Ally Financial Inc.
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
ALLY$38.17-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0000040729-26-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0000040729-26-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 403 previous paragraphs and 426 current paragraphs.
278 unchanged; 114 reworded; 23 added; 8 removed; 3 previous and 11 current paragraphs rearranged.
Tables are not compared: 50 previous and 58 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Insurance premiums and service revenue earned was $368 million and $728 million for the three months and six months ended June 30, 2026, respectively, compared to $359 million and $723 million for the three months and six months ended June 30, 2025. The increases for the three months and six months ended June 30, 2026, were primarily due to higher GAP, other ancillary F&I products and P&C volume. The increases were partially offset by lower VSC volume.
Current report
The provision for credit losses increased $55 million and $89 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net-charge-offs. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current report
(a)Includes CSG originations of $2.4 billion and $1.8 billion for the six months ended June 30, 2026, and 2025, respectively.
Current report
For discussion of manufacturer marketing incentives, refer to the section titled Automotive Financing Volume—Manufacturer Marketing Incentives within the MD&A in our 2025 Annual Report on Form 10-K.
Current report
Insurance premiums and service revenue earned was $368 million and $728 million for the three months and six months ended June 30, 2026, respectively, compared to $359 million and $723 million for the three months and six months ended June 30, 2025. The increases for the three months and six months ended June 30, 2026, were primarily due to higher GAP, other ancillary F&I products and P&C volume. The increases were partially offset by lower VSC volume.
Current report
The provision for credit losses decreased $10 million and $16 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The decreases were primarily driven by lower specific reserves, including the favorable resolution of one exposure in our legacy health care cash flow vertical during the three months and six months ended June 30, 2026. This resolution resulted in a partial charge-off and release of the remaining related specific reserve, reducing provision expense. The decrease for the six months ended June 30, 2026, was also driven by lower reserve build related to slower asset growth. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current report
The provision for credit losses increased $1 million and $249 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increase for the six months ended June 30, 2026, was primarily driven by a provision benefit within our consumer other portfolio associated with the sale of Ally Credit Card that occurred during the six months ended June 30, 2025. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current report
Our operational and information technology/cybersecurity/data risks continue to evolve as technological innovation accelerates. For example, frontier and other emerging AI models are rapidly changing the risk landscape across the financial services industry, which is increasing the speed, scale, and complexity of cyber threats. As these technologies advance, organizations (including us), may be required to identify, assess, and respond to emerging risks more quickly, which may require prioritizing security over other business activities. The broad availability of increasingly capable open-source AI models and other emerging technologies increases the ability of threat actors to develop, scale, and automate cyberattacks and other malicious activities. We actively monitor advances in frontier and other emerging AI and evaluate how evolving AI capabilities may be incorporated into our risk management framework. Remaining vigilant with respect to these developments is an important component of maintaining an effective approach in managing cyber threats, and failure to do so could diminish our ability to identify and respond to cyber threats in a timely manner.
Current report
We had net charge-offs from total commercial finance receivables and loans of $51 million and $52 million for the three months and six months ended June 30, 2026, respectively. The increases in net charge-offs for the three months and six months ended June 30, 2026, as compared to three months and six months ended June 30, 2025, were primarily driven by the charge-off of a specific exposure within our Corporate Finance operations.
Current report
(b)Within Commercial, figures include the impact of the charge-off and release of the specific reserve related to one exposure in our legacy health care cash flow vertical.
Current report
(b)Within Commercial, figures include the impact of the charge-off and release of the specific reserve related to one exposure in our legacy health care cash flow vertical.
Current report
The provision for commercial credit losses decreased $4 million and $25 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The decreases were primarily driven by lower specific reserves, including the favorable resolution of one exposure in our legacy health care cash flow vertical during the three months and six months ended June 30, 2026, in our Corporate Finance operations. This resolution resulted in a partial charge-off and release of the remaining related specific reserve, reducing provision expense. Additionally, the decreases were driven by lower specific reserve activity in our Automotive Finance operations. The decrease for the six months ended June 30, 2026, was also driven by lower reserve build related to slower asset growth in our Corporate Finance operations.
Current report
•We issued $550 million of credit-linked notes. Refer to the section below titled Credit-Linked Notesfor additional information.
Current report
•We raised $987 million through the issuance of 1,000,000 shares of 7.100% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D. Refer to Note 14 to the Condensed Consolidated Financial Statements for additional information.
Current report
•We redeemed all 1,350,000 of our issued and outstanding 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, for $1.35 billion in cash. Refer to Note 14 to the Condensed Consolidated Financial Statements for additional information.
Current report
(a)Includes certain amounts funded from the issuance of credit-linked notes. Refer to Note 17 to to the Condensed Consolidated Financial Statements for further information about the issuance of credit-linked notes.
Current report
Credit-Linked Notes
Current report
In February 2026, the FRB issued final stress test scenarios for the 2026 supervisory stress test, and announced it intends to maintain stress capital buffer requirements at their current level until 2027 when new requirements can be calculated based on models that take public feedback into consideration. Whether and when final rules related to stress-testing proposals may be adopted and take effect, as well as what changes to the proposed rules may be reflected in any such final rules, remain unclear. We submitted our 2026 capital plan to the FRB in April 2026.
Current report
In December 2024, we accessed the unsecured debt capital markets and issued $500 million of subordinated notes, which qualify for us as Tier 2 capital for Ally under U.S. Basel III. During the second quarter of 2026, we issued $1.0 billion of Series D Preferred Stock, which qualifies for us as additional Tier 1 capital under U.S. Basel III. The proceeds from this issuance were used to support the redemption of all of our Series B Preferred Stock then outstanding.
