Credit Card |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Credit Card | Credit Card Credit Card Derivative Prosper recognizes unrealized and settled gains and losses on the Credit Card Derivative within Change in Fair Value of Financial Instruments on the accompanying consolidated statements of operations. These settled gains and losses primarily consist of interest income and debt sales on charged off balances, less Coastal program fees, credit losses and fraud losses. For the three and nine months ended September 30, 2026, the Company recognized $27.2 million and $19.5 million of unrealized losses, respectively, from estimated fair value changes on the Credit Card Derivative, which largely reflects the decrease in the non-securitized Credit Card portfolio upon the close of the PMCC 2026-1 securitization on August 31, 2026 (see Note 7, Securitizations). For the three and nine months ended September 30, 2025, the Company recognized $4.5 million and $2.2 million of unrealized gains, respectively, from estimated fair value changes on the Credit Card Derivative. Changes from settled transactions underlying the Credit Card Derivative were gains of $3.5 million and $6.3 million for the three and nine months ended September 30, 2026, respectively, and losses of $1.4 million and $9.2 million for the three and nine months ended September 30, 2025, respectively. Receivable from Credit Card Partner Fair value gains and losses on the Receivable from Credit Card Partner, which effectively consist of the underlying Credit Card receivables securitized through PMCC 2026-1 (and previously PMCC 2024-1, as discussed at Note 7, Securitizations), are also recognized within Change in Fair Value of Financial Instruments. These gains and losses include changes related to estimated future cash flows, as well as actual charge-offs and debt sale recoveries. For the three and nine months ended September 30, 2026, the Company recognized fair value gains of $39.8 million and $31.9 million, respectively, which largely reflects the increase in the underlying securitized Credit Card portfolio upon the close of the PMCC 2026-1 securitization on August 31, 2026, as well as the change in estimate related to the applicable discount rate discussed in Note 8, Fair Value of Assets and Liabilities. For the three and nine months ended September 30, 2025, the Company recognized fair value losses of $4.0 million and $10.5 million, respectively, related to the Receivable from Credit Card Partner, which primarily consisted of net charge-offs. As of September 30, 2026 and December 31, 2025, the outstanding principal balance of securitized Credit Card receivables within Receivable from Credit Card Partner was $336.5 million (held by PMCC 2026-1) and $90.1 million (held by PMCC 2024-1), respectively. Program Fees The Company records revenue from various fees generated from the Credit Card program and PMCC 2024-1, including interchange fees, annual fees and late fees, net of a portion of the interchange fees that must be remitted to Coastal. These fees are included in Transaction Fees, Net on the accompanying consolidated statements of operations. For the three months ended September 30, 2026 and 2025, these fees totaled $8.4 million and $7.0 million, respectively, and for the nine months ended September 30, 2026 and 2025, these fees totaled $22.5 million and $18.5 million, respectively. Servicing Obligation and Fees Under the program agreement, Prosper is responsible for servicing the entire underlying Credit Card portfolio. Coastal pays the Company a 1% per annum servicing fee on the daily outstanding principal balance of receivables designated as Coastal Allocations, which is approximately 5% of the portfolio. To the extent these servicing fees do not exceed the market servicing rate a market participant would require to service the entire Credit Card portfolio, the Company records a servicing obligation liability and measures it at fair value through the servicing period. The net balance of this servicing obligation liability is included in Other Liabilities on the accompanying condensed consolidated balance sheets (see Note 10, Other Liabilities). Changes in the fair value of the net servicing obligation liability are recorded in Servicing Fees, Net on the accompanying condensed consolidated statements of operations, and totaled gains of $5.3 million and $4.5 million for the three and nine months ended September 30, 2026, respectively, which largely reflects the increase in the securitized portion of the Credit Card portfolio upon the closing of the PMCC 2026-1 securitization transaction on August 31, 2026. No servicing asset or obligation is recognized for the Credit Card receivables securitized within PMCC 2026-1 (and previously PMCC 2024-1), which is a consolidated VIE. Changes in the fair value of the net servicing obligation liability totaled losses of $0.6 million and $0.4 million for the three and nine months ended September 30, 2025, respectively
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