Affirm Holdings, Inc. (AFRM)

Latest 10-Q (filed 2026-05-07)

Income Statement

Consolidated Statement of Income

Affirm Holdings, Inc. (AFRM)

Three and Nine Months Ended (In thousands, except shares in actual amounts and per share data)

Mar 31, 2026 (Q3) Mar 31, 2025 (Q3) Mar 31, 2026 (YTD) Mar 31, 2025 (YTD)
          Revenue $334,494 $272,545 $1,056,385 $807,401
Merchant network revenue $268,027 $213,973 $847,553 $643,207
Card network revenue $66,467 $58,572 $208,832 $164,194
          Interest income $532,449 $402,701 $1,480,198 $1,189,132
          Gain on sales of loans $127,200 $75,838 $431,480 $264,739
          Servicing income $44,622 $32,050 $127,058 $86,723
        Total revenue, net $1,038,765 $783,135 $3,095,122 $2,347,995
          Loss on loan purchase commitment $67,964 $57,290 $235,581 $181,805
          Provision for credit losses $196,543 $147,252 $573,448 $460,056
          Funding costs $113,762 $107,631 $335,507 $319,539
          Processing and servicing $162,291 $118,398 $454,680 $329,504
          Technology and data analytics $191,619 $152,620 $544,595 $435,123
          Sales and marketing $72,854 $74,022 $250,128 $355,293
          General and administrative $145,304 $134,303 $431,468 $412,196
          Restructuring and other $12 $(184)
        Total operating expenses $950,337 $791,527 $2,825,406 $2,493,332
        Operating income (loss) $88,429 $(8,393) $269,716 $(145,337)
        Other income, net $18,948 $13,738 $53,918 $135,221
      Income (loss) before income taxes $107,376 $5,345 $323,633 $(10,116)
      Income tax expense $4,476 $2,541 $10,453 $6,942
        Net income (loss) $102,900 $2,804 $313,180 $(17,058)
          Foreign currency translation adjustments $(10,665) $3,550 $(12,832) $(23,573)
          Unrealized gain (loss) on securities available for sale, net $(1,090) $778 $(359) $3,494
          Gain (loss) on cash flow hedges $5,100 $(1,279) $4,666 $(2,860)
        Net other comprehensive income (loss) $(6,655) $3,049 $(8,525) $(22,939)
      Comprehensive income (loss) $96,245 $5,853 $304,655 $(39,998)
        Basic (in USD per share) 0.31 0.01 0.94 -0.05
        Diluted (in USD per share) 0.30 0.01 0.90 -0.05
        Basic (in shares) 337,142,686 324,053,967 333,860,094 321,505,149
        Diluted (in shares) 348,096,861 344,224,332 348,556,556 321,505,149

Balance Sheet

Consolidated Balance Sheets

Affirm Holdings, Inc. (AFRM)

As of March 31, 2026 and June 30, 2025 (In thousands, except shares and per share data)

