v3.25.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has evaluated how it is organized and managed and has identified one operating segment. During the year ended December 31, 2024, the Company’s chief operating decision maker was the Chief Executive Officer and Interim Chief Financial Officer (the "CODM"). The CODM manages the business as a multi-service provider of lending enablement and risk analytics to automotive lenders, coupled with real-time underwriting of loan default insurance and claim administration services. The CODM reviews financial information including operating results and assets on a consolidated basis, accompanied by disaggregated information about the Company’s revenue. For information about how the Company derives revenue, as well as the Company’s accounting policies, refer to Note 2—Summary of Significant Accounting and Reporting Policies. All of the Company’s operations and assets are in the U.S., and all of its revenues are attributable to U.S. customers. 
The CODM uses multiple measures of performance including consolidated net income to assess performance, evaluate cost optimization, and allocate financial, capital and personnel resources. These measures are used in the annual operating plan and forecasting process as well as ongoing decisions driven by the monthly reviews of the plan versus actual results. The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets.
The following table sets forth significant expense categories and other specified amounts included in consolidated net income that are reviewed by the CODM, or are otherwise regularly provided to the CODM, for the years ended December 31, 2024, 2023 and 2022.
Year Ended December 31,
202420232022
(in thousands)
Revenue
Program fees
$57,040 $64,092 $80,611 
Profit share
(43,123)43,301 90,056 
Claims administration and other service fees
10,107 10,067 8,927 
Total revenue
24,024 117,460 179,594 
Cost of services
Employee compensation and benefits
8,371 7,520 4,102 
Share-based compensation
624 684 339 
Depreciation and amortization604 77 — 
Other cost of services(1)
14,256 14,001 15,527 
Gross profit
169 95,178 159,626 
Operating expenses
Employee compensation and benefits
33,661 30,719 31,786 
Share-based compensation
8,053 8,808 5,110 
Professional fees
9,127 8,468 9,824 
IT services
4,357 4,149 3,528 
Depreciation and amortization
1,070 1,082 915 
Other(2)
9,279 12,877 10,848 
Total operating expenses65,547 66,103 62,011 
Operating income (loss)
(65,378)29,075 97,615 
Other income (expense)
Interest expense
(11,317)(10,661)(5,832)
Interest income
12,090 10,335 1,995 
Other income (expense), net
— 109 (238)
Total other expense, net
773 (217)(4,075)
Income (loss) before income taxes
(64,605)28,858 93,540 
Income tax expense
70,405 6,788 26,920 
Net income (loss)
$(135,010)$22,070 $66,620 
(1) Other cost of services primarily consists of costs incurred to third party partners for partner commissions, fees paid for actuarial services, fees for integration with the loan origination system of automotive lenders and fees paid to credit bureaus and data service providers.
(2) Other operating expenses includes marketing expenses, insurance expenses, travel expenses, meals and entertainment expenses, facilities expenses and business development expenses.