20. Segment Reporting
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different management expertise, technology, and marketing strategies. During the fourth quarter of 2025, the Company completed its periodic assessment of operating segments and identified the following operating segments:
•Home Finance – this segment provides home ownership services such as purchase mortgages, refinance mortgages, and home equity lines of credit and closed-end second lien loans for home purchase and refinance, including cash-out refinance and debt consolidation as well as mortgage related product offerings such as real estate services and insurance services, which includes title insurance. The products, services and customers are similar; and the platform and operations at the consolidated level provide the foundation for delivering home ownership products and services.
•Banking – this segment provides a range of financial products and services to consumers and small businesses through Birmingham Bank. The Company acquired Birmingham Bank, a U.K. based regulated bank, in April 2023.
Each of the above segments reports to the Company’s CODM for segment reporting purposes. The prior year period presented was recast to reflect the impact of the preceding segment reclassification.
The tables below disclose the Company’s revenues and significant expenses by segment (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2025 |
| Home Finance | | Banking | | Consolidated |
| Revenues: | | | | | |
| Gain on loans, net | $ | 136,148 | | | $ | — | | | $ | 136,148 | |
| Other revenue | 11,101 | | | 198 | | | 11,299 | |
| Net interest income | | | | | |
| Interest income | 31,860 | | | 28,409 | | | 60,269 | |
| Interest expense | (21,847) | | | (20,997) | | | (42,844) | |
| Net interest income/(loss) | 10,013 | | | 7,412 | | | 17,425 | |
| Total net revenues | 157,262 | | | 7,610 | | | 164,872 | |
| Expenses: | | | | | |
| Compensation and benefits | 161,503 | | | 12,723 | | | 174,226 | |
| General and administrative | 41,602 | | | 3,721 | | | 45,323 | |
| Technology | 25,772 | | | 2,102 | | | 27,874 | |
| Marketing and advertising | 38,293 | | | 63 | | | 38,356 | |
| Loan origination expense | 14,499 | | | — | | | 14,499 | |
| Depreciation and amortization | 13,250 | | | 819 | | | 14,069 | |
| Other expenses/(income) | 2,246 | | | 14,098 | | | 16,344 | |
| | | | | |
| | | | | |
| Income tax expense (benefit) | 525 | | | (472) | | | 53 | |
| Net loss | $ | (140,428) | | | $ | (25,444) | | | $ | (165,872) | |
| | | | | |
| Total Assets | $ | 640,556 | | | $ | 864,878 | | | $ | 1,505,434 | |
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2024 |
| Home Finance | | Banking | | Consolidated |
| Revenues: | | | | | |
| Gain on loans, net | $ | 78,098 | | | $ | — | | | $ | 78,098 | |
| Other revenue | 12,318 | | | 570 | | | 12,888 | |
| Net interest income | | | | | |
| Interest income | 33,537 | | | 5,453 | | | 38,990 | |
| Interest expense | (18,927) | | | (2,561) | | | (21,488) | |
| Net interest income/(loss) | 14,610 | | | 2,892 | | | 17,502 | |
| Total net revenues | 105,026 | | | 3,462 | | | 108,488 | |
| Expenses: | | | | | |
| Compensation and benefits | 131,103 | | | 9,986 | | | 141,089 | |
| General and administrative | 48,359 | | | 3,871 | | | 52,230 | |
| Technology | 23,459 | | | 2,651 | | | 26,110 | |
| Marketing and advertising | 33,982 | | | 2 | | | 33,984 | |
| Loan origination expense | 9,864 | | | — | | | 9,864 | |
| Depreciation and amortization | 32,752 | | | 475 | | | 33,227 | |
| Other expenses/(income) | 15,389 | | | 2,035 | | | 17,424 | |
| | | | | |
| | | | | |
| Income tax expense (benefit) | 981 | | | (131) | | | 850 | |
| Net loss | $ | (190,863) | | | $ | (15,427) | | | $ | (206,290) | |
| | | | | |
| Total Assets | $ | 712,159 | | | $ | 200,898 | | | $ | 913,057 | |
The tables below represents the Company’s revenues by geographic location (in thousands):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| | | |
| United States | $ | 138,828 | | | $ | 86,652 | |
| International | 26,044 | | | 21,836 | |
| Total net revenues | $ | 164,872 | | | $ | 108,488 | |
Revenues are attributed to geographic locations based on the location in which the Company’s products and services are delivered to customers. The United States was the only country to contribute revenues in excess of 10% of consolidated revenues.
All transactions between reportable segments are eliminated in consolidation.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.