v3.26.1
Finance Receivables, net
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Finance Receivables, net Finance Receivables, net
Finance receivables, net consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):
June 30, 2026December 31, 2025
Amortized cost$— $— 
Negative allowance for expected recoveries4,717,204 4,688,024 
Balance as of end of period$4,717,204 $4,688,024 
Changes in Finance receivables, net for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Balance as of beginning of period$4,344,825 $292,269 $4,637,094 $3,986,864 $321,470 $4,308,334 
Initial negative allowance for expected recoveries on current period purchases (1)
267,517 29,054 296,571 319,562 26,943 346,505 
Recoveries collected and applied to Finance receivables, net (2)
(262,920)(30,231)(293,151)(251,657)(37,940)(289,597)
Changes in expected recoveries (3)
77,772 19,152 96,924 25,342 7,950 33,292 
Foreign currency translation adjustment(20,231)(3)(20,234)154,158 9,884 164,042 
Balance as of end of period$4,406,963 $310,241 $4,717,204 $4,234,269 $328,307 $4,562,576 
Six Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Balance as of beginning of period$4,383,201 $304,823 $4,688,024 $3,809,723 $331,019 $4,140,742 
Initial negative allowance for expected recoveries on current period purchases (1)
470,467 46,954 517,421 593,455 44,752 638,207 
Recoveries collected and applied to Finance receivables, net (2)
(518,826)(61,916)(580,742)(483,140)(71,575)(554,715)
Changes in expected recoveries (3)
118,126 22,684 140,810 51,667 9,547 61,214 
Foreign currency translation adjustment(46,005)(2,304)(48,309)262,564 14,564 277,128 
Balance as of end of period$4,406,963 $310,241 $4,717,204 $4,234,269 $328,307 $4,562,576 
(1) Initial negative allowance for expected recoveries on current period purchases
The initial negative allowance for expected recoveries on purchases made during the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):
Three Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Allowance for credit losses at acquisition$(1,453,783)$(100,406)$(1,554,189)$(1,635,702)$(87,742)$(1,723,444)
Writeoffs, net1,453,783 100,406 1,554,189 1,635,702 87,742 1,723,444 
Expected recoveries267,517 29,054 296,571 319,562 26,943 346,505 
Initial negative allowance for expected recoveries on current period purchases$267,517 $29,054 $296,571 $319,562 $26,943 $346,505 
Six Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Allowance for credit losses at acquisition$(2,644,455)$(162,128)$(2,806,583)$(3,053,673)$(161,334)$(3,215,007)
Writeoffs, net2,644,455 162,128 2,806,583 3,053,673 161,334 3,215,007 
Expected recoveries470,467 46,954 517,421 593,455 44,752 638,207 
Initial negative allowance for expected recoveries on current period purchases$470,467 $46,954 $517,421 $593,455 $44,752 $638,207 
The purchase price for purchases made during the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):
Three Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Face value$1,983,813 $145,792 $2,129,605 $2,269,417 $129,842 $2,399,259 
Noncredit discount(262,513)(16,332)(278,845)(314,153)(15,157)(329,310)
Allowance for credit losses at acquisition(1,453,783)(100,406)(1,554,189)(1,635,702)(87,742)(1,723,444)
Purchase price$267,517 $29,054 $296,571 $319,562 $26,943 $346,505 
Six Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Face value$3,571,664 $235,878 $3,807,542 $4,235,481 $231,316 $4,466,797 
Noncredit discount(456,742)(26,796)(483,538)(588,353)(25,230)(613,583)
Allowance for credit losses at acquisition(2,644,455)(162,128)(2,806,583)(3,053,673)(161,334)(3,215,007)
Purchase price$470,467 $46,954 $517,421 $593,455 $44,752 $638,207 
(2) Recoveries collected and applied to Finance receivables, net
Recoveries collected and applied to Finance receivables, net for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Recoveries collected (a)
$519,393 $41,557 $560,950 $491,074 $49,457 $540,531 
Amounts reclassified to portfolio income (b)
(256,473)(11,326)(267,799)(239,417)(11,517)(250,934)
Recoveries collected and applied to Finance receivables, net$262,920 $30,231 $293,151 $251,657 $37,940 $289,597 
Six Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Recoveries collected (a)
$1,033,547 $84,573 $1,118,120 $952,043 $94,564 $1,046,607 
Amounts reclassified to portfolio income (b)
514,721 22,657 537,378 468,903 22,989 491,892 
Recoveries collected and applied to Finance receivables, net$518,826 $61,916 $580,742 $483,140 $71,575 $554,715 
(a)Includes cash collections, buybacks and other cash-based adjustments.