Current report
(g)Represents interest expense on tax liabilities included in other liabilities on the Condensed Consolidated Balance Sheet. The interest expense on tax liabilities is included in the net yield on interest-earning assets and excluded from the interest spread. For more information on our accounting policies regarding income taxes, refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.
Current report
(c)Includes interest expense related to margin received on derivative contracts of $1 million and $4 million for the six months ended June 30, 2026, and June 30, 2025, respectively. Excluding this expense, the annualized yield was 3.61% and 4.35% for the six months ended June 30, 2026, and June 30, 2025, respectively.
Current report
(g)Yield includes losses on the sale of off-lease vehicles of $12 million and $19 million for the six months ended June 30, 2026, and June 30, 2025, respectively. Excluding the loss on sale, the annualized yield was 5.94% and 6.76% for the six months ended June 30, 2026, and June 30, 2025, respectively.
Current report
(h)Represents interest expense on tax liabilities included in other liabilities on the Condensed Consolidated Balance Sheet. The interest expense on tax liabilities is included in the net yield on interest-earning assets and excluded from the interest spread. For more information on our accounting policies regarding income taxes, refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.
Removed paragraphs (8)
Previous report
Insurance premiums and service revenue earned was $360 million for the three months ended March 31, 2026, compared to $364 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to lower P&C and VSC volume. The decrease was partially offset by growth of GAP and other ancillary F&I products.
Previous report
Insurance premiums and service revenue earned was $360 million for the three months ended March 31, 2026, compared to $364 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to lower P&C and VSC volume. The decrease was partially offset by growth of GAP and other ancillary F&I products.
Previous report
The provision for credit losses decreased $6 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by lower portfolio growth and specific reserve activity as compared to the same period in 2025. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report
The provision for credit losses increased $248 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was driven by a provision benefit associated with the transfer of Ally Credit Card to held-for-sale during the three months ended March 31, 2025. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report
(a)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.
Previous report
(a)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.
Previous report
The provision for commercial credit losses decreased $21 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by lower specific reserve activity in both Automotive Finance and Corporate Finance operations, and lower portfolio growth in our Corporate Finance operations as compared to the three months ended March 31, 2025.
Previous report
We continue to be recognized for the total experience and value we deliver to our customers - combining strong products, intuitive digital tools, and trusted service. In 2026, Ally was named one of Forbes’ World’s Best Banks and Best National Retail Bank by Newsweek, reinforcing our position as a customer-first financial institution. Newsweek also recognized Ally among America’s Most Reliable and Most Trustworthy Companies, reflecting the confidence customers place in our brand. Ally’s digital leadership and service excellence continue to set us apart. Money recognized Ally among the Best Banks for Digital Investing and FinanceBuzz awarded Ally the Best Account for Automated Savings in 2026. Our commitment to customer care was further recognized by Newsweek and USA Today, which rank Ally among America’s Best Customer Service organizations in Financial Services.
Reworded paragraphs (114)
Previous wording
Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company with the nation’s largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to “Do It Right” and be a relentless ally for all stakeholders. The Company serves customers with deposits and securities brokerage and investment advisory services as well as automotive financing and insurance offerings. The Company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act.
Current wording
Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company that includes the nation’s largest all-digital bank and automotive finance businesses, driven by a mission to “Do It Right” for its customers and communities. Ally Bank, Member FDIC, offers online banking products, including savings and checking accounts. Ally also provides investing solutions through Ally Invest, including online brokerage, automated investing, IRAs and personal financial advice. Ally provides consumer and dealer financing, insurance, and vehicle remarketing services. Ally’s corporate finance business provides capital to equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act.
Previous wording
Our Automotive Finance operations include purchasing retail installment sales contracts and operating leases from dealers and automotive retailers, extending automotive loans directly to consumers, offering term loans to dealers, financing dealer floorplans and providing other lines of credit to dealers, offering automotive-fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and supplying vehicle-remarketing services. Our success as an automotive finance provider is driven by the consistent presence and breadth of products and services we offer to dealers and automotive retailers. The automotive marketplace continues to evolve, including varying levels of investment in electric vehicle technologies by automotive manufacturers and suppliers. We continue to identify and cultivate relationships with automotive retailers, including those with leading e-commerce platforms, and we also operate an online direct lending platform for consumers seeking direct financing. We believe these products enable us to respond to the ongoing trends toward more streamlined and digital automotive financing processes that serve both dealers and consumers. Additionally, we provide comprehensive automotive remarketing services, including the use of SmartAuction, our online auction platform, which efficiently supports dealer-to-dealer and other commercial wholesale vehicle transactions. SmartAuction provides diversified fee-based revenue and serves as a means of deepening relationships with our dealership customers. Beyond offering a full suite of solutions for our dealership customers, we also offer application pass-through programs for credit applications that do not meet our underwriting criteria, allowing dealers to provide expanded access to credit for consumers and improve sales at their dealership. Through our pass-through programs, we are able to monetize our declined applications by generating a combination of acquisition fee and servicing revenue for loans that are originated, sold to, and serviced on behalf of third-party lenders, or one-time acquisition fees for loans funded and serviced by a third party. Our strong and expansive dealer relationships, comprehensive suite of products and services, full spectrum financing, and depth of experience position us to adapt as vehicle technologies and consumer preferences evolve. We have provided and continue to provide automobile financing for battery electric and, to a lesser extent, plug-in hybrid vehicles, including brands such as Tesla, Jeep, Alfa Romeo, and Chevrolet. While we expect most of these vehicles to continue to be sold through dealerships and automotive retailers with whom we have established relationships, we also partner with automotive manufacturers that use a direct-to-consumer model. During the three months ended March 31, 2026, $509 million of our consumer automotive retail loan originations and purchases, and $63 million of our operating leas…
