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FAIR VALUE MEASUREMENT
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT
FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, when available. If such quoted market prices are not available, fair value is based upon models that use, as inputs, observable market-based parameters to the greatest extent possible.

Financial Assets and Liabilities Recorded at Fair Value

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):
June 30, 2025
Level 1Level 2Level 3Total
Assets:
Investments in loans and securities (Notes)$— $133,326 $187,869 $321,195 
Investments in loans and securities (Certificates)
— — 547,101 547,101 
Liabilities:
Warrant liability$2,471 $— $— $2,471
Other liabilities (1)
— — 6,697 6,697 

December 31, 2024
Level 1Level 2Level 3Total
Assets:
Investments in loans and securities (Notes) (2)
$— $115,220 $125,054 $240,274 
Investments in loans and securities (Certificates) (2)
— 533,243 533,243 
Liabilities:
Warrant liability$890$3$—$893
Other liabilities (1)
— — 6,090 6,090 
(1) Included in “Accrued expenses and other liabilities” in the unaudited condensed consolidated balance sheets. See Note 8 for additional information.
(2) Accrued interest receivable of $14.3 million, previously reported within “Fee and other receivables” as of December 31, 2024, has been reclassified to conform to the current period’s presentation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 1 and 2)

Warrant liability (Level 1)

The following tables summarize the Warrant liability activity for the three and six months ended June 30, 2025 and 2024 (in thousands):
Three Months Ended June 30, 2025
Balance as of March 31, 2025
$1,992 
Change in fair value479 
Balance as of June 30, 2025
$2,471 

Six Months Ended June 30, 2025
Balance as of December 31, 2024$893 
Change in fair value1,578 
Balance as of June 30, 2025
$2,471 
Three Months Ended June 30, 2024
Balance as of March 31, 2024
$1,342 
Change in fair value329 
Balance as of June 30, 2024
$1,671 
Six Months Ended June 30, 2024
Balance as of December 31, 2023$3,242 
Change in fair value(1,571)
Balance as of June 30, 2024
$1,671 

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 3)

Investments in Loans and Securities (Level 3)

As of June 30, 2025, the Company held investments in loans and securities classified as available for sale. These assets are measured at fair value using a discounted cash flow model, and presented within investments in loans and securities on the unaudited condensed consolidated balance sheets. Changes in the fair value, other than declines in fair value due to credit, are reflected in other comprehensive income (loss) on the unaudited condensed consolidated statements of comprehensive loss. Declines in fair value due to credit are reflected in other expenses, net on the unaudited condensed consolidated statements of operations.

The Company held investments in securities under the fair value option. These assets are measured using a discounted cash flow methodology, while also considering market data as it become available, and presented within investments in loans and securities on the unaudited condensed consolidated balance sheets. The initial fair value measurement and subsequent measurement changes in fair value in the period are reflected in the other expenses, net on the unaudited condensed consolidated statements of operations.

The following tables summarize the activity related to the fair value of the investments in loans and securities available for sale (Level 3 only) for the three and six months ended June 30, 2025 and 2024 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Balance, beginning of period$641,617 $825,121 $663,189 $626,368 
Transfer from Level 2—— — 10,469 
Additions182,259 146,821 248,978 406,696 
Cash received(60,706)(19,559)(108,016)(42,572)
Gain on sale of Investments in loans and securities2,699 — 8,593 — 
Change in accrued interest on investments5,659 — 8,937 — 
Change in fair value (OCI)(5,849)(45,905)(21,795)(67,632)
Credit-related impairment loss, net of recoveries(28,944)(53,060)(63,151)(79,911)
Balance, end of period$736,735$853,418$736,735$853,418

Significant unobservable inputs used for our Level 3 fair value measurement of the loans and securities and credit losses are the discount rate, loss rate, and prepayment rate and consideration of any optional redemption features in our investment securities. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement.

The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the loans and securities as of June 30, 2025 and December 31, 2024:

June 30, 2025
December 31, 2024
Unobservable InputMinimumMaximumWeighted AverageMinimumMaximumWeighted Average
Discount rate5.0 %15.0 %15.0 %5.0 %15.0 %15.0 %
Loss rate5.8 %34.1 %17.6 %5.8 %34.1 %19.5 %
Prepayment rate0.0 %39.0 %13.3 %0.0 %40.0 %9.4 %

Financial Assets and Liabilities Not Recorded at Fair Value

The Company believes that the carrying amount of cash, cash equivalents and restricted cash, fees and other receivables, accounts payables and other current liabilities approximate their fair value due to the short-term maturities of these instruments.

The below tables contain information about assets that are not measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets:
Cash, cash equivalents and restricted cash$242,033 $242,033 $— $— $242,033 
Fees and other receivables149,184 — 78,499 70,684 149,183 
Investments in other loans and receivables
1,765 — — 1,765 1,765 
Liabilities:
Long-term debt
$314,547 $— $— $346,702$346,702
Exchangeable notes
147,526 — 283,462 — 283,462 
Secured borrowing
265,557 — — 269,706 269,706 
December 31, 2024
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets:
Cash, cash equivalents and restricted cash$226,518 $226,518 $— $— $226,518 
Fees and other receivables (1)
127,114 — 63,143 63,971 127,114 
Investments in other loans and receivables
4,893 — — 4,893 4,893 
Liabilities:
Long-term debt
$321,317 $— $— $366,396 $366,396 
Exchangeable notes146,342 — 163,360 — 163,360 
Secured borrowing
176,089 — — 177,554 177,554 
 
(1) Accrued interest receivable of $14.3 million, previously reported within “Fee and other receivables” as of December 31, 2024, has been reclassified to “Investment in loans and securities” to conform to the current period’s presentation.