v3.26.1
Loans Held for Investment and Allowance for Credit Losses
 12 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Held for Investment and Allowance for Credit Losses Loans Held for Investment and Allowance for Credit Losses
            Loans held for investment consisted of the following (in thousands):
June 30, 2026June 30, 2025
Unpaid principal balance$9,577,027 $7,050,446 
Accrued interest receivable94,359 67,953 
Premiums on loans held for investment11,834 9,818 
Less: Discount due to loss on loan purchase commitment(87,263)(75,124)
Less: Discount due to loss on directly originated loans(35,214)(27,559)
Total loans held for investment$9,560,742 $7,025,534 

Loans held for investment includes loans originated through our originating bank partners and directly originated loans. Loans that are underwritten using our technology platform and originated by our originating bank partners are later purchased by us. We purchased loans from our originating bank partners in the amount of $40.2 billion, $30.0 billion, and $21.5 billion for the years ended June 30, 2026, 2025, and 2024, respectively. We directly originated $9.5 billion, $6.3 billion, and $4.5 billion of loans for the years ended June 30, 2026, 2025, and 2024, respectively.

The following table details activity for the discount included in loans held for investment, for the periods indicated:

June 30, 2026June 30, 2025June 30, 2024
(in thousands)
Balance at the beginning of the period$102,684 $98,527 $96,576 
Additions from loans purchased or originated, net of refunds490,626 356,398 268,441 
Amortization of discount(332,829)(254,964)(204,654)
Unamortized discount released on loans sold(137,055)(97,044)(60,580)
Impact of foreign currency translation(949)(233)(1,256)
Balance at the end of the period$122,477 $102,684 $98,527 

Our portfolio consists of interest bearing and non-interest bearing consumer loans with original term lengths of up to 60 months originated in markets including the U.S., U.K., and Canada, with the majority of loans originated within the U.S. While we view our loan portfolio as a single product segment, unsecured consumer loans, we consider factors such as country of origin, loan product, origination channel, merchant and various borrower characteristics to predict future losses.

We closely monitor the performance of our loan receivables to manage and evaluate our exposure to credit risk. Credit risk management begins with initial underwriting and continues through to full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models that leverage detailed information from external sources, such as credit bureaus where available, as well as the consumer’s prior repayment history on our platform. We evaluate the credit quality of our loan receivable based on the aging status of the loan.
The following tables present an aging analysis of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination, of loans held for investment by delinquency status as of June 30, 2026 and June 30, 2025 (in thousands):


June 30, 2026
Amortized Cost Basis by Fiscal Year of Origination
20262025202420232022PriorTotal
Current  – 3 calendar days past due$8,524,557 $401,908 $44,161 $7,050 $252 $27 $8,977,955 
4 – 29 calendar days past due235,777 14,459 616 70 3 — 250,925 
30 – 59 calendar days past due87,890 7,826 252 26 1 — 95,995 
60 – 89 calendar days past due69,564 7,817 211 28 1 — 77,621 
90 – 119 calendar days past due(1)
54,785 8,670 330 72 20 10 63,887 
Total amortized cost basis$8,972,573 $440,680 $45,570 $7,246 $277 $37 $9,466,383 
(1)Includes $63.8 million of loan receivables as of June 30, 2026 that are 90 days or more past due, but are not on non-accrual status. 

June 30, 2025
Amortized Cost Basis by Fiscal Year of Origination
20252024202320222021PriorTotal
Current  – 3 calendar days past due$6,268,050 $294,778 $50,958 $4,170 $133 $28 $6,618,117 
4 – 29 calendar days past due156,941 9,713 1,347 145 10 — 168,156 
30 – 59 calendar days past due62,250 4,367 288 35 4 — 66,944 
60 – 89 calendar days past due51,095 5,251 255 30 2 — 56,633 
90 – 119 calendar days past due(1)
41,889 5,571 228 34 2 8 47,732 
Total amortized cost basis$6,580,225 $319,680 $53,076 $4,414 $151 $36 $6,957,582 
(1)Includes $47.6 million of loan receivables as of June 30, 2025 that are 90 days or more past due, but are not on non-accrual status. 

The following table presents net charge-offs by fiscal year of origination as of year ended June 30, 2026 (in thousands):

June 30, 2026
Net Charge-offs by Fiscal Year of Origination
20262025202420232022PriorTotal
Current period charge-offs(278,424)(386,356)(20,287)(1,618)(442)(37)(687,164)
Current period recoveries9,130 36,290 18,970 7,287 2,972 906 75,555 
Current period net charge-offs(269,294)(350,066)(1,317)5,669 2,530 869 (611,609)


We maintain an allowance for credit losses at a level sufficient to absorb expected credit losses based on evaluating known and inherent risks in our loan portfolio. The allowance for credit losses reflects our estimate of expected lifetime credit losses as of the balance sheet date. Our estimate considers the remaining contractual term of our loan portfolio, historical credit losses, consumer payment history and estimated recoveries. We also consider current economic conditions and evolving consumer behavioral patterns. Adjustments to the allowance for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented within our consolidated statements of operations and comprehensive income (loss). When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged off against the allowance for credit losses. Loans are charged off in accordance with our charge-off policy, as the
contractual principal becomes 120 days past due. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses.

