Fair Value of Assets and Liabilities (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Entity Information [Line Items] |
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| Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value |
The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value (Notes 4 and 7) | | $ | — | | | $ | — | | | $ | 215,711 | | | $ | 215,711 | | | Receivable from Credit Card Partner, at Fair Value (Notes 5 and 7) | | — | | | — | | | 398,414 | | | 398,414 | | | Servicing Assets (Note 6) | | — | | | — | | | 21,382 | | | 21,382 | | | Credit Card Derivative (Note 5) | | — | | | — | | | 28,833 | | | 28,833 | | | Total Assets | | $ | — | | | $ | — | | | $ | 664,340 | | | $ | 664,340 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 212,396 | | | $ | 212,396 | | | Convertible Preferred Stock Warrant Liability | | — | | | — | | | 648 | | | 648 | | | Loan Trailing Fee Liability (Note 10) | | — | | | — | | | 3,997 | | | 3,997 | | | Credit Card servicing obligation liability (Note 5) | | — | | | — | | | 4,728 | | | 4,728 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 221,769 | | | $ | 221,769 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value (Notes 4 and 7) | | $ | — | | | $ | — | | | $ | 309,737 | | | $ | 309,737 | | | Receivable from Credit Card Partner, at Fair Value (Notes 5 and 7) | | — | | | — | | | 99,865 | | | 99,865 | | | Servicing Assets (Note 6) | | — | | | — | | | 17,402 | | | 17,402 | | | Credit Card Derivative (Note 5) | | — | | | — | | | 48,290 | | | 48,290 | | | Total Assets | | $ | — | | | $ | — | | | $ | 475,294 | | | $ | 475,294 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value (Note 4) | | $ | — | | | $ | — | | | $ | 243,900 | | | $ | 243,900 | | | Convertible Preferred Stock Warrant Liability (Note 13) | | — | | | — | | | 230,060 | | | 230,060 | | | Loan Trailing Fee Liability (Note 10) | | — | | | — | | | 3,328 | | | 3,328 | | | Credit Card servicing obligation liability (Note 5) | | — | | | — | | | 9,276 | | | 9,276 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 486,564 | | | $ | 486,564 | |
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| Schedule of Quantitative Information About Significant Unobservable Inputs |
The following tables present quantitative information about the ranges of significant unobservable inputs used for the Company’s Level 3 fair value measurements at September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | Range | | Borrower Loans and Notes: | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 6.2% - 16.7% | | 5.0% - 15.5% | | Default rate | | 2.4% - 14.0% | | 1.9% - 14.5% |
For Borrower Loans and Notes funded through the Note Channel, the Company utilizes the same projected cash flows to estimate the fair values of these financial instruments. | | | | | | | | | | | | | | | | | Range | | Servicing Assets: | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 15.0% - 25.0% | | 15.0% - 25.0% | | Default rate | | 2.4% - 14.0% | | 2.0% - 15.0% | | Prepayment rate | | 16.3% - 35.3% | | 13.3% - 35.6% | Market servicing rate (1) (2) | | 0.593% - 0.842% | | 0.593% - 0.842% |
(1) Servicing assets associated with loans enrolled in a relief program offered by the Company as of September 30, 2026 and December 31, 2025 were measured using a market servicing rate assumption of 84.2 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of September 30, 2026 and December 31, 2025, the market rate for collection fees and non-sufficient fund fees was assumed to be 11 basis points and 10 basis points, respectively, for a total market servicing rate range of 70.3 - 95.2 basis points and 69.3 - 94.2 basis points, respectively. | | | | | | | | | | | | | | | | | Range | | Loan Trailing Fee Liability: | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 15.0% - 25.0% | | 15.0% - 25.0% | | Default rate | | 2.4% - 14.0% | | 2.0% - 15.0% | | Prepayment rate | | 16.3% - 35.3% | | 13.3% - 35.6% |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | | | Borrower Loans | | Loans Held For Sale | | Notes | Total | | | | | Fair value as of January 1, 2026 | | $ | 309,737 | | | $ | — | | | $ | (243,900) | | $ | 65,837 | | | | | | Purchases of Borrower Loans/Issuance of Notes | | 109,434 | | | 2,342,129 | | | (107,162) | | 2,344,401 | | | | | | Principal repayments | | (151,583) | | | — | | | 122,317 | | (29,266) | | | | | | Borrower Loans sold to third parties | | (31,261) | | | (2,342,129) | | | — | | (2,373,390) | | | | | | Other changes | | (1,164) | | | — | | | 476 | | (688) | | | | | | Change in fair value | | (19,452) | | | — | | | 15,873 | | (3,579) | | | | | | Fair value as of September 30, 