# Affirm Holdings, Inc. (AFRM)

Informational only - not investment advice.

CIK: 0001820953
SIC: 6141 Personal Credit Institutions
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 61](/major-group/61/) > [SIC 6141 Personal Credit Institutions](/industry/6141/)
Latest 10-K filed: 2025-08-28
SEC page: https://www.sec.gov/edgar/browse/?CIK=1820953
Filing source: https://www.sec.gov/Archives/edgar/data/1820953/000182095325000080/afrm-20250630.htm

## At a glance

FY2025 · period end 2025-06-30 · filed 2025-08-28 · accession 0001820953-25-000080 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001820953.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,224,412,000 USD | 2025 | verified |
| Net income | 52,186,000 USD | 2025 | verified |
| Assets | 11,154,929,000 USD | 2025 | verified |
| Free cash flow | 601,720,000 USD | 2025 | computed |
| Net margin | 1.62% | 2025 | computed |
| Operating margin | -2.71% | 2025 | computed |
| Revenue YoY | +38.80% | 2025 | computed |
| ROE | 1.70% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AFRM | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.6% | 11.6% | 9 | 12 |
| Revenue growth | 38.8% | 9.5% | 82 | 12 |
| FCF margin | 18.7% | 44.6% | 29 | 8 |
| ROE | 1.7% | 13.7% | 9 | 12 |
| ROA | 0.5% | 2.4% | 9 | 12 |
| Liabilities / equity | 2.63 | 4.65 | 18 | 12 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6141 Personal Credit Institutions, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3224412000 | USD | 2025 | 2025-08-28 |
| Net income | 52186000 | USD | 2025 | 2025-08-28 |
| Assets | 11154929000 | USD | 2025 | 2025-08-28 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-08-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001820953.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 264,367,000 | 509,528,000 | 870,464,000 | 1,349,292,000 | 1,587,985,000 | 2,322,999,000 | 3,224,412,000 |
| Net income |  | -120,455,000 | -112,598,000 | -441,027,000 | -707,417,000 | -985,345,000 | -517,757,000 | 52,186,000 |
| Operating income |  | -127,441,000 | -107,790,000 | -383,667,000 | -866,048,000 | -1,200,862,000 | -615,847,000 | -87,273,000 |
| Diluted EPS |  | -2.84 | -2.63 | -2.94 | -2.51 | -3.34 | -1.67 | 0.15 |
| Operating cash flow |  | -87,649,000 | -71,302,000 | -193,130,000 | -162,194,000 | 12,181,000 | 450,138,000 | 793,909,000 |
| Capital expenditures |  | 19,406,000 | 21,019,000 | 20,252,000 | 86,290,000 | 120,775,000 | 159,296,000 | 192,189,000 |
| Share buybacks |  | 2,631,000 | 18,854,000 | 800,000 | 86,000 | 109,000 | 0.00 | 250,000,000 |
| Assets |  |  | 1,402,251,000 | 4,866,967,000 | 6,973,792,000 | 8,155,615,000 | 9,519,619,000 | 11,154,929,000 |
| Liabilities |  |  | 965,177,000 | 2,291,440,000 | 4,355,537,000 | 5,621,432,000 | 6,787,630,000 | 8,085,919,000 |
| Stockholders' equity | -169,272,000 | -263,414,000 | -367,096,000 | 2,575,527,000 | 2,618,255,000 | 2,534,183,000 | 2,731,989,000 | 3,069,009,000 |
| Cash and cash equivalents |  |  | 267,059,000 | 1,466,558,000 | 1,255,171,000 | 892,027,000 | 1,013,106,000 | 1,354,455,000 |
| Free cash flow |  | -107,055,000 | -92,321,000 | -213,382,000 | -248,484,000 | -108,594,000 | 290,842,000 | 601,720,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -45.56% | -22.10% | -50.67% | -52.43% | -62.05% | -22.29% | 1.62% |
| Operating margin |  | -48.21% | -21.15% | -44.08% | -64.19% | -75.62% | -26.51% | -2.71% |
| Return on equity |  |  |  | -17.12% | -27.02% | -38.88% | -18.95% | 1.70% |
| Return on assets |  |  | -8.03% | -9.06% | -10.14% | -12.08% | -5.44% | 0.47% |
| Liabilities / equity |  |  |  | 0.89 | 1.66 | 2.22 | 2.48 | 2.63 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AFRM/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001820953.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-09-30 |  |  | -0.86 | reported discrete quarter |
| 2023-Q2 | 2022-12-31 |  |  | -1.10 | reported discrete quarter |
| 2023-Q3 | 2023-03-31 |  |  | -0.69 | reported discrete quarter |
| 2023-Q4 | 2023-06-30 | 445,825,000 | -205,962,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-09-30 | 496,547,000 | -171,783,000 | -0.57 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 |  | -171,783,000 |  | reported discrete quarter |
| 2024-Q2 | 2023-12-31 | 591,110,000 |  | -0.54 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 |  | -166,902,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-03-31 | 576,157,000 |  | -0.43 | reported discrete quarter |
| 2024-Q4 | 2024-06-30 | 659,185,000 | -45,136,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-09-30 | 698,479,000 | -100,222,000 | -0.31 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 |  | -100,222,000 |  | reported discrete quarter |
| 2025-Q2 | 2024-12-31 | 866,381,000 |  | 0.23 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 |  | 80,360,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-03-31 | 783,135,000 |  | 0.01 | reported discrete quarter |
| 2025-Q4 | 2025-06-30 | 876,417,000 | 69,244,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-09-30 | 933,337,000 | 80,694,000 | 0.23 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 |  | 80,694,000 |  | reported discrete quarter |
| 2026-Q2 | 2025-12-31 | 1,123,019,000 |  | 0.37 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 |  | 129,586,000 |  | reported discrete quarter |
| 2026-Q3 | 2026-03-31 | 1,038,765,000 |  | 0.30 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AFRM's latest 10-K: [/company/AFRM/business/](/company/AFRM/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AFRM's latest 10-K: [/company/AFRM/risk-factors/](/company/AFRM/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1820953/000162828026032294/afrm-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-07
Report date: 2026-03-31

