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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-39888

Affirm Holdings, Inc.

(Exact name of registrant as specified in its charter)


Nevada									84-2224323
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

650 California Street
San Francisco, California									94108
(Address of principal executive offices)									(Zip Code)

(415) 960-1518

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock, par value $0.00001 per share

AFRM

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 30, 2026, the number of shares of the registrant’s Class A common stock outstanding was 292,409,876 and the number of shares of the registrant’s Class B common stock outstanding was 40,700,775.

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TABLE OF CONTENTS


						Page
Cover						1
Table of Contents						2
Part I - Financial Information						5
Item 1. Financial Statements						5
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)						5
CONDENSED CONSOLIDATED BALANCE SHEETS, CONT. (Unaudited)						6
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)						7
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)						8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)						10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited)						11
1. Business Description						12
2. Summary of Significant Accounting Policies						12
3. Revenue						15
4. Loans Held for Investment and Allowance for Credit Losses						17
5. Balance Sheet Components						21
6. Leases						23
7. Commitments and Contingencies						24
8. Debt						26
9. Securitization and Variable Interest Entities						31
10. Investments						34
11. Derivative Financial Instruments						38
12. Fair Value of Financial Assets and Liabilities						40
13. Stockholders’ Equity						52
14. Equity Incentive Plans						53
15. Income Taxes						56
16. Net Income (Loss) per Share Attributable to Common Stockholders						57
17. Segment Information						58
18. Subsequent Events						58
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						59
Item 3. Quantitative and Qualitative Disclosures About Market Risk						76
Item 4. Controls and Procedures						78
Part II - Other Information						79
Item 1. Legal Proceedings						79
Item 1A. Risk Factors						79
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						79
Item 3. Defaults Upon Senior Securities						79
Item 4. Mine Safety Disclosures						79
Item 5. Other Information						80
Item 6. Exhibits						81
Signatures						82

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Form 10-Q”), as well as information included in oral statements or other written statements made or to be made by us, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Report, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management regarding future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

•our expectations regarding our future revenue, expenses, and other operating results and key operating metrics;

•our ability to attract new merchant partners and commerce platforms and grow our relationships with existing merchant partners and commerce platforms;

•our ability to compete successfully in a highly competitive and evolving industry;

•our ability to attract new consumers and retain and grow our relationships with our existing consumers;

•our expectations regarding the development, innovation, introduction of, and demand for, our products;

•our ability to successfully maintain our relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners;

•our ability to maintain, renew or replace our existing funding arrangements and build and grow new funding relationships;

•the impact of any of our funding sources becoming unwilling or unable to provide funding to us on terms acceptable to us, or at all;

•our ability to effectively price and score credit risk using our proprietary risk model;

•the performance of loans facilitated and originated through our platform;

•our ability to effectively use and provide AI-powered solutions;

•the future growth rate of our revenue and related key operating metrics;

•our ability to achieve sustained profitability in the future;

•our ability, and the ability of our originating bank and other partners, to comply, and remain in compliance with, laws and regulations that currently apply or become applicable to our business or the businesses of such partners;

•our ability to protect our confidential, proprietary, or sensitive information;

•past and future acquisitions, investments, and other strategic investments;

•our ability to successfully expand into new international geographies;

•our ability to maintain, protect, and enhance our brand and intellectual property;

•litigation, investigations, regulatory inquiries, and proceedings;

•developments in our regulatory environment, including governmental actions to cap interest rates;

•the impact of macroeconomic conditions on our business, including the impacts of inflation, an elevated interest rate environment and corresponding elevated negotiated interest rate spreads, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, and the

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potential impact of macroeconomic conditions on the stability of the consumers and financial institutions with whom we do business; and

•the size and growth rates of the markets in which we compete.

Forward-looking statements, including statements such as “we believe” and similar statements, are based on our management’s current beliefs, opinions and assumptions and on information currently available as of the date of this Report. Such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described in the section titled “Risk Factors” and elsewhere in this Form 10-Q and in our most recently filed Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (the “Annual Report”). Other sections of this Form 10-Q may include additional factors that could harm our business and financial performance. Moreover, we operate in a very competitive, heavily regulated and rapidly changing environment. New risks emerge from time to time, and it is not possible for our management to predict all risks that we may face, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause our actual results to differ from those contained in, or implied by, any forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable as of the date of this Report, we cannot guarantee future results, levels of activity, performance, achievements, events, outcomes, timing of results or circumstances. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Report or to conform these statements to actual results or to changes in our expectations. You should read this Form 10-Q and the documents that we have filed as exhibits to this Report with the understanding that our actual future results, levels of activity, performance, outcomes, achievements and timing of results or outcomes may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (investors.affirm.com), our filings with the Securities and Exchange Commission (“SEC”), webcasts, press releases, conference calls, and social media. We use these mediums, including our website, to communicate with investors and the general public about our company, our products, and other issues. It is possible that the information that we make available on our website may be deemed to be material information. We therefore encourage investors and others interested in our Company to review the information that we make available on our website. The contents of our website are not incorporated into this filing. We have included our investor relations website address only as an inactive textual reference for convenience and do not intend it to be an active link to our website.

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Part I - Financial Information

Item 1. Financial Statements

AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except shares and per share amounts)


	December 31, 2025		June 30, 2025
Assets
Cash and cash equivalents	$	1,527,880	$	1,354,455
Restricted cash	566,692		401,968
Securities available for sale at fair value	723,375		871,425
Loans held for sale	6		—
Loans held for investment	8,773,542		7,025,534
Allowance for credit losses	(478,103)		(396,929)
Loans held for investment, net	8,295,439		6,628,606
Accounts receivable, net	268,177		426,177
Property, equipment and software, net	639,891		572,637
Goodwill	533,441		534,156
Intangible assets	12,619		12,935
Commercial agreement assets	44,395		57,210
Other assets	344,986		295,360
Total assets	$	12,956,899	$	11,154,929
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	57,228	$	82,820
Payable to third-party loan owners	130,327		211,700
Accrued interest payable	28,784		24,465
Accrued expenses and other liabilities	184,459		157,272
Convertible senior notes, net	1,127,658		1,153,000
Notes issued by securitization trusts	4,834,736		4,833,855
Funding debt	3,046,846		1,622,808
Total liabilities	9,410,038		8,085,919
Commitments and contingencies (Note 7)
Stockholders’ equity:
Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 291,506,324 shares issued and outstanding as of December 31, 2025; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025	2		2
Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,700,781 shares issued and outstanding as of December 31, 2025; 140,000,000 authorized, 40,734,234 shares issued and outstanding as of June 30, 2025	1		1
Additional paid in capital	6,410,335		6,140,893
Accumulated deficit	(2,846,538)		(3,056,818)
Accumulated other comprehensive loss	(16,939)		(15,069)
Total stockholders’ equity	3,546,861		3,069,009
Total liabilities and stockholders’ equity	$	12,956,899	$	11,154,929

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS, CONT.

(Unaudited)

(in thousands)

The following table presents the assets and liabilities of consolidated variable interest entities (“VIEs”), which are included in the interim condensed consolidated balance sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. The liabilities in the table below include liabilities for which creditors do not have recourse to the general credit of the Company. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate upon consolidation.


	December 31, 2025		June 30, 2025
Assets of consolidated VIEs, included in total assets above
Restricted cash	$	310,298	$	192,638
Loans held for investment	8,516,063		6,828,758
Allowance for credit losses	(444,137)		(365,656)
Loans held for investment, net	8,071,926		6,463,101
Accounts receivable, net	3,152		3,032
Other assets	1,222		2,558
Total assets of consolidated VIEs	$	8,386,598	$	6,661,329
Liabilities of consolidated VIEs, included in total liabilities above
Accounts payable	$	—	$	2,833
Accrued interest payable	28,464		23,998
Accrued expenses and other liabilities	1,659		2,797
Notes issued by securitization trusts	4,834,736		4,833,855
Funding debt	3,033,546		1,592,139
Total liabilities of consolidated VIEs	7,898,405		6,455,621
Total net assets of consolidated VIEs	$	488,193	$	205,707

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Revenue
Merchant network revenue	$	328,380	$	244,895	$	579,527	$	429,234
Card network revenue	73,035		58,142		142,365		105,622
Total network revenue	401,415		303,037		721,892		534,856
Interest income	493,626		409,367		947,749		786,431
Gain on sales of loans	185,231		125,287		304,280		188,900
Servicing income	42,748		28,690		82,437		54,674
Total revenue, net	$	1,123,019	$	866,381	$	2,056,357	$	1,564,861
Operating expenses
Loss on loan purchase commitment	$	96,065	$	70,278	$	167,617	$	124,515
Provision for credit losses	214,153		152,980		376,905		312,804
Funding costs	111,717		107,762		221,744		211,907
Processing and servicing	158,582		115,960		292,389		211,106
Technology and data analytics	184,871		148,213		352,976		282,503
Sales and marketing	98,782		136,038		177,273		281,271
General and administrative	141,223		139,412		286,165		277,894
Restructuring and other	—		60		—		(195)
Total operating expenses	$	1,005,393	$	870,703	$	1,875,070	$	1,701,805
Operating income (loss)	$	117,626	$	(4,322)	$	181,287	$	(136,944)
Other income, net	15,612		87,181		34,970		121,483
Income (loss) before income taxes	$	133,238	$	82,859	$	216,257	$	(15,461)
Income tax expense	3,652		2,499		5,977		4,401
Net income (loss)	$	129,586	$	80,360	$	210,280	$	(19,862)
Other comprehensive income (loss)
Foreign currency translation adjustments	$	7,836	$	(35,469)	$	(2,167)	$	(27,123)
Unrealized gain (loss) on securities available for sale, net	(81)		(2,873)		731		2,716
Loss on cash flow hedges	(305)		(89)		(434)		(1,581)
Net other comprehensive income (loss)	$	7,450	$	(38,431)	$	(1,870)	$	(25,988)
Comprehensive income (loss)	$	137,037	$	41,929	$	208,410	$	(45,850)
Per share data:
Net income (loss) per share attributable to common stockholders for Class A and Class B
Basic	$	0.39	$	0.25	$	0.63	$	(0.06)
Diluted	$	0.37	$	0.23	$	0.60	$	(0.06)
Weighted average common shares outstanding
Basic	334,270,750		322,282,334		332,254,478		320,258,445
Diluted	349,365,762		345,196,568		348,822,083		320,258,445

