What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-31 · 126 added, 116 removed, 1416 unchanged (15% of the section changed)

3 unchanged sentences

(Dollars in millions, except per share data) As of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Cash and cash equivalents $ 15.9 $ 343.7

20 unchanged sentences

Preferred stock, $ .01 par value, 1,000,000 shares authorized, none issued

Common stock, $ .01 par value, 80,000,000 shares authorized, 11,237,396 and 12,048,151 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

Common stock, $ .01 par value, 80,000,000 shares authorized, 11,041,431 and 12,048,151 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Paid-in capital 392.1 335.1

7 unchanged sentences

(Dollars in millions, except per share data) For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

16 unchanged sentences

Total costs and expenses 433.5 443.8 1,328.9 1,458.9

Income (loss) before provision (benefit) for income taxes 117.8 ( 55.3 ) 259.5 31.1

Provision (benefit) for income taxes 30.4 ( 8.2 ) 65.8 13.9

Net income (loss) $ 87.4 $ ( 47.1 ) $ 193.7 $ 17.2

Net income (loss) per share:

Income before provision for income taxes 148.9 106.5 408.4 137.6

Provision for income taxes 40.7 27.7 106.5 41.6

Net income $ 108.2 $ 78.8 $ 301.9 $ 96.0

Net income per share:

Basic $ 9.62 $ 6.42 $ 25.95 $ 7.78

7 unchanged sentences

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Net income (loss) $ 87.4 $ ( 47.1 ) $ 193.7 $ 17.2

Other comprehensive income (loss), net of tax:

Unrealized gain (loss) on securities, net of tax 0.4 — 1.3 ( 0.2 )

Other comprehensive income (loss) 0.4 — 1.3 ( 0.2 )

Comprehensive income (loss) $ 87.8 $ ( 47.1 ) $ 195.0 $ 17.0

Net income $ 108.2 $ 78.8 $ 301.9 $ 96.0

Other comprehensive income, net of tax:

Unrealized gain on securities, net of tax 0.1 2.1 1.4 1.9

Other comprehensive income 0.1 2.1 1.4 1.9

Comprehensive income $ 108.3 $ 80.9 $ 303.3 $ 97.9

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Dollars in millions) For the Three Months Ended June 30, 2025

(Dollars in millions) For the Three Months Ended September 30, 2025

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

9 unchanged sentences

Balance, end of period 11,041,431 $ 0.1 $ 392.1 $ 1,185.3 $ 1.1 $ 1,578.6

(Dollars in millions) For the Three Months Ended June 30, 2024

(Dollars in millions) For the Three Months Ended September 30, 2024

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

1 unchanged sentence

Balance, beginning of period 12,111,128 $ 0.1 $ 313.8 $ 1,242.2 $ ( 1.2 ) $ 1,554.9

Net loss — — — ( 47.1 ) — ( 47.1 )

Net income — — — 78.8 — 78.8

Other comprehensive income — — — — 2.1 2.1

Stock-based compensation — — 10.7 — — 10.7

3 unchanged sentences

Balance, end of period 12,111,600 $ 0.1 $ 324.5 $ 1,321.0 $ 0.9 $ 1,646.5

(Dollars in millions) For the Six Months Ended June 30, 2025

(Dollars in millions) For the Nine Months Ended September 30, 2025

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

5 unchanged sentences

Repurchase of common stock ( 1,089,033 ) — ( 2.7 ) ( 531.3 ) — ( 534.0 )

Restricted stock units settled to common stock 15,339 — — — — —

Restricted stock units settled in common stock 17,194 — — — — —

Stock options exercised 65,119 — 22.0 — — 22.0

Balance, end of period 11,041,431 $ 0.1 $ 392.1 $ 1,185.3 $ 1.1 $ 1,578.6

(Dollars in millions) For the Six Months Ended June 30, 2024

(Dollars in millions) For the Nine Months Ended September 30, 2024

Common Stock Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

11 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) For the Six Months Ended June 30,

(In millions) For the Nine Months Ended September 30,

Cash Flows From Operating Activities:

8 unchanged sentences

Loss on sale of building — 23.7

Other 0.1 0.4

Change in operating assets and liabilities:

46 unchanged sentences

Actual results could differ from those estimates.

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of June 30, 2025, for items that could potentially be recognized or disclosed in these financial statements.

For additional information regarding subsequent events, see Note 16 .

