Oportun Financial Corp 10-Q

Item 1. Financial Statements OPORTUN FINANCIAL CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) June 30, December 31, 2026 2025 Assets Cash and cash equivalents $ 139,590 $ 105,525 Restricted cash 72,839 93,409 Loans receivable at fair value 2,736,750 2,874,092 Capitalized software and other intangibles, net 66,934 71,698 Right of use assets - operating 11,206 9,441 Other assets 101,993 103,691 Total assets $ 3,129,312 $ 3,257,856 Liabilities and stockholders' equity Liabilities Secured financing $ 304,159 $ 199,384 Asset-backed notes at fair value 137,778 263,799 Asset-backed borrowings at amortized cost 2,088,453 2,192,649 Corporate financing 119,891 143,663 Lease liabilities 12,003 11,468 Other liabilities 59,895 56,811 Total liabilities 2,722,179 2,867,774 Stockholders' equity Common stock, $ 0.0001 par value - 1,000,000,000 shares authorized at June 30, 2026 and December 31, 2025; 46,222,056 shares issued and 45,950,033 shares outstanding at June 30, 2026; 44,709,065 shares issued and 44,437,042 shares outstanding at December 31, 2025 8 8 Common stock, additional paid-in capital 629,838 623,668 Accumulated deficit ( 216,404 ) ( 227,285 ) Treasury stock at cost, 272,023 shares at June 30, 2026 and December 31, 2025 ( 6,309 ) ( 6,309 ) Total stockholders’ equity 407,133 390,082 Total liabilities and stockholders' equity $ 3,129,312 $ 3,257,856 See Notes to the Condensed Consolidated Financial Statements (Unaudited). 3 OPORTUN FINANCIAL CORPORATION Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Interest income $ 219,274 $ 218,281 $ 434,939 $ 438,502 Non-interest income 13,954 16,065 27,053 31,748 Total revenue 233,228 234,346 461,992 470,250 Less: Interest expense 41,933 59,538 89,912 116,941 Net decrease in fair value ( 85,663 ) ( 70,257 ) ( 171,557 ) ( 142,929 ) Net revenue 105,632 104,551 200,523 210,380 Operating expenses: Technology and facilities 32,293 36,649 66,433 73,086 Sales and marketing 17,593 18,077 33,542 37,959 Personnel 24,510 20,247 50,038 41,212 Outsourcing and professional fees 9,650 9,701 18,354 17,713 General, administrative and other 5,966 9,769 12,975 17,143 Total operating expenses 90,012 94,443 181,342 187,113 Income before taxes 15,620 10,108 19,181 23,267 Income tax expense 7,084 3,231 8,300 6,623 Net income $ 8,536 $ 6,877 $ 10,881 $ 16,644 Net income attributable to common stockholders $ 8,536 $ 6,877 $ 10,881 $ 16,644 Share data: Earnings per share: Basic $ 0.18 $ 0.15 $ 0.23 $ 0.36 Diluted $ 0.17 $ 0.14 $ 0.22 $ 0.35 Weighted average common shares outstanding: Basic 48,419,607 46,571,524 47,930,598 46,037,084 Diluted 49,396,024 47,893,172 48,950,110 47,468,455 See Notes to the Condensed Consolidated Financial Statements (Unaudited). 4 OPORTUN FINANCIAL CORPORATION Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (in thousands, except share data) For the Six Months Ended June 30, 2026 Warrants Common Stock Shares Additional Paid-in Capital Shares Par Value Additional Paid-in Capital Accumulated Deficit Treasury Stock Total Stockholders' Equity Balance – January 1, 2026 2,682,788 $ 11,150 44,437,042 $ 8 $ 612,518 $ ( 227,285 ) $ ( 6,309 ) $ 390,082 Stock-based compensation expense — — — — 4,321 — — 4,321 Vesting of restricted stock units, net of shares withheld — — 1,165,749 — ( 465 ) — — ( 465 ) Net income — — — — — 2,345 — 2,345 Balance – March 31, 2026 2,682,788 $ 11,150 45,602,791 $ 8 $ 616,374 $ ( 224,940 ) $ ( 6,309 ) $ 396,283 Stock-based compensation expense — — — — 3,110 — — 3,110 Vesting of restricted stock units, net of shares withheld — — 252,829 — ( 797 ) — — ( 797 ) Issuance of common stock upon exercise of warrants ( 94,413 ) ( 492 ) 94,413 — 493 — — 1 Net income — — — — — 8,536 — 8,536 Balance – June 30, 2026 2,588,375 $ 10,658 45,950,033 $ 8 $ 619,180 $ ( 216,404 ) $ ( 6,309 ) $ 407,133 See Notes to the Condensed Consolidated Financial Statements (Unaudited). 5 OPORTUN FINANCIAL CORPORATION Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (in thousands, except share data) For the Six Months Ended June 30, 2025 Warrants Common Stock Shares Additional Paid-in Capital Shares Par Value Additional Paid-in Capital Accumulated Deficit Treasury Stock Total Stockholders' Equity Balance – January 1, 2025 9,046,459 $ 33,825 36,111,856 $ 7 $ 578,817 $ ( 252,531 ) $ ( 6,309 ) $ 353,809 Stock-based compensation expense — — — — 3,034 — — 3,034 Vesting of restricted stock units, net of shares withheld — — 1,389,309 — ( 511 ) — — ( 511 ) Net income — — — — — 9,767 — 9,767 Balance – March 31, 2025 9,046,459 $ 33,825 37,501,165 $ 7 $ 581,340 $ ( 242,764 ) $ ( 6,309 ) $ 366,099 Issuance of common stock upon exercise of stock options, net of shares withheld — — 8,104 — 46 — — 46 Stock-based compensation expense — — — — 2,904 — — 2,904 Vesting of restricted stock units, net of shares withheld — — 136,459 — — — — — Issuance of common stock upon exercise of warrants ( 6,363,671 ) ( 22,675 ) 6,363,671 1 22,737 — — 63 Net income — — — — — 6,877 — 6,877 Balance – June 30, 2025 2,682,788 $ 11,150 44,009,399 $ 8 $ 607,027 $ ( 235,887 ) $ ( 6,309 ) $ 375,989 See Notes to the Condensed Consolidated Financial Statements (Unaudited). 6 OPORTUN FINANCIAL CORPORATION Condensed Consolidated Statements of Cash Flow (Unaudited) (in thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net income $ 10,881 $ 16,644 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 17,823 21,783 Fair value adjustment, net 171,557 142,929 Origination fees for loans receivable at fair value, net ( 7,358 ) ( 20,930 ) Gain on loan sales ( 2,753 ) ( 2,979 ) Stock-based compensation expense 7,082 5,539 Other, net 11,215 23,380 Originations of loans sold and held for sale ( 51,703 ) ( 72,249 ) Proceeds from sale of loans 54,456 76,768 Changes in operating assets and liabilities 1,844 14,620 Net cash provided by operating activities 213,044 205,505 Cash flows from investing activities Originations and purchases of loans held for investment ( 684,852 ) ( 772,912 ) Repayments of loan principal 655,793 677,443 Capitalization of system development costs ( 12,773 ) ( 12,011 ) Other, net ( 309 ) ( 382 ) Net cash used in investing activities ( 42,141 ) ( 107,862 ) Cash flows from financing activities Borrowings under secured financing 167,900 590,529 Repayments of secured financing ( 64,113 ) ( 794,396 ) Repayments of asset-backed notes at fair value ( 128,480 ) ( 474,041 ) Borrowings under asset-backed borrowings at amortized cost 482,560 857,279 Repayments of asset-backed borrowings at amortized cost ( 583,980 ) ( 248,050 ) Repayments of corporate financing ( 30,000 ) ( 13,759 ) Payments of deferred financing costs ( 34 ) ( 1,207 ) Net payments related to stock-based activities ( 1,261 ) ( 401 ) Net cash used in financing activities ( 157,408 ) ( 84,046 ) Net increase in cash and cash equivalents and restricted cash 13,495 13,597 Cash and cash equivalents and restricted cash, beginning of period 198,934 214,625 Cash and cash equivalents and restricted cash, end of period $ 212,429 $ 228,222 Supplemental disclosure of cash flow information Cash and cash equivalents $ 139,590 $ 96,816 Restricted cash 72,839 131,406 Total cash and cash equivalents and restricted cash $ 212,429 $ 228,222 Cash paid for income taxes, net of refunds $ 1,643 $ 1,395 Cash paid for interest $ 91,882 $ 100,364 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,721 $ 5,608 Supplemental disclosures of non-cash investing and financing activities Right of use assets obtained in exchange for operating lease obligations $ 3,795 $ 1,929 Non-cash investments in capitalized assets $ 142 $ 370 Non-cash financing activities $ 17,439 $ 33,259 See Notes to the Condensed Consolidated Financial Statements (Unaudited). 