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Current wording
Our Automotive Finance operations include purchasing retail installment sales contracts and operating leases from dealers and automotive retailers, extending automotive loans directly to consumers, offering term loans to dealers, financing dealer floorplans and providing other lines of credit to dealers, offering automotive-fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and supplying vehicle-remarketing services. Our success as an automotive finance provider is driven by the consistent presence and breadth of products and services we offer to dealers and automotive retailers. The automotive marketplace continues to evolve, including varying levels of investment in electric vehicle technologies by automotive manufacturers and suppliers. We continue to identify and cultivate relationships with automotive retailers, including those with leading e-commerce platforms, and we also operate an online direct lending platform for consumers seeking direct financing. We believe these products enable us to respond to the ongoing trends toward more streamlined and digital automotive financing processes that serve both dealers and consumers. Additionally, we provide comprehensive automotive remarketing services, including the use of SmartAuction, our online auction platform, which efficiently supports dealer-to-dealer and other commercial wholesale vehicle transactions. SmartAuction provides diversified fee-based revenue and serves as a means of deepening relationships with our dealership customers. Beyond offering a full suite of solutions for our dealership customers, we also offer application pass-through programs for credit applications that do not meet our underwriting criteria, allowing dealers to provide expanded access to credit for consumers and improve sales at their dealership. Through our pass-through programs, we are able to monetize our declined applications by generating a combination of acquisition fee and servicing revenue for loans that are originated, sold to, and serviced on behalf of third-party lenders, or one-time acquisition fees for loans funded and serviced by a third party. Our strong and expansive dealer relationships, comprehensive suite of products and services, full spectrum financing, and depth of experience position us to adapt as vehicle technologies and consumer preferences evolve. We have provided and continue to provide automobile financing for battery electric and, to a lesser extent, plug-in hybrid vehicles, including brands such as Tesla, Jeep, Alfa Romeo, and Chevrolet. While we expect most of these vehicles to continue to be sold through dealerships and automotive retailers with whom we have established relationships, we also partner with automotive manufacturers that use a direct-to-consumer model. During the six months ended June 30, 2026, $1.6 billion of our consumer automotive retail loan originations and purchases, and $69 million of our operating lease o…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Our dealer-centric business model, value-added products and services, full-spectrum financing, and business expertise proven over many credit cycles, make us a premier automotive finance and insurance company ready to support and strengthen over 21,400 active dealer relationships as of March 31, 2026. A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended March 31, 2026.
Current wording
Our dealer-centric business model, value-added products and services, full-spectrum financing, and business expertise proven over many credit cycles, make us a premier automotive finance and insurance company ready to support and strengthen over 21,600 active dealer relationships as of June 30, 2026. A dealer is considered to have an active relationship with us if we provided automotive financing, remarketing, or insurance services during the three months ended June 30, 2026.
Previous wording
•Our Corporate Finance operations primarily offer senior-secured loans to private equity sponsor-owned U.S.-based middle-market companies and to well-established asset managers that mostly provide leveraged loans. The portfolio is composed of floating-rate leveraged asset-based and cash flow/enterprise value loans. Our Corporate Finance operations had $13.8 billion of assets at March 31, 2026, and generated $148 million of total net revenue during the three months ended March 31, 2026, and continues to offer attractive returns and diversification benefits to our broader lending portfolio. Our Sponsor Finance business focuses on companies owned by private-equity sponsors with loans typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, co-lending arrangements, turnarounds, and debtor-in-possession financings. Additionally, our Private Credit Finance business provides asset managers and other financing sources with facilities to partially fund their direct-lending activities. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings. Additionally, we have an energy and infrastructure vertical that finances large-scale energy and infrastructure projects.
Current wording
•Our Corporate Finance operations primarily offer senior-secured loans to private equity sponsor-owned U.S.-based middle-market companies and to well-established asset managers that mostly provide leveraged loans. The portfolio is composed of floating-rate leveraged asset-based and cash flow/enterprise value loans. Our Corporate Finance operations had $13.9 billion of assets at June 30, 2026, and generated $293 million of total net revenue during the six months ended June 30, 2026, and continues to offer attractive returns and diversification benefits to our broader lending portfolio. Our Sponsor Finance business focuses on companies owned by private-equity sponsors with loans typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, co-lending arrangements, turnarounds, and debtor-in-possession financings. Additionally, our Private Credit Finance business provides asset managers and other financing sources with facilities to partially fund their direct-lending activities. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings. Additionally, we have an energy and infrastructure vertical that finances large-scale energy and infrastructure projects.
Previous wording
We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning and stress testing. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impact on us given our exposure to these trends. As of March 31, 2026, the unemployment rate decreased to 4.3%. Sales of new light motor vehicles fell to an average annual rate of 15.6 million during the first quarter of 2026. Sales of new light motor vehicles remained below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values.
Current wording
We employ an internal team of economists to enhance our planning and forecasting capabilities. This team conducts industry and market research, monitors economic risks, and helps support various forms of scenario planning and stress testing. This group closely monitors macroeconomic trends, such as unemployment rate and sales of new light motor vehicles, given the nature of our business and the potential impact on us given our exposure to these trends. As of June 30, 2026, the unemployment rate decreased to 4.2%. Sales of new light motor vehicles rose to an average annual rate of 16.3 million during the second quarter of 2026. Sales of new light motor vehicles remained below the pre-pandemic annual pace of 17.0 million in 2019, which has limited incoming used vehicle supply and supported used vehicle values.
