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FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

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 1		Level 2		Level 3		Total
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 1		Level 2		Level 3		Total
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.

Schedule of Warrant Liability Activity

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 value	479
Balance as of June 30, 2025	$	2,471


	Six Months Ended June 30, 2025
Balance as of December 31, 2024	$	893
Change in fair value	1,578
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 value	329
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

Schedule of Level 3 Roll Forward

The following table presents activities of investments in securities for which we elected the fair value option. See Note 10 for the assumptions used in our fair value model:


	Three Months Ended June 30,				Six Months Ended June 30,
Investments in securities under the fair value option	2025		2024		2025		2024
At the beginning of period	$	—	$	—	$	—	$	—
Purchases	21,026		—		21,026		—

Total gains for the period included in other expenses, net	11,862		—		11,862		—
At the end of period	$	32,888	$	—	$	32,888	$	—

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,
	2025		2024		2025		2024
Balance, beginning of period	$	641,617	$	825,121	$	663,189	$	626,368
Transfer from Level 2	—		—		—		10,469
Additions	182,259		146,821		248,978		406,696
Cash received	(60,706)		(19,559)		(108,016)		(42,572)
Gain on sale of Investments in loans and securities	2,699		—		8,593		—
Change in accrued interest on investments	5,659		—		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

Schedule of Significant Unobservable Inputs

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 Input	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rate	5.0	%	15.0	%	15.0	%	5.0	%	15.0	%	15.0	%
Loss rate	5.8	%	34.1	%	17.6	%	5.8	%	34.1	%	19.5	%
Prepayment rate	0.0	%	39.0	%	13.3	%	0.0	%	40.0	%	9.4	%

Schedule of Financial Assets and Liabilities Not Recorded at Fair Value

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 1		Level 2		Level 3		Total
Assets:
Cash, cash equivalents and restricted cash	$	242,033	$	242,033	$	—	$	—	$	242,033
Fees and other receivables	149,184		—		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 1		Level 2		Level 3		Total
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 notes	146,342		—		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.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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