Credit Card |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Credit Card | Credit Card Credit Card Derivative Prosper recognizes unrealized and settled gains and losses on the Credit Card Derivative within Change in Fair Value of Financial Instruments on the accompanying consolidated statements of operations. These settled gains and losses primarily consist of interest income and debt sales on charged off balances, less Coastal program fees, credit losses and fraud losses. For the three months ended June 30, 2026 and 2025, the Company recognized $3.3 million of unrealized gains and $0.5 million of unrealized losses, respectively, from estimated fair value changes on the Credit Card Derivative. For the six months ended June 30, 2026 and 2025, the Company recognized $7.7 million of unrealized gains and $2.3 million of unrealized losses, respectively, from estimated fair value changes on the Credit Card Derivative. Changes from settled transactions underlying the Credit Card Derivative were gains of $1.6 million and losses of $3.0 million for the three months ended June 30, 2026 and 2025, respectively, and gains of $2.8 million and losses of $7.8 million for the six months ended June 30, 2026 and 2025, respectively. Receivable from Credit Card Partner Fair value gains and losses on the Receivable from Credit Card Partner, which effectively consists of the underlying Credit Card receivables securitized through PMCC 2024-1 (as discussed at Note 7, Securitizations), are also recognized within Change in Fair Value of Financial Instruments. These gains and losses include changes related to estimated future cash flows, as well as actual charge-offs and debt sale recoveries. For the three months ended June 30, 2026, and 2025, the Company recognized fair value losses of $3.8 million and $4.9 million, respectively, related to the Receivable from Credit Card Partner, which primarily consisted of net charge-offs. For the six months ended June 30, 2026, and 2025, the Company recognized fair value losses of $7.9 million and $7.0 million, respectively, related to the Receivable from Credit Card Partner, which primarily consisted of net charge-offs. As of June 30, 2026 and December 31, 2025, the outstanding principal balance of Credit Card receivables held by PMCC 2024-1 was $89.8 million and $90.1 million, respectively. Program Fees The Company records revenue from various fees generated from the Credit Card program and PMCC 2024-1, including interchange fees, annual fees and late fees, net of a portion of the interchange fees that must be remitted to Coastal. These fees are included in Transaction Fees, Net on the accompanying consolidated statements of operations. For the three months ended June 30, 2026 and 2025, these fees totaled $7.4 million and $5.7 million, respectively, and for the six months ended June 30, 2026 and 2025, these fees totaled $14.2 million and $11.5 million, respectively. Servicing Obligation and Fees Under the program agreement, Prosper is responsible for servicing the entire underlying Credit Card portfolio. Coastal pays the Company a 1% per annum servicing fee on the daily outstanding principal balance of receivables designated as Coastal Allocations, which is approximately 5% of the portfolio. To the extent these servicing fees do not exceed the market servicing rate a market participant would require to service the entire Credit Card portfolio, the Company records a servicing obligation liability and measures it at fair value through the servicing period. The net balance of this servicing obligation liability is included in Other Liabilities on the accompanying condensed consolidated balance sheets (see Note 10, Other Liabilities). Changes in the fair value of the servicing obligation liability are recorded in Servicing Fees, Net on the accompanying condensed consolidated statements of operations, and totaled a loss of $0.7 million and a gain of $0.5 million for the three months ended June 30, 2026 and 2025, respectively, and a loss of $0.7 million and a gain of $1.0 million for the six months ended June 30, 2026 and 2025, respectively. No servicing asset or obligation is recognized for the Credit Card receivables securitized within PMCC 2024-1, which is a consolidated entity.
|