The Company provides retail financial services to customers of its dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to dealer sales of motorcycles to retail customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts.

The Company offers wholesale financing to its dealers in the U.S. and Canada. Wholesale finance receivables are related primarily to the Company's sale of motorcycles, related parts and accessories and apparel to dealers. Wholesale loans to dealers are generally secured by financed inventory or property.

•Sale of Securitization Beneficial Interests: In the third quarter of 2025, the Company sold 95% of its residual interests in retail finance receivables that were previously transferred to certain SPEs through on-balance sheet asset-backed securitization transactions to the two counterparties. The impacts of this component of the transaction are discussed more fully within this Note, as well as in Notes 6, 10 and 11 of the Notes to Consolidated financial statements.

•Sale of Retail Finance Receivables: In the third quarter of 2025, the Company agreed to sell the majority of its retail finance receivables to the two counterparties. Accordingly, the Company reclassified those retail finance receivables at the time of the agreement to Finance receivables held for sale, net on the Consolidated balance sheets, which resulted in a benefit in the third quarter of 2025 from the release of the allowance for credit losses on this portfolio of retail finance receivables as discussed more fully within this Note. In October 2025, the Company completed the sale of these retail finance receivables. In order to facilitate the sale of the remaining finance receivables that were previously subject to on-balance sheet asset-backed financing as described in Note 10, in advance of the sale of retail finance receivables, the Company redeemed, in full, the related asset-backed debt associated with the asset-backed securitizations, asset-backed U.S. commercial paper conduit facility, and asset-backed Canadian commercial paper conduit facility.

•Sale of Future Retail Finance Receivable Originations: In October 2025, the Company completed the closing of its agreement to sell approximately two-thirds of future retail loan originations over the next five years to the two counterparties (Forward Flow Agreement). The Company expects HDFS will continue to service the future retail loan originations it sells to the counterparties and earn a loan servicing fee. This component of the transaction did not have any financial statement impact in the third quarter of 2025.

•Equity Investment in HDFS: During the fourth quarter, each of the counterparties paid $23 million cash to acquire 4.9% of HDFS based on a multiple of approximately 1.75x HDFS's post-transaction equity carrying value for a total of 9.8% of HDFS. Seven years after closing the transaction or in the event of a change of control of HDI or HDFS, each counterparty will have the right to exchange its HDFS ownership interest for Harley-Davidson common stock. Three years after closing the transaction, the Company has the right to repurchase the counterparties' ownership interest in HDFS using cash that would otherwise be available to the Company in the form of a dividend from HDFS; however, the Company may not purchase any more than one-third of the counterparties' post-closing HDFS

ownership in an individual year. As a result of the counterparties' acquisition of HDFS stock, the Company will have a non-controlling interest that will participate in 9.8% of HDFS's earnings. This component of the transaction did not have any financial statement impact in the third quarter of 2025.

Finance receivables held for investment, net includes both retail and wholesale finance receivables, including amounts held by consolidated VIEs, which management has the intent and ability to hold. Finance receivables held for investment are recorded in the financial statements at amortized cost net of an allowance for credit losses as appropriate.

Finance receivables held for sale, net includes retail finance receivables that management intends to sell. When finance receivables are reclassified to held for sale from held for investment status, the previously recorded allowance for credit losses associated with the finance receivables is released and the finance receivables are held at the lower of amortized cost or fair value. If fair value is lower than amortized cost, a valuation allowance is recorded through Financial services revenue on the Consolidated statements of operations. The valuation allowance is updated each period to reflect the difference between amortized cost and the estimated selling price of the receivables.

Amortized cost for finance receivables held for investment and held for sale includes the principal outstanding, accrued interest, and deferred loan fees and costs. Deferred loan fee and cost amortization associated with loans held for investment is included within Financial services revenue on the Consolidated statements of operations. Amortization of deferred loan fees and costs is terminated at the time a loan is reclassified to held for sale status and any remaining deferred balances are included in any subsequent gain or loss on sale of the associated finance receivables.

