PROSPER MARKETPLACE, INC 8-K

What Happened
Prosper Marketplace, Inc. announced (Item 1.01) that on December 31, 2025 it entered into a Third Amendment to its First Amended and Restated Program Agreement with Coastal Community Bank. The amendment: reduces the program fee paid to Coastal, extends the agreement term through December 31, 2027, and grants Coastal certain exclusivity rights. Prosper disclosed the 8-K on January 7, 2026 and said the full Third Amendment text will be filed as an exhibit to its 2025 Form 10‑K.

Key Details

• The cap on receivables that Coastal holds on its balance sheet for Prosper Allocations is increased to $375 million from $350 million.
• The amendment modifies the required balance of the program reserve account and sets the process for funding that modified balance.
• Coastal is granted the right to adjust the portion of new customer accounts designated as Coastal Allocations from 5% to any amount between 5% and 0% (i.e., it may reduce this allocation).
• The agreement term is extended through December 31, 2027; the amendment also reduces the program fee (amount not disclosed in the 8-K summary).

Why It Matters
These contract changes affect the economics and operational details of Prosper’s Prosper‑branded credit card program. A lower program fee and an extended term change cost and partnership timing; a higher receivables cap and modified reserve requirements affect how much debt sits on Coastal’s balance sheet and how the program is funded. The exclusivity and allocation flexibility granted to Coastal could influence how new accounts are distributed between partners. Investors should review the full Third Amendment (to be filed with the 2025 Form 10‑K) for the exact fee changes and detailed terms.