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the interim condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (“Form 10-Q”) and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended June 30, 2025 included in our Annual Report on Form 10-K. Some of the information contained in this discussion and analysis, including information with respect to our planned investments to drive future growth, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” of this Form 10-Q and our most recently filed Annual Report on Form 10-K for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

We are building the next generation payment network. We believe that by using modern technology, strong engineering talent, and a mission-driven approach, we can reinvent payments and commerce. Our solutions, which are built on trust and transparency, are designed to make it easier for consumers to spend and save responsibly and with confidence, easier for merchants and commerce platforms to convert sales and grow, and easier for commerce to thrive.

Our point-of-sale solutions allow consumers to pay for purchases in fixed amounts without deferred interest, late fees, or penalties. We empower consumers to pay over time rather than paying for a purchase entirely upfront. This increases consumers’ purchasing power and gives them more control and flexibility. Our platform facilitates both true 0% APR payment options and interest-bearing loans. On the merchant side, we offer commerce enablement, demand generation, and consumer acquisition tools. Our solutions empower merchants to more efficiently promote and sell their products, optimize their consumer acquisition strategies, and drive incremental sales. We also provide valuable product-level data and insights — information that merchants cannot easily get elsewhere — to better inform their strategies. Finally, for consumers, our app unlocks the full suite of Affirm products for a delightful end-to-end consumer experience. Consumers can use our app to apply for installment loans, and upon approval, they can use the Affirm Card digitally online or in-stores to complete a purchase. Additionally, consumers can manage the pre and post purchase split of Affirm Card transactions into a loan, manage payments, open a high-yield savings account, and access a personalized marketplace.

Our Company is predicated on the principles of simplicity, transparency, and putting people first. By adhering to these principles, we have built enduring, trust-based relationships with consumers and merchants that we believe will set us up for long-term, sustainable success. We believe our innovative approach uniquely positions us to define the future of commerce and payments.

Technology and data are at the core of everything we do. Our expertise in sourcing, aggregating, and analyzing data has been what we believe to be the key competitive advantage of our platform since our founding. We believe our proprietary technology platform and data give us a unique advantage in pricing risk. We use data to inform our risk scoring in order to generate value for our consumers, merchants, and capital partners. We also prioritize building our own technology and investing in product and engineering talent as we believe these are enduring competitive advantages that are difficult to replicate. Our solutions use the latest in machine learning, artificial intelligence, cloud-based technologies, and other modern tools to create differentiated and scalable products.

