What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-05 compared with 2025-10-30 · 98 added, 240 removed, 313 unchanged (52% of the section changed)

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and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

For the three months ended September 30, 2025, consolidated net income was $108.2 million, or $9.43 per diluted share, compared to consolidated net income of $78.8 million, or $6.35 per diluted share, for the same period in 2024.

The increase was primarily due to a decrease in provision for credit losses and an increase in finance charges, partially offset by an increase in operating expenses.

Our results and achievements for the three months ended September 30, 2025 included the following:

• A 3.9% increase in the average balance of our Loan portfolio from the third quarter of 2024 to $8.0 billion.

• A decline in Consumer Loan assignment unit and dollar volumes of 16.5% and 19.4%, respectively, as compared to the third quarter of 2024.

• A decline in forecasted collection rates, which decreased forecasted net cash flows from our Loan portfolio by $58.6 million, or 0.5%, and slower forecasted net cash flow timing.

• $107.4 million in the repurchase of approximately 230,000 shares, or 2.0% of the shares outstanding at the beginning of the quarter.

• The enrollment of 1,342 new Dealers, with 10,180 active Dealers during the quarter.

• $51.9 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers.

• $15.0 million contingent loss related to previously disclosed legal matters.

• Received the following awards:

• Financial Services Top Workplaces for the second consecutive year, with a #4 ranking in the 1,000+ employee size category.

• Crain’s Fast 50 list by Crain's Detroit Business for the ninth time.

• PEOPLE 100 Companies that Care ® by PEOPLE magazine and Great Place to Work ® , for the fourth consecutive year, with a #44 ranking.

• Fortune Best Workplaces in Financial Services and Insurance TM by Great Place to Work ® and Fortune for the eleventh consecutive year, with a #10 ranking in the large company category.

For the nine months ended September 30, 2025, consolidated net income was $301.9 million, or $25.50 per diluted share, compared to consolidated net income of $96.0 million, or $7.68 per diluted share, for the same period in 2024.

The increase was primarily due to a decrease in provision for credit losses and an increase in finance charges, partially offset by an increase in operating expenses.

Our results and achievements for the nine months ended September 30, 2025 included the following:

• A 7.1% increase in the average balance of our Loan portfolio from the first nine months of 2024 to $8.0 billion.

• A decline in Consumer Loan assignment unit and dollar volumes of 13.5% and 17.8% respectively, as compared to the first nine months of 2024.

• A decline in forecasted collection rates, which decreased forecasted net cash flows from our Loan portfolio by $135.3 million, or 1.2%, and slower forecasted net cash flow timing.

• $534.0 million in the repurchase of approximately 1,089,000 shares, or 9.0% of the shares outstanding at the beginning of the year.

• The enrollment of 4,547 new Dealers, with 14,483 active Dealers during the first nine months of 2025.

For the three months ended March 31, 2026, consolidated net income was $135.8 million, or $12.40 per diluted share, compared to consolidated net income of $106.3 million, or $8.66 per diluted share, for the same period in 2025.

The increase was primarily due to a decrease in provision for credit losses.

Our financial results for the three months ended March 31, 2026 included the following:

• $7.9 billion average balance of our Loan portfolio, consistent with the first quarter of 2025.

• Consumer Loan assignment unit volume of 95,992 and dollar volume of $1.1 billion, down 4.3% and 4.0%, respectively, compared to the first quarter of 2025.

• Forecasted net cash flows from our Loan portfolio declined modestly by $9.1 million, or 0.1%, representing the smallest quarterly change in the past three years.

• 365,258 shares, or 3.4% of the shares outstanding at the beginning of the quarter, were repurchased at a cost of $178.9 million.

• $47.1 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers.

• $38.4 million contingent loss related to previously disclosed legal matters.

• Received awards from Great Place to Work ® and Fortune magazine, PEOPLE magazine, Top Workplaces USA, and Crain's Detroit Business.

• $1.3 billion in liquidity (unrestricted cash and cash equivalents and amounts available for borrowing under revolving lines of credit) as of March 31, 2026.

Company highlights for the three months ended March 31, 2026 included the following:

• Enrolled 1,526 new Dealers in our programs with a record 10,977 active Dealers during the quarter, reflecting continued engagement across our dealer network.

