Affirm Holdings, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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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.
Mar 31, 2026 · Filed May 7, 2026
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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 $24.0 million and $18.8 million as of March 31, 2026 and June 30, 2025, respectively.
Property, Equipment and Software, net
Property, equipment and software, net consisted of the following (in thousands):
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| Internally developed software | $1,276,136 | $987,399 |
| Leasehold improvements | 30,865 | 21,990 |
| Computer equipment | 11,330 | 9,555 |
| Furniture and equipment | 10,634 | 9,007 |
| Total property, equipment and software, at cost | $1,328,965 | $1,027,952 |
| Less: Accumulated depreciation and amortization | (660,673) | (455,315) |
| Total property, equipment and software, net | $668,292 | $572,637 |
Depreciation and amortization expense on property, equipment and software was $74.9 million and $215.7 million for the three and nine months ended March 31, 2026, respectively, and $59.4 million and $159.8 million for the three and nine months ended March 31, 2025, respectively.
No impairment losses related to property, equipment and software were recorded during the three and nine months ended March 31, 2026 and 2025.
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill during the nine months ended March 31, 2026 were as follows (in thousands):
| Balance as of June 30, 2025 | $534,156 |
|---|---|
| Adjustments (1) | (4,872) |
| Balance as of March 31, 2026 | $529,284 |
(1)Adjustments to goodwill during the nine months ended March 31, 2026 primarily pertained to foreign currency translation adjustments.
No impairment losses related to goodwill were recorded during the three and nine months ended March 31, 2026 and 2025.
Intangible assets consisted of the following (in thousands):
| Gross | Accumulated Amortization | Net | Weighted Average Remaining Useful Life (in years) | |
|---|---|---|---|---|
| Merchant relationships | $52,826 | $(37,826) | $15,000 | 3.8 |
| Developed technology | 39,431 | (39,401) | 30 | 0.6 |
| Assembled workforce | 12,490 | (12,490) | — | 0.0 |
| Trademarks and domains | 1,448 | (1,448) | — | 0.0 |
| Trademarks, licenses and domains | 12,056 | — | 12,056 | Indefinite |
| Other intangibles | 350 | — | 350 | Indefinite |
| Total intangible assets | $118,601 | $(91,165) | $27,436 |
| 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 immaterial for the three and nine months ended March 31, 2026, andfor the three months ended March 31, 2025. Amortization expense for intangible assets was $1.3 million for the nine months ended March 31, 2025. No impairment losses related to intangible assets were recorded during the three and nine months ended March 31, 2026 and 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”) and recognized an asset of $133.5 million based on the grant date fair value of the warrants that were fully vested upon grant. The asset is amortized over the expected benefit period, which was extended from four tonine years in November 2025 upon the execution of a commercial agreement that superseded the prior agreement. For the three and nine months ended March 31, 2026, we recognized amortization expense of $0.2 million and $7.4 million, respectively, and $5.1 million and $15.6 million for the three and nine months ended March 31, 2025, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of March 31, 2026, the accumulated amortization is $128.7 million and the remaining net asset value is $4.8 million, which will be recognized over the remaining useful life of 4.8 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 fiscal year 2025 upon execution of a commercial agreement that superseded the prior agreement. The benefit period is reevaluated each reporting period. For the three and nine months ended March 31, 2026, we recorded amortization expense related to the commercial agreement asset of $2.8 million and $8.4 million, respectively, and $5.8 million and $23.9 million for the three and nine months ended March 31, 2025, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense. As of March 31, 2026, the accumulated amortization is $233.9 million and the remaining net asset value is $36.7 million, which will be recognized over the remaining useful life of 3.3 years.
Other Assets
Other assets consisted of the following (in thousands):
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| Processing reserves | $118,167 | $90,826 |
| Prepaid expenses | 57,964 | 44,912 |
| Equity securities held at cost | 40,396 | 40,277 |
| Derivative instruments | 34,732 | 45,823 |
| Prepaid merchant incentives | 31,672 | 2,114 |
| Operating lease right-of-use assets | 23,532 | 19,124 |
| Prepaid payroll taxes for stock-based compensation | 20,421 | 25,188 |
| Foreign deferred tax asset | 7,430 | 13,929 |
| Other assets | 17,613 | 13,166 |
| Total other assets | $351,927 | $295,360 |
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| Accrued expenses | $117,076 | $72,813 |
| Operating lease liability | 38,563 | 31,943 |
| Other liabilities | 62,299 | 52,516 |
| Total accrued expenses and other liabilities | $217,938 | $157,272 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.