Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 142

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 142
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 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 December 31,Six Months Ended December 31,2024202320242023(in thousands)Balance at the beginning of the period$100,203 $89,862 $98,527 $96,576 Additions from loans purchased or originated, net of refunds100,764 78,676 178,953 131,096 Amortization of discount(64,115)(51,024)(120,812)(96,142)Unamortized discount released on loans sold(31,732)(17,450)(51,887)(30,510)Impact of foreign currency translation(1,687)836 (1,348)(120)Balance at the end of the period$103,433 $100,900 $103,433 $100,900 

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

Three Months Ended December 31,Six Months Ended December 31,2024202320242023(in thousands)General and administrative$57,719 $61,939 $120,524 $132,123 Technology and data analytics23,677 22,567 49,648 57,703 Sales and marketing4,482 4,305 9,677 9,770 Processing and servicing220 1,353 482 2,927 Total stock-based compensation in operating expenses86,098 90,164 180,331 202,523 Capitalized into property, equipment and software, net44,708 29,657 94,186 68,460 Total stock-based compensation$130,806 $119,821 $274,517 $270,983 

Comparison of the Three and Six Months Ended December 31, 2024 and 2023

Merchant network revenue 

Merchant network revenue is impacted by both GMV and the mix of loans originated on our platform as merchant fees vary based on loan characteristics. In particular, merchant network revenue as a percentage of GM