v3.26.3
Finance Receivables, Net
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Finance Receivables, Net Finance Receivables, Net
Finance receivables, net, which include retail installment sales agreements and bank-originated loans, consist of the following (in thousands):

As of September 30,As of
December 31,
202620252025
Finance receivables, gross$250,631 $298,081 $283,514 
Merchant partner discounts and premiums, net(24,798)(24,195)(22,728)
Unearned origination fees(2,887)(5,031)(4,186)
Finance receivables, amortized cost222,946 268,855 256,600 
Less allowance for loan losses(98,831)(115,721)(106,326)
Finance receivables, net$124,115 $153,134 $150,274 

The following table details the changes in the allowance for loan losses (in thousands):

Three Months EndedNine Months Ended
September 30,September 30,
2026202520262025
Balance at beginning of period$105,006 $122,874 $106,326 $117,005 
Provision for loan losses (1)
29,031 35,557 96,731 113,678 
Charge-offs(39,166)(45,705)(116,130)(124,202)
Recoveries3,960 2,995 11,904 9,240 
Balance at end of period$98,831 $115,721 $98,831 $115,721 

(1)During the third quarter of 2025, the Company’s retail POS payment solutions business (American First Finance or “AFF”) began assisting certain customers in applying for a direct-to-consumer unsecured installment loan that is underwritten and fully retained by AFF’s bank partner (“OBS Loan”). OBS Loans are not reflected on the Company’s balance sheet as a finance receivable. The provision for loan losses presented on the consolidated statement of income for the three and nine months ended September 30, 2026 includes an additional $11.8 million and $26.8 million, respectively, of provision expense related to OBS Loans in which AFF is responsible for reimbursing the bank partner for certain charge-offs, which the Company is required to recognize a liability for at inception. The provision for loan losses presented on the consolidated statement of income for both the three and nine months ended September 30, 2025 includes an additional $4.8 million of provision expense related to OBS Loans in which AFF is responsible for reimbursing the bank partner for certain charge-offs, which the Company is required to recognize a liability for at inception. See the “OBS Loans” section in Note 9.
The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2026 and 2025, by origination year (in thousands):

Origination Year
202620252024Total
As of September 30, 2026
Delinquency:
1 to 30 days past due$18,666 $5,547 $232 $24,445 
31 to 60 days past due10,308 3,480 176 13,964 
61 to 89 days past due (1)
9,309 3,973 211 13,493 
Total past due finance receivables38,283 13,000 619 51,902 
Current finance receivables133,818 36,052 1,174 171,044 
Finance receivables, amortized cost$172,101 $49,052 $1,793 $222,946 
Origination Year
202520242023Total
As of September 30, 2025
Delinquency:
1 to 30 days past due$22,166 $6,252 $152 $28,570 
31 to 60 days past due13,912 4,243 135 18,290 
61 to 89 days past due (1)
10,338 3,972 127 14,437 
Total past due finance receivables46,416 14,467 414 61,297 
Current finance receivables163,697 43,056 805 207,558 
Finance receivables, amortized cost$210,113 $57,523 $1,219 $268,855 

(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due.

The following table details the gross charge-offs of finance receivables for the nine months ended September 30, 2026 and 2025, by origination year (in thousands):

Origination Year
2026202520242023Total
Finance receivables gross charge-offs:
Gross charge-offs during the nine months ended September 30, 2026
$33,602 $74,489 $8,039 $— $116,130 
Gross charge-offs during the nine months ended September 30, 2025
— 37,469 80,525 6,208 124,202