Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 43

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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2026 Notes. The carrying amount of the extinguished 2026 Notes was approximately $955.6 million and $1,095.3 million resulting in a $62.8 million and $82.4 million gain on early extinguishment of debt for the three and six months ended December 31, 2024, respectively, which is reported as a component of other income, net within our interim consolidated statements of operations and comprehensive income (loss). The repurchased 2026 Notes were received and canceled. We utilized a combination of cash on hand and the net proceeds from the issuance of the 2029 Notes for these repurchases. There were no repurchases of 2026 Notes during the three and six month periods ended December 31, 2023, respectively.On November 5, 2024, the Board of Directors authorized the repurchase of up to $500 million in aggregate principal amount of the 2026 Notes. Note repurchases under the November 2024 authorization may be made from time to time during the period commencing January 1, 2025 through December 31, 2025 through open market purchases, privately negotiated purchases, purchase plans under Rule 10b5-1, or through a combination thereof. Repurchases are subject to available liquidity, general market and economic conditions, alternate uses for the capital, and other factors, and there is no minimum principal amount of 2026 Notes that the Company is obligated to repurchase. As of December 31, 2024, $248.7 million in aggregate principal amount of the 2026 Notes remains outstanding.

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The following table summarizes the interest expense recognized related to the convertible senior notes (in thousands):Three Months Ended December 31,Six Months Ended December 31,2024202320242023Amortization of debt issuance costs (1)2026 Notes$658 $872 $1,427 $1,745 2029 Notes110 — 110 — Total amortization of debt issuance costs$768 $872 $1,537 $1,745 Coupon interest expense (1) (2)227 — 227 — Total interest expenses related to the convertible notes$995 $872 $1,764 $1,745 (1)Included in our interim condensed consolidated statement of operations and comprehensive income (loss) within other income, net. (2)The coupon interest expense is related to the 2029 Notes.As of