2026 | | $ | 215,711 | | | $ | — | | | $ | (212,396) | | $ | 3,315 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | | | | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | Total | | | | | | | | | Fair value as of January 1, 2025 | | $ | 461,785 | | | $ | — | | | $ | (283,030) | | | $ | 178,755 | | | | | | | | | | Purchases of Borrower Loans/Issuance of Notes | | 128,165 | | | 1,836,165 | | | (126,900) | | | 1,837,430 | | | | | | | | | | Principal repayments | | (223,993) | | | — | | | 141,344 | | | (82,649) | | | | | | | | | | Borrower Loans sold to third parties | | (1,850) | | | (1,836,165) | | | — | | | (1,838,015) | | | | | | | | | | Other changes | | (1,362) | | | — | | | 477 | | | (885) | | | | | | | | | | Change in fair value | | (20,699) | | | — | | | 12,571 | | | (8,128) | | | | | | | | | | Fair value as of September 30, 2025 | | $ | 342,046 | | | $ | — | | | $ | (255,538) | | | $ | 86,508 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | | | Total | | Fair value as of July 1, 2026 | | $ | 258,205 | | | $ | — | | | $ | (221,070) | | | | | $ | 37,135 | | | Purchase of Borrower Loans/Issuance of Notes | | 35,795 | | | 874,296 | | | (35,178) | | | | | 874,913 | | | Principal repayments | | (42,781) | | | — | | | 38,694 | | | | | (4,087) | | | Borrower Loans sold to third parties | | (29,122) | | | (874,296) | | | — | | | | | (903,418) | | | Other changes | | (365) | | | — | | | 68 | | | | | (297) | | | Change in fair value | | (6,021) | | | — | | | 5,090 | | | | | (931) | | | Fair value as of September 30, 2026 | | $ | 215,711 | | | $ | — | | | $ | (212,396) | | | | | $ | 3,315 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | | | Total | | Fair value as of July 1, 2025 | | $ | 376,294 | | | $ | — | | | $ | (264,001) | | | | | $ | 112,293 | | | Purchase of Borrower Loans/Issuance of Notes | | 42,332 | | | 641,901 | | | (42,318) | | | | | 641,915 | | | Principal repayments | | (68,940) | | | | | 46,563 | | | | | (22,377) | | | Borrower Loans sold to third parties | | (573) | | | (641,901) | | | — | | | | | (642,474) | | | Other changes | | (316) | | | — | | | 140 | | | | | (176) | | | Change in fair value | | (6,751) | | | — | | | 4,078 | | | | | (2,673) | | | Fair value as of September 30, 2025 | | $ | 342,046 | | | $ | — | | | $ | (255,538) | | | | | $ | 86,508 | |
The following table presents additional information about the Level 3 Receivable from Credit Card Partner, measured at fair value on a recurring basis for the three and nine month period ending September 30, 2026 (in thousands): | | | | | | | | | | | Receivable from Credit Card Partner | | Fair value as of January 1, 2026 | | $ | 99,865 | | | Purchases of Credit Card principal receivables | | 307,735 | | | Principal repayments on Credit Card receivables | | (45,415) | | | Other changes | | (2,527) | | | Transfer of Credit Card interest receivables upon close of PMCC 2026-1 | | 6,891 | | | Change in fair value | | 31,865 | | | Fair value as of September 30, 2026 | | $ | 398,414 | |
| | | | | | | | | | | Receivable from Credit Card Partner | | Fair value as of January 1, 2025 | | $ | 104,153 | | | Purchases of Credit Card principal receivables | | 57,129 | | | Principal repayments on Credit Card receivables | | (48,604) | | | Other changes | | (797) | | | Change in fair value | | (10,493) | | | Fair value as of September 30, 2025 | | $ | 101,388 | |
| | | | | | | | | | | Receivable from Credit Card Partner | | Fair value as of July 1, 2026 | | $ | 99,328 | | | Purchases of Credit Card principal receivables | | 274,559 | | | Principal repayments on Credit Card receivables | | (20,453) | | | Other changes | | (1,693) | | | Transfer of Credit Card interest receivables upon close of PMCC 2026-1 | | 6,891 | | | Change in fair value | | 39,782 | | | Fair value as of September 30, 2026 | | $ | 398,414 | |
| | | | | | | | | | | Receivable from Credit Card Partner | | Fair value as of July 1, 2025 | | $ | 102,491 | | | Purchases of Credit Card principal receivables | | 17,880 | | | Principal repayments on Credit Card receivables | | (14,406) | | | Other changes | | (620) | | | Change in fair value | | (3,957) | | | Fair value as of September 30, 2025 | | $ | 101,388 | |
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| Schedule of Servicing Assets and Liabilities Measured at Fair Value |