Previous wording
Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of March 31, 2026, anticipated the unemployment rate peaking at approximately 4.6% in the second quarter of 2026, before reverting to the historical mean of approximately 5.7% by the first quarter of 2029. Additionally, our baseline forecast anticipated GDP growth slowing to 2.0% as measured on a quarter-over-quarter seasonally adjusted annualized rate basis in 2026 and 2027, before reverting to the historical mean of approximately 2.2% by the first quarter of 2029, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis peaking at more than 16 million units in the fourth quarter of 2026, before reverting to the historical mean of 15 million units by the first quarter of 2029. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, which includes the effects of elevated energy prices, consumer financial health, and geopolitical conflict and related uncertainty, that could adversely impact frequency of loss and LGD. Refer to the Risk Management section of this MD&A for further discussion on our allowance for loan losses.
Current wording
Our baseline forecast utilized in calculating the quantitative allowance for loan losses as of June 30, 2026, anticipated the unemployment rate peaking at approximately 4.5% in the third quarter of 2026, before reverting to the historical mean of approximately 5.7% by the second quarter of 2029. Additionally, our baseline forecast anticipated GDP growth increasing to 2.2% as measured on a quarter-over-quarter seasonally adjusted annualized rate basis in 2027, before reverting to the historical mean of approximately 2.1% by the second quarter of 2029, and increases in new light vehicle sales on a seasonally adjusted annualized rate basis peaking at more than 16 million units in the third quarter of 2027, before reverting to the historical mean of 15 million units by the second quarter of 2029. We also maintain a qualitative allowance framework to account for ongoing risks and volatility in the macroeconomic environment, including the impacts from tariffs, inflation, which includes the effects of elevated energy prices, consumer financial health, and geopolitical conflict and related uncertainty, that could adversely impact frequency of loss and LGD. Refer to the Risk Management section of this MD&A for further discussion on our allowance for loan losses.
Previous wording
Risks related to geopolitical developments, including the ongoing conflicts in the Middle East, could disrupt global supply chains, energy markets, and financial markets, and could adversely impact economic conditions. For example, rising gasoline prices could suppress demand for vehicles which could reduce used vehicle values. Sustained increased in oil and gasoline prices could contribute to broader inflationary pressures, weaken discretionary spending, and adversely affect employment and income in certain sectors, further pressuring household budgets, and credit performance.
Current wording
Risks related to geopolitical developments, including the ongoing conflicts in the Middle East, could disrupt global supply chains, energy markets, and financial markets, and could adversely impact economic conditions. For example, rising gasoline prices could suppress demand for vehicles which could reduce used vehicle values. Sustained increases in oil and gasoline prices could contribute to broader inflationary pressures, weaken discretionary spending, and adversely affect employment and income in certain sectors, further pressuring household budgets, and credit performance.
Previous wording
(b)During the three months ended March 31, 2026, the common dividend payout ratio was calculated using basic earnings per common share. During the three months ended March 31, 2025, we paid dividends of $0.30 per share and incurred a loss of $0.82 per share. Due to the relationship of this calculation and the net loss incurred, this ratio is not meaningful for the three months ended March 31, 2025.
Current wording
(b)The common dividend payout ratio was calculated using basic earnings per common share.
Previous wording
We earned net income from continuing operations of $319 million for the three months ended March 31, 2026, compared to a loss of $225 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026, was primarily driven by higher total other revenue, lower total noninterest expense, and lower total interest expense. The increase was partially offset by higher provision for credit losses.
Current wording
We earned net income from continuing operations of $410 million and $729 million for the three months and six months ended June 30, 2026, respectively, compared to $352 million and $127 million for the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by higher net financing revenue and other interest income and higher total other revenue, partially offset by higher total noninterest expense and higher provision expense. The increase for the six months ended June 30, 2026, was primarily driven by higher total other revenue, higher net financing revenue and other interest income and lower total noninterest expense, partially offset by higher provision expense.
Previous wording
Net financing revenue and other interest income increased $111 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by lower total interest expense in response to lower benchmark interest rates, which decreased our cost of funds associated with our deposit liabilities. The increase was partially offset by the sale of Ally Credit Card, which closed on April 1, 2025.
Current wording
Net financing revenue and other interest income increased $168 million and $279 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by higher total financing revenue and other interest income as a result of higher average earning assets. Additionally, the increases were driven by lower total interest expense in response to lower benchmark interest rates, which decreased our cost of funds associated with our deposit liabilities. The increase for the six months ended June 30, 2026, was partially offset by the sale of Ally Credit Card, which closed on April 1, 2025.
Previous wording
Other loss on investments, net, was $21 million for the three months ended March 31, 2026, compared to $499 million for the three months ended March 31, 2025. The decrease in loss for the three months ended March 31, 2026, was primarily attributable to a balance sheet repositioning of a portion of our available-for-sale securities during the three months ended March 31, 2025.
Current wording
Other gain on investments, net, was $76 million and $55 million for the three months and six months ended June 30, 2026, respectively, compared to a gain of $61 million and a loss of $438 million for the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily due to favorable performance from equity securities. The increase for the six months ended June 30, 2026, was primarily attributable to a balance sheet repositioning of a portion of our available-for-sale securities during the six months ended June 30, 2025.
Previous wording
Other income, net of losses decreased $20 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card, which closed on April 1, 2025.
Current wording
Other income, net of losses increased $16 million for the three months ended June 30, 2026, and decreased $4 million for the six months ended June 30, 2026, compared to the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by increased service fee income. The decrease for the six months ended June 30, 2026, was primarily driven by lower late charges and other administrative fees as a result of the sale of Ally Credit Card and unfavorable performance from equity-method investments. The decrease was partially offset by increased service fee income.
