Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 63

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 $33,884 $— Initial transfers of financial assets5,191 10,749 15,568 14,563 Cash settlements(5,824)— (5,824)— Subsequent changes in fair value272 2,127 1,341 2,127 Fair value at end of period$44,969 $16,690 $44,969 $16,690 The following table summarizes the activity related to the fair value of the risk sharing liabilities (in thousands):Three Months Ended December 31,Six Months Ended December 31,2024202320242023Fair value at beginning of period$1,801 $471 $918 $— Cash settlements(445)— (445)— Subsequent changes in fair value142 41 1,025 512 Fair value at end of period$1,498 $512 $1,498 $512 The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the risk sharing arrangements as of December 31, 2024:December 31, 2024Unobservable InputMinimumMaximumWeighted Average (1)Risk sharing assetsDiscount rate20.00%20.00%20.00%Loss rate3.28%4.87%4.01%Prepayment rate20.81%27.21%24.73%Risk sharing liabilitiesDiscount rate20.00%20.00%20.00%Loss rate 3.39%5.17%4.37%June 30, 2024Unobservable InputMinimumMaximumWeighted Average (1)Risk sharing assetsDiscount rate20.00%20.00%20.00%Loss rate3.00%4.69%3.66%Prepayment rate23.36%33.29%28.48%Risk sharing liabilitiesDiscount rate20.00%20.00%20.00%Loss rate3.25%5.29%4.28%(1)Unobservable inputs were weighted by principal balance of loans sold under each cohort.

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The following table summarizes the effect that adverse changes in estimates would have on the fair value of the risk sharing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands):December 31, 2024June 30, 2024Risk sharing assets (1)Prepayment rate assumption:Prepayment rate increase of 25