The following tables present additional information about Level 3 Servicing Assets measured at fair value on a recurring basis for the three and nine month periods ending September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | Servicing Assets | | Fair value as of January 1, 2026 | | $ | 17,402 | | | Additions | | 14,510 | | | Less: Changes in fair value | | (10,530) | | | Fair value as of September 30, 2026 | | $ | 21,382 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of January 1, 2025 | | $ | 13,718 | | | Additions | | 9,703 | | | Less: Changes in fair value | | (6,723) | | | Fair value as of September 30, 2025 | | $ | 16,698 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of July 1, 2026 | | $ | 19,659 | | | Additions | | 5,504 | | | Less: Changes in fair value | | (3,781) | | | Fair value as of September 30, 2026 | | $ | 21,382 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of July 1, 2025 | | $ | 14,438 | | | Additions | | 3,517 | | | Less: Changes in fair value | | (1,257) | | | Fair value as of September 30, 2025 | | $ | 16,698 | |
The following tables present additional information about the Level 3 Credit Card Derivative measured at fair value on a recurring basis for the three and nine month periods ending September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | Credit Card Derivative | | Fair value as of January 1, 2026 | | $ | 48,290 | | | Change in fair value | | (19,457) | | | Fair value as of September 30, 2026 | | $ | 28,833 | |
| | | | | | | | | | | Credit Card Derivative | | Fair value as of January 1, 2025 | | $ | 38,739 | | | Change in fair value | | 2,245 | | | Fair value as of September 30, 2025 | | $ | 40,984 | |
| | | | | | | | | | | Credit Card Derivative | | Fair value as of July 1, 2026 | | $ | 56,027 | | | Change in fair value | | (27,194) | | | | | | | | | Fair value as of September 30, 2026 | | $ | 28,833 | |
| | | | | | | | | | | Credit Card Derivative | | Fair value as of July 1, 2025 | | $ | 36,443 | | | Change in fair value | | 4,541 | | | | | | | | | Fair value as of September 30, 2025 | | $ | 40,984 | |
The following tables present additional information about the Level 3 Credit Card servicing obligation liability (a component of Other Liabilities on the condensed consolidated balance sheets) measured at fair value on a recurring basis for the three and nine month periods ending September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | Credit Card Servicing Obligation Liability | | Fair value as of January 1, 2026 | | | | $ | 9,276 | | | Change in fair value | | | | (4,548) | | | Fair value as of September 30, 2026 | | | | $ | 4,728 | |
| | | | | | | | | | | | | | | Credit Card Servicing Obligation Liability | | Fair value as of January 1, 2025 | | | | $ | 8,947 | | | Change in fair value | | | | (371) | | | Fair value as of September 30, 2025 | | | | $ | 8,576 | |
| | | | | | | | | | | | | | | Credit Card Servicing Obligation Liability | | Fair value as of July 1, 2026 | | | | $ | 10,001 | | | Change in fair value | | | | (5,273) | | | Fair value as of September 30, 2026 | | | | $ | 4,728 | |
| | | | | | | | | | | | | | | Credit Card Servicing Obligation Liability | | Fair value as of July 1, 2025 | | | | $ | 7,964 | | | Change in fair value | | | | 612 | | | Fair value as of September 30, 2025 | | | | $ | 8,576 | |
The following tables present additional information about the Level 3 Convertible Preferred Stock Warrant Liability measured at fair value on a recurring basis for the three and nine month periods ending September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | Convertible Preferred Stock Warrant Liability | | Fair value as of January 1, 2026 | | $ | 230,060 | | | Reclassification to Convertible Preferred Stock upon exercise of Series E-1 and F Warrants (Note 13) | | (171,356) | | | Change in fair value | | (58,056) | | | Fair value as of September 30, 2026 | | $ | 648 | |
| | | | | | | | | | | Convertible Preferred Stock Warrant Liability | | Fair value as of January 1, 2025 | | $ | 261,249 | | | Reclassification to Convertible Preferred Stock upon exercise of Series F Warrants (Note 13) | | (73,292) | | | Change in fair value | | 37,254 | | | Fair value as of September 30, 2025 | | $ | 225,211 | |
| | | | | | | | | | | Convertible Preferred Stock Warrant Liability | | Fair value as of July 1, 2026 | | $ | 696 | | | Change in fair value | | (48) | | | Fair value as of September 30, 2026 | | $ | 648 | |
| | | | | | | | | | | Convertible Preferred Stock Warrant Liability | | Fair value as of July 1, 2025 | | $ | 263,382 | | | Reclassification to Convertible Preferred Stock upon exercise of Series F Warrants (Note 13) | | (73,292) | | | Change in fair value | | 35,121 | | | Fair value as of September 30, 2025 | | $ | 225,211 | |
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| Schedule of Level 3 Liabilities Measured on Recurring Basis |