7 OPORTUN FINANCIAL CORPORATION Notes to the Condensed Consolidated Financial Statements (Unaudited) June 30, 2026 1. Organization and Description of Business Oportun Financial Corporation (together with its subsidiaries unless the context indicates otherwise, "Oportun," or the "Company") is a mission driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, the Company empowers members with the confidence to build a better financial future. Oportun takes a holistic approach to serving its members and views as its purpose to responsibly meet their current capital needs, help improve their financial profiles, increase their financial awareness and put them on a path to a financially healthy life. Oportun offers access to a comprehensive suite of products, offered either directly or through partners, including unsecured and secured lending, and savings. The Company is headquartered in San Mateo, California. The Company has been certified by the United States Department of the Treasury as a Community Development Financial Institution since 2009. 2. Summary of Significant Accounting Policies Basis of Presentation ‑ The Company meets the Securities and Exchange Commission's ("SEC") definition of a “Smaller Reporting Company”, and therefore qualifies for the SEC's reduced disclosure requirements for smaller reporting companies. The accompanying condensed and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements are unaudited and reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026, as amended (the "Annual Report"). Use of Estimates ‑ The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates and assumptions. Accounting Policies - There have been no changes to the Company's significant accounting policies from those described in Part II, Item 8 - Financial Statements and Supplementary Data in the Annual Report, except for the new accounting pronouncements subsequently adopted as noted below. Recently Adopted Accounting Standards There have been no accounting standards adopted during the three months ended June 30, 2026 . Accounting Standards to be Adopted Income Statement - In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disaggregated disclosure of income statement expenses for public business entities (PBEs). The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The ASU is effective for all PBEs for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the effect of the new guidance on its Condensed Consolidated Statement of Operations. Internally Developed Software - In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU eliminates the prior “project stage” model and clarifies that capitalization begins when management authorizes and commits funding for a project and completion is probable; it also relocates website-development guidance into Subtopic 350-40 and requires entities to apply the PP&E disclosure requirements in ASC 360-10 to capitalized internal-use software. The ASU is effective for annual periods beginning after December 15, 2027, including interim periods within those annual periods; early adoption is permitted. Entities may adopt prospectively, retrospectively, or under a modified transition approach. The Company is evaluating the effect of this guidance on its accounting for and disclosures of internal-use software. Interim Reporting - In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU intends to improve the navigability of the guidance in ASC 270 and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides “interim financial statements and notes in accordance with GAAP.” The ASU also addresses the form and content of such financial statements, adds lists to ASC 270 of the interim disclosures required by all other Codification topics, and establishes a principle under which an entity must “disclose events since the end of the last annual reporting period that have a material impact on the entity.” As the Board stated in the proposed guidance and reiterates in the ASU, the amendments are not intended to “change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements.” The ASU is effective for interim reporting periods within annual reporting periods beginning after 8 December 15, 2027; early adoption is permitted. Entities may adopt prospectively, or retrospectively to any or all prior periods presented in the financial statements. The Company is evaluating the effect of this guidance on its interim reporting. Codification Improvements - In December 2025, the FASB issued ASU 2025-12 “Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years; early adoption is permitted. The Company is evaluating the effect of this guidance on its results of operations, financial position and disclosures. 3. Earnings per Share Basic and diluted earnings per share are calculated as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2026 2025 2026 2025 Net income $ 8,536 $ 6,877 $ 10,881 $ 16,644 Net income attributable to common stockholders $ 8,536 $ 6,877 $ 10,881 $ 16,644 Basic weighted-average common shares outstanding (1) 48,419,607 46,571,524 47,930,598 46,037,084 Weighted average effect of dilutive securities: Restricted stock units 976,417 1,321,648 1,019,512 1,431,371 Diluted weighted-average common shares outstanding 49,396,024 47,893,172 48,950,110 47,468,455 Earnings per share: Basic $ 0.18 $ 0.15 $ 0.23 $ 0.36 Diluted $ 0.17 $ 0.14 $ 0.22 $ 0.35 (1) The outstanding and exercisable warrants issued with an exercise price of $ 0.01 are included in the Basic weighted-average common shares outstanding. See Note 10, Stockholders' Equity for additional information. The following common share equivalent securities have been excluded from the calculation of diluted weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Stock options 1,404,257 1,700,321 1,417,883 1,768,313 Restricted stock units 582,623 1,241,225 684,437 1,248,514 Total anti-dilutive common share equivalents 1,986,880 2,941,546 2,102,320 3,016,827 4. Variable Interest Entities For all variable interest entities ( “VIEs”) in which the Company is involved, it assesses whether it is the primary beneficiary of the