The Company provides retail financial services to customers of its dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to dealer sales of motorcycles to retail customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts.

Finance receivables held for investment, net includes both retail and wholesale finance receivables, including amounts held by consolidated VIEs, which management has the intent and ability to hold. Finance receivables held for investment are recorded in the financial statements at amortized cost net of an allowance for credit losses.

Finance receivables held for sale, net includes retail finance receivables that management intends to sell. The Company expects to sell approximately two-thirds of future retail loan originations through December 2030 to two counterparties under an agreement with the two counterparties (Forward Flow Agreement). The Company expects HDFS will continue to service the future retail loan originations it sells to the counterparties and earn a loan servicing fee of 1% per annum for prime loans and 2.5% per annum for subprime loans. When finance receivables are reclassified to held for sale from held for

investment status based on management's intent to sell them, any previously recorded allowance for credit losses associated with the finance receivables is reversed. Finance receivables transferred to, or originated as, held for sale are measured at the lower of amortized cost or fair value. If fair value is lower than amortized cost, a valuation allowance is recorded through Financial services revenue on the Consolidated statements of operations. The valuation allowance is updated each period to reflect the difference between amortized cost and the estimated fair value of the receivables.

Amortized cost for finance receivables held for investment and held for sale includes the principal outstanding, accrued interest, and deferred loan fees and costs. Deferred loan fee and cost amortization associated with loans held for investment is included within Financial services revenue on the Consolidated statements of operations. Amortization of deferred loan fees and costs is terminated at the time a loan is reclassified to held for sale status and any remaining deferred balances are included in any subsequent gain or loss on sale of the associated finance receivables.

Finance receivables held for investment, net and Finance receivables held for sale, net were as follows (in thousands):


	September 30, 2026		December 31, 2025		September 30, 2025
Retail finance receivables held for investment	$	1,300,633	$	754,421	$	704,294
Wholesale finance receivables held for investment	953,341		948,800		1,166,354
	2,253,974		1,703,221		1,870,648
Allowance for credit losses	(53,888)		(2,235)		12,901
Finance receivables held for investment, net	2,200,086		1,700,986		1,883,549

Finance receivables held for sale, net	417,696		264,238		4,080,885
Total finance receivables, net	$	2,617,782	$	1,965,224	$	5,964,434

The Company's allowance for credit losses reflects expected lifetime credit losses, net of expected recoveries, on its finance receivables held for investment. Based on differences in the nature of the finance receivables held for investment and the underlying methodology for calculating the allowance for credit losses, the Company segments its finance receivables held for investment into the retail and wholesale portfolios. The Company further disaggregates each portfolio by credit quality indicators. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit quality indicators for each portfolio.

The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes weighted-average remaining maturity and vintage-based loss forecast methodologies. Vintage-based forecasts include decompositions for probability of default, exposure at default, attrition rate, and recovery balance rate. Reasonable and supportable economic forecasts for a one- or two-year period are incorporated into the methodologies to reflect the estimated impact of changes in future economic conditions, such as unemployment rates, household obligations or other relevant factors, over the reasonable and supportable period. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience immediately or using a mean-reversion process over a three-year period. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors. As of December 31, 2025 and September 30, 2025, the retail allowance for credit losses was in an asset position as estimated recoveries from retail finance receivables previously charged-off exceeded the remaining allowance for credit losses on loans held for investment.

The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review to determine whether the loans share similar risk characteristics. The Company individually evaluates loans that do not share risk characteristics. Loans identified as those for which foreclosure is probable are classified as Non-Performing, and a specific allowance for credit losses is established when appropriate. The specific allowance is determined based on the amortized cost of the related finance receivable and the estimated fair value of the collateral, less selling costs and the cash that the Company expects to receive. Finance receivables in the wholesale portfolio not individually assessed are aggregated, based on similar risk characteristics, according to the Company’s internal risk rating system and measured collectively. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past credit loss experience, reasonable and supportable economic forecasts, and the value of the underlying collateral and expected recoveries.

