Company: AFRM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050295
Chunk: 20

Company: Affirm Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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103,994 $(91,059)$12,935 Amortization expense for intangible assets was $0.1 million and $0.6 million for the three months ended September 30, 2025 and 2024, respectively. No impairment losses related to intangible assets were recorded during the three months ended September 30, 2025 and 2024. The expected future amortization expense of these intangible assets as of September 30, 2025 is as follows, by fiscal year (in thousands):2026 (remaining nine months)$91 202715 2028— 2029— 2030 and thereafter— Total amortization expense$106 Commercial Agreement AssetsIn fiscal year 2022, we granted warrants in connection with our commercial agreements with certain subsidiaries of Amazon.com, Inc. (“Amazon”). We recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon grant. The asset was valued based on the fair value of the warrants and represents the probable future economic benefit to be realized over the expected benefit period of four years. For 

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both the three months ended September 30, 2025 and 2024, we recognized amortization expense of $5.2 million in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of September 30, 2025, the accumulated amortization is $126.6 million and the remaining net asset value is $7.0 million, which will be recognized over the remaining useful life of 0.3 years. Refer to Note 13. Stockholders’ Equity for further discussion of the warrants.  In fiscal year 2021, we granted warrants in exchange for the opportunity to acquire new merchant partners through a commercial agreement with Shopify Inc. (“Shopify”). We recognized an asset of $270.6 million based on the grant-date fair value of the vested warrants. We amortize the asset over the expected benefit period, which was extended from six to nine years during the fiscal year 2025 upon execution of a commercial agreement that superseded and replaced the previous commercial agreement. The benefit period is reevaluated each reporting period. For the three months ended September 30, 2025 and 2024, we recorded amortization expense related to the commercial agreement asset of $2.8 million and $9.0 million, respectively, in our interim condensed consolidated statements of operations and comprehensive income