v3.26.1
Finance Receivables at Fair Value
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Finance Receivables at Fair Value Finance Receivables at Fair Value
The components of installment finance receivables at fair value as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

20262025
Unpaid principal balance of finance receivables - accrual$405,076 $454,542 
Unpaid principal balance of finance receivables - non-accrual34,989 38,576 
Unpaid principal balance of finance receivables$440,065 $493,118 
Finance receivables at fair value - accrual$470,049 $524,577 
Finance receivables at fair value - non-accrual3,244 3,590 
Finance receivables at fair value, excluding accrued interest receivable473,293 528,167 
Accrued interest receivable23,013 18,069 
Finance receivables at fair value$496,306 $546,236 
Difference between unpaid principal balance and fair value$33,228 $35,049 

The Company’s policy is to discontinue and reverse the accrual of interest income on installment finance receivables at the earlier of 60 days past due on a recency basis or 90 days past due on a contractual basis. As of June 30, 2026 and December 31, 2025, the aggregate unpaid principal balance of installment finance receivables 90 days or more past due on a contractual basis was $17.3 million and $16.4 million, respectively. As of June 30, 2026 and December 31, 2025, the fair value of installment finance receivables 90 days or more past due on a contractual basis was $1.6 million and $1.5 million, respectively.
Changes in the fair value of installment finance receivables at fair value 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
Balance at the beginning of the period$502,558 $454,683 $546,236 $473,696 
Acquired329,367 326,992 555,455 599,173 
Repayments(276,948)(250,312)(486,747)(492,642)
Accrued interest receivable328 2,322 4,944 2,916 
Charge-offs, net(1)
(57,276)(45,509)(121,761)(94,021)
Net change in fair value(1)
(1,723)3,312 (1,821)2,366 
Balance at the end of the period$496,306 $491,488 $496,306 $491,488 
(1) Included in change in fair value of finance receivables in the consolidated statements of operations.

The estimated amount of earnings included in losses attributable to changes in instrument-specific credit risk was $12.9 million and $4.8 million for the three and six months ended June 30, 2026, respectively. The estimated amount of losses included in losses attributable to changes in instrument-specific credit risk was $12.1 million and $5.7 million for the three and six months ended June 30, 2025, respectively. The credit risk component was driven by the expected default rate assumption applied in the discounted cash flow model. The expected default rate assumption was developed based on historical data of the installment loan portfolio and also included adjustments to reflect management’s judgment of current economic trends and future credit performance.