479	$	7,792,785

Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize economic loss, the Company may modify certain finance receivables as troubled loan modifications. Total finance receivables subject to troubled loan modifications were not significant as of March 31, 2026, December 31, 2025, and