VIE on an ongoing basis. In circumstances where the Company has both the power to direct the activities that most significantly impact the VIEs performance and the obligation to absorb losses or the right to receive the benefits of the VIE that could be significant, it would conclude that it is the primary beneficiary of the VIE, and it consolidates the VIE. In situations where the Company is not deemed to be the primary beneficiary of the VIE, it does not consolidate the VIE and only recognizes its interests in the VIE. See Note 8, Borrowings for additional information on the secured borrowing under the caption of asset-backed borrowings at amortized cost. Consolidated VIEs As part of the Company’s overall funding strategy, the Company transfers a pool of designated loans receivable to wholly owned special-purpose subsidiaries to collateralize certain asset-backed financing transactions. For these VIEs where the Company has determined that it is the primary beneficiary because it has the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb the losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs, the VIEs assets and related liabilities are consolidated with the results of the Company. Such power arises from the Company’s contractual right to service the loans receivable securing the VIEs’ asset-backed debt obligations. The Company has an obligation to absorb losses or the right to receive benefits that are potentially significant to the VIEs because it retains the residual interest of each asset-backed financing transaction in the form of an asset-backed certificate. Accordingly, the Company includes the VIEs’ assets, including the assets securing the financing transactions, and related liabilities in its condensed consolidated financial statements. Each consolidated VIE issues a series of asset-backed securities that are supported by the cash flows arising from the loans receivable securing such debt. Cash inflows arising from such loans receivable are distributed monthly to the transaction’s lenders and related service providers in 9 accordance with the transaction’s contractual priority of payments. The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. The Company retains the most subordinated economic interest in each financing transaction through its ownership of the respective residual interest in each VIE. The Company has no obligation to repurchase loans receivable that initially satisfied the financing transaction’s eligibility criteria but subsequently became delinquent or a defaulted loans receivable. The following table represents the assets and liabilities of consolidated VIEs recorded on the Company’s Condensed Consolidated Balance Sheets (Unaudited): June 30, December 31, (in thousands) 2026 2025 Consolidated VIE assets Restricted cash $ 65,255 $ 85,767 Loans Receivable at Fair Value 2,606,341 2,621,339 Total VIE assets 2,671,596 2,707,106 Consolidated VIE liabilities Secured financing (1) 308,620 204,833 Asset-backed notes at fair value 137,778 263,799 Asset-backed borrowings at amortized cost 1,947,970 1,947,937 Total VIE liabilities $ 2,394,368 $ 2,416,569 (1) Amounts exclude deferred financing costs. See Note 8, Borrowings for additional information. 5. Loans Held for Sale and Loans Sold Other Loan Sales - From time to time the Company has entered into agreements to sell certain populations of its personal loans, including non-performing loans originated as held for investment. The sold loans are accounted for under the fair value option. The loan sales qualify for sale accounting treatment and the Company derecognizes these loans from its Condensed Consolidated Balance Sheets (Unaudited) upon sale. Whole Loan Sale Program ‑ The Company enters into whole loan sale agreements with third parties in which the Company agrees to sell newly originated unsecured personal loans and secured personal loans. The originations of loans sold and held for sale during the three months ended June 30, 2026 was $ 25.9 million and the Company recorded a gain on sale of $ 1.4 million and servicing revenue of $ 1.5 million. The originations of loans sold and held for sale during the three months ended June 30, 2025 was $ 39.9 million and the Company recorded a gain on sale of $ 1.5 million and servicing revenue of $ 1.8 million. The originations of loans sold and held for sale during the six months ended June 30, 2026 was $ 51.7 million and the Company recorded a gain on sale of $ 2.8 million and servicing revenue of $ 3.2 million. The originations of loans sold and held for sale during the six months ended June 30, 2025 was $ 72.2 million and the Company recorded a gain on sale of $ 3.0 million and servicing revenue of $ 3.5 million. 6. Capitalized Software and Other Intangibles Capitalized software, net consists of the following: June 30, December 31, (in thousands) 2026 2025 Capitalized software, net: System development costs $ 209,275 $ 197,130 Acquired developed technology 48,500 48,500 Accumulated amortization ( 203,398 ) ( 188,933 ) Total capitalized software, net $ 54,377 $ 56,697 Capitalized software, net Amortization of system development costs and acquired developed technology for the three months ended June 30, 2026 and 2025 was $ 7.3 million and $ 9.0 million, respectively. System development costs capitalized in the three months ended June 30, 2026 and 2025 were $ 6.3 million and $ 6.6 million, respectively. Amortization of system development costs and acquired developed technology for the six months ended June 30, 2026 and 2025 was $ 14.9 million and $ 18.3 million, respectively. System development costs capitalized in the six months ended June 30, 2026 and 2025 were $ 12.9 million and $ 12.4 million, respectively. Acquired developed technology was $ 48.5 million and is related to the acquisition of Hello Digit, Inc. on December 22, 2021. 10 Intangible Assets The gross carrying amount and accumulated amortization, in total and by major intangible asset class are as follows: June 30, December 31, (in thousands) 2026 2025 Intangible assets: Member relationships $ 34,500 $ 34,500 Trademarks 5,626 5,626 Other 3,000 3,000 Accumulated amortization ( 30,569 ) ( 28,125 ) Total intangible assets, net $ 12,557 $ 15,001 Amortization of intangible assets was $ 1.2 million for each of the three months ended June 30, 2026 and 2025. Amortization of intangible assets was $ 2.4 million for each of the six months ended June 30, 2026 and 2025. Expected future amortization expense for intangible assets as of June 30, 2026 is as follows: (in thousands) Fiscal Years 2026 (remaining six months) $ 2,485 2027 4,929 2028 4,780 2029 — 2030 — 2031 — Thereafter — Total (1) $ 12,194 (1) Excludes indefinite lived intangible assets. 