• Made continued progress executing our product roadmap, including the following initiatives:

• AI-enabled call-center agent:

In March 2026, 27% of inbound customer service and account solutions calls were routed to the AI agent, up from 6% in December 2025.

We expect to further expand use of this agent in 2026, supporting more efficient and scalable servicing operations and enabling consumers to quickly access account information and complete payments.

• Digital credit applications:

The number of Dealers using our digital applications product continues to grow, helping Dealers more efficiently and securely capture consumer information across in‑store, web, and marketing channels.

During the first quarter of 2026, 2,383 Dealers used this product, up 30% from the previous quarter.

• New contract origination experience for Dealers:

Since its February 2026 expansion, nearly 2,000 Dealers have enabled this experience as we focus on testing, learning, and refining the workflow.

The experience is designed to support how franchise and large independent Dealers operate in today’s market, with features including deeper RouteOne e‑contracting integration, enhanced deal‑structuring and optimization tools, and broader support for finance and insurance products.

Critical Success Factors

Critical success factors include our ability to accurately forecast Consumer Loan performance, access capital on acceptable terms, and maintain or grow Consumer Loan volume at the level and on the terms that we anticipate, with the objective to maximize economic profit over the long term.

Economic profit is a non-GAAP financial measure we use to evaluate our financial results and determine profit-sharing for team members.

We also use economic profit as a framework to evaluate business decisions and strategies.

Critical success factors include our ability to:

• accurately forecast Consumer Loan performance;

• access capital on acceptable terms;

• maintain or grow Consumer Loan volume at the level and on the terms that we anticipate.

These factors support our long-term objective of maximizing economic profit, a non-GAAP financial measure we use to evaluate our financial results, determine profit-sharing for team members, and assess business decisions and strategies.

Economic profit measures how efficiently we utilize our total capital, both debt and equity, and is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business.

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By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast.

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:

The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2026, with the aggregated forecasts as of December 31, 2025 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 September 30, 2025 June 30, 2025 December 31, 2024 Initial Forecast June 30, 2025 December 31, 2024 Initial Forecast

Consumer Loan Assignment Year March 31, 2026 December 31, 2025 Initial Forecast December 31, 2025 Initial Forecast

2017 64.8 % 64.8 % 64.0 % 0.0 % 0.8 %

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2026 66.3 % — 66.6 % — -0.3 %

(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment.

Contractual repayments include both principal and interest.

Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

(2) The forecasted collection rate for 2025 Consumer Loans as of September 30, 2025 includes both Consumer Loans that were in our portfolio as of June 30, 2025 and Consumer Loans assigned during the most recent quarter.

The following table provides forecasted collection rates for each of these segments:

Forecasted Collection Percentage as of Current Forecast Variance from

2025 Consumer Loan Assignment Period September 30, 2025 June 30, 2025 Initial Forecast June 30, 2025 Initial Forecast

January 1, 2025 through June 30, 2025 67.1 % 66.9 % 66.9 % 0.2 % 0.2 %

July 1, 2025 through September 30, 2025 67.4 % — 67.4 % — 0.0 %

For the three months ended September 30, 2025, forecasted collection rates improved for Consumer Loans assigned in 2025, declined for Consumer Loans assigned in 2022 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

For the nine months ended September 30, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020, declined for Consumer Loans assigned in 2022 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates.

As a result, any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.

For the three months ended March 31, 2026, forecasted collection rates improved for Consumer Loans assigned in 2021, declined for Consumer Loans assigned in 2023, and were generally consistent with expectations at the start of the period for all other assignment years presented.

For Consumer Loans assigned in 2026, the decline in the current forecasted collection rate from the initial forecast primarily reflects the impact of canceled Consumer Loans, as described in the footnote to the table above.

These Consumer Loans are not seasoned enough for changes in forecasted collection rates to be meaningfully influenced by performance.

The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted Dealer Holdback payments) for each of the last eight quarters are shown in the following table:

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Three Months Ended Total Loans % Change from Forecast at Beginning of Period

December 31, 2023 $ (57.0) -0.6 %

March 31, 2024 (30.8) -0.3 %

June 30, 2024 $ (189.3) -1.7 %

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September 30, 2025 (58.6) -0.5 %

During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024.

Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024.

Accordingly, in the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses.