Previous wording
The provision for credit losses increased $276 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by a provision benefit within our consumer other portfolio associated with the transfer of Ally Credit Card to held-for-sale that occurred during the three months ended March 31, 2025, and an increase in portfolio growth within our consumer automotive portfolio during the three months ended March 31, 2026. The increase was partially offset by lower net charge-offs within our consumer other portfolio as a result of the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Current wording
The provision for credit losses increased $46 million and $322 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increase in provision for credit losses for the three months ended June 30, 2026, was primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net charge-offs within our consumer automotive portfolio. The increase in provision for credit losses for the six months ended June 30, 2026, was primarily driven by a provision benefit within our consumer other portfolio associated with the sale of Ally Credit Card that occurred during the six months ended June 30, 2025. The increase in provision for credit losses for the six months ended June 30, 2026, was partially offset by lower net charge-offs within our consumer other portfolio as a result of the sale of Ally Credit Card and lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous wording
Total noninterest expense decreased $399 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by the impairment of goodwill associated with the transfer of Ally Credit Card to held-for-sale during the three months ended March 31, 2025. Additionally, the decrease was driven by lower other operating expenses due to the sale of Ally Credit Card and lower insurance losses and loss adjustment expenses from our vehicle inventory insurance business.
Current wording
Noninterest expense increased $57 million for the three months ended June 30, 2026, and decreased $342 million for the six months ended June 30, 2026, compared to the three months and six months ended June 30, 2025. The increase for the three months ended June 30, 2026, was primarily driven by higher compensation and benefits and higher operating expenses. The decrease for the six months ended June 30, 2026, was primarily driven by the impairment of goodwill associated with the sale of Ally Credit Card during the six months ended June 30, 2025.
Previous wording
We recognized total income tax expense from continuing operations of $81 million for the three months ended March 31, 2026, compared to an income tax benefit of $59 million for the three months ended March 31, 2025. The increase in income tax expense for the three months ended March 31, 2026, was primarily attributable to the tax effects of a loss on investments recognized as a result of our balance sheet repositioning of a portion of our available-for-sale securities during the three months ended March 31, 2025.
Current wording
We recognized total income tax expense from continuing operations of $127 million and $208 million for the three months and six months ended June 30, 2026, respectively, compared to income tax expense of $84 million and $25 million for the same periods in 2025. The increase in income tax expense for the three months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, and an income tax benefit from the revaluation of our deferred tax assets and liabilities of a California tax law enacted during the second quarter of 2025. The increase for the six months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, as well as the tax effects of a loss on investments recognized as a result of our balance sheet repositioning of a portion of our available-for-sale securities during the six months ended June 30, 2025.
Previous wording
(a)Includes net remarketing losses of $10 million and $19 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(a)Includes net remarketing losses of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, compared to net remarketing losses of $19 million for the six months ended June 30, 2025.
Previous wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $336 million for the three months ended March 31, 2026, compared to $375 million for the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026, was primarily due to higher interest expense, higher total noninterest expense, and higher provision for credit losses. The decrease was partially offset by higher total financing revenue and other interest income.
Current wording
Our Automotive Finance operations earned income from continuing operations before income tax expense of $410 million and $746 million for the three months and six months ended June 30, 2026, respectively, compared to $472 million and $847 million for the three months and six months ended June 30, 2025. The decreases for the three months and six months ended June 30, 2026, were primarily due to higher interest expense, higher provision for credit losses, and higher total noninterest expense, which were partially offset by higher total financing revenue and other interest income.
Previous wording
Consumer automotive loan financing revenue and other interest income increased $82 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher average consumer assets resulting from origination growth and higher portfolio yields as higher yielding originations replace maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers.
Current wording
Consumer automotive loan financing revenue and other interest income increased $95 million and $177 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily driven by higher average consumer assets resulting from origination growth, as well as higher portfolio yields, reflecting the replacement of maturing lower-yielding assets with higher-yielding originations following pricing actions designed to maximize risk-adjusted returns across credit tiers.
Previous wording
Commercial loan financing revenue and other interest income decreased $9 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily due to lower yield driven by lower benchmark interest rates, as our commercial automotive loans are generally variable-rate. The decrease was partially offset by higher average outstanding commercial balances.
Current wording
Commercial loan financing revenue and other interest income increased $25 million and $16 million for the three months and six months ended June 30, 2026, respectively, compared to the three months and six months ended June 30, 2025. The increases were primarily due to higher average outstanding commercial balances.
Previous wording
Interest expense increased $63 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by higher asset balances and higher funding costs as a result of a gradual shift in the composition of our consumer portfolios to loans and leases originated during a higher interest rate environment.
Current wording
Interest expense increased $85 million and $148 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases for the three months and six months ended June 30, 2026, were primarily driven by higher asset balances and higher funding costs, as our consumer portfolios continued to shift towards the loans and leases originated in a higher interest rate environment.
Previous wording
Total net operating lease revenue increased $13 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase in net operating lease revenue was driven by higher average operating lease assets and lower net remarketing losses. We recognized net remarketing losses of $10 million for the three months ended March 31, 2026, compared to net remarketing losses of $19 million for the three months ended March 31, 2025. The decrease in remarketing losses for the three months ended March 31, 2026, was primarily driven by lower termination volume and slightly improved remarketing performance. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. Additionally, our operating lease portfolio mix has shifted towards contracts with a residual value guarantee, and towards a more diverse mix of OEMs for contracts without a residual value guarantee, which may reduce volatility in remarketing gains and losses in future years. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current wording
Total net operating lease revenue decreased $15 million and $2 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The decreases in net operating lease revenue were driven by higher depreciation expense which was partially offset by an increase in operating lease income, as compared to the same periods in 2025. Depreciation expense increased by $53 million and $81 million for the three months and six months ended June 30, 2026, respectively. We recognized net remarketing losses of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, compared to net remarketing losses of $19 million for the six months ended June 30, 2025. The decrease in remarketing losses for the six months ended June 30, 2026, was primarily driven by lower termination volume and slightly improved remarketing performance. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous wording
Total noninterest expense increased $3 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily due to higher direct and allocated expenses related to the growth of the business.