The following table details activity in the allowance for credit losses, including charge-offs, recoveries and provision for loan losses (in thousands):
June 30, 2026June 30, 2025June 30, 2024
Balance at beginning of period$396,929 $309,097 $204,531 
Provision for credit losses777,975 588,624 439,581 
Charge-offs(687,164)(552,072)(365,711)
Recoveries of charged-off receivables75,555 51,280 30,696 
Balance at end of period$563,295 $396,929 $309,097 

Loan Modifications for Borrowers Experiencing Financial Difficulty

We have a loan modification program for borrowers experiencing financial difficulty if certain eligibility criteria are met. A loan is evaluated for modification program eligibility when a borrower self-reports financial hardship, either upon a borrower contacting us directly or upon us making contact with the borrower when a loan payment is past due. The objectives of the loan modification program are to offer borrowers assistance during times of financial stress and minimize losses.

We have two primary loan modification strategies: payment deferrals and loan re-amortization. A payment deferral provides the borrower relief by extending the due date for the next payment. While a borrower may obtain more than one deferral, the total deferral period may not exceed three months. A loan re-amortization provides the borrower relief by lowering monthly payments by extending the term length of the loan, capped at the lesser of twelve additional months or a total remaining term of twenty-four months. In addition, the total interest due from the consumer will not exceed the initial total interest due prior to modification, and a loan may not be re-amortized more than once.

The following tables present the amortized cost basis of loans excluding accrued interest receivable that were modified for borrowers experiencing financial difficulty during the years ended June 30, 2026, 2025, and 2024 by type of modification (in thousands):

June 30, 2026June 30, 2025
June 30, 2024 (1)
Payment deferral$23,803 $11,642 $34,641 
Loan re-amortization310 225 1,057 
Total$24,113 $11,867 $35,698 
% of total loan receivables outstanding0.25 %0.17 %0.64 %
(1)Amounts previously disclosed excluded modifications made to borrowers where the loan was less than 30 days delinquent at the time of modification.

With respect to borrowers who received payment deferrals during the years ended June 30, 2026, 2025, and 2024, the length of each deferral period was one month.

With respect to borrowers who received a loan re-amortization during the years ended June 30, 2026, 2025, and 2024, the payment amount was reduced by half and the term of the loan was extended between one month and twelve months.
During the modification process, the loans are made current, and payment schedules for these loans are updated according to the modified terms. We closely monitor the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. We hold an allowance for credit losses for modified loans classified as held for investment. Our allowance estimate considers whether a loan has been modified, the delinquency status of the loan on the date of modification, and the increased likelihood that such loan may become delinquent or charge-off in the future.

The following tables present the delinquency status as of June 30, 2026, 2025, and 2024, by amortized cost basis excluding accrued interest receivable, of loan receivables that have been modified within the last 12 months where the borrower was experiencing financial difficulty at the time of modification (in thousands):

June 30, 2026
Payment DeferralLoan Re-amortizationTotal
Non-delinquent loans$14,529 $148 $14,677 
4 – 29 calendar days past due3,588 55 3,643 
30 – 59 calendar days past due2,162 47 2,209 
60 – 89 calendar days past due1,730 34 1,764 
90 – 119 calendar days past due1,794 26 1,820 
Total amortized cost basis$23,803 $310 $24,113 

June 30, 2025
Payment DeferralLoan Re-amortizationTotal
Non-delinquent loans$7,240 $142 $7,382 
4 – 29 calendar days past due1,721 43 1,764 
30 – 59 calendar days past due959 17 976 
60 – 89 calendar days past due867 12 879 
90 – 119 calendar days past due855 11 866 
Total amortized cost basis$11,642 $225 $11,867 
June 30, 2024 (1)
Payment DeferralLoan Re-amortizationTotal
Non-delinquent loans$19,189 $439 $19,628 
4 – 29 calendar days past due5,028 180 5,208 
30 – 59 calendar days past due2,382 124 2,506 
60 – 89 calendar days past due4,421 153 4,574 
90 – 119 calendar days past due3,621 161 3,782 
Total amortized cost basis$34,641 $1,057 $35,698 
(1)Amounts previously disclosed excluded modifications made to borrowers where the loan was less than 30 days delinquent at the time of modification.
With respect to modifications during the 12 months preceding June 30, 2026, 2025, and 2024, where the borrower was experiencing financial difficulty at the time of modification, the amortized cost basis of loans which have been charged off was $7.1 million, $6.5 million, and $13.3 million, respectively.