59

Table of Contents

[[GREPCENT_TABLE]]
[["","Three Months Ended March 31,","","Nine Months Ended March 31,"],["","2026","","2025","","$","","%","","2026","","2025","","$","","%"],["","(in thousands, except percentages)"],["Total revenue, net","$","1,038,765","","","$","783,135","","","$","255,630","","","33","%","","$","3,095,122","","","$","2,347,995","","","$","747,127","","","32","%"],["Total operating expenses","950,337","","","791,527","","","158,810","","","20","%","","2,825,406","","","2,493,332","","","332,074","","","13","%"],["Operating income (loss)","$","88,429","","","$","(8,393)","","","$","96,822","","","NM (1)","","$","269,716","","","$","(145,337)","","","$","415,053","","","NM (1)"],["Other income, net","18,948","","","13,738","","","5,210","","","38","%","","53,918","","","135,221","","","(81,303)","","","(60)","%"],["Income (loss) before income taxes","$","107,376","","","$","5,345","","","$","102,031","","","NM (1)","","$","323,633","","","$","(10,116)","","","$","333,749","","","NM (1)"],["Income tax expense","4,476","","","2,541","","","1,935","","","76","%","","10,453","","","6,942","","","3,511","","","51","%"],["Net income (loss)","$","102,900","","","$","2,804","","","$","100,096","","","NM (1)","","$","313,180","","","$","(17,058)","","","$","330,238","","","NM (1)"]]
[[/GREPCENT_TABLE]]

(1)Not meaningful (“NM”)

Our Financial Model

Our Revenue Model

We have three main loan product offerings: Pay-in-X, 0% annual percentage rate (“APR”) monthly installment loans and interest-bearing monthly installment loans. Pay-in-X primarily consists of short-term payment plans with one to four 0% APR installments.

From merchants, we typically earn a fee when we help them convert a sale and facilitate a transaction. Merchant fees depend on the individual arrangement between us and each merchant and may vary based on the terms of the product offering; we generally earn larger merchant fees on 0% APR financing products.

From consumers, we earn interest income on the simple interest loans that we originate or purchase from our originating bank partners. Interest rates charged to our consumers vary depending on the transaction risk, creditworthiness of the consumer, the repayment term selected by the consumer, the amount of the loan, and the individual arrangement with a merchant. Because our consumers are never charged deferred or compounding interest, late fees, or penalties on the loans, we are not incentivized to profit from our consumers’ hardships. In addition, interest income includes the amortization of any discounts or premiums on loan receivables created upon either the purchase of a loan from one of our originating bank partners or our direct origination of a loan.

In order to accelerate our ubiquity, we facilitate the issuance of the Affirm Card, a card that can be used physically or virtually and which allows consumers to link a bank account to pay in full, or pay later by accessing credit through the Affirm App. Similarly, we also facilitate the issuance of one-time-use virtual cards directly to consumers through our app, allowing them to shop with merchants that may not yet be fully integrated with Affirm. When these cards are used over established card networks, we earn a portion of the interchange fee from the transaction.

Our Loan Origination and Servicing Model

When a consumer applies for a loan through our platform, the loan is underwritten using our proprietary risk model. Once approved for the loan, the consumer then selects their preferred repayment option. A portion of these loans are funded and issued by our originating bank partners, which include Cross River Bank, an FDIC-insured New Jersey state-chartered bank, Celtic Bank, an FDIC-insured Utah state-chartered industrial bank, and Lead Bank, an FDIC-insured Missouri state-chartered bank. These partnerships allow us to benefit from our partners’ ability to originate loans under their banking licenses while complying with various federal, state, and other laws. Under this arrangement, we must comply with our originating bank partners' credit policies and underwriting procedures, and our originating bank partners maintain ultimate authority to decide whether to

60

Table of Contents

originate a loan or not. When an originating bank partner originates a loan, it funds the loan through its own funding sources and may subsequently offer and sell the loan to us. Pursuant to our agreements with these partners, we are obligated to purchase the loans facilitated through our platform that such partner offers us and our obligation is secured by cash deposits. To date, we have purchased all of the loans facilitated through our platform and originated by our originating bank partners. When we purchase a loan from an originating bank partner, the purchase price is equal to the outstanding principal balance of the loan, plus a fee and any accrued interest. The originating bank partner also retains an interest in the loans purchased by us through a loan performance fee that is payable by us on the aggregate principal amount of a loan that is paid by a consumer. Refer to Note 12. Fair Value of Financial Assets and Liabilities in the notes to the interim condensed consolidated financial statements for more information on the performance fee liability.