The following tables present additional information about the Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis for the three and nine month periods ending September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of January 1, 2026 | | $ | 3,328 | | | Issuances | | 2,416 | | | Cash Payment of Loan Trailing Fee | | (2,190) | | | Change in Fair Value | | 443 | | | Fair value as of September 30, 2026 | | $ | 3,997 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of January 1, 2025 | | $ | 3,004 | | | Issuances | | 1,822 | | | Cash Payment of Loan Trailing Fee | | (1,969) | | | Change in Fair Value | | 383 | | | Fair value as of September 30, 2025 | | $ | 3,240 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of July 1, 2026 | | $ | 3,710 | | | Issuances | | 901 | | | Cash Payment of Loan Trailing Fee | | (765) | | | Change in Fair Value | | 151 | | | Fair value as of September 30, 2026 | | $ | 3,997 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of July 1, 2025 | | $ | 3,129 | | | Issuances | | 651 | | | Cash Payment of Loan Trailing Fee | | (676) | | | Change in Fair Value | | 136 | | | Fair value as of September 30, 2025 | | $ | 3,240 | |
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| Schedule of Fair Value Assumptions |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and December 31, 2025 for Borrower Loans and Loans Held for Sale are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Borrower Loans | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 215,711 | | | $ | 309,737 | | | Weighted-average discount rate | | 9.34 | % | | 8.53 | % | | Weighted-average default rate | | 11.44 | % | | 11.79 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 213,776 | | | $ | 307,014 | | 200 basis point increase in discount rate | | 211,887 | | | 304,354 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 217,694 | | | $ | 312,526 | | 200 basis point decrease in discount rate | | 219,726 | | | 315,384 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 213,932 | | | $ | 307,253 | | Applying a 1.2 multiplier to default rate | | 212,152 | | | 304,767 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 217,489 | | | $ | 312,219 | | Applying a 0.8 multiplier to default rate | | 219,269 | | | 314,699 | |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and December 31, 2025 for Notes are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Notes | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 212,396 | | | $ | 243,900 | | | Weighted-average discount rate | | 9.34 | % | | 8.67 | % | | Weighted-average default rate | | 11.44 | % | | 11.48 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 210,488 | | | $ | 241,752 | | 200 basis point increase in discount rate | | 208,626 | | | 239,655 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 214,348 | | | $ | 246,096 | | 200 basis point decrease in discount rate | | 216,354 | | | 248,352 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 210,644 | | | $ | 241,944 | | Applying a 1.2 multiplier to default rate | | 208,892 | | | 239,987 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 214,146 | | | $ | 245,853 | | Applying a 0.8 multiplier to default rate | | 215,898 | | | 247,806 | |
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| Schedule of Estimated Fair Value of Sensitivity Assets and Liabilities |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and December 31, 2025 for Servicing Assets is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Servicing Assets | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions | | $ | 21,382 | | | $ | 17,402 | | Weighted-average market servicing rate | | 0.599 | % | | 0.598 | % | | Weighted-average prepayment rate | | 21.74 | % | | 21.65 | % | | Weighted-average default rate | | 11.09 | % | | 11.84 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.025% | | $ | 20,161 | | | $ | 16,398 | | Market servicing rate decrease of 0.025% | | 22,603 | | | 18,405 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 20,800 | | | $ | 16,949 | | Applying a 0.9 multiplier to prepayment rate | | 21,978 | | | 17,863 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 21,049 | | | $ | 17,114 | | Applying a 0.9 multiplier to default rate | | 21,715 | | | 17,689 | |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and December 31, 2025 for Receivable from Credit Card Partner is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | | | Receivable from Credit Card Partner: | | September 30, 2026 | | December 31, 2025 | | | | Fair value, using the following assumptions: | | $ | 398,414 | | | $ | 99,865 | | | | Discount rate on Credit Card receivable cash flows (1) | | 20.00 | % | | 23.15 | % | | | | Prepayment rate on Credit