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Financial Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Derivatives

Our primary market exposure is to interest rate risk, specifically U.S. treasury and mortgage interest rates, due to their impact on mortgage-related assets and commitments. We use forward sales commitments on whole loans and mortgage-backed securities to manage and reduce this risk. We do not have any derivative instruments designated as hedging instruments.

Forward Sales Commitments—We are exposed to interest rate and price risk on loans held for sale from the funding date until the date the loan is sold. Forward sales commitments on whole loans and mortgage-backed securities are used to fix the forward sales price that will be realized at the sale of each loan.
Interest Rate Lock Commitments—Interest rate lock commitments ("IRLCs") represent an agreement to extend credit to a mortgage loan applicant. We commit (subject to loan approval) to fund the loan at the specified rate, regardless of changes in market interest rates between the commitment date and the funding date. Outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of commitment through the loan funding date or expiration date. Loan commitments generally range between 30 and 90 days and the borrower is not obligated to obtain the loan. Therefore, IRLCs are subject to fallout risk, which occurs when approved borrowers choose not to close on the underlying loans. We review our commitment-to-closing ratio ("pull-through rate") as part of an estimate of the number of mortgage loans that will fund according to the IRLCs.

The notional amounts of our forward sales commitments and IRLCs were as follows:
InstrumentMarch 31, 2025December 31, 2024
Forward sales commitments$426,928 $270,050 
IRLCs339,829 197,336 

The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended March 31,
InstrumentClassification20252024
Forward sales commitmentsRevenue$(1,524)$2,406 
IRLCsRevenue3,106 2,525 

Fair Value of Financial Instruments

A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected in our consolidated balance sheets, is set forth below:
Balance at March 31, 2025Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
Money market funds$137,293 $137,293 $— $— 
Total cash equivalents137,293 137,293 — — 
Loans held for sale172,744 — 172,744 — 
Other current assets
Forward sales commitments599 — 599 — 
IRLCs6,246 — — 6,246 
Total other current assets6,845 — 599 6,246 
Mortgage servicing rights, at fair value2,614 — — 2,614 
Total assets$319,496 $137,293 $173,343 $8,860 
Liabilities
Accrued liabilities
Forward sales commitments$1,436 $— $1,436 $— 
IRLCs276 — — 276 
Total liabilities$1,712 $— $1,436 $276 
Balance at December 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
        Money market funds$65,599 $65,599 $— $— 
Total cash equivalents65,599 65,599 — — 
Loans held for sale152,426 — 152,426 — 
Other current assets
Forward sales commitments1,063 — 1,063 — 
IRLCs3,359 — — 3,359 
Total other current assets4,422 — 1,063 3,359 
Mortgage servicing rights, at fair value2,736 — — 2,736 
Total assets$225,183 $65,599 $153,489 $6,095 
Liabilities
Accrued liabilities
Forward sales commitments$377 $— $377 $— 
IRLCs496 — — 496 
Total liabilities$873 $— $377 $496 

There were no transfers into or out of Level 3 financial instruments during the periods presented.

The significant unobservable input used in the fair value measurement of IRLCs is the pull-through rate. Significant changes in the input could result in a significant change in fair value measurement.

The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs and Mortgage Servicing Rights (“MSRs”):
March 31, 2025December 31, 2024
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
70.1% - 100.0%
88.2%
74.2% - 100.0%
92.4%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 24.0%
8.2%
 6.0% - 23.0%
8.0%
Default ratesDiscounted cash flow
0.1% - 1.1%
0.2%
0.1% - 1.2%
0.2%
Discount rateDiscounted cash flow
10.0% - 18.0%
10.3%
10.0% - 18.0%
10.3%
The following is a summary of changes in the fair value of IRLCs:
Three Months Ended March 31,
20252024
Balance, net—beginning of period$2,863 $4,453 
Issuances of IRLCs13,836 16,062 
Settlements of IRLCs(11,651)(14,739)
Fair value changes recognized in earnings922 1,201 
Balance, net—end of period$5,970 $6,977 

The following is a summary of changes in the fair value of MSRs:
Three Months Ended March 31,
20252024
Balance—beginning of period$2,736 $32,171 
MSRs originated44 61 
MSRs sales
(50)(269)
Fair value changes recognized in earnings
(116)365 
Balance, net—end of period$2,614 $32,328 

The following table presents the estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:
March 31, 2025December 31, 2024
2025 notes$71,780 $69,933 
2027 notes444,937 388,594 

The estimated fair value of our convertible senior notes is based on the closing trading price of the notes on the last day of trading for the period and is classified as Level 2 within the fair value hierarchy due to the limited trading activity of the notes. See Note 12 for additional details on our convertible senior notes.

Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property and equipment, goodwill and other intangible assets, and other assets. These assets are remeasured at fair value if determined to be impaired.
The cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash, money market funds, and restricted cash were as follows:
March 31, 2025
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted Cash
CashN/A$46,245 $— $— $46,245 $46,245 
Money markets fundsLevel 1137,293 — — 137,293 137,293 
Restricted cashN/A128 — — 128 128 
Total$183,666 $— $— $183,666 $183,666 
December 31, 2024
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted Cash
CashN/A$59,144 $— $— $59,144 $59,144 
Money markets fundsLevel 165,599 — — 65,599 65,599 
Restricted cashN/A229 — — 229 229 
Total$124,972 $— $— $124,972 $124,972 

As of March 31, 2025 and December 31, 2024, we do not have any investments.