7. Other Assets Other assets consist of the following: June 30, December 31, (in thousands) 2026 2025 Fixed assets Total fixed assets $ 41,442 $ 41,355 Accumulated depreciation ( 39,600 ) ( 39,282 ) Total fixed assets, net $ 1,842 $ 2,073 Other Assets Prepaid expenses $ 11,291 $ 11,647 Deferred tax assets, net 63,761 68,111 Current tax assets 1,519 3,391 Receivable from banking partner 6,879 4,686 Derivative asset — ( 1,249 ) Other 16,701 15,032 Total other assets $ 101,993 $ 103,691 Fixed Assets Depreciation and amortization expense related to fixed assets for the three months ended June 30, 2026 and 2025 was $ 0.3 million and $ 0.5 million, respectively, and for the six months ended June 30, 2026 and 2025 was $ 0.5 million, and $ 1.1 million, respectively. 11 8. Borrowings Secured Financing The following table presents information regarding the Company's Secured Financing facilities: June 30, 2026 December 31, 2025 Variable Interest Entity Facility Amount Maturity Date Balance Balance (in thousands) Oportun PLW Trust $ 367,741 September 1, 2028 $ 70,994 $ 73,078 Oportun PLW II Trust 337,100 August 1, 2028 83,494 68,916 Oportun PLW III Trust 187,500 April 1, 2028 65,077 35,051 Oportun PLW IV Trust 246,750 October 1, 2029 84,594 22,339 Oportun PLW V Trust 50,000 July 1, 2030 — — Total secured financing $ 1,189,091 $ 304,159 $ 199,384 Weighted average interest rate of the Secured financing is SOFR + 2.89 % as June 30, 2026 PLW V Facility On June 30, 2026, in connection with the closing of the Personal Loan Warehouse V Facility (PLW V), Oportun PLW V Trust, a subsidiary of the Company, entered into a loan and security agreement with certain lenders from time to time party thereto, and Wilmington Trust, National Association as collateral agent, administrative agent, paying agent, securities intermediary and depositary bank (the "PLW V Facility"). The PLW V Facility has a total commitment of $ 50.0 million. The facility has a three-year revolving period with a final maturity on July 1, 2030. Asset-backed Notes at Fair Value The following tables present information regarding asset-backed notes at fair value: June 30, 2026 Variable Interest Entity (3) Initial amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2021-C) 500,000 512,762 91,504 106,801 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 46,274 60,126 2.05 % 3 years Total asset-backed notes recorded at fair value $ 1,000,000 $ 1,025,521 $ 137,778 $ 166,927 December 31, 2025 Variable Interest Entity (3) Initial amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2021-C) $ 500,000 $ 512,762 $ 167,214 $ 184,737 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 96,585 112,148 2.06 % 3 years Total asset-backed notes recorded at fair value $ 1,000,000 $ 1,025,521 $ 263,799 $ 296,885 (1) The current balances are measured at fair value for asset-backed notes recorded at fair value. (2) Includes the unpaid principal balance of loans receivable, the balance of required reserve funds, cash, cash equivalents and restricted cash pledged by the Company. (3) Maturity dates for Asset-backed Notes at Fair Value are not reflected in the above tables as the related securitizations provide for variable monthly repayments that may result in repayment prior to the stated maturity dates. 12 Asset-backed Borrowings at Amortized Cost The following table represents information regarding the Company's asset-backed notes and asset-backed borrowings at amortized cost: June 30, 2026 Asset-backed Borrowings at Amortized Cost (5) Initial amount (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Oportun Issuance Trust 2026-A 484,990 502,450 482,573 508,985 5.25 % 2 years Oportun Issuance Trust 2025-D 441,225 452,206 438,880 458,165 5.69 % 2 years Oportun Issuance Trust 2025-C 538,490 552,692 535,952 559,579 5.23 % 2 years Oportun Issuance Trust 2025-B 439,250 450,802 437,339 456,344 5.57 % 2 years Oportun Issuance Trust 2024-2 223,250 236,119 53,226 63,684 9.84 % N/A Other Asset Backed Borrowings (4) N/A N/A 140,483 126,234 N/A N/A Total asset-backed borrowings at amortized cost: $ 2,127,205 $ 2,194,269 $ 2,088,453 $ 2,172,991 December 31, 2025 Asset-backed Borrowings at Amortized Cost (5) Initial amount (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Oportun Issuance Trust 2025-D $ 441,225 $ 452,206 $ 438,410 $ 461,986 5.69 % 2 years Oportun Issuance Trust 2025-C 538,490 552,692 535,394 559,689 5.23 % 2 years Oportun Issuance Trust 2025-B 439,250 450,802 436,850 456,345 5.57 % 2 years Oportun Issuance Trust 2025-A 425,107 439,775 422,580 445,314 6.15 % 1 year Oportun Issuance Trust 2024-2 223,250 236,119 86,077 102,446 8.34 % N/A Oportun Issuance Trust 2024-1 199,500 211,002 28,626 33,842 12.07 % N/A Other Asset Backed Borrowings (4) N/A N/A 244,712 222,865 N/A N/A Total asset-backed borrowings at amortized cost: $ 2,266,822 $ 2,342,596 $ 2,192,649 $ 2,282,487 (1) Initial amount issued includes any notes retained by the Company as applicable. The current balances are measured at amortized cost. (2) Includes the unpaid principal balance of loans receivable, the balance of required reserve funds, cash, cash equivalents and restricted cash pledged by the Company. (3) Weighted average interest rate excludes notes retained by the Company. There were no notes retained by the Company as of June 30, 2026. (4) Consists of forward flow whole loan sales that do not qualify as sales for accounting purposes. (5) Maturity dates for Asset-backed Borrowings at Amortized Cost are not reflected in the above tables as the related securitizations provide for variable monthly repayments that may result in repayment prior to the stated maturity dates. Corporate Financing The following table presents information regarding the Company's Corporate financing: June 30, 2026 December 31, 2025 Entity Original Balance Maturity Date Interest Rate Balance (1) Balance (1) (in thousands) Oportun Financial Corporation 235,000 November 14, 2028 15.00 % per annum 119,891 143,663 Total Corporate Financing $ 235,000 $ 119,891 $ 143,663 (1) Balances are measured at amortized cost. As of June 30, 2026 and December 31, 2025, the outstanding principal balance was $ 135.0 million and $ 165.0 million, respectively. 