We are also able to originate loans directly under our lending, servicing, and brokering licenses in Canada, the U.K., and across most states in the U.S. through our consolidated subsidiaries. For the three and nine months ended March 31, 2026, we directly originated approximately $2.3 billion, or 20%, and $7.0 billion, or 19%, respectively, of loans compared to approximately $1.5 billion, or 17%, and $4.5 billion, or 17%, for the same periods in 2025.

We act as the servicer on all loans that we originate directly or purchase from our originating bank partners and earn a servicing fee on loans held by third parties, including bank partners prior to loan purchase and third-party loan buyers if subsequently sold as part of our funding strategy. In the normal course of business, we do not sell the servicing rights on any of the loans. To allow for flexible staffing to support overflow and seasonal traffic, we partner with several sub-servicers to manage consumer care, first priority collections, and third-party collections in accordance with our policies and procedures.

Factors Affecting Our Performance

Our performance has been and may continue to be affected by many factors, including those identified below, as well as the factors discussed in the section titled “Risk Factors” 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, as updated from time to time in our filings with the SEC.

Expanding our Network, Diversity, and Mix of Funding Relationships

Our capital efficient funding model is integral to the success of our platform. As we scale the number of transactions on our network and grow GMV, we maintain a variety of funding relationships in order to support our network. Our diversified funding relationships include warehouse facilities, securitization trusts, variable funding notes, forward flow arrangements, and partnerships with banks. Given the short duration and strong performance of our assets, funding can be recycled quickly, resulting in a high-velocity, capital efficient funding model. As of March 31, 2026 and June 30, 2025, our equity capital as a percentage of our total platform portfolio, defined as the unpaid principal balance of all loans facilitated through our platform, was 5% and 4%, respectively. The mix of on-balance sheet and off-balance sheet funding is a function of how we choose to allocate

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1820953/000182095325000080/afrm-20250630.htm
Complete FY 2025 MD&A: /company/AFRM/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-08-28
Report date: 2025-06-30

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K (“Form 10-K”). You should review the section titled “Risk Factors” for a discussion of important factors that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Unless the context otherwise requires, all references in this Report to “Affirm,” the “Company,” “we,” “our,” “us,” or similar terms refer to Affirm Holdings, Inc. and its subsidiaries. A discussion regarding our financial condition and results of operations for the fiscal year ended June 30, 2025 compared to the fiscal year ended June 30, 2024 is presented below. A discussion regarding our financial condition and results of operations for the fiscal year ended June 30, 2024 compared to the fiscal year ended June 30, 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

Overview

We are building the next generation payment network. We believe that by using modern technology, strong engineering talent, and a mission-driven approach, we can reinvent payments and commerce. Our solutions, which are built on trust and transparency, are designed to make it easier for consumers to spend and save responsibly and with confidence, easier for merchants and commerce platforms to convert sales and grow, and easier for commerce to thrive.

Our point-of-sale solutions allow consumers to pay for purchases in fixed amounts without deferred interest, late fees, or penalties. We empower consumers to pay over time rather than paying for a purchase entirely upfront. This increases consumers’ purchasing power and gives them more control and flexibility. Our platform facilitates both true 0% APR payment options and interest-bearing loans. On the merchant side, we offer commerce enablement, demand generation, and consumer acquisition tools. Our solutions empower merchants to more efficiently promote and sell their products, optimize their consumer acquisition strategies, and drive incremental sales. We also provide valuable product-level data and insights — information that merchants cannot easily get elsewhere — to better inform their strategies. Finally, for consumers, our app unlocks the full suite of Affirm products for a delightful end-to-end consumer experience. Consumers can use our app to apply for installment loans, and upon approval, they can use the Affirm Card digitally online or in-stores to complete a purchase. Additionally, consumers can manage the pre and post purchase split of Affirm Card transactions into a loan, manage payments, open a high-yield savings account, and access a personalized marketplace.

