Financial Performance - Total revenue for the three months ended December 31, 2024, was $866.4 million, a 47% increase from $591.1 million in the same period of 2023[221]. - Operating loss decreased to $4.3 million for the three months ended December 31, 2024, compared to a loss of $172.2 million in the same period of 2023, representing a 97% improvement[221]. - Net income for the three months ended December 31, 2024, was $80.4 million, a significant turnaround from a net loss of $166.9 million in the same period of 2023[221]. - Merchant network revenue for the three months ended December 31, 2024, was $244.9 million, a 30% increase from $188.4 million in the same period of 2023[253]. - Interest income for the three months ended December 31, 2024, was $409.4 million, a 42% increase from $288.3 million in the same period of 2023[253]. - The company reported a net income of $80.4 million for the three months ended December 31, 2024, compared to a net loss of $166.9 million in the same period of 2023[253]. - Merchant network revenue increased by $56.5 million, or 30%, and $94.9 million, or 28%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. - GMV increased by $2.7 billion, or 35%, and $4.6 billion, or 35%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. Consumer Metrics - As of December 31, 2024, the company had approximately 21.0 million active consumers, a 19% increase from approximately 17.6 million active consumers as of December 31, 2023[249]. - The average number of transactions per active consumer increased by 22% to approximately 5.3 transactions as of December 31, 2024, compared to 4.4 transactions as of December 31, 2023[251]. - Active merchant base grew to approximately 337 thousand and active consumers reached 21.0 million as of December 31, 2024, up from approximately 279 thousand and 17.6 million, respectively, as of December 31, 2023[256]. Loan and Credit Metrics - For the three months ended December 31, 2024, interest-bearing loans represented 72% of total GMV facilitated through the platform, compared to 73% in the same period of 2023[223]. - The company directly originated approximately $1.7 billion in loans for the three months ended December 31, 2024, maintaining a consistent 17% of total loans originated compared to the same period in 2023[227]. - The volume of loan modifications during the fiscal quarter ended December 31, 2024, represented 0.15% of the outstanding principal balance of loans held on the balance sheet[239]. - Credit risk exposure related to loans held on the balance sheet was $6.8 billion as of December 31, 2024, compared to $5.7 billion as of June 30, 2024[324]. - The company sold $6.8 billion of unpaid principal balance of loans subject to risk sharing arrangements as of December 31, 2024, with a maximum exposure to losses of $85.1 million[324]. Economic and Market Conditions - The macroeconomic environment, including inflation and interest rate changes, continues to impact consumer spending and business operations[236]. - Seasonal fluctuations in GMV are expected, with the strongest performance typically during the fiscal second quarter due to holiday retail commerce[235]. - Continued volatility in interest rates may adversely impact consumer spending levels and willingness to pay outstanding amounts owed[319]. Technology and Competitive Advantage - The company’s proprietary technology platform and data analytics are key competitive advantages, enhancing risk pricing and consumer value[219]. - The company’s innovative approach and focus on technology position it to define the future of commerce and payments[218]. Financial Position and Cash Flow - As of December 31, 2024, the company had $1.9 billion in cash and cash equivalents and available for sale securities, $3.6 billion in available funding debt capacity, and $330.0 million in borrowing capacity under the revolving credit facility[286]. - Net cash provided by operating activities was $508.9 million for the six months ended December 31, 2024, compared to $173.2 million for the same period in 2023[300][304]. - Net cash used in investing activities was $664.1 million for the six months ended December 31, 2024, with outflows related to $15.1 billion of purchases and origination of loans held for investment[305]. - Net cash provided by financing activities was $609.7 million for the six months ended December 31, 2024, primarily from net cash inflows of $750.0 million from new issuance and repayment of notes[307]. Risk Management and Internal Controls - The company maintains an interest rate risk management program to mitigate potential volatility of earnings from changes in interest rates[321]. - The company utilizes proprietary underwriting models to manage credit risk associated with consumer loans[322]. - The company intends to continue monitoring and upgrading internal controls as necessary, acknowledging inherent limitations in their effectiveness[329]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended December 31, 2024[328]. - The company’s management evaluated the effectiveness of disclosure controls and concluded they were effective as of the end of the reporting period[327].

affirm) Second Fiscal Quarter 2025 Shareholder Letter a · 1234 (0) Pay over time Pay in full a Purchasing power ( $1,200 Plan a purchase Exciting 0% APR deals for the golfer in your life > Fellow Affirm Shareholders, We exceeded the outlook established in our previous letter on all financial metrics in FQ2'25: Gross Merchandise Volume Revenue Less Transaction Revenue ("GMV") Costs ("RLTC")1 Adjusted Operating Income® Operating Income Net Income As a percentage of Revenue As a percentage of Revenue +12 pp $2 ...