As a result of the HDFS Transaction, $4.08 billion of the Company's retail finance receivables as of September 30, 2025 were reclassified as held for sale. The allowance for credit losses on this portfolio of retail finance receivables was released in conjunction with the reclassification from held for investment to held for sale status, resulting in a benefit to the provision expense of $338.2 million. In addition, $75.5 million was released from the allowance for credit losses and included in the gain on the sale of securitization beneficial interests during the three months ended September 30, 2025. The release of the allowance for credit losses resulted in an asset balance in the retail allowance for credit losses as estimated recoveries from retail finance receivables previously charged-off exceeded the remaining allowance for credit losses on loans held for investment.

Finance receivables held for investment, net were as follows (in thousands):


	September 30, 2025		December 31, 2024		September 30, 2024
Retail finance receivables	$	704,294	$	6,681,106	$	6,961,975
Wholesale finance receivables	1,166,354		1,008,371		1,238,324
	1,870,648		7,689,477		8,200,299
Recovery (allowance) for credit losses	12,901		(401,183)		(399,912)
	$	1,883,549	$	7,288,294	$	7,800,387

The Company's allowance for credit losses reflects expected lifetime credit losses, net of expected recoveries, on its finance receivables held for investment. Based on differences in the nature of the finance receivables held for investment and the underlying methodology for calculating the allowance for credit losses, the Company segments its finance receivables held for investment into the retail and wholesale portfolios. The Company further disaggregates each portfolio by credit quality indicators. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit quality indicators for each portfolio.

The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes weighted-average remaining maturity and vintage-based loss forecast methodologies. Vintage-based forecasts include decompositions for probability of default, exposure at default, attrition rate, and recovery balance rate. Reasonable and supportable economic forecasts for a one- or two-year period are incorporated into the methodologies to reflect the estimated impact of changes in future economic conditions, such as unemployment rates, household obligations or other relevant factors, over the reasonable and supportable period. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience immediately or using a mean-reversion process over a three-year period. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors.

risk characteristics. The Company individually evaluates loans that do not share risk characteristics. Loans identified as those for which foreclosure is probable are classified as Non-Performing, and a specific allowance for credit losses is established when appropriate. The specific allowance is determined based on the amortized cost of the related finance receivable and the estimated fair value of the collateral, less selling costs and the cash that the Company expects to receive. Finance receivables in the wholesale portfolio not individually assessed are aggregated, based on similar risk characteristics, according to the Company’s internal risk rating system and measured collectively. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past credit loss experience, reasonable and supportable economic forecasts, and the value of the underlying collateral and expected recoveries.

The Company considers various third-party economic forecast scenarios as part of estimating the allowance for expected credit losses and applies a probability-weighting to those economic forecast scenarios. Each quarter, the Company's outlook on economic conditions impacts the Company's retail and wholesale estimates for expected credit losses. At the end of the third quarter of 2025, the Company's probability weighting of its economic forecast scenarios was weighted towards more pessimistic scenarios given continued challenging macro-economic conditions including a persistently high interest rate environment, ongoing elevated inflation levels, and muted consumer confidence.

Additionally, the historical experience incorporated into the portfolio-specific models does not fully reflect the Company's comprehensive expectations regarding the future. As such, the Company incorporated qualitative factors to establish an appropriate allowance for credit losses balance. These factors may include motorcycle recovery value considerations, delinquency adjustments, specific problem loan trends, or changes in other portfolio-specific loan characteristics as appropriate.

Due to the use of projections and assumptions in estimating the losses, the amount of losses incurred by the Company in either portfolio could differ from the amounts estimated. Further, the Company’s allowance for credit losses incorporates known conditions at the balance sheet date and the Company’s expectations surrounding the economic forecasts. The Company will continue to monitor future economic trends and conditions. Expectations surrounding the Company's economic forecasts may change in future periods as additional information becomes available.


