Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 08, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-39050 | ||
Entity Registrant Name | OPORTUN FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-3361983 | ||
Entity Address, Address Line One | 2 Circle Star Way | ||
Entity Address, City or Town | San Carlos, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94070 | ||
City Area Code | 650 | ||
Local Phone Number | 810-8823 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | OPRT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 103.8 | ||
Entity Common Stock, Shares Outstanding | 33,419,851 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement for the 2023 Annual Meeting of Stockholders to be filed subsequently are incorporated by reference into Part III of this Form 10-K. | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001538716 | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Francisco, CA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 98,817 | $ 130,959 |
Restricted cash | 105,000 | 62,001 |
Loans receivable at fair value | 3,143,653 | 2,386,807 |
Interest and fees receivable, net | 31,796 | 20,916 |
Capitalized software and other intangibles, net | 139,801 | 131,181 |
Goodwill | 0 | 104,014 |
Right of use assets - operating | 30,448 | 38,403 |
Other assets | 64,180 | 72,344 |
Total assets | 3,613,695 | 2,946,625 |
Liabilities | ||
Secured financing | 317,568 | 393,889 |
Asset-backed notes at fair value | 2,387,674 | 1,651,706 |
Acquisition and corporate financing | 222,879 | 114,092 |
Lease liabilities | 37,947 | 47,699 |
Other liabilities | 100,028 | 135,358 |
Total liabilities | 3,066,096 | 2,342,744 |
Stockholders' equity | ||
Common stock, $0.0001 par value - 1,000,000,000 shares authorized at December 31, 2022 and December 31, 2021; 33,626,630 shares issued and 33,354,607 shares outstanding at December 31, 2022; 32,276,419 shares issued and 32,004,396 shares outstanding at December 31, 2021 | 7 | 6 |
Common stock, additional paid-in capital | 547,799 | 526,338 |
Retained earnings | 6,102 | 83,846 |
Treasury stock at cost, 272,023 and 272,023 shares at December 31, 2022 and December 31, 2021 | (6,309) | (6,309) |
Total stockholders’ equity | 547,599 | 603,881 |
Total liabilities and stockholders' equity | $ 3,613,695 | $ 2,946,625 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, issued (in shares) | 33,626,630 | 32,276,419 |
Common stock, shares, outstanding (in shares) | 33,354,607 | 32,004,396 |
Treasury stock, common, shares (in shares) | 272,023 | 272,023 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Interest income | $ 876,114 | $ 575,839 |
Non-interest income | 76,431 | 50,943 |
Total revenue | 952,545 | 626,782 |
Less: | ||
Interest expense | 93,046 | 47,669 |
Net decrease in fair value | (218,842) | (48,632) |
Net revenue | 640,657 | 530,481 |
Operating expenses: | ||
Technology and facilities | 216,120 | 139,564 |
Sales and marketing | 110,033 | 116,882 |
Personnel | 154,850 | 115,833 |
Outsourcing and professional fees | 67,630 | 57,931 |
General, administrative and other | 58,838 | 37,480 |
Goodwill impairment | 108,472 | 0 |
Total operating expenses | 715,943 | 467,690 |
Income (loss) before taxes | (75,286) | 62,791 |
Income tax expense | 2,458 | 15,377 |
Net income (loss) | (77,744) | 47,414 |
Net income (loss) attributable to common stockholders | $ (77,744) | $ 47,414 |
Earnings (loss) per share: | ||
Basic (in USD per share) | $ (2.37) | $ 1.68 |
Diluted (in USD per share) | $ (2.37) | $ 1.56 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 32,825,772 | 28,191,610 |
Diluted (in shares) | 32,825,772 | 30,323,194 |
Net income (loss) attributable to common stockholders | $ (77,744) | $ 47,414 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2020 | 27,679,263 | ||||
Beginning balance at Dec. 31, 2020 | $ 466,628 | $ 6 | $ 436,499 | $ 36,432 | $ (6,309) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Options exercised (in shares ) | 240,047 | ||||
Issuance of common stock upon exercise of stock options, net of shares withheld | 3,272 | 3,272 | |||
Stock-based compensation expense | 19,888 | 19,888 | |||
Vesting of restricted stock units, net of shares withheld (in shares) | 562,904 | ||||
Vesting of restricted stock units, net of shares withheld | (6,502) | (6,502) | |||
Issuance of equity on business acquisition (in shares) | 3,522,182 | ||||
Issuance of equity on business acquisition | 73,181 | 73,181 | |||
Net income (loss) | 47,414 | 47,414 | |||
Ending balance (in shares) at Dec. 31, 2021 | 32,004,396 | ||||
Ending balance at Dec. 31, 2021 | $ 603,881 | $ 6 | 526,338 | 83,846 | (6,309) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Options exercised (in shares ) | 1,005,738 | 546,312 | |||
Issuance of common stock upon exercise of stock options, net of shares withheld | $ (4,635) | $ 1 | (4,636) | ||
Repurchase of stock options ( in shares ) | (2,706) | ||||
Repurchase of stock options | (28) | (28) | |||
Stock-based compensation expense | 30,125 | 30,125 | |||
Vesting of restricted stock units, net of shares withheld (in shares) | 806,605 | ||||
Vesting of restricted stock units, net of shares withheld | (4,000) | (4,000) | |||
Net income (loss) | (77,744) | (77,744) | |||
Ending balance (in shares) at Dec. 31, 2022 | 33,354,607 | ||||
Ending balance at Dec. 31, 2022 | $ 547,599 | $ 7 | $ 547,799 | $ 6,102 | $ (6,309) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (77,744) | $ 47,414 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 47,533 | 27,112 |
Goodwill impairment | 108,472 | 0 |
Fair value adjustment, net | 218,842 | 48,632 |
Origination fees for loans receivable at fair value, net | (26,845) | (15,836) |
Gain on loan sales | (5,703) | (26,750) |
Stock-based compensation expense | 27,620 | 18,857 |
Deferred tax provision, net | 0 | 16,451 |
Other, net | 30,336 | 30,567 |
Originations of loans sold and held for sale | (52,742) | (214,598) |
Proceeds from sale of loans | 58,844 | 242,015 |
Changes in operating assets and liabilities | (80,738) | (10,417) |
Net cash provided by operating activities | 247,875 | 163,447 |
Cash flows from investing activities | ||
Originations of loans | (2,762,828) | (1,842,211) |
Proceeds from loan sales originated as held for investment | 249,271 | 0 |
Repayments of loan principal | 1,396,896 | 1,107,850 |
Capitalization of system development costs | (48,892) | (26,477) |
Acquisition of Digit, net of acquirer's cash received | 0 | (111,652) |
Other, net | (5,995) | (12,296) |
Net cash used in investing activities | (1,171,548) | (884,786) |
Cash flows from financing activities | ||
Borrowings under secured financing | 1,972,000 | 1,291,795 |
Borrowings under asset-backed notes, acquisition and corporate financing | 1,262,059 | 1,479,332 |
Repayments of secured financing | (2,050,000) | (1,144,996) |
Repayments of asset-backed notes, acquisition and corporate financing | (232,675) | (875,007) |
Payments of deferred financing costs | (8,189) | (2,183) |
Net payments related to stock-based activities | (8,665) | (3,232) |
Net cash provided by financing activities | 934,530 | 745,709 |
Net increase in cash and cash equivalents and restricted cash | 10,857 | 24,370 |
Cash and cash equivalents and restricted cash, beginning of period | 192,960 | 168,590 |
Cash and cash equivalents and restricted cash, end of period | 203,817 | 192,960 |
Supplemental disclosure of cash flow information | ||
Cash and cash equivalents | 98,817 | 130,959 |
Restricted cash | 105,000 | 62,001 |
Total cash and cash equivalents and restricted cash | 203,817 | 192,960 |
Cash paid for income taxes, net of refunds | (3,457) | 3,884 |
Cash paid for interest | 85,775 | 46,831 |
Cash paid for amounts included in the measurement of operating lease liabilities | 15,696 | 17,603 |
Supplemental disclosures of non-cash investing and financing activities | ||
Right of use assets obtained in exchange for operating lease obligations | 4,161 | 12,392 |
Net issuance of stock related to Digit acquisition | 0 | 73,181 |
Non-cash investment in capitalized assets | 2,672 | 2,103 |
Non-cash financing activities | $ 1,550 | $ 33 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Oportun Financial Corporation (together with its subsidiaries, "Oportun" or the "Company") is a digital banking platform that puts its members’ financial goals within reach. With intelligent borrowing, savings, budgeting, and spending capabilities, the Company empowers members with the confidence to build a better financial future. Oportun takes a holistic approach to serving its members and view as its purpose to responsibly meet their current capital needs, help grow its members' financial profiles, increase their financial awareness and put them on a path to a financially healthy life. With its acquisition of Hello Digit, Inc. ("Digit") on December 22, 2021, the Company can now offer access to a comprehensive suite of digital banking products, offered either directly or through partners, including lending, savings and investing powered by A.I. and tailored to each member's goals to make achieving financial health automated. The Company's credit products include personal loans, secured personal loans and credit cards. The Company's digital banking products include automated savings, digital banking, long-term investing and retirement savings. The Company is headquartered in San Carlos, California. The Company has been certified by the United States Department of the Treasury as a Community Development Financial Institution ("CDFI") since 2009. Segments 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 and the Company's Chief Financial Officer are collectively considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation ‑ The Company meets the SEC's definition of a "Smaller Reporting Company”, and therefore qualifies for the SEC's reduced disclosure requirements for smaller reporting companies. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The 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 prior-period financial information has been reclassified to conform to current period presentation. Use of Estimates ‑ The preparation of the 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 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 consolidated financial statements; therefore, actual results could differ from those estimates and assumptions. Business Combinations - The Company accounts for business combinations using the acquisition method of accounting which requires the fair values of the assets acquired and the liabilities assumed to be recognized in the consolidated financial statements. Assets acquired and liabilities assumed in a business combination are recognized at their estimated fair value as of the acquisition date. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired requires management to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset or liability. The excess purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period, with the corresponding offset to goodwill. Acquisition-related costs, such as legal and consulting fees, are recognized separately from the business combination and are expensed as incurred. Consolidation and Variable Interest Entities ‑ The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s policy is to consolidate the financial statements of entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a voting interest entity or variable interest entity ("VIE") and if the accounting guidance requires consolidation. VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The Company determines whether it has a controlling financial interest in a VIE by considering whether its involvement with the VIE is significant and whether it is the primary beneficiary of the VIE based on the following: • The Company has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; • The aggregate indirect and direct variable interests held by us have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; an • Qualitative and quantitative factors regarding the nature, size, and form of the Company’s involvement with the VIE. Foreign Currency Re-measurement ‑ The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are re-measured at historical rates. Revenue and expenses are re-measured at average exchange rates in effect during each period. Foreign currency gains and losses from re-measurement and transaction gains and losses are recorded as general, administrative and other expense in the Consolidated Statements of Operations. Concentration of Credit Risk ‑ Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable at fair value. As of December 31, 2022, 45%, 26%, 9%, 5% and 4% of the owned principal balance related to borrowers from California, Texas, Florida, Illinois and New Jersey, respectively. Owned principal balance related to borrowers from each of the remaining states of operation continues to be at or below 3%. As of December 31, 2021, 49%, 27%, 7% and 6% of the owned principal balance related to borrowers from California, Texas, Florida and Illinois, respectively, and the owned principal balance related to borrowers from each of the remaining states was at or below 3%. Cash and Cash Equivalents ‑ Cash and cash equivalents consist of unrestricted cash balances and short-term, liquid investments with a maturity date of three months or less at the time of purchase. Digit's savings platform connects to members’ checking accounts and analyzes their income and spending patterns to find amounts that can safely be set aside towards savings goals. Digit calculates these amounts by identifying upcoming bills and regular spending habits to ensure optimal amounts are flagged for savings and transferred to savings accounts. The funds in these saving accounts are owned by Digit members and are not the assets of the Company. Therefore, these funds are not included in the Consolidated Balance Sheets. Restricted Cash ‑ Restricted cash represents cash held at a financial institution as part of the collateral for the Company’s Secured Financing, asset-backed notes and loans designated for sale. Loans Receivable at Fair Value ‑ Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are considered as loans held for investment. The Company elected the fair value option for all loans receivable held for investment. Under fair value accounting, direct loan origination fees are recognized in income immediately and direct loan origination costs are expensed in the period the loan originates. In addition, the Company recognizes annual fees on credit card receivables into income immediately upon activation of the credit card by the credit card holder and subsequent annual fees when billed upon the anniversary of the credit card account. Loans are charged off at the earlier of when loans are determined to be uncollectible or when loans are 120 days contractually past due, or 180 days contractually past due in the case of credit cards. Recoveries are recorded when cash is received on loans that had been previously charged off. The Company estimates the fair value of the loans using a discounted cash flow model, which considers various unobservable inputs such as remaining cumulative charge-offs, remaining cumulative prepayments or principal payment rates for our credit card receivables, average life and discount rate. The Company re-evaluates the fair value of loans receivable at the close of each measurement period. Changes in fair value are recorded in "Net decrease in fair value" in the Consolidated Statements of Operations in the period of the fair value changes. Fair Value Measurements ‑ The Company follows applicable guidance that establishes a fair value measurement framework, provides a single definition of fair value and requires expanded disclosure summarizing fair value measurements. Such guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. Fair value guidance establishes a three-level hierarchy for inputs used in measuring the fair value of a financial asset or financial liability. • Level 1 financial instruments are valued based on unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date. • Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. • Level 3 financial instruments are valued using pricing inputs that are unobservable and reflect the Company’s own assumptions that market participants would use in pricing the asset or liability. Loans Held for Sale ‑ Loans held for sale are recorded at the lower of cost or fair value, until the loans are sold. Loans held for sale are sold within four days of origination. Cost of loans held for sale is inclusive of unpaid principal plus net deferred origination costs. Derivatives - Derivative financial instruments are recognized as either assets or liabilities in the consolidated balance sheet at fair value. Changes in fair value and settlements of derivative instruments are reflected in earnings as a component of "net decrease in fair value" in the Consolidated Statements of Operations. The Company does not use derivative instruments for trading or speculative purposes. Based on the agreements entered into with Pathward, N.A. (formerly known as MetaBank, N.A.) for all loans originated and retained by Pathward, Pathward receives a fixed interest rate. Oportun bears the risk of credit loss and has the benefit of any excess interest proceeds after satisfying various obligations under the agreements. Goodwill ‑ Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired. The Company performs impairment testing for goodwill annually or more frequently if an event or change in circumstances indicates that goodwill may be impaired. The Company first assesses qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the Company concludes the fair value is less than its carrying value a quantitative test is performed. The Company performs a quantitative goodwill impairment test by determining the fair value of the reporting unit and comparing it to the carrying value of the reporting unit. If the fair value of the reporting unit is greater than the reporting unit's fair value, then the carrying value of the reporting unit is deemed to be recoverable. If the carrying value of the reporting unit is greater than the reporting unit's fair value, goodwill is impaired and written down to the reporting unit's fair value. In response to a sustained decline in the Company's share price primarily driven by macroeconomic conditions, the Company conducted a quantitative test of our goodwill as of September 30, 2022. As a result of this quantitative test, the Company identified an impairment to goodwill resulting in recognition of a $108.5 million non-cash goodwill impairment charge for the year ended December 31, 2022. There were no goodwill impairment charges during the year ended December 31, 2021. For further discussion, refer to Note 7, Capitalized Software, Other Intangibles and Goodwill . Intangible Assets other than Goodwill - At the time intangible assets are initially recognized, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of certain trade names, which we have determined have indefinite lives. Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives. Intangible assets with a finite useful life are presented net of accumulated amortization on the Consolidated Balance Sheets. The Company reviews the intangible assets with finite useful lives for impairment at least annually and whenever changes in circumstances indicate their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For indefinite-lived intangible assets, we review for impairment at least annually and whenever events occur or circumstances change that would indicate the assets are more likely than not to be impaired. We first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Fixed Assets ‑ Fixed assets are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which is generally three years for computer and office equipment and furniture and fixtures, and three The Company does not own any buildings or real estate. The Company enters into term leases for its corporate offices, call center and store locations. Leasehold improvements are capitalized and depreciated over the lesser of their physical life or lease term of the building. Systems Development Costs ‑ The Company capitalizes software developed or acquired for internal use, and these costs are included in Capitalized software and other intangibles, net on the Consolidated Balance Sheets. The Company has internally developed its proprietary Web-based technology platform, which consists of application processing, credit scoring, loan accounting, servicing and collections, debit card processing, data and analytics and digital banking services. The Company capitalizes its costs to develop software when preliminary development efforts are successfully completed; management has authorized and committed project funding; and it is probable the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. When the software developed for internal use has reached its technological feasibility, such costs are amortized on a straight-line basis over the estimated useful life of the assets, which is generally three years. Costs incurred for upgrades and enhancements that are expected to result in additional functionality are capitalized and amortized over the estimated useful life of the upgrades. The Company acquired developed technology with its acquisition of Digit. Developed technology is included in capitalized software. Such costs are amortized on a straight-line basis over the estimated useful life of the assets, which was determined to be seven years. Impairment ‑ The Company reviews long-lived assets, including fixed assets, right of use assets and system development costs, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. The Company determined that there were no events or changes in circumstances that indicated our long-lived assets were impaired for the years ended December 31, 2022 and 2021, except as disclosed in Note 7, Capitalized Software, Other Intangibles and Goodwill . Asset-Backed Notes at Fair Value ‑ The Company elected the fair value option to account for all asset-backed notes. 