Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 41

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 31, 2025AssetsLiabilitiesNet AssetsMaximum Exposure to LossesSecuritizations$952,709 $914,730 $37,979 $51,394 Total unconsolidated VIEs$952,709 $914,730 $37,979 $51,394 June 30, 2024AssetsLiabilitiesNet AssetsMaximum Exposure to LossesSecuritizations$967,256 $920,004 $47,252 $51,861 Total unconsolidated VIEs$967,256 $920,004 $47,252 $51,861 Maximum exposure to losses represents our exposure through our continuing involvement as servicer and through our retained interests. For unconsolidated VIEs, this includes $50.9 million in retained notes and residual trust certificates disclosed within securities available for sale at fair value in our interim condensed consolidated balance sheets and $0.5 million related to our net servicing assets disclosed within our interim condensed consolidated balance sheets as of March 31, 2025.Additionally, we may experience a loss due to future repurchase obligations resulting from breaches in representations and warranties in our securitization and third-party sale agreements. This amount was not material as of March 31, 2025.

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Retained Beneficial Interests in Unconsolidated VIEsThe investors of the securitizations have no direct recourse to the assets of Affirm, and the timing and amount of beneficial interest payments is dependent on the performance of the underlying loan assets held within each trust. We have classified our retained beneficial interests in unconsolidated securitization trusts as “available for sale” and as such they are disclosed at fair value in our interim condensed consolidated balance sheets.  Refer to Note 12. Fair Value of Financial Assets and Liabilities for additional information on the fair value sensitivity of the notes receivable and residual trust certificates. Additionally, as of March 31, 2025, we have pledged certain of our retained beneficial interests as collateral in a sale and repurchase agreement as described in Note 8. Debt.

10.   Investments

Marketable SecuritiesMarketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands):March 31, 2025June 30,