Current wording
Total noninterest expense increased $36 million and $74 million for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily due to higher direct and allocated expenses related to the growth of the business.
Previous wording
(c)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 9.28% and 9.20% for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(c)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 9.25% and 9.27% for the three months and six months ended June 30, 2026, respectively, and 9.26% and 9.23% for the three months and six months ended June 30, 2025.
Previous wording
(d)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 5.70% and 6.50%, for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(d)Excludes the effects of derivative financial instruments designated as hedges, which is included within Corporate and Other. Including the impact of hedging activities, the yield was 5.55% and 5.62% for the three months and six months ended June 30, 2026, respectively, and 6.41% and 6.45% for the three months and six months ended June 30, 2025.
Previous wording
(f)Yield includes net losses on the sale of off-lease vehicles of $10 million and $19 million for the three months ended March 31, 2026, and 2025, respectively. Excluding these losses on sale, the yield was 6.19% and 6.66% for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(f)Yield includes net losses on the sale of off-lease vehicles of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, and net losses of $19 million for the six months ended June 30, 2025. Excluding these losses and gains on sale, the yield was 5.69% and 5.94% for the three months and six months ended June 30, 2026, respectively, compared to 6.86% and 6.76% for the three months and six months ended June 30, 2025.
Previous wording
Our portfolio yield for consumer automotive loans excluding the impact of hedging activities increased 16 basis points for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by a shift in portfolio mix as higher yielding originations replace the maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers. Our portfolio yield for consumer automotive loans including the effects of derivative financial instruments designated as hedges was 2 basis points higher than our portfolio yield for consumer automotive loans excluding the effects of derivative financial instruments designated as hedges for the three months ended March 31, 2026. This is attributable to the execution of hedging strategies that are used to mitigate interest rate risks. The effects of derivative financial instruments designated as hedges are included within Corporate and Other. Refer to Note 18 to the Condensed Consolidated Financial Statements for further discussion.
Current wording
During the three months and six months ended June 30, 2026, our portfolio yield for consumer automotive loans excluding the impact of hedging activities, increased 5 and 10 basis points, respectively, as compared to the same periods in 2025. The increases for the three months and six months ended June 30, 2026, were primarily driven by a shift in portfolio mix as higher yielding originations replace the maturity of lower yielding assets resulting from pricing actions due to our deliberate focus on maximizing risk-adjusted returns across our credit tiers. We utilize hedging strategies in order to mitigate interest rate risks, the effects of derivative financial instruments designated as hedges are included within Corporate and Other. Refer to Note 18 to the Condensed Consolidated Financial Statements for further discussion.
Previous wording
Our portfolio yield for commercial wholesale floorplan loans excluding the impact of hedging activities decreased 84 basis points for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily due to lower benchmark interest rates, as our commercial automotive loans are generally variable-rate.
Current wording
During the three months and six months ended June 30, 2026, our portfolio yield for commercial wholesale floorplan loans, excluding the impact of hedging activities decreased 100 and 92 basis points, respectively, as compared to the same periods in 2025. The decreases were primarily due to lower benchmark interest rates, as our commercial automotive loans are generally variable-rate.
Previous wording
Our portfolio yield for investment in operating leases, net, including losses on the sale of off-lease vehicles, increased 4 basis points for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was due to lower net remarketing losses, which decreased $9 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. Additionally, our operating lease portfolio mix has shifted towards contracts with a residual value guarantee, and towards a more diverse mix of OEMs for contracts without a residual value guarantee, which may reduce volatility in remarketing gains and losses in future years. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Current wording
Our portfolio yield for investment in operating leases, net, including gains and losses on the sale of off-lease vehicles, decreased 127 and 62 basis points to 5.61% and 5.67% for the three months and six months ended June 30, 2026, respectively, as compared to 6.88% and 6.29% for the three months and six months ended June 30, 2025. The decreases were primarily due to higher depreciation expense. In the near term, our ability to optimize remarketing gains may be limited due to used vehicle market pressures on certain plug-in hybrid vehicles following the elimination of federal electric-vehicle tax credits for both new and used vehicles, vehicle recalls, and increased OEM marketing incentives on new vehicles. In future periods, the volatility of remarketing gains and losses may decline as a result of the shift in our operating lease portfolio towards contracts with residual value guarantees. Additionally, as we have diversified the mix of OEMs within our operating lease portfolio, we may also see less volatility associated with those contracts without residual value guarantees. Refer to the Operating Lease Residual Risk Management section of this MD&A for further discussion.
Previous wording
Retail loan originations with a term of 76 months or more represented 22% of total retail loan originations for the three months ended March 31, 2026, compared to 23% for the three months ended March 31, 2025. Substantially all the loans originated with a term of 76 months or more during both the three months ended March 31, 2026, and 2025, were considered to be prime and in credit tiers S, A, or B. Our underwriting processes are designed to consider various deal structure variables—such as payment-to-income, LTV, debt-to-income, and FICO® score—that compensate for longer loan terms and mitigate underwriting risk.
Current wording
Retail loan originations with a term of 76 months or more represented 24% and 23% of total retail loan originations for the three months and six months ended June 30, 2026, respectively, compared to 23% for both the three months and six months ended June 30, 2025. Substantially all the loans originated with a term of 76 months or more during both the three months and six months ended June 30, 2026, and 2025, were considered to be prime and in credit tiers S, A, or B. Our underwriting processes are designed to consider various deal structure variables—such as payment-to-income, LTV, debt-to-income, and FICO® score—that compensate for longer loan terms and mitigate layered risk.