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 re-evaluates the fair value of the asset-backed notes at the close of each measurement period. Changes in fair value are recorded in Net decrease in fair value in the Consolidated Statements of Operations in the period of the fair value changes. Acquisition Financing ‑ The Acquisition Financing is an asset-backed note carried at amortized cost. The Company reports issuance costs associated with the financing on its balance sheet as a direct reduction in the carrying amount of the note, and they are amortized over the life of the note using the effective interest method. The Acquisition Financing was used to fund the cash component of the purchase price for the Digit acquisition and, as a result, the interest payments are recorded to General, administrative and other in the Consolidated Statements of Operations. Revenue Recognition ‑ The Company’s primary sources of revenue consist of interest and non-interest income. Interest Income Interest income includes interest and fees on loans. Generally, the Company’s loans require semi-monthly or biweekly borrower payments of interest and principal. Fees on loans include billed late fees offset by charged-off fees and provision for uncollectible fees. The Company charges borrowers a late fee if a scheduled installment payment becomes delinquent. Depending on the loan, late fees are assessed when the loan is eight to 16 days delinquent. Late fees are recognized when they are billed. When a loan is charged off, uncollected late fees are also written off. For Loans Receivable at Fair Value, interest income includes (i) billed interest and late fees, plus (ii) origination fees recognized at loan disbursement, less (iii) charged-off interest and late fees, less (iv) provision for uncollectible interest and late fees. Additionally, direct loan origination expenses are recognized in operating expenses as incurred. For Loans Receivable at Fair Value, loan origination fees and costs are recognized when incurred. Interest income on our personal loan receivables is recognized based upon the amount the Company expects to collect from its borrowers. When a loan becomes delinquent for a period of 90 days or more, interest income continues to be recorded until the loan is charged off. Delinquent loans are charged off at month-end during the month it becomes 120 days’ delinquent. For personal loans receivable, the Company mitigates the risk of income recorded for loans that are delinquent for 90 days or more by establishing a 100% provision and the provision for uncollectible interest and late fees is offset against interest income. Previously accrued and unpaid interest is also charged off in the month the Company receives a notification of bankruptcy, a judgment or mediated agreement by the court, or loss of life, unless there is evidence that the principal and interest are collectible. Interest income on our credit card receivables is recognized on the current balance on the account, inclusive of outstanding principal balance plus previously unpaid interest and fees, at the end of the monthly billing cycle. Delinquent credit card accounts, including unpaid interest and fees are charged off at month-end during the month they become 180 days contractually past due. Non-Interest Income Non-interest income includes subscription revenue, servicing fees, gain on loan sales, debit card income, documentation fees, sublease income and other income. Subscription Revenue - The Company earns revenue on a subscription basis from users of its platform. Revenue is recognized ratably over each month as the performance obligation is satisfied over time. Deferred revenue is recognized when the service period spans into the following month. Servicing Fees ‑ The Company retains servicing rights on sold loans. Servicing fees comprise the contractual annual servicing fee based upon the average daily principal balance of loans sold that the Company earns for servicing loans sold to a third-party financial institution. The servicing fee compensates the Company for the costs incurred in servicing the loans, including providing customer services, receiving borrower payments and performing appropriate collection activities. Management believes the fee approximates a market rate and accordingly has not recognized a servicing asset or liability. Gain on Loan Sales ‑ The Company recognizes a gain on sale from the difference between the proceeds received from the purchaser and the carrying value of the loans on the Company’s books. The Company sells a certain percentage of new loans twice weekly. A transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: • The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. • The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. • The transferor does not maintain effective control of the transferred assets. For the years ended December 31, 2022 and 2021 all of the Company's loan sales met the requirements for sale treatment. The Company records the gain on the sale of a loan at the sale date in an amount equal to the proceeds received less outstanding principal, accrued interest, late fees and net deferred origination costs. Debit card income is the revenue from interchange fees when borrowers use our reloadable debit card for purchases as well as the associated card user fees. Documentation Fees - On a monthly basis Pathward, N.A. pays the Company documentation fees as compensation for its role in facilitation of loan originations by Pathward. The documentation fees are equivalent to loan origination fees charged by Pathward to its borrowers. Documentation fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. The transaction fee is determined each time a loan is issued based on that loan’s initial principal amount and is recognized when performance is complete and upon the successful origination of a borrower's loan. Sublease income is the rental income from subleasing a portion of our existing right of use assets. Other income includes marketing incentives paid directly to us by the merchant clearing company based on transaction volumes, interest earned on cash and cash equivalents and restricted cash, and gain (loss) on asset sales. Interest expense ‑ Interest expense consists of interest expense associated with the Company’s asset-backed notes, Corporate Financing and Secured Financing, and it includes the amortization of deferred origination costs for the Corporate Financing and Secured Financing facilities as well as fees for the unused portion of the Secured Financing facility. The Company elected the fair value option for all asset-backed notes. Accordingly, all origination costs for such asset-backed notes at fair value are expensed as incurred. Income Taxes ‑ The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company evaluates uncertain tax positions by reviewing against applicable tax law all positions taken by the Company with respect to tax years for which the statute of limitations is still open. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company recognizes interest and penalties related to the liability for unrecognized tax benefits, if any, as a component of the Income tax expense line in the accompanying Consolidated Statements of Operations. Stock-Based Compensation ‑ The Company accounts for stock-based employee awards based on the fair value of the award which is measured at grant date. Accordingly, stock-based compensation cost is recognized in operating expenses in the Consolidated Statements of Operations over the requisite service period. The fair value of stock options granted or modified is estimated using the Black-Scholes option pricing model. The Company accounts for forfeitures as they occur and does not estimate forfeitures as of the award grant date. The Company granted restricted stock units ("RSUs") to employees that vest upon the satisfaction of time-based criterion of up to four years and previously some included a performance criterion, a liquidity event in connection with an initial public offering or a change in control. These RSUs were not considered vested until both criteria were met and provided that the participant was in continuous service on the vesting date. Compensation cost for awards with performance criteria, measured on the grant date, was recognized when both the service and performance conditions were probable of being achieved. For grants and awards with just a service condition, the Company recognizes stock-based compensation expenses using the straight-line basis over the requisite service period net of forfeitures. For grants and awards with both service and performance conditions, the Company recognizes expenses using the accelerated attribution method. As a result of shares vesting as part of the Company's stock-based plans shares are surrendered to the Company to satisfy the tax withholding obligations and the Company pays the associated payroll taxes and the shares go back to the plan for future use. Treasury Stock ‑ Treasury stock is reported at cost, and no gain or loss is recorded on stock repurchase transactions. Repurchased shares are held as treasury stock until they are retired or re-issued. The Company did not retire or re-issue any treasury stock for the years ended December 31, 2022 and 2021. Basic and Diluted Earnings per Share ‑ Basic earnings per share is computed by dividing net income per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. The Company computes earnings per share using the two-class method required for participating securities. The Company considers all series of convertible preferred stock to be participating securities due to their noncumulative dividend rights. As such, net income allocated to these participating securities, which includes participation rights in undistributed earnings, are subtracted from net income to determine total undistributed net income to be allocated to common stockholders. All participating securities are excluded from basic weighted-average common shares outstanding. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 3. Earnings (Loss) per Share Basic and diluted earnings (loss) per share are calculated as follows: Year Ended December 31, (in thousands, except share and per share data) 2022 2021 Net income (loss) $ (77,744) $ 47,414 Net income (loss) attributable to common stockholders $ (77,744) $ 47,414 Basic weighted-average common shares outstanding 32,825,772 28,191,610 Weighted average effect of dilutive securities: Stock options — 1,375,915 Restricted stock units — 755,669 Diluted weighted-average common shares outstanding 32,825,772 30,323,194 Earnings (loss) per share: Basic $ (2.37) $ 1.68 Diluted $ (2.37) $ 1.56 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: Year Ended December 31, 2022 2021 Stock options 3,527,096 2,038,022 Restricted stock units 4,347,899 19,073 Total anti-dilutive common share equivalents 7,874,995 2,057,095 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Variable interest entities ("VIEs") are legal entities that either have an insufficient amount of equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of equity investment at risk lack the ability to direct the entity's activities that most significantly impact economic performance through voting or similar rights, or do not have the obligation to absorb the expected losses or the right to receive expected residual returns of the entity. For all VIEs in which we are involved, we assess whether we are the primary beneficiary of the VIE on an ongoing basis. In circumstances where we have 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, we would conclude that we are the primary beneficiary of the VIE, and we consolidate the VIE. In situations where we are not deemed to be the primary beneficiary of the VIE, we do not consolidate the VIE and only recognize our interests in the VIE. 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 ("VIEs") 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 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 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 consolidated balance sheets: December 31, (in thousands) 2022 2021 Consolidated VIE assets Restricted cash $ 91,395 $ 41,803 Loans receivable at fair value 3,081,557 2,267,205 Interest and fee receivable 30,443 19,869 Total VIE assets 3,203,395 2,328,877 Consolidated VIE liabilities Secured financing (1) 320,000 398,000 Asset-backed notes at fair value 2,387,674 1,651,706 Acquisition financing (1) 85,679 116,000 Total VIE liabilities $ 2,793,353 $ 2,165,706 (1) Amounts exclude deferred financing costs. See Note 9, Borrowings for additional information. |
Loans Held for Sale and Loans S
Loans Held for Sale and Loans Sold | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Loans Held for Sale and Loans Sold | 5. Loans Held for Sale and Loans Sold Structured Loan Sales - On March 31, 2022, the Company participated in a securitization whereby the Company and funds managed by Ellington Management Group both contributed collateral and were co-sponsors of the transaction, which totaled $400.0 million in issued asset-backed notes. As part of the securitization, the Company sold loans to OPTN Funding Grantor Trust 2022-1 through the issuance of amortizing asset-backed notes secured by a pool of its unsecured and secured personal installment loans. The Company also sold its share of the residual interest in the pool. The Company's continued involvement in the unconsolidated VIEs is in the form of servicer of these loans. The Company does not have variable interest in the Grantor Trust or the issuer established for this transaction. The sold loans were accounted for under the fair value option and had an aggregate unpaid principal balance of approximately $227.6 million, a cumulative fair value mark of $15.9 million and unpaid interest of $1.5 million. The Company received $245.0 million of net proceeds and by selling both its notes and residual interest, the Company derecognized these loans from its Consolidated Balance Sheets. Other Loan Sales - The Company enters into agreements to sell certain populations of its personal loans and credit card receivables from time to time. The sold loans were accounted for under the fair value option. During the year ended December 31, 2022, the Company sold loans that had an aggregate unpaid principal balance, including unpaid interest and fees, of approximately $66.2 million, and a cumulative fair value mark of $(61.9) million. The Company received $4.3 million of net proceeds. The loan sales qualified for sale accounting treatment and the Company derecognized these loans from its Consolidated Balance Sheets when the loans were sold. Whole Loan Sale Program ‑ In November 2014, the Company entered into a whole loan sale agreement with an institutional investor. Pursuant to the agreement, the Company sold at least 10% of its unsecured loan originations, with an option to sell an additional 5%, subject to certain eligibility criteria and minimum and maximum volumes. The Company chose not to renew the arrangement and allowed the agreement to expire on its terms on March 4, 2022. The originations of loans sold and held for sale during the year ended December 31, 2022 was $52.7 million and the Company recorded a gain on sale of $5.7 million and servicing revenue of $17.4 million. The originations of loans sold and held for sale during the year ended December 31, 2021 was $214.6 million and the Company recorded a gain on sale of $26.8 million and servicing revenue of $13.3 million. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | 6. Acquisition On December 22, 2021, the Company completed its acquisition of Digit. Digit is a digital banking platform that provides automated savings, investing and banking tools. Digit members can keep and integrate their existing bank accounts into the platform, or they can make Digit their primary banking relationship by opening new accounts via Digit’s bank partner. By acquiring Digit, Oportun has further expanded its A.I. and digital banking capabilities, adding to its services to provide consumers a holistic offering built to address their financial needs. The total consideration the Company provided for Digit was approximately $205.3 million, comprised of $73.2 million in equity and $132.1 million in cash, subject to customary adjustments. The Company acquired 100% of the voting interests of Digit. December 31, (in thousands) 2021 Fair value of Oportun common stock issued to Digit stockholders (1) $ 73,181 Cash paid to common and preferred stockholders, warrant holders, and vested option holders (2) 132,151 Total purchase consideration (3) $ 205,332 ( 1) The fair value is based on 3,522,182 shares of Company common stock at $20.72 per share, which represents the mid-point of the trading price of Oportun shares on December 22, 2021. The mid-point was used because the transaction closed during the trading day. $0.2 million relates to replacement restricted stock units awarded to Digit unvested option holders. (2) $1.3 million of the cash paid is being held in escrow as security for purpose of securing any amounts payable by the selling parties on account of indemnification obligations, purchase price adjustments, and other amounts payable under the merger agreement. (3) The total consideration as reported herein differs from the amounts previously disclosed due to changes in the underlying value of the stock between the date of the definitive agreement and the closing of the acquisition. The number of shares of Company common stock comprising the stock portion of the consideration was determined using the stock price as of the signing of the definitive agreement. The acquisition has been accounted for as a business combination. The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired and assumed as of the acquisition date, with the excess recorded to goodwill as shown below. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date: December 22, (in thousands) 2021 Goodwill $ 104,014 Acquired intangible assets 35,300 Developed technology 48,500 Cash and cash equivalents 20,499 Other assets acquired and liabilities assumed, net (2,981) Total purchase consideration $ 205,332 The goodwill of $104.0 million arising from the acquisition consists largely of revenue synergies expected from combining the operations of the Company and Digit. The goodwill is not deductible for U.S. federal income tax purposes. We recognized a $108.5 million non-cash impairment charge for the year ended December 31, 2022. For details regarding the impairment charge, refer to Note 7, Capitalized Software, Other Intangibles and Goodwill . The table below summarizes the acquired intangible assets and developed technology, with estimated useful lives, as of the acquisition date: Estimated fair values (in thousands) Estimated useful life (years) Member relationships $ 34,500 7.0 Trade name 800 3.0 Developed technology 48,500 7.0 Total acquired intangibles and developed technology $ 83,800 The fair values of the acquired intangibles and developed technology were determined using the following methodologies: We valued the developed technology using the multi-period excess earnings method under the income approach. Member relationships were valued using the with-and-without method under the income approach. Trade names were valued by applying the relief-from-royalty method under the income approach. The acquired intangibles and developed technology have a total weighted average amortization period of 7.0 years. The unaudited pro forma information does not necessarily reflect the actual results of operations of the combined entities that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Digit, including additional depreciation and amortization adjustments for the fair value of the assets acquired and liabilities assumed. The pro forma net loss for the year ended December 31, 2021 was adjusted to exclude nonrecurring acquisition-related costs of $29.7 million. December 31, (in thousands) 2021 Total revenues $ 666,158 Net income (loss) attributable to shareholders $ 33,971 The Company recognized acquisition and integration related costs of approximately $29.7 million and $10.6 million in the years ended December 31, 2022 and 2021, respectively, which are included in the General, administrative and other expense in the Consolidated Statements of Operations. |
Capitalized Software, Other Int
