v3.26.3
LOANS RECEIVABLE
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
LOANS RECEIVABLE LOANS RECEIVABLE
The following is a summary of the Company's loans receivable, net:
(in thousands)
September 30, 2026December 31, 2025
Loans receivable, gross
$95,084 $108,894 
  Unamortized fees
(3,207)(928)
Loans receivable, amortized cost
91,877 107,966 
   Allowance for loan losses
(17,494)(17,318)
Loans receivable, net of allowances and unamortized fees1
$74,383 $90,648 
1 Loans receivable, net of allowances and unamortized fees attributable to Four was $68.1 million and $84.4 million as of September 30, 2026 and December 31, 2025, respectively.
Four extends or declines credit on an individual transaction basis using its proprietary decisioning platform, without using customer credit ratings. Four instead uses an internal model based on factors such as banking data and user history to generate internal proprietary risk scores. Four groups its internal risk scores into three categories that range from A to C, with an A rating representing the highest credit quality.
Below is a summary of the credit quality of Four's loan portfolio as of September 30, 2026 and December 31, 2025 by proprietary risk category as determined at the time of loan origination:
September 30, 2026December 31, 2025
Four - proprietary risk category:
Category A39.4 %19.6 %
Category B42.9 %48.5 %
Category C17.7 %31.9 %
The table below presents credit quality indicators of the amortized cost of the Company's loans receivable by origination year:
As of September 30, 2026 (in thousands)
2026
2025 and Prior
Total
Four - proprietary risk category:
Category A$32,930 $— $32,930 
Category B35,928 — 35,928 
Category C14,799 — 14,799 
Other strategic operations
8,220 — 8,220 
Total amortized cost
$91,877 $— $91,877 
Gross charge-offs by origination year for the nine months ended September 30, 2026
$30,653 $19,318 $49,971 
Included in the table below is an aging of the loans receivable, gross balance:
(dollar amounts in thousands)
Aging category
September 30, 2026December 31, 2025
1-30 days past due
13.3 %12.5 %
31-59 days past due
8.3 %3.9 %
60 or more days past due
6.3 %2.9 %
Past due loans receivable
27.9 %19.3 %
Current loans receivable
72.1 %80.7 %
Balance of loans receivable 90 or more days past due and still accruing interest and fees
$— $— 
The table below presents the components of the allowance for loan losses:
Three months ended September 30,Nine months ended September 30,
(in thousands)
2026202520262025
Beginning balance
$18,649 $9,849 $17,318 $9,228 
Provision for credit losses
14,515 9,991 41,440 23,535 
Charge-offs(18,785)(11,332)(49,971)(26,105)
Recoveries3,115 1,404 8,707 3,254 
Ending balance
$17,494 $9,912 $17,494 $9,912