	Three months ended September 30, 2025						Nine months ended September 30, 2025
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	374,828	$	24,465	$	399,293	$	378,373	$	22,810	$	401,183
Provision for credit losses	(307,162)		5,663		(301,499)		(206,386)		7,959		(198,427)
Charge-offs	(44,555)		(4,701)		(49,256)		(183,395)		(5,342)		(188,737)
Recoveries	14,108		—		14,108		48,627		—		48,627
Sale of Residual Interest in Securitizations	(75,547)		—		(75,547)		(75,547)		—		(75,547)
Balance, end of period	$	(38,328)	$	25,427	$	(12,901)	$	(38,328)	$	25,427	$	(12,901)
	Three months ended September 30, 2024						Nine months ended September 30, 2024
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	377,826	$	15,691	$	393,517	$	367,037	$	14,929	$	381,966
Provision for credit losses	55,831		2,146		57,977		172,109		2,908		175,017
Charge-offs	(65,029)		—		(65,029)		(207,109)		—		(207,109)
Recoveries	13,447		—		13,447		50,038		—		50,038
Balance, end of period	$	382,075	$	17,837	$	399,912	$	382,075	$	17,837	$	399,912

The Company manages retail credit risk through its credit approval process and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. For the Company’s U.S. and Canadian retail finance receivables, the Company determines the credit quality indicator for each loan at origination and does not update the credit quality indicator subsequent to the loan origination date.

As loan performance by credit quality indicator differs between the U.S. and Canadian retail loans, the Company’s credit quality indicators vary for the two portfolios. For U.S. retail finance receivables, those with a FICO score of 740 or above at origination are generally considered super prime, loans with a FICO score between 640 and 740 are generally categorized as prime, and loans with FICO score below 640 are generally considered sub-prime. For Canadian retail finance receivables, those with a FICO score of 700 or above at origination are generally considered super prime, loans with a FICO score between 620 and 700 are generally categorized as prime, and loans with FICO score below 620 are generally considered sub-prime.

The amortized cost of the Company's U.S. and Canadian retail finance receivables held for investment, along with total retail gross charge-offs by vintage and credit quality indicator were as follows (in thousands):


	September 30, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
U.S. Retail:
Super prime	$	144,780	$	120,456	$	61,502	$	19,838	$	12,198	$	2,011	$	360,785
Prime	125,804		104,939		60,992		29,368		13,633		2,767		337,503
Sub-prime	1,601		886		830		808		710		1,171		6,006






	$	272,185	$	226,281	$	123,324	$	50,014	$	26,541	$	5,949	$	704,294
Gross charge-offs for the nine months ended September 30, 2025:
U.S. Retail	$	2,771	$	47,626	$	53,155	$	41,175	$	21,364	$	13,560	$	179,651
Canadian Retail	126		996		991		821		383		427		3,744
	$	2,897	$	48,622	$	54,146	$	41,996	$	21,747	$	13,987	$	183,395


	December 31, 2024
	2024		2023		2022		2021		2020		2019 & Prior		Total
U.S. Retail:
Super prime	$	1,040,491	$	694,941	$	449,697	$	206,974	$	67,668	$	28,606	$	2,488,377
Prime	1,042,910		821,719		659,000		363,507		141,495		82,771		3,111,402
Sub-prime	318,689		224,656		180,048		119,457		58,297		47,624		948,771
	2,402,090		1,741,316		1,288,745		689,938		267,460		159,001		6,548,550
Canadian Retail:
Super prime	36,011		29,098		17,468		8,330		3,179		1,096		95,182
Prime	9,111		8,687		6,724		4,033		2,212		1,524		32,291
Sub-prime	1,701		1,229		972		435		462		284		5,083
	46,823		39,014		25,164		12,798		5,853		2,904		132,556
	$	2,448,913	$	1,780,330	$	1,313,909	$	702,736	$	273,313	$	161,905	$	6,681,106
Gross charge-offs for the year ended December 31, 2024:
U.S. Retail	$	18,322	$	92,489	$	90,023	$	47,678	$	19,628	$	17,143	$	285,283
Canadian Retail	241		1,474		1,398		755		391		464		4,723
	$	18,563	$	93,963	$	91,421	$	48,433	$	20,019	$	17,607	$	290,006


