SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and 2025, have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, the Company made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The Condensed Consolidated Financial Statements include the accounts of the Company and the combined wholly-owned subsidiaries over which the Company controls significant

operating, financial, and investing decisions of the entity as well as those entities deemed to be variable interest entities (“VIEs”) in which the Company is determined to have a controlling financial interest.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results for the entire fiscal year ending December 31, 2026, or for any other period. Further, the balance sheet as of December 31, 2025, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to the Company's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Change in Financial Statement Presentation

Marketable Securities Income, net

As of March 31, 2026, the Company voluntarily elected to change its income statement presentation for net gains and losses on the change in fair value of marketable securities, and the interest income earned on marketable securities, by reclassifying them into a separate line item, “Marketable securities income, net”. Previously, these amounts were included within “Gain on sale of loans, net” and “Interest income”, respectively.

This change in classification has been applied retrospectively to all periods presented. It had no impact on the Condensed Consolidated Balance Sheets and no effect on previously reported total assets, total liabilities, equity, net income, or earnings per share for any period presented.

The following tables present the impact to the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and Condensed Consolidated Statements of Cash Flows as a result of this change for the six months ended June 30, 2025.


	Three Months Ended June 30, 2025
Condensed Consolidated Statements of Operations	As Reported		Adjustment		Recast
Interest income	$	16,032	$	(4,066)	$	11,966
Gain on sale of loans, net	36,312		—		36,312
Marketable securities income, net	—		4,066		4,066


	Six Months Ended June 30, 2025
Condensed Consolidated Statements of Operations	As Reported		Adjustment		Recast
Interest income	$	32,638	$	(9,448)	$	23,190
Gain on sale of loans, net	68,335		(2,231)		66,104
Marketable securities income, net	—		11,679		11,679


	Six Months Ended June 30, 2025
Condensed Consolidated Statements of Cash Flows	As Reported		Adjustment		Recast
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of loans, net	$	(68,335)	$	2,231	$	(66,104)
Change in fair value of marketable securities	—		(2,231)		(2,231)

Customer Deposit Liability

As of March 31, 2026, the Company voluntarily elected to change its presentation of cash flow activity in connection with deposits held for customer marketplace transactions. Such activity was previously reflected within operating activities in the “Accounts payable and other liabilities” line item, and are now presented in financing activities in the “Net changes in customer deposit liabilities” line item.

The change in presentation had no impact on the Condensed Consolidated Financial Statements, other than the reclassification of amounts within the Condensed Consolidated Statements of Cash Flows captions as described herein. The movement between customer deposit liabilities and YLDS (debt) is presented as cash payments and receipts.

The following table presents the impact to the Condensed Consolidated Statements of Cash Flows as a result of this change for the six months ended June 30, 2025.


	Six months ended June 30, 2025
Condensed Consolidated Statements of Cash Flows	As Reported		Adjustment		Recast
Adjustments to reconcile net income to net cash provided by operating activities:
Accounts payable and other liabilities	$	18,694	$	(3,201)	$	15,493
Financing activities:
Net changes in customer deposit liabilities	—		3,201		3,201

Change in Accounting Principle

Accounting for payment stablecoins

As of December 31, 2025, the Company voluntarily elected to change its method of accounting for payment stablecoins to classify them as cash equivalents and applied the change retrospectively. See “Note 2—Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a description of the change in accounting principle.

The following table presents the impact to the Condensed Consolidated Statements of Cash Flows as a result of this change to the six months ended June 30, 2025; there was no impact to the Condensed Consolidated Statements of Cash Flows beyond the line items shown below.


	Six Months Ended June 30, 2025
	As Reported		Adjustment		Recast
Operating activities:
Loss on digital assets, net	$	1,819	$	(11)	$	1,808
Investing activities:
Purchases of digital assets	$	(5,759)	$	3,533	$	(2,226)
Proceeds from sales of digital assets	6,386		(3,284)		3,102

Change in Statement of Cash Flow Presentation Related to Retained Beneficial Interests in Loan Securitizations

As of December 31, 2025, the Company corrected the presentation of certain retained beneficial interests in loan securitization transactions within the Condensed Consolidated Statements of Cash Flows and applied the correction retrospectively. See “Note 2—Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a description of the correction.

The following table presents the impact to the Condensed Consolidated Statements of Cash Flows as a result of the correction for the six months ended June 30, 2025; there was no impact to the Condensed Consolidated Statements of Cash Flows beyond the line items shown below.