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2025, for items that could potentially be recognized or disclosed in these financial statements.

We did not identify any subsequent events that would require disclosure in or adjustment to the consolidated financial statements.

DESCRIPTION OF BUSINESS

10 unchanged sentences

The following table shows the percentage of Consumer Loans assigned to us with either FICO ® scores below 650 or no FICO ® scores:

For the Three Months Ended June 30, For the Six Months Ended June 30,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

Consumer Loan Assignment Volume 2025 2024 2025 2024

9 unchanged sentences

Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans

September 30, 2023 74.8 % 25.2 % 71.7 % 28.3 %

December 31, 2023 77.2 % 22.8 % 75.0 % 25.0 %

5 unchanged sentences

June 30, 2025 71.6 % 28.4 % 68.3 % 31.7 %

September 30, 2025 73.1 % 26.9 % 70.6 % 29.4 %

(1) Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program.

1 unchanged sentence

In 2025, we expanded Dealer access to the Purchase Program for Consumer Loans to consumers with higher credit ratings.

The increase in the percentage of Purchased Loans in 2025 Consumer Loan assignment volume was primarily related to Consumer Loans assigned under this expanded Dealer access.

The higher percentage of Purchased Loans in 2025 Consumer Loan assignment volume was primarily related to Consumer Loans assigned under this expanded Dealer access.

Portfolio Program

44 unchanged sentences

Cash equivalents consist of readily marketable securities with original maturities at the date of acquisition of three months or less.

As of June 30, 2025 and December 31, 2024, we had $ 69.2 million and $ 342.7 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”).

As of September 30, 2025 and December 31, 2024, we had $ 15.6 million and $ 342.7 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”).

Restricted cash and cash equivalents consist of cash pledged as collateral for secured financings and cash held in a trust for future vehicle service contract claims.

As of June 30, 2025 and December 31, 2024, we had $ 489.0 million and $ 497.0 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC.

As of September 30, 2025 and December 31, 2024, we had $ 478.6 million and $ 497.0 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

1 unchanged sentence

(In millions) As of

June 30, 2025 December 31, 2024 June 30, 2024 December 31, 2023

September 30, 2025 December 31, 2024 September 30, 2024 December 31, 2023

Cash and cash equivalents $ 15.9 $ 343.7 $ 159.7 $ 13.2

94 unchanged sentences

For additional information, see Note 6 .

For the three and six months ended June 30, 2025 and 2024, we did not make any other methodology changes for Loans that had a material impact on our financial statements.

For the three and nine months ended September 30, 2025 and 2024, we did not make any other methodology changes for Loans that had a material impact on our financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

76 unchanged sentences

We are currently evaluating the impact the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures.

Targeted Improvements to the Accounting For Internal-Use Software.

In September 2025, the FASB issued ASU 2025-06, which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40 to better reflect current software development approaches.

Under the current guidance, capitalization of software development costs for internal-use software is required once the preliminary project stage is complete.

Under the new guidance, capitalization will no longer align with the project stage but may begin once (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual periods.

Early adoption is permitted, but we have not yet adopted ASU 2025-06.

The adoption of ASU 2025-06 is expected to change how we account for our internal-use software.

However, we do not believe that its adoption will have a material impact on our consolidated financial statements and related disclosures.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

17 unchanged sentences

A comparison of the carrying amount and estimated fair value of these financial instruments is as follows:

(In millions) As of June 30, 2025 As of December 31, 2024

(In millions) As of September 30, 2025 As of December 31, 2024

Amount Estimated Fair

18 unchanged sentences

The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value:

(In millions) As of June 30, 2025

(In millions) As of September 30, 2025

Level 1 Level 2 Level 3 Total Fair Value

20 unchanged sentences

Restricted securities available for sale consist of the following:

(In millions) As of June 30, 2025

(In millions) As of September 30, 2025

Amortized Cost Gross Unrealized

16 unchanged sentences

The fair value and gross unrealized losses for restricted securities available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

(In millions) Securities Available for Sale with Gross Unrealized Losses as of June 30, 2025

(In millions) Securities Available for Sale with Gross Unrealized Losses as of September 30, 2025

Less than 12 Months 12 Months or More

25 unchanged sentences

(In millions) As of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Contractual Maturity Amortized Cost Estimated Fair

8 unchanged sentences

Loans receivable and allowance for credit losses consist of the following:

(In millions) As of June 30, 2025

(In millions) As of September 30, 2025

Dealer Loans Purchased Loans Total

9 unchanged sentences

A summary of changes in Loans receivable and allowance for credit losses is as follows:

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

(In millions)

28 unchanged sentences

$ 8,805.5 $ 2,758.2 $ 11,563.7 $ ( 3,052.6 ) $ ( 535.6 ) $ ( 3,588.2 ) $ 5,752.9 $ 2,222.6 $ 7,975.5

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

(In millions)

29 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

(In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net

12 unchanged sentences

Balance, end of period $ 8,805.5 $ 2,758.2 $ 11,563.7 $ ( 3,052.6 ) $ ( 535.6 ) $ ( 3,588.2 ) $ 5,752.9 $ 2,222.6 $ 7,975.5

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

(In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net

24 unchanged sentences

(In millions)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

Provision for Credit Losses

5 unchanged sentences

$ 87.6 $ 64.4 $ 152.0

(In millions) For the Three Months Ended June 30, 2024

(In millions) For the Three Months Ended September 30, 2024

Provision for Credit Losses Dealer Loans Purchased Loans Total

3 unchanged sentences

(In millions)

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

Provision for Credit Losses

5 unchanged sentences

$ 294.3 $ 192.2 $ 486.5

(In millions) For the Six Months Ended June 30, 2024

(In millions) For the Nine Months Ended September 30, 2024

Provision for Credit Losses Dealer Loans Purchased Loans Total

8 unchanged sentences

(In millions)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

New Consumer Loan Assignments

14 unchanged sentences

(In millions)

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

New Consumer Loan Assignments

12 unchanged sentences

$ 385.6 $ 112.8 $ 498.4

(In millions) For the Six Months Ended June 30, 2025

(In millions) For the Nine Months Ended September 30, 2025

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

5 unchanged sentences

Expected net Loan income at the time of assignment (5) $ 958.0 $ 371.9 $ 1,329.9

(In millions) For the Six Months Ended June 30, 2024

(In millions) For the Nine Months Ended September 30, 2024

New Consumer Loan Assignments Dealer Loans Purchased Loans Total

17 unchanged sentences

(In millions)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

Expected Future Net Cash Flows

13 unchanged sentences

(In millions)

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Expected Future Net Cash Flows

12 unchanged sentences

$ 8,077.1 $ 3,441.0 $ 11,518.1

(In millions) For the Six Months Ended June 30, 2025

(In millions) For the Nine Months Ended September 30, 2025

Expected Future Net Cash Flows Dealer Loans Purchased Loans Total

5 unchanged sentences

Balance, end of period $ 8,279.2 $ 3,475.0 $ 11,754.2

(In millions) For the Six Months Ended June 30, 2024

(In millions) For the Nine Months Ended September 30, 2024

Expected Future Net Cash Flows Dealer Loans Purchased Loans Total

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

The following table compares our aggregated forecast of Consumer Loan collection rates as of June 30, 2025 with the aggregated forecasts as of March 31, 2025, December 31, 2024, and at the time of assignment, segmented by year of assignment:

The following table compares our aggregated forecast of Consumer Loan collection rates as of September 30, 2025 with the aggregated forecasts as of June 30, 2025, December 31, 2024, and at the time of assignment, segmented by year of assignment:

Forecasted Collection Percentage as of (1) Current Forecast Variance from

Consumer Loan

Assignment Year June 30, 2025 March 31, 2025 December 31, 2024 Initial

Forecast March 31, 2025 December 31, 2024 Initial

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

2016 63.9 % 63.9 % 63.9 % 65.4 % 0.0 % 0.0 % - 1.5 %

10 unchanged sentences

Consumer Loan

Assignment Year June 30, 2025 March 31, 2025 December 31, 2024 Initial

Forecast March 31, 2025 December 31, 2024 Initial

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

2016 63.2 % 63.1 % 63.1 % 65.1 % 0.1 % 0.1 % - 1.9 %

11 unchanged sentences

Consumer Loan

Assignment Year June 30, 2025 March 31, 2025 December 31, 2024 Initial

Forecast March 31, 2025 December 31, 2024 Initial

Assignment Year September 30, 2025 June 30, 2025 December 31, 2024 Initial

Forecast June 30, 2025 December 31, 2024 Initial

2016 66.2 % 66.1 % 66.1 % 66.5 % 0.1 % 0.1 % - 0.3 %

14 unchanged sentences

We evaluate and adjust the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior.