Card receivables | | 8.20 | % | | 8.22 | % | | | | Default rate on Credit Card receivables | | 14.70 | % | | 15.00 | % | | | | | | | | | | | Fair value resulting from: | | | | | | | 100 basis point increase in discount rate | | $ | 397,521 | | | $ | 99,689 | | | | 200 basis point increase in discount rate | | 396,653 | | | 99,518 | | | | | Fair value resulting from: | | | | | | | 100 basis point decrease in discount rate | | $ | 399,335 | | | $ | 100,045 | | | | 200 basis point decrease in discount rate | | 400,283 | | | 100,231 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 397,501 | | | $ | 99,676 | | | | Applying a 0.9 multiplier to prepayment rate | | 399,340 | | | 100,055 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to default rate | | $ | 388,610 | | | $ | 97,376 | | | | Applying a 0.9 multiplier to default rate | | 408,641 | | | 102,459 | | | | (1) Refer to Changes in Estimates section below. | | | | | | |
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| Schedule of Derivative Assets Measured at Fair Value |
ey economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and December 31, 2025 for the Credit Card Derivative is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | | | Credit Card Derivative | | September 30, 2026 | | December 31, 2025 | | | | Fair value, based on the following notional amount and rate assumptions: | | $ | 28,833 | | | $ | 48,290 | | | | | Outstanding Credit Card Principal Balance, Prosper and Coastal Allocations | | 166,457 | | | 330,409 | | | | Discount rate on Prosper Allocations (1) | | 20.00 | % | | 23.15 | % | | | Discount rate on Coastal Program Fee (1) | | 20.00 | % | | 23.15 | % | | | | Prepayment rate applied to Credit Card portfolio | | 8.20 | % | | 8.22 | % | | | Default rate applied to Credit Card portfolio (1) | | 13.92 | % | | 15.33 | % | | | | | | | | | | | Fair value resulting from: | | | | | | | 100 basis point increase in both discount rates | | $ | 28,431 | | | $ | 47,654 | | | | 200 basis point increase in both discount rates | | 28,047 | | | 47,036 | | | | | Fair value resulting from: | | | | | | | 100 basis point decrease in both discount rates | | $ | 29,234 | | | $ | 48,945 | | | | 200 basis point decrease in both discount rates | | 29,654 | | | 49,619 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 28,418 | | | $ | 47,625 | | | | Applying a 0.9 multiplier to prepayment rate | | 29,241 | | | 48,964 | | | | | | | | | | | | Fair value resulting from: | | | | | | | Applying a 1.1 multiplier to default rate | | $ | 24,217 | | | $ | 38,254 | | | | Applying a 0.9 multiplier to default rate | | 33,582 | | | 58,663 | | | | (1) Refer to Changes in Estimates section below. | | | | | | |
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| Schedule of Derivative Liability Measured at Fair Value |
Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at September 30, 2026 and 2025 for the Credit Card servicing obligation liability is presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Credit Card servicing obligation liability: | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 4,728 | | | $ | 9,276 | | Discount rate on Credit Card portfolio servicing obligation (1) | | 20.00 | % | | 23.15 | % | | Prepayment rate applied to Credit Card portfolio | | 8.20 | % | | 8.22 | % | Default rate applied to Credit Card portfolio (1) | | 13.92 | % | | 15.33 | % | | Market servicing rate | | 2.00 | % | | 2.00 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.10% | | $ | 4,987 | | | $ | 9,761 | | Market servicing rate decrease of 0.10% | | 4,469 | | | 8,792 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 4,673 | | | $ | 9,174 | | Applying a 0.9 multiplier to prepayment rate | | 4,783 | | | 9,380 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 4,624 | | | $ | 9,056 | | Applying a 0.9 multiplier to default rate | | 4,834 | | | 9,501 | | (1) Refer to Changes in Estimates section below. | | | | |
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| Schedule of Financial Instruments, Assets And Liabilities Not Recorded at Fair Value |