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share amounts)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares (1)	Amount
Balance as of June 30, 2025	325,112,799	$	3	$	6,140,893	$	(3,056,818)	$	(15,069)	$	3,069,009
Issuance of common stock upon exercise of stock options	3,020,789	—		94,828		—		—		94,828
Vesting of restricted stock units	1,914,916	—		—		—		—		—
Vesting of warrants for common stock	—	—		40,977		—		—		40,977
Stock-based compensation	—	—		138,738		—		—		138,738
Tax withholding on stock-based compensation	—	—		(116,041)		—		—		(116,041)
Foreign currency translation adjustments	—	—		—		—		(10,003)		(10,003)
Unrealized gain on securities available for sale	—	—		—		—		812		812
Loss on cash flow hedges	—	—		—		—		(129)		(129)
Net income	—	—		—		80,694		—		80,694
Balance as of September 30, 2025	330,048,504	$	3	$	6,299,395	$	(2,976,124)	$	(24,389)	$	3,298,885
Issuance of common stock upon exercise of stock options	276,350	—		2,537		—		—		2,537
Issuance of common stock, employee share purchase plan	152,596	—		6,733		—		—		6,733
Vesting of restricted stock units	1,729,655	—		—		—		—		—
Vesting of warrants for common stock	—	—		61,206		—		—		61,206
Stock-based compensation	—	—		124,436		—		—		124,436
Tax withholding on stock-based compensation	—	—		(83,972)		—		—		(83,972)
Foreign currency translation adjustments	—	—		—		—		7,836		7,836
Unrealized loss on securities available for sale	—	—		—		—		(81)		(81)
Loss on cash flow hedges	—	—		—		—		(305)		(305)
Net income	—	—		—		129,586		—		129,586
Balance as of December 31, 2025	332,207,105	$	3	$	6,410,335	$	(2,846,538)	$	(16,939)	$	3,546,861

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	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares (1)	Amount
Balance as of June 30, 2024	311,053,031	$	3	$	5,862,555	$	(3,109,004)	$	(21,565)	$	2,731,989
Issuance of common stock upon exercise of stock options	432,277	—		3,596		—		—		3,596
Vesting of restricted stock units	2,492,095	—		—		—		—		—
Vesting of warrants for common stock	—	—		107,263		—		—		107,263
Stock-based compensation	—	—		143,711		—		—		143,711
Tax withholding on stock-based compensation	—	—		(63,208)		—		—		(63,208)
Foreign currency translation adjustments	—	—		—		—		8,346		8,346
Unrealized gain on securities available for sale	—	—		—		—		5,589		5,589
Loss on cash flow hedges	—	—		—		—		(1,492)		(1,492)
Net loss	—	—		—		(100,222)		—		(100,222)
Balance as of September 30, 2024	313,977,403	$	3	$	6,053,917	$	(3,209,226)	$	(9,122)	$	2,835,572
Issuance of common stock upon exercise of stock options	2,762,075	—		30,700		—		—		30,700
Issuance of common stock, employee share purchase plan	204,650	—		5,092		—		—		5,092
Repurchases of common stock	(3,526,590)	—		(250,000)		—		—		(250,000)
Vesting of restricted stock units	2,317,736	—		—		—		—		—
Vesting of warrants for common stock	—	—		86,776		—		—		86,776
Stock-based compensation	—	—		130,806		—		—		130,806
Tax withholding on stock-based compensation	—	—		(95,335)		—		—		(95,335)
Foreign currency translation adjustments	—	—		—		—		(35,469)		(35,469)
Unrealized loss on securities available for sale	—	—		—		—		(2,873)		(2,873)
Loss on cash flow hedges	—	—		—		—		(89)		(89)
Net income	—	—		—		80,360		—		80,360
Balance as of December 31, 2024	315,735,274	$	3	$	5,961,956	$	(3,128,866)	$	(47,553)	$	2,785,540

(1)The share amounts listed above combine Class A and Class B stock.

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Six Months Ended December 31,
	2025		2024
Cash flows from operating activities
Net income (loss)	$	210,280	$	(19,862)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Provision for losses	376,905		312,804
Amortization of premiums and discounts on loans	(143,999)		(111,297)
Gain on sales of loans	(304,280)		(188,900)
Gain on extinguishment of debt	(1,537)		(82,418)
Changes in fair value of assets and liabilities	1,905		4,622
Amortization of commercial agreement assets	12,815		28,511
Amortization of debt issuance costs	14,072		12,990
Accrued interest on securities available for sale	(18,272)		(26,618)
Commercial agreement warrant expense	102,184		194,039
Stock-based compensation	163,653		180,331
Depreciation and amortization	140,922		101,614
Other	(19,095)		(2,151)
Change in operating assets and liabilities:
Purchases and origination of loans held for sale	(1,477,398)		(2,262,419)
Proceeds from the sale of loans held for sale	1,476,673		2,262,441
Accounts receivable, net	149,916		143,781
Other assets	(39,030)		(27,421)
Accounts payable	(25,592)		9,607
Payable to third-party loan buyers	(81,372)		(2,398)
Accrued interest payable	5,054		1,894
Accrued expenses and other liabilities	4,505		(20,266)
Net cash provided by operating activities	548,310		508,884
Cash flows from investing activities
Purchases and origination of loans held for investment	(22,462,467)		(15,051,906)
Proceeds from the sale of loans held for investment	9,605,927		5,264,335
Principal repayments and other loan servicing activity	11,249,582		8,661,493
Additions to property, equipment and software	(110,069)		(88,057)
Purchases of securities available for sale	(214,397)		(184,885)
Proceeds from maturities and repayments of securities available for sale	426,676		720,570
Other investing inflows	141		36,383
Other investing outflows	—		(22,000)
Net cash used in investing activities	(1,504,608)		(664,067)
Cash flows from financing activities
Proceeds from the issuance of convertible notes	—		920,000
Proceeds from the issuance of funding debt	17,273,024		7,893,354
Proceeds from issuance of notes and certificates by securitization trust	1,100,000		750,000
Principal repayments of funding debt	(15,850,765)		(7,548,552)
Principal repayments of notes issued by securitization trust	(1,100,000)		—
Payment of debt issuance costs	(10,696)		(23,070)
Extinguishment of convertible debt	(25,758)		(1,012,856)
Proceeds from exercise of common stock options and warrants and contributions to ESPP	104,098		39,388
Repurchase of common stock	—		(250,000)
Taxes paid related to net share settlement of equity awards	(193,236)		(158,543)
Net cash provided by financing activities	1,296,666		609,721
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,219)		(12,780)
Net increase in cash, cash equivalents and restricted cash	338,149		441,758
Cash, cash equivalents and restricted cash, beginning of period	1,756,423		1,295,399
Cash, cash equivalents and restricted cash, end of period	$	2,094,572	$	1,737,157

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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AFFIRM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT.

(Unaudited)

(in thousands)


	Six Months Ended December 31,
	2025		2024
Reconciliation to amounts on consolidated balance sheets (as of period end)
Cash and cash equivalents	$	1,527,880	$	1,200,381
Restricted cash	566,692		536,776
Total cash, cash equivalents and restricted cash	$	2,094,572	$	1,737,157


	Six Months Ended December 31,
	2025		2024
Supplemental disclosures of cash flow information
Cash payments for interest expense	$	205,789	$	201,129
Cash paid for operating leases	8,443		8,322
Cash paid for income taxes	2,233		1,110
Supplemental disclosures of non-cash investing and financing activities
Stock-based compensation included in capitalized internal-use software	99,521		94,186
Securities retained under unconsolidated securitization transactions	44,608		41,940
Right of use assets obtained in exchange for operating lease liabilities	11,513		—

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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1. Business Description

Affirm Holdings, Inc. (“Affirm,” the “Company,” “we,” “us,” or “our”), headquartered in San Francisco, California, provides consumers with a simpler, more transparent, and flexible alternative to traditional payment options. Our mission is to deliver honest financial products that improve lives. Through our next-generation commerce platform, agreements with originating banks, and capital markets partners, we enable consumers to confidently pay for a purchase over time. When a consumer applies for a loan through our platform, the loan is underwritten using our proprietary risk model, and once approved, the consumer selects their preferred repayment option. Loans are directly originated or funded and issued by our originating bank partners.

Merchants partner with us to transform the consumer shopping experience and to acquire and convert consumers more effectively through our frictionless point-of-sale payment solutions. Consumers get the flexibility to buy now and make simple regular payments for their purchases and merchants see increased average order value, repeat purchase rates, and an overall more satisfied consumer base. Unlike legacy payment options and our competitors’ product offerings, which charge deferred or compounding interest and unexpected costs, we disclose up-front to consumers exactly what they will owe — no hidden fees, no deferred interest, no penalties.

On June 26, 2025, the Company filed a certificate of conversion with the Secretary of State of the State of Delaware and filed articles of conversion and articles of incorporation with the Secretary of State of the State of Nevada, which as of July 1, 2025, effected a change in our jurisdiction of incorporation from Delaware to Nevada.

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), disclosure requirements for interim financial information, and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2025. The balance sheet as of June 30, 2025 has been derived from the audited financial statements at that date. Management believes these interim condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

Our interim condensed financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all wholly owned subsidiaries and variable interest entities (“VIEs”), in which we have a controlling financial interest. These include various business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and certain asset-backed securitization transactions. All intercompany accounts and transactions have been eliminated in consolidation. Within the interim condensed consolidated financial statements and tables presented in the accompanying notes, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes.

