Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 79

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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,651 186 %6,942 1,233 5,709 463 %Net income (loss)$2,804 $(133,936)$136,740 (102)%$(17,058)$(472,621)$455,563 (96)%

(1)Upon purchase of a loan from our originating bank partners at a price above the fair market value of the loan or upon the origination of a loan with a par value in excess of the fair market value of the loan, a discount is included in the amortized cost basis of the loan. For loans held for investment, this discount is amortized over the life of the loan into interest income. When a loan is sold to a third-party loan buyer or off-balance sheet securitization trust, the unamortized discount is released in full at the time of sale and recognized as part of the gain or loss on sales of loans. However, the cumulative value of the loss on loan purchase commitment or loss on origination, the interest income recognized over time from the amortization of discount while retained, and the release of discount into gain on sales of loans, together net to zero over the life of the loan. The following table details activity for the discount, included in loans held for investment, for the periods indicated:

65

Three Months Ended March 31,Nine Months Ended March 31,2025202420252024(in thousands)Balance at the beginning of the period$103,433 $100,900 $98,527 $96,576 Additions from loans purchased or originated, net of refunds86,723 69,545 265,676 200,641 Amortization of discount(65,639)(53,960)(186,450)(150,102)Unamortized discount released on loans sold(19,939)(12,493)(71,826)(43,003)Impact of foreign currency translation39 (779)(1,310)(899)Balance at the end of the period$104,617 $103,213 $104,617 $103,213 

(2) Amounts include stock-based compensation as follows:

Three Months Ended March 31,Nine Months Ended March 31,2025202420252024(in thousands)General and administrative$50,344 $51,947 $170,868 $184,070 Technology and data analytics21,309 21,105 70