The following table summarizes the past-due status of Consumer Loan assignments as of June 30, 2025 and December 31, 2024, segmented by year of assignment:

The following table summarizes the past-due status of Consumer Loan assignments as of September 30, 2025 and December 31, 2024, segmented by year of assignment:

(In millions)

Total Loans as of June 30, 2025 (1) (2)

Total Loans as of September 30, 2025 (1) (2)

Pre-term Consumer Loans (3)

9 unchanged sentences

(In millions)

Dealer Loans as of June 30, 2025 (1)

Dealer Loans as of September 30, 2025 (1)

Pre-term Consumer Loans (3)

9 unchanged sentences

(In millions)

Purchased Loans as of June 30, 2025 (2)

Purchased Loans as of September 30, 2025 (2)

Pre-term Consumer Loans (3)

50 unchanged sentences

(5) We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due.

The following table summarizes the write-offs for Consumer Loan assignments for th e three and six months ended June 30, 2025 and 2024, segmented by year of assignment:

(In millions) For the Three Months Ended June 30, 2025

The following table summarizes the write-offs for Consumer Loan assignments for th e three and nine months ended September 30, 2025 and 2024, segmented by year of assignment:

(In millions) For the Three Months Ended September 30, 2025

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

(In millions) For the Three Months Ended June 30, 2024

(In millions) For the Three Months Ended September 30, 2024

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

6 unchanged sentences

$ 167.0 $ 159.8 $ 326.8

(In millions) For the Six Months Ended June 30, 2025

(In millions) For the Nine Months Ended September 30, 2025

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

6 unchanged sentences

$ 613.1 $ 422.6 $ 1,035.7

(In millions) For the Six Months Ended June 30, 2024

(In millions) For the Nine Months Ended September 30, 2024

Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total

22 unchanged sentences

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

5 unchanged sentences

(In millions) As of

Balance Sheet Location June 30, 2025 December 31, 2024

Balance Sheet Location September 30, 2025 December 31, 2024

Trust assets Restricted cash and cash equivalents $ 0.3 $ 0.3

4 unchanged sentences

Other income consists of the following:

(In millions) For the Three Months Ended June 30, For the Six Months Ended June 30,

(In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

14 unchanged sentences

The following table disaggregates our other income by major source of income and timing of the revenue recognition:

(In millions) For the Three Months Ended June 30, 2025

(In millions) For the Three Months Ended September 30, 2025

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

7 unchanged sentences

Total $ 9.5 $ 5.7 $ 3.4 $ 0.3 $ 18.9

(In millions) For the Six Months Ended June 30, 2025

(In millions) For the Nine Months Ended September 30, 2025

Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income

8 unchanged sentences

Debt consists of the following:

(In millions) As of June 30, 2025

(In millions) As of September 30, 2025

Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying

9 unchanged sentences

Total debt $ 6,391.9 $ ( 37.7 ) $ ( 1.3 ) $ 6,352.9

(1) Excludes deferred debt issuance costs of $ 5.4 million and $ 4.4 million as of June 30, 2025 and December 31, 2024, respectively, which are included in other assets.

(1) Excludes deferred debt issuance costs of $ 4.9 million and $ 4.4 million as of September 30, 2025 and December 31, 2024, respectively, which are included in other assets.

(2) Warehouse facilities and Term ABS financings.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

General information for each of our financing transactions in place as of June 30, 2025 is as follows:

General information for each of our financing transactions in place as of September 30, 2025 is as follows:

(Dollars in millions)

2 unchanged sentences

Amount Interest Rate Basis as of

June 30, 2025

September 30, 2025

Revolving Secured Line of Credit Facility n/a 06/22/2028 $ 390.0 At our option, either the Secured Overnight Financing Rate (SOFR) plus 197.5 basis points or the prime rate plus 87.5 basis points

35 unchanged sentences

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

19 unchanged sentences

(Dollars in millions) As of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Revolving Secured Lines of Credit

44 unchanged sentences

(Dollars in millions) As of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Term ABS 2021-4

45 unchanged sentences

(Dollars in millions) As of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Term ABS 2024-A

56 unchanged sentences

Because the subsidiaries are organized as bankruptcy-remote legal entities separate from us, their assets (including the conveyed Loans) are not available to any creditors other than the creditors of the applicable subsidiary.