	September 30, 2024
	2024		2023		2022		2021		2020		2019 & Prior		Total
U.S. Retail:
Super prime	$	931,374	$	769,173	$	507,694	$	241,713	$	84,111	$	39,590	$	2,573,655
Prime	927,821		901,954		730,870		410,721		166,169		106,766		3,244,301
Sub-prime	281,501		249,447		200,838		134,880		67,592		59,151		993,409
	2,140,696		1,920,574		1,439,402		787,314		317,872		205,507		6,811,365
Canadian Retail:
Super prime	35,280		34,382		21,186		10,573		4,410		1,702		107,533
Prime	9,200		10,340		8,054		4,812		2,782		2,124		37,312
Sub-prime	1,731		1,457		1,132		490		564		391		5,765
	46,211		46,179		30,372		15,875		7,756		4,217		150,610
	$	2,186,907	$	1,966,753	$	1,469,774	$	803,189	$	325,628	$	209,724	$	6,961,975
Gross charge-offs for the nine months ended September 30, 2024:
U.S. Retail	$	4,680	$	65,972	$	67,945	$	36,365	$	15,270	$	13,485	$	203,717
Canadian Retail	87		1,033		976		616		329		351		3,392
	$	4,767	$	67,005	$	68,921	$	36,981	$	15,599	$	13,836	$	207,109

Information about the asset performance of the total portfolio of retail loans serviced by the Company ("Managed Portfolio"), including receivables retained or consolidated as part of on-balance sheet VIEs (collectively, the "Owned Portfolio"), along with receivables included in off-balance sheet VIEs ("Off-Balance Sheet Portfolio"), is provided in the table below (in thousands):


	Principal Balances		Credit Losses
	30+ Day Delinquent		Three months ended		Nine Months Ended
	September 30, 2025		September 30, 2025
Owned portfolio	$	242,408	$	30,341	$	135,056
Off-balance sheet portfolio	32,972		1,717		1,717
Managed portfolio	$	275,380	$	32,058	$	136,773

The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon the Company’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. Additionally, the Company classifies dealers identified as those in which foreclosure is probable as Non-Performing. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated by the Company on a quarterly basis.

The amortized cost of the Company's wholesale finance receivables, by vintage and credit quality indicator, was as follows (in thousands):


	September 30, 2025
	2025		2024		2023		2022		2021		2020 & Prior		Total
Non-Performing	$	933	$	1,090	$	282	$	—	$	—	$	—	$	2,305
Doubtful	15,333		7,473		1,070		20		—		—		23,896
Substandard	1,831		1,796		—		—		—		—		3,627
Special Mention	16,109		4,171		175		—		59		—		20,514
Medium Risk	36,215		4,268		752		—		—		—		41,235
Low Risk	921,295		103,843		13,101		34,350		1,176		1,012		1,074,777
	$	991,716	$	122,641	$	15,380	$	34,370	$	1,235	$	1,012	$	1,166,354
Gross charge-offs for the nine months ended September 30, 2025:
Wholesale	$	2,401	$	506	$	134	$	—	$	—	$	2,301	$	5,342


	December 31, 2024
	2024		2023		2022		2021		2020		2019 & Prior		Total
Non-Performing	$	6,430	$	4,702	$	129	$	—	$	—	$	2	$	11,263
Doubtful	25,827		3,869		139		—		—		8,196		38,031
Substandard	14,470		2,928		—		—		—		—		17,398
Special Mention	3,162		362		19		—		—		—		3,543
Medium Risk	1,471		271		—		—		—		—		1,742
Low Risk	808,771		83,611		38,815		1,702		3,358		137		936,394
	$	860,131	$	95,743	$	39,102	$	1,702	$	3,358	$	8,335	$	1,008,371
Gross charge-offs for the year ended December 31, 2024:
Wholesale	$	709	$	710	$	42	$	—	$	—	$	1	$	1,462


