Sezzle Inc.

Previous wording

We earn fees from our merchants predominately based on a percentage of the GMV value plus a fixed fee per transaction, collectively called a “merchant processing fee.” We generally pay our merchants the full transaction value upfront, net of the merchant processing fee owed to us, and assume all costs associated with consumer payment processing, fraud, and payment default. We also earn income from partners, including interchange fees through our virtual card solution, promotional incentives with third parties, and marketing revenue earned from affiliates. Our merchants have access to a toolkit we provide that can assist in the growth of their businesses. This toolkit includes marketing placements, co-branded marketing, and exclusive promotions for consumers using Sezzle.

Current wording

We earn fees from our merchants predominately based on a percentage of the merchant-specific volume plus a fixed fee per transaction, collectively called a “merchant processing fee.” We generally pay our merchants the full transaction value upfront, net of the merchant processing fee owed to us, and assume all costs associated with consumer payment processing, fraud, and payment default. We also earn income from partners, including interchange fees through our virtual card solution, promotional incentives with third parties, and marketing revenue earned from affiliates. Our merchants have access to a toolkit we provide that can assist in the growth of their businesses. This toolkit includes marketing placements, co-branded marketing, and exclusive promotions for consumers using Sezzle.

Previous wording

In 2025, we launched price comparison, the Earn tab, and Sezzle Balance. Price comparison is a feature in our product marketplace that provides consumers the ability to compare the price of a product across a variety of different merchants and receive notifications if the price drops. The Earn tab allows consumers the ability to save money through coupons, discounts, and playing games. Sezzle Balance allows consumers to preload funds into a digital wallet for a simplified repayment process.

Current wording

In 2025, we launched price comparison, the Rewards tab, and Sezzle Balance. Price comparison is a feature in our product marketplace that provides consumers the ability to compare the price of a product across a variety of different merchants and receive notifications if the price drops. The Rewards tab allows consumers the ability to save money through coupons, discounts, and playing games. Sezzle Balance allows consumers to preload funds into a digital wallet for a simplified repayment process.

Previous wording

In 2026, we launched Sezzle Mobile and SezzleCash. Sezzle Mobile is a mobile phone plan embedded directly within the Sezzle app that offers unlimited talk, text, and 5G data on AT&T’s network, to our consumers. SezzleCash allows consumers to borrow funds and pay back the amount over time, plus a service fee. We also partnered with a new long-term lending provider to expand and further integrate interest-bearing monthly fixed-rate installment-loan products into the Sezzle Platform.

Current wording

In 2026, we launched Sezzle Mobile, SezzleCash, and Sezzle Send. Sezzle Mobile is a mobile phone plan embedded directly within the Sezzle app that offers unlimited talk, text, and 5G data on AT&T’s network, to our consumers. SezzleCash allows consumers to borrow funds and pay back the amount over time, plus a service fee. Sezzle Send is a peer-to-peer money transfer product available to all Sezzle consumers, enabling transfers to any recipient by phone number. Senders can fund a transfer in full or over five installments using Pay-in-5. We also partnered with a new long-term lending provider to expand and further integrate interest-bearing monthly fixed-rate installment-loan products into the Sezzle Platform.

Previous wording

Our business depends on consumers transacting with merchants, which is affected by changes in general economic conditions. For example, the retail sector is affected by macroeconomic conditions such as unemployment, interest rates, consumer confidence, economic recessions, public health crises, or extended periods of uncertainty or volatility—all of which may influence consumer spending, and suppliers’ and retailers’ focus and investment in outsourcing solutions. This may subsequently impact our ability to generate income. Additionally, in weaker economic environments, consumers may have less disposable income to spend, and may be less likely to purchase products by utilizing our services. This could also cause our credit losses to increase due to consumers’ failure to repay the loans originated on the Sezzle Platform. Our industry is further impacted by numerous consumer finance and protection regulations, both domestic and international, and the prospects of new regulations, including the cost to comply with such regulations, that have an ongoing impact on our results of operations and financial performance.

