Company: AFRM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050295
Chunk: 57

Company: Affirm Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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vested stock options was approximately $34.0 million, which is expected to be recognized over a remaining weighted-average period of 2.0 years.Value Creation AwardIn November 2020, the Company’s Board of Directors approved a long-term, multi-year performance-based stock option grant providing Mr. Levchin with the opportunity to earn the right to purchase up to 12,500,000 shares of the Company’s Class A common stock (the “Value Creation Award”). We recognize stock-based compensation on these awards based on the grant date fair value using an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied. We incurred stock-based compensation expense of  $5.5 million and $12.4 million during the three months ended September 30, 2025 and 2024, respectively, associated with the Value Creation Award as a component of general and administrative expense within the interim condensed consolidated statements of operations and comprehensive income (loss).  The following table summarizes our Value Creation Award activity for the three months ended September 30, 2025:Number of OptionsWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (in thousands)Balance as of June 30, 202512,500,000 $49.00 5.29Exercised(1,333,332)49.00 Balance as of September 30, 202511,166,668 49.00 5.29Vested and exercisable, September 30, 20252,666,668 $49.00 5.29$64,213 As of September 30, 2025, unrecognized compensation expense related to the Value Creation Award was approximately $6.3 million, which is expected to be recognized over a remaining weighted-average period of 0.3 years.

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Restricted Stock UnitsRSUs are subject to a service-based vesting condition. We record stock-based compensation expense for service-based RSUs on a straight-line basis over the requisite service period, which is generally one to three years. The following table summarizes our RSU activity during the three months ended September 30, 2025:Number of SharesWeighted Average Grant Date Fair ValueNon-vested at June 30, 202513,666,035 $30.98 Granted5,662,211 67.50 Vested(3,231,575)36.76 Forfeited