Financial Data and Key Metrics Changes - The company reported a 40% year-on-year growth in loan originations, reaching $2.6 billion in Q4 2025, and a 33% increase for the full year to nearly $10 billion [4][13] - Return on tangible common equity (ROTCE) tripled to almost 12% in Q4, with a full-year ROTCE of 10.2% [4][21] - Non-interest income grew by 38% to $103 million, while net interest income increased by 14% to $163 million, marking an all-time high [15][16] - The net interest margin was reported at 6%, up 56 basis points year-over-year [16] Business Line Data and Key Metrics Changes - Marketplace revenue increased by 36% year-on-year, driven by higher loan sales pricing and volumes [6] - The held-for-sale extended seasoning portfolio grew to $1.8 billion, consistent with the strategy to expand the balance sheet [15] - The LevelUp Savings product is growing by double digits, driving 20%-30% more logins compared to legacy products [7][8] Market Data and Key Metrics Changes - The company is seeing stable performance and consistency in borrower behavior, with delinquency and charge-off metrics well below competitors [17][72] - The balance sheet grew to $11.6 billion, up 9% year-over-year, indicating strong liquidity and capital position [19] Company Strategy and Development Direction - The company plans to enter the $500 billion home improvement financing market, leveraging its competitive strengths in funding reliability and underwriting [9][10] - A new brand launch is expected later in the year to reflect the company's ambitions [11] - The transition to fair value accounting is aimed at simplifying financials and aligning revenue recognition with losses [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, assuming a healthy economy with stable macroeconomic conditions [21][27] - The company anticipates continued strong credit performance and plans to ramp up marketing investments to fuel growth in 2026 [11][27] - Management noted that the competitive landscape remains challenging but believes in the company's ability to compete effectively [71][72] Other Important Information - The company announced a $100 million share repurchase program, deploying approximately $12 million in Q4 [20] - The effective tax rate for the quarter was 16.9%, with expectations for a normalized rate of approximately 24% going forward [21] Q&A Session Summary Question: Expense trajectory and marketing investments - Management indicated that the increase in marketing expenses is part of planned investments to drive future growth, with expectations for continued spending in Q1 [33][34] Question: Efficiency ratio outlook - Management confirmed that the efficiency ratio may rise in 2026 due to the transition to fair value accounting but expects it to normalize afterward [42][43] Question: Fair value adjustments and discount rates - Management clarified that the discount rate for new products will depend on the mix of loans, with expectations for stable annual loss rates [50][88] Question: Competitive environment and credit dynamics - Management noted a healthy marketplace with ample capital, while maintaining a disciplined approach to credit [70][72] Question: Macroeconomic outlook and tax refunds - Management acknowledged the potential impact of larger-than-normal tax refunds on payment rates and loan demand but remains confident in their guidance [79][85]

Financial Data and Key Metrics Changes - The company reported a 40% year-on-year growth in loan originations, reaching $2.6 billion in Q4 2025, and a 33% increase for the full year to nearly $10 billion [4][12] - Return on tangible common equity (ROTCE) tripled to almost 12% in Q4, with a full-year ROTCE of 10.2% [4][18] - Non-interest income grew by 38% to $103 million, while net interest income increased by 14% to $163 million, marking an all-time high [13][14] Business Line Data and Key Metrics Changes - Marketplace revenue increased by 36% year-on-year, driven by higher sales volumes and improved loan pricing [6] - The held-for-sale extended seasoning portfolio grew to $1.8 billion, consistent with the strategy to expand the balance sheet [12] - The personal loan segment accounted for over 15% of new accounts, with borrowers accumulating average balances of over $15,000 [7] Market Data and Key Metrics Changes - The company noted strong credit performance, with delinquency and charge-off metrics well below competitors [15] - The balance sheet grew to $11.6 billion, up 9% year-on-year, indicating a competitive strength in generating recurring revenue [16] Company Strategy and Development Direction - The company plans to enter the $500 billion home improvement financing market, leveraging its capabilities and partnerships [9] - A new brand launch is expected later in the year to reflect the company's ambitions [10] - The transition to fair value accounting aims to simplify financials and align revenue recognition with losses [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, assuming a healthy economy for 2026 [18] - The company anticipates continued strong credit performance and marketing investments to drive growth [10][23] - Management acknowledged the competitive landscape but emphasized the company's ability to maintain discipline and stability in credit performance [66][67] Other Important Information - The company initiated a $100 million share repurchase program, deploying approximately $12 million in Q4 [17] - The effective tax rate for the quarter was 16.9%, with expectations for a normalized rate of approximately 24% going forward [18] Q&A Session Summary Question: Expense trajectory and marketing investments - Management indicated that the increase in marketing spend is part of a strategy to ramp up capabilities for future growth, with expectations for continued investment in Q1 [29][31] Question: Efficiency ratio expectations - Management confirmed that the efficiency ratio may rise in 2026 due to the transition to fair value accounting but is expected to normalize afterward [38][39] Question: Impact of macroeconomic factors on loan demand - Management noted that larger than normal tax refunds could temporarily affect loan demand but are confident in their ability to manage through it [73][79] Question: Competitive environment and credit dynamics - Management described the marketplace as healthy with ample capital available, while also noting the competitive nature of the market [65][66] Question: AI initiatives and their impact - The company is leveraging AI across various departments to improve operational efficiency and customer experience, with over 60 initiatives underway [98][100]

