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CREDIT OBLIGATIONS
 6 Months Ended
Jun. 30, 2026
Credit Loss [Abstract]  
CREDIT OBLIGATIONS CREDIT OBLIGATIONS
The Company has credit obligations related to both on- and off-balance sheet receivables from members. Credit obligations related to MyPay loans held for investment on the Company’s balance sheets are recorded as an allowance for expected credit losses. Future expected cash flows, including credit obligations related to MyPay and Instant Loan receivables retained by the bank partners, SpotMe, and other instances where a member’s account is overdrawn are recorded as a product obligation on the condensed consolidated balance sheets.
MyPay receivables on the Company’s balance sheet have the risks and characteristics similar to the off-balance sheet balances retained by the bank partners and similar risk characteristics were applied consistently for the products during underwriting. Accordingly, the credit exposure is expected to be similar for these obligations.
Allowance for Expected Credit Losses
The allowance for expected credit losses on loans held for investment reflects the Company’s estimate of uncollectible balances resulting from credit losses and is based on the determination of the amount of lifetime expected credit losses inherent in the loans held for investment as of the reporting date. The Company measures the allowance for expected credit losses based on a discounted cash flow method, where future cash flows estimated using the roll rate method are discounted. Historical data is categorized into pools with similar risk characteristics, and roll rates are calculated based on the vintage loans held for investment origination, defined as by month. This results in an expected loss rate for each vintage. The Company considers whether the current conditions and reasonable and supportable forecasts about future conditions indicate that expected loss rates derived based on historical experience merit adjustment. In assessing such adjustments, the Company evaluates factors such as unemployment rates, short-term economic trends, and cash collections subsequent to the balance sheet date. The
expected loss rate is then applied to the outstanding principal balance of each vintage at the end of the period, resulting in the recognition of the expected loss at period-end. The allowance for expected credit loss is recorded against loans held for investment, along with a corresponding charge recorded within transaction and risk losses in the consolidated statement of operations. In general, loans held for investment are charged-off after 365 days of non-payment. At each reporting period, the Company adjusts the allowance for changes in the estimate of lifetime expected credit losses and reverses the allowance upon either payment of the loans held for investment or upon charge-off.
Below is a summary of the changes in allowance for expected credit losses on MyPay loans held for investment:
Six Months Ended
June 30,
20262025
Balance, beginning of the period$76,640 $30,649 
Provision for expected credit losses28,081 $42,197 
Amounts written off
(36,965)$(942)
Recoveries collected2,436 $— 
Balance, end of the period$70,192 $71,904 
The Company began writing off loans held for investment during the second quarter in 2025, when such loans began aging beyond 365 days. Write-offs increased on a year over year basis as the population of loans meeting this criterion expanded.
Product Obligation
The following table presents a reconciliation of the Company’s product obligation:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Balance, beginning of the period$121,141 $124,672 $147,382 $114,377 
Change in fair value of product obligation(1)
(25,735)14,828 (52,282)43,579 
Settlements38,918 (521)39,224 (18,977)
Balance, end of the period
$134,324 $138,979 $134,324 $138,979 
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(1)The change in fair value of the product obligation was recorded on the condensed consolidated statements of operations as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenue:
Off-balance sheet MyPay receivables(71,942)(48,236)$(136,775)$(87,108)
Instant Loans(20,852)(1,563)(34,609)(1,563)
Total recorded as revenue$(92,794)$(49,799)(171,384)(88,671)
Transaction and risk losses:
Off-balance sheet MyPay receivables26,748 34,051 51,751 69,451 
Instant Loans16,067 6,128 23,282 6,128 
SpotMe and other negative balances24,244 24,448 44,069 56,671 
Total recorded as transaction and risk losses$67,059 $64,627 119,102 132,250 
Total change in fair value of the product obligation
$(25,735)$14,828 $(52,282)$43,579 
The Company’s maximum exposure to losses under its product obligation was $812.6 million and $722.3 million as of June 30, 2026 and December 31, 2025, which represent the total possible undiscounted amounts the Company could be required to pay, assuming no recoveries.