Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 57

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 57
---
 period$806 $365 $806 $365 The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands):Three Months Ended December 31,Six Months Ended December 31,2024202320242023Fair value at beginning of period$438 $1,851 $743 $1,392 Initial transfers of financial liabilities— 1,702 — 3,091 Subsequent changes in fair value(201)(1,022)(506)(1,952)Fair value at end of period$237 $2,531 $237 $2,531 The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of December 31, 2024 and June 30, 2024:December 31, 2024Unobservable InputMinimumMaximumWeighted Average (3)Servicing assetsDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)9.20 %15.20 %11.32 %Servicing liabilitiesDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)3.22 %4.65 %3.89 %

44

June 30, 2024Unobservable InputMinimumMaximumWeighted Average (3)Servicing assetsDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)9.89 %22.72 %10.84 %Servicing liabilitiesDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)2.58 %4.12 %3.00 %(1)Estimated annual cost of servicing a loan as a percentage of unpaid principal balance. (2)Annualized estimated gross charge-offs as a percentage of unpaid principal balance.(3)Unobservable inputs were weighted by relative