The implementation of this forecast adjustment during the second quarter of 2025 reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased provision for credit losses by $16.5 million.

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024.

Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters.

Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022.

During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics.

Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses.

The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

December 31, 2025 (34.2) -0.3 %

March 31, 2026 (9.1) -0.1 %

The following table presents information on Consumer Loan assignments for each of the last 10 years:

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Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

(3) Represents activity for the nine months ended September 30, 2025.

(3) Represents activity for the three months ended March 31, 2026.

Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.

(4) The averages for 2025 Consumer Loans include both Consumer Loans that were in our portfolio as of June 30, 2025 and Consumer Loans assigned during the most recent quarter.

The following table provides averages for each of these segments:

2025 Consumer Loan Assignment Period Consumer Loan Advance Initial Loan Term (in months)

January 1, 2025 through June 30, 2025 $ 25,376 $ 11,362 60

July 1, 2025 through September 30, 2025 25,402 11,563 60

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital.

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With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of September 30, 2025, as well as forecasted collection rates and spreads at the time of assignment.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2026, as well as forecasted collection rates and spreads at the time of assignment.

All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

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Forecasted Collection % as of Spread % as of

Consumer Loan Assignment Year September 30, 2025 Initial Forecast Advance % (1) September 30, 2025 Initial Forecast % of Forecast Realized (2)

Consumer Loan Assignment Year March 31, 2026 Initial Forecast Advance % (1) March 31, 2026 Initial Forecast % of Forecast Realized (2)

2017 64.8 % 64.0 % 43.2 % 21.6 % 20.8 % 99.6 %

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(2) Presented as a percentage of total forecasted collections.

(3) The forecasted collection rate, advance rate and spread for 2025 Consumer Loans as of September 30, 2025 include both Consumer Loans that were in our portfolio as of June 30, 2025 and Consumer Loans assigned during the most recent quarter.

The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:

Forecasted Collection % as of Spread % as of

2025 Consumer Loan Assignment Period September 30, 2025 Initial Forecast Advance % September 30, 2025 Initial Forecast

January 1, 2025 through June 30, 2025 67.1 % 66.9 % 44.9 % 22.2 % 22.0 %

July 1, 2025 through September 30, 2025 67.4 % 67.4 % 45.5 % 21.9 % 21.9 %

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age.

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Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of September 30, 2025 and the advance rate ranges from 11.9% to 24.1%, on an annual basis, for Consumer Loans assigned over the last 10 years.

The spread between the forecasted collection rate as of March 31, 2026 and the advance rate ranges from 11.9% to 24.2%, on an annual basis, for Consumer Loans assigned over the last 10 years.

The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented.

The spreads with respect to 2021 through 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented.

The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of September 30, 2025 was primarily a result of Consumer Loan performance, as the performance of 2024 Consumer Loans has been lower than our initial estimates.

The following table compares our forecast of aggregate Consumer Loan collection rates as of September 30, 2025 with the forecasts at the time of assignment, for Dealer Loans and Purchased Loans separately:

The lower spread for 2026 Consumer Loans relative to 2025 Consumer Loans as of March 31, 2026 was primarily a result of Consumer Loan performance, as the performance of 2026 Consumer Loans has been lower than our initial estimates while performance of 2025 Consumer Loans has exceeded our initial estimates.

The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2026 with the forecasts at the time of assignment, for Dealer Loans and Purchased Loans separately:

Dealer Loans Purchased Loans

Forecasted Collection Percentage as of (1) Forecasted Collection Percentage as of (1)

Consumer Loan Assignment Year September 30, 2025 Initial

Forecast Variance September 30, 2025 Initial

Consumer Loan Assignment Year March 31, 2026 Initial

Forecast Variance March 31, 2026 Initial

Forecast Variance

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(1) The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment.

The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment.

Contractual repayments include both principal and interest.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of September 30, 2025 for Dealer Loans and Purchased Loans separately.

Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of March 31, 2026 for Dealer Loans and Purchased Loans separately.

All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

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Although the advance rate on Purchased Loans is higher as compared to the advance rate on Dealer Loans, Purchased Loans do not require us to pay Dealer Holdback.

The spread as of September 30, 2025 on 2025 Dealer Loans was 22.4%, as compared to a spread of 20.2% on 2024 Dealer Loans.