Financial Data and Key Metrics Changes - The company reported strong unit economics with improvements in revenue as a percentage of GMV and RLTC margins increasing from 10 to 20 basis points, driven by interest income and capital market benefits [8][15][39] - Adjusted operating income margin guidance is now above 20%, with expectations for the fiscal second quarter to be between 21% to 23% [22][23] Business Line Data and Key Metrics Changes - The company is experiencing healthy consumer growth, with active consumer growth accelerating due to deeper approvals and more compelling new consumer deals [25] - The company is focused on increasing transaction frequency among existing users, achieving a new record of five transactions per user [25] Market Data and Key Metrics Changes - The company is entering the UK market, where there is strong demand for longer-term payment products, which are currently underserved [28] - The competitive landscape in the UK is noted to be challenging, but the company believes its unique business model and underwriting capabilities will provide a competitive advantage [30] Company Strategy and Development Direction - The company is preparing for a strong holiday season, leveraging 0% promotions to attract new consumers and drive sales [20] - The company aims to harmonize its financial programs across multiple channels, enhancing consistency and consumer engagement [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the margin performance in the second half of the year, with expectations for continued growth in margins and operating leverage [15][23] - The company is confident in its ability to navigate regulatory scrutiny and maintain growth, particularly with the Affirm card rollout [34] Other Important Information - The company is focused on maintaining a stable funding base while benefiting from favorable capital market conditions [17] - Management emphasized the importance of underwriting expertise and data utilization in sustaining competitive advantages [31][35] Q&A Session Summary Question: Can you unpack the uplift to revenue as a percentage of GMV for the full year? - The company highlighted strong unit economics and benefits from interest income and capital markets [8] Question: What is the current underwriting posture and expected RLTC margin trend? - Management indicated a stable underwriting posture with expectations for healthy margins in the upcoming quarters [12][15] Question: How does secondary market activity impact balance sheet management? - The company noted strong demand for whole loan purchasers and emphasized careful management of funding channels [17] Question: What is the outlook for 0% promotions during the holiday season? - Management expressed confidence in leveraging 0% promotions to drive consumer engagement and sales [20] Question: What are the expectations for long-term operating income margins? - The company reiterated its long-term margin framework while acknowledging current performance above expectations [22][23] Question: What are the early thoughts on the UK launch and competitive landscape? - Management reported strong initial reception in the UK and emphasized the unique value proposition of their offerings [28][30] Question: Will increased regulatory scrutiny impact the growth of the Affirm card? - Management assured that regulatory scrutiny would not hinder growth and emphasized their strong compliance framework [34] Question: Are there nuances in underwriting consumers in the UK versus the US? - Management indicated readiness to apply their underwriting expertise in the UK while monitoring early performance metrics [35][36]