Our VIE variable interests arise from contractual, ownership, or other monetary interests in the entity, which changes with fluctuations in the fair value of the entity’s net assets. We consolidate a VIE when we are deemed to be the primary beneficiary. We assess whether or not we are the primary beneficiary of a VIE on an ongoing basis.

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Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts in the interim condensed consolidated financial statements and the accompanying notes. Material estimates that are particularly susceptible to significant change relate to determination of the allowance for credit losses, capitalized internal-use software development costs, valuation allowance for deferred tax assets, loss on loan purchase commitment, discount on directly originated loans, the evaluation for impairment of intangible assets and goodwill, the fair value of available for sale debt securities including retained interests in our securitization trusts and residual interest in structured transactions, the fair value of risk sharing arrangements, and stock-based compensation. We base our estimates on historical experience, current events, and other factors we believe to be reasonable under the circumstances. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results will be materially affected.

These estimates are based on information available as of the date of the interim condensed consolidated financial statements; therefore, actual results could differ materially from those estimates.

Significant Accounting Policies

There were no material changes to our significant accounting policies as disclosed in Note 2. Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, which was filed with the SEC on August 28, 2025.

Recent Accounting Pronouncements Not Yet Adopted

Income Taxes

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance is expected to increase transparency and usefulness of income tax disclosures through improvements to the rate reconciliation, income taxes paid, and other disclosure requirements. The ASU is effective for fiscal years beginning after December 15, 2024 and should be applied on a prospective basis, although retrospective application is permitted. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. We will apply the guidance beginning with our Annual Report on Form 10-K for the fiscal year ended June 30, 2026. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Reporting Comprehensive Income

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. Subsequent to the issuance of ASU 2024-03, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The new guidance requires disclosure, in the notes to the financial statements, specified information about certain income statement costs and expenses for each interim and annual reporting period. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, and should be applied on a prospective basis, although retrospective application is permitted. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Debt with Conversion and Other Options

In November 2024, the FASB issued ASU 2024-04, “Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments”. The new guidance clarifies the requirements for determining whether certain settlements of convertible debt should be accounted for as an induced

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conversion. The ASU is effective for fiscal years beginning after December 15, 2025 and interim periods within those annual reporting periods, and should be applied on a prospective basis, although retrospective application is permitted. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. The new guidance introduces a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. The ASU is effective for fiscal years beginning after December 15, 2025 and interim periods within those annual reporting periods, and should be applied on a prospective basis. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”. The new guidance primarily changes the software cost capitalization criteria and modifies the website development cost guidance. The ASU is effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods, and may be applied on a prospective, modified transition, or retrospective basis approach. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Derivatives and Hedging

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”. The new guidance is primarily intended to enable entities to achieve and maintain hedge accounting for a broader group of highly effective economic hedges. The ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, and should be applied on a prospective basis. The amendments may also be applied to hedging relationships existing as of the date of adoption. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

Interim Reporting

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”. The new guidance primarily clarifies the required interim disclosure requirements. The ASU is effective for fiscal years beginning after December 15, 2027 and interim periods within those annual reporting periods, and may be applied on either a prospective or retrospective basis. Early adoption is permitted. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures.

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3. Revenue

The following table presents our revenue disaggregated by revenue source (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Merchant network revenue	$	328,380	$	244,895	$	579,527	$	429,234
Card network revenue	73,035		58,142		142,365		105,622
Interest income	493,626		409,367		947,749		786,431
Gain on sales of loans	185,231		125,287		304,280		188,900
Servicing income	42,748		28,690		82,437		54,674
Total revenue, net	$	1,123,019	$	866,381	$	2,056,357	$	1,564,861

Merchant Network Revenue — Revenue from Contracts with Customers

Merchant network revenue primarily consists of merchant fees. Merchant partners (or integrated merchants) are generally charged a fee based on gross merchandise volume (“GMV”) processed through the Affirm platform. The fees vary depending on the individual arrangement between us and each merchant and on the terms of the product offering. The fee is recognized at the point in time the merchant successfully confirms the transaction, which is when the terms of the executed merchant agreement are fulfilled.

Our contracts with merchants are defined at the transaction level and do not extend beyond the service already provided (i.e., each transaction represents a separate contract). The fees collected from merchants for each transaction are determined as a percentage of the value of the goods purchased by the consumer from merchants and consider a number of factors including the end consumer’s credit risk and financing term. We do not have any capitalized contract costs, and do not carry any material contract balances.

Our service comprises a single performance obligation to merchants to facilitate transactions with consumers. From time to time, we offer merchants incentives to promote our platform to their customers, such as fee reductions or rebates. These amounts are recorded as a reduction to merchant network revenue.

We may originate certain loans via our wholly-owned subsidiaries, with zero or below market interest rates. In these instances, the par value of the loans originated is in excess of the fair market value of such loans, resulting in a loss on loan origination, which we record as a reduction to merchant network revenue. In certain cases, the losses incurred on loans originated for a merchant may exceed the total merchant network revenue earned on those loans. We record the excess loss amounts as a sales and marketing expense.

A portion of merchant network revenue relates to affiliate network revenue, which is generated when a user makes a purchase on a merchant’s website after being directed from an advertisement on Affirm’s website or mobile application. We earn a fixed placement fee and/or commission as a percentage of the associated sale. Revenue is recognized at the point in time when the performance obligation has been fulfilled, which is when the sale occurs. Affiliate network revenue was $40.2 million and $71.1 million for the three and six months ended December 31, 2025, respectively, and $35.4 million and $60.4 million for the three and six months ended December 31, 2024, respectively.

We reviewed merchant network revenue by merchant as a percentage of total revenue for the three and six months ended December 31, 2025 and 2024, and no individual merchant accounted for 10% or more of total revenue.

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Card Network Revenue — Revenue from Contracts with Customers

We have agreements with card-issuing partners to facilitate the issuance of physical and one-time-use virtual cards to be used by consumers at checkout. Prior to purchase, consumers can apply at Affirm.com or via the Affirm App and, upon approval, use a physical or virtual card to complete their purchase online or in-store. Eligible consumers can also use the Affirm Card, a card issued by a card-issuing partner to pay in full or pay later, by using a unique post-purchase feature that allows them to instantly apply for an installment loan for any eligible debit transaction. Where applicable, our originating bank partner, or wholly-owned subsidiaries, then originates a loan to the consumer after the transaction is confirmed by the merchant. The merchant is charged interchange fees for each successful card transaction, and a portion of this revenue is shared with us by our card-issuing partners.

Merchants may also elect to utilize our agreement with card-issuing partners as a means of integrating Affirm services. Similarly, for these arrangements with integrated merchants, the merchant is charged interchange fees for each successful card transaction and a portion of this revenue is shared with us. From time to time, we offer certain integrated merchants promotional incentives to promote our platform to their customers, such as rebates of interchange fees incurred by the merchant. These amounts are recorded as a reduction of card network revenue.

Our contracts with our card-issuing partners are defined at the transaction level and do not extend beyond the service already provided. The revenue collected from card-issuing partners for each transaction are determined as a percentage of the interchange fees charged on transactions facilitated on the payment processor network, and revenue is recognized at the point in time the transaction is completed successfully. The amounts collected are presented in revenue, net of associated transaction-related processing fees paid to our card-issuing partners. We have concluded that the revenue collected does not give rise to a future material right because the pricing of each transaction does not depend on the volume of prior successful transactions. We do not have any capitalized contract costs, and do not carry any material contract balances.

Our service comprises a single performance obligation to the card-issuing partner to facilitate transactions with consumers.

A portion of card network revenue relates to incentive payments from card network partners, which we are eligible to receive for reaching certain cumulative volume targets on program cards issued by our card-issuing partners. We earn incentive revenue as a percentage of each associated transaction and estimate the applicable percentage based on observed cumulative volume on program cards. Revenue is recognized at the point in time when the performance obligation has been fulfilled, which is when the transaction is completed successfully.

Interest Income

Interest income consisted of the following components (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Contractual interest income on unpaid principal balance (1)	$	428,581	$	364,962	$	828,689	$	702,126
Amortization of discount on loans	85,904		64,115		157,220		120,812
Amortization of premiums on loans	(6,977)		(4,882)		(13,221)		(9,515)
Interest receivable charged-off, net of recoveries (2)	(13,882)		(14,828)		(24,940)		(26,992)
Total interest income	$	493,626	$	409,367	$	947,749	$	786,431

(1)Contractual interest income on unpaid principal balance, for the three and six months ended December 31, 2024, was previously reported as $375.9 million and $713.1 million, respectively. These amounts have been corrected herein; the correction is not material to the previously issued financial statements.

(2)Interest receivable charged-off, net of recoveries, for the three and six months ended December 31, 2024, was previously reported as $25.8 million and $37.9 million, respectively. These amounts have been corrected herein; the correction is not material to the previously issued financial statements.

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We accrue interest income using the effective interest method, which includes the amortization of any discounts or premiums on loan receivables created upon the purchase of a loan from our originating bank partners or upon the origination of a loan. Interest income on a loan is accrued daily, based on the finance charge disclosed to the consumer, over the term of the loan based upon the principal outstanding. The accrual of interest on a loan is suspended if a formal dispute with the consumer involving either Affirm or the merchant of record is opened, or a loan is 120 days past due. Upon the resolution of a dispute with the consumer, the accrual of interest is resumed, and any interest that would have been earned during the disputed period is retroactively accrued. As of December 31, 2025 and June 30, 2025, the balance of loans held for investment on non-accrual status was $7.2 million and $6.2 million, respectively.

The account is charged-off in the period if the account becomes 120 days past due or meets other charge-off policy requirements. Past due status is based on the contractual terms of the loans. Previously recognized interest receivable from charged-off loans that is accrued but not collected from the consumer is charged-off.