The increase was primarily a result of Consumer Loan performance, as the performance of 2024 Dealer Loans has been lower than our initial estimates.

The spread as of September 30, 2025 on 2025 Purchased Loans was 21.3%, as compared to a spread of 21.0% on 2024 Purchased Loans, reflecting the net impact of two offsetting factors.

Consumer Loan performance increased the spread from 2024 to 2025, as the performance of 2025 Purchased Loans has exceeded our initial estimates while the performance of 2024 Purchased Loans has been lower than our initial estimates.

This impact of Consumer Loan performance was partially offset by the impact of a lower initial spread on 2025 Purchased Loans, due to the advance rate increasing by a greater margin than the initial forecast in our Purchased Loan portfolio.

The spread as of March 31, 2026 on both 2026 and 2025 Dealer Loans was 22.4%, reflecting the net impact of two offsetting factors.

Consumer Loan performance decreased the spread from 2025 to 2026, primarily due to the performance of 2026 Dealer Loans, which has been lower than our initial estimates.

The impact of Consumer Loan performance was offset by the higher initial spread on 2026 Dealer Loans, due to the advance rate decreasing by a greater margin than the initial forecast in our Dealer Loan portfolio.

The spread as of March 31, 2026 on 2026 Purchased Loans was 20.5%, as compared to a spread of 21.3% on 2025 Purchased Loans.

The decrease was a result of (i) Consumer Loan performance, as the performance of 2026 Purchased Loans has been lower than our initial estimates while the performance of 2025 Purchased Loans has exceeded our initial estimates, and (ii) 2026 Purchased Loans having a lower initial spread, due to the initial forecast decreasing by a greater margin than the advance rate.

Access to Capital

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and (3) maintain multiple funding sources.

Our funded debt to equity ratio was 4.0 to 1 as of September 30, 2025.

Our funded debt to equity ratio was 4.2 to 1 as of March 31, 2026.

We currently utilize the following primary forms of debt financing:

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Three Months Ended Unit Volume Dollar Volume (1)

December 31, 2023 26.7 % 21.3 %

March 31, 2024 24.1 % 20.2 %

June 30, 2024 20.9 % 16.3 %

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September 30, 2025 -16.5 % -19.4 %

December 31, 2025 -9.1 % -11.3 %

March 31, 2026 -4.3 % -4.0 %

(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.

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Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit and dollar volumes declined 16.5% and 19.4%, respectively, during the third quarter of 2025 as the number of active Dealers declined 4.7% and the average unit volume per active Dealer declined 12.2%.

Dollar volume declined by more than unit volume during the third quarter of 2025 due to a decrease in the average advance paid, primarily resulting from a decrease in the average size of Consumer Loans assigned.

Unit volume for the 28-day period ended October 28, 2025 decreased 13.0% compared to the same period in 2024.

Unit and dollar volumes declined 4.3% and 4.0%, respectively, during the first quarter of 2026 as the number of active Dealers increased 1.7% and the average unit volume per active Dealer declined 6.5%.

Unit volume for April 2026 decreased 5.1% compared to the same period in 2025.

The following table summarizes the changes in Consumer Loan unit volume and active Dealers:

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

September 30,

2025 2024 % Change 2025 2024 % Change

For the Three Months Ended March 31,

2026 2025 % Change

Consumer Loan unit volume 95,992 100,278 -4.3 %

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The following table provides additional information on the changes in Consumer Loan unit volume and active Dealers:

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

September 30,

2025 2024 % Change 2025 2024 % Change

For the Three Months Ended March 31,

2026 2025 % Change

Consumer Loan unit volume from new active Dealers

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Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans

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

March 31, 2024 78.2 % 21.8 % 76.6 % 23.4 %

June 30, 2024 78.5 % 21.5 % 77.3 % 22.7 %

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

December 31, 2025 74.7 % 25.3 % 72.4 % 27.6 %

March 31, 2026 72.0 % 28.0 % 69.2 % 30.8 %

(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.

Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

As of September 30, 2025 and December 31, 2024, the net Dealer Loans receivable balance was 72.1% and 72.3%, respectively, of the total net Loans receivable balance.

As of March 31, 2026 and December 31, 2025, the net Dealer Loans receivable balance was 71.7% and 72.1%, respectively, of the total net Loans receivable balance.