13 On October 23, 2024, the Company entered into a Credit Agreement with certain affiliates of Neuberger and McLaren Harbor LLC, pursuant to which the Company borrowed $ 235 million of senior secured term loans (the “Credit Agreement” and the “Term Loans”). The funding of the Term Loans (the “Term Loan Closing”) was subject to certain closing conditions, including the repayment of the Acquisition Financing and the Company's then existing senior secured term loans under the credit agreement dated as of September 14, 2022, by and among the Company, Wilmington Trust, National Association, and the lenders party thereto, as amended ("Original Credit Agreement"), in addition to the completion of the sale of the Company's credit cards receivable portfolio, which occurred on November 12, 2024. The Term Loan Closing occurred on November 14, 2024, and the Original Credit Agreement was extinguished, paid in full, and the Acquisition Financing was terminated and the associated outstanding loan balance was repaid in full. The Credit Agreement contains certain representations, warranties and covenants, as well as indemnification obligations, in respect of the Company and certain of its subsidiaries, subject to specified exceptions and qualifications contained in the Credit Agreement. During the three months ended June 30, 2026, the Company made voluntary principal prepayments of $30.0 million, reducing the outstanding principal balance. In connection with the prepayments, the Company incurred prepayment premiums totaling $1.5 million and recognized losses on the partial extinguishment of debt totaling $3.6 million, both of which were recorded in Interest expense. The obligations under the Credit Agreement are secured by the assets of the Company and certain of its subsidiaries guaranteeing the Term Loans, including pledges of the equity interests of certain subsidiaries that are directly or indirectly owned by the Company, subject to customary exceptions. Under the Credit Agreement, the Company issued warrants, at an exercise price of $ 0.01 per share, to affiliates of Neuberger and McLaren Harbor LLC to purchase 4,853,006 shares of the Company’s common stock. See Note 10, Stockholders' E q u i ty for additional information on warrants issued by the Company. The Credit Agreement contains financial covenants requiring the maintenance of minimum liquidity and a maximum adjusted EBITDA-based corporate leverage covenant, together with other customary affirmative and negative covenants, representations and warranties and events of default. Debt Covenants - As of June 30, 2026, and December 31, 2025, the Company was in compliance with all covenants and requirements of the Secured financing, Corporate financing facilities and asset-backed notes. 9. Other Liabilities Other liabilities consist of the following: June 30, December 31, (in thousands) 2026 2025 Accounts payable $ 5,882 $ 6,273 Accrued compensation 25,296 23,174 Accrued expenses 8,912 7,054 Accrued interest 10,620 11,164 Amount due to whole loan buyer 1,283 1,400 Current tax liabilities 4,615 4,055 Other 3,287 3,691 Total other liabilities $ 59,895 $ 56,811 14 10. Stockholders' Equity Preferred Stock - The board of directors of the Company (the “Board”) has the authority, without further action by the Company's stockholders, to issue up to 100,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board. There were no shares of undesignated preferred stock issued or outstanding as of June 30, 2026 or December 31, 2025. Common Stock - As of June 30, 2026 and December 31, 2025, the Company was authorized to issue 1,000,000,000 shares of common stock with a par value of $ 0.0001 per share. As of June 30, 2026, 46,222,056 and 45,950,033 shares were issued and outstanding, respectively, and 272,023 shares were held in treasury stock. As of December 31, 2025, 44,709,065 and 44,437,042 shares were issued and outstanding, respectively, and 272,023 shares were held in treasury stock. Warrants - In 2023, pursuant to the Original Credit Agreement, the Company issued detachable warrants to the lenders to purchase an aggregate of 4,193,453 shares of the Company’s common stock at an exercise price of $ 0.01 per share. On November 14, 2024, pursuant to the Credit Agreement, the Company issued additional detachable warrants to the lenders to purchase 4,853,006 shares of the Company’s common stock at an exercise price of $ 0.01 . In May 2025 and June 2026, 6,363,671 and 94,413 warrants were exercised, respectively, to purchase common stock. As of June 30, 2026 and December 31, 2025, the Company had outstanding and exercisable detachable warrants of 2,588,375 , and 2,682,788 , respectively. 11. Equity Compensation and Other Benefits The Company's stock-based plans are described and informational disclosures are provided in the Notes to the Consolidated Financial Statements included in the Annual Report. Stock-based Compensation - Total stock-based compensation expense included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Technology and facilities $ 857 $ 758 $ 1,652 $ 1,474 Sales and marketing 30 35 63 75 Personnel 2,052 1,915 5,367 3,990 Total stock-based compensation (1) $ 2,939 $ 2,708 $ 7,082 $ 5,539 (1) Amounts shown are net of $ 0.2 million and $ 0.3 million of capitalized stock-based compensation for the three and six months ended June 30, 2026, respectively, and net of $ 0.2 million and $ 0.4 million of capitalized stock-based compensation for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, and December 31, 2025, the Company’s total unrecognized compensation cost related to unvested stock-based option awards granted to employees was insignificant and $ 0.2 million, respectively, and was expected to be recognized over a weighted-average vesting period of less than one year . As of June 30, 2026 and December 31, 2025, the Company's total unrecognized compensation cost related to time-based and performance-based unvested restricted stock unit awards granted to employees was $ 21.0 million and $ 20.8 million, respectively, which will be recognized over a weighted average vesting period of approximately 2.0 years and 1.8 years, respectively. Cash flows from the tax benefits for tax deductions resulting from the exercise of stock options in excess of the compensation expense recorded for those options (excess tax benefits) are required to be classified as cash from financing activities. The Company recognized $ 1.9 million and $ 1.6 million of income tax benefit in its Condensed Consolidated Statements of Operations (Unaudited) related to stock-based compensation expense during the six months ended June 30, 2026 and 2025, respectively. Additionally, the total income tax benefit recognized in the income statement for share-based compensation exercises was insignificant and $ 0.2 million for the three and six months ended June 30, 2026. The total income tax benefit recognized in the income statement for share-based compensation exercises was $ 0.1 million and $ 0.3 million for the three and six months ended June 30, 2025, respectively. 