Current wording

Our business depends on consumers transacting with merchants, which is affected by changes in general economic conditions. For example, the retail sector is affected by macroeconomic conditions such as unemployment, interest rates, consumer confidence, economic recessions, public health crises, or extended periods of uncertainty or volatility—all of which may influence consumer spending, and suppliers’ and retailers’ focus and investment in outsourcing solutions. This may subsequently impact our ability to generate income. Additionally, in weaker economic environments, consumers may have less disposable income to spend, and may be less likely to purchase products by utilizing our services. This could also cause our credit losses to increase due to consumers’ failure to repay the loans originated on the Sezzle Platform. Our industry is further impacted by numerous consumer finance and protection regulations, both domestic and international, and the prospects of new regulations, including the cost to comply with such regulations, that have an ongoing impact on our results of operations and financial performance. In addition, the political and policy goals of elected and appointed officials may change over time, including as a result of the U.S. midterm elections in November 2026, which could affect the legislative, rulemaking, supervisory, and enforcement priorities applicable to consumer financial services, and the federal regulatory approach that has prevailed since 2025 may not continue or may be reversed, while state regulators and attorneys general have increased, and may continue to increase, their focus on BNPL providers.

Previous wording

We experience seasonality as a result of the spending patterns of our consumers. Total revenue and GMV in the fourth quarter have historically been strongest for us, in line with consumers generally spending more during the holiday shopping season. These seasonal volumes have typically been accompanied by increased charge-offs when compared to the prior three quarters. Increased charge-offs accompanying higher seasonal volumes typically result in an increase in the provision for credit losses on an absolute basis and as a percentage of GMV.

Current wording

We experience seasonality as a result of the spending patterns of our consumers. Total revenue and TTV in the fourth quarter have historically been strongest for us, in line with consumers generally spending more during the holiday shopping season. These seasonal volumes have typically been accompanied by increased charge-offs when compared to the prior three quarters. Increased charge-offs accompanying higher seasonal volumes typically result in an increase in the provision for credit losses on an absolute basis and as a percentage of TTV.

Previous wording

GMV is defined as the total value of sales made by merchants based on the purchase price of each confirmed sale where a consumer has selected the Sezzle Platform as the applicable payment option. GMV does not represent revenue earned by us, is neither a component of our income, nor included within our financial results prepared in accordance with U.S. GAAP. However, we believe that GMV is a useful operating metric to both us and our investors in assessing the volume of transactions that take place on the Sezzle Platform, including our Sezzle Premium and Sezzle Anywhere products, which is an indicator of the utilization and strength of the Sezzle Platform.

Current wording

TTV is defined as the total dollar amount of transactions on the Sezzle Platform during the applicable period. TTV does not represent revenue earned by us, is neither a component of our income, nor included within our financial results prepared in accordance with U.S. GAAP. However, we believe that TTV is a useful operating metric to both us and our investors in assessing the volume of transactions that take place on the Sezzle Platform, including our Sezzle Premium and Sezzle Anywhere products, which is an indicator of the utilization and strength of the Sezzle Platform.

Previous wording

The increase in GMV was driven by increased usage of our Sezzle Anywhere and Sezzle Premium subscription products.

Current wording

The increase in TTV was driven by increased usage of our Sezzle Anywhere and Sezzle Premium subscription products, as well as the launch of SezzleCash.

Previous wording

Active Consumers is defined as unique consumers who have placed an order with us within the last twelve months. Monthly On-Demand Users and Subscribers (or “MODS”) is defined as unique consumers who have placed at least one On-Demand order during the month ended June 30, 2026, plus consumers with an active subscription for either Sezzle Premium or Sezzle Anywhere as of the end of the period.

Current wording

Active Consumers is defined as unique consumers who had at least one transaction through the Sezzle platform in the last twelve months. Active Subscribers is defined as unique consumers with an active subscription for either Sezzle Premium or Sezzle Anywhere as of the end of the period. The increase in Active Consumers and Active Subscribers is attributed to increased marketing and advertising initiatives, as well as new product releases.