Capitalized Software, Other Intangibles and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Capitalized Software, Other Intangibles and Goodwill | 7. Capitalized Software, Other Intangibles and Goodwill Capitalized software, net consists of the following: December 31, (in thousands) 2022 2021 Capitalized software, net: System development costs $ 135,303 $ 84,550 Acquired developed technology 48,500 48,500 Less: Accumulated amortization (79,679) (45,433) Total capitalized software, net $ 104,124 $ 87,617 Capitalized software, net Amortization of system development costs and acquired developed technology for years ended December 31, 2022 and 2021 was $34.2 million and $16.9 million, respectively. System development costs capitalized in the years ended December 31, 2022 and 2021 were $51.5 million and $77.1 million, respectively. Acquired developed technology was $48.5 million and is related to the acquisition of Digit. Intangible Assets The gross carrying amount and accumulated amortization, in total and by major intangible asset class are as follows: December 31, December 31, (in thousands) 2022 2021 Intangible assets: Member relationships 34,500 $ 34,500 Trademarks 6,426 6,364 Other 3,000 3,000 Less: Accumulated amortization (8,249) $ (300) Total intangible assets, net 35,677 $ 43,564 Amortization of intangible assets for the years ended December 31, 2022 and 2021 was $7.9 million and $0.3 million. Expected future amortization expense for intangible assets as of December 31, 2022 is as follows: (in thousands) Fiscal Years 2023 $ 7,948 2024 7,798 2025 4,929 2026 4,929 2027 4,929 Thereafter 4,780 Total $ 35,313 Goodwill The Company recorded goodwill of $104.0 million arising from the acquisition of Digit on December 22, 2021. The Company recorded increases to goodwill of $4.5 million, during the twelve months ended December 31, 2022, as part of the twelve-month measurement period. These increases were primarily due to changes in deferred taxes resulting from the filing of Digit's pre-acquisition tax returns. Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. The Company performs impairment tests related to its goodwill on an annual basis or when certain triggering events or circumstances are identified that would more likely than not reduce the estimated fair value of the goodwill below its carrying amount. In response to a sustained decline in the Company’s share price primarily driven by macroeconomic conditions, the Company conducted a quantitative test of its goodwill as of September 30, 2022. The Company considered the income approach, the guideline public company multiples approach and the market approach in determining a fair value for the Company which was determined to be the only reporting unit for purposes of testing the goodwill. Given the uncertain macroeconomic environment there was a wide range of indications of fair value across the approaches. Although the corresponding value was the lowest in the range, the Company utilized the market approach because it was based on market observable inputs. The market approach estimates fair value using the market capitalization of the Company as a basis. As of September 30, 2022, the market capitalization plus the estimated control premium was less than the carrying value of the Company. As a result, the Company recognized a non-cash pre-tax impairment charge of $108.5 million during the year ended December 31, 2022 to write down the carrying value of goodwill. The non-cash impairment charge is included in Goodwill impairment in the Consolidated Statements of Operations for the year ended December 31, 2022. There were no goodwill impairment charges during the year ended December 31, 2021. The following table represents the changes in goodwill since December 31, 2021: (in thousands) Goodwill Balance as of December 31, 2021 $ 104,014 Measurement adjustments during period 4,458 Impairment (108,472) Balance as of December 31, 2022 $ — |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 8. Other Assets Other assets consist of the following: December 31, (in thousands) 2022 2021 Fixed assets Total fixed assets $ 48,212 $ 44,100 Less: Accumulated depreciation (37,688) (34,185) Total fixed assets, net $ 10,524 $ 9,915 Other assets Loans held for sale $ 50 $ 491 Prepaid expenses 24,167 25,355 Deferred tax assets 1,793 3,923 Current tax assets 8,245 13,330 Other 19,401 19,330 Total other assets $ 64,180 $ 72,344 Fixed Assets Depreciation and amortization expense for the years ended December 31, 2022 and 2021 was $5.2 million and $9.4 million, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 9. Borrowings The following table presents information regarding the Company's Secured Financing facilities: December 31, 2022 December 31, 2021 Variable Interest Entity Facility Amount Maturity Date Interest Rate Balance Balance (in thousands) Oportun CCW Trust (1) $ 150,000 December 1, 2023 Variable (1) $ 76,574 $ 40,108 Oportun PLW Trust 600,000 September 1, 2024 LIBOR (minimum of 0.00% ) + 2.17% 240,994 353,781 Total secured financing $ 750,000 $ 317,568 $ 393,889 (1) The interest rate on the Secured Financing - CCW facility is LIBOR (minimum of 1.00%) plus 6.00% on the first $18.8 million of principal outstanding and LIBOR (minimum of 0.00%) plus 3.41% on the remaining outstanding principal balance. The following table presents information regarding asset-backed notes: December 31, 2022 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (4) (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2022-3) $ 300,000 $ 310,993 $ 285,218 $ 301,967 8.43 % N/A Oportun Issuance Trust (Series 2022-2) 400,000 410,212 313,689 344,218 7.03 % N/A Oportun Issuance Trust (Series 2022-A) 400,000 410,211 380,313 414,293 5.44 % 2 years Oportun Issuance Trust (Series 2021-C) 500,000 512,762 435,951 518,929 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 432,123 519,182 2.05 % 3 years Oportun Funding XIV, LLC (Series 2021-A) 375,000 383,632 348,046 389,740 1.79 % 2 years Oportun Funding XIII, LLC (Series 2019-A) 279,412 294,118 192,334 218,571 3.46 % 3 years Total asset-backed notes recorded at fair value $ 2,754,412 $ 2,834,687 $ 2,387,674 $ 2,706,900 December 31, 2021 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (4) (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2021-C) $ 500,000 $ 512,762 $ 497,774 $ 525,436 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 498,487 521,174 2.05 % 3 years Oportun Funding XIV, LLC (Series 2021-A) 375,000 383,632 374,363 391,325 1.79 % 2 years Oportun Funding XIII, LLC (Series 2019-A) 279,412 294,118 281,082 299,310 3.46 % 3 years Total asset-backed notes recorded at fair value: $ 1,654,412 $ 1,703,271 $ 1,651,706 $ 1,737,245 (1) Initial note amount issued includes notes retained by the Company as applicable. 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) Weighted average interest rate excludes notes retained by the Company. There were no notes retained by the Company as of December 31, 2022. The weighted average interest rate for Series 2022-2 and Series 2022-3 will change over time as the notes pay sequentially (in class priority order). (4) The revolving period for Series 2019-A ended on August 1, 2022 and the asset-backed notes have been amortizing since then. Series 2022-2 and Series 2022-3 are both amortizing deals with no revolving period. The following table presents information regarding the Company's Acquisition and Corporate Financings: December 31, 2022 December 31, 2021 Entity Original Balance (1) Maturity Date (2) Interest Rate (3) Balance Balance (in thousands) Oportun Financial Corporation $ 150,000 September 14, 2026 SOFR (minimum of 0.00% + 9.00% $ 141,957 $ — Oportun RF, LLC 116,000 May 1, 2024 SOFR (minimum of 0.00%) + 8.00% 80,922 114,092 Total acquisition and corporate financing $ 266,000 $ 222,879 $ 114,092 (1) The Acquisition Financing Facility (Oportun RF, LLC) was amended on May 24, 2022 and upsized for an additional $20.9 million and was amended again on July 28, 2022 and upsized for an additional $9.1 million. (2) Pursuant to an amendment on November 2, 2022, the maturity date of the Acquisition Financing Facility (Oportun RF, LLC) was changed from October 2024 to June 2024. The Acquisition Financing Facility was further amended on December 2, 2022 to change the maturity date to May 2024. (3) The interest rate on the Acquisition Financing Facility (Oportun RF, LLC) was LIBOR (minimum of 0.00%) plus 8.00% as of December 31, 2021. On May 24, 2022 the Company completed the issuance of $400.0 million of two-year asset-backed notes in a private asset-backed securitization secured by a pool of its unsecured and secured personal installment loans (the “2022-A Securitization”). The 2022-A Securitization included four classes of fixed rate notes: Class A, Class B, Class C and Class D notes. The Class A, Class B and Class C notes were priced with a weighted average yield of 5.68% per annum. The Class D notes were initially retained by an affiliate of the Company and subsequently sold to third parties on July 28, 2022. Also on May 24, 2022, and subsequently on July 28, 2022, pursuant to amended indentures, Oportun RF, LLC, a wholly owned subsidiary of the Company issued an additional $20.9 million and $9.1 million asset-backed floating rate variable funding notes, and asset-backed residual certificates, both of which are secured by certain cash flows from the Company's securitizations and guaranteed by Oportun, Inc., increasing the size of the Acquisition Financing facility to $119.5 million The amendments also replaced the interest rate based on LIBOR with an interest rate based on SOFR plus 8.00%. The Acquisition Financing facility was scheduled to pay down based on an amortization schedule with a final payment in May 2024. Subsequently, on February 10, 2023, the Acquisition Financing facility was further amended, including among other things, revising the interest rate to SOFR plus 11.00% and adjusting the amortization schedule to defer $42.0 million in principal payments through July 2023, with final payment in October 2024. On July 22, 2022 the Company completed the issuance of $400.0 million of Series 2022-2 fixed rate asset-backed notes in a private asset-backed securitization transaction secured by a pool of unsecured and secured installment loans. The notes were priced with a weighted average yield of 8.00% per annum and weighted average interest rate over the term of the transaction of 7.77% per annum. On September 14, 2022, the Company entered into a credit agreement to borrow $150.0 million of a senior secured term loan (the “Corporate Financing”). The term loan bears interest, payable in cash, at an amount equal to 1-month term SOFR plus 9.00%. The term loan is scheduled to mature on September 14, 2026, and is not subject to amortization. Certain prepayments of the term loan is subject to a prepayment premium. The obligations under the credit agreement are secured by the assets of the Company and certain of its subsidiaries guaranteeing the term loan, including pledges of the equity interests of certain subsidiaries that are directly or indirectly owned by the Company, subject to customary exceptions. On March 10, 2023 we upsized and amended our Corporate Financing facility to be able to borrow up to an additional $75 million. At closing and as part of the Incremental Tranche A-1, we borrowed $20.8 million and will receive an additional $4.2 million in Incremental Tranche A-2 loans on or about March 27, 2023. We may borrow up to an aggregate additional amount of $50.0 million on an uncommitted basis, in two $25.0 million tranches, expected to be available, if provided by the applicable lenders, on or about April 21, 2023 and June 23, 2023, respectively. The term loan now bears interest at an amount payable in cash equal to 1-month term SOFR plus 9.00% plus an amount payable in cash or in kind, at the Company’s option, equal to 3.00%. On November 3, 2022, the Company completed the issuance of $300 million of Series 2022-3 fixed rate asset-backed notes in a private asset-backed securitization transaction secured by a pool of unsecured and secured installment loans. The notes were priced with a weighted average yield of 10.94% per annum and weighted average interest rate of 9.51% per annum. On March 8, 2023, the Credit Card Warehouse was amended. This amendment, among other things, extends the revolving period by a year, to December 31, 2024, and reduces the commitment from $150.0 million to $120.0 million. As of December 31, 2022 and 2021, the Company was in compliance with all covenants and requirements of the Secured Financing, Acquisition Financing and Corporate Financing facilities and asset-backed notes. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 10. Other Liabilities Other liabilities consist of the following: December 31, (in thousands) 2022 2021 Accounts payable $ 9,670 $ 8,343 Accrued compensation 12,502 36,417 Accrued expenses 26,193 36,464 Accrued interest 8,445 3,276 Amount due to whole loan buyer 3,073 14,062 Deferred tax liabilities 30,575 28,424 Current tax liabilities and other 9,570 8,372 Total other liabilities $ 100,028 $ 135,358 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders' Equity Preferred Stock - 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 December 31, 2022 or 2021. |
Equity Compensation and Other B
Equity Compensation and Other Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation and Other Benefits | 12. Equity Compensation and Other Benefits 2019 Equity Incentive Plan We currently have one stockholder-approved plan from which we can issue stock-based awards, which was approved by our stockholders in fiscal year 2019 (the "2019 Plan"). The 2019 Plan became effective on September 25, 2019 and replaced the Amended and Restated 2005 Stock Option / Stock Issuance Plan and the 2015 Stock Option/Stock Issuance Plan (collectively, the “Previous Plans”). The Previous Plans solely exist to satisfy outstanding options previously granted under those plans. The 2019 Plan provides for the grant of incentive stock options ("ISOs"), nonstatutory stock options ("NSOs"), stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based awards, and other awards (collectively, "awards"). ISOs may be granted only to the Company's employees, including officers, and the employees of its affiliates. All other awards may be granted to the employees, including officers, non-employee directors and consultants and the employees and consultants of the Company's affiliates. The maximum number of shares of our common stock that may be issued under the 2019 Plan will not exceed 9,072,159 shares, of which, 1,802,994 were available for future awards as of December 31, 2022. The number of shares of the Company's common stock reserved for issuance under its 2019 Plan will automatically increase on January 1 of each year for the remaining term of the plan, by 5% of the total number of shares of its common stock outstanding on December 31 of the immediately preceding calendar year, or a lesser number of shares determined by the Board prior to the applicable January 1st. The shares available for issuance increased by 1,600,219 shares, on January 1, 2022, pursuant to the automatic share reserve increase provision. 2019 Employee Stock Purchase Plan In September 2019, the Board adopted, and stockholders approved, the Company's 2019 Employee Stock Purchase Plan (the "ESPP"). The ESPP became effective on September 25, 2019. The purpose of the ESPP is to secure the services of new employees, to retain the services of existing employees and to provide incentives for such individuals to exert maximum efforts toward the Company's success and that of its affiliates. The ESPP includes two components. One component is designed to allow eligible U.S. employees to purchase common stock in a manner that may qualify for favorable tax treatment under Section 423 of the Code. In addition, purchase rights may be granted under a component that does not qualify for such favorable tax treatment when necessary or appropriate to permit participation by eligible employees who are foreign nationals or employed outside of the United States while complying with applicable foreign laws. The maximum aggregate number of shares of common stock that may be issued under the ESPP is 1,593,052 shares and as of December 31, 2022, no shares have been issued under the ESPP. The number of shares of the Company's common stock reserved for issuance under its ESPP will automatically increase on January 1 of each calendar year for the remaining term of the plan by the lesser of (1) 1% of the total number of shares of its capital stock outstanding on December 31 of the preceding calendar year, (2) 726,186 shares, and (3) a number of shares determined by the Board. The shares available for issuance increased by 320,043 shares, on January 1, 2022, pursuant to the automatic share reserve increase provision. Generally, all regular employees, including executive officers, employed by the Company or by any of its designated affiliates, will be eligible to participate in the ESPP and may contribute, normally through payroll deductions, up to 15% of their earnings (as defined in the ESPP) for the purchase of common stock under the ESPP. Unless otherwise determined by the Board, common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to the lower of (a) 85% of the fair market value of a share of the Company's common stock on the first date of an offering or (b) 85% of the fair market value of a share of the common stock on the date of purchase. 2021 Inducement Equity Incentive Plan Effective December 30, 2021, the Company adopted the 2021 Inducement Equity Incentive Plan (the “2021 Inducement Plan”), pursuant to which the Company reserved 563,955 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The maximum number of shares of our common stock that may be issued under the 2021 Inducement Plan will not exceed 563,955 shares, of which, 39,635 were available for future awards as of December 31, 2022. The 2021 Inducement Plan was approved by the Company’s Board without stockholder approval in accordance with such rule. Stock Options The term of an option may not exceed 10 years as determined by the Board, and each option generally vests over a four-year period with 25% vesting on the first anniversary date of the grant and 1/36th of the remaining amount vesting at monthly intervals thereafter. Option holders are allowed to exercise unvested options to acquire restricted shares. Upon termination of employment, option holders have a period of up to three months in which to exercise any remaining vested options. The Company has the right to repurchase at the original purchase price any unvested but issued common shares upon termination of service. Unexercised options granted to participants who separate from the Company are forfeited and returned to the pool of stock options available for grant. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model. The fair value is then amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The fair value of stock option grants was estimated with the following assumptions: Year Ended December 31, 2022 2021 Expected volatility (employee) 63.4% 62.5% Risk-free interest rate (employee) 2.3% 0.9% Expected term (employee, in years) 6.1 6.1 Expected dividend —% —% These assumptions are defined as follows: • Expected Volatility ‑ Since the Company does not have enough trading history to use the volatility of its own common stock, the option’s expected volatility is estimated based on historical volatility of a peer group’s common stock. • Risk-Free Interest Rate‑ The risk-free interest rate is based on the U.S. Treasury zero-coupon issues in effect at the time of grant for periods corresponding with the expected term of the option. • Expected Term ‑ The option’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding. • Expected Dividend - The Company has no plans to pay dividends. Stock Option Activity - A summary of the Company's stock option activity under the 2005 Plan, 2015 Plan, and 2019 Plan at December 31, 2022 is as follows: (in thousands, except share and per share data) Options Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Balance – January 1, 2022 4,187,855 14.63 4.59 $ 27,011 Options granted 541,713 13.02 Options exercised (1,005,738) 1.58 Options canceled (331,273) 20.25 Options forfeited (94,019) 17.24 Balance – December 31, 2022 3,298,538 17.71 5.43 $ 202 Options vested and expected to vest - December 31, 2022 3,298,538 17.71 5.43 $ 202 Options vested and exercisable - December 31, 2022 2,482,741 18.39 4.55 $ 202 Information on stock options granted, exercised and vested is as follows: Year Ended December 31, (in thousands, except per share data) 2022 2021 Weighted average fair value per share of options granted $ 7.76 $ 12.11 Cash received from options exercised, net (1) (4,636) 3,272 Aggregate intrinsic value of options exercised 11,884 2,380 Fair value of shares vested 3,863 4,974 (1) The amount reflected for the year ended December 31, 2022 is the net of cash received from options exercised of $1.6 million and the cash paid for employee tax withholding settled in shares of $6.2 million. As of December 31, 2022 and 2021, the Company’s total unrecognized compensation cost related to nonvested stock-based option awards granted to employees was, $6.2 million and $6.9 million, respectively, which will be recognized over a weighted-average vesting period of approximately 2.6 years and 2.2 years, respectively. Restricted Stock Units The Company’s restricted stock units ("RSUs") vest upon the satisfaction of time-based criterion of up to four years. In most cases, the service-based requirement will be satisfied in installments as follows: 25% of the total number of RSUs awarded will have the service-based requirement satisfied during the month in which the 12-month anniversary of the vesting commencement date occurs, and thereafter 1/16th of the total award in a series of 12 successive equal quarterly installments or 1/4th of the total award in a series of three successive equal annual installments following the first anniversary of the initial service vest date. Stock-based compensation cost for RSUs is measured based on the fair market value of the Company’s common stock on the date of grant. As part of the Digit acquisition in 2021, 501,906 shares of the Company’s restricted stock units were issued to certain Digit employees to replace the outstanding unvested stock options that were previously issued to the employees of Digit. The RSUs are subject to the same service-based requirements as the historical stock option grants. The Company awarded an additional 650,460 RSUs to certain Digit employees that vest upon satisfaction of time-based criterion of up to four years. For grants with a one-year vesting term, 50% will vest on the six-month anniversary of the vesting commencement date with the balance vesting in two successive equal quarterly installments thereafter. For grants with a two-year vesting term, 25% will vest on the six-month anniversary of the vesting commencement date with the balance vesting in six equal quarterly installments thereafter or 50% will vest on the twelve-month anniversary of the vesting commencement date with the balance vesting in four successive equal quarterly installments thereafter. For grants with a three-year vesting term, 16.667% will vest on the six-month anniversary of the vesting commencement date, with the balance vesting in ten successive equal quarterly installments thereafter. For grants with four-year vesting term, 12.5% will vest on the six-month anniversary of the vesting commencement date, with the balance vesting in 14 successive equal quarterly installments thereafter. A summary of the Company’s RSU activity under the 2015 Plan, 2019 Plan and 2021 Inducement Plan for the year ended December 31, 2022 is as follows: RSU Outstanding Weighted Average Grant-Date Fair Value Balance – January 1, 2022 3,354,333 19.48 Granted 3,091,511 11.48 Vested (1) (1,224,579) 19.52 Forfeited (726,318) 16.95 Balance – December 31, 2022 4,494,947 14.37 Expected to vest after December 31, 2022 4,420,579 14.45 (1) The Company allows its Board to defer all or a portion of monetary remuneration paid to the Director. As of December 31, 2022, there were 74,368 restricted stock units vested for which the holders elected to defer delivery of the Company's shares. As of December 31, 2022 and 2021, the Company's total unrecognized compensation cost related to nonvested restricted stock unit awards granted to employees was, $51.6 million and $54.1 million, respectively, which will be recognized over a weighted average vesting period of approximately 2.7 years and 2.6 years, respectively. Stock-based Compensation - Total stock-based compensation expense included in the Consolidated Statements of Operations, net of amounts capitalized to system development costs is as follows: Year Ended December 31, (in thousands of dollars) 2022 2021 Technology and facilities $ 6,993 $ 2,844 Sales and marketing 143 125 Personnel 20,484 15,888 Total stock-based compensation (1) $ 27,620 $ 18,857 (1) Amounts shown are net of $2.5 million and $1.0 million of capitalized stock-based compensation for the year ended December 31, 2022 and 2021, respectively. Cash flows from the tax shortfalls or benefits for tax deductions resulting from the exercise of stock options in comparison to the compensation expense recorded for those options are required to be classified as cash from financing activities. The Company recognized $8.1 million and $5.4 million of income tax benefit in its consolidated statement of operations related to stock-based compensation expense during the years ended December 31, 2022 and 2021, respectively. Additionally, the total income tax expense (benefit) recognized in the income statement for share-based compensation exercises was $3.3 million and $(0.2) million for the years ended December 31, 2022 and 2021, respectively. Retirement Plan The Company maintains a 401(k) Plan, which enables employees to make pre-tax or post-tax deferral contributions to the participating employees account. Employees may contribute a portion of their pay up to the annual amount as set periodically by the Internal Revenue Service. The Company provides for an employer 401(k) contribution match of up to 4% of an employee’s eligible compensation. The total amount contributed by the Company for the years ended December 31, 2022 and 2021 was $6.4 million and $3.7 million, respectively. All employee and employer contributions will be invested according to participants’ individual elections. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 13. Revenue Interest Income - Total interest income included in the Consolidated Statements of Operations is as follows: Year Ended December 31, (in thousands) 2022 2021 Interest income Interest on loans $ 854,245 $ 566,155 Fees on loans 21,869 9,684 Total interest income $ 876,114 $ 575,839 Non-interest Income - Total non-interest income included in the Consolidated Statements of Operations is as follows: Year Ended December 31, (in thousands) 2022 2021 Non-interest income Gain on loan sales $ 5,703 $ 26,750 Servicing fees 19,928 13,253 Subscription revenue 31,186 813 Other income 19,614 10,127 Total non-interest income $ 76,431 $ 50,943 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The following are the domestic and foreign components of the Company’s income before taxes: Year Ended December 31, (in thousands) 2022 2021 Domestic $ (83,793) $ 61,087 Foreign 8,507 1,704 Income (loss) before taxes $ (75,286) $ 62,791 The provision for income taxes consisted of the following: Year Ended December 31, (in thousands) 2022 2021 Current Federal $ (1,217) $ (1,394) State $ 1,505 $ (516) Foreign $ 2,227 $ 836 Total current $ 2,515 $ (1,074) Deferred Federal (712) 11,005 State 806 5,372 Foreign (151) 74 Total deferred $ (57) $ 16,451 Total provision for income taxes $ 2,458 $ 15,377 Income tax expense was $2.5 million and $15.4 million for the years ended December 31, 2022 and 2021, which represents an effective tax rate of (3.3)% and 24.5%, respectively. A reconciliation of income tax expense with the amount computed by applying the statutory U.S. federal income tax rates to income before provision for income taxes is as follows: Year Ended December 31, (in thousands) 2022 2021 Income tax (benefit) expense computed at U.S. federal statutory rate $ (15,810) $ 13,186 State tax 1,403 4,646 Foreign rate differential 289 552 Federal tax credits (2,621) (1,962) Share based compensation expense 506 (353) Change in unrecognized tax benefit reserves 1,326 853 Net operating loss carryback tax rate differential — (172) Return to provision adjustment (5,798) (2,812) Non-deductible acquisition costs — 1,458 Goodwill impairment 22,779 — Fines and penalties 578 6 Other (194) (25) Income tax expense $ 2,458 $ 15,377 Effective tax rate (3.3) % 24.5 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating losses and tax credit carryforwards. The primary components of the Company’s net deferred tax assets and liabilities are composed of the following: December 31, (in thousands) 2022 2021 Deferred tax assets: Accrued expenses and reserves $ 3,361 $ 3,356 Leases 10,174 12,859 Share-based compensation 8,335 7,410 CARES Act payroll taxes — 536 Net operating loss & credit carryforward 41,169 23,916 Other 245 — Total deferred tax assets $ 63,284 $ 48,077 Valuation allowance $ — $ — Deferred tax liabilities: System development costs $ (11,803) $ (22,323) Right of use assets (8,163) (10,353) Depreciation and amortization (6,813) (7,112) Fair value adjustment - Loans Receivable (12,077) (30,718) Fair value adjustment - Bonds Payable (53,210) (1,838) Other — (234) Total deferred tax liabilities (92,066) (72,578) Net deferred taxes $ (28,782) $ (24,501) As provided for in the Tax Cuts and Jobs Act of 2017, our historical earnings were subject to the one-time transition tax and can now be repatriated to the U.S. with a de minimis tax cost due to the participation exemption put in place by the 2017 Tax Act. The Company continues to assert that both its historical and current earnings in its foreign subsidiaries are permanently reinvested and therefore no deferred taxes have been provided. On December 22, 2021, the Company completed the acquisition of Digit, in which Digit became a wholly-owned subsidiary of the Company, triggering an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended. This transaction was considered a stock acquisition for tax purposes. The tax attributes acquired were updated during the year due to the twelve-month measurement period. Digit has a $53.3 million federal net operating loss carryforward, all of which is available to offset future taxable income during the carryforward periods based on limitations under IRC Section 382. The Company also acquired state NOLs of $27.4 million. The Company has not recorded a valuation allowance on the federal or state net operating loss balances as it believes that it is more likely than not that the deferred tax assets will be realized. As of December 31, 2022, the Company had federal net operating loss carryforwards of $135.2 million, of which $17.7 million expires beginning in 2033 and $117.5 million carries forward indefinitely. Additionally, the Company had state net operating loss carryforwards of $119.1 million which are set to begin expiring in 2031. As of December 31, 2022, the Company had federal and California research and development tax credit carryforwards of $5.2 million and $5.0 million, respectively. The federal research and development tax credit expires beginning in 2041, and the California research and development tax credits are not subject to expiration. The following table summarizes the activity related to the unrecognized tax benefits: Year Ended December 31, (in thousands) 2022 2021 Balance as of January 1, $ 5,170 $ 3,927 Increases related to current year tax positions 894 680 Increases related to prior year tax positions 544 638 Decreases related to prior year tax positions — (75) Balance as of December 31, $ 6,608 $ 5,170 Interest and penalties related to the Company’s unrecognized tax benefits accrued as of December 31, 2022 and 2021 were $0.9 million and $0.4 million, respectively. The Company’s policy is to recognize interest and penalties associated with income taxes in income tax expense. The Company does not expect to release any of the uncertain tax positions within the next twelve months. The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, is $4.5 million. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 15. Fair Value of Financial Instruments Financial Instruments at Fair Value The Company elected the fair value option for all loans receivable held for investment and for all asset-backed notes. Loans that the Company designates for sale will continue to be accounted for as held for sale and recorded at the lower of cost or fair value until the loans receivable are sold . The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances as of the dates shown: December 31, 2022 December 31, 2021 (in thousands) Unpaid Principal Balance Fair Value Unpaid Principal Balance Fair Value Assets Loans receivable - personal loans $ 2,967,266 $ 3,027,401 $ 2,205,537 $ 2,321,150 Loans receivable - credit cards 131,343 116,252 67,327 65,657 Total loans receivable $ 3,098,609 $ 3,143,653 $ 2,272,864 $ 2,386,807 Liabilities Asset-backed notes $ 2,582,025 $ 2,387,674 $ 1,654,412 $ 1,651,706 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 loan receivables balance at fair value as of 12/31/2022, consists of $2,903.2 million of unsecured personal loan receivables and $124.2 million of secured personal loan receivables. December 31, 2022 December 31, 2021 (3) Personal Loan Receivables Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average (2) Remaining cumulative charge-offs (1) 5.06% 51.45% 9.86% 6.75% 51.86% 9.53% Remaining cumulative prepayments (1) —% 33.59% 28.73% —% 44.25% 32.47% Average life (years) 0.05 1.52 1.01 0.22 1.51 0.87 Discount rate 11.34% 11.34% 11.34% 6.90% 6.90% 6.90% (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 borrower, original loan maturity terms) . (3) The weighted average amounts disclosed for remaining cumulative charge-offs, average life and discount rate and the minimum and maximum discount rate as of December 31, 2021 differ from what was previously disclosed for comparability to amounts disclosed as of December 31, 2022. The amounts disclosed previously as of December 31, 2021 included aggregated inputs for both personal loan receivables and credit card receivables. This disclosure has been disaggregated as of December 31, 2022. December 31, 2022 December 31, 2021 Credit Card Receivables Range Range Remaining cumulative charge-offs (1) 22.80% 11.81% Principal payment rate (1) 9.28% 18.07% Average life (years) 0.69 0.34 Discount rate 14.84% 8.35% (1) Figure disclosed as a percentage of outstanding principal balance. Fair value adjustments related to financial instruments where the fair value option has been elected are recorded through earnings for the years ended December 31, 2022 and 2021. 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 loan receivables, 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 tested the unsecured personal loan fair value model by comparing modeled cash flows to historical loan performance to ensure that the model was complete, accurate and reasonable for the Company’s use. The Company also engaged a third party to create an independent fair value estimate for the Loans Receivable at Fair Value, which provides a set of fair value marks using the Company’s historical loan performance data and whole loan sale prices to develop independent forecasts of borrower behavior. For credit card receivables, the Company uses historical data to derive assumptions about certain loan portfolio characteristics such as principal payment rates, interest yields and fee yields. Similar to the model used for personal loan receivables, the Company engaged a third party to create an independent fair value estimate, which provides a range of fair values that are compared for reasonableness. The table below presents a reconciliation of Loans Receivable at Fair Value on a recurring basis using significant unobservable inputs: December 31, (in thousands) 2022 2021 Balance – beginning of period $ 2,386,807 $ 1,696,526 Principal disbursements 3,111,276 2,052,280 Principal payments from borrowers (1,974,832) (1,276,058) Gross charge-offs (310,701) (142,985) Net (decrease) increase in fair value (68,897) 57,044 Balance ‑ end of period $ 3,143,653 $ 2,386,807 As of December 31, 2022, the aggregate fair value of loans that are 90 days or more past due and in non-accrual status was $4.1 million, and the aggregate unpaid principal balance for loans that are 90 days or more past due was $35.2 million. As of December 31, 2021, the aggregate fair value of loans that are 90 days or more past due and in non-accrual status was $3.5 million, and the aggregate unpaid principal balance for loans that are 90 days or more past due was $20.7 million. 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: December 31, 2022 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 98,817 $ 98,817 $ 98,817 $ — $ — Restricted cash 105,000 105,000 105,000 — — Liabilities Accounts payable 9,670 9,670 9,670 — — Secured financing (Note 9) 320,000 306,574 — 306,574 — Acquisition and corporate financing (Note 9) 235,679 233,166 — 233,166 — December 31, 2021 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 130,959 $ 130,959 $ 130,959 $ — $ — Restricted cash 62,001 62,001 62,001 — — Loans held for sale (Note 5) 491 547 — — 547 Liabilities Accounts payable 8,343 8,343 8,343 — — Secured financing (Note 9) 398,000 396,081 — 396,081 — Acquisition and corporate financing (Note 9) 116,000 116,000 — 116,000 — 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. • Loans held for sale ‑ The fair values of loans held for sale are based on a negotiated agreement with the purchaser. • Secured financing and acquisition and corporate financing ‑ The fair values of the secured financing and acquisition 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. There were no transfers in or out of Level 3 assets and liabilities for the years ended December 31, 2022 and 2021. |
Leases, Commitments, and Contin
Leases, Commitments, and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases, Commitments, and Contingencies | 16. 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 10 years or less. During the first quarter of 2022, the Company made the decision to close an additional 27 retail locations in April 2022. The Company incurred $1.4 million in expenses related to the accelerated amortization of right-of-use assets for the year ended December 31, 2022. The retail location closures were substantially completed in the second quarter of 2022 and the Company does not expect any additional expenses to be incurred. As a result of the retail network optimization plan, for the year ended December 31, 2021, the Company incurred $12.8 million in expenses related to retail location closures. $5.2 million of the expenses related to the retail location closures for the year ended December 31, 2021 relate to the accelerated amortization of right-of-use assets and the renegotiation of lease liabilities. The initial retail network optimization plan was substantially completed in the third quarter of 2021. 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 Consolidated Statements of Operations. 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. As of December 31, 2022, 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 2023 $ 13,879 2024 11,940 2025 9,969 2026 3,918 2027 1,032 Thereafter 25 Total lease payments 40,763 Imputed interest (2,816) Total leases $ 37,947 Total sublease income $ — Net lease liabilities $ 37,947 Weighted average remaining lease term 3.2 years Weighted average discount rate 4.06 % As of December 31, 2021, 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 2022 $ 14,927 2023 13,214 2024 11,142 2025 9,238 2026 3,387 Thereafter 706 Total lease payments 52,614 Imputed interest (4,030) Total leases $ 48,584 Sublease income 2022 $ (896) 2023 and thereafter — Total lease payments (896) Imputed interest 11 Total sublease income $ (885) Net lease liabilities $ 47,699 Weighted average remaining lease term 3.9 years Weighted average discount rate 4.01 % Rental expenses under operating leases for the years ended December 31, 2022 and 2021 were $18.5 million and $24.3 million, respectively. Purchase Commitment ‑ The Company has commitments to purchase information technology and communication services in the ordinary course of business, with various terms through 2023. 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 $26.4 million in 2023, $14.1 million in 2024, $5.5 million in 2025, $2.0 million in 2026, and $0.0 million in 2027 and thereafter. Bank Partnership Program and Servicing Agreement - The Company entered into a bank partnership program with Pathward, N.A. on August 11, 2020. In accordance with the agreements underlying the bank partnership program, Oportun has a commitment to purchase an increasing percentage of program loans originated by Pathward based on thresholds specified in the agreements. Lending under the partnership was launched in August of 2021 and as of December 31, 2022, the Company has a commitment to purchase an additional $0.6 million of program loans based on originations through December 31, 2022. Whole Loan Sale Program ‑ Through March 4, 2022, the Company had a commitment to sell to a third-party institutional investor 10% of its unsecured loan originations that satisfy certain eligibility criteria, and an additional 5% at the Company’s sole option. The Company chose not to renew the arrangement and allowed the agreement to expire on its terms on March 4, 2022. For details regarding the whole loan sale program, refer to Note 5, Loans Held for Sale . Unfunded Loan and Credit Card Commitments - Unfunded loan and credit card commitments at December 31, 2022 and 2021 were $45.0 million and $39.8 million, respectively. WebBank has a direct obligation to borrowers to fund such credit card commitments subject to the respective account agreements with such borrowers; however, pursuant to the Receivables Purchase Agreement between WebBank and Oportun, Inc., the Company has the obligation to purchase receivables from WebBank representing these unfunded amounts. Litigation Regulatory Proceedings On March 3, 2021, the Company received a Civil Investigative Demand (CID) from the CFPB. The stated purpose of the CID is to determine whether small-dollar lenders or associated persons, in connection with lending and debt-collection practices, have failed to comply with certain federal consumer protection laws over which the CFPB has jurisdiction. The Company received additional information requests related to the CID. The information requests are focused on the Company's legal collection practices from 2019 to 2021 and hardship treatments offered to members during the COVID-19 pandemic. On September 15, 2022, the Company received a Notice and Opportunity to Respond and Advise (“NORA”) letter from the staff of the CFPB in connection with the CID, stating that it is considering whether to recommend that the CFPB take legal action against the Company based on alleged violations focused on the Company's failure to timely dismiss certain lawsuits and the hardship treatments offered during the COVID-19 pandemic, including credit reporting related thereto. On October 14, 2022, the Company provided the CFPB with its written response to the NORA letter disputing the allegations. The Company is cooperating fully with the CFPB with respect to this matter and the Company believes that its business practices have been in full compliance with applicable laws. Because the CFPB has broad authority to determine what it views as potentially unfair, deceptive or abusive acts or practices, at this time, the Company is unable to predict the ultimate outcome of this matter. Digit received a CID from the CFPB in June 2020. The CID was disclosed and discussed during the acquisition process. The stated purpose of the CID is to determine whether Digit, in connection with offering its products or services, misrepresented the terms, conditions, or costs of the products or services in a manner that is unfair, deceptive, or abusive. While the Company believes that the business practices of the Company, including Digit, have been in full compliance with applicable laws, in the interest of resolving this matter, on August 11, 2022, Digit agreed to a consent order with the CFPB resolving such CID. In connection with such consent order, Digit agreed to implement a redress and compliance plan to pay at least $68,145 in consumer redress to consumers who may have been harmed and paid a $2.7 million civil penalty to the CFPB in the third quarter of 2022. The Company had previously established a reserve for the redress and civil penalty in the second quarter of 2022 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On February 9, 2023, the Company announced that it is taking a series of measures to streamline its operations, including reducing the size of its corporate staff by 10%, impacting approximately 155 employees, and reducing its expenditures on external contractors. In relation to these and other personnel related activities, management expects to incur non-recurring, pre-tax charges of $6 to $7 million in the first quarter of 2023. The estimates of the charges and expenditures that the Company expects to incur in connection with these activities, and the timing thereof, are subject to a number of assumptions, and actual amounts may differ materially from estimates. The Company may also incur charges and expenditures not currently contemplated due to unanticipated events that may occur in connection with these measures. On February 10, 2023, the Acquisition Financing facility was further amended. This fifth amendment, among other things, revises the interest rate from SOFR plus 8.00% to SOFR plus 11.00% and adjusts the amortization schedule to defer $42.0 million in principal payments through July 2023, with a final payment in October 2024. On March 8, 2023, the Credit Card Warehouse was further amended. This amendment, among other things, extends the revolving period by a year, to December 31, 2024, and reduces the commitment from $150.0 million to $120.0 million. On March 10, 2023 (the “Second Amendment Closing Date”), the Company amended its Corporate Financing facility by entering into an Amendment No. 2 (the “Second Amendment”) by and among the Company, as borrower, the subsidiaries of the Company party thereto as guarantors, certain affiliates of Neuberger Berman Specialty Finance as lenders, and Wilmington Trust, National Association, as administrative agent and collateral agent (the “Agent”), which amended the Credit Agreement, dated as of September 14, 2022 (as amended, supplemented or otherwise modified, including by the Second Amendment, the “Amended Credit Agreement”), by and among the Company, the lenders from time to time party thereto and the Agent. On the Second Amendment Closing Date, the Company borrowed $20.8 million of incremental term loans (the “Incremental Tranche A-1 Loans”) and intends to borrow an additional $4.2 million of incremental term loans (the “Incremental Tranche A-2 Loans”) on or about March 27, 2023, which amount has been committed by the applicable lenders. Under the Amended Credit Agreement, the Company may borrow up to an aggregate additional amount of $50.0 million on an uncommitted basis, in two $25.0 million tranches (the “Incremental Tranche B Loans” and the “Incremental Tranche C Loans”) expected to be available, if provided by the applicable lenders, on or about April 21, 2023 and June 23, 2023, respectively. The loans (the “Loans”) and other obligations under the Amended Credit Agreement are secured by the assets of the Company and certain of its subsidiaries guaranteeing the Loans, including pledges of the equity interests of certain subsidiaries that are directly or indirectly owned by the Company, subject to customary exceptions. Following the Second Amendment Closing Date the Loans bear interest, at (a) an amount equal to 1-month term SOFR plus 9.00% plus (b) an amount payable in cash or in kind, at the Company's option, equal to 3.00%. The Loans are scheduled to mature on September 14, 2026, and are not subject to amortization. Certain prepayments of the Loans are subject to a prepayment premium. On the Second Amendment Closing Date, pursuant to the Second Amendment, the Company issued warrants (the “Warrants”) to the lenders providing the Incremental Tranche A-1 Loans to purchase 1,980,242 shares of the Company’s common stock at an exercise price of $0.01 per share. In addition, (a) in connection with the funding of the Incremental Tranche A-2 Loans, the Company will issue Warrants to the lenders providing the Incremental Tranche A-2 Loans to purchase 116,485 shares of the Company’s common stock, (b) in connection with the funding of the Incremental Tranche B Loans, the Company will issue Warrants to the lenders providing the Incremental Tranche B loans to purchase 1,048,363 shares of the Company's common stock, and (c) in connection with the funding of the Incremental Tranche C Loans, the Company will issue Warrants to the lenders providing the Incremental Tranche C Loans to purchase 1,048,363 shares of the Company’s common stock, in each case, at an exercise price of $0.01 per share. The Company also entered into a Registration Rights Agreement with the applicable lenders on the Second Amendment Closing Date (the “Registration Rights Agreement”), which stipulates that the Company will file a registration statement with the Securities and Exchange Commission with respect to the shares underlying the Warrants. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation ‑ The Company meets the SEC's definition of a "Smaller Reporting Company”, and therefore qualifies for the SEC's reduced disclosure requirements for smaller reporting companies. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The 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 prior-period financial information has been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates ‑ The preparation of the 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 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 consolidated financial statements; therefore, actual results could differ from those estimates and assumptions. |