(b)Reclassifications from Finance receivables, net to Portfolio income based on the effective interest rate of the underlying account pools.
(3) Changes in expected recoveries
Changes in expected recoveries for the three months ended June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Recoveries collected in excess of forecast$19,138 $3,604 $22,742 $32,316 $7,986 $40,302 
Changes in expected future recoveries 58,634 15,548 74,182 (6,974)(36)(7,010)
Changes in expected recoveries$77,772 $19,152 $96,924 $25,342 $7,950 $33,292 
Changes in expected recoveries for the three months ended June 30, 2026 were $96.9 million, which included a $74.2 million positive adjustment to changes in expected future recoveries and $22.7 million in recoveries collected in excess of forecast (cash collections overperformance). The Company updated the forecasts for a majority of the pools in its European markets as part of the June 30, 2026 quarterly assessment and calculation of expected future recoveries, which resulted in a positive adjustment to changes in expected future recoveries of approximately $105 million. These forecasts reflected sustained cash collections overperformance across multiple markets; analysis of historical collection trends and expected collection patterns; the increased depth of our data sets; and enhancements made to our analytical processes and forecasting capabilities. This increase in changes in expected future recoveries was partially offset by decreases in the collections forecasts on multiple pools within the Company's other markets and the 2022-2025 U.S. Core pools. Recoveries collected in excess of forecast were due primarily to cash collections overperformance in Europe.
Changes in expected recoveries for the three months ended June 30, 2025 were $33.3 million, which included $40.3 million in recoveries collected in excess of forecast (cash collections overperformance) and a $7.0 million negative adjustment in changes in expected future recoveries. Recoveries collected in excess of forecast were largely due to cash collections overperformance in Europe, U.S., and Brazil. Changes in expected future recoveries were primarily due to a decrease to the collections forecast on the 2023 U.S. Core pool, which was partially offset by the impact of increases to the Company's collections forecasts in Europe.
Changes in expected recoveries for the six months ended June 30, 2026 and 2025 were as follows (in thousands):
Six Months Ended June 30,
20262025
CoreInsolvencyTotalCoreInsolvencyTotal
Recoveries collected in excess of forecast$38,330 $7,110 $45,440 $46,606 $10,196 $56,802 
Changes in expected future recoveries79,796 15,574 95,370 5,061 (649)4,412 
Changes in expected recoveries$118,126 $22,684 $140,810 $51,667 $9,547 $61,214 
Changes in expected recoveries for the six months ended June 30, 2026 were $140.8 million, which included a $95.4 million positive adjustment to changes in expected future recoveries and $45.4 million in recoveries received in excess of forecast. As described above, the Company updated the forecasts for a majority of the pools within its European markets as of June 30, 2026, resulting in a positive adjustment to changes in expected future recoveries of approximately $105 million. This increase was partially offset by decreases in the collections forecasts on multiple pools within the Company's other markets. Recoveries collected in excess of forecast were due mainly to collections performance in Europe.
Changes in expected recoveries for the six months ended June 30, 2025 were $61.2 million, which included $56.8 million in recoveries collected in excess of forecast and $4.4 million in changes in expected future recoveries. Recoveries collected in excess of forecast were largely due to cash collections overperformance in Europe and Brazil. Changes in expected future recoveries were primarily due to the impact of increases to the Company's collections forecasts on certain European pools, which was partially offset by decreases to the Company's collections forecasts on the 2023 U.S. Core pool.