Gain on Sales of Loans

We sell certain loans we originate or purchase from our originating bank partners directly to third-party investors or to securitizations. We recognize a gain or loss on sale of loans sold to third parties or to unconsolidated securitizations by calculating the difference between the proceeds received and the carrying value of the loan. This amount is adjusted for the initial recognition of any assets or liabilities incurred upon sale. These generally include a net servicing asset or liability in connection with our ongoing obligation to continue to service the loans and a liability in connection with our loan repurchase obligation for loans that do not meet certain contractual requirements and such information about the loan was unknown at the time of sale. Additionally, we recognize a risk sharing asset or liability in certain arrangements where payments are made or received based on the actual versus expected loan performance, as contractually agreed upon with the third party.

Refer to Note 9. Securitization and Variable Interest Entities for further discussion on transfers of loan receivables and Note 12. Fair Value of Financial Assets and Liabilities for further discussion of risk sharing arrangements.

Servicing Income

Servicing income includes contractual fees specified in our servicing agreements with third-party loan owners and unconsolidated securitizations that are earned from providing professional services to manage loan portfolios on their behalf. The servicing fee is calculated on a daily basis by multiplying a set fee percentage (as outlined in the executed agreements with third-party loan owners) by the outstanding loan principal balance. Servicing income also includes fair value adjustments for servicing assets and servicing liabilities.

4. Loans Held for Investment and Allowance for Credit Losses

Loans held for investment consisted of the following (in thousands):


	December 31, 2025		June 30, 2025
Unpaid principal balance	$	8,806,208	$	7,050,446
Accrued interest receivable	89,288		67,953
Premiums on loans held for investment	11,066		9,818
Less: Discount due to loss on loan purchase commitment	(91,197)		(75,124)
Less: Discount due to loss on directly originated loans	(41,823)		(27,559)

Total loans held for investment	$	8,773,542	$	7,025,534

Loans held for investment includes loans originated through our originating bank partners and directly originated loans. Loans that are underwritten using our technology platform and originated by our originating bank

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partners are later purchased by us. We purchased loans from our originating bank partners in the amount of $10.8 billion and $19.5 billion during the three and six months ended December 31, 2025, respectively, and $8.1 billion and $14.5 billion during the three and six months ended December 31, 2024, respectively. We directly originated $2.8 billion and $4.7 billion of loans during the three and six months ended December 31, 2025, respectively, and $1.7 billion and $3.0 billion during the three and six months ended December 31, 2024, respectively.

Our portfolio consists of interest bearing and non-interest bearing consumer loans with original term lengths of up to sixty months originated in markets including the U.S., U.K., and Canada, with the majority of loans originated within the U.S. While we view our loan portfolio as a single product segment, unsecured consumer loans, we consider factors such as country of origin, loan product, origination channel, merchant and various borrower characteristics to predict future losses.

We closely monitor the performance of our loan receivables to manage and evaluate our exposure to credit risk. Credit risk management begins with initial underwriting and continues through to full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models that leverage detailed information from external sources, such as credit bureaus where available, as well as the consumer’s prior repayment history on our platform. We evaluate the credit quality of our loan receivable based on the aging status of the loan.

The following tables present an aging analysis of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination, of loans held for investment by delinquency status as of December 31, 2025 and June 30, 2025 (in thousands):


	December 31, 2025
	Amortized Costs Basis by Fiscal Year of Origination
	2026		2025		2024		2023		2022		Prior		Total
Current – 3 calendar days past due	$	6,567,676	$	1,529,226	$	110,407	$	23,958	$	1,715	$	109	$	8,233,091
4 – 29 calendar days past due	144,752		74,619		2,533		534		55		3		222,496
30 – 59 calendar days past due	53,289		35,537		1,101		164		14		2		90,107
60 – 89 calendar days past due	36,303		32,686		1,073		87		11		—		70,160
90 – 119 calendar days past due(1)	29,809		37,181		1,255		125		21		10		68,401
Total amortized cost basis	$	6,831,829	$	1,709,249	$	116,369	$	24,868	$	1,816	$	124	$	8,684,255

(1)Includes $68.3 million of loan receivables as of December 31, 2025 that are 90 days or more past due, but are not on non-accrual status.


	June 30, 2025
	Amortized Costs Basis by Fiscal Year of Origination
	2025		2024		2023		2022		2021		Prior		Total
Current – 3 calendar days past due	$	6,268,050	$	294,778	$	50,958	$	4,170	$	133	$	28	$	6,618,117
4 – 29 calendar days past due	156,941		9,713		1,347		145		10		—		168,156
30 – 59 calendar days past due	62,250		4,367		288		35		4		—		66,944
60 – 89 calendar days past due	51,095		5,251		255		30		2		—		56,633
90 – 119 calendar days past due(1)	41,889		5,571		228		34		2		8		47,732
Total amortized cost basis	$	6,580,225	$	319,680	$	53,076	$	4,414	$	151	$	36	$	6,957,582

(1)Includes $47.6 million of loan receivables as of June 30, 2025 that are 90 days or more past due, but are not on non-accrual status.

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The following table presents net charge-offs by fiscal year of origination as of December 31, 2025 (in thousands):


	December 31, 2025
	Net Charge-offs by Fiscal Year of Origination
	2026	2025	2024	2023	2022	Prior	Total
Current period charge-offs	(26,440)	(271,232)	(17,039)	(1,321)	(394)	(33)	(316,459)
Current period recoveries	411	15,630	10,730	4,061	1,768	454	33,054
Current period net charge-offs	(26,029)	(255,602)	(6,309)	2,740	1,374	421	(283,405)

We maintain an allowance for credit losses at a level sufficient to absorb expected credit losses based on evaluating known and inherent risks in our loan portfolio. The allowance for credit losses reflects our estimate of expected lifetime credit losses as of the balance sheet date. Our estimate considers the remaining contractual term of our loan portfolio, historical credit losses, consumer payment history and estimated recoveries. We also consider current economic conditions and evolving consumer behavioral patterns. Adjustments to the allowance for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented within our interim condensed consolidated statements of operations and comprehensive income (loss). When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged off against the allowance for credit losses. Loans are charged off in accordance with our charge-off policy, as the contractual principal becomes 120 days past due. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses.

The following table details activity in the allowance for credit losses, including charge-offs, recoveries and provision for loan losses (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Balance at beginning of period	$	425,801	$	350,606	$	396,929	$	309,097
Provision for loan losses	208,175		147,069		364,579		301,874
Charge-offs	(171,864)		(142,912)		(316,459)		(264,360)
Recoveries of charged-off receivables	15,991		9,068		33,054		17,220
Balance at end of period	$	478,103	$	363,831	$	478,103	$	363,831

Loan Modifications for Borrowers Experiencing Financial Difficulty

We have a loan modification program for borrowers experiencing financial difficulty if certain eligibility criteria are met. A loan is evaluated for modification program eligibility when a borrower self-reports financial hardship, either when a borrower contacts us directly or upon making contact with the borrower to determine eligibility when a loan payment is past due. The objectives of the loan modification program are to offer borrowers assistance during times of financial stress, increase collections, and minimize losses.

We have two primary loan modification strategies: payment deferrals and loan re-amortization. A payment deferral provides the borrower relief by extending the due date for the next payment due. While a borrower may obtain more than one deferral, the total deferral period may not exceed three months. A loan re-amortization provides the borrower relief by lowering monthly payments through extending the term length of the loan; however, the total remaining term may not exceed twenty-four months. In addition, the total interest due from the consumer will not exceed the initial total interest due prior to modification, and a loan may not be re-amortized more than once.

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The following tables present the amortized cost basis of loans excluding accrued interest receivable that were modified for borrowers experiencing financial difficulty during the three and six months ended December 31, 2025 and 2024, by type of modification (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2025			2024			2025			2024
Payment deferral	$	15,632		$	10,189		$	20,457		$	16,096
Loan re-amortization	155			170			252			274
Total	$	15,787		$	10,359		$	20,709		$	16,370
% of total loan receivables outstanding	0.18		%	0.15		%	0.24		%	0.24		%

With respect to borrowers who received payment deferrals during the three and six months ended December 31, 2025 and 2024, the length of each deferral period was one month.

With respect to borrowers who received a loan re-amortization during the three and six months ended December 31, 2025 and 2024, the payment amount was reduced by half and the term of the loan was extended between one month and twelve months.

During the modification process, the loans are made current, and payment schedules for these loans are updated according to the modified terms. We closely monitor the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. We hold an allowance for credit losses for modified loans classified as held for investment. Our allowance estimate considers whether a loan has been modified, the delinquency status of the loan on the date of modification, and the increased likelihood that such loan may become delinquent or charge-off in the future.

The following tables present the delinquency status as of December 31, 2025 and 2024, by amortized cost basis excluding accrued interest receivable, of loan receivables that have been modified within the last 12 months where the borrower was experiencing financial difficulty at the time of modification (in thousands):


	December 31, 2025
	Payment Deferral		Loan Re-amortization		Total
Current – 3 calendar days past due	$	14,628	$	134	$	14,762
4 – 29 calendar days past due	3,309		67		3,376
30 – 59 calendar days past due	1,637		38		1,675
60 – 89 calendar days past due	1,113		33		1,146
90 – 119 calendar days past due	1,035		20		1,055
Total amortized cost basis	$	21,722	$	292	$	22,014


	December 31, 2024
	Payment Deferral		Loan Re-amortization		Total
Current – 3 calendar days past due	$	11,021	$	217	$	11,238
4 – 29 calendar days past due	3,085		67		3,152
30 – 59 calendar days past due	1,878		35		1,913
60 – 89 calendar days past due	1,632		32		1,664
90 – 119 calendar days past due	1,789		31		1,820
Total amortized cost basis	$	19,405	$	382	$	19,787

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With respect to modifications during the 12 months preceding December 31, 2025 and 2024, respectively, where the borrower was experiencing financial difficulty at the time of modification, the amortized cost basis of loans which have been charged off was $4.4 million and $17.1 million, respectively.

