The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Moshe Orenbuch - Cowen and Company LLC - Analyst
: Great, thanks and congrats, David, Steve, and Scott.
Maybe to kind of just start a little bit on the credit side of things, the comments that David both you David and Steve made about the consumer
portfolio, could you maybe flesh that out a little bit more like what is it that you know now gives you the confidence that whatever issues you saw
at the beginning of the quarter are not persistent and how does that reflect itself in the originations, kind of growth in the back half of 2025.
Question: Moshe Orenbuch - Cowen and Company LLC - Analyst
: Got it. And maybe just to talk for a moment about the small business, normally you do have a seasonal, a lower level of originations, in the second
quarter from the first and you talked about the strong environment maybe again, could you expand on what you saw in there that allowed you
kind of to do that and how do you sort of think about the level of, certainty or uncertainty, I guess, in the minds of your customers.
Question: Moshe Orenbuch - Cowen and Company LLC - Analyst
: Thank you so much.
Question: Bill Ryan - Seaport Research Partners - Analyst
: Good afternoon. I'd also like to express my congratulations to everyone.
A couple of questions. First, on the marketing, it obviously came in a bit better than expectations as a percentage of revenues as you discussed.
Also, look good as a percentage of originations. Could you maybe give us some idea? Was that related to channels, repeat customers, is it the small
business just being more efficient if you can maybe provide some insight on that.
Question: Bill Ryan - Seaport Research Partners - Analyst
: Okay, and just a quick follow up on the consumer portfolio.
The yield was down a little bit quarter to quarter. I think it's about 250 basis points. Was that related to some of the credit adjustments that were
made at the beginning of the quarter? And do you kind of expect that maybe to bump back up over the next couple quarters to trend line?
Question: Bill Ryan - Seaport Research Partners - Analyst
: Okay, thank you.
Question: John Hecht - Jefferies LLC - Analyst
: Hey. Hi guys. Thanks very much and congratulations to all of you guys. This is exciting for the company and wish you all the best in the new roles
and look forward to working with you Scott. Just a couple questions, most of mine, actually just were recently asked and answered, but thinking
about marketing channels that you've been using, any change of that I know you've been more active on the small business stuff within, on TV,
but anything to think about productivity on marketing channels and anything you're learning over time, especially as AI is being developed?
Question: John Hecht - Jefferies LLC - Analyst
: Okay, and then, I mean thinking, I mean this is sort of a mishmash of questions, but like you've got private credits influencing the capital markets
or funding, ability within consumer finance, spreads are at all time lows, so obviously the liquidity and the funding component of the market is
very constructive. And interest rates have come down a little bit more. So Steve, just thinking about, that set of opportunities for you and your
balance sheet positioning, how does that change or does that impact kind of the way you think about, the next several quarters in terms of funding
and balance sheet management?
Question: John Hecht - Jefferies LLC - Analyst
: Great, thank you guys very much.
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