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

The higher 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 Consumer Loan assignment volume since 2024 has been primarily related to Consumer Loans assigned under this expanded Dealer access.

Results of Operations

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For additional information, see Note 3 and Note 6 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The following is a discussion of our results of operations and income statement data on a consolidated basis.

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

September 30,

2026 2025 $ Change % Change

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Provision for claims 15.8 16.1 (0.3) -1.9 %

Total costs and expenses 433.5 443.8 (10.3) -2.3 %

Income before provision for income taxes 148.9 106.5 42.4 39.8 %

Provision for income taxes 40.7 27.7 13.0 46.9 %

Net income $ 108.2 $ 78.8 $ 29.4 37.3 %

Net income per share:

Basic $ 9.62 $ 6.42 $ 3.20 49.8 %

Diluted $ 9.43 $ 6.35 $ 3.08 48.5 %

Weighted average shares outstanding:

Basic 11,248,227 12,274,685 (1,026,458) -8.4 %

Diluted 11,472,729 12,415,143 (942,414) -7.6 %

Finance Charges.

The increase of $31.8 million, or 6.3%, was the result of increases in the average net Loans receivable balance and the average yield on our Loan portfolio as follows:

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

2025 2024 Change

Average net Loans receivable balance $ 7,990.5 $ 7,690.9 $ 299.6

Average yield on our Loan portfolio 27.0 % 26.4 % 0.6 %

The following table summarizes the impact each component had on the overall increase in finance charges for the three months ended September 30, 2025:

(In millions) Year over Year Change

Impact on finance charges:

For the Three Months Ended September 30, 2025

Due to an increase in the average net Loans receivable balance $ 19.8

Due to an increase in the average yield 12.0

Total increase in finance charges $ 31.8

The increase in the average net Loans receivable balance was primarily due to the dollar volume of new Consumer Loan assignments exceeding the principal collected on Loans receivable.

The increase in the average yield of our Loan portfolio was primarily due to higher contractual yields on more recent Consumer Loan assignments.

Operating Expenses.

The increase of $17.2 million, or 13.3%, was primarily due to:

• An increase in salaries and wages expense of $8.2 million, or 10.6%, primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for Dealers and consumers and (ii) fringe benefits, primarily due to higher medical claims.

• An increase in general and administrative expense of $7.3 million, or 25.2%, primarily due to an increase in legal expenses, which included a $15.0 million contingent loss recognized during the third quarter of 2025 compared to a $7.4 million contingent loss recognized during the third quarter of 2024, both related to previously disclosed legal matters as to which we have recognized cumulative contingent losses of $46.8 million through the end of the third quarter of 2025.

The cumulative amount reflects, among other things, a September 2025 offer by us to settle the previously disclosed multi-state and New York Attorney General legal matters on terms that include, among other things, a proposed cash payment of $45.0 million.

Provision for Credit Losses .

The decrease of $32.7 million, or 17.7%, was due to decreases in provision for credit losses on forecast changes and provision for credit losses on new Consumer Loan assignments.

We recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that are not expected to be realized at the time of assignment.

We also recognize provision for credit losses on forecast changes in the amount and timing of expected future net cash flows subsequent to assignment.

The following table summarizes the provision for credit losses for each of these components:

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

Provision for Credit Losses 2025 2024 Change

Forecast changes $ 88.1 $ 105.9 $ (17.8)

New Consumer Loan assignments 63.9 78.8 (14.9)

Total $ 152.0 $ 184.7 $ (32.7)

The decrease in provision for credit losses related to forecast changes in the third quarter of 2025 compared to the third quarter of 2024 reflected changes in forecasted net cash flow timing and a smaller decline in Consumer Loan performance.

While we continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments, it was to a lesser extent as compared to the same period in 2024.

During the third quarter of 2025, we decreased our estimate of future net cash flows by $58.6 million, or 0.5%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments, which remained below historical averages.

Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit.

During the third quarter of 2024, we decreased our estimate of future net cash flows by $62.8 million, or 0.6%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remained below historical averages.

The 18.9% decrease in provision for credit losses related to new Consumer Loan assignments was primarily due to a 16.5% decrease in Consumer Loan assignment unit volume.