5. Balance Sheet Components

Accounts Receivable, net

Our accounts receivable consist primarily of amounts due from payment processors, merchant partners, affiliate network partners and servicing fees due from third-party loan owners. For each of these groups, we evaluate accounts receivable to determine management’s current estimate of expected credit losses based on historical experience and future expectations and record an allowance for credit losses. Our allowance for credit losses with respect to accounts receivable was $22.5 million and $18.8 million as of December 31, 2025 and June 30, 2025, respectively.

Property, Equipment and Software, net

Property, equipment and software, net consisted of the following (in thousands):


	December 31, 2025		June 30, 2025
Internally developed software	$	1,180,344	$	987,399
Leasehold improvements	25,690		21,990
Computer equipment	11,178		9,555
Furniture and equipment	9,692		9,007
Total property, equipment and software, at cost	$	1,226,904	$	1,027,952
Less: Accumulated depreciation and amortization	(587,014)		(455,315)
Total property, equipment and software, net	$	639,891	$	572,637

Depreciation and amortization expense on property, equipment and software was $75.5 million and $140.8 million for the three and six months ended December 31, 2025, respectively, and $54.3 million and $100.4 million for the three and six months ended December 31, 2024, respectively.

No impairment losses related to property, equipment and software were recorded during the three and six months ended December 31, 2025 and 2024.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill during the six months ended December 31, 2025 were as follows (in thousands):


Balance as of June 30, 2025	$	534,156

Adjustments (1)	(715)
Balance as of December 31, 2025	$	533,441

(1)Adjustments to goodwill during the six months ended December 31, 2025 primarily pertained to foreign currency translation adjustments.

No impairment losses related to goodwill were recorded during the three and six months ended December 31, 2025 and 2024.

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Intangible assets consisted of the following (in thousands):


	December 31, 2025
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	37,826	$	(37,826)	$	—	0.0
Developed technology	39,431		(39,387)		44		0.8
Assembled workforce	12,490		(12,490)		—		0.0
Trademarks and domains	1,448		(1,448)		—		0.0
Trademarks, licenses and domains	12,225		—		12,225		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	103,770	$	(91,151)	$	12,619


	June 30, 2025
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	37,845	$	(37,845)	$	—	0.0
Developed technology	39,443		(39,369)		74		1.3
Assembled workforce	12,490		(12,490)		—		0.0
Trademarks and domains	1,450		(1,355)		95		0.6
Trademarks, licenses and domains	12,416		—		12,416		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	103,994	$	(91,059)	$	12,935

Amortization expense for intangible assets was $0.1 million for both the three and six months ended December 31, 2025, respectively, and $0.6 million and $1.2 million for the three and six months ended December 31, 2024, respectively. No impairment losses related to intangible assets were recorded during the three and six months ended December 31, 2025 and 2024.

The expected future amortization expense of these intangible assets was immaterial as of December 31, 2025.

Commercial Agreement Assets

In 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. We amortize the asset over the expected benefit period, which was extended from four to nine years in November 2025 upon execution of a commercial agreement that will supersede and replace the previous commercial agreement. For the three and six months ended December 31, 2025, we recognized amortization expense of $1.9 million and $7.1 million, respectively, and $5.2 million and $10.4 million for the three and six months ended December 31, 2024, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of December 31, 2025, the accumulated amortization is $128.5 million and the remaining net asset value is $5.1 million, which will be recognized over the remaining useful life of 5.1 years. Refer to Note 13. Stockholders’ Equity for further discussion of the warrants.

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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 and six months ended December 31, 2025, we recorded amortization expense related to the commercial agreement asset of $2.8 million and $5.7 million, respectively, and $9.0 million and $18.1 million for the three and six months ended December 31, 2024, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of December 31, 2025, the accumulated amortization is $231.2 million and the remaining net asset value is $39.4 million, which will be recognized over the remaining useful life of 3.5 years.

Other Assets

Other assets consisted of the following (in thousands):


	December 31, 2025		June 30, 2025
Processing reserves	$	125,197	$	90,826
Prepaid expenses	61,128		47,027
Equity securities held at cost	40,396		40,277
Risk sharing assets	38,992		43,179
Operating lease right-of-use assets	25,904		19,124
Prepaid payroll taxes for stock-based compensation	25,470		25,188
Foreign deferred tax asset	9,574		13,929
Other assets	18,325		15,810
Total other assets	$	344,986	$	295,360

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	December 31, 2025		June 30, 2025
Accrued expenses	$	85,398	$	72,813
Operating lease liability	42,277		31,943
Other liabilities	56,783		52,516
Total accrued expenses and other liabilities	$	184,459	$	157,272

6. Leases

We lease office space under operating leases with various expiration dates through 2034. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from nine months to one year. As of December 31, 2025, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to nine years.

Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. We are required to post collateral for the letters of credit in the form of cash or eligible securities. As of December 31, 2025 and June 30, 2025, the collateral totaled $4.7 million and $4.5 million, respectively, which was in the form of securities that have been classified as securities available for sale at fair value in the interim condensed consolidated balance sheets.

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Operating lease expense is as follows (in thousands):


	Three Months Ended December 31,		Six Months Ended December 31,
	2025	2024	2025	2024
Operating lease expense (1)	$3,230	$2,865	$6,338	$5,718

(1)Lease expenses for our short-term leases were immaterial for the periods presented.

Lease term and discount rate information are summarized as follows:


						December 31, 2025
Weighted average remaining lease term (in years)						6.3
Weighted average discount rate						6.3%

As of December 31, 2025, future minimum lease payments are as follows, by fiscal year (in thousands):


2026 (remaining six months)	$	8,132
2027	6,752
2028	6,411
2029	6,551
2030	6,767
Thereafter	17,738
Total lease payments	52,351
Less imputed interest	(10,074)
Present value of total lease liabilities	$	42,277

7. Commitments and Contingencies

Loan Repurchase Obligations

Under the normal terms of our whole loan sales to third-party investors, we may become obligated to repurchase loans from investors in certain instances where a breach in representations and warranties is identified. Generally, a breach in representations and warranties could occur where a loan has been identified as subject to verified or suspected fraud, or in cases where a loan was serviced or originated in violation of Affirm’s guidelines. We would only experience a loss if the contractual repurchase price of the loan exceeds the fair value on the repurchase date. As of December 31, 2025, the aggregate outstanding balance of loans held by third-party investors or unconsolidated VIEs was $9.7 billion, of which we have recorded a repurchase liability of $8.1 million within accrued expenses and other liabilities in our interim condensed consolidated balance sheets.

Legal Proceedings

From time to time, we are subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, we establish an accrued liability for legal proceedings and claims when those matters present loss contingencies which are both probable and reasonably estimable.

Kusnier v. Affirm Holdings, Inc.

On December 8, 2022, plaintiff Mark Kusnier filed a putative class action lawsuit against Affirm, Max Levchin, and Michael Linford in the U.S. District Court for the Northern District of California (the “Kusnier

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action”). On May 5, 2023, plaintiffs Kusnier and Chris Meinsen filed their first amended complaint alleging that the defendants (i) caused Affirm to make materially false and/or misleading statements and/or failed to disclose that Affirm’s BNPL service facilitated excessive consumer debt (including with respect to certain for-profit educational institutions), regulatory arbitrage, and data harvesting; (ii) made false and/or misleading statements about certain public regulatory actions; and (iii) made false and/or misleading statements about whether Affirm’s business model was vulnerable to interest rate changes. On December 20, 2023, the Court granted Affirm’s motion to dismiss the first amended complaint with leave to amend. On January 19, 2024, plaintiffs filed their second amended complaint, which contained only the allegations from the first amended complaint relating to false and/or misleading statements about whether Affirm’s business model was vulnerable to interest rate changes. In light of the above, plaintiffs assert that Affirm violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and that Levchin and Linford violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, unspecified compensatory and punitive damages, and costs and expenses. Affirm filed its motion to dismiss the second amended complaint on February 2, 2024. On August 26, 2024, the Court granted Affirm’s motion to dismiss with leave to amend. On September 23, 2024, plaintiffs filed a motion for leave to file a motion for reconsideration of the Court's Order granting Affirm's motion to dismiss. On August 14, 2025, the Court resolved plaintiffs' motion in Affirm's favor. On September 30, 2025, the Court dismissed the action with prejudice. On October 29, 2025, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit.

Quiroga v. Levchin, et al.

On March 29, 2023, plaintiff John Quiroga filed a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California (the “Quiroga action”) against Affirm, as a nominal defendant, and certain of Affirm’s current officers and directors as defendants based on allegations substantially similar to those in the Kusnier action at the time of filing. The Quiroga complaint purports to assert claims on Affirm’s behalf for contribution under the federal securities laws, breaches of fiduciary duty, unjust enrichment, and waste of corporate assets, and seeks corporate reforms, unspecified damages and restitution, and fees and costs. On May 1, 2023, the action was stayed by agreement of the parties. The stay can be lifted at the request of either party or upon certain conditions relating to the resolution of the Kusnier action.

Jeffries v. Levchin, et al.

On May 24, 2023, plaintiff Sabrina Jeffries filed a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California (the “Jeffries action”) against Affirm, as a nominal defendant, and certain of Affirm's current officers and directors as defendants based on allegations substantially similar to those in the Kusnier and Quiroga actions at the time of filing. The Jeffries complaint purports to assert claims on Affirm's behalf for breach of fiduciary duties, making false statements under federal securities law, unjust enrichment, waste of corporate assets, and aiding and abetting breach of fiduciary duties, and seeks unspecified damages, equitable relief, and fees and costs. On August 15, 2023, the action was stayed by agreement of the parties. The stay can be lifted at the request of either party or upon certain conditions relating to the resolution of the Kusnier action.

Vallieres v. Levchin, et al.

On September 14, 2023, plaintiff Michael Vallieres filed a shareholder derivative lawsuit in the U.S. District Court for the District of Delaware against Affirm, as a nominal defendant, and certain of Affirm’s current officers and directors as defendants based on allegations substantially similar to those in the Kusnier, Quiroga, and Jeffries actions at the time of filing. The Vallieres complaint purports to assert claims on Affirm's behalf for breach of fiduciary duties, gross management, abuse of control, unjust enrichment, and contribution, and seeks unspecified damages, equitable relief, and fees and costs. On November 30, 2023, the case was stayed by agreement of the parties.

