Business Description

—Bank Partners," under our Program Agreement with Coastal, we expect to transition ExtraCash receivables to an off-balance sheet structure as existing Members migrate to Coastal, which we anticipate will be substantially finalized by the end of 2026. Once receivables are originated and retained on Coastal's balance sheet, this arrangement may constitute an off-balance sheet arrangement in future periods. We will continue to evaluate and disclose the nature and impact of this arrangement as the transition progresses. Additionally, we may use cash to acquire businesses and technologies. The nature of these potential transactions, however, makes it difficult to predict the amount and timing of such cash requirements. Cash Flows Summary 72 (in thousands) For the Years Ended December 31, Total cash provided by (used in): 2025 2024 2023 Operating activities $ 290,023 $ 125,137 $ 33,754 Investing activities (202,748 ) (45,843 ) (14,375 ) Financing activities (56,288 ) (70,995 ) 22 Net increase in cash and cash equivalents and restricted cash $ 30,987 $ 8,299 $ 19,401 Cash Flows From Operating Activities We recorded net income of $195.9 million for the year ended December 31, 2025, net income of $57.9 million for the year ended December 31, 2024 and a net loss of $48.5 million for the year ended December 31, 2023. We reported cash flows provided by operating activities of $290.0 million for the year ended December 31, 2025, cash flows provided by operating activities of $125.1 million for the year ended December 31, 2024 and cash flows provided by operating activities of $33.8 million for the year ended December 31, 2023. During the year ended December 31, 2025, net cash provided by operating activities was $290.0 million, an increase of $164.9 million compared to $125.1 million for the year ended December 31, 2024. The increase was primarily driven by higher net income, which grew from $57.9 million to $195.9 million year over year, reflecting continued growth in ExtraCash origination volume and Member engagement, the transition to our simplified fee structure, and the $58.7 million income tax benefit from the release of our deferred tax asset valuation allowance. Excluding non-cash items, changes in operating assets and liabilities were a net use of cash, driven by an increase in receivables related to revenue from ExtraCash of $16.7 million, a decrease in accrued expenses of $2.0 million, and an increase in prepaid expenses and other current assets of $1.9 million. These uses were partially offset by an increase in other current liabilities of $3.9 million, an increase in accounts payable of $1.6 million, an increase in other non-current liabilities of $1.4 million, and an increase in legal settlement accrual of $0.7 million. During the year ended December 31, 2024, net cash provided by operating activities was $125.1 million, an increase of $91.3 million compared to $33.8 million for the year ended December 31, 2023. The increase was primarily driven by higher net income of $57.9 million compared to a net loss of $48.5 million in the prior year, reflecting improved operating performance across the business, including lower provision for credit losses, reduced marketing spend, and continued growth in service based and transaction based revenues. Excluding non-cash items, changes in operating assets and liabilities were a net use of cash, driven by an increase in prepaid expenses and other current assets of $8.2 million and an increase in receivables related to revenue from ExtraCash of $6.2 million. These uses were partially offset by an increase in accrued expenses of $4.1 million, an increase in legal settlement accrual of $3.8 million, an increase in non-current liabilities of $2.9 million, an increase in accounts payable of $1.3 million, an increase in other current liabilities of $0.3 million, and a decrease in prepaid income taxes of $0.1 million. During the year ended December 31, 2023, net cash provided by operating activities was $33.8 million, an increase compared to the year ended December 31, 2022, primarily driven by improved operating results, including a lower net loss, reduced provision for credit losses, and decreases in processing costs, marketing expenses, and compensation and benefits.…