Previous wording

Lending-based income relates to net origination fees on financing receivables we originate, premiums and discounts on financing receivables we purchase, and delinquency fees on financing receivables we hold. This is primarily comprised of merchant processing fees on orders that result in a financing receivable, delinquency fees, and other ancillary consumer fees, such as fees to reschedule installment due dates and nonrefundable fees assessed for using Sezzle On-Demand. Merchant processing fees are based on the GMV passing through our platform and are predominately based on a percentage of the GMV, plus a fixed fee per transaction. Lending-based income, other than delinquency fees, is initially recorded as a reduction to notes receivable, net, within the consolidated balance sheets. Such income is subsequently recognized over the average duration of the related note receivable using the interest method. Delinquency fees include fees assessed to consumers who fail to make a timely principal payment or their payment method fails when attempting to make an installment payment, and are recognized at the time the fee is charged to the consumer, to the extent they are reasonably collectible.

Current wording

Lending-based income relates to net origination fees on financing receivables we originate, premiums and discounts on financing receivables we purchase, and delinquency fees on financing receivables we hold. This is primarily comprised of merchant processing fees on orders that result in a financing receivable, delinquency fees, and other ancillary consumer fees, such as fees to reschedule installment due dates and nonrefundable fees assessed for using Sezzle On-Demand. Merchant processing fees are based on a percentage of the merchant-specific volume passing through our platform plus a fixed fee per transaction. Lending-based income, other than delinquency fees, is initially recorded as a reduction to notes receivable, net, within the consolidated balance sheets. Such income is subsequently recognized over the average duration of the related note receivable using the interest method. Delinquency fees include fees assessed to consumers who fail to make a timely principal payment or their payment method fails when attempting to make an installment payment, and are recognized at the time the fee is charged to the consumer, to the extent they are reasonably collectible.

Previous wording

Lending-based income primarily increased as a result of consumer-derived income, which totaled $54.1 million and $34.0 million for the three months ended June 30, 2026 and 2025, respectively, and $104.5 million and $67.7 million for the six months ended June 30, 2026 and 2025, respectively. The increase in consumer-derived income when comparing the three months ended June 30, 2026 and 2025 was driven by both a higher number of consumer fees charged, contributing to approximately $13.4 million of the increase, and higher fee prices, contributing to approximately $6.6 million of the increase. The increase in consumer-derived income when comparing the six months ended June 30, 2026 and 2025 was also driven by both a higher number of consumer fees charged, contributing to approximately $23.2 million of the increase, and higher fee prices, contributing to approximately $13.5 million of the increase. Lending-based income also included merchant- and partner-derived income of $10.9 million and $12.7 million for the three months ended June 30, 2026 and 2025, respectively, and $21.0 million and $26.9 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Lending-based income primarily increased as a result of consumer-derived income, which totaled $62.1 million and $46.6 million for the three months ended September 30, 2026 and 2025, respectively, and $166.6 million and $114.3 million for the nine months ended September 30, 2026 and 2025, respectively. The increase in consumer-derived income when comparing the three months ended September 30, 2026 and 2025 was driven by the increase in TTV, resulting in a higher number of consumer fees charged. The increase in consumer-derived income when comparing the nine months ended September 30, 2026 and 2025 was driven by the increase in TTV, resulting in a higher number of consumer fees charged. This contributed to approximately $37.4 million of the increase. In addition, higher fee prices contributed approximately $13.8 million to the increase. Lending-based income also included merchant- and partner-derived income of $11.5 million and $12.7 million for the three months ended September 30, 2026 and 2025, respectively, and $32.5 million and $39.6 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Revenue from contracts with customers included merchant- and partner-derived income of $28.6 million and $16.5 million for the three months ended June 30, 2026 and 2025, respectively, and $52.7 million and $30.5 million for the six months ended June 30, 2026 and 2025, respectively. The increase was a result of higher GMV on our virtual card products and promotional incentive revenue in the current period. Revenue from contracts with customers also increased as a result of consumer-derived revenue, which totaled $56.2 million and $35.5 million for the three months ended June 30, 2026 and 2025, respectively, and $106.9 million and $78.5 million for the six months ended June 30, 2026 and 2025, respectively. The increase in consumer-derived revenue when comparing the three months ended June 30, 2026 and 2025 was primarily driven by a greater number of consumers subscribed to Sezzle Premium and Sezzle Anywhere, contributing to approximately $13.1 million of the increase. The increase in consumer-derived revenue when comparing the six months ended June 30, 2026 and 2025 was also primarily driven by a greater number of consumers subscribed to Sezzle Premium and Sezzle Anywhere, contributing to approximately $22.9 million of the increase.