Our Company is predicated on the principles of simplicity, transparency, and putting people first. By adhering to these principles, we have built enduring, trust-based relationships with consumers and merchants that we believe will set us up for long-term, sustainable success. We believe our innovative approach uniquely positions us to define the future of commerce and payments.

Technology and data are at the core of everything we do. Our expertise in sourcing, aggregating, and analyzing data has been what we believe to be the key competitive advantage of our platform since our founding. We believe our proprietary technology platform and data give us a unique advantage in pricing risk. We use data to inform our risk scoring in order to generate value for our consumers, merchants, and capital partners. We also prioritize building our own technology and investing in product and engineering talent as we believe these are enduring competitive advantages that are difficult to replicate. Our solutions use the latest in machine learning, artificial intelligence, cloud-based technologies, and other modern tools to create differentiated and scalable products.

61

Table of Contents

[[GREPCENT_TABLE]]
[["","","Year ended June 30,","","2025 vs 2024","","2024 vs 2023"],["","","2025","","2024","","2023","","$","","%","","$","","%"],["","(in thousands, except percentages)"],["Total revenue, net","","$","3,224,412","","","$","2,322,999","","","$","1,587,985","","","$","901,413","","","39","%","","$","735,014","","","46","%"],["Total operating expenses","","3,311,685","","","2,938,846","","","2,788,847","","","372,839","","","13","%","","149,999","","","5","%"],["Operating loss","","$","(87,273)","","","$","(615,847)","","","$","(1,200,862)","","","$","528,574","","","86","%","","$","585,015","","","49","%"],["Other income, net","","148,737","","","100,320","","","211,617","","","48,417","","","48","%","","(111,297)","","","(53)","%"],["Income (loss) before income taxes","","$","61,464","","","$","(515,527)","","","$","(989,245)","","","$","576,991","","","112","%","","$","473,718","","","(48)","%"],["Income tax expense (benefit)","","9,279","","","2,230","","","(3,900)","","","7,049","","","316","%","","6,130","","","(157)","%"],["Net income (loss)","","$","52,186","","","$","(517,757)","","","$","(985,345)","","","$","569,943","","","110","%","","$","467,588","","","(47)","%"]]
[[/GREPCENT_TABLE]]

Our Financial Model

Our Revenue Model

We have three main loan product offerings: Pay-in-X, 0% annual percentage rate (“APR”) monthly installment loans and interest-bearing monthly installment loans. Pay-in-X primarily consists of short-term payment plans with one to four 0% APR installments.

From merchants, we typically earn a fee when we help them convert a sale and facilitate a transaction. Merchant fees depend on the individual arrangement between us and each merchant and vary based on the terms of the product offering; we generally earn larger merchant fees on 0% APR financing products. For the years ended June 30, 2025, 2024, and 2023, Pay-in-X represented 14%, 15%, and 19%, respectively, of total GMV facilitated through our platform while 0% APR installment loans represented 13%, 11%, and 13%, respectively.

From consumers, we earn interest income on the simple interest loans that we originate or purchase from our originating bank partners. Interest rates charged to our consumers vary depending on the transaction risk, creditworthiness of the consumer, the repayment term selected by the consumer, the amount of the loan, and the individual arrangement with a merchant. Because our consumers are never charged deferred or compounding interest, late fees, or penalties on the loans, we are not incentivized to profit from our consumers’ hardships. In addition, interest income includes the amortization of any discounts or premiums on loan receivables created upon either the purchase of a loan from one of our originating bank partners or our direct origination of a loan. For the years ended June 30, 2025, 2024, and 2023, interest bearing loans represented 72%, 74%, and 68% of total GMV facilitated through our platform, respectively.

In order to accelerate our ubiquity, we facilitate the issuance of one-time-use virtual cards directly to consumers through our app, allowing them to shop with merchants that may not yet be fully integrated with Affirm. Similarly, we also facilitate the issuance of the Affirm Card, a card that can be used physically or virtually and which allows consumers to link a bank account to pay in full, or pay later by accessing credit through the Affirm App. When these cards are used over established card networks, we earn a portion of the interchange fee from the transaction.