12. Revenue Interest Income - Total interest income included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Interest income Interest on loans $ 216,918 $ 215,816 $ 429,903 $ 433,345 Fees on loans 2,356 2,465 5,036 5,157 Total interest income 219,274 218,281 434,939 438,502 15 Non-interest Income - Total non-interest income included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Non-interest income Servicing fees $ 1,531 $ 3,604 $ 3,204 $ 7,142 Subscription revenue 5,164 4,842 9,716 9,886 Interest on member accounts 4,134 4,566 7,939 8,988 Gain on loan sales and other 3,125 3,053 6,194 5,732 Total non-interest income $ 13,954 $ 16,065 $ 27,053 $ 31,748 13. Income Taxes For the three and six months ended June 30, 2026 and 2025, the Company calculates its year-to-date income tax expense (benefit) by applying the estimated annual effective tax rate to the year-to-date income from operations before income taxes and adjusts the income tax expense (benefit) for discrete tax items recorded in the period. During the three and six months ended June 30, 2026, the Company recorded income tax expense of $ 7.1 million and $ 8.3 million, respectively, related to continuing operations, representing an effective tax rate of 45.4 % and 43.3 %, respectively. Income tax expense for the three and six months ended June 30, 2025 was $ 3.2 million and $ 6.6 million, representing an effective income tax rate of 32.0 % and 28.5 %, respectively. Income tax expense increased by $ 3.9 million or 119.3 %, from $ 3.2 million expense for the three months ended June 30, 2025 to $ 7.1 million expense for the three months ended June 30, 2026, primarily as a result of having increased pretax income, resolving a state tax settlement, and increasing the reserve for unrecognized tax benefits for the three months ended June 30, 2026. Income tax expense increased by $ 1.7 million or 25.3 %, from $ 6.6 million for the six months ended June 30, 2025 to $ 8.3 million for the six months ended June 30, 2026, primarily as a result of resolving a state tax settlement and increasing the reserve for unrecognized tax benefits for the six months ended June 30, 2026. The Company's effective tax rates for the three and six months ended June 30, 2026 and 2025 differ from the statutory tax rates primarily due to the impacts of resolving a state tax settlement, increasing the reserve for unrecognized tax benefits, the research and development tax credit, and stock-based compensation. In December 2021, the Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion Profit Shifting released Model Global Anti-Base Erosion rules (“Model Rules”) under Pillar Two. The Model Rules set forth the “common approach” for a Global Minimum Tax at 15 percent for multinational enterprises with a turnover of more than 750 million euros. Rules under Pillar Two were effective from January 1, 2024. Pillar Two rules did not have a material impact on the Company's Condensed Consolidated Statements of Operations (Unaudited). 14. Fair Value of Financial Instruments Financial Instruments at Fair Value The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown: June 30, 2026 December 31, 2025 (in thousands) Unpaid Principal Balance Fair Value Unpaid Principal Balance Fair Value Assets Loans Receivable at Fair Value $ 2,648,522 $ 2,736,750 $ 2,779,608 $ 2,874,092 Liabilities Asset-backed notes $ 139,811 $ 137,778 $ 268,291 $ 263,799 The Company calculates the fair value of the asset-backed notes using independent pricing services and broker price indications, which are based on quoted prices for identical or similar notes, which are Level 2 input measures. The Company primarily uses a discounted cash flow model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect management’s best estimates of the assumptions a market participant would use to calculate fair value. The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for Loans Receivable at Fair Value. The personal loans receivable balance at fair value as of June 30, 2026, consists of $ 2,465.0 million of unsecured personal loans receivable and $ 271.7 million of secured personal loans receivable. 16 June 30, 2026 December 31, 2025 Personal Loans Receivable Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average (2) Remaining cumulative charge-offs (1) 10.13 % 92.90 % 12.22 % 10.10 % 50.58 % 12.28 % Remaining cumulative prepayments (1) 3.74 % 38.08 % 23.67 % 0.00 % 38.29 % 24.90 % Average life (years) 0.39 1.30 1.04 0.28 1.64 1.06 Discount rate 6.30 % 6.30 % 6.30 % 6.26 % 6.26 % 6.26 % (1) Figure disclosed as a percentage of outstanding principal balance. (2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms). Fair value adjustments related to financial instruments where the fair value option has been elected are recorded through earnings for the six months ended June 30, 2026 and 2025. Certain unobservable inputs may (in isolation) have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input. For personal loans receivable, the Company developed an internal model to estimate the fair value of loans receivable held for investment. To generate future expected cash flows, the model combines receivable characteristics with assumptions about borrower behavior based on the Company’s historical loan performance. These cash flows are then discounted using a required rate of return that management estimates would be used by a market participant. The Company had derivative instruments in connection with its bank partnership program with Pathward, N.A. ("Pathward") related to excess interest proceeds it expected to receive on loans retained by Pathward. Based on the agreement underlying the bank partnership program, for all loans originated and retained by Pathward, Pathward received a fixed interest rate. Under an amendment dated September 26, 2025 to the program agreement, the Company purchases 100 % of Pathward originated loans and has purchased all loans previously owned by Pathward. As a result, the derivative instrument as of December 31, 2025 was $( 1.2 ) million; there was no outstanding derivative balance as of June 30, 2026. For the derivative, the Company used a base set of cash flows derived from historical data and management assumptions. From this base set of cash flows, funds that were projected to be released to the Company according to the contractual terms outlined in the waterfall agreement were calculated on an aggregate basis then discounted at a rate that was representative of equity yield. The table below presents a reconciliation of Loans Receivable at Fair Value on a recurring basis using significant unobservable inputs: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Balance – beginning of period $ 2,771,836 $ 2,770,486 $ 2,874,092 $ 2,778,523 Principal disbursements 687,548 658,955 1,310,532 1,318,353 Principal and interest payments from members ( 618,465 ) ( 582,313 ) ( 1,234,805 ) ( 1,163,920 ) Gross charge-offs ( 98,581 ) ( 100,745 ) ( 206,813 ) ( 198,942 ) Net increase (decrease) in fair value ( 5,588 ) 9,087 ( 6,256 ) 21,456 Balance – end of period $ 2,736,750 $ 2,755,470 $ 2,736,750 $ 2,755,470 17 Financial Instruments Disclosed But Not Carried at Fair Value The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy: June 30, 2026 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 139,590 $ 139,590 $ 139,590 $ — $ — Restricted cash 72,839 72,839 72,839 — — Liabilities Accounts payable 5,882 5,882 5,882 — — Secured financing (Note 8) 308,620 308,321 — 308,321 — Asset-backed borrowings at amortized cost (Note 8) 2,083,494 2,076,972 — 1,950,738 126,234 Corporate financing (Note 8) 135,000 134,053 — 