We have determined, based on current knowledge, that the aggregate amount or range of losses that are estimable with respect to our legal proceedings, including the matters described above, would not have a material adverse effect within our consolidated financial position, results of operations or cash flows. Amounts accrued as of

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December 31, 2025 were not material. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties, and cannot be predicted with certainty.

8. Debt

Debt outstanding as of December 31, 2025 includes amounts classified within our interim condensed consolidated balance sheets as funding debt, notes issued by securitization trusts, and convertible senior notes. Secured debt includes borrowings from our warehouse facilities, variable funding notes, notes issued by securitization trusts and sale and repurchase agreements. Unsecured debt includes outstanding convertible senior notes and any borrowings on our unsecured revolving credit facility.

The following table summarizes the components and terms of our secured and unsecured debt as of December 31, 2025 (in thousands):


	Interest Rate (1)	Unused Commitment Fees	Maturity by Fiscal Year	Borrowing Capacity (2)		Debt Outstanding (3)		Debt Outstanding net of unamortized premiums and discount
Secured debt
Funding debt
US warehouse facilities	5.55%	0.20% - 0.50%	2027 - 2032	5,250,000		1,904,902		1,892,470
International warehouse facilities (4)	4.60%	0.30% - 0.45%	2028 - 2030	693,780		547,982		546,258
Variable funding notes	5.37%	0.30%	2032	1,350,000		597,176		594,402
Sales and repurchase agreements	6.61%	—	2028 - 2029	—		13,716		13,716
Notes issued by securitization trusts	5.18%	—	2029 - 2035	4,850,000		4,850,000		4,834,736
				$	12,143,780	$	7,913,776	$	7,881,581
Unsecured debt
Convertible senior notes:
2026 Notes	—	—	2027	—		221,321		220,856
2029 Notes	0.75%	—	2030	—		920,000		906,802
Revolving credit facility	—	0.20%	2027	330,000		—		—
				$	330,000	$	1,141,321	$	1,127,658
Total				$	12,473,780	$	9,055,097	$	9,009,240

(1)The stated interest rate reflects the fixed or variable interest rate in effect for each of our contractual arrangements as of December 31, 2025, weighted by the outstanding principal balance as of that date. The interest rate resets periodically for our variable rate debt, typically based on a reference rate such as Secured Overnight Financing Rate (“SOFR”) or Canadian Overnight Repo Rate Average (“CORRA”) plus a spread, or an alternative rate based on the cost funds for the lender.

(2)Represents total revolving commitment amount, inclusive of debt outstanding as of December 31, 2025.

(3)Certain loans are pledged as collateral for borrowings in our secured debt facilities, except for our sales and repurchase agreements which are collateralized by securitization notes receivable and certificates retained by the Company and classified as securities available for sale at fair value. The carrying value of these pledged assets was $8.6 billion as of December 31, 2025.

(4)As of December 31, 2025, international facilities finance loan receivables originated in Canada.

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Maturity by Fiscal Year

The aggregate future maturities of our funding debt, notes issued by securitization trusts and convertible notes consists of the following (in thousands):


	December 31, 2025
2026	$	—
2027	757,188
2028	1,156,719
2029	1,262,831
2030	1,861,149
Thereafter	4,017,210
Total	$	9,055,097
Deferred debt issuance costs	(45,857)
Total funding debt, net of deferred debt issuance costs	$	9,009,240

Funding Debt

Warehouse Credit Facilities

Through certain consolidated subsidiaries, which are typically trusts, we enter into secured borrowing arrangements with banks and other financial institutions. Through each of these subsidiaries we enter into a loan or credit and security agreement where we borrow against loans pledged as collateral. Financing terms, including the advance rate and financing spread, vary across these revolving facilities and generally depend on the types of collateral that may be pledged and respective concentration limits. We may continue to pledge new receivables to allow us to borrow up to the commitment amount throughout the revolving period for each facility. The length of the revolving period, the maximum amount we may borrow against pledged collateral balance during the revolving period, and the length of the amortization period prior to the maturity date varies across borrowing facilities depending on negotiated terms.

Borrowings under these agreements are classified as funding debt within our interim condensed consolidated balance sheets and proceeds from the borrowings can only be used for the purposes of funding loans. These borrowing facilities are bankruptcy-remote special-purpose vehicles in which creditors do not have recourse against the general credit of Affirm.

Our funding debt agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of minimum liquidity, maximum leverage, and minimum tangible net worth. As of December 31, 2025, we were in compliance with all applicable covenants in the agreements.

Variable Funding Note

We entered into a syndicated revolving loan agreement through a securitization master trust which funds loans. In connection with the loan agreement, the master trust issued a variable funding note (“VFN”), where borrowings are secured by loan collateral sold to the master trust. Throughout the reinvestment period of the VFN, the master trust periodically issues asset-backed securities, where securitization note proceeds affects the level of utilization of the VFN. Outstanding borrowings under the VFN are classified as funding debt within our interim condensed consolidated balance sheets.

Sale and Repurchase Agreements

We entered into certain sale and repurchase agreements pursuant to our retained interests in our off-balance sheet securitizations where we have sold these securities to a counterparty with an obligation to repurchase at a future date and price. These repurchase agreements have a term equaling the contractual life of the securitization

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notes pledged. We record the debt outstanding under our sale and repurchase agreements within our funding debt in the interim condensed consolidated balance sheets.

Notes Issued by Securitization Trusts

We issue asset-backed securities through securitization trusts using a combination of term, amortizing and revolving structures. Each trust may issue one or more classes of notes, which will be repaid through collections on the loans in accordance with the trust priority of payments. For consolidated securitization trusts, asset-backed notes held by third-party investors are classified as notes issued by securitization trusts within our interim condensed consolidated balance sheets. We defer and amortize debt issuance costs for consolidated securitization trusts on a straight-line basis over the expected life of the notes. Refer to Note 9 Securitization and Variable Interest Entities for additional information.

Revolving Credit Facility

We have a Revolving Credit Agreement with a syndicate of banks for a $330.0 million unsecured revolving credit facility. Proceeds of the borrowings under this facility will be used for general corporate purposes in the ordinary course of business. This facility bears interest at a rate equal to, either (a) for SOFR borrowing, a SOFR rate determined by reference to the forward-looking term SOFR rate for the interest period, plus an applicable margin of 1.75% per annum or (b) for alternative base rate borrowings, a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the rate last quoted by the Wall Street Journal as the U.S. prime rate and (iii) the one-month forward-looking term SOFR rate plus 1.00% per annum, in each case, plus an applicable margin of 0.75% per annum. The facility contains certain financial covenants which may result in an acceleration of the maturity if not maintained, and requires payment of a monthly unused commitment fee of 0.20% per annum on the undrawn balance available.

As of December 31, 2025, we were in compliance with all applicable covenants in the agreement. There were no borrowings outstanding under the facility as of December 31, 2025.

Convertible Senior Notes

2029 Notes

On December 20, 2024, we issued approximately $920.0 million in aggregate principal amount of 0.75% convertible senior notes due 2029 (the “2029 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The total net proceeds from this offering, after deducting debt issuance costs, were approximately $903.1 million. The 2029 Notes represent senior unsecured obligations of the Company. The 2029 Notes will bear interest at a fixed rate of 0.75% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2025. The 2029 Notes mature on December 15, 2029, unless such Notes are earlier converted, redeemed or repurchased in accordance with their terms.

Each $1,000 of principal of the 2029 Notes will initially be convertible into 9.8992 shares of our common stock, which is equivalent to an initial conversion price of approximately $101.02 per share, subject to adjustment upon the occurrence of certain specified events set forth in the indenture governing the 2029 Notes (the “2029 Indenture”). Holders of the 2029 Notes may convert their 2029 Notes at their option at any time on or after September 15, 2029 until close of business on the second scheduled trading day immediately preceding the maturity date of December 15, 2029. Further, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at their option prior to the close of business on the business day immediately preceding September 15, 2029, only under the following circumstances:

1) during any calendar quarter commencing after the calendar quarter ending March 31, 2025 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and

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including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2029 Notes) per $1,000 principal amount of the 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day;

3) if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or

4) upon the occurrence of certain specified corporate events.

Upon conversion of the 2029 Notes, the Company will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election, in respect of the remainder, if any, of the conversion obligation in excess of the aggregate principal amount of the notes being converted. If we satisfy our conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of our common stock, the amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value (as set forth in the “2029 Indenture”) calculated on a proportionate basis for each trading day in a 40 trading day observation period.

No sinking fund is provided for the 2029 Notes. We may redeem for cash all or part of the 2029 Notes on or after December 20, 2027 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any.

If a fundamental change (as defined in the 2029 Indenture) occurs prior to the maturity date, holders of the 2029 Notes may require us to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the 2029 Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. In addition, if specific corporate events occur prior to the maturity date of the 2029 Notes, we will be required to increase the conversion rate for holders who elect to convert their 2029 Notes in connection with such corporate events.

2026 Notes

On November 23, 2021, we issued $1,725 million in aggregate principal amount of 0% convertible senior notes due 2026 (the “2026 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The total net proceeds from this offering, after deducting debt issuance costs, were approximately $1,704 million. The 2026 Notes represent senior unsecured obligations of the Company. The 2026 Notes do not bear interest except in special circumstances described below, and the principal amount of the 2026 Notes does not accrete. The 2026 Notes mature on November 15, 2026.

Each $1,000 of principal of the 2026 Notes will initially be convertible into 4.6371 shares of our common stock, which is equivalent to an initial conversion price of approximately $215.65 per share, subject to adjustment upon the occurrence of certain specified events set forth in the indenture governing the 2026 Notes (the “2026 Indenture”). Holders of the 2026 Notes may convert their 2026 Notes at their option at any time on or after August 15, 2026 until close of business on the second scheduled trading day immediately preceding the maturity date of November 15, 2026. Further, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at

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their option prior to the close of business on the business day immediately preceding August 15, 2026, only under the following circumstances:

1) during any calendar quarter commencing after March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2026 Notes) per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day;

3) if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or

4) upon the occurrence of certain specified corporate events.