Our Loan Origination and Servicing Model

When a consumer applies for a loan through our platform, the loan is underwritten using our proprietary risk model. Once approved for the loan, the consumer then selects their preferred repayment option. A portion of these loans are funded and issued by our originating bank partners, which include Cross River Bank, an FDIC-insured New Jersey state-chartered bank, Celtic Bank, an FDIC-insured Utah state-chartered industrial bank, and Lead Bank, an FDIC-insured Missouri state-chartered bank. These partnerships allow us to benefit from our partners’ ability to originate loans under their banking licenses while complying with various federal, state, and

62

Table of Contents

other laws. Under this arrangement, we must comply with our originating bank partners' credit policies and underwriting procedures, and our originating bank partners maintain ultimate authority to decide whether to originate a loan or not. When an originating bank partner originates a loan, it funds the loan through its own funding sources and may subsequently offer and sell the loan to us. Pursuant to our agreements with these partners, we are obligated to purchase the loans facilitated through our platform that such partner offers us and our obligation is secured by cash deposits. To date, we have purchased all of the loans facilitated through our platform and originated by our originating bank partners. When we purchase a loan from an originating bank partner, the purchase price is equal to the outstanding principal balance of the loan, plus a fee and any accrued interest. The originating bank partner also retains an interest in the loans purchased by us through a loan performance fee that is payable by us on the aggregate principal amount of a loan that is paid by a consumer. Refer to Note 13. Fair Value of Financial Assets and Liabilities of the accompanying notes to our consolidated financial statements for more information on the performance fee liability.

We are also able to originate loans directly under our lending, servicing, and brokering licenses in Canada, the U.K., and across most states in the U.S. through our consolidated subsidiaries. We directly originated approximately $6.3 billion, or 17%, $4.5 billion, or 17%, and $3.7 billion, or 18% of loans for the years ended June 30, 2025, 2024 and 2023, respectively.

We act as the servicer on all loans that we originate directly or purchase from our originating bank partners and earn a servicing fee on loans held by third parties, including bank partners prior to loan purchase and third-party loan buyers if subsequently sold as part of our funding strategy. In the normal course of business, we do not sell the servicing rights on any of the loans. To allow for flexible staffing to support overflow and seasonal traffic, we partner with several sub-servicers to manage consumer care, first priority collections, and third-party collections in accordance with our policies and procedures.

Factors Affecting Our Performance

Our performance has been and may continue to be affected by many factors, including those identified below, as well as the factors discussed in the section titled “Risk Factors” in this Form 10-K.

Expanding our Network, Diversity, and Mix of Funding Relationships

Our capital efficient funding model is integral to the success of our platform. As we scale the number of transactions on our network and grow GMV, we maintain a variety of funding relationships in order to support our network. Our diversified funding relationships include warehouse facilities, securitization trusts, variable funding notes, forward flow arrangements, and partnerships with banks. Given the short duration and strong performance of our assets, funding can be recycled quickly, resulting in a high-velocity, capital efficient funding model. As of June 30, 2025 and June 30, 2024, our equity capital as a percentage of our total platform portfolio was 4% and 5%, respectively. The mix of on-balance sheet and off-balance sheet funding is a function of ho

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AFRM/mda/fy2025/
All MD&A years: /company/AFRM/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AFRM/mda/fy2024/): filed 2024-08-28; accession 0001820953-24-000035 (https://www.sec.gov/Archives/edgar/data/1820953/000182095324000035/afrm-20240630.htm)
- [FY 2023 MD&A](/company/AFRM/mda/fy2023/): filed 2023-08-25; accession 0001820953-23-000016 (https://www.sec.gov/Archives/edgar/data/1820953/000182095323000016/afrm-20230630.htm)
- [FY 2022 MD&A](/company/AFRM/mda/fy2022/): filed 2022-08-29; accession 0001628280-22-023828 (https://www.sec.gov/Archives/edgar/data/1820953/000162828022023828/afrm-20220630.htm)
- [FY 2021 MD&A](/company/AFRM/mda/fy2021/): filed 2021-09-17; accession 0001820953-21-000102 (https://www.sec.gov/Archives/edgar/data/1820953/000182095321000102/afrm-20210630.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6141 Personal Credit Institutions) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [M2SL](/indicator/M2SL/): M2
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AFRM.md · JSON record: /company/AFRM.json · verified financials: /company/AFRM/financials.json / /company/AFRM/financials.csv · machine TOC for the whole site: /llms.txt