Financial Performance - Total revenue for the three months ended September 30, 2024, was $698.5 million, a 41% increase from $496.5 million in the same period of 2023[219]. - Total operating expenses increased to $831.1 million, up 18% from $706.0 million year-over-year[219]. - The operating loss improved to $(132.6) million, a 37% reduction compared to $(209.4) million in the prior year[219]. - Net loss for the quarter was $(100.2) million, down 42% from $(171.8) million in the same quarter of 2023[219]. - For the three months ended September 30, 2024, Gross Merchandise Volume (GMV) was $7.6 billion, representing a 35% increase compared to $5.6 billion in the same period of 2023[241]. - Merchant network revenue increased by $38.4 million, or 26%, for the three months ended September 30, 2024, driven by a $2.0 billion increase in GMV[253]. - Card network revenue grew by $14.0 million, or 42%, for the three months ended September 30, 2024, correlating with a 38% increase in GMV processed through card-issuing partners[255]. - Interest income rose by $114.4 million, or 44%, for the three months ended September 30, 2024, attributed to a 34% increase in the average balance of loans held for investment[257]. - Gain on sales of loans increased by $29.3 million, or 86%, for the three months ended September 30, 2024, with loan sales totaling $2.8 billion compared to $2.2 billion in the same period of 2023[258]. - The net loss for the three months ended September 30, 2024, was $100.2 million, a 42% improvement from a net loss of $171.8 million in the same period of 2023[248]. Loan and Credit Metrics - Pay-in-X loans represented 14% of total GMV for Q3 2024, slightly down from 15% in Q3 2023, while 0% APR installment loans remained stable at 11%[221]. - Interest-bearing loans accounted for 75% of total GMV in Q3 2024, compared to 74% in Q3 2023[222]. - Approximately $1.3 billion, or 17%, of loans were directly originated by the company in Q3 2024, consistent with the previous year[226]. - The company has expanded its loan modification programs, resulting in a modest benefit to delinquency rates, with modified loans representing 0.18% and 0.42% of the outstanding principal balance as of September 30, 2024[239]. - Provision for credit losses increased by $60.1 million, or 60%, for the three months ended September 30, 2024, with loans held for investment rising to $6.3 billion, a 39% increase compared to the same period in 2023[266]. - The company was exposed to credit risk on $6.3 billion of loans held on its balance sheet, an increase from $5.7 billion as of June 30, 2024[317]. - Approximately 11% of loan receivables were related to customers in California, with no other state exceeding 10%[317]. - The company sold $5.6 billion of unpaid principal balance of loans subject to risk sharing arrangements as of September 30, 2024, compared to $4.2 billion as of June 30, 2024[317]. - The maximum exposure to losses from risk sharing arrangements was $101.5 million as of September 30, 2024, up from $81.2 million as of June 30, 2024[317]. Cash Flow and Funding - Net cash provided by operating activities for the three months ended September 30, 2024, was $196.9 million, compared to $98.9 million for the same period in 2023[293][296]. - Net cash used in investing activities was $575.0 million for the three months ended September 30, 2024, primarily due to $6.4 billion in purchases and origination of loans held for investment[297]. - Net cash provided by financing activities was $465.6 million for the three months ended September 30, 2024, mainly from net cash inflows of $750.0 million from new issuance and repayment of notes[299]. - As of September 30, 2024, the company had $2.1 billion in cash and cash equivalents and available for sale securities, with $3.9 billion in available funding debt capacity[282]. - As of September 30, 2024, the company has drawn an aggregate of $1.3 billion on its U.S. warehouse credit facilities, which allow borrowing up to $5.0 billion[286]. - The aggregate commitment amount of Canadian credit facilities was $652.9 million, with $407.0 million drawn as of September 30, 2024[287]. - The company had $22.4 million and $34.5 million in debt outstanding under sale and repurchase agreements as of September 30, 2024, and June 30, 2024, respectively[288]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $831.1 million, an 18% increase from $706.0 million in the same period of 2023[248]. - Loss on loan purchase commitment rose by $19.4 million, or 56%, for the three months ended September 30, 2024, primarily due to a 40% increase in total volume of loans purchased, from $4.6 billion to $6.4 billion[264]. - Funding costs increased by $30.2 million, or 41%, for the three months ended September 30, 2024, attributed to a 34% increase in average total funding debt from $4.0 billion to $5.4 billion[268]. - Processing and servicing expense increased by $19.5 million, or 26%, for the three months ended September 30, 2024, driven by a 38% increase in payment processing fees[270]. - Technology and data analytics expense increased by $1.3 million, or 1%, for the three months ended September 30, 2024, with amortization of internally-developed software rising by 44% due to a 127% increase in capitalized projects[272]. - Sales and marketing expense decreased by $1.6 million, or 1%, during the three months ended September 30, 2024, primarily due to a 92% decrease in the amortization of intangible assets[274]. - General and administrative expense decreased by $1.9 million, or 1%, during the three months ended September 30, 2024, mainly due to an 8% decrease in payroll and personnel-related costs[276]. - Other income, net, decreased by $4.4 million, or 11%, during the three months ended September 30, 2024, primarily due to a decrease in non-operating income related to the wind-down of the Returnly business[279]. Market and Economic Conditions - The company continues to monitor macroeconomic conditions, noting that elevated borrowing costs and economic uncertainty may impact consumer demand and transaction costs[234][235]. - The company estimates that a hypothetical instantaneous 100 basis point upward shock to interest rates would have a less than $55.0 million adverse impact on cash flows associated with market risk sensitive instruments over the next 12 months[313]. - Continued volatility in interest rates may adversely impact consumers' spending levels and their ability to pay outstanding amounts owed[311]. - The company has not experienced any credit losses related to its financial institutions but acknowledges potential material adverse effects if multiple financing sources fail to fulfill obligations[318]. - The company maintains cash deposits in highly-rated, federally-insured financial institutions, managing credit risk through diversification and established guidelines[318].