The increase in interest expense of $5.1 million, or 4.6%, was primarily due to an increase in our average outstanding debt balance.

The following table presents the change in interest expense, average outstanding debt balance, and average cost of debt for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024:

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

2025 2024 Change

Interest expense $ 116.3 $ 111.2 $ 5.1

Average outstanding debt balance 6,400.1 6,071.1 329.0

Average cost of debt 7.3 % 7.3 % — %

Provision for Income Taxes .

For the three months ended September 30, 2025, the effective income tax rate increased to 27.3% from 26.0% for the same period in 2024, primarily due to a revision of deferred tax estimates during the third quarter of 2025.

For additional information, see Note 10 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

The following is a discussion of our results of operations and income statement data on a consolidated basis.

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

September 30,

2025 2024 $ Change % Change

Finance charges $ 1,606.8 $ 1,474.5 $ 132.3 9.0 %

Premiums earned 71.7 71.3 0.4 0.6 %

Other income 58.8 50.7 8.1 16.0 %

Total revenue 1,737.3 1,596.5 140.8 8.8 %

Costs and expenses:

Salaries and wages 257.8 231.6 26.2 11.3 %

General and administrative 103.6 75.9 27.7 36.5 %

Sales and marketing 76.2 72.4 3.8 5.2 %

Total operating expenses 437.6 379.9 57.7 15.2 %

Provision for credit losses on forecast changes 265.7 430.9 (165.2) -38.3 %

Provision for credit losses on new Consumer Loan assignments 220.8 260.4 (39.6) -15.2 %

Total provision for credit losses 486.5 691.3 (204.8) -29.6 %

Interest 349.1 308.2 40.9 13.3 %

Provision for claims 54.5 55.8 (1.3) -2.3 %

Loss on extinguishment of debt — 1.2 (1.2) — %

Loss on sale of building — 23.7 (23.7) — %

Total costs and expenses 405.0 429.4 (24.4) -5.7 %

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Finance Charges.

The increase of $132.3 million, or 9.0%, was the result of increases in the average net Loans receivable balance and the average yield on our Loan portfolio as follows:

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

The increase of $11.7 million, or 2.2%, was primarily a result of an increase in the average yield on our Loan portfolio as follows:

(Dollars in millions) For the Three Months Ended March 31,

2026 2025 Change

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Average yield on our Loan portfolio 27.3 % 26.7 % 0.6 %

The following table summarizes the impact each component had on the overall increase in finance charges for the nine months ended September 30, 2025:

The following table summarizes the impact each component had on the overall increase in finance charges for the three months ended March 31, 2026:

(In millions) Year over Year Change

Impact on finance charges:

For the Nine Months Ended September 30, 2025

Due to an increase in the average net Loans receivable balance $ 105.4

For the Three Months Ended March 31, 2026

Due to an increase in the average yield $ 10.9

Due to an increase in the average net Loans receivable balance 0.8

Total increase in finance charges $ 11.7

The increase in the average net Loans receivable balance was primarily due to the dollar volume of new Consumer Loan assignments exceeding the principal collected on Loans receivable.

The increase in the average yield of our Loan portfolio was primarily due to higher contractual yields on more recent Consumer Loan assignments.

The increase in the average yield on our Loan portfolio was primarily due to higher contractual yields on more recent Consumer Loan assignments.

Operating Expenses.

The increase of $57.7 million, or 15.2%, was primarily due to:

• An increase in general and administrative expense of $27.7 million, or 36.5%, primarily due to an increase in legal expenses, which included a $38.4 million contingent loss recognized during the first nine months of 2025, compared to an $8.4 million contingent loss recognized during the first nine months of 2024, both related to previously disclosed legal matters as to which we have recognized cumulative contingent losses of $46.8 million through the end of the third quarter of 2025.

• An increase in salaries and wages expense of $26.2 million, or 11.3%, primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for Dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.

The increase of $5.7 million, or 4.2%, was due to:

• An increase in sales and marketing expense of $3.0 million, or 12.1%, primarily due to increases in the size of our sales force and advertising expenses.

• An increase in general and administrative expense of $2.7 million, or 12.2%, primarily due to higher professional services costs related to strategic market analysis initiatives.

Provision for Credit Losses .

