v3.26.1
Accounts Receivables & Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2026
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivables & Allowance for Credit Losses Accounts Receivables & Allowance for Credit Losses
The Company maintains an allowance for credit losses that, in management’s judgment, reflects expected credit losses in the portfolio. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management.
Changes in the allowance for credit losses related to trade receivables for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Beginning balance$5,398 $5,500 $3,828 $6,372 
Provision for credit losses1,682 (76)4,288 805 
Net write-offs
Write-offs(1,211)(1,077)(2,258)(3,005)
Recoveries259 21 270 196 
Net write-offs(952)(1,056)(1,988)(2,809)
Ending balance$6,128 $4,368 $6,128 $4,368 
Changes in the allowance for credit losses related to finance receivables for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Beginning balance$22,256 $4,550 $29,026 $4,191 
Provision for credit losses1,936 1,584 4,584 2,306 
Net write-offs
Write-offs(15,765)(1,250)(25,247)(1,768)
Recoveries86 213 150 368 
Net write-offs(15,679)(1,037)(25,097)(1,400)
Ending balance$8,513 $5,097 $8,513 $5,097 
On September 10, 2025, Tricolor Holdings, LLC, and certain of its affiliates (collectively, "Tricolor") filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy court for the Northern District of Texas. During the quarter ending September 30, 2025, the Company recorded a provision for credit losses for the full amount of the floorplan finance receivables due from Tricolor. Tricolor accounted for $11.1 million and $18.7 million of the Company's finance receivable write-offs for the three and six months ended June 30, 2026, respectively.