Upon conversion of the 2026 Notes, the Company will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election, in respect of the remainder, if any, of the conversion obligation in excess of the aggregate principal amount of the notes being converted. If we satisfy our conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of our common stock, the amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value (as set forth in the “2026 Indenture”) calculated on a proportionate basis for each trading day in a 40 trading day observation period.

No sinking fund is provided for the 2026 Notes. We may not redeem the notes prior to November 20, 2024. We may redeem for cash all or part of the notes on or after November 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest, if any.

If a fundamental change (as defined in the 2026 Indenture) occurs prior to the maturity date, holders of the 2026 Notes may require us to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. In addition, if specific corporate events occur prior to the maturity date of the 2026 Notes, we will be required to increase the conversion rate for holders who elect to convert their 2026 Notes in connection with such corporate events.

Repurchase of a Portion of the 2026 Notes

On May 18, 2025, the Board of Directors authorized the repurchase of up to $200 million in aggregate principal amount of the 2026 Notes (the “May 2025 Authorization”). Note repurchases under the May 2025 Authorization were authorized to be made from time to time during the period commencing July 1, 2025 through December 31, 2025. In anticipation of the expiration of the May 2025 Authorization, on December 17, 2025, the Board of Directors authorized the repurchase of up to $176 million in aggregate principal amount of the 2026 Notes (the “December 2025 Authorization”). Note repurchases under the December 2025 Authorization may be made from time to time during the period commencing January 1, 2026 through November 13, 2026 through open market

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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.

During the three and six months ended December 31, 2025, we paid $0.9 million and $25.8 million, respectively, in cash for the repurchase of $1.0 million and $27.4 million, respectively, aggregate principal amount of our 2026 Notes under the May 2025 Authorization. The carrying amount of the extinguished 2026 Notes was approximately $1.0 million and $27.3 million during the three and six months ended December 31, 2025, respectively, resulting in a $0.04 million and $1.5 million gain, respectively, on early extinguishment of debt. The repurchased 2026 Notes were received and canceled. As of December 31, 2025, $221.3 million in aggregate principal amount of the 2026 Notes remains outstanding.

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,
	2025		2024		2025		2024
Amortization of debt issuance costs (1)
2026 Notes	$	135	$	658	$	271	$	1,427
2029 Notes	841		110		1,682		110
Total amortization of debt issuance costs	$	975	$	768	$	1,953	$	1,537
Coupon interest expense (1) (2)	1,736		227		3,471		227
Total interest expenses related to the convertible notes	$	2,712	$	995	$	5,423	$	1,764

(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.

9. Securitization and Variable Interest Entities

Consolidated VIEs

Warehouse Credit Facilities

We established certain entities, deemed to be VIEs, to enter into warehouse credit facilities for the purpose of purchasing loans from our originating bank partners and funding directly originated loans. Refer to Note 8. Debt for additional information. The creditors of the VIEs have no recourse to the general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets; however, as the servicer of the loans pledged to our funding facilities, we have the power to direct the activities that most significantly impact the VIEs' economic performance. In addition, we retain significant economic exposure to the pledged loans and therefore, we are the primary beneficiary.

Securitizations

We finance the origination and purchase of loans though our asset-backed securitization program using a combination of amortizing, revolving and variable funding structures. In connection with our program, we sponsor and establish trusts (deemed to be VIEs) which issue securities collateralized by the loans we sell to the trust. Securities issued from our asset-backed securitizations are senior or subordinated, based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. For these VIEs, the creditors have no recourse to the

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general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets. Additionally, the assets of the VIEs can be used only to settle obligations of the VIEs.

We consolidate securitization VIEs when we are deemed to be the primary beneficiary. For these VIEs, it is determined that we have the power to direct the activities that most significantly affect the VIEs’ economic performance and the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIEs. Through our role as the servicer, we have the power to direct the activities that most significantly affect the VIEs’ economic performance. In evaluating whether we have a variable interest that could potentially be significant to the VIE, we consider our retained interests. We also earn a servicing fee which has a senior distribution priority in the payment waterfall. The servicing fees earned from these arrangements are considered variable interests when we also hold significant retained interests in the VIEs and they would absorb losses or receive benefits that are more than an insignificant amount of the VIEs' expected performance.

For the primary beneficiary evaluation, we consider both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIEs. We perform reassessments an ongoing basis to evaluate whether we are the primary beneficiary of the VIEs.

Where we consolidate the securitization trusts, the loans held in the securitization trusts are included in loans held for investment, and the notes sold to third-party investors are recorded in notes issued by securitization trusts in the interim condensed consolidated balance sheets.

For each securitization, the residual trust certificates represent the right to receive excess cash on the loans each collection period after all fees and required distributions have been made to the note holders on the related payment date. In addition to the retained residual trust certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans.

The following tables present the aggregate carrying value of financial assets and liabilities from our involvement with consolidated VIEs (in thousands):


	December 31, 2025
	Assets		Liabilities		Net Assets
Warehouse credit facilities	$	2,764,860	$	2,455,876	$	308,984
Securitizations(1)	5,621,738		5,442,529		179,209
Total consolidated VIEs	$	8,386,598	$	7,898,405	$	488,193


	June 30, 2025
	Assets		Liabilities		Net Assets
Warehouse credit facilities	$	1,668,181	$	1,504,136	$	164,044
Securitizations(1)	4,993,148		4,951,485		41,663
Total consolidated VIEs	$	6,661,329	$	6,455,621	$	205,707

(1)Liabilities include an outstanding balance of $594.4 million and $103.9 million on a VFN classified as funding debt as of December 31, 2025 and June 30, 2025, respectively, and asset-backed securities of $4.8 billion classified as notes issued from securitization trusts as of both periods.

Unconsolidated VIEs

We are involved with various unconsolidated VIEs, established for the purposes of securitization and forward flow arrangements. We retain economic exposure as variable interests in these unconsolidated VIEs, which consist of securitization notes receivable and certificates in unconsolidated trusts, residual interests in structured transactions, and risk sharing assets and liabilities. While we continue to be involved with the unconsolidated VIEs

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through our role as the servicer, we determined that we are not the primary beneficiary as of December 31, 2025. Factors we considered for this determination are that we hold an insignificant variable interest or rights held by other variable interest holders convey power in the unconsolidated VIEs.

Securitization notes receivable and certificates in unconsolidated securitization trusts

We have investments in certain unconsolidated securitization trusts in the form of notes and certificates. These notes and certificates are considered variable interests that absorb a portion of the variability of the trusts. The principal and interest payments on these investments are dependent on the performance of the underlying loans held within each trust.

Residual interests in structured transactions

Under certain forward flow arrangements with third-party loan buyers, we hold a beneficial interest representing our right to receive a portion of the residual cash flows from the underlying loans sold in connection with the transaction. The loans are held in an unconsolidated VIE that has been established by the third-party loan buyers.

Risk sharing assets and liabilities

Under certain other forward flow arrangements with third-party loan buyers, we have entered into risk sharing agreements where we may be required to make a payment to the loan buyer or are entitled to receive a payment from the loan buyer, depending on the actual versus expected loan performance as contractually agreed to with the counterparty, and subject to a cap based on a percentage of the principal balance of loans sold.

The following information pertains to unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary (in thousands):


	December 31, 2025				June 30, 2025
	Carrying Amount		Maximum Exposure to Losses(4)		Carrying Amount		Maximum Exposure to Losses(4)
Securitization notes receivable and certificates in unconsolidated securitization trusts [1]	$	80,080	$	81,573	$	75,469	$	76,943
Residual interests in structured transactions [1]	5,436		17,664		2,284		15,644
Risk sharing assets [2]	38,992		62,672		43,179		66,590
Risk sharing liabilities [3]	—		13,179		(90)		24,467
Total unconsolidated VIEs	$	124,507	$	175,087	$	120,842	$	183,644

(1)Presented within Securities available for sale at fair value

(2)Presented within Other assets

(3)Presented within Accrued expenses and other liabilities

(4)Maximum exposure to losses represents our exposure through our continuing involvement as servicer, through our retained interests, and legal or contractual obligation.

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10. Investments

Cash and Cash Equivalents and Securities Available for Sale

Cash and cash equivalents and securities available for sale, at fair value, consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands):


	December 31, 2025		June 30, 2025
Cash and cash equivalents:
Money market funds	$	63,182	$	70,920
Agency bonds	—		3,493
Commercial paper	—		12,564
Government bonds - US	—		4,995
Securities available for sale:
Certificates of deposit	36,552		39,008
Corporate bonds	242,177		264,199
Commercial paper	63,943		126,761
Agency bonds	5,051		7,854
Municipal bonds	8,435		6,076
Government bonds
Non-US	2,181		5,340
US (1)	274,274		344,434
Securitization notes receivable and certificates (2)	80,080		75,469
Residual interests in structured transactions	5,436		2,284
Other	5,246		—
Total marketable securities:	$	786,557	$	963,397

(1)As of December 31, 2025 and June 30, 2025, these securities include $99.8 million and $75.4 million, respectively, pledged as collateral in connection with our standby letters of credit for office leases and certain commercial agreements.

(2)These securities include $15.1 million and $34.5 million as of December 31, 2025 and June 30, 2025, respectively, pledged as collateral in connection with sale and repurchase agreements as discussed within Note 8. Debt.

