FAIR VALUE MEASUREMENT (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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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 tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair values (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | Investments in loans and securities (Notes) | $ | — | | | $ | 153,400 | | | $ | 351,107 | | | $ | 504,507 | | | Investments in loans and securities (Certificates) | — | | | — | | | 523,771 | | | 523,771 | | | Investments in loans and securities (Loans) | — | | | — | | | 11,840 | | | 11,840 | | | Liabilities: | | | | | | | | | Warrant liability | $ | 775 | | | $ | — | | | $ | — | | | $ | 775 | | Other liabilities (1) | — | | | — | | | 21,115 | | | 21,115 | |
| | | | | | | | | | | | | | | | | | | | | | | | | 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 | |
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| Schedule of Warrant Liability Activity |
The following tables summarize the warrant liability activity for the three and six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | Three Months Ended June 30, | | 2026 | | 2025 | | Balance, beginning of period | $ | 561 | | | $ | 1,992 | | | Change in fair value | 214 | | | 479 | | | Balance, end of period | $ | 775 | | | $ | 2,471 | |
| | | | | | | | | | | | | Six Months Ended June 30, | | 2026 | | 2025 | Balance, beginning of period | $ | 4,723 | | | $ | 893 | | | Change in fair value | (3,948) | | | 1,578 | | Balance, end of period | $ | 775 | | | $ | 2,471 | |
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| Schedule of Level 3 Roll Forward |
The following table presents activities of investments in loans and securities for which we elected the fair value option (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | Investments in loans and securities under the fair value option | 2026 | | 2025 | | 2026 | | 2025 | | Balance, beginning of period | $ | 80,105 | | | $ | — | | | $ | 77,891 | | | $ | — | | | Purchases | 7,766 | | | 21,026 | | | 16,047 | | | 21,026 | | Principal and interest payments | (33,235) | | | — | | | (55,405) | | | — | | Gain on sale of investments in loans and securities | 3,191 | | | — | | | 13,560 | | | — | | Accrued interest | 2,245 | | | — | | | 4,844 | | | — | | Non-cash transactions | 1,556 | | | — | | | (94) | | | — | | Change in fair value | 7,412 | | | 11,862 | | | 12,197 | | | 11,862 | | | Balance, end of period | $ | 69,040 | | | $ | 32,888 | | | $ | 69,040 | | | $ | 32,888 | |
The following tables summarize the activity related to the fair value of the investments in loans and securities available for sale (Level 3 only) for the three and six months ended June 30, 2026 and 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Balance, beginning of period | $ | 861,853 | | | $ | 641,617 | | | $ | 877,554 | | | $ | 663,189 | | | Transfer from Level 2 | (37,284) | | — | | | (37,284) | | | — | | | Additions (1) | 210,081 | | | 182,259 | | | 368,204 | | | 248,978 | | | Cash received | (148,922) | | | (60,706) | | | (300,906) | | | (108,016) | | | Gain on sale of Investments in loans and securities | 48,764 | | | 2,699 | | | 114,678 | | | 8,593 | | | Loss on sale of Investments in loans and securities | (60,500) | | | — | | | (146,203) | | | — | | | Change in accrued interest on investments | 20,563 | | | 5,659 | | | 38,210 | | | 8,937 | | | Non-cash transactions | 1,556 | | | — | | | (94) | | | — | | | Change in fair value (OCI) | 20,831 | | | (5,849) | | | 43,379 | | | (21,795) | | | Credit-related impairment loss, net of recoveries | (30,224) | | | (28,944) | | | (70,820) | | | (63,151) | | | Balance, end of period | $ | 886,718 | | $ | 736,735 | | $ | 886,718 | | $ | 736,735 |
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| Schedule of Significant Unobservable Inputs |
The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the securities as of June 30, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Unobservable Input | | Minimum | | Maximum | | Weighted Average | | Minimum | | Maximum | | Weighted Average | | Discount rate | | 8.0 | % | | 17.2 | % | | 14.6 | % | | 5.0 | % | | 15.0 | % | | 15.0 | % | | Loss rate | | 5.5 | % | | 35.2 | % | | 16.2 | % | | 4.9 | % | | 33.1 | % | | 17.0 | % | | Prepayment rate | | 0.0 | % | | 44.0 | % | | 13.2 | % | | 0.0 | % | | 40.0 | % | | 14.2 | % | | | | | | | | | | | | | |
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| Schedule of Financial Assets and Liabilities Not Recorded at Fair Value |
The below tables contain information about assets that are not measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | Fair Value | | Carrying
Value | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | Cash and cash equivalents, and restricted cash and cash equivalents | $ | 304,423 | | | $ | 304,423 | | | $ | — | | | $ | — | | | $ | 304,423 | | Fee receivables | 190,470 | | | — | | | 82,763 | | | 107,707 | | | 190,470 | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | Secured borrowing | $ | 252,995 | | | $ | — | | | $ | — | | | $ | 254,259 | | $ | 254,259 | | Exchangeable notes | 150,070 | | | — | | | 253,451 | | | — | | | 253,451 | | | Long-term debt | 471,866 | | | — | | | 413,647 | | | — | | | 413,647 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | Fee receivables | 153,250 | | | — | | | 69,864 | | | 83,386 | | | 153,250 | | | Liabilities: | | | | | | | | | | | Secured borrowing | $ | 193,892 | | | $ | — | | | $ | — | | | $ | 191,983 | | | $ | 191,983 | | | Exchangeable notes | 148,782 | | | — | | | 292,445 | | | — | | | 292,445 | | | Long-term debt | 481,598 | | | — | | | 430,616 | | | — | | | 430,616 | |
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