Fair Value
Financial instruments carried at fair value
As of December 31, 2025 and 2024, financial instruments measured at fair value on a recurring basis were as follows (in thousands):
Quoted Prices in Active Markets (Level 1)Other Observable Inputs (Level 2)Total
December 31, 2025
Assets
Government securities$64,934 $— $64,934 
Derivatives (1)
— 3,104 3,104 
Liabilities
Derivatives (1)
— 12,385 12,385 
December 31, 2024
Assets
Government securities$55,762 $— $55,762 
Derivatives (1)
— 10,723 10,723 
Liabilities
Derivatives (1)
— 4,963 4,963 
(1)Fair value of derivatives is estimated using industry standard valuation models, which project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves and other factors.
Financial instruments not carried at fair value
As of December 31, 2025 and 2024, the estimated fair value and carrying amount of financial instruments not carried at fair value were as follows (in thousands):
Estimated Fair Value
Quoted Prices in Active Markets (Level 1)Other Observable Inputs (Level 2)Unobservable Inputs (Level 3)Carrying Value
December 31, 2025
Financial assets
Cash and cash equivalents$104,409 $— $— $104,409 
Finance receivables, net (1)
— — 4,394,028 4,688,024 
Financial liabilities
Interest-bearing deposits (2)
— 106,148 — 106,148 
Revolving lines of credit (3)
— 1,600,530 — 1,600,530 
Term loan (3) (4)
— 460,111 — 460,111 
Senior notes (4) (5)
— 1,652,451 — 1,650,350 
December 31, 2024
Financial assets
Cash and cash equivalents$105,938 $— $— $105,938 
Finance receivables, net (1)
— — 3,523,949 4,140,742 
Financial liabilities
Interest-bearing deposits (2)
— 163,406 — 163,406 
Revolving lines of credit (3)
— 1,569,430 — 1,569,430 
Term loan (3) (4)
— 470,111 — 470,111 
Senior notes (4) (5)
— 1,301,244 — 1,298,000 
(1)Fair value is estimated using the proprietary pricing models the Company utilizes to make portfolio acquisition decisions.
(2)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term deposit periods.
(3)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term interest rate periods.
(4)The carrying amounts and fair values do not include debt issuance costs.
(5)Fair value is based on quoted market prices obtained from secondary market broker quotes.
Due to the inherent uncertainty of determining the fair value of Level 3 financial instruments, the fair value of these instruments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such instruments and may differ materially from the values that may ultimately be received or settled.
Goodwill impairment
During the year ended December 31, 2025, the Company assessed the goodwill in its DBC reporting unit for impairment and determined that the goodwill was fully impaired. The estimated fair value of the DBC reporting unit represents a Level 3 nonrecurring fair value measurement. Refer to Note 4 in these Consolidated Financial Statements for additional information.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Feb 26, 2021
2019Mar 2, 2020
2018Mar 12, 2019
2017Feb 28, 2018
2016Mar 1, 2017
2015Feb 26, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.