XML 27 R13.htm IDEA: XBRL DOCUMENT v3.25.4
Acquired Card Receivables
 6 Months Ended
Dec. 31, 2025
Acquired Card Receivables [Abstract]  
Acquired Card Receivables ACQUIRED CARD RECEIVABLES
As of December 31, 2025, approximately $437.2 million of the acquired card receivables balance served as collateral for the Company’s borrowings from the Revolving Credit Facilities (as defined below, see Note 7).
The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the three and six months ended December 31, 2025 and 2024.
The acquired card receivables balances do not include purchases of participation interests in card receivables from the Company's card issuing partner banks (Issuing Banks) that have not cleared at the end of the reporting period. Purchases of participation interests in card receivables that have not cleared as of December 31, 2025 totaled $41.9 million. The Company recognized an immaterial amount of expected credit losses on the card receivables that have not cleared yet as of December 31, 2025.
Credit Quality Information
The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for expected credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):
December 31,
2025		June 30,
2025
Current and less than 30 days past due$732,719 $686,070 
30 ~ 59 days past due7,981 6,173 
60 ~ 89 days past due8,121 5,312 
90 ~ 119 days past due2,767 2,562 
Over 119 days past due38 11 
Total$751,626 $700,128 
Allowance for Expected Credit Losses
Below is a summary of the changes in allowance for expected credit losses (in thousands):
Three Months Ended
December 31,		Six Months Ended
December 31,
2025202420252024
Balance, beginning$15,217 $24,868 $15,020 $20,883 
Provision for expected credit losses19,658 10,060 31,852 25,231 
Charge-off amounts(18,198)(15,985)(32,846)(29,013)
Recoveries collected2,865 1,825 5,516 3,667 
Balance, ending$19,542 $20,768 $19,542 $20,768 
Card receivables acquired from the Issuing Banks were $6.6 billion and $12.8 billion during the three and six months ended December 31, 2025, respectively, and $5.3 billion and $10.5 billion during the three and six months ended December 31, 2024, respectively. The provision for expected credit losses related to acquired card receivables increased during the three and six months ended December 31, 2025 compared to the same prior year period due to portfolio growth, an increase in delinquencies and a release of the allowance for expected credit losses during the three months ended December 31, 2024 as a result of a decrease in delinquencies during that period. The charge-offs related to acquired card receivables increased during the three and six months ended December 31, 2025 compared to the same prior year period primarily due to portfolio growth.