Financial Data and Key Metrics Changes - In Q4 2025, loan originations grew by 40% year-on-year to $2.6 billion, with full-year originations increasing by 33% to nearly $10 billion [4][12] - Return on tangible common equity (ROTCE) nearly tripled to almost 12% in Q4, with full-year ROTCE at 10.2% [4][18] - Non-interest income rose by 38% to $103 million, while net interest income increased by 14% to $163 million, marking an all-time high [13][14] - Net interest margin improved to 6%, up 56 basis points year-on-year [14] Business Line Data and Key Metrics Changes - Marketplace revenue increased by 36% year-on-year, driven by higher loan sales pricing and volumes [5] - The held-for-sale extended seasoning portfolio grew to $1.8 billion, consistent with the strategy to expand the balance sheet [12] - Personal loan borrowers accounted for over 15% of new accounts, with average balances exceeding $15,000 for those who paid off their loans [7][8] Market Data and Key Metrics Changes - The company reported strong credit performance, with delinquency and charge-off metrics well below competitors [15] - The balance sheet grew to $11.6 billion, up 9% year-on-year, indicating a competitive strength in generating recurring revenue [16] Company Strategy and Development Direction - The company plans to enter the $500 billion home improvement financing market, leveraging its capabilities and partnerships [9] - A new brand launch is expected later in the year to reflect the company's ambitions [10] - The transition to fair value accounting aims to simplify financials and align revenue recognition with losses [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, expecting stable macroeconomic conditions throughout the year [18] - The company anticipates continued strong credit performance and marketing investments to drive growth [10][23] - Management noted that the competitive landscape remains challenging but believes in their ability to maintain discipline and outperform competitors [66] Other Important Information - The company initiated a $100 million share repurchase program, deploying approximately $12 million in Q4 [17] - The effective tax rate for the quarter was 16.9%, with expectations for a normalized rate of approximately 24% going forward [18] Q&A Session Summary Question: Expense trajectory and marketing investments - Management acknowledged increased marketing spend as part of planned investments for future growth, indicating that expenses may moderate in the second half of 2026 [29][33] Question: Efficiency ratio outlook - Management confirmed that the efficiency ratio may rise in 2026 due to transitional accounting impacts but expects it to normalize thereafter [38][39] Question: Fair value adjustments and discount rates - Management provided insights on how discount rates will evolve based on the mix of loans, indicating that longer-duration loans may carry higher rates [45][46] Question: Operating market and competitive environment - Management described the marketplace as healthy with ample capital available, while noting the competitive nature of the market remains unchanged [64][66] Question: Macroeconomic outlook and tax refunds - Management expects a larger than usual tax refund season, which may temporarily affect loan demand but is factored into their guidance [72][78]

Fourth Quarter 2025 Results JANUARY 28, 2026 Disclaimer Some of the statements in this presentation, including statements regarding our competitive advantages, loan and financial performance, business outlook, implications of the Fair Value Option accounting methodology, and demand for our loan programs, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forw ...