Company: AFRM
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001820953-25-000080
Chunk: 126

Company: Affirm Holdings, Inc.
Filing Date: 2025-08-28
Form: 10-K
Item: Item 7
Chunk 126
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6,130 (157)%Net income (loss)$52,186 $(517,757)$(985,345)$569,943 110 %$467,588 (47)%

(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. For loans held for sale, 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:

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Table of Contents

June 30, 2025June 30, 2024June 30, 2023(in thousands)Balance at the beginning of the period$98,527 $96,576 $42,780 Additions from loans purchased or originated, net of refunds356,398 268,441 259,720 Amortization of discount(254,964)(204,654)(158,703)Unamortized discount released on loans sold(97,044)(60,580)(46,885)Impact of foreign currency translation(233)(1,256)(336)Balance at the end of the period$102,684 $98,527 $96,576 

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

June 30, 2025June 30, 2024June 30, 2023(in thousands)General and administrative$216,323 $228,334 $239,923 Technology and data analytics87,707 96,596 181,396 Sales and marketing16,535 16,374 25,914 Processing and servicing868 3,207 4,476 Total stock-based