The decrease of $204.8 million, or 29.6%, was due to decreases in provision for credit losses on forecast changes and provision for credit losses on new Consumer Loan assignments.

The decrease of $22.3 million, or 13.8%, was primarily due to a decrease in provision for credit losses on forecast changes.

We recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that are not expected to be realized at the time of assignment.

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The following table summarizes the provision for credit losses for each of these components:

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

Provision for Credit Losses 2025 2024 Change

(In millions) For the Three Months Ended March 31,

Impact on provision for credit losses 2026 2025 Change

Forecast changes $ 54.4 $ 76.3 $ (21.9)

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Total $ 139.6 $ 161.9 $ (22.3)

The decrease in provision for credit losses related to forecast changes was primarily due to a smaller decline in Consumer Loan performance during the first nine months of 2025 compared to the first nine months of 2024.

During the first nine months of 2025, we decreased our estimate of future net cash flows by $135.3 million, or 1.2%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments, which remained below historical averages.

Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit.

The $135.3 million decrease in forecasted net cash flows for the first nine months of 2025 was composed of an ordinary decrease in forecasted net cash flows of $116.7 million, or 1.0%, and an adjustment applied to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased our provision for credit losses by $16.5 million.

Accordingly, during the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

During the first nine months o f 2024, we decreased our estimate of future net cash flows by $282.9 million, or 2.8%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remained below historical averages.

The $282.9 million decrease in forecasted net cash flows for the first nine months of 2024 was composed of an ordinary decrease in forecasted net cash flows of $135.7 million, or 1.4%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million.

Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters.

Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022.

During the second quarter o f 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics.

For additional information, see Note 6 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

The 15.2% decrease in provision for credit losses related to new Consumer Loan assignments was primarily due to a 13.5% decrease in Consumer Loan assignment unit volume.

The increase in interest expense of $40.9 million, or 13.3%, was primarily due to an increase in our average outstanding debt balance.

The following table presents the change in interest expense, average outstanding debt balance, and average cost of debt for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024:

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

The decrease in provision for credit losses related to forecast changes in the first quarter of 2026 compared to the first quarter of 2025 reflected a smaller decline in Consumer Loan performance and changes in forecasted net cash flow timing.

During the first quarter of 2026, we decreased our estimate of future net cash flows modestly by $9.1 million, or 0.1%, and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments, which remained below historical averages.

During the first quarter of 2025, we decreased our estimate of future net cash flows by $20.9 million, or 0.2%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments.

The decrease in interest expense of $6.3 million, or 5.5%, was due to decreases in our average cost of debt and average outstanding debt balance.

The following table presents the change in interest expense, average outstanding debt balance, and average cost of debt for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025:

(Dollars in millions) For the Three Months Ended March 31,

2026 2025 Change

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Average cost of debt 6.9 % 7.2 % -0.3 %

Loss on Sale of Building.

For the nine months ended September 30, 2024, we recognized a loss on sale of a building of $23.7 million.

Provision for Income Taxes .

For the nine months ended September 30, 2025, our effective income tax rate decreased to 26.1% from 30.2% for the nine months ended September 30, 2024.

The decrease was primarily due to an increase in pre-tax income in the first nine months of 2025 compared to the same period in 2024.

The lower pre-tax income in the first nine months of 2024 increased the impact of an adjustment to an uncertain tax position for state income taxes recorded in 2024 and non-deductible executive compensation expense during the prior year on our 2024 effective income tax rate.

For additional information, see Note 10 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which i s incorporated herein by reference.

For the three months ended March 31, 2026, the effective income tax rate decreased to 22.4% from 25.0% for the same period in 2025.

The decrease was primarily due to a reversal of previously recognized non-deductible executive compensation expenses, related to the retirement of executive officers during the first quarter of 2026, and a decrease in the impact of state and local income taxes on our effective income tax rate, primarily related to uncertain tax position estimates.

For additional information, see Note 10 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Liquidity and Capital Resources

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and (4) senior notes.

There are various restrictive covenants to which we are subject under each financing arrangement, and we were in compliance with those covenants as of September 30, 2025.

There are various restrictive covenants to which we are subject under each financing arrangement, and we were in compliance with those covenants as of March 31, 2026.

