Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 51

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require.Gross Default RateWe estimate the timing and probability of early loan payoffs, loan defaults and write-offs, thus affecting the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenue and expenses.We earned $32.1 million and $86.7 million of servicing income for the three and nine months ended March 31, 2025, respectively, and $25.3 million and $67.9 million for the three and nine months ended March 31, 2024, respectively.

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As of both March 31, 2025 and June 30, 2024, the aggregate fair value of the servicing assets was measured at $0.6 million and presented within other assets in the interim condensed consolidated balance sheets. As of March 31, 2025 and June 30, 2024, the aggregate fair value of the servicing liabilities was measured at $0.1 million and $0.7 million, respectively, and presented within accrued expenses and other liabilities in the interim condensed consolidated balance sheets.The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands):Three Months Ended March 31,Nine Months Ended March 31,2025202420252024Fair value at beginning of period$806 $365 $574 $880 Initial transfers of financial assets— — 230 — Subsequent changes in fair value(211)(145)(209)(660)Fair value at end of period$595 $220 $595 $220 The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands):Three Months Ended March 31,Nine Months Ended March 31,2025202420252024Fair value at beginning of period$237 $2,531 $743 $1,392 Initial transfers of financial liabilities— 1,085 — 4,176 Subsequent changes in fair value(134)(1,124)(640)(3,076)Fair value at end of period$103 $2,492 $103 $2,492 The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2025 and June 30, 2024:March 31,