v3.26.1
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
 March 31, 2026
BalanceLevel 1Level 2Level 3
Assets:
Cash equivalents$1,445,096 $1,150,474 $294,622 $— 
Marketable securities30,434 30,434 — — 
Derivative financial instruments49,503 — 49,503 — 
Investments in Retained Notes58,356 — 58,356 — 
Investments in Residual Interests9,540 — — 9,540 
$1,592,929 $1,180,908 $402,481 $9,540 
Liabilities:
Derivative financial instruments$1,736 $— $1,736 $— 
LiveWire warrants1,518 993 525 — 
$3,254 $993 $2,261 $— 
 December 31, 2025
Balance Level 1Level 2Level 3
Assets:
Cash equivalents$2,693,739 $2,553,850 $139,889 $— 
Marketable securities31,513 31,513 — — 
Derivative financial instruments108,435 — 108,435 — 
Investments in Retained Notes68,130 — 68,130 — 
Investments in Residual Interests10,156 — — 10,156 
$2,911,973 $2,585,363 $316,454 $10,156 
Liabilities:
Derivative financial instruments$6,494 $— $6,494 $— 
LiveWire warrants1,901 1,244 657 — 
$8,395 $1,244 $7,151 $— 
 March 31, 2025
Balance Level 1Level 2Level 3
Assets:
Cash equivalents$1,626,758 $1,377,048 $249,710 $— 
Marketable securities30,496 30,496 — — 
Derivative financial instruments7,692 — 7,692 — 
$1,664,946 $1,407,544 $257,402 $— 
Liabilities:
Derivative financial instruments$9,644 $— $9,644 $— 
LiveWire warrants644 421 223 — 
$10,288 $421 $9,867 $— 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the reconciliation for all Level 3 assets measured at fair value on a recurring basis (in thousands):
Investments in Residual Interests
Fair value at December 31, 2025
$10,156 
Investment Proceeds(357)
Unrealized loss included in Other Comprehensive Loss
(259)
Fair value at March 31, 2026
$9,540 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The fair values of the Residual Interests were calculated using the following ranges of key assumptions:
March 31,
2026		December 31,
2025
Recovery rate on defaulted receivables
50.00%50.00%
Prepayment speed
1.40%1.40%
Expected cumulative lifetime losses
2.06% - 3.38%
2.01% - 3.21%
Weighted-average life (in years)
0.81 - 2.35
0.96 - 2.46
Residual cash flows discount rate
15.00%15.00%
The weighted average of the key assumptions utilized in calculating the current and prior period fair values of the Residual Interests were as follows:
March 31,
2026		December 31,
2025
Recovery rate on defaulted receivables
50.00%50.00%
Prepayment speed
1.40%1.40%
Expected cumulative lifetime losses
2.77%2.47%
Weighted-average life (in years)
1.811.87
Residual cash flows discount rate
15.00%15.00%
Schedule of Sensitivity Analysis of Fair Value, Investment in Retained Notes and Residual Interests
The sensitivities of the fair value to immediate adverse changes in the key assumptions for the investment in Residual Interests at March 31, 2026 and December 31, 2025 were as follows (dollars in thousands):

March 31, 2026December 31, 2025
Fair value of Residual Interests
$9,540 $10,156 
Prepayment speed
Impact on fair value of a 1.5% absolute prepayment speed adverse change
$(77)$(94)
Impact on fair value of a 1.6% absolute prepayment speed adverse change
$(150)$(186)
Expected cumulative lifetime losses
Impact on fair value of a 25 bps adverse change
$(160)$(183)
Impact on fair value of a 50 bps adverse change
$(319)$(365)
Residual cash flows discount rate
Impact on fair value of a 25 bps adverse change
$(40)$(44)
Impact on fair value of a 50 bps adverse change
$(80)$(88)
The sensitivities of the fair value to immediate adverse changes in the key assumptions for the investment in Retained Notes at March 31, 2026 and December 31, 2025 were as follows (dollars in thousands):
March 31, 2026December 31, 2025
Fair value of Retained Notes
$58,356 $68,130 
Weighted-average life (in years)
1.7
1.86
Discount rate
Impact on fair value of a 50 bps adverse change
$(494)$(300)
Impact on fair value of a 100 bps adverse change
$(754)$(613)
Summary Of the Unrealized Positions for Available for Sale Residual Interests and Retained Notes
The table below summarizes the unrealized positions for Residual Interests and Retained Notes (in thousands):
March 31, 2026
Amortized Cost
Unrealized Losses
Fair Value
Residual Interests
$9,715 $(175)$9,540 
Retained Notes
58,397 (41)58,356 
Total Beneficial Interests
$68,112 $(216)$67,896 
December 31, 2025
Amortized Cost
Unrealized Gains
Fair Value
Residual Interests
$10,109 $47 $10,156 
Retained Notes
68,001 129 68,130 
Total Beneficial Interests
$78,110 $176 $78,286 
Schedule of Fair Value, Cash Flows Received/Paid to all Motorcycle Loan Securitization Trusts
The table below provides information regarding certain cash flows received from and paid to all motorcycle loan off-balance sheet securitized trusts during the three months ended March 31, 2026 (in thousands):
Servicing, late, and ancillary fees received
$4,390 
Collection of retained securitization beneficial interests
$10,261 
Schedule of the Fair Value and Carrying Value of the Company's Financial Instruments The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands):
 March 31, 2026December 31, 2025March 31, 2025
 Fair ValueCarrying ValueFair ValueCarrying ValueFair ValueCarrying Value
Assets:
Finance receivables held for sale, net$426,237 $426,792 $268,111 $264,238 $— $— 
Finance receivables held for investment, net (a)
$1,991,436 $1,977,191 $1,665,453 $1,653,372 $7,428,722 $7,399,607 
Liabilities:
Deposits, net$478,777 $477,638 $537,136 $536,644 $517,576 $513,330 
Debt:
Unsecured commercial paper$498,685 $498,685 $497,776 $497,776 $498,500 $498,500 
Asset-backed U.S. commercial paper conduit facility$— $— $— $— $531,260 $531,260 
Asset-backed Canadian commercial paper conduit facility$— $— $— $— $68,275 $68,275 
Asset-backed securitization debt$— $— $— $— $1,668,698 $1,658,745 
Medium-term notes$1,333,548 $1,335,802 $2,195,390 $2,171,963 $3,837,976 $3,797,100 
Senior notes$232,324 $297,309 $241,057 $297,278 $690,824 $746,981 
(a)Excludes the $37.4 million and $47.6 million estimated recovery balances included in the allowance for credit losses as of March 31, 2026 and December 31, 2025, respectively.