134,053 — December 31, 2025 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 105,525 $ 105,525 $ 105,525 $ — $ — Restricted cash 93,409 93,409 93,409 — — Liabilities Accounts payable 6,273 6,273 6,273 — — Secured financing (Note 8) 204,833 205,152 — 205,152 — Asset-backed borrowings at amortized cost (Note 8) 2,181,902 2,184,392 1,961,525 222,867 Corporate financing (Note 8) 165,000 165,836 — 165,836 — The Company uses the following methods and assumptions to estimate fair value: • Cash, cash equivalents, restricted cash and accounts payable ‑ The carrying values of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash and accounts payable, approximate Level 1 fair values of these financial instruments due to their short-term nature. • Secured financing and corporate financing ‑ The fair values of the Secured financing and Corporate financing facilities have been calculated using discount rates equivalent to the weighted-average market yield of comparable debt securities, which is a Level 2 input measure. • Asset-backed borrowings at amortized cost ‑ The fair values of the asset-backed borrowings at amortized cost include both securitizations carried at amortized cost and secured borrowings. We obtain indicative pricing on comparable debt securities for securitizations carried at amortized cost, which is a Level 2 input measure. Fair values of secured borrowings included in the asset-backed borrowings at amortized cost have been calculated by discounting the contractual cash flows at the interest rate the Company estimates such arrangement would bear if executed in the current market, which is a Level 3 input measure. There were no transfers in or out of Level 3 assets and liabilities for the three and six months ended June 30, 2026 and 2025. 15. Leases, Commitments and Contingencies Leases - The Company’s leases are primarily for real property consisting of retail locations and office space and have remaining lease terms of less than 6 years. The Company has elected the practical expedient to keep leases with terms of 12 months or less off the balance sheet as no recognition of a lease liability and a right-of-use asset is required. Operating lease expense is recognized on a straight-line basis over the lease term in “Technology and facilities” in the Condensed Consolidated Statements of Operations (Unaudited). All of the Company’s existing lease arrangements are classified as operating leases. At the inception of a contract, the Company determines if the contract is or contains a lease. At the commencement date of a lease, the Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing the Company’s right to use the underlying asset for the duration of the lease term. The Company’s leases include options to extend or terminate the arrangement at the end of the original lease term. The Company generally does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. Variable lease payments and short-term lease costs were deemed immaterial. The Company’s leases do not provide an explicit rate. The Company uses its contractual borrowing rate to determine lease discount rates. 18 As of June 30, 2026, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2026 (remaining six months) $ 3,096 2027 4,587 2028 3,021 2029 1,772 2030 1,044 2031 486 Thereafter — Total lease payments 14,006 Imputed interest ( 1,489 ) Total leases $ 12,517 Sublease income 2026 (remaining six months) $ ( 355 ) 2027 ( 177 ) 2028 — 2029 — 2030 and thereafter — Total lease payments ( 532 ) Imputed interest 18 Total sublease income $ ( 514 ) Net lease liabilities $ 12,003 Weighted average remaining lease term 3.2 years Weighted average discount rate 5.82 % As of December 31, 2025, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2026 6,683 2027 3,551 2028 1,977 2029 903 2030 382 Thereafter 48 Total lease payments 13,544 Imputed interest ( 1,361 ) Total leases $ 12,183 Sublease income 2026 ( 604 ) 2027 ( 153 ) 2028 — 2029 — 2030 — Total lease payments ( 757 ) Imputed interest 42 Total sublease income $ ( 715 ) Net lease liabilities $ 11,468 Weighted average remaining lease term 2.6 years Weighted average discount rate 5.73 % Rental expenses under operating leases for the three and six months ended June 30, 2026, were $ 2.3 million, and $ 4.5 million, respectively, and for the three and six months ended June 30, 2025, were $ 2.5 million, and $ 5.0 million, respectively. 19 Purchase Commitment ‑ The Company has commitments to purchase information technology and communication services in the ordinary course of business, with various terms through 2029. These amounts are not reflective of the Company’s entire anticipated purchases under the related agreements; rather, they are determined based on the non-cancelable amounts to which the Company is contractually obligated. The Company’s purchase obligations are $ 15.2 million for the remainder of 2026, $ 10.7 million in 2027, $ 4.3 million in 2028, with no material obligations in or beyond 2029. Bank Partnership Program and Servicing Agreement - The Company entered into a Program Management Agreement with Column National Association ("Column"), a national banking association, on June 30, 2026, establishing a new bank partnership lending program. Under the agreement, Column will originate certain unsecured personal loans for consumers in select states, and the Company will provide the platform and related services, including marketing, application processing, fraud-prevention, servicing and program-administration services, subject to Column’s oversight and control and compliance with applicable law. The agreement permits the Company to purchase loans originated by Column, other than loans retained by Column, and includes certain exclusivity, compliance, oversight, audit, reporting, reserve, information-security, indemnification, termination and wind-down provisions. The agreement has an initial term of four years and renews automatically for successive one-year periods unless either party provides timely notice of non-renewal. As of and for the three and six months ended June 30, 2026, the Company had no loan purchases or other transactions to report under this program. The Company entered into a bank partnership program with Pathward, on August 11, 2020, which was subsequently amended and restated effective August 11, 2025. Effective October 1, 2025, the Company began purchasing from Pathward 100 % of all newly originated loans. The amendment also required the Company to acquire Pathward’s existing retained loan portfolio, with an initial purchase of loans that are current or < 30 days delinquent on October 3, 2025, totaling approximately $ 115.0 million of unpaid principal and accrued interest. The remaining portfolio was purchased on February 4, 2026. Lending under the partnership was launched in August 2021 and as of June 30, 2026, the Company has a commitment to purchase an additional $ 45.8 