The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Carrying Amount | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Balance at Fair Value | | Assets: | | | | | | | | | | | | Cash and Cash Equivalents | | $ | 74,059 | | | $ | 74,059 | | | $ | — | | | $ | — | | | $ | 74,059 | | | Restricted Cash - Cash and Cash Equivalents | | 146,290 | | | 146,290 | | | — | | | — | | | 146,290 | | | Restricted Cash - Certificates of Deposit | | 1,510 | | | — | | | 1,510 | | | — | | | 1,510 | | | Accounts Receivable | | 10,882 | | | — | | | 10,882 | | | — | | | 10,882 | | | Total Assets | | $ | 232,741 | | | $ | 220,349 | | | $ | 12,392 | | | $ | — | | | $ | 232,741 | | | Liabilities: | | | | | | | | | | | | Accounts Payable and Accrued Liabilities | | $ | 61,657 | | | $ | — | | | $ | 61,657 | | | $ | — | | | $ | 61,657 | | | Transaction Fee Refund Liability (Note 17) | | 13,891 | | | — | | | — | | | 13,891 | | | 13,891 | | | Payable to Investors | | 134,841 | | | — | | | 134,841 | | | — | | | 134,841 | | | Notes Issued by Securitization Trusts | | 320,350 | | | — | | | 317,056 | | | — | | | 317,056 | | | Term Loan (Note 11) | | 75,000 | | | — | | | 77,048 | | | — | | | 77,048 | | | Total Liabilities | | $ | 605,739 | | | $ | — | | | $ | 590,602 | | | $ | 13,891 | | | $ | 604,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Carrying Amount | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Balance at Fair Value | | Assets: | | | | | | | | | | | | Cash and Cash Equivalents | | $ | 46,755 | | | $ | 46,755 | | | $ | — | | | $ | — | | | $ | 46,755 | | | Restricted Cash - Cash and Cash Equivalents | | 92,854 | | | 92,854 | | | — | | | — | | | 92,854 | | | Restricted Cash - Certificates of Deposit | | 1,509 | | | — | | | 1,509 | | | — | | | 1,509 | | | Accounts Receivable | | 11,947 | | | — | | | 11,947 | | | — | | | 11,947 | | | Total Assets | | $ | 153,065 | | | $ | 139,609 | | | $ | 13,456 | | | $ | — | | | $ | 153,065 | | | Liabilities: | | | | | | | | | | | | Accounts Payable and Accrued Liabilities | | $ | 56,501 | | | $ | — | | | $ | 56,501 | | | $ | — | | | $ | 56,501 | | | Transaction Fee Refund Liability (Note 17) | | 17,191 | | | — | | | — | | | 17,191 | | | 17,191 | | | Payable to Investors | | 77,604 | | | — | | | 77,604 | | | — | | | 77,604 | | | Notes Issued by Securitization Trusts | | 149,902 | | | — | | | 151,325 | | | — | | | 151,325 | | | Term Loan (Note 11) | | 75,000 | | | — | | | 76,089 | | | — | | | 76,089 | | | Total Liabilities | | $ | 376,198 | | | $ | — | | | $ | 361,519 | | | $ | 17,191 | | | $ | 378,710 | |
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| Prosper Funding LLC |
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| Entity Information [Line Items] |
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| Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value |
The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value | | $ | — | | | $ | — | | | $ | 215,711 | | | $ | 215,711 | | | Servicing Assets | | — | | | — | | | 21,382 | | | 21,382 | | | Total Assets | | $ | — | | | $ | — | | | $ | 237,093 | | | $ | 237,093 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 212,396 | | | $ | 212,396 | | | Loan Trailing Fee Liability (included in Other Liabilities) | | — | | | — | | | 3,997 | | | 3,997 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 216,393 | | | $ | 216,393 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total | | Assets: | | | | | | | | | | Borrower Loans, at Fair Value | | $ | — | | | $ | — | | | $ | 245,337 | | | $ | 245,337 | | | Servicing Assets | | — | | | — | | | 17,601 | | | 17,601 | | | Total Assets | | $ | — | | | $ | — | | | $ | 262,938 | | | $ | 262,938 | | | Liabilities: | | | | | | | | | | Notes, at Fair Value | | $ | — | | | $ | — | | | $ | 243,900 | | | $ | 243,900 | | | Loan Trailing Fee Liability (included in Other Liabilities) | | — | | | — | | | 3,328 | | | 3,328 | | | Total Liabilities | | $ | — | | | $ | — | | | $ | 247,228 | | | $ | 247,228 | |
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| Schedule of Quantitative Information About Significant Unobservable Inputs |
The following tables present quantitative information about the significant unobservable inputs used for PFL’s Level 3 fair value measurements at the dates presented: | | | | | | | | | | | | | | | | | Range | | Borrower Loans and Notes | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 6.2% - 16.7% | | 6.3% - 15.5% | | Default rate | | 2.4% - 14.0% | | 2.3% - 14.5% |
| | | | | | | | | | | | | | | | | Range | | Servicing Assets | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 15.0% - 25.0% | | 15.0% - 25.0% | | Default rate | | 2.4% - 14.0% | | 1.9% - 15.0% | | Prepayment rate | | 16.3% - 35.3% | | 3.4% - 41.4% | Market servicing rate (1) (2) | | 0.593% - 0.842% | | 0.593% - 0.842% |
