Other Gains and Charges

3 Months Ended

Mar. 31, 2026

Unusual or Infrequent Items, or Both [Abstract]

Acima Holdings Acquisition. On February 17, 2021, we completed the acquisition of Acima Holdings, a leading provider of virtual lease-to-own solutions. The fair value of assets acquired as part of the transaction included $520 million in intangible assets and $170 million in developed technology. During the three months ended March 31, 2026 and 2025, we recognized approximately $11.0 million and $10.9 million, respectively, in amortization expense, related to acquired intangible assets. We also recognized approximately $4.0 million in incremental depreciation expense related to acquired technology assets during both the three months ended March 31, 2026 and 2025. Depreciation expense for technology assets is reported under our Corporate segment.

Brigit Acquisition. As described in Note 2, on January 31, 2025, we completed the acquisition of Brigit, a leading holistic financial health technology company. Included in the aggregate consideration issued to the former owners of Brigit were 1,313,331 shares, valued at $39.1 million, issued under restricted stock agreements and subject to vesting conditions, which will be recognized as stock compensation expense over the vesting term, in accordance with ASC Topic 718, “Stock-based Compensation”. During the three months ended March 31, 2026 and 2025, we recognized approximately $4.7 million and $4.1 million, respectively, in stock compensation expense related to these restricted stock agreements, in addition to $5.5 million and $1.1 million, respectively, related to Brigit's Replacement Awards and other agreement compensation. Stock-based and other acquisition-related compensation expense associated with the Brigit acquisition is reported under our Corporate segment. See Note 2 and Note 10 for additional information.

The fair value of assets acquired as part of the transaction included $152.3 million in intangible assets and $65.1 million in developed technology. During the three months ended March 31, 2026 and 2025, we recognized approximately $3.9 million and $2.6 million, respectively, in amortization expense related to acquired intangible assets. We also recognized approximately $2.3 million and $1.6 million in incremental depreciation expense related to acquired technology assets during the three months ended March 31, 2026 and 2025, respectively. Depreciation expense for technology assets is reported under our Corporate segment.

For the three months ended March 31, 2025, we recognized approximately $6.2 million in transaction costs associated with the closing of the transaction, reported under our Corporate segment.

Legal Matters. As disclosed further in Note 11 in this Quarterly Report on Form 10-Q and as previously disclosed, we are currently party to a filed regulatory lawsuit with the New York Attorney General, as well as a multistate and District of Columbia regulatory investigation by attorneys’ general offices, none of which we believe are representative of historical regulatory matters that arise in the ordinary course of our business. These matters relate to lease-to-own transactions for our Acima subsidiary, which was acquired in 2021. We were also party to a recently settled certified class action brought on behalf of certain individuals who entered into rental purchase agreements and paid certain fees with the Company’s former Acceptance Now business in the state of California, and we were party to a recently settled patent infringement lawsuit. During the three months ended March 31, 2026 and 2025, we recorded estimated legal accruals of $3.5 million and $10.0 million, respectively, based on the then-current status of our legal matters, including the foregoing matters, and incurred related litigation and defense

expenses of $0.5 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively. Legal accruals for litigation matters and related defense expenses are reported under our Corporate segment. We will continue to evaluate and modify our estimated legal accruals as appropriate in future periods based on future developments.

Stock Award Letter Agreement. On April 3, 2024, we entered into a letter agreement with the Company’s former Chief Executive Officer as disclosed in our Current Report on Form 8-K dated as of April 5, 2024. The terms of the letter agreement included special provisions for his outstanding restricted stock awards vesting at various times through February 2027, which resulted in the acceleration of stock compensation expense for those awards in accordance with ASC Topic 718, “Stock-based Compensation”. Accelerated stock compensation expense recognized for the three months ended March 31, 2025 due to this letter agreement was approximately $1.6 million. Stock-based compensation expense is reported under our Corporate segment.

Activity with respect to other gains and charges is summarized in the below table:


	Three Months Ended March 31,
(in thousands)		2026		2025
Acima acquired assets depreciation and amortization		$	14,944	$	14,900
Brigit acquired assets depreciation and amortization		6,216		4,144
Brigit replacement awards and other compensation		5,495		1,095
Brigit equity consideration vesting		4,716		4,059
Legal matters		4,053		10,645
Labor reduction cost		1,659		—
Asset impairments and disposals		1,505		—
Brigit transaction costs		—		6,218
Accelerated stock compensation		—		1,599
Other		(165)		637
Total other gains and charges		$	38,423	$	43,297