The Company considers various third-party economic forecast scenarios as part of estimating the allowance for expected credit losses and applies a probability-weighting to those economic forecast scenarios. Each quarter, the Company's outlook on economic conditions impacts the Company's retail and wholesale estimates for expected credit losses. At the end of the third quarter of 2026, the Company's probability weighting of its economic forecast scenarios was weighted towards more pessimistic scenarios given continued challenging macro-economic conditions including a persistently high interest rate environment, ongoing elevated inflation levels, and muted consumer confidence.

Additionally, the historical experience incorporated into the portfolio-specific models does not fully reflect the Company's comprehensive expectations regarding the future. As such, the Company incorporated qualitative factors to establish an appropriate allowance for credit losses balance. These factors may include motorcycle recovery value considerations, delinquency adjustments, specific problem loan trends, or changes in other portfolio-specific loan characteristics as appropriate.

Due to the use of projections and assumptions in estimating the losses, the amount of losses incurred by the Company in either portfolio could differ from the amounts estimated. Further, the Company’s allowance for credit losses incorporates known conditions at the balance sheet date and the Company’s expectations surrounding the economic forecasts. The Company will continue to monitor future economic trends and conditions. Expectations surrounding the Company's economic forecasts may change in future periods as additional information becomes available.


	Three months ended September 30, 2026						Nine months ended September 30, 2026
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	17,835	$	20,325	$	38,160	$	(22,342)	$	24,577	$	2,235
Provision for credit losses	20,609		(285)		20,324		53,597		(2,477)		51,120
Charge-offs	(10,095)		149		(9,946)		(20,495)		(2,036)		(22,531)
Recoveries	5,350		—		5,350		22,939		125		23,064

Balance, end of period	$	33,699	$	20,189	$	53,888	$	33,699	$	20,189	$	53,888
	Three months ended September 30, 2025						Nine months ended September 30, 2025
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	374,828	$	24,465	$	399,293	$	378,373	$	22,810	$	401,183
Provision for credit losses	(307,162)		5,663		(301,499)		(206,386)		7,959		(198,427)
Charge-offs	(44,555)		(4,701)		(49,256)		(183,395)		(5,342)		(188,737)
Recoveries	14,108		—		14,108		48,627		—		48,627
Sale of Residual Interest in Securitizations	(75,547)		—		(75,547)		(75,547)		—		(75,547)
Balance, end of period	$	(38,328)	$	25,427	$	(12,901)	$	(38,328)	$	25,427	$	(12,901)

The Company manages retail credit risk through its credit approval process and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. For the Company’s U.S. and Canadian retail finance receivables, the Company determines the credit quality indicator for each loan at origination and does not update the credit quality indicator subsequent to the loan origination date.

As loan performance by credit quality indicator differs between the U.S. and Canadian retail loans, the Company’s credit quality indicators vary for the two portfolios. For U.S. retail finance receivables, those with a FICO score of 740 or above at origination are generally considered super prime, loans with a FICO score between 640 and 740 are generally categorized as prime, and loans with FICO score below 640 are generally considered sub-prime. For Canadian retail finance receivables, those with a FICO score of 700 or above at origination are generally considered super prime, loans with a FICO score between 620 and 700 are generally categorized as prime, and loans with FICO score below 620 are generally considered sub-prime.

The amortized cost of the Company's U.S. and Canadian retail finance receivables held for investment by vintage and credit quality indicator, along with total gross retail charge-offs by vintage, were as follows (in thousands):


	September 30, 2026
	2026		2025		2024		2023		2022		2021 & Prior		Total
U.S. Retail:
Super prime	$	280,291	$	135,038	$	71,349	$	33,423	$	10,672	$	21,365	$	552,138
Prime	290,192		137,655		67,801		36,599		18,191		22,124		572,562
Sub-prime	143,284		16,978		824		716		639		1,272		163,713
	713,767		289,671		139,974		70,738		29,502		44,761		1,288,413
Canadian Retail:
Super prime	7,853		738		3		3		2		6		8,605
Prime	2,838		314		5		5		4		7		3,173
Sub-prime	371		62		5		2		1		1		442
	11,062		1,114		13		10		7		14		12,220
	$	724,829	$	290,785	$	139,987	$	70,748	$	29,509	$	44,775	$	1,300,633
Gross charge-offs for the nine months ended September 30, 2026:
U.S. Retail	$	4,804	$	9,055	$	2,802	$	1,375	$	741	$	715	$	19,492
Canadian Retail	480		523		—		—		—		—		1,003
	$	5,284	$	9,578	$	2,802	$	1,375	$	741	$	715	$	20,495