Current wording

Revenue from contracts with customers included merchant- and partner-derived income of $30.4 million and $20.9 million for the three months ended September 30, 2026 and 2025, respectively, and $83.1 million and $51.4 million for the nine months ended September 30, 2026 and 2025, respectively. The increase was a result of higher TTV on our virtual card products and promotional incentive revenue in the current period. Revenue from contracts with customers also increased as a result of consumer-derived revenue, which totaled $62.6 million and $36.6 million for the three months ended September 30, 2026 and 2025, respectively, and $169.5 million and $115.1 million for the nine months ended September 30, 2026 and 2025, respectively. The increase in consumer-derived revenue when comparing the three months ended September 30, 2026 and 2025 was primarily driven by a greater number of consumers subscribed to Sezzle Premium and Sezzle Anywhere, contributing to approximately $17.1 million of the increase. The increase in consumer-derived revenue when comparing the nine months ended September 30, 2026 and 2025 was also primarily driven by a greater number of consumers subscribed to Sezzle Premium and Sezzle Anywhere, contributing to approximately $40.0 million of the increase.

Previous wording

The increase in personnel was driven by overall growth in our workforce and an increase in profit-sharing incentive plan expenses during the current year. Recorded within personnel, equity based compensation totaled $2.1 million and $1.5 million for the three months ended June 30, 2026 and 2025, respectively, and $3.4 million and $2.8 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

The increase in personnel was driven by overall growth in our workforce, an increase in profit-sharing incentive plan expenses, and the issuance of additional equity-based compensation during the current year. Recorded within personnel, equity-based compensation totaled $2.9 million and $2.4 million for the three months ended September 30, 2026 and 2025, respectively, and $6.4 million and $5.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The increase in transaction expense was driven by higher payment processing costs as a result of a higher number of payments processed in the current year in line with GMV. Payment processing costs totaled $19.3 million and $13.3 million for the three months ended June 30, 2026 and 2025, respectively, and $36.8 million and $27.4 million for the six months ended June 30, 2026 and 2025, respectively. The rest of transaction expense was comprised of affiliate and partner fees, third-party fraud losses, consumer communication, and consumer and merchant support–related costs.

Current wording

The increase in transaction expense was driven by payment processing costs from a higher number of payments processed in the current year, in line with TTV. Payment processing costs include benefits of $3.7 million for the three months ended September 30, 2026, related to incentives earned through our payment network. Payment processing costs totaled $15.8 million and $16.4 million for the three months ended September 30, 2026 and 2025, respectively, and $52.6 million and $43.9 million for the nine months ended September 30, 2026 and 2025, respectively. The rest of transaction expense was comprised of affiliate and partner fees, third-party fraud losses, consumer communication, and consumer and merchant support–related costs.

Previous wording

The increase in expense was driven by higher utilization of cloud-based infrastructure and other third-party services to support the scaling of the Sezzle Platform as a result of higher GMV and our expanded suite of product offerings.

Current wording

The increase in expense was driven by higher utilization of cloud-based infrastructure and other third-party services to support the scaling of the Sezzle Platform as a result of higher TTV and our expanded suite of product offerings.

Previous wording

The increase in marketing, advertising, and tradeshow costs was from the continued expansion of initiatives to promote consumer acquisition, retention, and engagement, as well as a result of testing different levels of marketing effort to determine optimal strategies. We expect to realize the benefits of this marketing investment in future periods.

Current wording

The increase in marketing, advertising, and tradeshow costs was from the continued expansion of initiatives to promote consumer acquisition, retention, and engagement, including the issuance of Sezzle Spend and Sezzle Points to consumers. The increase was also a result of testing different levels of marketing effort to determine optimal strategies. We expect to realize the benefits of this marketing investment in future periods.