Business Combinations | Business Combinations - The Company accounts for business combinations using the acquisition method of accounting which requires the fair values of the assets acquired and the liabilities assumed to be recognized in the consolidated financial statements. Assets acquired and liabilities assumed in a business combination are recognized at their estimated fair value as of the acquisition date. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired requires management to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset or liability. The excess purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period, with the corresponding offset to goodwill. Acquisition-related costs, such as legal and consulting fees, are recognized separately from the business combination and are expensed as incurred. |
Consolidation and Variable Interest Entities | Consolidation and Variable Interest Entities ‑ The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s policy is to consolidate the financial statements of entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a voting interest entity or variable interest entity ("VIE") and if the accounting guidance requires consolidation. VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The Company determines whether it has a controlling financial interest in a VIE by considering whether its involvement with the VIE is significant and whether it is the primary beneficiary of the VIE based on the following: • The Company has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; • The aggregate indirect and direct variable interests held by us have the obligation to absorb losses or the right to receive benefits from the entity that could be significant to the VIE; an • Qualitative and quantitative factors regarding the nature, size, and form of the Company’s involvement with the VIE. |
Foreign Currency Re-measurement | Foreign Currency Re-measurement ‑ The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are re-measured into U.S. dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are re-measured at historical rates. Revenue and expenses are re-measured at average exchange rates in effect during each period. Foreign currency gains and losses from re-measurement and transaction gains and losses are recorded as general, administrative and other expense in the Consolidated Statements of Operations. |
Concentration of Credit Risk | Concentration of Credit Risk ‑ Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable at fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents ‑ Cash and cash equivalents consist of unrestricted cash balances and short-term, liquid investments with a maturity date of three months or less at the time of purchase. Digit's savings platform connects to members’ checking accounts and analyzes their income and spending patterns to find amounts that can safely be set aside towards savings goals. Digit calculates these amounts by identifying upcoming bills and regular spending habits to ensure optimal amounts are flagged for savings and transferred to savings accounts. The funds in these saving accounts are owned by Digit members and are not the assets of the Company. Therefore, these funds are not included in the Consolidated Balance Sheets. |
Restricted Cash | Restricted Cash ‑ Restricted cash represents cash held at a financial institution as part of the collateral for the Company’s Secured Financing, asset-backed notes and loans designated for sale. |
Loans Receivable at Fair Value | Loans Receivable at Fair Value ‑ Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are considered as loans held for investment. The Company elected the fair value option for all loans receivable held for investment. Under fair value accounting, direct loan origination fees are recognized in income immediately and direct loan origination costs are expensed in the period the loan originates. In addition, the Company recognizes annual fees on credit card receivables into income immediately upon activation of the credit card by the credit card holder and subsequent annual fees when billed upon the anniversary of the credit card account. Loans are charged off at the earlier of when loans are determined to be uncollectible or when loans are 120 days contractually past due, or 180 days contractually past due in the case of credit cards. Recoveries are recorded when cash is received on loans that had been previously charged off. The Company estimates the fair value of the loans using a discounted cash flow model, which considers various unobservable inputs such as remaining cumulative charge-offs, remaining cumulative prepayments or principal payment rates for our credit card receivables, average life and discount rate. The Company re-evaluates the fair value of loans receivable at the close of each measurement period. Changes in fair value are recorded in "Net decrease in fair value" in the Consolidated Statements of Operations in the period of the fair value changes. |
Fair Value Measurements | Fair Value Measurements ‑ The Company follows applicable guidance that establishes a fair value measurement framework, provides a single definition of fair value and requires expanded disclosure summarizing fair value measurements. Such guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. Fair value guidance establishes a three-level hierarchy for inputs used in measuring the fair value of a financial asset or financial liability. • Level 1 financial instruments are valued based on unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date. • Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. • Level 3 financial instruments are valued using pricing inputs that are unobservable and reflect the Company’s own assumptions that market participants would use in pricing the asset or liability. |
Loans Held for Sale | Loans Held for Sale ‑ Loans held for sale are recorded at the lower of cost or fair value, until the loans are sold. Loans held for sale are sold within four days of origination. Cost of loans held for sale is inclusive of unpaid principal plus net deferred origination costs. |
Derivatives | Derivatives - Derivative financial instruments are recognized as either assets or liabilities in the consolidated balance sheet at fair value. Changes in fair value and settlements of derivative instruments are reflected in earnings as a component of "net decrease in fair value" in the Consolidated Statements of Operations. The Company does not use derivative instruments for trading or speculative purposes. Based on the agreements entered into with Pathward, N.A. (formerly known as MetaBank, N.A.) for all loans originated and retained by Pathward, Pathward receives a fixed interest rate. Oportun bears the risk of credit loss and has the benefit of any excess interest proceeds after satisfying various obligations under the agreements. |
Goodwill and Intangible Assets | Goodwill ‑ Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired. The Company performs impairment testing for goodwill annually or more frequently if an event or change in circumstances indicates that goodwill may be impaired. The Company first assesses qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the Company concludes the fair value is less than its carrying value a quantitative test is performed. The Company performs a quantitative goodwill impairment test by determining the fair value of the reporting unit and comparing it to the carrying value of the reporting unit. If the fair value of the reporting unit is greater than the reporting unit's fair value, then the carrying value of the reporting unit is deemed to be recoverable. If the carrying value of the reporting unit is greater than the reporting unit's fair value, goodwill is impaired and written down to the reporting unit's fair value. In response to a sustained decline in the Company's share price primarily driven by macroeconomic conditions, the Company conducted a quantitative test of our goodwill as of September 30, 2022. As a result of this quantitative test, the Company identified an impairment to goodwill resulting in recognition of a $108.5 million non-cash goodwill impairment charge for the year ended December 31, 2022. There were no goodwill impairment charges during the year ended December 31, 2021. For further discussion, refer to Note 7, Capitalized Software, Other Intangibles and Goodwill . Intangible Assets other than Goodwill - At the time intangible assets are initially recognized, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of certain trade names, which we have determined have indefinite lives. Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives. Intangible assets with a finite useful life are presented net of accumulated amortization on the Consolidated Balance Sheets. The Company reviews the intangible assets with finite useful lives for impairment at least annually and whenever changes in circumstances indicate their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. |
Fixed Assets | Fixed Assets ‑ Fixed assets are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which is generally three years for computer and office equipment and furniture and fixtures, and three |
Systems Development Costs | Systems Development Costs ‑ The Company capitalizes software developed or acquired for internal use, and these costs are included in Capitalized software and other intangibles, net on the Consolidated Balance Sheets. The Company has internally developed its proprietary Web-based technology platform, which consists of application processing, credit scoring, loan accounting, servicing and collections, debit card processing, data and analytics and digital banking services. The Company capitalizes its costs to develop software when preliminary development efforts are successfully completed; management has authorized and committed project funding; and it is probable the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. When the software developed for internal use has reached its technological feasibility, such costs are amortized on a straight-line basis over the estimated useful life of the assets, which is generally three years. Costs incurred for upgrades and enhancements that are expected to result in additional functionality are capitalized and amortized over the estimated useful life of the upgrades. |
Impairment | Impairment ‑ The Company reviews long-lived assets, including fixed assets, right of use assets and system development costs, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. |
Asset-Backed Notes at Fair Value and Acquisition Financing | Asset-Backed Notes at Fair Value ‑ The Company elected the fair value option to account for all asset-backed notes. 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 re-evaluates the fair value of the asset-backed notes at the close of each measurement period. Changes in fair value are recorded in Net decrease in fair value in the Consolidated Statements of Operations in the period of the fair value changes. Acquisition Financing ‑ The Acquisition Financing is an asset-backed note carried at amortized cost. The Company reports issuance costs associated with the financing on its balance sheet as a direct reduction in the carrying amount of the note, and they are amortized over the life of the |
Revenue Recognition | Revenue Recognition ‑ The Company’s primary sources of revenue consist of interest and non-interest income. Interest Income Interest income includes interest and fees on loans. Generally, the Company’s loans require semi-monthly or biweekly borrower payments of interest and principal. Fees on loans include billed late fees offset by charged-off fees and provision for uncollectible fees. The Company charges borrowers a late fee if a scheduled installment payment becomes delinquent. Depending on the loan, late fees are assessed when the loan is eight to 16 days delinquent. Late fees are recognized when they are billed. When a loan is charged off, uncollected late fees are also written off. For Loans Receivable at Fair Value, interest income includes (i) billed interest and late fees, plus (ii) origination fees recognized at loan disbursement, less (iii) charged-off interest and late fees, less (iv) provision for uncollectible interest and late fees. Additionally, direct loan origination expenses are recognized in operating expenses as incurred. For Loans Receivable at Fair Value, loan origination fees and costs are recognized when incurred. Interest income on our personal loan receivables is recognized based upon the amount the Company expects to collect from its borrowers. When a loan becomes delinquent for a period of 90 days or more, interest income continues to be recorded until the loan is charged off. Delinquent loans are charged off at month-end during the month it becomes 120 days’ delinquent. For personal loans receivable, the Company mitigates the risk of income recorded for loans that are delinquent for 90 days or more by establishing a 100% provision and the provision for uncollectible interest and late fees is offset against interest income. Previously accrued and unpaid interest is also charged off in the month the Company receives a notification of bankruptcy, a judgment or mediated agreement by the court, or loss of life, unless there is evidence that the principal and interest are collectible. |
Non-Interest Income | Non-Interest Income Non-interest income includes subscription revenue, servicing fees, gain on loan sales, debit card income, documentation fees, sublease income and other income. Subscription Revenue - The Company earns revenue on a subscription basis from users of its platform. Revenue is recognized ratably over each month as the performance obligation is satisfied over time. Deferred revenue is recognized when the service period spans into the following month. Servicing Fees ‑ The Company retains servicing rights on sold loans. Servicing fees comprise the contractual annual servicing fee based upon the average daily principal balance of loans sold that the Company earns for servicing loans sold to a third-party financial institution. The servicing fee compensates the Company for the costs incurred in servicing the loans, including providing customer services, receiving borrower payments and performing appropriate collection activities. Management believes the fee approximates a market rate and accordingly has not recognized a servicing asset or liability. Gain on Loan Sales ‑ The Company recognizes a gain on sale from the difference between the proceeds received from the purchaser and the carrying value of the loans on the Company’s books. The Company sells a certain percentage of new loans twice weekly. A transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: • The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. • The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. • The transferor does not maintain effective control of the transferred assets. For the years ended December 31, 2022 and 2021 all of the Company's loan sales met the requirements for sale treatment. The Company records the gain on the sale of a loan at the sale date in an amount equal to the proceeds received less outstanding principal, accrued interest, late fees and net deferred origination costs. Debit card income is the revenue from interchange fees when borrowers use our reloadable debit card for purchases as well as the associated card user fees. Documentation Fees - On a monthly basis Pathward, N.A. pays the Company documentation fees as compensation for its role in facilitation of loan originations by Pathward. The documentation fees are equivalent to loan origination fees charged by Pathward to its borrowers. Documentation fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. The transaction fee is determined each time a loan is issued based on that loan’s initial principal amount and is recognized when performance is complete and upon the successful origination of a borrower's loan. Sublease income is the rental income from subleasing a portion of our existing right of use assets. Other income includes marketing incentives paid directly to us by the merchant clearing company based on transaction volumes, interest earned on cash and cash equivalents and restricted cash, and gain (loss) on asset sales. |
Interest expense | Interest expense ‑ Interest expense consists of interest expense associated with the Company’s asset-backed notes, Corporate Financing and Secured Financing, and it includes the amortization of deferred origination costs for the Corporate Financing and Secured Financing facilities as well as fees for the unused portion of the Secured Financing facility. The Company elected the fair value option for all asset-backed notes. Accordingly, all origination costs for such asset-backed notes at fair value are expensed as incurred. |
Income Taxes | Income Taxes ‑ The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company evaluates uncertain tax positions by reviewing against applicable tax law all positions taken by the Company with respect to tax years for which the statute of limitations is still open. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company recognizes interest and penalties related to the liability for unrecognized tax benefits, if any, as a component of the Income tax expense line in the accompanying Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation ‑ The Company accounts for stock-based employee awards based on the fair value of the award which is measured at grant date. Accordingly, stock-based compensation cost is recognized in operating expenses in the Consolidated Statements of Operations over the requisite service period. The fair value of stock options granted or modified is estimated using the Black-Scholes option pricing model. The Company accounts for forfeitures as they occur and does not estimate forfeitures as of the award grant date. The Company granted restricted stock units ("RSUs") to employees that vest upon the satisfaction of time-based criterion of up to four years and previously some included a performance criterion, a liquidity event in connection with an initial public offering or a change in control. These RSUs were not considered vested until both criteria were met and provided that the participant was in continuous service on the vesting date. Compensation cost for awards with performance criteria, measured on the grant date, was recognized when both the service and performance conditions were probable of being achieved. For grants and awards with just a service condition, the Company recognizes stock-based compensation expenses using the straight-line basis over the requisite service period net of forfeitures. For grants and awards with both service and performance conditions, the Company recognizes expenses using the accelerated attribution method. |
Treasury Stock | Treasury Stock ‑ Treasury stock is reported at cost, and no gain or loss is recorded on stock repurchase transactions. Repurchased shares are held as treasury stock until they are retired or re-issued. |