Mar 31, 2026 Jun 30, 2025
          Cash and cash equivalents $1,723,413 $1,354,455
          Restricted cash $750,892 $401,968
Consolidated Variable Interest Entities $372,392 $192,638
          Securities available for sale at fair value $757,597 $871,425
          Loans held for sale
          Loans held for investment $8,572,972 $7,025,534
Consolidated Variable Interest Entities $8,341,198 $6,828,758
          Allowance for credit losses $(512,314) $(396,929)
Consolidated Variable Interest Entities $(458,139) $(365,656)
          Loans held for investment, net $8,060,659 $6,628,606
Consolidated Variable Interest Entities $7,883,059 $6,463,101
          Accounts receivable, net $230,703 $426,177
Consolidated Variable Interest Entities $3,270 $3,032
          Property, equipment and software, net $668,292 $572,637
          Goodwill $529,284 $534,156
          Intangible assets $27,436 $12,935
          Commercial agreement assets $41,377 $57,210
          Other assets $351,927 $295,360
Consolidated Variable Interest Entities $2,446 $2,558
            Total assets $13,141,580 $11,154,929
Consolidated Variable Interest Entities $8,261,166 $6,661,329
          Accounts payable $59,590 $82,820
Consolidated Variable Interest Entities $2,833
          Payable to third-party loan owners $178,275 $211,700
          Accrued interest payable $28,456 $24,465
Consolidated Variable Interest Entities $26,429 $23,998
          Accrued expenses and other liabilities $217,938 $157,272
Consolidated Variable Interest Entities $5,451 $2,797
          Convertible senior notes, net $1,128,617 $1,153,000
          Notes issued by securitization trusts $5,327,589 $4,833,855
Notes Issued By Securitization Trusts $5,327,589 $4,833,855
Consolidated Variable Interest Entities $5,327,589 $4,833,855
          Funding debt $2,417,705 $1,622,808
Consolidated Variable Interest Entities $2,409,921 $1,592,139
          Total liabilities $9,358,170 $8,085,919
Consolidated Variable Interest Entities $7,769,390 $6,455,621
          Commitments and contingencies (Note 7)
          Common stock $3 $3
Class A common stock $2 $2
Class B common stock $1 $1
          Additional paid in capital $6,550,639 $6,140,893
          Accumulated deficit $(2,743,638) $(3,056,818)
          Accumulated other comprehensive loss $(23,594) $(15,069)
          Total stockholders’ equity $3,783,410 $3,069,009
          Total liabilities $9,358,170 $8,085,919
        Total liabilities and stockholders’ equity $13,141,580 $11,154,929
          Cash and cash equivalents $1,723,413 $1,354,455
          Restricted cash $750,892 $401,968
Consolidated Variable Interest Entities $372,392 $192,638
          Securities available for sale at fair value $757,597 $871,425
          Loans held for sale
          Loans held for investment $8,572,972 $7,025,534
Consolidated Variable Interest Entities $8,341,198 $6,828,758
          Allowance for credit losses $(512,314) $(396,929)
Consolidated Variable Interest Entities $(458,139) $(365,656)
          Loans held for investment, net $8,060,659 $6,628,606
Consolidated Variable Interest Entities $7,883,059 $6,463,101
          Accounts receivable, net $230,703 $426,177
Consolidated Variable Interest Entities $3,270 $3,032
          Property, equipment and software, net $668,292 $572,637
          Goodwill $529,284 $534,156
          Intangible assets $27,436 $12,935
          Commercial agreement assets $41,377 $57,210
          Other assets $351,927 $295,360
Consolidated Variable Interest Entities $2,446 $2,558
            Total assets $13,141,580 $11,154,929
Consolidated Variable Interest Entities $8,261,166 $6,661,329
          Accounts payable $59,590 $82,820
Consolidated Variable Interest Entities $2,833
          Payable to third-party loan owners $178,275 $211,700
          Accrued interest payable $28,456 $24,465
Consolidated Variable Interest Entities $26,429 $23,998
          Accrued expenses and other liabilities $217,938 $157,272
Consolidated Variable Interest Entities $5,451 $2,797
          Convertible senior notes, net $1,128,617 $1,153,000
          Notes issued by securitization trusts $5,327,589 $4,833,855
Notes Issued By Securitization Trusts $5,327,589 $4,833,855
Consolidated Variable Interest Entities $5,327,589 $4,833,855
          Funding debt $2,417,705 $1,622,808
Consolidated Variable Interest Entities $2,409,921 $1,592,139
Consolidated Variable Interest Entities $7,769,390 $6,455,621
        Total net assets of consolidated VIEs $491,776 $205,707
Consolidated Variable Interest Entities $491,776 $205,707

Cash Flow

Consolidated Statement of Cash Flows

Affirm Holdings, Inc. (AFRM)

Nine Months Ended (In thousands, except shares and per share data)

