Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 84

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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,685)$318,823 (94)%

(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 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