	September 30, 2024
	2024		2023		2022		2021		2020		2019 & Prior		Total
Non-Performing	$	1,986	$	2,134	$	122	$	—	$	—	$	2	$	4,244
Doubtful	9,939		4,043		129		—		—		5		14,116
Substandard	14,669		3,391		34		—		—		—		18,094
Special Mention	4,527		1,240		58		—		—		—		5,825
Medium Risk	615		146		—		—		—		—		761
Low Risk	1,008,975		134,065		38,019		2,567		3,500		8,158		1,195,284
	$	1,040,711	$	145,019	$	38,362	$	2,567	$	3,500	$	8,165	$	1,238,324
Gross charge-offs for the nine months ended September 30, 2024:
Wholesale	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables at amortized cost, excluding accrued interest, are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. The Company reverses accrued interest related to charged-off accounts against HDFS interest income when the account is charged-off. The Company reversed $7.1 million and $6.9 million of accrued interest against HDFS interest income during the three months ended September 30, 2025 and September 30, 2024, respectively, and $24.7 million and $24.0 million during the nine months ended September 30, 2025 and September 30, 2024, respectively. All retail finance receivables accrue interest until either collected or charged-off. Due to the timely write-off of accrued interest, the Company made the election provided under Accounting Standards Codification (ASC) Topic 326, Financial Instruments - Credit Losses to exclude accrued interest from its allowance for credit losses. Accordingly, as of September 30, 2025, December 31, 2024, and September 30, 2024, all retail finance receivables were accounted for as interest-earning receivables.

Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once the Company determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the Company determines that foreclosure is probable, and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Once an account is charged-off, the Company will reverse the associated accrued interest against HDFS interest income. Due to the timely write-off of accrued interest, the allowance for credit losses excludes accrued interest for the wholesale portfolio. The Company reversed $1.8 million and $1.9 million of accrued interest related to the charge-off of Non-Performing dealer loans during the three and nine months ended September 30, 2025, respectively. There were no charged off accounts for the three and nine months ended September 30, 2024, and as such, the Company did not reverse any wholesale accrued interest during that period.

Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):


	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2025		September 30, 2025		Recognized
Wholesale:
No related allowance recorded	$	7,510	$	184	$	986
Related allowance recorded	3,753		2,121		56
	$	11,263	$	2,305	$	1,042

	Amortized Cost		Amortized Cost		Interest Income
	January 1, 2024		September 30, 2024		Recognized
Wholesale:
No related allowance recorded	$	—	$	2,423	$	123
Related allowance recorded	—		1,821		123
	$	—	$	4,244	$	246

The aging analysis of the Company's finance receivables held for investment was as follows (in thousands):


	September 30, 2025
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	693,233	$	6,774	$	1,292	$	2,995	$	—	$	11,061	$	704,294
Wholesale	1,160,152		3,041		563		1,932		666		6,202		1,166,354
	$	1,853,385	$	9,815	$	1,855	$	4,927	$	666	$	17,263	$	1,870,648

	December 31, 2024
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	6,368,447	$	178,752	$	69,257	$	64,650	$	—	$	312,659	$	6,681,106
Wholesale	1,002,584		3,463		718		1,080		526		5,787		1,008,371
	$	7,371,031	$	182,215	$	69,975	$	65,730	$	526	$	318,446	$	7,689,477

	September 30, 2024
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and Still Accruing		Greater Than 90 Days Past Due and Not Accruing		Total Past Due		Total Finance Receivables
Retail	$	6,679,994	$	163,963	$	61,542	$	56,476	$	—	$	281,981	$	6,961,975
Wholesale	1,236,124		832		777		89		502		2,200		1,238,324
	$	7,916,118	$	164,795	$	62,319	$	56,565	$	502	$	284,181	$	8,200,299