| Leased Merchandise, Net |
Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands):
| | | | | | | | | | | | | | | | | | | As of September 30, | | As of
December 31, | | 2026 | | 2025 | | 2025 | | Leased merchandise | $ | 182,768 | | | $ | 242,961 | | | $ | 252,064 | | | Processing fees | (1,433) | | | (2,040) | | | (2,240) | | | Merchant partner (discounts) and premiums, net | (82) | | | 302 | | | (175) | | | Accumulated depreciation | (58,681) | | | (77,457) | | | (70,650) | | | Leased merchandise, before allowance for lease losses | 122,572 | | | 163,766 | | | 178,999 | | | Less allowance for lease losses | (47,867) | | | (64,041) | | | (64,716) | | | Leased merchandise, net | $ | 74,705 | | | $ | 99,725 | | | $ | 114,283 | |
The following table details the changes in the allowance for lease losses (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Balance at beginning of period | $ | 56,933 | | | $ | 69,667 | | | $ | 64,716 | | | $ | 80,257 | | | Provision for lease losses | 17,021 | | | 27,920 | | | 71,204 | | | 88,025 | | | Charge-offs | (28,333) | | | (35,189) | | | (95,191) | | | (110,196) | | | Recoveries | 2,246 | | | 1,643 | | | 7,138 | | | 5,955 | | | Balance at end of period | $ | 47,867 | | | $ | 64,041 | | | $ | 47,867 | | | $ | 64,041 | |
|