	December 31, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
U.S. Retail:
Super prime	$	185,774	$	108,025	$	54,501	$	16,944	$	9,675	$	1,544	$	376,463
Prime	166,971		96,360		54,902		26,268		11,525		2,413		358,439
Sub-prime	13,436		986		897		830		726		1,098		17,973
	366,181		205,371		110,300		44,042		21,926		5,055		752,875
Canadian Retail:
Super prime	1,012		5		5		5		3		1		1,031
Prime	377		4		3		8		5		8		405
Sub-prime	101		2		3		1		1		2		110
	1,490		11		11		14		9		11		1,546
	$	367,671	$	205,382	$	110,311	$	44,056	$	21,935	$	5,066	$	754,421
Gross charge-offs for the year ended December 31, 2025:
U.S. Retail	$	3,280	$	48,145	$	53,272	$	41,304	$	21,354	$	13,556	$	180,911
Canadian Retail	126		996		991		821		383		427		3,744
	$	3,406	$	49,141	$	54,263	$	42,125	$	21,737	$	13,983	$	184,655


	September 30, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
U.S. Retail:
Super prime	$	144,780	$	120,456	$	61,502	$	19,838	$	12,198	$	2,011	$	360,785
Prime	125,804		104,939		60,992		29,368		13,633		2,767		337,503
Sub-prime	1,601		886		830		808		710		1,171		6,006






	$	272,185	$	226,281	$	123,324	$	50,014	$	26,541	$	5,949	$	704,294
Gross charge-offs for the nine months ended September 30, 2025:
U.S. Retail	$	2,771	$	47,626	$	53,155	$	41,175	$	21,364	$	13,560	$	179,651
Canadian Retail	126		996		991		821		383		427		3,744
	$	2,897	$	48,622	$	54,146	$	41,996	$	21,747	$	13,987	$	183,395

Information about the asset performance of the total portfolio of retail loans serviced by the Company ("Managed Portfolio"), including receivables retained ("Owned Portfolio"), along with receivables sold to third parties or included in off-balance sheet VIEs ("Off-Balance Sheet Portfolio"), is provided in the tables below (in thousands). Recoveries exceeded charge-offs within the owned portfolio for the nine months ended September 30, 2026, leading to the negative credit loss value shown below.


	Principal Balance				Credit Losses
	Total		30+ Day Delinquent		Three months ended		Nine months ended
	September 30, 2026		September 30, 2026		September 30, 2026
Owned portfolio	$	1,661,339	$	41,754	$	4,766	$	(2,491)
Off-balance sheet portfolio	4,446,177		224,182		44,024		142,991
Managed portfolio	$	6,107,516	$	265,936	$	48,790	$	140,500


	Principal Balance				Credit Losses
	Total		30+ Day Delinquent		Three months ended		Nine months ended
	September 30, 2025		September 30, 2025		September 30, 2025
Owned portfolio	$	4,629,196	$	242,408	$	30,341	$	135,056
Off-balance sheet portfolio	1,742,841		32,972		1,717		1,717
Managed portfolio	$	6,372,037	$	275,380	$	32,058	$	136,773

The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon the Company’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. Additionally, the Company classifies dealers identified as those in which foreclosure is probable as Non-Performing. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated by the Company on a quarterly basis.

The amortized cost of the Company's wholesale finance receivables, by vintage and credit quality indicator, along with total gross wholesale charge-offs by vintage, were as follows (in thousands):


	September 30, 2026
	2026		2025		2024		2023		2022		2021 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	7,675		2,400		3,176		476		19		—		13,746
Substandard	6,380		238		122		21		—		—		6,761
Special Mention	17,688		2,728		485		32		—		—		20,933
Medium Risk	—		—		—		—		—		—		—
Low Risk	803,735		85,924		15,703		4,197		2,342		—		911,901
	$	835,478	$	91,290	$	19,486	$	4,726	$	2,361	$	—	$	953,341
Gross charge-offs for the nine months ended September 30, 2026:
Wholesale	$	98	$	1,490	$	419	$	29	$	—	$	—	$	2,036