(1) Servicing assets associated with loans enrolled in a relief program offered by the Company as of September 30, 2026 and December 31, 2025 were measured using a market servicing rate assumption of 84.2 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption. (2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of September 30, 2026 and December 31, 2025, the market rate for collection fees and non-sufficient fund fees was assumed to be 11 basis points and 10 basis points, respectively, for a total market servicing rate range of 70.3 - 95.2 basis points and a total market servicing rate of 69.3 - 94.2 basis points, respectively. | | | | | | | | | | | | | | | | | Range | | Loan Trailing Fee Liability | | September 30, 2026 | | December 31, 2025 | | Discount rate | | 15.0% - 25.0% | | 15.0% - 25.0% | | Default rate | | 2.4% - 14.0% | | 1.9% - 15.0% | | Prepayment rate | | 16.3% - 35.3% | | 3.4% - 41.4% |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | | | Total | | Fair value as of January 1, 2026 | | $ | 245,337 | | | $ | — | | | $ | (243,900) | | | | | $ | 1,437 | | | Originations | | 109,434 | | | 2,342,129 | | | (107,162) | | | | | 2,344,401 | | | Principal repayments | | (120,827) | | | — | | | 122,317 | | | | | 1,490 | | | Borrower Loans sold to third parties | | (2,931) | | | (2,342,129) | | | — | | | | | (2,345,060) | | | Borrower Loans contributed by Parent, at fair value | | 1,581 | | | — | | | — | | | | | 1,581 | | | Other changes | | (309) | | | — | | | 477 | | | | | 168 | | | Change in fair value | | (16,574) | | | — | | | 15,872 | | | | | (702) | | | Fair value as of September 30, 2026 | | $ | 215,711 | | | $ | — | | | $ | (212,396) | | | | | $ | 3,315 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | Total | | Fair value as of January 1, 2025 | | $ | 285,578 | | | $ | — | | | $ | (283,030) | | | $ | 2,548 | | | Originations | | 128,165 | | | 1,836,165 | | | (126,900) | | | 1,837,430 | | | Principal repayments | | (140,150) | | | — | | | 141,344 | | | 1,194 | | | Borrower Loans sold to third parties | | (1,850) | | | (1,836,165) | | | — | | | (1,838,015) | | | Other changes | | (439) | | | — | | | 477 | | | 38 | | | Change in fair value | | (13,405) | | | — | | | 12,571 | | | (834) | | | Fair value as of September 30, 2025 | | $ | 257,899 | | | $ | — | | | $ | (255,538) | | | $ | 2,361 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | Total | | Fair value as of July 1, 2026 | | $ | 222,766 | | | $ | — | | | $ | (221,070) | | | $ | 1,696 | | | Originations | | 35,795 | | | 874,296 | | | (35,178) | | | 874,913 | | | Principal repayments | | (38,479) | | | — | | | 38,694 | | | 215 | | | Borrower Loans sold to third parties | | (792) | | | (874,296) | | | — | | | (875,088) | | | Borrower Loans contributed by Parent, at fair value | | 1,581 | | | — | | | — | | | 1,581 | | | Other changes | | 92 | | | — | | | 69 | | | 161 | | | Change in fair value | | (5,252) | | | — | | | 5,089 | | | (163) | | | Fair value as of September 30, 2026 | | $ | 215,711 | | | $ | — | | | $ | (212,396) | | | $ | 3,315 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Assets | | Liabilities | | | | | | Borrower Loans | | Loans Held for Sale | | Notes | | Total | | | Fair value as of July 1, 2025 | | $ | 266,678 | | | $ | — | | | $ | (264,001) | | | $ | 2,677 | | | | Originations | | 42,332 | | | 641,901 | | | (42,318) | | | 641,915 | | | | Principal repayments | | (45,757) | | | — | | | 46,563 | | | 806 | | | | Borrower Loans sold to third parties | | (573) | | | (641,901) | | | — | | | (642,474) | | | | Other changes | | (83) | | | — | | | 140 | | | 57 | | | | Change in fair value | | (4,698) | | | — | | | 4,078 | | | (620) | | | | Fair value as of September 30, 2025 | | $ | 257,899 | | | $ | — | | | $ | (255,538) | | | $ | 2,361 | | |
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| Schedule of Servicing Assets and Liabilities Measured at Fair Value |
The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands): | | | | | | | | | | | Servicing Assets | | Fair value as of January 1, 2026 | | $ | 17,601 | | | Additions | | 14,510 | | | Less: Changes in fair value | | (10,729) | | | Fair value as of September 30, 2026 | | $ | 21,382 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of January 1, 2025 | | $ | 14,333 | | | Additions | | 9,703 | | | Less: Changes in fair value | | (7,061) | | | Fair value as of September 30, 2025 | | $ | 16,975 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of July 1, 2026 | | $ | 19,754 | | | Additions | | 5,504 | | | Less: Changes in fair value | | (3,876) | | | Fair value as of September 30, 2026 | | $ | 21,382 | |
| | | | | | | | | | | Servicing Assets | | Fair value as of July 1, 2025 | | $ | 14,780 | | | Additions | | 3,517 | | | Less: Changes in fair value | | (1,322) | | | Fair value as of September 30, 2025 | | $ | 16,975 | |