Previous wording

The increase was primarily from higher professional service fees related to the overall growth of the business, offset against lower operating costs associated with our loan origination partner funding virtual card transactions.

Current wording

The increase was primarily from higher professional service fees related to the overall growth of the business and investment in Company strategic projects, offset against lower operating costs associated with our loan origination partner funding virtual card transactions.

Previous wording

The increase in the provision for credit losses is generally consistent with the growth in GMV, with any deviations a result of changes in expected performance on the current year portfolio compared to the prior year. As a percentage of total revenue, the provision for credit losses was 20.4% and 20.9% for the three months ended June 30, 2026 and 2025, respectively, and 15.5% and 16.4% for the six months ended June 30, 2026 and 2025, respectively.

Current wording

The increase in the provision for credit losses is generally consistent with the growth in TTV, with any deviations a result of changes in expected performance on the current year portfolio compared to the prior year. As a percentage of total revenue, the provision for credit losses was 22.6% and 27.5% for the three months ended September 30, 2026 and 2025, respectively, and 18.1% and 20.5% for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

We expect that increases in GMV and revenue will likely result in higher absolute amounts of credit losses. Additionally, we expect changes in our underwriting strategy to affect the amount of credit losses as a percentage of total revenue. However, tightening or loosening our credit standards that apply to our consumers may impact both total revenue and credit losses to different extents, potentially causing changes in credit losses as a percentage of total revenue. Our underwriting strategy continues to evolve and, therefore, it is challenging to predict the effect changes in our underwriting would have on the amount of future credit losses as a percentage of total revenue.

Current wording

We expect that increases in TTV and revenue will likely result in higher absolute amounts of credit losses. Additionally, we expect changes in our underwriting strategy to affect the amount of credit losses as a percentage of total revenue. However, tightening or loosening our credit standards that apply to our consumers may impact both total revenue and credit losses to different extents, potentially causing changes in credit losses as a percentage of total revenue. Our underwriting strategy continues to evolve and, therefore, it is challenging to predict the effect changes in our underwriting would have on the amount of future credit losses as a percentage of total revenue.

Previous wording

Net interest expense decreased as a result of entering into a new line of credit agreement on May 7, 2026, which carries a lower interest rate than our previous line of credit, offset against higher outstanding borrowings during the three and six months ended June 30, 2026.

Current wording

Net interest expense decreased as a result of entering into a new line of credit agreement on May 7, 2026, which carries a lower interest rate than our previous line of credit.

Previous wording

Our effective income tax rate for the three months ended June 30, 2026 and 2025 was 21.2% and 15.5%, respectively. Our effective income tax rate for the six months ended June 30, 2026 and 2025 was 21.8% and 20.0%, respectively. Income tax expense includes $1.9 million and $3.1 million of excess tax benefits recorded on equity-based compensation for the three months ended June 30, 2026 and 2025, respectively, and $3.6 million and $4.0 million of excess tax benefits recorded on equity-based compensation for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Our effective income tax rate for the three months ended September 30, 2026 and 2025 was 22.1% and 15.7%, respectively. Our effective income tax rate for the nine months ended September 30, 2026 and 2025 was 21.9% and 18.8%, respectively. Income tax expense includes $2.0 million and $2.5 million of excess tax benefits recorded on equity-based compensation for the three months ended September 30, 2026 and 2025, respectively, and $5.6 million and $6.9 million of excess tax benefits recorded on equity-based compensation for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

For the six months ended June 30, 2026 and 2025, our net income was $92.1 million and $63.8 million, respectively. As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, restricted cash, the unused borrowing capacity on our line of credit, and certain cash flows from operations.

Current wording

For the nine months ended September 30, 2026 and 2025, our net income was $139.9 million and $90.4 million, respectively. As of September 30, 2026, our principal sources of liquidity were cash, cash equivalents, restricted cash, the unused borrowing capacity on our line of credit, and certain cash flows from operations.

Previous wording

As of June 30, 2026, we had cash and cash equivalents of $79.8 million, compared to $64.1 million as of December 31, 2025. Our cash and cash equivalents were held primarily for working capital requirements and the continued investment in our business. As of June 30, 2026 and December 31, 2025, we had restricted cash of $32.3 million and $38.5 million, respectively.