Previous wording
During the three months ended March 31, 2026, approximately 81% of our used retail loan originations were for vehicles with a model year of 2020 or newer. According to the Bureau of Transportation Statistics, the average age of light vehicles in operation in the United States during 2025 was approximately 13 years. Substantially all used retail loan originations with a term of 76 months or more during the three months ended March 31, 2026, were for vehicles with a model year of 2020 or newer.
Current wording
During the three months ended June 30, 2026, approximately 82% of our used retail loan originations were for vehicles with a model year of 2020 or newer. According to the Bureau of Transportation Statistics, the average age of light vehicles in operation in the United States during 2025 was approximately 13 years. Substantially all used retail loan originations with a term of 76 months or more during the three months ended June 30, 2026, were for vehicles with a model year of 2020 or newer.
Previous wording
(a)Includes CSG originations of $1.2 billion and $891 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(a)Includes CSG originations of $1.2 billion and $915 million for the three months ended June 30, 2026, and 2025, respectively.
Previous wording
Total consumer automotive loan and operating lease originations increased $1.3 billion for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by strategic partnerships, strong dealer engagement, and growth in application volume from our dealer network.
Current wording
Total consumer automotive loan and operating lease originations increased $2.3 billion and $3.6 billion for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily driven by strategic partnerships, strong dealer engagement, and growth in application volume from our dealer network.
Previous wording
The following table presents the percentage of retail loan and operating lease originations and purchases, in dollars, by FICO® Score and product type. We define prime consumer automotive loans primarily as those loans with a FICO® Score at origination of 620 or greater.
Current wording
The following tables present the percentage of retail loan and operating lease originations and purchases, in dollars, by FICO® Score and product type. We define prime consumer automotive loans primarily as those loans with a FICO® Score at origination of 620 or greater.
Previous wording
Originations with a FICO® Score of less than 620 (considered nonprime) represented 12% of total consumer loan and operating lease originations for the three months ended March 31, 2026, compared to 8% for the three months ended March 31, 2025, reflecting our strategy to focus on maximizing risk-adjusted returns across our credit tiers. Consumer loans and operating leases with FICO® Scores of less than 540 represented 2% of total originations for the three months ended March 31, 2026, as compared to 1% for the three months ended March 31, 2025. Nonprime applications are subject to more stringent underwriting criteria (for example, maximum payment-to-income ratio, maximum debt-to-income ratio, and maximum amount financed), and our nonprime loan portfolio generally does not include any loans with a term of 76 months or more. The carrying value of our held-for-investment, nonprime consumer automotive loans before allowance for loan losses was $9.1 billion and $8.6 billion at March 31, 2026, and December 31, 2025, respectively, or approximately 10.5% and 10.1% of our total consumer automotive loans at March 31, 2026, and December 31, 2025, respectively. For discussion of our credit-risk-management practices and performance, refer to the section below titled Risk Management.
Current wording
Originations with a FICO® Score of less than 620 (considered nonprime) represented 11% of total consumer loan and operating lease originations for both the three months and six months ended June 30, 2026, compared to 9% and 8% for the three months and six months ended June 30, 2025, respectively, reflecting our strategy to focus on maximizing risk-adjusted returns across our credit tiers. Consumer loans and operating leases with FICO® Scores of less than 540 represented 2% of total originations for each of the three months and six months ended June 30, 2026, respectively, as compared to 1% for each the three months and six months ended June 30, 2025. Nonprime applications are subject to more stringent underwriting criteria (for example, maximum payment-to-income ratio, maximum debt-to-income ratio, and maximum amount financed), and our nonprime loan portfolio generally does not include any loans with a term of 76 months or more. The carrying value of our held-for-investment, nonprime consumer automotive loans before allowance for loan losses was $9.6 billion and $8.6 billion at June 30, 2026, and December 31, 2025, respectively, or approximately 10.7% and 10.1% of our total consumer automotive loans at June 30, 2026, and December 31, 2025, respectively. For discussion of our credit-risk-management practices and performance, refer to the section below titled Risk Management.
Previous wording
During the fourth quarter of 2025, we amended our agreement with Carvana, a leading e-commerce platform for buying and selling used vehicles. Specifically, we increased our committed facility by $2.0 billion to a maximum of $6.0 billion to support our continued efforts to optimize risk-adjusted returns. This commitment is effective for 364 days. As part of the agreement, we are committed to purchase finance receivables, related to both new and used vehicles, on a periodic basis within prescribed eligibility requirements and risk appetite, consistent with purchase practices in prior years. All the finance receivables purchased through this channel are included in non-OEM-franchised dealers and automotive retailers in our consumer origination metrics. While different vintages and credit tiers exhibit varying performance, collectively to date, finance receivables purchased from Carvana have generally exhibited consistent delinquency and loss performance compared to loans with similar credit characteristics acquired through our indirect dealer channel. Consumer finance receivables and loans sourced from Carvana represented 11.1% and 10.4% of our total consumer automotive finance receivables and loans as of March 31, 2026, and December 31, 2025, respectively. Loan purchases from Carvana were 14% of our total consumer automotive financing originations during the three months ended March 31, 2026, compared to 7% during the three months ended March 31, 2025.
