v3.26.1
Business Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Information
Note 16. Business Segment Information
We have three reportable segments: Lending, Technology Platform and Financial Services. Each of our reportable segments is a strategic business unit that serves specific needs of our members based on the products and services provided. Assets are not allocated to reportable segments, as our CODM does not evaluate reportable segments using discrete asset information. Refer to our Annual Report on Form 10-K for discussion of our segment organization.
Segment Results
The following tables present financial information, including the measure of contribution profit, for each reportable segment. Directly attributable expenses are the significant expenses of each of our respective segments relative to those regularly provided to our CODM. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.
Three Months Ended March 31, 2026Lending
Technology
Platform
Financial Services
Reportable Segments Total(1)
Corporate/Other(1)
Total
Net revenue
Net interest income (expense)$500,231 $355 $227,740 $728,326 $(35,338)$692,988 
Noninterest income (loss)(2)
142,189 74,731 200,803 417,723 (10,343)407,380 
Total net revenue (loss)$642,420 $75,086 $428,543 $1,146,049 $(45,681)$1,100,368 
Provision for credit losses— — (8,890)(8,890)
Servicing rights – change in valuation inputs or assumptions(3)
(13,163)— — (13,163)
Residual interests classified as debt – change in valuation inputs or assumptions(4)
27 — — 27 
Directly attributable expenses(5):
Compensation and benefits(52,249)(46,090)(57,425)
Direct advertising(96,905)— (11,994)
Lead generation(59,144)— (51,624)
Loan origination and servicing costs(24,696)— — 
Product fulfillment— (2,527)(26,597)
Tools and subscriptions— (6,991)— 
Member incentives— — (24,634)
Professional services(3,861)(4,311)(9,649)
Intercompany technology platform expenses(612)— (12,727)
Other(9,431)(3,168)(29,419)
Directly attributable expenses(246,898)(63,087)(224,069)(534,054)
Contribution profit
$382,386 $11,999 $195,584 $589,969 
Three Months Ended March 31, 2025Lending
Technology
Platform
Financial Services
Reportable Segments Total(1)
Corporate/Other(1)
Total
Net revenue
Net interest income (expense)$360,621 $413 $173,199 $534,233 $(35,507)$498,726 
Noninterest income (loss)(2)
52,752 103,014 129,920 285,686 (12,653)273,033 
Total net revenue (loss)$413,373 $103,427 $303,119 $819,919 $(48,160)$771,759 
Provision for credit losses— — (5,639)(5,639)
Servicing rights – change in valuation inputs or assumptions(3)
(1,074)— — (1,074)
Residual interests classified as debt – change in valuation inputs or assumptions(4)
35 — — 35 
Directly attributable expenses(5):
Compensation and benefits(35,889)(44,486)(42,479)
Direct advertising(67,769)— (5,676)
Lead generation(40,245)— (31,668)
Loan origination and servicing costs(18,721)— — 
Product fulfillment— (13,962)(18,701)
Tools and subscriptions— (6,890)— 
Member incentives— — (16,083)
Professional services(2,235)(2,670)(7,257)
Intercompany technology platform expenses(489)— (11,021)
Other(8,051)(4,506)(16,263)
Directly attributable expenses(173,399)(72,514)(149,148)(395,061)
Contribution profit
$238,935 $30,913 $148,332 $418,180 
____________________
(1)Within the Technology Platform segment, intercompany fees were $24,737 and $16,195 for the three months ended March 31, 2026 and 2025, respectively. This revenue is generally based on transactions made at market-based rates. The equal and offsetting intercompany expenses are reflected within all three segments’ directly attributable expenses, as well as within expenses not allocated to segments. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below.
(2)Refer to Note 2. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income.
(3)Reflects changes in fair value inputs and assumptions on servicing rights, including conditional prepayment, default rates and discount rates. These assumptions are highly sensitive to market interest rate changes and are not indicative of our performance or results of operations. Moreover, these non-cash charges, which are recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income, are unrealized during the period and, therefore, have no impact on our cash flows from operations.
(4)Reflects changes in fair value inputs and assumptions on residual interests classified as debt, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated securitization VIEs by purchasing residual interests, we receive proceeds at the time of the closing of the securitization and, thereafter, pass along contractual cash flows to the residual interest owner. These residual debt obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income, but they have no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to contractual securitization collateral cash flows), or the general operations of our business.
(5)The significant expense categories and amounts presented align with the segment-level information that is regularly provided to the CODM. Other expenses for our Lending segment primarily include loan marketing expenses, member promotional expenses, tools and subscriptions, travel and occupancy-related costs and third-party loan fraud (net of related insurance recoveries). Other expenses for our Technology Platform are primarily related to travel and occupancy-related costs, advertising and marketing and accounts receivable write-offs. Other expenses for our Financial Services segment primarily include operational product losses, network servicing fees, travel and occupancy-related costs, tools and subscriptions, and marketing expenses.
The following table reconciles reportable segments total contribution profit to consolidated income before income taxes. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.
Three Months Ended March 31,
20262025
Reportable segments total contribution profit $589,969 $418,180 
Corporate/Other total net revenue (loss)(45,681)(48,160)
Intercompany expenses24,737 16,195 
Servicing rights – change in valuation inputs or assumptions13,163 1,074 
Residual interests classified as debt – change in valuation inputs or assumptions(27)(35)
Not allocated to segments:
Share-based compensation expense(72,012)(63,756)
Employee-related costs(1)
(108,455)(88,197)
Depreciation and amortization expense(67,578)(55,283)
Other corporate and unallocated(2)
(134,564)(100,236)
Income before income taxes$199,552 $79,782 
__________________
(1)Includes expenses related to compensation, benefits, restructuring charges, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.
(2)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, amortization of premiums on a credit default swap, corporate and FDIC insurance costs, foreign currency translation adjustments and transaction-related expenses.
Goodwill
Goodwill as of both March 31, 2026 and December 31, 2025 was $1,393,505. As of each of March 31, 2026 and December 31, 2025, goodwill attributable to the Lending, Technology Platform and Financial Services reportable segments was $17,688, $1,338,658 and $37,159, respectively. Management does not believe that the goodwill in any of the reporting units is impaired as of March 31, 2026.