	Six Months Ended June 30, 2025
	As Reported		Adjustment		As Corrected
Operating activities:
Proceeds from loan sales, net of repurchases	$	2,708,378	$	(32,365)	$	2,676,013
Purchases of marketable securities	(68,593)		68,593		—

Principal payments on marketable securities	19,137		(19,137)		—
Net cash provided by operating activities(A)	62,210		17,091		79,301
Investing activities:
Purchases of marketable securities	—		(36,228)		(36,228)

Principal payments on marketable securities	—		19,137		19,137
Net cash used in investing activities(B)	$	(12,838)	$	(17,091)	$	(29,929)

Non-cash investing and financing activities:
Marketable securities retained in securitization transactions	$	—	$	(32,365)	$	(32,365)

(A) Net cash provided by operating activities “As Corrected” represents the impact from this adjustment only and does not tie to the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 as it does not include the impact from the customer deposit liability and payment stablecoin presentation changes disclosed in “—Change in Financial Statement Presentation” and “—Change in Accounting Principle”, respectively, above.

(B) Net cash used in investing activities “As Corrected” represents the impact from this adjustment only and does not tie to the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 as it does not include the impact from the payment stablecoin presentation change disclosed in “—Change in Accounting Principle” above.

Segments

The Company operates as a single operating and reportable segment. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

The CODM evaluates performance and allocates resources using consolidated net income as reported in the Condensed Consolidated Statements of Operations. Significant expense categories and revenue streams reviewed by the CODM are presented on the face of the Condensed Consolidated Statements of Operations. The CODM does not review assets, liabilities, or capital expenditures at a more granular level; accordingly, no such disclosures are presented. Total consolidated assets are presented on the Condensed Consolidated Balance Sheets.

Substantially all of the Company’s revenues and long-lived assets are located in the United States. Our diversified ecosystem of whole loan buyers and access to additional liquidity through the securitization market mitigates concentration risk related to individual purchasers of loans for which we earn revenues. No customer accounted for more than 10% of the Company’s total net revenue for each of the respective periods or for the same periods in the prior year.

Derivatives

Treasury Note Futures Contracts

The Company recorded aggregate net realized and unrealized gains (losses) for derivative assets and liabilities within “Gain on sale of loans, net” in the Condensed Consolidated Statements of Operations of $0.7 million and $4.7 million for the three and six months ended June 30, 2026, respectively, and $(1.5) million and $(6.2) million for the three and six months ended June 30, 2025, respectively. Any results from the settlement of the Company derivative financial instruments are included as “Realized gains (losses) on futures” as an investing cash flow within the Condensed Consolidated Statements of Cash Flows.

The Company records derivative assets and liabilities within “Other current liabilities” and “Other current assets” in the Condensed Consolidated Balance Sheets. As of June 30, 2026 and December 31, 2025 we recorded the following balances:


	June 30, 2026				December 31, 2025
	Notional		Balance		Notional		Balance
Other current asset:
Treasury note futures	$	—	$	—	$	159,800	$	442
Other current liability:
Treasury note futures	$	790,000	$	2,122	$	—	$	—

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:


	June 30, 2026		December 31, 2025
Cash and cash equivalents, excluding payment stablecoins	$	1,388,443	$	1,159,597
Payment stablecoins	49,068		38,544
Restricted cash	95,887		68,637
Total cash, cash equivalents and restricted cash	$	1,533,398	$	1,266,778

Accounts receivable, net

The following table presents the components of “Accounts receivable, net” reported in the Condensed Consolidated Balance Sheets:


	June 30, 2026		December 31, 2025
Trade accounts receivable	$	44,464	$	30,627
Interest receivable	4,554		4,440
Subservicer receivable(A)	12,789		6,914
Other accounts receivable	27,129		10,355
Less: Allowance for credit losses	(409)		(320)
Accounts receivable, net	$	88,527	$	52,016

(A) Subservicer receivable consists of loan principal and interest payments collected on behalf of the Company by a subservicer that have not yet been remitted to the Company.

The Company is exposed to credit risk related to trade accounts receivable. In order to manage credit risk, the Company generally has the right to withhold amounts due from transaction proceeds paid to the customer. At June 30, 2026, trade accounts receivable from four customers individually accounted for approximately 18.9%, 14.1%, 11.6%, and 10.4% of trade accounts receivables. No other customer accounted for 10% or more of trade accounts receivable.

Revenue Recognition

The Company’s revenues are substantially comprised of ecosystem and technology fees, loan originations and sales gains or losses, interest income earned on those loans, and loan servicing.

See the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for the Company’s legacy revenue recognition accounting policies.