| --- | --- | --- | |---------------------------|-------------------------------------------------------------------------------|---------| | | | | | affirm) | | | | Shareholder Letter | | | | First Fiscal Quarter 2025 | " = છે ଷ୍ର | | | | Add money Request to split eligible purchases of $50 d $58.32 $117.72 @ ® g D | affirm) | Max Levchin Founder and CEO Fellow Affirm shareholders: Affirm galloped out of the gates in FQ1'25. We met or exceeded every metric provided in the August outlook: | --- | --- | --- ...

Affirm Holdings, Inc. (NASDAQ:AFRM) Goldman Sachs Communacopia + Technology Conference 2024 September 11, 2024 4:45 PM ET Company Participants Max Levchin - Founder and CEO Conference Call Participants William Nance - Goldman Sachs William Nance All right. So we're going to kick it off today. Very excited to have Max Levchin here, Founder and CEO of Affirm, who just put up a series of really strong quarters. Closed out the year, now guiding to around 30% GMV growth in fiscal '25. Expect to exit the fiscal y ...

Financial Data and Key Metrics Changes - The company reported a strong quarter in fiscal year 2024, highlighting growth and profitability improvements [7] - The guidance for fiscal 2025 reflects a conservative approach, with a focus on achievable targets [12][14] Business Line Data and Key Metrics Changes - The company emphasized the importance of its credit control, stating that they have a short-term exposure and manage credit outcomes effectively [12] - The growth rate in the first quarter guidance indicates progress in initiatives that have already shipped and are contributing to GMV [13] Market Data and Key Metrics Changes - The company is not currently factoring in future market expectations of funding costs into their decision-making process, focusing instead on current funding costs [31] - The company expects that if rates decrease, it could lead to better approval rates and increased user activity [17] Company Strategy and Development Direction - The leadership structure is evolving, with the CFO taking on an expanded role as COO, indicating a strategic shift to support long-term scaling [8] - The company is focused on enhancing its product offerings and improving customer engagement through various promotional tools [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their ability to navigate a potentially falling rate environment, highlighting the flexibility of their pricing model [17] - The company is optimistic about the future, with plans to continue expanding margins while investing in growth opportunities [28] Other Important Information - The company achieved GAAP profitability in the fourth quarter, marking a significant milestone [38] - The management clarified that they do not need to become a bank to conduct their business effectively, emphasizing their focus on growth and credit management [53] Q&A Session Summary Question: Fiscal 2025 guidance and credit environment - Management discussed their conservative approach to setting guidance and their control over credit outcomes [12][14] Question: Business performance in a falling rate environment - Management highlighted the benefits of their pricing model and the potential for increased user activity if rates decrease [17] Question: RLTC performance and key variables for 2025 - Management noted that the mix of business and credit outcomes will be significant factors in RLTC performance [21] Question: Control and visibility into credit outcomes - Management acknowledged the increase in repeat users and transactions, indicating improved visibility into future volume trends [24] Question: Operating leverage and AOI margins - Management expressed pride in the progress made on operating leverage and the expectation for continued margin expansion [28] Question: Apple Pay and competitive landscape - Management discussed the complexities of the Buy Now Pay Later market and the unique advantages of their platform [39] Question: Customer base composition and promotional capabilities - Management outlined plans to enhance customer engagement through tailored promotional offerings [44][46] Question: User experience with Apple Pay and unit economics - Management clarified that they aim to maintain unit economics within the 3% to 4% range, regardless of the payment channel [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 OR ☐ 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) Delaware 84-2224323 (I.R.S. Emp ...

We delivered excellent results in both the fourth fiscal quarter as well as full 2024 fiscal year. affirm) .. 11 ? t 2 9:41 4 ଭ My card (a Pay in full Add money Recent transactions affirm) quest to split eligible purchases of $50 c to 24 hours after checkout. ① $28.32 22 hours left to pay over time Johnie's Coffee Shop $117.72 四 (5) The Container Store D 0 88 Shareholder Letter Fourth Fiscal Quarter 2024 Max Levchin Founder and CEO Fellow Affirm shareholders: Just over two years ago, we set a public goal of ...

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 March 31, 2024 OR ☐ 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) (Registrant's telephon ...