Current wording
During the fourth quarter of 2025, we amended our agreement with Carvana, a leading e-commerce platform focused on buying and selling used vehicles. Specifically, we increased our committed facility by $2.0 billion to a maximum of $6.0 billion to support our continued efforts to optimize risk-adjusted returns. This commitment is effective for 364 days. As part of the agreement, we are committed to purchase finance receivables, related to both new and used vehicles, on a periodic basis within prescribed eligibility requirements and risk appetite, consistent with purchase practices in prior years. All the finance receivables purchased through this channel are included in non-OEM-franchised dealers and automotive retailers in our consumer origination metrics. While different vintages and credit tiers exhibit varying performance, collectively to date, finance receivables purchased from Carvana have generally exhibited consistent delinquency and loss performance compared to loans with similar credit characteristics acquired through our indirect dealer channel. Consumer finance receivables and loans sourced from Carvana represented 12.1% and 10.4% of our total consumer automotive finance receivables and loans as of June 30, 2026, and December 31, 2025, respectively. Loan purchases from Carvana were 16% and 15% of our total consumer automotive financing originations during the three months and six months ended June 30, 2026, respectively, as compared to 11% and 9% for the same periods in 2025.
Previous wording
Average commercial wholesale financing receivables outstanding increased $142 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily due to an increase within the Stellantis dealer channel.
Current wording
Average commercial wholesale financing receivables outstanding increased $2.3 billion and $1.2 billion during the three months and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to an increase within the Stellantis dealer channel.
Previous wording
Carvana's commercial line of credit totals $1.5 billion, with a scheduled maturity in the second quarter of 2027. The line of credit represents a commitment to fund Carvana’s wholesale floorplan financing of used vehicles and is consistent in form and structure with our other wholesale floorplan financing arrangements. This includes the line of credit being fully collateralized to mitigate counterparty credit risk in the event of a default. At March 31, 2026, Carvana’s gross wholesale floorplan assets outstanding balance was $79 million.
Current wording
Carvana's commercial line of credit totals $1.5 billion, with a scheduled maturity in the second quarter of 2027. The line of credit represents a commitment to fund Carvana’s wholesale floorplan financing of used vehicles and is consistent in form and structure with our other wholesale floorplan financing arrangements. This includes the line of credit being fully collateralized to mitigate counterparty credit risk in the event of a default. At June 30, 2026, Carvana’s gross wholesale floorplan assets outstanding balance was $126 million.
Previous wording
We also provide other forms of commercial financing for the automotive industry including automotive dealer term and revolving loans and automotive fleet financing. Automotive dealer term and revolving loans are loans that we make to dealers to finance other aspects of the dealership business, including acquisitions. These loans are usually secured by real estate or other dealership assets and are typically personally guaranteed by the individual owners of the dealership. Additionally, these loans generally include cross-collateral and cross-default provisions. Automotive fleet financing credit lines may be obtained by dealers, their affiliates, and other independent companies that are used to purchase vehicles, which they lease or rent to others. The average balance of other commercial automotive loans increased $1.1 billion to $7.5 billion for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.
Current wording
We also provide other forms of commercial financing for the automotive industry including automotive dealer term and revolving loans and automotive fleet financing. Automotive dealer term and revolving loans are loans that we make to dealers to finance other aspects of the dealership business, including acquisitions. These loans are usually secured by real estate or other dealership assets and are typically personally guaranteed by the individual owners of the dealership. Additionally, these loans generally include cross-collateral and cross-default provisions. Automotive fleet financing credit lines may be obtained by dealers, their affiliates, and other independent companies that are used to purchase vehicles, which they lease or rent to others. The average balance of other commercial automotive loans increased $1.6 billion and $1.4 billion for the three months and six months ended June 30, 2026, respectively, compared to the same periods in 2025, to an average $7.9 billion and $7.7 billion for the three months and six months ended June 30, 2026.
Previous wording
(a)Includes interest expense of $13 million and $14 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(a)Includes interest expense of $13 million and $26 million for the three months and six months ended June 30, 2026, respectively, and $15 million and $29 million for the three months and six months ended June 30, 2025.
Previous wording
(b)Includes net unrealized losses on equity securities of $59 million and $15 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
(b)Includes net unrealized gains on equity securities of $29 million and net unrealized losses of $30 million for the three months and six months ended June 30, 2026, respectively, and net unrealized gains of $30 million and $15 million for the three months and six months ended June 30, 2025.
Showing the first 40 of 114 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
(a)Includes automotive manufacturers with a direct-to-consumer model.
Current report — wording carried from elsewhere
(a)Unscored are primarily CSG contracts with business entities that have no FICO® Score.
Current report — wording carried from elsewhere
For more information on our risk management process, refer to the Risk Management MD&A section of our 2025 Annual Report on Form 10-K.
Current report — wording carried from elsewhere
(a)Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, we issued $550 million of credit-linked notes. The proceeds from this issuance constitute prefunded credit protection for mezzanine tranches of the reference portfolio. The portion of the proceeds that resulted in secured debt are recognized as restricted cash and cash equivalents in other assets on our Condensed Consolidated Balance Sheet. These transactions are structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure.
Current report — wording carried from elsewhere
(a)Average balances are calculated using an average daily balance methodology. Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for further information regarding our basis of presentation and significant accounting policies, which are in accordance with U.S. GAAP.
Current report — wording carried from elsewhere
(b)Includes restricted interest-bearing cash and cash equivalents recorded in other assets on the Condensed Consolidated Balance Sheet.
Current report — wording carried from elsewhere
(d)Includes the effects of derivative financial instruments designated as hedges. Refer to Note 18 to the Condensed Consolidated Financial Statements for further information about the effects of our hedging activities.
Current report — wording carried from elsewhere
(e)Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.
Current report — wording carried from elsewhere
(i)Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
Current report — wording carried from elsewhere
(j)Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The provision for credit losses increased $34 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by portfolio growth within our consumer automotive portfolio, partially offset by lower net charge-offs within our consumer automotive portfolio. Refer to the Risk Management section of this MD&A for further discussion on our provision for credit losses.
Previous report — wording carried elsewhere
(a)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.
Previous report — wording carried elsewhere
(c)Coverage percentages are based on the allowance for loan losses related to finance receivables and loans excluding those loans held at fair value as a percentage of the amortized cost basis.