Financial Instruments and Fair Value Measurements (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following tables present the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):
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As of March 31, 2026 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Financial Assets |
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Cash and cash equivalents: |
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Money market funds |
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$ |
4,338 |
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$ |
— |
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|
$ |
— |
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|
$ |
4,338 |
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CFE assets: |
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|
|
|
|
|
|
|
|
|
|
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Finance receivables at fair value |
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|
— |
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|
|
— |
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|
|
601,066 |
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|
|
601,066 |
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Finance receivables at fair value |
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|
— |
|
|
|
— |
|
|
|
203,547 |
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|
|
203,547 |
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Other assets (beneficial interests in securitizations) |
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— |
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|
737 |
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|
|
— |
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|
|
737 |
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Total financial assets |
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$ |
4,338 |
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$ |
737 |
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$ |
804,613 |
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$ |
809,688 |
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Financial Liabilities |
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CFE liabilities: |
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Securitization debt of consolidated VIEs |
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— |
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537,671 |
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|
13,350 |
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|
551,021 |
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Total financial liabilities |
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$ |
— |
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$ |
537,671 |
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$ |
13,350 |
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$ |
551,021 |
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As of December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Financial Assets |
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Cash and cash equivalents: |
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Money market funds |
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$ |
2,534 |
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$ |
— |
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$ |
— |
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$ |
2,534 |
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CFE assets: |
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Finance receivables at fair value |
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— |
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|
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— |
|
|
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441,084 |
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|
441,084 |
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Finance receivables at fair value |
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— |
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— |
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367,552 |
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|
367,552 |
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Other assets (beneficial interests in securitizations) |
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— |
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|
946 |
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— |
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|
946 |
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Total financial assets |
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$ |
2,534 |
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$ |
946 |
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$ |
808,636 |
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$ |
812,116 |
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Financial Liabilities |
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CFE liabilities: |
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Securitization debt of consolidated VIEs |
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— |
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393,244 |
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— |
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|
393,244 |
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Total financial liabilities |
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$ |
— |
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$ |
393,244 |
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$ |
— |
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$ |
393,244 |
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| Schedule of Reconciliation of Financial Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs |
The following table presents a reconciliation of the financial assets, which were measured at fair value on a recurring basis using Level 3 inputs (in thousands):
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Successor |
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Finance Receivables of Consolidated CFEs |
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Finance Receivables at Fair Value |
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Securitization Debt of Consolidated CFEs |
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Fair value as of January 1, 2026 |
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$ |
441,084 |
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$ |
367,552 |
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$ |
— |
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Transfer within Level 3 categories |
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247,092 |
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(247,092 |
) |
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— |
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Transfers into Level 3 |
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— |
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— |
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13,011 |
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Losses included in realized and unrealized losses |
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(23,716 |
) |
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(4,453 |
) |
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|
339 |
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Losses included in Warranties and GAP |
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(884 |
) |
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(880 |
) |
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— |
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Issuances, net of discount |
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— |
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113,495 |
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— |
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Paydowns |
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(61,837 |
) |
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(23,928 |
) |
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— |
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Other |
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(673 |
) |
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(1,147 |
) |
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— |
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Fair value as of March 31, 2026 |
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$ |
601,066 |
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$ |
203,547 |
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$ |
13,350 |
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Successor |
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Finance Receivables of Consolidated CFEs |
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Finance Receivables at Fair Value |
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Securitization Debt of Consolidated CFEs |
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Fair value as of January 15, 2025 |
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$ |
387,444 |
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$ |
437,568 |
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|
$ |
14,934 |
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Transfer within Level 3 categories |
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|
349,623 |
|
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(349,623 |
) |
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— |
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Losses included in realized and unrealized losses |
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(13,991 |
) |
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|
3,176 |
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|
273 |
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Losses included in Warranties and GAP |
