v3.26.1
Finance Receivables, Net
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Finance Receivables, Net Finance Receivables, Net
Finance receivables, net, which include retail installment sales agreements and bank-originated loans, consist of the following (in thousands):

As of June 30,As of
December 31,
202620252025
Finance receivables, gross$264,486 $311,424 $283,514 
Merchant partner discounts and premiums, net(25,276)(27,946)(22,728)
Unearned origination fees(3,202)(6,086)(4,186)
Finance receivables, amortized cost236,008 277,392 256,600 
Less allowance for loan losses(105,006)(122,874)(106,326)
Finance receivables, net$131,002 $154,518 $150,274 

The following table details the changes in the allowance for loan losses (in thousands):

Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Balance at beginning of period$104,571 $118,342 $106,326 $117,005 
Provision for loan losses (1)
32,460 41,761 67,700 78,121 
Charge-offs(36,158)(40,078)(76,964)(78,497)
Recoveries4,133 2,849 7,944 6,245 
Balance at end of period$105,006 $122,874 $105,006 $122,874 

(1)During the third quarter of 2025, the Company’s retail POS payment solutions business (American First Finance or “AFF”) began assisting certain customers in applying for a direct-to-consumer unsecured installment loan that is underwritten and fully retained by AFF’s bank partner (“OBS Loan”). OBS Loans are not reflected on the Company’s balance sheet as a finance receivable. The provision for loan losses presented on the consolidated statement of income for the three and six months ended June 30, 2026 includes an additional $7.5 million and $15.1 million, respectively, of provision expense related to OBS Loans in which AFF is responsible for reimbursing the bank partner for certain charge-offs, which the Company is required to recognize a liability for at inception. See the “OBS Loans” section in Note 9.
The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of June 30, 2026 and 2025, by origination year (in thousands):

Origination Year
202620252024Total
As of June 30, 2026
Delinquency:
1 to 30 days past due$15,487 $9,353 $719 $25,559 
31 to 60 days past due8,665 6,233 533 15,431 
61 to 89 days past due (1)
5,984 5,554 505 12,043 
Total past due finance receivables30,136 21,140 1,757 53,033 
Current finance receivables115,974 62,260 4,741 182,975 
Finance receivables, amortized cost$146,110 $83,400 $6,498 $236,008 
Origination Year
202520242023Total
As of June 30, 2025
Delinquency:
1 to 30 days past due$17,683 $9,968 $489 $28,140 
31 to 60 days past due9,946 6,998 348 17,292 
61 to 89 days past due (1)
6,189 5,853 321 12,363 
Total past due finance receivables33,818 22,819 1,158 57,795 
Current finance receivables143,543 72,667 3,387 219,597 
Finance receivables, amortized cost$177,361 $95,486 $4,545 $277,392 

(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due.

The following table details the gross charge-offs of finance receivables for the six months ended June 30, 2026 and 2025, by origination year (in thousands):

Origination Year
2026202520242023Total
Finance receivables gross charge-offs:
Gross charge-offs during the six months ended June 30, 2026
$9,820 $60,103 $7,041 $— $76,964 
Gross charge-offs during the six months ended June 30, 2025
— 9,902 63,060 5,535 78,497