Current wording

As of September 30, 2026, we had cash and cash equivalents of $70.1 million, compared to $64.1 million as of December 31, 2025. Our cash and cash equivalents were held primarily for working capital requirements and the continued investment in our business. As of September 30, 2026 and December 31, 2025, we had restricted cash of $37.7 million and $38.5 million, respectively.

Previous wording

As of June 30, 2026 and December 31, 2025, we had working capital of $306.7 million and $262.1 million, respectively. The increase in working capital was primarily a result of the growth in cash and cash equivalents, as well as notes receivable, net, driven by higher GMV. Additionally, as of June 30, 2026 and December 31, 2025 we had an unused borrowing capacity on our line of credit of $126.3 million and $73.5 million, respectively.

Current wording

As of September 30, 2026 and December 31, 2025, we had working capital of $326.2 million and $262.1 million, respectively. The increase in working capital was primarily a result of the growth in cash and cash equivalents, as well as notes receivable, net, driven by higher TTV. Additionally, as of September 30, 2026 and December 31, 2025 we had an unused borrowing capacity on our line of credit of $169.3 million and $73.5 million, respectively.

Previous wording

During the six months ended June 30, 2026, net cash provided from operating activities totaled $141.2 million, driven by our $92.1 million net income adjusted for $68.1 million of non-cash adjustments such as credit losses, equity based compensation, deferred income taxes, and depreciation and amortization, offset against cash outflows of $18.9 million from changes in our operating assets and liabilities. Our cash outflows from changes in our operating assets and liabilities were driven by a $31.1 million increase in other assets related to the timing of payments to taxing authorities and vendors, as well as higher delinquency fees assessed in the current period not yet collected. Offset against this was a $9.3 million increase in other liabilities, driven by an increase in collections of consumer down payments on unpurchased originating partner receivables. During the six months ended June 30, 2026, cash payments for personnel-related expenses totaled $30.1 million, cash payments for processing costs totaled $36.2 million, cash interest payments totaled $7.7 million, and cash paid for income taxes totaled $35.9 million.

Current wording

During the nine months ended September 30, 2026, net cash provided from operating activities totaled $227.9 million, driven by our $139.9 million net income adjusted for $89.7 million of non-cash adjustments such as credit losses, equity based compensation, deferred income taxes, and depreciation and amortization, offset against cash outflows of $1.7 million from changes in our operating assets and liabilities. Our cash outflows from changes in our operating assets and liabilities were driven by a $12.8 million increase in other assets related to the timing of payments to taxing authorities, the timing of receipts from merchants and vendors, as well as higher delinquency fees assessed in the current period not yet collected. Offset against this was a $5.7 million increase in other liabilities, driven by timing of payments to vendors and an increase in collections of consumer down payments on unpurchased originating partner receivables. During the nine months ended September 30, 2026, cash payments for personnel-related expenses totaled $42.5 million, cash payments for processing costs totaled $51.1 million, cash interest payments totaled $11.8 million, and cash paid for income taxes totaled $47.3 million.

Previous wording

During the six months ended June 30, 2025, net cash provided from operating activities totaled $75.5 million, driven by our $63.8 million net income adjusted for $47.3 million of non-cash adjustments such as credit losses, equity based compensation, deferred income taxes, and depreciation and amortization, offset against cash outflows of $35.5 million from changes in our operating assets and liabilities. Our cash outflows from changes in our operating assets and liabilities were driven by a $20.5 million increase in other assets related to the timing of payments to taxing authorities and vendors, as well as higher delinquency fees assessed in the current period not yet collected. A $8.9 million decrease in merchant accounts payable related to the timing of payments to merchants and a $4.6 million decrease in other payables related to the timing of payments to vendors and taxing authorities also contributed to our cash outflows from operating activities. During the six months ended June 30, 2025, cash payments for personnel-related expenses totaled $29.7 million, cash payments for processing costs totaled $31.2 million, cash interest payments totaled $7.0 million, and cash paid for income taxes totaled $25.2 million.