For information regarding these financings and the covenants included in the related documents, see Note 9 to the consolidated financial statements contained in Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

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We have also reduced advance rates to the Dealer on more recent vintages, which we believe increases the margin of safety in our business.

Based on our current estimates, total forecasted collections for the portfolio as of September 30, 2025 are $12.3 billion, which provides over $4.5 billion of cushion to our lenders after considering $1.4 billion of estimated interest and operating expenses and $6.4 billion of outstanding debt.

Based on our current estimates, total forecasted collections for the portfolio as of March 31, 2026 are $12.3 billion, which provides over $4.5 billion of cushion to our lenders after considering $1.4 billion of estimated interest and operating expenses and $6.4 billion of outstanding debt.

Since 1998, we have completed 61 term securitizations totaling $17.6 billion of debt issued.

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Accordingly, we believe future net cash flows from collateral securing our outstanding securitization debt are more than sufficient to repay all future obligations of our outstanding securitization trusts.

On February 28, 2025, we issued $500.0 million of 6.625% senior notes due 2030 (the “2030 senior notes”).

We used a portion of the net proceeds from the 2030 senior notes to redeem all of the $400.0 million outstanding principal amount of our 6.625% senior notes due 2026 (the “2026 senior notes”).

We used the remaining net proceeds from the 2030 senior notes for general corporate purposes.

During the first quarter of 2025, we recognized a pre-tax loss on extinguishment of debt of $1.2 million related to the redemption of the 2026 senior notes.

On March 27, 2025, we completed a $400.0 million Term ABS financing, which was used to repay outstanding indebtedness and for general corporate purposes.

On January 15, 2026, we extended the date on which our $100.0 million Term ABS 2021-1 financing will cease to revolve from February 17, 2026 to January 18, 2028.

The interest rate on borrowings under the financing was decreased from the Secured Overnight Financing Rate (“SOFR”) plus 220 basis points to SOFR plus 140 basis points.

On May 5, 2026, we completed a $450.0 million Term ABS financing, which was used to repay outstanding indebtedness and for general corporate purposes.

The financing has an expected average annualized cost of 5.2% (including upfront fees and other costs), and it will revolve for 24 months, after which it will amortize based upon the cash flows on the underlying Loans.

On June 24, 2025, we extended the maturity of our revolving secured line of credit facility from June 22, 2027 to June 22, 2028.

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 the Secured Overnight Financing Rate (“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.

On September 19, 2025, we extended the date on which our $200.0 million Warehouse Facility VIII will cease to revolve from September 21, 2026 to September 19, 2028.

The interest rate on borrowings under the facility has been decreased from SOFR plus 225 basis points to SOFR plus 185 basis points.

Cash and cash equivalents were $15.9 million as of September 30, 2025 and $343.7 million as of December 31, 2024.

As of September 30, 2025 and December 31, 2024, we had $1,586.3 million and $1,734.9 million, respectively, in unused and available revolving lines of credit.

Our total balance sheet indebtedness as of September 30, 2025 and December 31, 2024 was $6,369.0 million and $6,352.9 million, respectively.

A summary of our scheduled principal debt maturities as of September 30, 2025 is as follows:

Cash and cash equivalents were $25.7 million as of March 31, 2026 and $22.8 million as of December 31, 2025.

As of March 31, 2026 and December 31, 2025, we had $1,264.4 million and $1,627.7 million, respectively, in unused and available revolving lines of credit.

Our total balance sheet indebtedness as of March 31, 2026 and December 31, 2025 was $6,408.6 million and $6,353.9 million, respectively.

A summary of our scheduled principal debt maturities as of March 31, 2026 is as follows:

(In millions)

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Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025 discusses several critical accounting estimates, which we believe involve a high degree of judgment and complexity.

There have been no material changes to the estimates and assumptions associated with these critical accounting estimates from those discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, except as described below.

Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses.

Forward-Looking Statements

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While we believe that our forward-looking statements are reasonable, actual results could differ materially since the statements are based on our current expectations, which are subject to risks and uncertainties.

Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, and in Part II - Item 1A of this report, other risk factors discussed herein or listed from time to time in our reports filed with the SEC, and the following:

Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, other risk factors discussed herein or listed from time to time in our reports filed with the SEC, and the following:

Industry, Operational, and Macroeconomic Risks

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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 2. Management’s Discussion and Analysis