Basic and Diluted Earnings per Share | Basic and Diluted Earnings per Share ‑ Basic earnings per share is computed by dividing net income per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. The Company computes earnings per share using the two-class method required for participating securities. The Company considers all series of convertible preferred stock to be participating securities due to their noncumulative dividend rights. As such, net income allocated to these participating securities, which includes participation rights in undistributed earnings, are subtracted from net income to determine total undistributed net income to be allocated to common stockholders. All participating securities are excluded from basic weighted-average common shares outstanding. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards None. |
Short-term Leases | 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 Consolidated Statements of Operations. |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings (Loss) Per Share | Basic and diluted earnings (loss) per share are calculated as follows: Year Ended December 31, (in thousands, except share and per share data) 2022 2021 Net income (loss) $ (77,744) $ 47,414 Net income (loss) attributable to common stockholders $ (77,744) $ 47,414 Basic weighted-average common shares outstanding 32,825,772 28,191,610 Weighted average effect of dilutive securities: Stock options — 1,375,915 Restricted stock units — 755,669 Diluted weighted-average common shares outstanding 32,825,772 30,323,194 Earnings (loss) per share: Basic $ (2.37) $ 1.68 Diluted $ (2.37) $ 1.56 |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Weighted-Average Common Shares Outstanding | 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: Year Ended December 31, 2022 2021 Stock options 3,527,096 2,038,022 Restricted stock units 4,347,899 19,073 Total anti-dilutive common share equivalents 7,874,995 2,057,095 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table represents the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets: December 31, (in thousands) 2022 2021 Consolidated VIE assets Restricted cash $ 91,395 $ 41,803 Loans receivable at fair value 3,081,557 2,267,205 Interest and fee receivable 30,443 19,869 Total VIE assets 3,203,395 2,328,877 Consolidated VIE liabilities Secured financing (1) 320,000 398,000 Asset-backed notes at fair value 2,387,674 1,651,706 Acquisition financing (1) 85,679 116,000 Total VIE liabilities $ 2,793,353 $ 2,165,706 (1) Amounts exclude deferred financing costs. See Note 9, Borrowings for additional information. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Total Consideration | December 31, (in thousands) 2021 Fair value of Oportun common stock issued to Digit stockholders (1) $ 73,181 Cash paid to common and preferred stockholders, warrant holders, and vested option holders (2) 132,151 Total purchase consideration (3) $ 205,332 ( 1) The fair value is based on 3,522,182 shares of Company common stock at $20.72 per share, which represents the mid-point of the trading price of Oportun shares on December 22, 2021. The mid-point was used because the transaction closed during the trading day. $0.2 million relates to replacement restricted stock units awarded to Digit unvested option holders. (2) $1.3 million of the cash paid is being held in escrow as security for purpose of securing any amounts payable by the selling parties on account of indemnification obligations, purchase price adjustments, and other amounts payable under the merger agreement. (3) The total consideration as reported herein differs from the amounts previously disclosed due to changes in the underlying value of the stock between the date of the definitive agreement and the closing of the acquisition. The number of shares of Company common stock comprising the stock portion of the consideration was determined using the stock price as of the signing of the definitive agreement. |
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date: December 22, (in thousands) 2021 Goodwill $ 104,014 Acquired intangible assets 35,300 Developed technology 48,500 Cash and cash equivalents 20,499 Other assets acquired and liabilities assumed, net (2,981) Total purchase consideration $ 205,332 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The table below summarizes the acquired intangible assets and developed technology, with estimated useful lives, as of the acquisition date: Estimated fair values (in thousands) Estimated useful life (years) Member relationships $ 34,500 7.0 Trade name 800 3.0 Developed technology 48,500 7.0 Total acquired intangibles and developed technology $ 83,800 |
Schedule of Pro Forma Operational Results | December 31, (in thousands) 2021 Total revenues $ 666,158 Net income (loss) attributable to shareholders $ 33,971 |
Capitalized Software, Other I_2
Capitalized Software, Other Intangibles and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Capitalization | Capitalized software, net consists of the following: December 31, (in thousands) 2022 2021 Capitalized software, net: System development costs $ 135,303 $ 84,550 Acquired developed technology 48,500 48,500 Less: Accumulated amortization (79,679) (45,433) Total capitalized software, net $ 104,124 $ 87,617 |
Schedule of Acquired Intangible Assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class are as follows: December 31, December 31, (in thousands) 2022 2021 Intangible assets: Member relationships 34,500 $ 34,500 Trademarks 6,426 6,364 Other 3,000 3,000 Less: Accumulated amortization (8,249) $ (300) Total intangible assets, net 35,677 $ 43,564 |
Schedule of Future Amortization Expense | Expected future amortization expense for intangible assets as of December 31, 2022 is as follows: (in thousands) Fiscal Years 2023 $ 7,948 2024 7,798 2025 4,929 2026 4,929 2027 4,929 Thereafter 4,780 Total $ 35,313 |
Schedule of Goodwill | The following table represents the changes in goodwill since December 31, 2021: (in thousands) Goodwill Balance as of December 31, 2021 $ 104,014 Measurement adjustments during period 4,458 Impairment (108,472) Balance as of December 31, 2022 $ — |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, (in thousands) 2022 2021 Fixed assets Total fixed assets $ 48,212 $ 44,100 Less: Accumulated depreciation (37,688) (34,185) Total fixed assets, net $ 10,524 $ 9,915 Other assets Loans held for sale $ 50 $ 491 Prepaid expenses 24,167 25,355 Deferred tax assets 1,793 3,923 Current tax assets 8,245 13,330 Other 19,401 19,330 Total other assets $ 64,180 $ 72,344 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The following table presents information regarding the Company's Secured Financing facilities: December 31, 2022 December 31, 2021 Variable Interest Entity Facility Amount Maturity Date Interest Rate Balance Balance (in thousands) Oportun CCW Trust (1) $ 150,000 December 1, 2023 Variable (1) $ 76,574 $ 40,108 Oportun PLW Trust 600,000 September 1, 2024 LIBOR (minimum of 0.00% ) + 2.17% 240,994 353,781 Total secured financing $ 750,000 $ 317,568 $ 393,889 (1) The interest rate on the Secured Financing - CCW facility is LIBOR (minimum of 1.00%) plus 6.00% on the first $18.8 million of principal outstanding and LIBOR (minimum of 0.00%) plus 3.41% on the remaining outstanding principal balance. The following table presents information regarding asset-backed notes: December 31, 2022 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (4) (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2022-3) $ 300,000 $ 310,993 $ 285,218 $ 301,967 8.43 % N/A Oportun Issuance Trust (Series 2022-2) 400,000 410,212 313,689 344,218 7.03 % N/A Oportun Issuance Trust (Series 2022-A) 400,000 410,211 380,313 414,293 5.44 % 2 years Oportun Issuance Trust (Series 2021-C) 500,000 512,762 435,951 518,929 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 432,123 519,182 2.05 % 3 years Oportun Funding XIV, LLC (Series 2021-A) 375,000 383,632 348,046 389,740 1.79 % 2 years Oportun Funding XIII, LLC (Series 2019-A) 279,412 294,118 192,334 218,571 3.46 % 3 years Total asset-backed notes recorded at fair value $ 2,754,412 $ 2,834,687 $ 2,387,674 $ 2,706,900 December 31, 2021 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (4) (in thousands) Asset-backed notes recorded at fair value: Oportun Issuance Trust (Series 2021-C) $ 500,000 $ 512,762 $ 497,774 $ 525,436 2.48 % 3 years Oportun Issuance Trust (Series 2021-B) 500,000 512,759 498,487 521,174 2.05 % 3 years Oportun Funding XIV, LLC (Series 2021-A) 375,000 383,632 374,363 391,325 1.79 % 2 years Oportun Funding XIII, LLC (Series 2019-A) 279,412 294,118 281,082 299,310 3.46 % 3 years Total asset-backed notes recorded at fair value: $ 1,654,412 $ 1,703,271 $ 1,651,706 $ 1,737,245 (1) Initial note amount issued includes notes retained by the Company as applicable. 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) Weighted average interest rate excludes notes retained by the Company. There were no notes retained by the Company as of December 31, 2022. The weighted average interest rate for Series 2022-2 and Series 2022-3 will change over time as the notes pay sequentially (in class priority order). (4) The revolving period for Series 2019-A ended on August 1, 2022 and the asset-backed notes have been amortizing since then. Series 2022-2 and Series 2022-3 are both amortizing deals with no revolving period. The following table presents information regarding the Company's Acquisition and Corporate Financings: December 31, 2022 December 31, 2021 Entity Original Balance (1) Maturity Date (2) Interest Rate (3) Balance Balance (in thousands) Oportun Financial Corporation $ 150,000 September 14, 2026 SOFR (minimum of 0.00% + 9.00% $ 141,957 $ — Oportun RF, LLC 116,000 May 1, 2024 SOFR (minimum of 0.00%) + 8.00% 80,922 114,092 Total acquisition and corporate financing $ 266,000 $ 222,879 $ 114,092 (1) The Acquisition Financing Facility (Oportun RF, LLC) was amended on May 24, 2022 and upsized for an additional $20.9 million and was amended again on July 28, 2022 and upsized for an additional $9.1 million. (2) Pursuant to an amendment on November 2, 2022, the maturity date of the Acquisition Financing Facility (Oportun RF, LLC) was changed from October 2024 to June 2024. The Acquisition Financing Facility was further amended on December 2, 2022 to change the maturity date to May 2024. (3) The interest rate on the Acquisition Financing Facility (Oportun RF, LLC) was LIBOR (minimum of 0.00%) plus 8.00% as of December 31, 2021. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: December 31, (in thousands) 2022 2021 Accounts payable $ 9,670 $ 8,343 Accrued compensation 12,502 36,417 Accrued expenses 26,193 36,464 Accrued interest 8,445 3,276 Amount due to whole loan buyer 3,073 14,062 Deferred tax liabilities 30,575 28,424 Current tax liabilities and other 9,570 8,372 Total other liabilities $ 100,028 $ 135,358 |
Equity Compensation and Other_2
Equity Compensation and Other Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Fair Value of Stock Option Grants | The fair value of stock option grants was estimated with the following assumptions: Year Ended December 31, 2022 2021 Expected volatility (employee) 63.4% 62.5% Risk-free interest rate (employee) 2.3% 0.9% Expected term (employee, in years) 6.1 6.1 Expected dividend —% —% |
Schedule of Stock Option Activity | A summary of the Company's stock option activity under the 2005 Plan, 2015 Plan, and 2019 Plan at December 31, 2022 is as follows: (in thousands, except share and per share data) Options Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Balance – January 1, 2022 4,187,855 14.63 4.59 $ 27,011 Options granted 541,713 13.02 Options exercised (1,005,738) 1.58 Options canceled (331,273) 20.25 Options forfeited (94,019) 17.24 Balance – December 31, 2022 3,298,538 17.71 5.43 $ 202 Options vested and expected to vest - December 31, 2022 3,298,538 17.71 5.43 $ 202 Options vested and exercisable - December 31, 2022 2,482,741 18.39 4.55 $ 202 |
Schedule of Information on Stock Options Granted | stock options granted, exercised and vested is as follows: Year Ended December 31, (in thousands, except per share data) 2022 2021 Weighted average fair value per share of options granted $ 7.76 $ 12.11 Cash received from options exercised, net (1) (4,636) 3,272 Aggregate intrinsic value of options exercised 11,884 2,380 Fair value of shares vested 3,863 4,974 (1) The amount reflected for the year ended December 31, 2022 is the net of cash received from options exercised of $1.6 million and the cash paid for employee tax withholding settled in shares of $6.2 million. |
Summary of RSU Activity | A summary of the Company’s RSU activity under the 2015 Plan, 2019 Plan and 2021 Inducement Plan for the year ended December 31, 2022 is as follows: RSU Outstanding Weighted Average Grant-Date Fair Value Balance – January 1, 2022 3,354,333 19.48 Granted 3,091,511 11.48 Vested (1) (1,224,579) 19.52 Forfeited (726,318) 16.95 Balance – December 31, 2022 4,494,947 14.37 Expected to vest after December 31, 2022 4,420,579 14.45 (1) The Company allows its Board to defer all or a portion of monetary remuneration paid to the Director. As of December 31, 2022, there were 74,368 restricted stock units vested for which the holders elected to defer delivery of the Company's shares. |
Schedule of Stock-Based Compensation | Stock-based Compensation - Total stock-based compensation expense included in the Consolidated Statements of Operations, net of amounts capitalized to system development costs is as follows: Year Ended December 31, (in thousands of dollars) 2022 2021 Technology and facilities $ 6,993 $ 2,844 Sales and marketing 143 125 Personnel 20,484 15,888 Total stock-based compensation (1) $ 27,620 $ 18,857 (1) Amounts shown are net of $2.5 million and $1.0 million of capitalized stock-based compensation for the year ended December 31, 2022 and 2021, respectively. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Interest Income | Interest Income - Total interest income included in the Consolidated Statements of Operations is as follows: Year Ended December 31, (in thousands) 2022 2021 Interest income Interest on loans $ 854,245 $ 566,155 Fees on loans 21,869 9,684 Total interest income $ 876,114 $ 575,839 |
Schedule of Non-interest Income | Non-interest Income - Total non-interest income included in the Consolidated Statements of Operations is as follows: Year Ended December 31, (in thousands) 2022 2021 Non-interest income Gain on loan sales $ 5,703 $ 26,750 Servicing fees 19,928 13,253 Subscription revenue 31,186 813 Other income 19,614 10,127 Total non-interest income $ 76,431 $ 50,943 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Company's Income Before Taxes | The following are the domestic and foreign components of the Company’s income before taxes: Year Ended December 31, (in thousands) 2022 2021 Domestic $ (83,793) $ 61,087 Foreign 8,507 1,704 Income (loss) before taxes $ (75,286) $ 62,791 |
Summary of Provision for Income Taxes | The provision for income taxes consisted of the following: Year Ended December 31, (in thousands) 2022 2021 Current Federal $ (1,217) $ (1,394) State $ 1,505 $ (516) Foreign $ 2,227 $ 836 Total current $ 2,515 $ (1,074) Deferred Federal (712) 11,005 State 806 5,372 Foreign (151) 74 Total deferred $ (57) $ 16,451 Total provision for income taxes $ 2,458 $ 15,377 |
Schedule of Reconciliation of Income Tax Expense | A reconciliation of income tax expense with the amount computed by applying the statutory U.S. federal income tax rates to income before provision for income taxes is as follows: Year Ended December 31, (in thousands) 2022 2021 Income tax (benefit) expense computed at U.S. federal statutory rate $ (15,810) $ 13,186 State tax 1,403 4,646 Foreign rate differential 289 552 Federal tax credits (2,621) (1,962) Share based compensation expense 506 (353) Change in unrecognized tax benefit reserves 1,326 853 Net operating loss carryback tax rate differential — (172) Return to provision adjustment (5,798) (2,812) Non-deductible acquisition costs — 1,458 Goodwill impairment 22,779 — Fines and penalties 578 6 Other (194) (25) Income tax expense $ 2,458 $ 15,377 Effective tax rate (3.3) % 24.5 % |
Schedule of Components of Deferred Tax Assets and Liabilities | The primary components of the Company’s net deferred tax assets and liabilities are composed of the following: December 31, (in thousands) 2022 2021 Deferred tax assets: Accrued expenses and reserves $ 3,361 $ 3,356 Leases 10,174 12,859 Share-based compensation 8,335 7,410 CARES Act payroll taxes — 536 Net operating loss & credit carryforward 41,169 23,916 Other 245 — Total deferred tax assets $ 63,284 $ 48,077 Valuation allowance $ — $ — Deferred tax liabilities: System development costs $ (11,803) $ (22,323) Right of use assets (8,163) (10,353) Depreciation and amortization (6,813) (7,112) Fair value adjustment - Loans Receivable (12,077) (30,718) Fair value adjustment - Bonds Payable (53,210) (1,838) Other — (234) Total deferred tax liabilities (92,066) (72,578) Net deferred taxes $ (28,782) $ (24,501) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: Year Ended December 31, (in thousands) 2022 2021 Balance as of January 1, $ 5,170 $ 3,927 Increases related to current year tax positions 894 680 Increases related to prior year tax positions 544 638 Decreases related to prior year tax positions — (75) Balance as of December 31, $ 6,608 $ 5,170 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Loans Receivable and Asset-Backed Notes | The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances as of the dates shown: December 31, 2022 December 31, 2021 (in thousands) Unpaid Principal Balance Fair Value Unpaid Principal Balance Fair Value Assets Loans receivable - personal loans $ 2,967,266 $ 3,027,401 $ 2,205,537 $ 2,321,150 Loans receivable - credit cards 131,343 116,252 67,327 65,657 Total loans receivable $ 3,098,609 $ 3,143,653 $ 2,272,864 $ 2,386,807 Liabilities Asset-backed notes $ 2,582,025 $ 2,387,674 $ 1,654,412 $ 1,651,706 |
Schedule of Quantitative Information About Significant Unobservable Inputs | 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 loan receivables balance at fair value as of 12/31/2022, consists of $2,903.2 million of unsecured personal loan receivables and $124.2 million of secured personal loan receivables. December 31, 2022 December 31, 2021 (3) Personal Loan Receivables Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average (2) Remaining cumulative charge-offs (1) 5.06% 51.45% 9.86% 6.75% 51.86% 9.53% Remaining cumulative prepayments (1) —% 33.59% 28.73% —% 44.25% 32.47% Average life (years) 0.05 1.52 1.01 0.22 1.51 0.87 Discount rate 11.34% 11.34% 11.34% 6.90% 6.90% 6.90% (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 borrower, original loan maturity terms) . (3) The weighted average amounts disclosed for remaining cumulative charge-offs, average life and discount rate and the minimum and maximum discount rate as of December 31, 2021 differ from what was previously disclosed for comparability to amounts disclosed as of December 31, 2022. The amounts disclosed previously as of December 31, 2021 included aggregated inputs for both personal loan receivables and credit card receivables. This disclosure has been disaggregated as of December 31, 2022. December 31, 2022 December 31, 2021 Credit Card Receivables Range Range Remaining cumulative charge-offs (1) 22.80% 11.81% Principal payment rate (1) 9.28% 18.07% Average life (years) 0.69 0.34 Discount rate 14.84% 8.35% (1) Figure disclosed as a percentage of outstanding principal balance. |
Schedule of Reconciliation of Loans Receivable at Fair Value Using Significant Unobservable Inputs | The table below presents a reconciliation of Loans Receivable at Fair Value on a recurring basis using significant unobservable inputs: December 31, (in thousands) 2022 2021 Balance – beginning of period $ 2,386,807 $ 1,696,526 Principal disbursements 3,111,276 2,052,280 Principal payments from borrowers (1,974,832) (1,276,058) Gross charge-offs (310,701) (142,985) Net (decrease) increase in fair value (68,897) 57,044 Balance ‑ end of period $ 3,143,653 $ 2,386,807 |
Schedule of Carry Value and Estimated Fair Values of Financial Assets and Liabilities | 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: December 31, 2022 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 98,817 $ 98,817 $ 98,817 $ — $ — Restricted cash 105,000 105,000 105,000 — — Liabilities Accounts payable 9,670 9,670 9,670 — — Secured financing (Note 9) 320,000 306,574 — 306,574 — Acquisition and corporate financing (Note 9) 235,679 233,166 — 233,166 — December 31, 2021 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 130,959 $ 130,959 $ 130,959 $ — $ — Restricted cash 62,001 62,001 62,001 — — Loans held for sale (Note 5) 491 547 — — 547 Liabilities Accounts payable 8,343 8,343 8,343 — — Secured financing (Note 9) 398,000 396,081 — 396,081 — Acquisition and corporate financing (Note 9) 116,000 116,000 — 116,000 — |
Leases, Commitments, and Cont_2
Leases, Commitments, and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | As of December 31, 2022, 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 2023 $ 13,879 2024 11,940 2025 9,969 2026 3,918 2027 1,032 Thereafter 25 Total lease payments 40,763 Imputed interest (2,816) Total leases $ 37,947 Total sublease income $ — Net lease liabilities $ 37,947 Weighted average remaining lease term 3.2 years Weighted average discount rate 4.06 % As of December 31, 2021, 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 2022 $ 14,927 2023 13,214 2024 11,142 2025 9,238 2026 3,387 Thereafter 706 Total lease payments 52,614 Imputed interest (4,030) Total leases $ 48,584 Sublease income 2022 $ (896) 2023 and thereafter — Total lease payments (896) Imputed interest 11 Total sublease income $ (885) Net lease liabilities $ 47,699 Weighted average remaining lease term 3.9 years Weighted average discount rate 4.01 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Threshold period past due | 120 days | |
Goodwill impairment | $ 108,472,000 | $ 0 |
Impairment | $ 0 | $ 0 |
Financing Receivable, Threshold Period Past Due, Writeoff | 120 days | |
Loan delinquent provision percentage | 100% | |
Treasury stock retired (in shares) | 0 | 0 |
Treasury stock re-issued (in shares) | 0 | 0 |
Credit Card | ||
Concentration Risk [Line Items] | ||
Threshold period past due | 180 days | |
Credit Card | ||
Concentration Risk [Line Items] | ||
Threshold period past due | 180 days | |
Personal Loans Receivable | ||
