Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 154

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 154
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. Debt in the notes to the interim condensed consolidated financial statements for further details on our revolving credit facility. 

Convertible Senior Notes

Our convertible senior notes have an aggregate principal balance of $1.2 billion, and bear no interest, in the case of the 2026 Notes, and 0.75% per year, in the case of the 2029 Notes, which is payable semiannually. The 2026 Notes mature on November 15, 2026, and the 2029 Notes mature on December 15, 2029, in each case unless earlier converted, redeemed, or repurchased in accordance with their terms. Refer to Note 8. Debt in the notes to the interim condensed consolidated financial statements for further details.

Other Funding Sources

Forward Flow Loan Sale Arrangements

We have forward flow loan sale arrangements that facilitate the sale of whole loans across a diverse third-party investor base. Forward flow arrangements are generally fixed term in nature, with term lengths ranging between one to three years, during which we periodically sell loans to each counterparty based on the terms of our negotiated agreement.

Cash Flow Analysis 

The following table provides a summary of cash flow data during the periods indicated:

Six Months Ended December 31,20242023(in thousands)Net cash provided by operating activities508,884 173,223 Net cash used in investing activities(664,067)(640,761)Net cash provided by financing activities609,721 655,151 

Cash Flows from Operating Activities

Our largest sources of operating cash are fees charged to merchant partners on transactions processed through our platform and interest income from consumers’ loans. Our primary uses of cash from operating activities are for general and administrative, technology and data analytics, funding costs, processing and servicing, and sales and marketing expenses.

Net cash provided by operating activities was $508.9 million for the six months ended December 31, 2024. Net loss of $19.9 million was adjusted for the add back of non-cash items and other adjustments increasing operating cash flows by $423.5 million, and changing operating assets net of operating liabilities resulting in a net increase in operating cash flows of $105.2 million. The non-cash item adjustments are primarily attributable to $312.8 million provision for credit losses, $194.0 million commercial agreement warrant expense, $180.3 million 

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stock-based compensation expense, and $101.6 million depreciation and amortization expense, which were partially offset by $