FAIR VALUE MEASUREMENT (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | Investments in loans and securities (Notes) | $ | — | | | $ | 67,715 | | | $ | 340,475 | | | $ | 408,190 | | Investments in loans and securities (Certificates) | — | | | — | | | 532,501 | | | 532,501 | | Investments in loans and securities (Loans) | — | | | — | | | 4,578 | | | $ | 4,578 | | Liabilities: | | | | | | | | | Warrant liability | $ | 4,723 | | $ | — | | $ | — | | $ | 4,723 | | Other liabilities (1) | — | | | — | | | 13,112 | | | 13,112 |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | Investments in loans and securities (Notes) (2) | $ | — | | | $ | 115,220 | | | $ | 125,053 | | | $ | 240,273 | | Investments in loans and securities (Certificates) (2) | — | | | — | | | 533,243 | | | 533,243 | | | Liabilities: | | | | | | | | | Warrant liability | $ | 890 | | $ | 3 | | $ | — | | $ | 893 | | Other liabilities (1) | — | | | — | | | 6,090 | | | 6,090 | |
(1) Included in “Accrued expenses and other liabilities” in the consolidated balance sheets. See Note 15 for additional information. (2) Accrued interest receivable of $14.3 million, previously reported within “Fee receivables” as of December 31, 2024, has been reclassified to conform to the current period’s presentation.
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| Schedule of Class of Warrant or Right Outstanding |
The following tables summarize the Warrant liability activity for the year ended December 31, 2025, 2024 and 2023 (in thousands):
| | | | | | | | | Balance as of December 31, 2023 | $ | 3,242 | | | Change in fair value | (2,349) | | | Balance as of December 31, 2024 | $ | 893 | | | Change in fair value | 3,830 | | | Balance as of December 31, 2025 | $ | 4,723 | |
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| Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table presents activities of investments in securities for which we elected the fair value option. See Note 10 for the assumptions used in our fair value model (in thousands):
| | | | | | | | | | | | | Year Ended December 31, | | Investments in securities under the fair value option | 2025 | | 2024 | | Balance, beginning of period | $ | — | | | $ | — | | | Purchases | 78,358 | | | — | | | Principal payments | (27,313) | | | — | | | Change in fair value | 22,268 | | | — | | Balance, end of period (1) | $ | 73,313 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The balance excludes $4.6 million of other loans accounted for under the fair value option. The following tables summarize the activity related to the fair value of the investments in loans and securities for the year ended December 31, 2025 and 2024 (in thousands): | | | | | | | Balance as of December 31, 2023 | $ | 624,073 | | | Transfer from level 2 | 10,469 | | | Additions | 607,398 | | | Cash received | (180,567) | | | Gain on sale of investments in loans and securities | 7,920 | | | Change in accrued interest on investments | 12,921 | | | Change in fair value | (13,858) | | | Credit-related impairment loss | (410,060) | | | Balance as of December 31, 2024 | $ | 658,296 | | | Transfer from level 2 | 42,577 | | | Additions | 550,154 | | | Cash received | (294,467) | | | Gain on sale of investments in loans and securities | 12,417 | | | Loss on sale of investments in loans and securities | (26,836) | | | Change in accrued interest on investments | 40,083 | | | Change in fair value | (9,746) | | | Credit-related impairment loss | (94,924) | | | Balance as of December 31, 2025 | $ | 877,554 | |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the securities as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | Unobservable Input | | Minimum | | Maximum | | Weighted Average | | Minimum | | Maximum | | Weighted Average | | Discount rate | | 5.0 | % | | 15.0 | % | | 15.0 | % | | 5.0 | % | | 15.0 | % | | 15.0 | % | | Loss rate | | 4.9 | % | | 33.1 | % | | 17.0 | % | | 5.8 | % | | 34.1 | % | | 19.5 | % | | Prepayment rate | | 0.0 | % | | 40.0 | % | | 14.2 | % | | — | % | | 40.0 | % | | 9.4 | % | | | | | | | | | | | | | |
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| Schedule of Fair Value Measurements, Nonrecurring |
The below tables contain information about assets that are not measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | Fair Value | | Carrying
Value | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | | Cash and cash equivalents, and restricted cash and cash equivalents | $ | 288,349 | | | $ | 288,349 | | | $ | — | | | $ | — | | | $ | 288,349 | | | Fees receivables | 153,250 | | | — | | | 69,864 | | | 83,386 | | | 153,250 | | | Liabilities: | | | | | | | | | | | Secured borrowings | $ | 193,892 | | | $ | — | | | $ | — | | | $ | 191,983 | | | $ | 191,983 | | | Exchangeable notes | 148,782 | | | — | | | 292,445 | | | — | | | 292,445 | | | Long-term debt | 481,598 | | | — | | | 430,616 | | | — | | | 430,616 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | | Fair Value | | Carrying
Value | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | | Cash and cash equivalents, and restricted cash and cash equivalents | $ | 226,518 | | | $ | 226,518 | | | $ | — | | | $ | — | | | $ | 226,518 | | | Fees receivables (1) | 127,114 | | | — | | | 63,143 | | | 63,971 | | | 127,114 | | | Investments in loans and securities (Loans) | 4,893 | | | — | | | — | | | 4,893 | | | 4,893 | | | Liabilities: | | | | | | | | | | | Secured borrowings | $ | 176,089 | | | $ | — | | | $ | — | | | $ | 177,554 | | | $ | 177,554 | | | Exchangeable notes | 146,342 | | | — | | | 163,360 | | | — | | | 163,360 | | | Long-term debt | 321,317 | | | — | | | — | | | 366,396 | | | 366,396 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Accrued interest receivable of $14.3 million, previously reported within “Fee receivables” as of December 31, 2024, has been reclassified to “Investment in loans and securities” to conform to the current period’s presentation.
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