Concentration Risk [Line Items] | ||
Threshold period past due | 90 days | |
Computer and Office Equipment | ||
Concentration Risk [Line Items] | ||
Useful life | 3 years | |
Purchased Software, Vehicles and Leasehold Improvements | Minimum | ||
Concentration Risk [Line Items] | ||
Useful life | 3 years | |
Purchased Software, Vehicles and Leasehold Improvements | Maximum | ||
Concentration Risk [Line Items] | ||
Useful life | 5 years | |
Systems Development Costs | ||
Concentration Risk [Line Items] | ||
Useful life | 3 years | |
Acquired developed technology | ||
Concentration Risk [Line Items] | ||
Useful life | 7 years | |
Loans Receivable | Geographic Concentration Risk | California | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 45% | 49% |
Loans Receivable | Geographic Concentration Risk | Texas | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 26% | 27% |
Loans Receivable | Geographic Concentration Risk | Florida | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9% | 7% |
Loans Receivable | Geographic Concentration Risk | Illinois | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 5% | 6% |
Loans Receivable | Geographic Concentration Risk | New Jersey | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 4% | |
Loans Receivable | Geographic Concentration Risk | All Other States | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 3% | 3% |
Earnings (Loss) per Share - Cal
Earnings (Loss) per Share - Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ (77,744) | $ 47,414 |
Net income (loss) attributable to common stockholders | (77,744) | 47,414 |
Net income (loss) attributable to common stockholders | $ (77,744) | $ 47,414 |
Basic weighted-average common shares outstanding (in shares) | 32,825,772 | 28,191,610 |
Weighted average effect of dilutive securities: | ||
Diluted weighted-average common shares outstanding (in shares) | 32,825,772 | 30,323,194 |
Earnings (loss) per share: | ||
Basic (in USD per share) | $ (2.37) | $ 1.68 |
Diluted (in USD per share) | $ (2.37) | $ 1.56 |
Stock options | ||
Weighted average effect of dilutive securities: | ||
Weighted average effect of dilutive securities (in shares) | 0 | 1,375,915 |
Restricted stock units | ||
Weighted average effect of dilutive securities: | ||
Weighted average effect of dilutive securities (in shares) | 0 | 755,669 |
Earnings (Loss) per Share - Ant
Earnings (Loss) per Share - Antidilutive Securities Excluded From Calculation of Diluted Weighted-Average Common Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents (in shares) | 7,874,995 | 2,057,095 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents (in shares) | 3,527,096 | 2,038,022 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents (in shares) | 4,347,899 | 19,073 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 105,000 | $ 62,001 |
Loans receivable at fair value | 3,143,653 | 2,386,807 |
Interest and fees receivable, net | 31,796 | 20,916 |
Total assets | 3,613,695 | 2,946,625 |
Secured financing | 317,568 | 393,889 |
Asset-backed notes at fair value | 2,387,674 | 1,651,706 |
Acquisition and corporate financing | 222,879 | 114,092 |
Total liabilities | 3,066,096 | 2,342,744 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 91,395 | 41,803 |
Loans receivable at fair value | 3,081,557 | 2,267,205 |
Interest and fees receivable, net | 30,443 | 19,869 |
Total assets | 3,203,395 | 2,328,877 |
Secured financing | 320,000 | 398,000 |
Asset-backed notes at fair value | 2,387,674 | 1,651,706 |
Acquisition and corporate financing | 85,679 | 116,000 |
Total liabilities | $ 2,793,353 | $ 2,165,706 |
Loans Held for Sale and Loans_2
Loans Held for Sale and Loans Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 04, 2022 | Nov. 30, 2014 | |
Marketable Securities [Line Items] | |||||
Minimum loans to be sold under whole loan sale agreement (percentage) | 10% | 10% | |||
Additional loans to be sold under whole loan sale agreement (percentage ) | 5% | 5% | |||
Servicing fees | $ 52,742 | $ 214,598 | |||
Originations of loans sold and held for sale | 5,703 | 26,750 | |||
Servicing fees | 19,928 | 13,253 | |||
Asset-Backed Securities, Securitized Loans and Receivables | |||||
Marketable Securities [Line Items] | |||||
Amount issued | $ 400,000 | ||||
Aggregate unpaid principal balance | 227,600 | ||||
Cumulative fair value mark increase (decrease) | 15,900 | ||||
Unpaid interest and fees, net | 1,500 | ||||
Proceeds from securitizations of loans held-for-investment | $ 245,000 | ||||
Other Loan Sales | |||||
Marketable Securities [Line Items] | |||||
Cumulative fair value mark increase (decrease) | (61,900) | ||||
Proceeds from securitizations of loans held-for-investment | 4,300 | ||||
Unpaid principal balance including interest and fees | 66,200 | ||||
Whole loan sale program | |||||
Marketable Securities [Line Items] | |||||
Servicing fees | 52,700 | 214,600 | |||
Originations of loans sold and held for sale | 5,700 | 26,800 | |||
Servicing fees | $ 17,400 | $ 13,300 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 104,014 | |
Goodwill impairment | 108,472 | 0 | |
Hello Digit, Inc. | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 205,300 | 205,332 | |
Equity consideration | $ 73,200 | 73,181 | |
Cash consideration | 132,151 | ||
Percentage of voting interests acquired | 100% | ||
Goodwill | $ 104,014 | 104,000 | |
Goodwill impairment | 108,500 | ||
Acquired finite-lived intangible assets, estimated useful life | 7 years | ||
Nonrecurring acquisition-related costs | 29,700 | ||
Acquisition and integration related costs | $ 29,700 | $ 10,600 | |
Hello Digit, Inc. | Restricted Stock | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 132,100 |
Acquisition - Total Considerati
Acquisition - Total Consideration (Details) - Hello Digit, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 22, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Equity consideration | $ 73,200 | $ 73,181 |
Cash consideration | 132,151 | |
Total consideration | $ 205,300 | $ 205,332 |
Number of shares issued (in shares) | 3,522,182 | |
Share price (in USD per share) | $ 20.72 | |
Replacement restricted stock units | $ 200 | |
Cash paid held in escrow | $ 1,300 |
Acquisition - Schedule of Asset
Acquisition - Schedule of Assets Acquired and Liabilities Assumed, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 22, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 104,014 | |
Hello Digit, Inc. | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 104,000 | $ 104,014 | |
Acquired intangible assets | 35,300 | ||
Developed technology | 48,500 | ||
Cash and cash equivalents | 20,499 | ||
Other assets acquired and liabilities assumed, net | (2,981) | ||
Total purchase consideration | $ 205,332 |
Acquisition - Schedule of Intan
Acquisition - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Developed technology | |||
Business Acquisition [Line Items] | |||
Developed technology | $ 48,500 | $ 48,500 | |
Member relationships | |||
Business Acquisition [Line Items] | |||
Member relationships | 34,500 | $ 34,500 | |
Hello Digit, Inc. | |||
Business Acquisition [Line Items] | |||
Developed technology | $ 48,500 | ||
Total acquired intangibles and developed technology | $ 83,800 | ||
Acquired finite-lived intangible assets, estimated useful life | 7 years | ||
Hello Digit, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Developed technology | $ 48,500 | $ 48,500 | |
Developed technology, estimated useful life | 7 years | ||
Hello Digit, Inc. | Member relationships | |||
Business Acquisition [Line Items] | |||
Member relationships | $ 34,500 | ||
Acquired finite-lived intangible assets, estimated useful life | 7 years | ||
Hello Digit, Inc. | Trade name | |||
Business Acquisition [Line Items] | |||
Trade name | $ 800 | ||
Acquired finite-lived intangible assets, estimated useful life | 3 years |
Acquisition - Schedule of Pro F
Acquisition - Schedule of Pro Forma Information (Details) - Hello Digit, Inc. $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Total revenues | $ 666,158 |
Net income (loss) attributable to shareholders | $ 33,971 |
Capitalized Software, Other I_3
Capitalized Software, Other Intangibles and Goodwill - Schedule of Capitalization (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (79,679) | $ (45,433) |
Total capitalized software, net | 104,124 | 87,617 |
System development costs | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Capitalized software, net | 135,303 | 84,550 |
Acquired developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Capitalized software, net | $ 48,500 | $ 48,500 |
Capitalized Software, Other I_4
Capitalized Software, Other Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 22, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
System development costs capitalized | $ 51,500 | $ 77,100 | |
Amortization of intangible assets | (7,900) | (300) | |
Goodwill | 0 | 104,014 | |
Measurement adjustments during period | 4,458 | ||
Goodwill impairment | 108,472 | 0 | |
Hello Digit, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Capitalized computer software, gross | $ 48,500 | ||
Goodwill | 104,000 | 104,014 | |
Goodwill impairment | 108,500 | ||
System development costs | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of system development costs | 34,200 | 16,900 | |
Capitalized computer software, gross | 135,303 | 84,550 | |
Acquired developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Capitalized computer software, gross | 48,500 | $ 48,500 | |
Acquired developed technology | Hello Digit, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Capitalized computer software, gross | $ 48,500 | $ 48,500 |
Capitalized Software, Other I_5
Capitalized Software, Other Intangibles and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (8,249) | $ (300) |
Total intangible assets, net | 35,677 | 43,564 |
Member relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 34,500 | 34,500 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6,426 | 6,364 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,000 | $ 3,000 |
Capitalized Software, Other I_6
Capitalized Software, Other Intangibles and Goodwill - Schedule of Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 7,948 |
2024 | 7,798 |
2025 | 4,929 |
2026 | 4,929 |
2027 | 4,929 |
Thereafter | 4,780 |
Total | $ 35,313 |
Capitalized Software, Other I_7
Capitalized Software, Other Intangibles and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 104,014 | |
Measurement adjustments during period | 4,458 | |
Impairment | (108,472) | $ 0 |
Ending balance | $ 0 | $ 104,014 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fixed assets | ||
Total fixed assets | $ 48,212 | $ 44,100 |
Less: Accumulated depreciation | (37,688) | (34,185) |
Total fixed assets, net | 10,524 | 9,915 |
Other assets | ||
Loans held for sale | 50 | 491 |
Prepaid expenses | 24,167 | 25,355 |
Deferred tax assets | 1,793 | 3,923 |
Current tax assets | 8,245 | 13,330 |
Other | 19,401 | 19,330 |
Total other assets | $ 64,180 | $ 72,344 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Depreciation | $ 5.2 | $ 9.4 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 12 Months Ended | ||||||||||||
Mar. 27, 2023 | Mar. 10, 2023 | Feb. 10, 2023 | Sep. 14, 2022 | May 24, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 23, 2023 | Apr. 21, 2023 | Mar. 08, 2023 | Nov. 03, 2022 | Jul. 28, 2022 | Jul. 22, 2022 | |
Debt Instrument [Line Items] | |||||||||||||
Facility amount | $ 750,000,000 | ||||||||||||
Current balance | 317,568,000 | $ 393,889,000 | |||||||||||
Current balance | 2,387,674,000 | 1,651,706,000 | |||||||||||
Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Current balance | 320,000,000 | 398,000,000 | |||||||||||
Initial note amount issued | 266,000,000 | ||||||||||||
Current balance | 2,387,674,000 | 1,651,706,000 | |||||||||||
Balance | 222,879,000 | 114,092,000 | |||||||||||
Oportun Financial Corporation | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 150,000,000 | ||||||||||||
Balance | $ 141,957,000 | 0 | |||||||||||
Oportun Financial Corporation | SOFR | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 9% | ||||||||||||
Oportun Financial Corporation | SOFR | Minimum | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis for effective rate (as a percent) | 0% | ||||||||||||
Oportun RF, LLC | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility amount | $ 9,100,000 | ||||||||||||
Initial note amount issued | $ 20,900,000 | $ 116,000,000 | |||||||||||
Balance | $ 80,922,000 | $ 114,092,000 | |||||||||||
Oportun RF, LLC | SOFR | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 8% | ||||||||||||
Oportun RF, LLC | SOFR | Minimum | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis for effective rate (as a percent) | 0% | ||||||||||||
Oportun RF, LLC | LIBOR | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 8% | ||||||||||||
Oportun RF, LLC | LIBOR | Minimum | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis for effective rate (as a percent) | 0% | ||||||||||||
Oportun Issuance Trust (Series 2022-A) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Original revolving period | 2 years | ||||||||||||
Asset-Backed Notes 2022-2 Securitization | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 400,000,000 | ||||||||||||
Weighted average interest rate | 7.77% | ||||||||||||
Weighted average yield (as a percent) | 8% | ||||||||||||
Credit Facility | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility amount | $ 150,000,000 | ||||||||||||
Credit Facility | Subsequent Event | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility amount | $ 120,000,000 | ||||||||||||
Credit Facility | Secured Warehouse Facility CCW | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility amount | 150,000,000 | ||||||||||||
Current balance | $ 76,574,000 | $ 40,108,000 | |||||||||||
Credit Facility | Secured Warehouse Facility CCW | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 6% | ||||||||||||
Credit Facility | Secured Warehouse Facility CCW | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis for effective rate (as a percent) | 1% | ||||||||||||
Credit Facility | Secured Warehouse Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility amount | $ 600,000,000 | ||||||||||||
Current balance | $ 240,994,000 | 353,781,000 | |||||||||||
Credit Facility | Secured Warehouse Facility | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 2.17% | ||||||||||||
Credit Facility | Secured Warehouse Facility | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis for effective rate (as a percent) | 0% | ||||||||||||
Asset-backed Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 2,754,412,000 | 1,654,412,000 | |||||||||||
Current balance | 2,387,674,000 | 1,651,706,000 | |||||||||||
Asset-backed Note | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 2,834,687,000 | 1,703,271,000 | |||||||||||
Asset-backed Note | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 2,706,900,000 | 1,737,245,000 | |||||||||||
Asset-backed Note | Secured Warehouse Facility CCW | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 3.41% | ||||||||||||
Asset-backed Note | Secured Warehouse Facility CCW | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate, outstanding principal (as a percent ) | 0% | ||||||||||||
Asset-backed Note | Credit Card Warehouse Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal threshold to trigger different interest rate | $ 18,800,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-3) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 300,000,000 | ||||||||||||
Current balance | $ 285,218,000 | ||||||||||||
Weighted average interest rate | 8.43% | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-3) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 310,993,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-3) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 301,967,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-2) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 400,000,000 | ||||||||||||
Current balance | $ 313,689,000 | ||||||||||||
Weighted average interest rate | 7.03% | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-2) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 410,212,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-2) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 344,218,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-A) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 400,000,000 | 400,000,000 | |||||||||||
Current balance | $ 380,313,000 | ||||||||||||
Weighted average interest rate | 5.68% | 5.44% | |||||||||||
Original revolving period | 2 years | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-A) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 410,211,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2022-A) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 414,293,000 | ||||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-C) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 500,000,000 | 500,000,000 | |||||||||||
Current balance | $ 435,951,000 | $ 497,774,000 | |||||||||||
Weighted average interest rate | 2.48% | 2.48% | |||||||||||
Original revolving period | 3 years | 3 years | |||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-C) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 512,762,000 | $ 512,762,000 | |||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-C) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 518,929,000 | 525,436,000 | |||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-B) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 500,000,000 | 500,000,000 | |||||||||||
Current balance | $ 432,123,000 | $ 498,487,000 | |||||||||||
Weighted average interest rate | 2.05% | 2.05% | |||||||||||
Original revolving period | 3 years | 3 years | |||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-B) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 512,759,000 | $ 512,759,000 | |||||||||||
Asset-backed Note | Oportun Issuance Trust (Series 2021-B) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 519,182,000 | 521,174,000 | |||||||||||
Asset-backed Note | Oportun Funding XIV, LLC (Series 2021-A) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 375,000,000 | 375,000,000 | |||||||||||
Current balance | $ 348,046,000 | $ 374,363,000 | |||||||||||
Weighted average interest rate | 1.79% | 1.79% | |||||||||||
Original revolving period | 2 years | 2 years | |||||||||||
Asset-backed Note | Oportun Funding XIV, LLC (Series 2021-A) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 383,632,000 | $ 383,632,000 | |||||||||||
Asset-backed Note | Oportun Funding XIV, LLC (Series 2021-A) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 389,740,000 | 391,325,000 | |||||||||||
Asset-backed Note | Oportun Funding XIII, LLC (Series 2019-A) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | 279,412,000 | 279,412,000 | |||||||||||
Current balance | $ 192,334,000 | $ 281,082,000 | |||||||||||
Weighted average interest rate | 3.46% | 3.46% | |||||||||||
Original revolving period | 3 years | 3 years | |||||||||||
Asset-backed Note | Oportun Funding XIII, LLC (Series 2019-A) | Initial Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | $ 294,118,000 | $ 294,118,000 | |||||||||||
Asset-backed Note | Oportun Funding XIII, LLC (Series 2019-A) | Current Collateral | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Collateral balance | 218,571,000 | $ 299,310,000 | |||||||||||
Asset-backed Note | Asset-Backed Notes Class D | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 20,900,000 | $ 119,500,000 | $ 9,100,000 | ||||||||||
Asset-backed Note | Asset-Backed Notes Class D | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal payments | $ 42,000,000 | ||||||||||||
Asset-backed Note | Asset-Backed Notes Class D | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 8% | ||||||||||||
Asset-backed Note | Asset-Backed Notes Class D | SOFR | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 11% | ||||||||||||
Asset-backed Note | Asset-Backed Notes 2022-3 Securitization | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 300,000,000 | ||||||||||||
Weighted average interest rate | 9.51% | ||||||||||||
Weighted average yield (as a percent) | 10.94% | ||||||||||||
Term Loan | Senior Secured Term Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 150,000,000 | ||||||||||||
Term Loan | Senior Secured Term Loans | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 75,000,000 | ||||||||||||
Amount payable in cash or kind (as a percent) | 3% | ||||||||||||
Term Loan | Senior Secured Term Loans | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 9% | ||||||||||||
Term Loan | Senior Secured Term Loans | SOFR | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, basis spread (as a percent) | 9% | ||||||||||||
Term Loan | Incremental Tranche A-1 Loans | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from borrowings | $ 20,800,000 | ||||||||||||
Term Loan | Incremental Tranche A-2 Loans | Subsequent Event | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from borrowings | $ 4,200,000 | ||||||||||||
Term Loan | Uncommitted Borrowings | Subsequent Event | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial note amount issued | $ 50,000,000 | $ 25,000,000 | $ 25,000,000 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accounts payable | $ 9,670 | $ 8,343 |
Accrued compensation | 12,502 | 36,417 |
Accrued expenses | 26,193 | 36,464 |
Accrued interest | 8,445 | 3,276 |
Amount due to whole loan buyer | 3,073 | 14,062 |
Deferred tax liabilities | 30,575 | 28,424 |
Current tax liabilities and other | 9,570 | 8,372 |
Total other liabilities | $ 100,028 | $ 135,358 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares, issued (in shares) | 33,626,630 | 32,276,419 |
Common stock, shares, outstanding (in shares) | 33,354,607 | 32,004,396 |
Treasury stock, common, shares (in shares) | 272,023 | 272,023 |
Equity Compensation and Other_3
Equity Compensation and Other Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Shares under ESPP (in shares) | 1,593,052 | ||
Number of additional shares authorized under ESPP (in shares) | 320,043 | ||
Maximum percentage of employee earnings for contribution to ESPP | 15% | ||
Purchase price of stock under ESPP (as a percent) | 85% | ||
Income tax benefit related to stock based compensation expense | $ 8.1 | $ 5.4 | |
Tax expense (benefit) on share-based compensation exercises | $ 3.3 | (0.2) | |
401K match percentage | 4% | ||