The subsidiaries pay us a monthly servicing fee equal to either 4 % or 6 %, depending upon the facility, of the collections received with respect to the conveyed Loans.

The subsidiaries pay us a monthly servicing fee equal to 4 % of the collections received with respect to the conveyed Loans.

The servicing fee is paid out of the collections.

39 unchanged sentences

Debt Covenants

As of June 30, 2025, we were in compliance with our covenants under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, the senior notes indentures, and the RTP Facility.

As of September 30, 2025, we were in compliance with covenants under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, the senior notes indentures, and the RTP Facility.

Our revolving secured line of credit facility and our Warehouse facilities include covenants that require the maintenance of certain financial ratios and other financial conditions.

1 unchanged sentence

These covenants also limit the maximum ratio of our funded debt less unrestricted cash and cash equivalents to tangible net worth.

Some of these covenants may indirectly limit the repurchase of common stock or payment of dividends on common stock.

Some of these covenants may indirectly limit the repurchase of common stock or payment of dividends on common stock, and the senior notes indentures include covenants limiting such repurchases and dividend payments.

Our Warehouse facilities and Term ABS financings contain covenants that measure the performance of the conveyed assets.

3 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

6 unchanged sentences

State and local income taxes

For the three months ended June 30, 2025, the impact of state and local income taxes on our effective income tax rate changed from the same period in 2024 primarily due to changes in state tax laws enacted during the second quarter of 2024 that were effective retroactively to the beginning of 2024.

Those changes increased our state income taxes and reduced, rather than increased, our effective income tax rate for the second quarter of 2024, as we had a pre-tax loss that quarter compared to pre-tax income for the second quarter of 2025.

For the six months ended June 30, 2025, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2024 primarily due to:

• The increased impact of an adjustment to an uncertain tax position for state income taxes in the second quarter of 2024 primarily due to lower pre-tax income for the six months ended June 30, 2024.

For the three months ended September 30, 2025, the impact of state and local income taxes on our effective income tax rate increased from the same period in 2024, primarily due to a revision of deferred tax estimates during the third quarter of 2025.

For the nine months ended September 30, 2025, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2024, primarily due to:

• The increased impact of an adjustment to an uncertain tax position for state income taxes in the second quarter of 2024, primarily due to lower pre-tax income for the nine months ended September 30, 2024.

• Changes in state tax laws enacted during the second quarter of 2024 that were effective retroactively to the beginning of 2024.

Non-deductible executive compensation expense

We recognize non-deductible executive compensation expense as an increase in provision for income taxes or a reduction in benefit for income taxes.

For the second quarter of 2024, the impact of non-deductible executive compensation expense reduced, rather than increased, our effective income tax rate, as we had a pre-tax loss in the period, compared to pre-tax income in the second quarter of 2025.

For the six months ended June 30, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from the same period in 2024 primarily due to an increase in pre-tax income.

We recognize non-deductible executive compensation expense as an increase in provision for income taxes.

For the three months ended September 30, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from the same period in 2024, primarily due to a decrease in non-deductible executive compensation expense due to the timing of stock option exercises.

For the nine months ended September 30, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from the same period in 2024, primarily due to an increase in pre-tax income.

Tax deficiency or excess tax benefit from stock-based compensation

2 unchanged sentences

Tax deficiencies increase our effective income tax rate, while excess tax benefits reduce our effective income tax rate .

We recognized a tax deficiency in 2025 and an excess tax benefit in 2024.

For the six months ended June 30, 2025, the impact on our effective income tax rate decreased from the same period in 2024 primarily due to an increase in pre-tax income.

We recognized a tax deficiency for the nine months ended September 30, 2025 and an excess tax benefit for the same period in 2024.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

7 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

STOCK REPURCHASES

The following table summarizes our stock repurchases for the three and six months ended June 30, 2025 and 2024:

(Dollars in millions) For the Three Months Ended June 30,

The following table summarizes our stock repurchases for the three and nine months ended September 30, 2025 and 2024:

(Dollars in millions) For the Three Months Ended September 30,

Stock Repurchases Number of Shares Repurchased Cost (1) Number of Shares Repurchased Cost (1)

2 unchanged sentences

Total 230,365 $ 107.4 86 $ —

(Dollars in millions) For the Six Months Ended June 30,

(Dollars in millions) For the Nine Months Ended September 30,

Stock Repurchases Number of Shares Repurchased Cost (1) Number of Shares Repurchased Cost (1)

3 unchanged sentences

(1) Total cost of repurchases includes excise tax.