	December 31, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	13,010		5,984		1,002		19		—		1		20,016
Substandard	3,192		2,613		21		—		—		—		5,826
Special Mention	45,320		5,331		289		—		—		—		50,940
Medium Risk	414		57		—		—		—		—		471
Low Risk	762,221		71,071		8,370		29,081		803		1		871,547
	$	824,157	$	85,056	$	9,682	$	29,100	$	803	$	2	$	948,800
Gross charge-offs for the year ended December 31, 2025:
Wholesale	$	2,775	$	1,017	$	191	$	—	$	—	$	2,301	$	6,284


	September 30, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
Non-Performing	$	933	$	1,090	$	282	$	—	$	—	$	—	$	2,305
Doubtful	15,333		7,473		1,070		20		—		—		23,896
Substandard	1,831		1,796		—		—		—		—		3,627
Special Mention	16,109		4,171		175		—		59		—		20,514
Medium Risk	36,215		4,268		752		—		—		—		41,235
Low Risk	921,295		103,843		13,101		34,350		1,176		1,012		1,074,777
	$	991,716	$	122,641	$	15,380	$	34,370	$	1,235	$	1,012	$	1,166,354
Gross charge-offs for the nine months ended September 30, 2025:
Wholesale	$	2,401	$	506	$	134	$	—	$	—	$	2,301	$	5,342

Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables at amortized cost, excluding accrued interest, are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. The Company reverses accrued interest related to charged-off accounts against Financial services interest income when the account is charged-off. The Company reversed $0.8 million and $7.1 million of accrued interest against Financial services interest income during the three months ended September 30, 2026 and September 30, 2025, respectively, and $1.7 million and $24.7 million during the nine months ended September 30, 2026 and September 30, 2025, respectively. Due to the timely write-off of accrued interest, the Company made the election provided under Accounting Standards Codification (ASC) Topic 326, Financial Instruments - Credit Losses to exclude accrued interest from its allowance for credit losses. Accordingly, as of September 30, 2026, December 31, 2025, and September 30, 2025, all retail finance receivables were accounted for as interest-earning receivables.

Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once the Company determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the Company determines that foreclosure is probable, and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Once an account is charged-off, the Company will reverse the associated accrued interest against Financial services interest income. As the Company follows a non-accrual policy for interest, the allowance for credit losses excludes accrued interest for the wholesale portfolio. There were no charged-off accounts for the three months ended September 30, 2026, and as such, the Company did not reverse any wholesale accrued interest during that period. The Company reversed $1.8 million of accrued interest related to the charge-off of Non-Performing dealer loans during the three months ended September 30, 2025. The Company reversed $0.3 million and $1.9 million of accrued interest related to the charge-off of Non-Performing dealer loans during the nine months ended September 30, 2026 and September 30, 2025, respectively.

Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):


	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2026		September 30, 2026		Recognized
Wholesale:
No related specific allowance recorded	$	3,715	$	1,035	$	33
Related specific allowance recorded	—		—		14
	$	3,715	$	1,035	$	47

	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2025		September 30, 2025		Recognized
Wholesale:
No related specific allowance recorded	$	7,510	$	184	$	986
Related specific allowance recorded	3,753		2,121		56
	$	11,263	$	2,305	$	1,042

The aging analysis of the Company's finance receivables held for investment was as follows (in thousands):


	September 30, 2026
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	1,253,757	$	22,936	$	11,757	$	12,183	$	—	$	46,876	$	1,300,633
Wholesale	945,399		1,146		2,810		3,376		610		7,942		953,341
	$	2,199,156	$	24,082	$	14,567	$	15,559	$	610	$	54,818	$	2,253,974

	December 31, 2025
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	735,999	$	9,715	$	2,942	$	5,765	$	—	$	18,422	$	754,421
Wholesale	941,116		1,830		948		4,288		618		7,684		948,800
	$	1,677,115	$	11,545	$	3,890	$	10,053	$	618	$	26,106	$	1,703,221

	September 30, 2025
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	693,233	$	6,774	$	1,292	$	2,995	$	—	$	11,061	$	704,294
Wholesale	1,160,152		3,041		563		1,932		666		6,202		1,166,354
	$	1,853,385	$	9,815	$	1,855	$	4,927	$	666	$	17,263	$	1,870,648