Amount contributed to 401k | $ 6.4 | 3.7 | |
Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Number of shares issued (in shares) | 3,522,182 | ||
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expiration period | 10 years | ||
Vesting period | 4 years | ||
Unrecognized compensation cost | $ 6.2 | $ 6.9 | |
Unrecognized compensation cost, period for recognition | 2 years 7 months 6 days | 2 years 2 months 12 days | |
Stock options | Share-based Payment Arrangement, Tranche One | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 25% | ||
Restricted stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 4 years | ||
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days | 2 years 7 months 6 days | |
Quarterly vesting percentage | 6.25% | ||
Granted (in shares) | 3,091,511 | ||
Unrecognized compensation cost | $ 51.6 | $ 54.1 | |
Restricted stock units | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Number of shares issued (in shares) | 501,906 | ||
Granted (in shares) | 650,460 | ||
Restricted stock units | Share-based Payment Arrangement, Tranche One | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 25% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche One | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 1 year | ||
Annual vesting percentage | 50% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Three | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 25% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Three | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 50% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Two | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 25% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Two | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 2 years | ||
Annual vesting percentage | 25% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Four | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Annual vesting percentage | 25% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Four | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 3 years | ||
Annual vesting percentage | 16.667% | ||
Restricted stock units | Share-based Payment Arrangement, Tranche Five | Hello Digit, Inc. | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Vesting period | 4 years | ||
Annual vesting percentage | 12.50% | ||
Minimum | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Additional shares under ESPP as a percentage | 0.01 | ||
Number of additional shares authorized under ESPP (in shares) | 726,186 | ||
2019 Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Number of shares authorized (in shares) | 9,072,159 | ||
Number of shares available for future awards (in shares) | 1,802,994 | ||
Percentage of additional shares authorized | 0.05 | ||
Increase in shares available for issuance (in shares) | 1,600,219 | ||
2021 Inducement Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Number of shares authorized (in shares) | 563,955 | ||
Number of shares available for future awards (in shares) | 39,635 |
Equity Compensation and Other_4
Equity Compensation and Other Benefits - Fair Value Assumptions (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility (employee) | 63.40% | 62.50% |
Risk-free interest rate (employee) | 2.30% | 0.90% |
Expected term (employee, in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected dividend | 0% | 0% |
Equity Compensation and Other_5
Equity Compensation and Other Benefits - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options Outstanding | ||
Beginning balance (in shares) | 4,187,855 | |
Options granted (in shares) | 541,713 | |
Options exercised (in shares) | (1,005,738) | |
Options canceled (in shares) | (331,273) | |
Options forfeited (in shares) | (94,019) | |
Ending balance (in shares) | 3,298,538 | 4,187,855 |
Options Weighted-Average Exercise Price | ||
Beginning balance (in USD per share) | $ 14.63 | |
Options granted (in USD per share) | 13.02 | |
Options exercised (in USD per share) | 1.58 | |
Options canceled (in USD per share) | 20.25 | |
Options forfeited (in USD per share) | 17.24 | |
Ending balance (in USD per share) | $ 17.71 | $ 14.63 |
Additional Disclosures | ||
Outstanding, weighted average remaining life | 5 years 5 months 4 days | 4 years 7 months 2 days |
Outstanding, aggregate intrinsic value | $ 202 | $ 27,011 |
Options vested and expected to vest (in shares) | 3,298,538 | |
Options vested and expected to vest, weighted-average exercise price (in USD per share) | $ 17.71 | |
Options vested and and expected to vest, weighted average remaining life | 5 years 5 months 4 days | |
Options vested and expected to vest, aggregate intrinsic value | $ 202 | |
Options vested and exercisable (in shares) | 2,482,741 | |
Options vested and exercisable, weighted-average exercise price (in USD per share) | $ 18.39 | |
Options vested and exercisable, weighted average remaining life | 4 years 6 months 18 days | |
Options vested and exercisable, aggregate intrinsic value | $ 202 |
Equity Compensation and Other_6
Equity Compensation and Other Benefits - Information on Stock Options Granted, Exercised and Vested (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted average fair value per share of options granted (in USD per share) | $ 7.76 | $ 12.11 |
Cash received from options exercised, net | $ (4,636) | $ 3,272 |
Aggregate intrinsic value of options exercised | 11,884 | 2,380 |
Fair value of shares vested | 3,863 | $ 4,974 |
Cash received from options exercised | 1,600 | |
Cash paid for employee tax withholding settled in shares | $ 6,200 |
Equity Compensation and Other_7
Equity Compensation and Other Benefits - RSU Activity (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
RSU Outstanding | |
Beginning balance (in shares) | 3,354,333 |
Granted (in shares) | 3,091,511 |
Vested (in shares) | (1,224,579) |
Forfeited (in shares) | (726,318) |
Ending balance (in shares) | 4,494,947 |
Expected to vest (in shares) | 4,420,579 |
Weighted Average Grant-Date Fair Value | |
Beginning balance (in USD per share) | $ / shares | $ 19.48 |
Granted (in USD per share) | $ / shares | 11.48 |
Vested (in USD per share) | $ / shares | 19.52 |
Forfeited (in USD per share) | $ / shares | 16.95 |
Ending balance (in USD per share) | $ / shares | 14.37 |
Expected to Vest (in USD per share) | $ / shares | $ 14.45 |
Deferred delivery (in shares) | 74,368 |
Equity Compensation and Other_8
Equity Compensation and Other Benefits - Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 27,620 | $ 18,857 |
Capitalized compensation cost | 2,500 | 1,000 |
Technology and facilities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 6,993 | 2,844 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 143 | 125 |
Personnel | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 20,484 | $ 15,888 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | ||
Interest on loans | $ 854,245 | $ 566,155 |
Fees on loans | 21,869 | 9,684 |
Total interest income | 876,114 | 575,839 |
Non-interest income | ||
Gain on loan sales | 5,703 | 26,750 |
Servicing fees | 19,928 | 13,253 |
Subscription revenue | 31,186 | 813 |
Other income | 19,614 | 10,127 |
Total non-interest income | $ 76,431 | $ 50,943 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Company's Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (83,793) | $ 61,087 |
Foreign | 8,507 | 1,704 |
Income (loss) before taxes | $ (75,286) | $ 62,791 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
Federal | $ (1,217) | $ (1,394) |
State | 1,505 | (516) |
Foreign | 2,227 | 836 |
Total current | 2,515 | (1,074) |
Deferred | ||
Federal | (712) | 11,005 |
State | 806 | 5,372 |
Foreign | (151) | 74 |
Total deferred | (57) | 16,451 |
Total provision for income taxes | $ 2,458 | $ 15,377 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 22, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 2,458 | $ 15,377 | |
Effective tax rate | (3.30%) | 24.50% | |
Operating Loss Carryforwards [Line Items] | |||
Net operating loss & credit carryforward | $ 41,169 | $ 23,916 | |
Unrecognized tax benefits, interest and penalties | 900 | $ 400 | |
Unrecognized tax benefits that would impact effective tax rate | 4,500 | ||
Federal | Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 5,200 | ||
State | Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 5,000 | ||
Expires in 2034 | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 17,700 | ||
Carry Forward Indefinitely | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 117,500 | ||
Expires in 2031 | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 119,100 | ||
Hello Digit, Inc. | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss & credit carryforward | $ 53,300 | ||
Net operating loss, state | $ 27,400 | ||
Operating loss carryforwards | $ 135,200 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense computed at U.S. federal statutory rate | $ (15,810) | $ 13,186 |
State tax | 1,403 | 4,646 |
Foreign rate differential | 289 | 552 |
Federal tax credits | (2,621) | (1,962) |
Share based compensation expense | 506 | (353) |
Change in unrecognized tax benefit reserves | 1,326 | 853 |
Net operating loss carryback tax rate differential | 0 | (172) |
Return to provision adjustment | (5,798) | (2,812) |
Non-deductible acquisition costs | 0 | 1,458 |
Goodwill impairment | 22,779 | 0 |
Fines and penalties | 578 | 6 |
Other | (194) | (25) |
Income tax expense | $ 2,458 | $ 15,377 |
Effective tax rate | (3.30%) | 24.50% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 3,361 | $ 3,356 |
Leases | 10,174 | 12,859 |
Share-based compensation | 8,335 | 7,410 |
CARES Act payroll taxes | 0 | 536 |
Net operating loss & credit carryforward | 41,169 | 23,916 |
Other | 245 | 0 |
Total deferred tax assets | 63,284 | 48,077 |
Valuation allowance | 0 | 0 |
Deferred tax liabilities: | ||
System development costs | (11,803) | (22,323) |
Right of use assets | (8,163) | (10,353) |
Depreciation and amortization | (6,813) | (7,112) |
Fair value adjustment - Loans Receivable | (12,077) | (30,718) |
Fair value adjustment - Bonds Payable | (53,210) | (1,838) |
Other | 0 | (234) |
Total deferred tax liabilities | (92,066) | (72,578) |
Net deferred taxes | $ (28,782) | $ (24,501) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 5,170 | $ 3,927 |
Increases related to current year tax positions | 894 | 680 |
Increases related to prior year tax positions | 544 | 638 |
Decreases related to prior year tax positions | 0 | (75) |
Ending balance | $ 6,608 | $ 5,170 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Loans Receivable and Asset-Backed Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, unpaid principal balance | $ 3,098,609 | $ 2,272,864 |
Loans receivable at fair value | 3,143,653 | 2,386,807 |
Asset-backed notes, unpaid principal balance | 2,582,025 | 1,654,412 |
Asset-backed notes at fair value | 2,387,674 | 1,651,706 |
Personal Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, unpaid principal balance | 2,967,266 | 2,205,537 |
Loans receivable at fair value | 3,027,401 | 2,321,150 |
Credit Card | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, unpaid principal balance | 131,343 | 67,327 |
Loans receivable at fair value | 116,252 | $ 65,657 |
Unsecured Personal Loans Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable at fair value | 2,903,200 | |
Secured Personal Loans Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable at fair value | $ 124,200 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Quantitative Information About Significant Unobservable Inputs (Details) - Level 3 | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Card | Remaining cumulative charge-offs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.2280 | 0.1181 |
Credit Card | Average life (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.69 | 0.34 |
Credit Card | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.1484 | 0.0835 |
Credit Card | Principal payment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.0928 | 0.1807 |
Minimum | Personal Loans | Remaining cumulative charge-offs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.0506 | 0.0675 |
Minimum | Personal Loans | Remaining cumulative prepayments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0 | 0 |
Minimum | Personal Loans | Average life (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.05 | 0.22 |
Minimum | Personal Loans | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.1134 | 0.0690 |
Maximum | Personal Loans | Remaining cumulative charge-offs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.5145 | 0.5186 |
Maximum | Personal Loans | Remaining cumulative prepayments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.3359 | 0.4425 |
Maximum | Personal Loans | Average life (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 1.52 | 1.51 |
Maximum | Personal Loans | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.1134 | 0.0690 |
Weighted Average | Personal Loans | Remaining cumulative charge-offs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.0986 | 0.0953 |
Weighted Average | Personal Loans | Remaining cumulative prepayments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.2873 | 0.3247 |
Weighted Average | Personal Loans | Average life (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 1.01 | 0.87 |
Weighted Average | Personal Loans | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for unsecured personal loan portfolio | 0.1134 | 0.0690 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Loans Receivable at Fair Value Using Significant Unobservable Inputs (Details) - Loans receivable at fair value - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance – beginning of period | $ 2,386,807 | $ 1,696,526 |
Principal disbursements | 3,111,276 | 2,052,280 |
Principal payments from borrowers | (1,974,832) | (1,276,058) |
Gross charge-offs | (310,701) | (142,985) |
Net (decrease) increase in fair value | (68,897) | 57,044 |
Balance ‑ end of period | $ 3,143,653 | $ 2,386,807 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Fair value of loans 90 days or more past due | $ 4,100,000 | $ 3,500,000 |
Aggregate unpaid principal balance of loans 90 days or more past due | 35,200,000 | 20,700,000 |
Transfers out of level 3 | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable at fair value | 3,143,653,000 | $ 2,386,807,000 |
Unsecured Personal Loans Receivable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable at fair value | 2,903,200,000 | |
Secured Personal Loans Receivable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable at fair value | $ 124,200,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Financial Instruments at Amortized Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | $ 98,817 | $ 130,959 |
Restricted cash | 105,000 | 62,001 |
Loans held for sale (Note 5) | 0 | |
Liabilities | ||
Accounts payable | 9,670 | 8,343 |
Secured financing (Note 9) | 0 | 0 |
Acquisition and corporate financing (Note 9) | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans held for sale (Note 5) | 0 | |
Liabilities | ||
Accounts payable | 0 | 0 |
Secured financing (Note 9) | 306,574 | 396,081 |
Acquisition and corporate financing (Note 9) | 233,166 | 116,000 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans held for sale (Note 5) | 547 | |
Liabilities | ||
Accounts payable | 0 | 0 |
Secured financing (Note 9) | 0 | 0 |
Acquisition and corporate financing (Note 9) | 0 | 0 |
Carrying value | ||
Assets | ||
Cash and cash equivalents | 98,817 | 130,959 |
Restricted cash | 105,000 | 62,001 |
Loans held for sale (Note 5) | 491 | |
Liabilities | ||
Accounts payable | 9,670 | 8,343 |
Secured financing (Note 9) | 320,000 | 398,000 |
Acquisition and corporate financing (Note 9) | 235,679 | 116,000 |
Estimated fair value | ||
Assets | ||
Cash and cash equivalents | 98,817 | 130,959 |
Restricted cash | 105,000 | 62,001 |
Loans held for sale (Note 5) | 547 | |
Liabilities | ||
Accounts payable | 9,670 | 8,343 |
Secured financing (Note 9) | 306,574 | 396,081 |
Acquisition and corporate financing (Note 9) | $ 233,166 | $ 116,000 |
Leases, Commitments and Conting
Leases, Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2022 retailLocation | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 04, 2022 | Nov. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Number of retail locations closed | retailLocation | 27 | |||||
Rental expense under operating leases | $ 18,500,000 | $ 24,300,000 | ||||
Purchase commitment, 2023 | 26,400,000 | |||||
Purchase commitment, 2024 | 14,100,000 | |||||
Purchase commitment, 2025 | 5,500,000 | |||||
Purchase commitment, 2026 | 2,000,000 | |||||
Purchase commitment, 2027 and thereafter | 0 | |||||
Minimum loans to be sold under whole loan sale agreement (percentage) | 10% | 10% | ||||
Additional loans to be sold under whole loan sale agreement (percentage ) | 5% | 5% | ||||
Unfunded loan and credit card commitments | 45,000,000 | 39,800,000 | ||||
Civil Penalty to CFPB | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Loss contingency accrual, payments | $ 2,700,000 | |||||
Bank Partnership Program and Servicing Agreement Loans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-term purchase commitment | 600,000 | |||||
Facility Closing | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accelerated amortization of right-of-use assets | $ 1,400,000 | |||||
Restructuring costs | 12,800,000 | |||||
Accelerated amortization of right-of-use assets and renegotiation of lease liabilities | $ 5,200,000 | |||||
Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Remaining lease term | 10 years | |||||
Minimum | Redress to Eligible Customers | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Loss contingency accrual, payments | $ 68,145 |
Leases, Commitments, and Cont_3
Leases, Commitments, and Contingencies - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lease expense | ||
2023 | $ 13,879 | $ 14,927 |
2024 | 11,940 | 13,214 |
2025 | 9,969 | 11,142 |
2026 | 3,918 | 9,238 |
2027 | 1,032 | 3,387 |
Thereafter | 25 | 706 |
Total lease payments | 40,763 | 52,614 |
Imputed interest | (2,816) | (4,030) |
Total leases | $ 37,947 | $ 48,584 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities | Lease liabilities |
Sublease income | ||
2023 | $ (896) | |
2023 and thereafter | 0 | |
Total lease payments | (896) | |
Imputed interest | 11 | |
Total sublease income | $ 0 | (885) |
Lease liabilities | $ 37,947 | $ 47,699 |
Weighted average remaining lease term | 3 years 2 months 12 days | 3 years 10 months 24 days |
Weighted average discount rate | 4.06% | 4.01% |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended | |||||||||||
Mar. 27, 2023 USD ($) | Mar. 10, 2023 USD ($) $ / shares shares | Feb. 10, 2023 USD ($) | Feb. 09, 2023 employee | Sep. 14, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 23, 2023 USD ($) | Apr. 21, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jul. 28, 2022 USD ($) | May 24, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subsequent Event [Line Items] | ||||||||||||
Facility amount | $ 750,000,000 | |||||||||||
Asset-backed Note | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Initial note amount issued | 2,754,412,000 | $ 1,654,412,000 | ||||||||||
Asset-backed Note | Asset-Backed Notes Class D | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Initial note amount issued | $ 119,500,000 | $ 9,100,000 | $ 20,900,000 | |||||||||
Asset-backed Note | Asset-Backed Notes Class D | SOFR | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, basis spread (as a percent) | 8% | |||||||||||
Term Loan | Senior Secured Term Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Initial note amount issued | $ 150,000,000 | |||||||||||
Term Loan | Senior Secured Term Loans | SOFR | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, basis spread (as a percent) | 9% | |||||||||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Reduction in number of staff (as a percent) | 10% | |||||||||||
Expected number of employees to be eliminated | employee | 155 | |||||||||||
Subsequent Event | Incremental Tranche A-1 Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Warrants to purchase shares of common stock (in shares) | shares | 1,980,242 | |||||||||||
Class of warrant or right (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Subsequent Event | Incremental Tranche A-2 Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Warrants to purchase shares of common stock (in shares) | shares | 116,485 | |||||||||||
Subsequent Event | Incremental Tranche B Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Warrants to purchase shares of common stock (in shares) | shares | 1,048,363 | |||||||||||
Subsequent Event | Incremental Tranche C Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Warrants to purchase shares of common stock (in shares) | shares | 1,048,363 | |||||||||||
Class of warrant or right (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Subsequent Event | Asset-backed Note | Asset-Backed Notes Class D | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Principal payments | $ 42,000,000 | |||||||||||
Subsequent Event | Asset-backed Note | Asset-Backed Notes Class D | SOFR | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, basis spread (as a percent) | 11% | |||||||||||
Subsequent Event | Term Loan | Incremental Tranche A-1 Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Proceeds from borrowings | $ 20,800,000 | |||||||||||
Subsequent Event | Term Loan | Senior Secured Term Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Initial note amount issued | $ 75,000,000 | |||||||||||
Amount payable in cash or kind (as a percent) | 3% | |||||||||||
Subsequent Event | Term Loan | Senior Secured Term Loans | SOFR | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Interest rate, basis spread (as a percent) | 9% | |||||||||||
Subsequent Event | Forecast | Term Loan | Incremental Tranche A-2 Loans | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Proceeds from borrowings | $ 4,200,000 | |||||||||||
Subsequent Event | Forecast | Term Loan | Uncommitted Borrowings | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Initial note amount issued | $ 50,000,000 | $ 25,000,000 | $ 25,000,000 | |||||||||
Subsequent Event | Minimum | Forecast | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Expected non-recurring pre-tax charges | $ 6,000,000 | |||||||||||
Subsequent Event | Maximum | Forecast | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Expected non-recurring pre-tax charges | $ 7,000,000 |