Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 52

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 52
---
2025Unobservable InputMinimumMaximumWeighted Average (3)Servicing assetsDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)11.83 %14.84 %12.86 %Servicing liabilitiesDiscount rate30.00 %30.00 %30.00 %Adequate compensation (1)2.00 %2.00 %2.00 %Gross default rate (2)3.34 %5.34 %4.28 %

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 fair valueThe following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands):March 31, 2025June 30, 2024Servicing assetsGross default rate assumption:Gross default rate increase of 25%$1 $1 Gross default rate increase of 50%$1 $1 Adequate compensation assumption:Adequate compensation increase of 10%$(923)$(980)Adequate compensation increase of 20%$(1,846)$(1,961)Discount rate assumption:Discount rate increase of 25%$(22)$(23)Discount rate increase of 50%$(43)$(44)Servicing liabilitiesGross default rate assumption:Gross default rate increase of 25%$— $(1)