The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of January 1, 2026 | | $ | 3,328 | | | Issuances | | 2,416 | | | Cash payment of Loan Trailing Fee | | (2,190) | | | Change in fair value | | 443 | | | Fair value as of September 30, 2026 | | $ | 3,997 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of January 1, 2025 | | $ | 3,004 | | | Issuances | | 1,822 | | | Cash payment of Loan Trailing Fee | | (1,969) | | | Change in fair value | | 383 | | | Fair value as of September 30, 2025 | | $ | 3,240 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of July 1, 2026 | | $ | 3,710 | | | Issuances | | 901 | | | Cash payment of Loan Trailing Fee | | (765) | | | Change in fair value | | 151 | | | Fair value as of September 30, 2026 | | $ | 3,997 | |
| | | | | | | | | | | Loan Trailing Fee Liability | | Fair value as of July 1, 2025 | | $ | 3,129 | | | Issuances | | 651 | | | Cash payment of Loan Trailing Fee | | (676) | | | Change in fair value | | 136 | | | Fair value as of September 30, 2025 | | $ | 3,240 | |
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| Schedule of Fair Value Assumptions |
Key economic assumptions are used to compute the fair value of Borrower Loans. The sensitivity of the fair value to immediate changes in assumptions at September 30, 2026 and December 31, 2025 for Borrower Loans are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Borrower Loans: | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 215,711 | | | $ | 245,337 | | | Weighted-average discount rate | | 9.34 | % | | 8.67 | % | | Weighted-average default rate | | 11.44 | % | | 11.48 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 213,776 | | | $ | 243,180 | | 200 basis point increase in discount rate | | 211,887 | | | 241,073 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 217,694 | | | $ | 247,547 | | 200 basis point decrease in discount rate | | 219,726 | | | 249,810 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 213,932 | | | $ | 243,371 | | Applying a 1.2 multiplier to default rate | | 212,152 | | | 241,402 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 217,489 | | | $ | 247,304 | | Applying a 0.8 multiplier to default rate | | 219,269 | | | 249,269 | |
Key economic assumptions are used to compute the fair value of Notes. The sensitivity of the fair value to immediate changes in assumptions at September 30, 2026 and December 31, 2025 for Notes funded through the Note Channel are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Notes | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 212,396 | | | $ | 243,900 | | | Weighted-average discount rate | | 9.34 | % | | 8.67 | % | | Weighted-average default rate | | 11.44 | % | | 11.48 | % | | | | | | | Fair value resulting from: | | | | | 100 basis point increase in discount rate | | $ | 210,488 | | | $ | 241,752 | | 200 basis point increase in discount rate | | 208,626 | | | 239,655 | | | Fair value resulting from: | | | | | 100 basis point decrease in discount rate | | $ | 214,348 | | | $ | 246,096 | | 200 basis point decrease in discount rate | | 216,354 | | | 248,352 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 210,644 | | | $ | 241,944 | | Applying a 1.2 multiplier to default rate | | 208,892 | | | 239,987 | | | Fair value resulting from: | | | | | Applying a 0.9 multiplier to default rate | | $ | 214,146 | | | $ | 245,853 | | Applying a 0.8 multiplier to default rate | | 215,898 | | | 247,806 | |
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| Schedule of Estimated Fair Value of Sensitivity Assets and Liabilities |
Key economic assumptions are used to compute the fair value of Servicing Assets. The sensitivity of the current fair value to immediate changes in assumptions at September 30, 2026 and December 31, 2025 for Servicing Assets are presented in the following table (in thousands, except percentages). | | | | | | | | | | | | | | | | Servicing Assets | | September 30, 2026 | | December 31, 2025 | | Fair value, using the following assumptions: | | $ | 21,382 | | | $ | 17,601 | | Weighted-average market servicing rate | | 0.599 | % | | 0.598 | % | | Weighted-average prepayment rate | | 21.74 | % | | 21.72 | % | | Weighted-average default rate | | 11.09 | % | | 11.86 | % | | | | | | | Fair value resulting from: | | | | | Market servicing rate increase of 0.025% | | $ | 20,161 | | | $ | 16,586 | | Market servicing rate decrease of 0.025% | | 22,603 | | | 18,615 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to prepayment rate | | $ | 20,800 | | | $ | 17,143 | | Applying a 0.9 multiplier to prepayment rate | | 21,978 | | | 18,068 | | | | | | | | Fair value resulting from: | | | | | Applying a 1.1 multiplier to default rate | | $ | 21,049 | | | $ | 17,310 | | Applying a 0.9 multiplier to default rate | | 21,715 | | | 17,892 | |
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