Company: AFRM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050295
Chunk: 22

Company: Affirm Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 in the interim condensed consolidated balance sheets. Operating lease expense is as follows (in thousands):Three Months Ended September 30,20252024Operating lease expense (1)$3,108$2,853(1)Lease expenses for our short-term leases were immaterial for the periods presented. Lease term and discount rate information are summarized as follows:September 30, 2025Weighted average remaining lease term (in years)4.3Weighted average discount rate5.9%As of September 30, 2025, future minimum lease payments are as follows, by fiscal year (in thousands):2026 (remaining nine months)$12,314 20274,436 20283,563 20293,618 20303,745 Thereafter4,436 Total lease payments32,112 Less imputed interest(4,004)Present value of total lease liabilities$28,108 

7.   Commitments and Contingencies

Loan Repurchase ObligationsUnder the normal terms of our whole loan sales to third-party investors, we may become obligated to repurchase loans from investors in certain instances where a breach in representations and warranties is identified. Generally, a breach in representations and warranties could occur where a loan has been identified as subject to verified or suspected fraud, or in cases where a loan was serviced or originated in violation of Affirm’s guidelines. We would only experience a loss if the contractual repurchase price of the loan exceeds the fair value on the repurchase date. As of September 30, 2025, the aggregate outstanding balance of loans held by third-party investors or unconsolidated VIEs was $8.5 billion, of which we have recorded a repurchase liability of $8.4 million within accrued expenses and other liabilities in our interim condensed consolidated balance sheets.Legal Proceedings From time to time, we are subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, 

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we establish an accrued liability for legal proceedings and claims when those matters present loss contingencies which are both probable and reasonably estimable. Kusnier v. Affirm Holdings, Inc.On December 8, 2022, plaintiff Mark Kusnier filed a putative class action lawsuit against Affirm, Max Levchin, and Michael Linford in the U.S. District Court for the Northern District of California (the “Kusnier action”). On May