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(804 |
) |
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(976 |
) |
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— |
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Issuances, net of discount |
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— |
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120,532 |
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— |
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Paydowns |
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(44,268 |
) |
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(28,949 |
) |
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— |
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Other |
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(404 |
) |
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(1,128 |
) |
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— |
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Fair value as of March 31, 2025 |
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$ |
677,600 |
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$ |
180,600 |
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$ |
15,207 |
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Predecessor |
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Finance Receivables of Consolidated CFEs |
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Finance Receivables at Fair Value |
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Securitization Debt of Consolidated CFEs |
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Fair value as of January 1, 2025 |
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$ |
214,420 |
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$ |
289,428 |
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$ |
16,922 |
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Reclassification of finance receivables due to a change in Accounting Policy |
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180,883 |
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139,052 |
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— |
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Transfer within Level 3 categories |
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(439 |
) |
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|
439 |
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— |
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Losses included in realized and unrealized losses |
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(4,707 |
) |
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(2,265 |
) |
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(1,988 |
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Losses included in Warranties and GAP |
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(52 |
) |
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(188 |
) |
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— |
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Issuances, net of discount |
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|
— |
|
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|
14,337 |
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|
— |
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Paydowns |
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(2,947 |
) |
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(2,992 |
) |
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— |
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Other |
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|
286 |
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(243 |
) |
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— |
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Fair value as of January 14, 2025 |
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$ |
387,444 |
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$ |
437,568 |
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$ |
14,934 |
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| Summary of Gains or Losses Recorded Related to Eligible Financial Instruments |
The following table presents the gains or losses recorded in "Realized and unrealized losses, net of recoveries" in the condensed consolidated statements of operations related to the eligible financial instruments for which the fair value option was elected (in thousands):
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Successor |
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Predecessor |
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Three months ended March 31, |
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Period from January 15 through March 31, |
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Period from January 1 through January 14, |
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2026 |
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2025 |
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|
2025 |
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Finance receivables at fair value |
$ |
28,340 |
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$ |
12,047 |
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$ |
6,451 |
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Finance receivables held for sale, net |
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— |
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— |
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|
2,737 |
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Debt of securitized VIEs at fair value |
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(1,312 |
) |
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|
1,952 |
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(2,267 |
) |
Collection expenses |
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2,974 |
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|
2,638 |
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|
492 |
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Recoveries |
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(5,356 |
) |
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(5,542 |
) |
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(683 |
) |
Other |
|
37 |
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|
5 |
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|
62 |
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Total net loss included in "Realized and unrealized losses, net of recoveries" |
$ |
24,683 |
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$ |
11,100 |
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$ |
6,792 |
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| Summary of Other Relevant Data Related to Finance Receivables Carried at Fair Value |
The following table presents other relevant data related to the finance receivables carried at fair value (in thousands):
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As of March 31, 2026 |
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Finance Receivables of CFEs at Fair Value |
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Finance Receivables at Fair Value |
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Aggregate unpaid principal balance included within finance receivables that are reported at fair value |
|
$ |
674,592 |
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$ |
227,415 |
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Aggregate fair value of finance receivables that are reported at fair value |
|
$ |
601,066 |
|
|
|
$ |
203,547 |
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Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due) |
|
$ |
6,276 |
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$ |
4,400 |
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Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due) |
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$ |
5,607 |
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$ |
2,896 |
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As of December 31, 2025 |
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Finance Receivables of CFEs at Fair Value |
|
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Finance Receivables at Fair Value |
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Aggregate unpaid principal balance included within finance receivables that are reported at fair value |
|
$ |
490,303 |
|
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$ |
419,632 |
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Aggregate fair value of finance receivables that are reported at fair value |
|
$ |
441,084 |
|
|
|
$ |
367,552 |
|
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Unpaid principal balance of receivables within finance receivables that are reported at fair value and are on nonaccrual status (90 days or more past due) |
|
$ |
8,315 |
|
|
|
$ |
5,824 |
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Aggregate fair value of receivables carried at fair value that are on nonaccrual status (90 days or more past due) |
|
$ |
7,460 |
|
|
|
$ |
4,050 |
|
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| Summary of Other Relevant Data Related to Debt of Securitized VIEs Carried at Fair Value |
The following table presents other relevant data related to securitization debt of consolidated VIEs carried at fair value (in thousands):
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|
|
|
As of March 31, 2026 |
|
Securitization debt of consolidated VIEs at Fair Value |
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Aggregate unpaid principal balance of rated notes of securitized VIEs |
|
$ |
562,502 |
|
Aggregate fair value of rated notes of securitized VIEs |
|
$ |
551,021 |
|
|
|
|
|
|
As of December 31, 2025 |
|
Securitization debt of consolidated VIEs at Fair Value |
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Aggregate unpaid principal balance of rated notes of securitized VIEs |
|
$ |
403,414 |
|
Aggregate fair value of rated notes of securitized VIEs |
|
$ |
393,244 |
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