Current wording

During the nine months ended September 30, 2025, net cash provided from operating activities totaled $139.3 million, driven by our $90.4 million net income adjusted for $74.1 million of non-cash adjustments such as credit losses, equity based compensation, deferred income taxes, and depreciation and amortization, offset against cash outflows of $25.3 million from changes in our operating assets and liabilities. Our cash outflows from changes in our operating assets and liabilities were driven by a $15.1 million increase in other assets related to the timing of payments to taxing authorities and vendors, as well as higher delinquency fees assessed in the current period not yet collected. A $11.4 million decrease in merchant accounts payable related to the timing of payments to merchants and a $1.1 million decrease in other payables related to the timing of payments to vendors and taxing authorities also contributed to our cash outflows from operating activities. During the nine months ended September 30, 2025, cash payments for personnel-related expenses totaled $40.7 million, cash payments for processing costs totaled $47.7 million, cash interest payments totaled $11.2 million, and cash paid for income taxes totaled $25.3 million.

Previous wording

Net cash used for investing activities was $80.3 million and $54.3 million for the six months ended June 30, 2026 and 2025, respectively. Cash outflows for investing activities were from purchases and originations of notes receivable, net of repayments; purchasing computer equipment; and payments of salaries to employees who create capitalized internal-use software.

Current wording

Net cash used for investing activities was $145.6 million and $85.8 million for the nine months ended September 30, 2026 and 2025, respectively. Cash outflows for investing activities were from purchases and originations of notes receivable, net of repayments; purchasing computer equipment; and payments of salaries to employees who create capitalized internal-use software.

Previous wording

Our net cash used for financing activities during the six months ended June 30, 2026 was primarily driven by repurchases of common stock totaling $32.8 million, net payments to our line of credit totaling $17.8 million, and payment of debt issuance costs totaling $1.1 million related to our new line of credit. Repurchases of common stock made under our stock repurchase plan totaled $28.0 million, with the remaining repurchases representing withheld shares of common stock from employees to cover minimum statutory withholding tax obligations owed for vested restricted stock units issued under our equity incentive plans. Offset against these cash outflows were proceeds from stock option exercises totaling $0.6 million.

Current wording

Our net cash used for financing activities during the nine months ended September 30, 2026 was primarily driven by repurchases of common stock totaling $39.4 million, net payments to our line of credit totaling $37.3 million, and payment of debt issuance costs totaling $1.2 million related to our new line of credit. Repurchases of common stock made under our stock repurchase plan totaled $28.0 million, with the remaining repurchases representing withheld shares of common stock from employees to cover minimum statutory withholding tax obligations owed for vested restricted stock units issued under our equity incentive plans. Offset against these cash outflows were proceeds from stock option exercises totaling $1.1 million.

Previous wording

Our net cash used for financing activities during the six months ended June 30, 2025 was comprised of repurchases of common stock totaling $30.7 million, offset against net proceeds from our line of credit totaling $26.3 million and proceeds from stock option exercises totaling $3.6 million. Repurchases of common stock were made under our stock repurchase plan totaled $23.5 million, with the remaining repurchases representing withheld shares of common stock from employees to cover minimum statutory withholding tax obligations owed for vesting restricted stock units issued under our equity incentive plans.

Current wording

Our net cash used for financing activities during the nine months ended September 30, 2025 was comprised of repurchases of common stock totaling $34.6 million, offset against net proceeds from our line of credit totaling $13.0 million and proceeds from stock option exercises totaling $3.7 million. Repurchases of common stock were made under our stock repurchase plan totaled $23.5 million, with the remaining repurchases representing withheld shares of common stock from employees to cover minimum statutory withholding tax obligations owed for vesting restricted stock units issued under our equity incentive plans.

Previous wording

Refer to Note 8. Commitments and Contingencies on the accompanying Notes to the Consolidated Financial Statements for discussion about our direct obligation to purchase loans from our originating partner.

Current wording

Refer to Note 8. Commitments and Contingencies on the accompanying Notes to the Consolidated Financial Statements for discussion about our direct obligation to purchase loans from our originating partner and loss contingencies.