Company: AFRM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050295
Chunk: 119

Company: Affirm Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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 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:

63

Three Months Ended September 30,20252024(in thousands)Balance at the beginning of the period$102,680 $98,527 Additions from loans purchased or originated, net of refunds106,089 78,189 Amortization of discount(71,316)(56,697)Unamortized discount released on loans sold(30,773)(20,155)Impact of foreign currency translation(370)339 Balance at the end of the period$106,310 $100,203 

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

Three Months Ended September 30,20252024(in thousands)General and administrative$55,773 $62,804 Technology and data analytics24,764 25,972 Sales and marketing5,076 5,195 Processing and servicing240 262 Total stock-based compensation in operating expenses85,853 94,233 Capitalized into property, equipment and software, net52,885 49,478 Total stock-based compensation$138,738 $143,711 

Comparison of the Three Months Ended September 30, 2025 and 2024

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 GMV typically increases with longer-term, non interest-bearing loans with higher AOVs, and decreases with shorter-term, interest-bearing loans with lower AOVs. 

Merchant network revenue increased by $66.8 million, or 36%, for the three months ended September 30, 2025, compared to the same period in 2024. The increase is primarily attributed to an increase of $3.2 billion, or 42%, in GMV for the three months ended September 30, 2025, compared to the same period in 2024. GMV from our top five merchants and platform partners for the three months ended September 30, 2025, increased 33% compared to the same period