37 unchanged sentences
The recent growth of our investments in private label credit and general purpose credit card receivables may not be indicative of our ability to grow such receivables in the future.
−Removed: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $6,724.9 million at March 31, 2026, from $2,706.3 million at March 31, 2025.
−Removed: Mercury accounted for 3,078.7 of the current quarter's receivable.
+Added: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $6,891.2 million at June 30, 2026, from $3,046.5 million at June 30, 2025.
+Added: Mercury accounted for $3,054.3 million of the current quarter's receivables.
The amount of such receivables has fluctuated significantly over the course of our operating history.
2 unchanged sentences
Reliance upon relationships with a few large retailers in the private label credit operations may adversely affect our revenues and operating results from these operations.
−Removed: Our five largest retail partners accounted for 84% of our outstanding private label credit receivables as of March 31, 2026.
+Added: Our five largest retail partners accounted for 85% of our outstanding private label credit receivables as of June 30, 2026.
Although we are adding new retail partners on a regular basis, it is likely that we will continue to derive a significant portion of this operations’ receivables base and corresponding revenue from a relatively small number of partners in the future.
88 unchanged sentences
These include the risks that we will not be able to integrate and operate successfully new businesses, that we will have to incur substantial indebtedness and increase our leverage in order to pay for the acquisitions, that we will be exposed to, and have to comply with, different regulatory regimes and that we will not be able to apply our traditional analytical framework (which is what we expect to be able to do) in a successful and value-enhancing manner.
−Removed: Failure to realize the expected benefits of our acquisition of Mercury could adversely affect our business and the value of our securities.
+Added: Failure to realize the expected benefits of our acquisition of Mercury or to integrate successfully Mercury's business could adversely affect our business and the value of our securities.
Although we expect significant benefits to result from the acquisition of Mercury, we may not actually realize any of them or realize them within the anticipated timeframe.
3 unchanged sentences
integrating financial forecasting and controls, procedures and reporting cycles;
−Removed: consolidating and integrating corporate, information technology, finance, compliance and administrative infrastructures;
+Added: consolidating and integrating corporate, information technology, finance, compliance and administrative infrastructures, including the migration of Mercury's cardholder data to our credit card system of record;
coordinating marketing efforts to effectively position our capabilities;
4 unchanged sentences
Risks Related to Our Financial Reporting and Accounting
−Removed: We recently remediated a material weakness in our internal control over financial reporting.
+Added: We have remediated a material weakness in our internal control over financial reporting.
If we experience additional material weaknesses in the future, our business may be harmed.
40 unchanged sentences
Our existing and future levels of indebtedness could adversely affect our financial health, our ability to obtain financing in the future, our ability to react to changes in our business and our ability to fulfill our obligations under the existing indebtedness.
−Removed: As of December 31, 2025, we had $934.9 million of recourse indebtedness outstanding and $5,629.6 million of indebtedness outstanding under warehouse facilities and asset backed securities, all of which is non-recourse indebtedness.
+Added: As of June 30, 2026, we had $833.8 million of recourse indebtedness outstanding and $5,483.9 million of indebtedness outstanding under warehouse facilities and asset backed securities, all of which is non-recourse indebtedness.
Our level of indebtedness could:
30 unchanged sentences
There is a risk that we would not be able to enter into similar outsourcing arrangements with alternate providers on terms that we consider favorable or in a timely manner without disruption of our business.
+Added: Furthermore, we are currently transitioning to a new system provider for our acquired Mercury portfolio.
+Added: This conversion could cause service disruptions or other operational challenges.
Failure to keep up with the rapid technological changes in financial services and e-commerce could harm our business.
83 unchanged sentences
Our business interruption insurance may not be sufficient to compensate us for losses that may result from interruptions in our service as a result of system failures.
+Added: Furthermore, we are currently transitioning to a new system provider for our acquired Mercury portfolio.
+Added: This conversion could cause service disruptions or other operational challenges.
Climate change and related regulatory responses may impact our business.
11 unchanged sentences
We face the risk that customers will fail to repay their loans in full.
−Removed: Through our analysis of loan performance, delinquency data, charge-off data, economic trends and the potential effects of those economic trends on consumers, we establish allowance for credit losses as an estimate of the expected credit losses inherent within those loans, interest and fees receivable that we do not report at fair value.
+Added: Through our analysis of loan performance, delinquency data, charge-off data, economic trends and the potential effects of those economic trends on consumers, we establish allowance for credit losses for our Loans at amortized cost as an estimate of the expected credit losses inherent within those loans, interest and fees receivable that we do not report at fair value.
We determine the necessary allowance for credit losses by analyzing some or all of the following attributes unique to each type of receivable pool:
25 unchanged sentences
additions or departures of key personnel;
−Removed: the annual yield from distributions on the Series B preferred stock or interest on the 2026 Senior Notes and the 2029 Senior Notes as compared to yields on other financial instruments; an
+Added: the annual yield from distributions on the Series B preferred stock or interest on the 2026 Senior Notes, 2029 Senior Notes and the 2030 Senior Notes as compared to yields on other financial instruments; an
government reactions to epidemics and global pandemics (such as the COVID-19 pandemic).
42 unchanged sentences
The rights of holders of the Series B preferred stock to participate in the distribution of our assets will rank junior to the prior claims of our current and future creditors, the Series A preferred stock and any future series or class of preferred stock we may issue that ranks senior to the Series B preferred stock.
−Removed: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of March 31, 2026, we had outstanding 400,000 shares of Series A preferred stock and 3,584,646 shares of Series B preferred stock.
−Removed: As of March 31, 2026, we could issue up to 6,015,354 additional shares of preferred stock.
+Added: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of June 30, 2026, we had outstanding 400,000 shares of Series A preferred stock and 3,584,646 shares of Series B preferred stock.
+Added: As of June 30, 2026, we could issue up to 6,015,354 additional shares of preferred stock.
In addition, the Series B preferred stock effectively ranks junior to all existing and future indebtedness and other liabilities of (as well as any preferred equity interests held by others in) our existing subsidiaries and any future subsidiaries.
12 unchanged sentences
We are allowed to issue additional shares of Series B preferred stock and additional series of preferred stock that would rank on a parity with the Series B preferred stock as to dividend payments and rights upon our liquidation, dissolution or winding up of our affairs pursuant to our Articles of Incorporation and the Amended and Restated Articles of Amendment Establishing the Series B preferred stock without any vote of the holders of the Series B preferred stock.
−Removed: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of March 31, 2026, we had outstanding 400,000 shares of Series A preferred stock and 3,584,646 shares of Series B preferred stock.
−Removed: As of March 31, 2026, we could issue up to 6,015,354 additional shares of preferred stock.
+Added: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of June 30, 2026, we had outstanding 400,000 shares of Series A preferred stock and 3,584,646 shares of Series B preferred stock.
+Added: As of June 30, 2026, we could issue up to 6,015,354 additional shares of preferred stock.
The issuance of additional shares of Series B preferred stock and additional series of parity preferred stock could have the effect of reducing the amounts available to the holders of Series B preferred stock upon our liquidation or dissolution or the winding up of our affairs.
101 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.