Affirm Holdings, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
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5. Balance Sheet Components
- 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 $20.2 million and $18.8 million as of September 30, 2025 and June 30, 2025, respectively.
Property, Equipment and Software, net
Property, equipment and software, net consisted of the following (in thousands):
| September 30, 2025 | June 30, 2025 | |
|---|---|---|
| Internally developed software | $1,088,527 | $987,399 |
| Leasehold improvements | 23,725 | 21,990 |
| Computer equipment | 10,353 | 9,555 |
| Furniture and equipment | 9,488 | 9,007 |
| Total property, equipment and software, at cost | $1,132,093 | $1,027,952 |
| Less: Accumulated depreciation and amortization | (518,155) | (455,315) |
| Total property, equipment and software, net | $613,938 | $572,637 |
Depreciation and amortization expense on property, equipment and software was $65.3 million and $46.1 million for the three months ended September 30, 2025 and 2024, respectively.
No impairment losses related to property, equipment and software were recorded during the three months ended September 30, 2025 and 2024.
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill during the three months ended September 30, 2025 were as follows (in thousands):
| Balance as of June 30, 2025 | $534,156 |
|---|---|
| Adjustments (1) | (4,245) |
| Balance as of September 30, 2025 | $529,910 |
(1)Adjustments to goodwill during the three months ended September 30, 2025 primarily pertained to foreign currency translation adjustments.
No impairment losses related to goodwill were recorded during the three months ended September 30, 2025 and 2024.
Intangible assets consisted of the following (in thousands):
| Gross | Accumulated Amortization | Net | Weighted Average Remaining Useful Life (in years) | |
|---|---|---|---|---|
| Merchant relationships | $37,695 | $(37,695) | $— | 0.0 |
| Developed technology | 39,347 | (39,288) | 59 | 1.1 |
| Assembled workforce | 12,490 | (12,490) | — | 0.0 |
| Trademarks and domains | 1,434 | (1,387) | 47 | 0.3 |
| Trademarks, licenses and domains | 12,229 | — | 12,229 | Indefinite |
| Other intangibles | 350 | — | 350 | Indefinite |
| Total intangible assets | $103,545 | $(90,860) | $12,685 |
| Gross | Accumulated Amortization | Net | Weighted AverageRemaining 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 and $0.6 million for thethree months ended September 30, 2025 and 2024, respectively. No impairment losses related to intangible assets were recorded during the three months ended September 30, 2025 and 2024.
The expected future amortization expense of these intangible assets as of September 30, 2025 is as follows, by fiscal year (in thousands):
| 2026 (remaining nine months) | $91 |
| 2027 | 15 |
| 2028 | — |
| 2029 | — |
| 2030 and thereafter | — |
| Total amortization expense | $106 |
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 to be realized over the expected benefit period offour years. For both the three months ended September 30, 2025 and 2024, we recognized amortization expense of $5.2 million in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of September 30, 2025, the accumulated amortization is $126.6 million and the remaining net asset value is $7.0 million, which will be recognized over the remaining useful life of 0.3 years. Refer to Note 13. Stockholders’ Equity for further discussion of the warrants.
In fiscal year 2021, we granted warrants in exchange for the opportunity to acquire new merchant partners through a commercial agreement with Shopify Inc. (“Shopify”). We recognized an asset of $270.6 million based on the grant-date fair value of the vested warrants. We amortize the asset over the expected benefit period, which was extended fromsix tonine years during the fiscal year 2025 upon execution of a commercial agreement that superseded and replaced the previous commercial agreement. The benefit period is reevaluated each reporting period. For the three months ended September 30, 2025 and 2024, we recorded amortization expense related to the commercial agreement asset of $2.8 million and $9.0 million, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of September 30, 2025, the accumulated amortization is $228.3 million and the remaining net asset value is $42.3 million, which will be recognized over the remaining useful life of 3.8 years.
Other Assets
Other assets consisted of the following (in thousands):
| September 30, 2025 | June 30, 2025 | |
|---|---|---|
| Processing reserves | $68,416 | $90,826 |
| Prepaid expenses | 46,411 | 47,027 |
| Risk sharing assets | 41,565 | 43,179 |
| Equity securities held at cost | 40,396 | 40,277 |
| Prepaid payroll taxes for stock-based compensation | 31,606 | 25,188 |
| Operating lease right-of-use assets | 16,754 | 19,124 |
| Foreign deferred tax asset | 11,889 | 13,929 |
| Other assets | 12,677 | 15,810 |
| Total other assets | $269,713 | $295,360 |
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
| September 30, 2025 | June 30, 2025 | |
|---|---|---|
| Accrued expenses | $75,669 | $72,813 |
| Operating lease liability | 28,108 | 31,943 |
| Other liabilities | 62,053 | 52,516 |
| Total accrued expenses and other liabilities | $165,830 | $157,272 |
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