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Securities Available for Sale, at Fair Value

The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of December 31, 2025 and June 30, 2025 were as follows (in thousands):


	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Certificates of deposit	$	36,500	$	52	$	—	$	—	$	36,552
Corporate bonds	241,356		821		—		—		242,177
Commercial paper	63,869		74		—		—		63,943
Agency bonds	5,049		2		—		—		5,051
Municipal bonds	8,410		25		—		—		8,435
Government bonds
Non-US	2,168		13		—		—		2,181
US (2)	273,716		558		—		—		274,274
Securitization notes receivable and certificates (3)	80,792		115		(258)		(569)		80,080
Residual interests in structured transactions	4,876		560				—		5,436
Other	5,000		246		—		—		5,246
Total securities available for sale	$	721,736	$	2,466	$	(258)	$	(569)	$	723,375


	June 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Certificates of deposit	$	38,990	$	18	$	—	$	—	$	39,008
Corporate bonds	263,495		759		(55)		—		264,199
Commercial paper (1)	139,336		7		(18)		—		139,325
Agency bonds (1)	11,358		—		(11)		—		11,347
Municipal bonds	6,057		19		—		—		6,076
Government bonds
Non-US	5,331		9		—		—		5,340
US (2)	349,149		371		(91)		—		349,429
Securitization notes receivable and certificates (3)	76,279		173		(42)		(941)		75,469
Residual interests in structured transactions	2,173		111		—		—		2,284

Total securities available for sale	$	892,168	$	1,467	$	(217)	$	(941)	$	892,477

(1)As of June 30, 2025, Agency bonds, Commercial Paper, and US government bonds included $21.1 million classified as cash and cash equivalents within the interim condensed consolidated balance sheets.

(2)As of December 31, 2025 and June 30, 2025, these securities include $99.8 million and $75.4 million, respectively, pledged as collateral in connection with our standby letters of credit for office leases and certain commercial agreements.

(3)Approximately $15.1 million and $34.5 million as of December 31, 2025 and June 30, 2025, respectively, of these securities have been pledged as collateral in connection with sale and repurchase agreements discussed within Note 8. Debt.

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As of December 31, 2025 and June 30, 2025, there were no material reversals of prior period allowance for credit losses recognized for available for sale securities.

A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of December 31, 2025 and June 30, 2025, are as follows (in thousands):


	December 31, 2025
	Less than or equal to 1 year				Greater than 1 year				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses







Securitization notes receivable and certificates	47,563		(140)		—		—		47,563		(140)
Total securities available for sale (1)	$	47,563	$	(140)	$	—	$	—	$	47,563	$	(140)


	June 30, 2025
	Less than or equal to 1 year				Greater than 1 year				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Certificates of deposit	$	7,711	$	—	$	—	$	—	$	7,711	$	—
Corporate bonds	42,842		(41)		16,978		(14)		59,820		(55)
Commercial paper	83,701		(18)		—		—		83,701		(18)
Agency bonds	11,347		(11)		—		—		11,347		(11)
Government bonds
Non-US	3,163		—		—		—		3,163		—
US	189,295		(91)		—		—		189,295		(91)
Total securities available for sale (1)	$	338,059	$	(161)	$	16,978	$	(14)	$	355,037	$	(175)

(1)The number of securities with unrealized losses for which an allowance for credit losses has not been recorded totaled 8 and 67 as of December 31, 2025 and June 30, 2025, respectively.

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The length of time to contractual maturities of securities available for sale as of December 31, 2025 and June 30, 2025 were as follows (in thousands):


	December 31, 2025
	Within 1 year				Greater than 1 year, less than or equal to 5 years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Certificates of deposit	$	36,500	$	36,552	$	—	$	—	$	36,500	$	36,552
Corporate bonds	153,866		154,144		87,490		88,033		241,356		242,177
Commercial paper	63,869		63,943		—		—		63,869		63,943
Agency bonds	5,049		5,051		—		—		5,049		5,051
Municipal bonds	4,511		4,519		3,899		3,916		8,410		8,435
Government bonds
Non-US	—		—		2,168		2,181		2,168		2,181
US	234,545		234,941		39,171		39,333		273,716		274,274
Securitization notes receivable and certificates (2)	—		—		80,792		80,080		80,792		80,080
Residual interests in structured transactions	—		—		4,876		5,436		4,876		5,436
Other	—		—		5,000		5,246		5,000		5,246
Total securities available for sale	$	498,340	$	499,150	$	223,396	$	224,225	$	721,736	$	723,375


	June 30, 2025
	Within 1 year				Greater than 1 year, less than or equal to 5 years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Certificates of deposit	$	38,990	$	39,008	$	—	$	—	$	38,990	$	39,008
Corporate bonds	149,435		149,675		114,060		114,524		263,495		264,199
Commercial paper (1)	139,336		139,325		—		—		139,336		139,325
Agency bonds (1)	11,358		11,347		—		—		11,358		11,347
Municipal bonds	3,944		3,950		2,113		2,126		6,057		6,076
Government bonds
Non-US	3,162		3,162		2,169		2,178		5,331		5,340
US (1)	326,884		327,076		22,265		22,353		349,149		349,429
Securitization notes receivable and certificates (2)	—		—		76,279		75,469		76,279		75,469
Residual interests in structured transactions	—		—		2,173		2,284		2,173		2,284

Total securities available for sale	$	673,109	$	673,543	$	219,059	$	218,934	$	892,168	$	892,477

(1)As of June 30, 2025, Agency bonds, Commercial paper, and US government bonds included $21.1 million classified as cash and cash equivalents within the interim condensed consolidated balance sheets.

(2)Based on weighted average life of expected cash flows as of December 31, 2025 and June 30, 2025.

Gross proceeds from matured or redeemed securities were $184.4 million and $414.9 million for the three and six months ended December 31, 2025, respectively, and $403.1 million and $706.5 million for the three and six months ended December 31, 2024, respectively.

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For available for sale securities, no gains and losses were realized for the three and six months ended December 31, 2025 and $0.3 million for both the three and six months ended December 31, 2024.

Equity Securities Held at Cost

Equity security investments without a readily determinable fair value held at cost were $40.4 million and $40.3 million as of December 31, 2025 and June 30, 2025, respectively, and are included in other assets within the interim condensed consolidated balance sheets.

We did not record any impairment during the three and six months ended December 31, 2025 or for the three months ended December 31, 2024. We recognized an impairment of $3.0 million for the six months ended December 31, 2024 within other income, net in the interim consolidated statements of operations and comprehensive income (loss) in connection with one of our non-marketable equity security investments.

For the three and six months ended December 31, 2025, there were no upward or downward adjustments due to observable changes in orderly transactions. For the three and six months ended December 31, 2024, we recognized an upward adjustment of $2.4 million.

11. Derivative Financial Instruments

The following table summarizes the total fair value, including interest accruals, and outstanding notional amounts of derivative instruments as of December 31, 2025 and June 30, 2025 (in thousands):


	December 31, 2025						June 30, 2025
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as cash flow hedges
Interest rate contracts	$	425,000	$	—	$	389	$	100,000	$	86	$	—
Derivatives not designated as hedges
Interest rate contracts	600,000		1,222		—		405,074		2,558		15
Risk sharing assets/liabilities	10,225,492		38,992		—		8,561,709		43,179		90
Total gross derivative assets/liabilities	$	11,250,492	$	40,214	$	389	$	9,066,783	$	45,823	$	105

The following table summarizes the impact of the cash flow hedges on Accumulated Other Comprehensive Income (“AOCI”) (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Balance at beginning of period	$	(1,548)	$	(85)	$	(1,419)	$	1,407
Changes in fair value	(339)		(5)		(315)		(1,273)
Amounts reclassified into earnings (1)	34		(84)		(119)		(308)
Balance at end of period (2)	$	(1,853)	$	(174)	$	(1,853)	$	(174)

(1)The amounts reclassified into earnings are presented in the interim condensed consolidated statements of operations and comprehensive income (loss) within funding costs.

(2)As of December 31, 2025, we estimated that $0.4 million of net derivative losses included in AOCI are expected to be reclassified into earnings within the next 12 months.

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The following table summarizes the impact of the derivative instruments on income and indicates where within the interim consolidated statements of operations and comprehensive income (loss) such impact is reported (in thousands):


	Location of gains (losses) where the effects of derivatives are recorded	Three Months Ended December 31,				Six Months Ended December 31,
		2025		2024		2025		2024
The effects of cash flow hedging
Interest rate contracts	Funding costs	$	(34)	$	84	$	119	$	308
The effects of derivatives not designated in hedging relationships
Interest rate contracts	Other income, net	(379)		2,705		(1,567)		(1,248)
Risk sharing assets/liabilities	Gain on sales of loans	6,552		5,321		13,279		15,883

Refer to Note 12. Fair Value of Financial Assets and Liabilities for additional information on our derivative instruments.

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12. Fair Value of Financial Assets and Liabilities

Financial Assets and Liabilities Recorded at Fair Value

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and June 30, 2025 (in thousands):


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market funds	$	63,182	$	—	$	—	$	63,182



Securities, available for sale:
Certificates of deposit	—		36,552		—		36,552
Corporate bonds	—		242,177		—		242,177
Commercial paper	—		63,943		—		63,943
Agency bonds	—		5,051		—		5,051
Municipal bonds	—		8,435		—		8,435
Government bonds:
Non-US	—		2,181		—		2,181
US	—		274,274		—		274,274
Securitization notes receivable and residual trust certificates	—		—		80,080		80,080
Residual interests in structured transactions	—		—		5,436		5,436
Other	—		—		5,246		5,246
Servicing assets	—		—		965		965
Interest rate derivatives	—		1,222		—		1,222
Risk sharing asset	—		—		38,992		38,992
Total assets	$	63,182	$	633,835	$	130,719	$	827,736
Liabilities:
Servicing liabilities	$	—	$	—	$	2	$	2
Performance fee liability	—		—		2,377		2,377
Profit share liability	—		—		4,713		4,713

Interest rate derivatives	—		389		—		389
Total liabilities	$	—	$	389	$	7,092	$	7,481

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June 30, 2025

Level 1

Level 2

Level 3

Total

Assets:

Cash and cash equivalents:

Money market funds

70,920

—

Affirm Holdings, Inc. 10-Q