Mar 31, 2026 (YTD) Mar 31, 2025 (YTD)
      Net income (loss) $313,180 $(17,058)
      Provision for losses $573,448 $460,056
      Amortization of premiums and discounts on loans $(225,466) $(171,827)
      Gain on sales of loans $(431,480) $(264,739)
      Gain on extinguishment of debt $(1,537) $(82,418)
2026 Notes - Convertible Debt $(1,500)
      Changes in fair value of assets and liabilities $881 $5,456
      Amortization of commercial agreement assets $15,833 $39,424
Commercial Agreement - Shopify $8,400 $23,900
      Amortization of debt issuance costs $20,804 $23,298
2026 Notes - Convertible Debt $403 $1,575
2029 Notes - Convertible Debt $2,504 $932
Convertible Debt $2,907 $2,507
      Accrued interest on securities available for sale $(26,070) $(34,182)
      Commercial agreement warrant expense $142,681 $230,102
      Stock-based compensation $237,490 $255,938
      Depreciation and amortization $215,985 $161,081
      Other $(32,090) $9,980
        Purchases and origination of loans held for sale $(2,089,516) $(3,051,742)
        Proceeds from the sale of loans held for sale $2,088,537 $3,051,803
        Accounts receivable, net $185,470 $123,897
        Other assets $(35,180) $(17,992)
        Accounts payable $(23,230) $39
        Payable to third-party loan buyers $(33,425) $17,353
        Accrued interest payable $4,926 $(383)
        Accrued expenses and other liabilities $33,570 $(18,813)
    Net cash provided by operating activities $934,811 $719,272
      Purchases and origination of loans held for investment $(33,397,975) $(22,727,969)
      Proceeds from the sale of loans held for investment $14,103,336 $8,122,806
      Principal repayments and other loan servicing activity $17,925,622 $13,649,667
      Additions to property, equipment and software $(171,474) $(141,069)
      Purchases of securities available for sale $(544,887) $(553,595)
      Proceeds from maturities and repayments of securities available for sale $730,191 $984,387
      Other investing inflows $299 $101,224
      Other investing outflows $(279) $(64,000)
    Net cash used in investing activities $(1,355,168) $(628,550)
      Proceeds from the issuance of convertible notes $920,000
      Proceeds from the issuance of funding debt $27,331,029 $14,023,995
      Proceeds from issuance of notes and certificates by securitization trust $2,850,000 $1,750,000
      Principal repayments of funding debt $(26,521,828) $(13,932,542)
      Principal repayments of notes issued by securitization trust $(2,350,000) $(900,000)
      Payment of debt issuance costs $(30,874) $(42,759)
      Extinguishment of convertible debt $(25,758) $(1,012,856)
      Proceeds from exercise of common stock options and warrants and contributions to ESPP $142,680 $49,915
      Repurchase of common stock $(250,000)
      Taxes paid related to net share settlement of equity awards $(251,210) $(241,586)
    Net cash provided by financing activities $1,144,040 $364,166
    Effect of exchange rate changes on cash, cash equivalents and restricted cash $(5,801) $(14,328)
  Net increase in cash, cash equivalents and restricted cash $717,882 $440,560
    Total cash, cash equivalents and restricted cash
    Total cash, cash equivalents and restricted cash
      Cash and cash equivalents
Money market funds
Agency bonds
Corporate bonds
Commercial paper
US
Agency Bonds, Corporate Bonds, Commercial Paper, and US Government Bonds
      Restricted cash
    Total cash, cash equivalents and restricted cash
    Cash payments for interest expense $314,227 $302,791
    Cash paid for operating leases $12,784 $12,501
    Cash paid for income taxes $3,785 $2,432
    Stock-based compensation included in capitalized internal-use software $141,169 $138,555
    Securities retained under unconsolidated securitization transactions $44,608 $41,940
    Right of use assets obtained in exchange for operating lease liabilities $11,513 $7,418