| Leased Merchandise, Net |
Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands):
| | | | | | | | | | | | | | | | | | | As of June 30, | | As of
December 31, | | 2026 | | 2025 | | 2025 | | Leased merchandise | $ | 205,440 | | | $ | 260,373 | | | $ | 252,064 | | | Processing fees | (1,727) | | | (2,229) | | | (2,240) | | | Merchant partner (discounts) and premiums, net | (189) | | | (34) | | | (175) | | | Accumulated depreciation | (62,022) | | | (87,754) | | | (70,650) | | | Leased merchandise, before allowance for lease losses | 141,502 | | | 170,356 | | | 178,999 | | | Less allowance for lease losses | (56,933) | | | (69,667) | | | (64,716) | | | Leased merchandise, net | $ | 84,569 | | | $ | 100,689 | | | $ | 114,283 | |
The following table details the changes in the allowance for lease losses (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | Balance at beginning of period | $ | 61,069 | | | $ | 68,785 | | | $ | 64,716 | | | $ | 80,257 | | | Provision for lease losses | 24,439 | | | 32,543 | | | 54,183 | | | 60,105 | | | Charge-offs | (31,127) | | | (33,633) | | | (66,858) | | | (75,007) | | | Recoveries | 2,552 | | | 1,972 | | | 4,892 | | | 4,312 | | | Balance at end of period | $ | 56,933 | | | $ | 69,667 | | | $ | 56,933 | | | $ | 69,667 | |
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