(2) Represents repurchases under authorizations by the board of directors for the repurchase of shares by us from time to time in the open market through privately negotiated transactions, through block trades, pursuant to trading plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, or otherwise.

On August 21, 2023, the board of directors authorized the repurchase of up to two million shares of our common stock in addition to the board’s prior authorizations.

As of June 30, 2025, we had authorization to repurchase 391,131 shares of our common stock.

(2) Represents repurchases under authorizations by our board of directors for the repurchase of shares by us from time to time in the open market, through privately negotiated transactions, through block trades, pursuant to trading plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, or otherwise.

On September 29, 2025, our board of directors authorized the repurchase of up to two million shares of our common stock in addition to the board’s prior authorizations.

As of September 30, 2025, we had authorization to repurchase 2,161,067 shares of our common stock.

(3) Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock units and the settlement of restricted stock units in common stock.

7 unchanged sentences

Forfeited ( 2,273 ) 474.74

Outstanding as of June 30, 2025

Outstanding as of September 30, 2025

616,515 $ 414.39

1 unchanged sentence

(In millions) For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

23 unchanged sentences

Geographic Information

For the three and six months ended June 30, 2025 and 2024, all of our revenues were derived from the United States.

As of June 30, 2025 and 2024, all of our long-lived assets were located in the United States.

For the three and nine months ended September 30, 2025 and 2024, all of our revenues were derived from the United States.

As of September 30, 2025 and 2024, all of our long-lived assets were located in the United States.

Products and Services Information

2 unchanged sentences

Major Customer Information

We did not have any Dealers that provided 10% or more of our revenue during the three and six months ended June 30, 2025 and 2024.

Additionally, no single Dealer’s Loans receivable balance accounted for more than 10% of total Loans receivable as of June 30, 2025 and 2024.

We did not have any Dealers that provided 10% or more of our revenue during the three and nine months ended September 30, 2025 and 2024.

Additionally, no single Dealer’s Loans receivable balance accounted for more than 10% of total Loans receivable as of September 30, 2025 and 2024.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

15 unchanged sentences

Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.

The total recorded accrual balance as of June 30, 2025 for these matters was $ 31.8 million.

The total recorded accrual balance as of September 30, 2025 for these matters was $ 46.8 million.

An adverse ultimate disposition in any action to which we are a party or otherwise subject could have a material adverse impact on our financial position, liquidity, and results of operations.

29 unchanged sentences

On April 24, 2025, the Bureau filed an unopposed motion to withdraw as plaintiff, and on April 29, 2025, the court granted that motion and ordered that the Bureau is no longer a plaintiff in the litigation.

In September 2025, we made an offer to jointly settle this matter and the multi-state matter discussed below, on terms that include, among other things, a proposed cash payment of $ 45.0 million.

The Company intends to vigorously defend itself in this matter.

3 unchanged sentences

Also on August 11, 2020, we received from the Attorney General of the State of New Jersey a subpoena that is essentially identical to the August 11, 2020 Maryland subpoena, both as to substance and as to the jurisdictions identified.

The Company has been informed that the State of Kansas, the State of Texas, and the State of Iowa have withdrawn from the multistate investigation.

The Company has been informed that the State of Kansas, the State of Texas, and the State of Iowa have withdrawn from the multi-state investigation.

We are cooperating with these investigations and cannot predict their eventual scope, duration, or outcome at this time.

SUBSEQUENT EVENTS

On July 11, 2025, we extended the date on which our $ 75.0 million Warehouse Facility VI will cease to revolve from September 30, 2026 to September 30, 2028.

The interest rate on borrowings under the facility has been decreased from SOFR plus 210 basis points to SOFR plus 185 basis points.

The servicing fee has also been decreased from 6.0 % to 4.0 % of collections on the underlying consumer loans.

On July 30, 2025, we extended the date on which our $ 300.0 million Warehouse Facility IV will cease to revolve from December 29, 2026 to July 30, 2028.

The interest rate on borrowings under the facility has been decreased from SOFR plus 221.4 basis points to SOFR plus 205 basis points.

In September 2025, we made an offer to jointly settle this matter and the New York Attorney General matter discussed above, on terms that include, among other things, a proposed cash payment of $ 45.0 million.

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.

What changed 10-Q

Item 1. Financial Statements