million of program loans based on originations through June 30, 2026. Unfunded Loan Commitments - Unfunded loan commitments at June 30, 2026 and December 31, 2025 were insignificant. Mexico Value-added Tax - In October 2023, the Company's Mexico subsidiary received notice from Mexico's Servicio de Administración Tributaria, the Mexican federal tax authority, for claims related to the alleged underpayment of value-added tax, including inflationary adjustments, fines and penalties for tax years 2017-2019. The Company disputes that there were underpayments in any of those years, and intends to pursue all available administrative and legal avenues of appeal to assert its position. No accrual related to this matter has been recorded as of June 30, 2026, as the Company believes it is not probable to be incurred. Litigation From time to time, the Company may bring or be subject to other legal proceedings and claims in the ordinary course of business, including legal proceedings with third parties asserting infringement of their intellectual property rights, consumer litigation, and regulatory proceedings. The Company is not presently a party to any other legal proceedings that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, financial condition, cash flows or results of operations. 16. Related Party Transactions On September 14, 2022, the Company entered into the Original Credit Agreement to borrow $ 150.0 million through a senior secured term loan. On March 10, 2023, the Company upsized and amended the Original Credit Agreement and borrowed an additional $ 75.0 million over four separate tranches from March 10, 2023 to June 30, 2023. In connection with the amendment of the Original Credit Agreement, the Company issued warrants to the lenders with each tranche to purchase a total of 4,193,453 shares of its common stock at an exercise price of $ 0.01 per share. On October 23, 2024, the Company entered into the Credit Agreement with certain affiliates of Neuberger and McLaren Harbor LLC, pursuant to which the Company borrowed $ 235 million through a senior secured term loan. Upon the closing of the Term Loan, the Company repaid all amounts due under the Original Credit Agreement in full. In connection with the Credit Agreement, the lenders retained the previously issued warrants and the Company issued the Neuberger affiliated lenders additional warrants to purchase a total of 2,426,503 shares of its common stock at an exercise price of $ 0.01 per share. Accordingly, Neuberger is deemed to be a beneficial owner of greater than ten percent of the Company's outstanding stock pursuant to generally accepted accounting principles. During the year ended December 31, 2025, 3,937,168 warrants were exercised by Neuberger to purchase common stock, and 94,413 warrants were exercised during the six months ended June 30, 2026. As of June 30, 2026 and December 31, 2025, Neuberger held outstanding and exercisable detachable warrants of 2,588,375 and 2,682,788 , respectively. See Note 8, Borrowings for additional information on the Corporate financing facility and Note 10, Stockholders' Equity for additional information on the warrants. On June 16, 2023, the Company entered into a forward flow whole loan sale agreement with Neuberger to sell up to $ 300.0 million of its personal loan originations over the subsequent twelve months. On April 26, 2024, the agreement was amended to extend the term and revised the commitment amount to $ 370.9 million of personal loan originations. The Company has fulfilled its commitment under the agreement and will continue to service these loans. As part of this agreement, during the six months ended June 30, 2026, and as of December 31, 2025, no loans were transferred. In addition, on April 2, 2025, the Company entered into a loan and security agreement with Neuberger, and certain other lenders, which was amended on October 8, 2025. The amended PLW III facility has a two-year revolving period with a final maturity of April 1, 2028 and a borrowing capacity of $ 187.5 million. See Note 8, Borrowings , for additional information regarding our secured financings The following table represents the interest income earned from our loans receivable portfolio and interest expense on our debt instruments recorded on the Company’s Condensed Consolidated Statements of Operations (Unaudited) related to transactions with Neuberger. 20 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Interest income Secured borrowings 5,228 13,691 11,474 29,960 Total interest income $ 5,228 $ 13,691 $ 11,474 $ 29,960 Interest expense Corporate financing $ 7,701 $ 5,107 $ 11,486 $ 10,340 Secured borrowings ( 3,368 ) 5,419 ( 3,351 ) 11,842 Secured financing 462 419 667 419 Total interest expense $ 4,795 $ 10,945 $ 8,802 $ 22,601 As of June 30, 2026 and December 31, 2025, Loans Receivable at Fair Value underlying the Secured borrowing were $ 57.4 million and $ 103.5 million, respectively, and Loans Receivable at Fair Value underlying the Secured financing were $ 14.9 million and $ 8.1 million respectively. The Company had Asset-backed borrowings at amortized cost of $ 65.8 million, Corporate financing of $ 119.9 million, and Secured financing of $ 13.2 million due to Neuberger as of June 30, 2026 and $ 116.9 million, $ 71.8 million and $ 7.2 million, respectively, due as of December 31, 2025. The Company also had an insignificant amount of Interest and fee receivable, net and Other liabilities in its Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2026, related to these transactions. The Company believes that it has executed all the transactions described herein on terms no less favorable to it than it could have obtained from unaffiliated third parties. 17. Segment Reporting Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is considered to be the CODM. The Company has one reportable segment. The segment provides unsecured and secured borrowings, savings and budgeting products to its members. The Company derives revenue within North America and manages the business activities on a consolidated basis. Interest income is derived from the Company's lending products and includes loan interest and associated fees, while non-interest income is largely driven by the Company's savings product and includes subscription revenue, and interest on member accounts. Net income is the primary measure of segment profit and loss reviewed by CODM to assess business performance and strategy on allocation of resources, such as new product development and management’s compensation. The CODM also uses Net Income to review and approve the Company’s operating budget and financial forecasts. Net income is reported on the unaudited Condensed Consolidated Statement of Operations as consolidated net income. The measure of segment assets is presented on the unaudited Condensed Consolidated Balance Sheets as Total Assets. 18. Subsequent Events None. 21