The following table presents the components of “Ecosystem and technology fees” in the Condensed Consolidated Statements of Operations:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025

Technology offering fees(A)	$	29,176	$	10,855	$	46,472	$	18,750
Ecosystem fees(B)	36,768		14,938		61,187		20,150

Program fees(C)	6,921		2,348		12,512		4,854
Total ecosystem and technology fees	$	72,865	$	28,141	$	120,171	$	43,754

(A) Technology offering fees include fees that are accounted under ASC 606 as well as $12.2 million and $20.1 million for the three and six months ended June 30, 2026, respectively, and $4.3 million and $6.8 million for the three and six months ended June 30, 2025, respectively, that are in the scope of ASC 310.

(B) Ecosystem fees include fees that are accounted for under ASC 606 as well as $15.0 million and $24.7 million for the three and six months ended June 30, 2026, respectively, and $7.1 million and $9.6 million for the three and six months ended June 30, 2025, respectively, that are in the scope of ASC 310.

Software Costs

The Company amortizes internally-developed software capitalized costs within “Technology and product development” expense in the Condensed Consolidated Statements of Operations as follows:


	Estimated Useful Life (Years)	June 30, 2026		December 31, 2025
Internally developed software	3	$	118,249	$	101,873
Accumulated amortization(A)		(82,685)		(73,704)
Net		$	35,564	$	28,169

(A) The Company amortized $4.3 million and $9.0 million of capitalized internally-developed software costs during the three and six months ended June 30, 2026, respectively

Recently Issued Accounting Standards

With the exception of those discussed below, there have not been recent changes in accounting pronouncements issued by the FASB that are applicable to, or adopted by, the Company during the six months ended June 30, 2026.

Recently Issued Accounting Standards Not Yet Adopted

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), which clarifies the applicability of interim reporting guidance, establishes a comprehensive list of interim disclosures required under GAAP, and introduces a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 also improves navigability by organizing interim disclosure requirements across the Codification and clarifies the form and content of interim financial statements, including the use of condensed statements and required accompanying notes. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027, for public business entities, and after December 15, 2028, for all other entities, with early adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-11 on its interim reporting disclosures.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans (“ASU 2025-08”), which introduces the concept of purchased seasoned loans and expands use of the gross-up approach to a broader population of acquired loans. Under the amendments, loans (other than credit cards) that are acquired without significant credit deterioration since origination and meet seasoning criteria are accounted for using the gross-up approach at acquisition (that is, recognition of an allowance for credit losses with a corresponding increase to amortized cost). A loan generally is considered seasoned if it is obtained more than 90 days after origination and the transferee was not involved in the loan’s origination; the guidance provides indicators for assessing involvement and excludes certain assets (such as credit cards, debt securities, and Topic 606 trade receivables) from the purchased seasoned loans category. ASU 2025-08 also clarifies related measurement and interest income guidance for purchased seasoned loans and aligns various Topics (including business combinations, consolidations, and transfers and servicing) with the new model. ASU 2025-08 is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim periods within those

annual periods, and is applied prospectively to loans acquired on or after the date of initial application; early adoption is permitted in an interim or annual period for which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the effect of adopting ASU 2025-08 on its financial statements.

In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for a Share-Based Payment from a Customer in a Revenue Contract (“ASU 2025-07”). The ASU expands the population of contracts excluded from derivative accounting by excluding contracts whose underlyings are based on operations or activities specific to one of the parties to the contract. In addition, the ASU clarifies that a share-based payment received from a customer as consideration for goods or services should be accounted for under ASC 606’s share-based noncash consideration guidance, and that guidance in other topics should not be applied unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under ASC 606. ASU 2025-07 is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with earlier adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-07 on its financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for software costs by removing references to prescriptive project stages and establishing a new recognition threshold. Under ASU 2025-06, entities are required to begin capitalizing internal-use software costs once management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used as intended. In assessing the probability threshold, entities must evaluate whether significant development uncertainty exists, including unresolved technological innovations or unproven features, or whether significant performance requirements have not been identified or continue to be substantially revised. The amendments also incorporate website development cost guidance into Subtopic 350-40, require property, plant, and equipment disclosures for capitalized internal-use software costs, and eliminate duplicative intangible disclosure requirements. ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual periods, with early adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-06 on its financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. ASU 2024-03 also requires a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclosure of the total amount of selling expenses, and in annual reporting periods, the Company’s definition of selling expenses. ASU 2024-03 is effective for public business entities’ annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of adopting ASU 2024-03 on its disclosures.

In December 2023, the FASB issued ASU 2023‐09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. ASU 2023-09 should be applied on a prospective basis, with retrospective application permitted. The Company is currently evaluating the effect of adopting ASU 2023-09 on its disclosures for annual reporting for the year ended December 31, 2026.