Financial Data and Key Metrics Changes - The company generated $2 billion in loan volume, a 21% increase year over year, reflecting strong demand from borrowers and loan buyers [5] - Total net revenue grew 20% to $218 million, while pre-provision net revenue increased 52% year over year to $74 million [6][18] - Net interest income reached an all-time high of $150 million, up 22% from the same quarter last year, driven by growth in the balance sheet and optimized funding costs [19] - The net interest margin improved to 6%, primarily due to reduced deposit funding costs [20] Business Line Data and Key Metrics Changes - Non-interest income was $68 million, up 17% year over year, driven by better loan sales pricing [19] - The provision for credit losses was $58 million, compared to $32 million in the same quarter last year, reflecting increased qualitative reserves [23][24] - The net charge-off ratio for the held-for-investment loan portfolio improved to 4.8%, down from 6.9% in the same quarter last year [25] Market Data and Key Metrics Changes - The company secured an investment-grade rating from Fitch for its first rated structured certificate deal, closing a $100 million transaction with a top insurance company [6][10] - The structured certificates program has crossed $5 billion since launch, supporting higher loan sales pricing [9] Company Strategy and Development Direction - The company is focusing on penetrating the large credit card refinance opportunity and expanding marketing channels to accelerate growth [11][12] - The acquisition of Cushion, an AI-powered spending intelligence app, aims to enhance the mobile experience and feature set [7][14] - The company is investing in a new headquarters, taking advantage of lower real estate prices [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the company's strong fundamentals and ability to deliver value [15] - The company anticipates originations of $2.1 billion to $2.3 billion in Q2, representing a year-over-year increase of 16% to 27% [26] - Management expects pre-provision net revenue in the range of $70 million to $80 million for Q2, up 27% to 46% year over year [26] Other Important Information - The company has created significant operating leverage, with revenue growth of 20% compared to a 9% increase in non-interest expenses [22] - The company is carefully monitoring the macro environment and has increased its qualitative provision in preparation for potential economic downturns [8][16] Q&A Session Summary Question: Update on investor demand and marketplace pricing - Management indicated that despite broader market noise, they are maintaining pricing discipline and have a pipeline of new buyers [29][30] Question: Clarification on PPNR guidance for Q2 - Management confirmed that the guidance reflects increased marketing investments and potential offsets on the provision line [33][36] Question: Insights on loan demand and consumer behavior - Management noted that Q2 typically sees a seasonal uptick in originations, with positive responses to new marketing initiatives [81] Question: Discussion on the insurance market as a buyer of loans - Management highlighted the massive opportunity in the insurance market, emphasizing the need for rated products to attract insurance capital [86][87]