10-QPeriod: Q3 FY2025

Affirm Holdings, Inc. Quarterly Report for Q3 Ended Mar 31, 2025

Filed May 9, 2025For Securities:AFRM

Summary

Affirm Holdings, Inc. reported a significant increase in revenue for the nine months ended March 31, 2025, up 41% year-over-year to $2.35 billion, driven by strong growth in merchant network revenue and interest income. While the company achieved net income of $2.8 million in the latest quarter, a substantial improvement from a net loss of $133.9 million in the prior year's comparable quarter, the nine-month period still resulted in a net loss of $17.1 million. Total assets grew to $10.4 billion, supported by an increase in loans held for investment, which rose to $6.26 billion. The company also managed its debt effectively, with total liabilities representing approximately 72% of total assets. Affirm continues to focus on expanding its network, with GMV increasing by 36% year-over-year, and active consumers growing by 21% to 21.9 million. The company's financial performance demonstrates robust top-line growth and a move towards profitability, though significant interest expenses and credit loss provisions remain key areas to monitor. The expansion of its merchant network and consumer base, coupled with a diversified funding strategy, positions Affirm for continued growth. Investors should closely watch the company's ability to further improve its profitability and manage credit risks in the evolving macroeconomic environment.

Financial Highlights

39 data points
Beta

Revenue

$783.13M

Net Income

$2.80M

0.4% Net Margin

EPS (Diluted)

$0.01

Total Assets

$10.44B

Cash & Equivalents

$1.35B

Free Cash Flow

$157.38M

Financial Statements
Beta
Revenue$783.13M
Operating Expenses$791.53M
Operating Income-$8.39M
Interest Expense$107.63M
Net Income$2.80M
EPS (Basic)$0.01
EPS (Diluted)$0.01
Shares Outstanding (Basic)324.05M
Shares Outstanding (Diluted)344.22M

Key Highlights

  • 1Total revenue for the nine months ended March 31, 2025, increased by 41% to $2.35 billion, compared to $1.66 billion in the prior year period.
  • 2Net income for the three months ended March 31, 2025, was $2.8 million, a significant improvement from a net loss of $133.9 million in the same period last year.
  • 3Gross Merchandise Volume (GMV) increased by 36% year-over-year to $8.6 billion for the quarter and $26.3 billion for the nine-month period.
  • 4Active consumers grew by 21% to approximately 21.9 million as of March 31, 2025.
  • 5Loans held for investment increased to $6.26 billion as of March 31, 2025, from $5.36 billion as of June 30, 2024.
  • 6The company repurchased $1.1 billion aggregate principal amount of its 2026 Notes for $1.0 billion in cash during the nine months ended March 31, 2025.
  • 7Total assets increased to $10.4 billion as of March 31, 2025, up from $9.5 billion as of June 30, 2024.

Frequently Asked Questions

Affirm's primary revenue drivers are merchant network revenue and interest income. For the nine months ended March 31, 2025, total revenue increased by 41% year-over-year to $2.35 billion. Merchant network revenue increased by 30% and interest income increased by 37% over the same period, reflecting growth in Gross Merchandise Volume (GMV) and the company's loan portfolio.

Affirm achieved net income of $2.8 million in the three months ended March 31, 2025, a significant turnaround from a net loss of $133.9 million in the prior year period. However, for the nine months ended March 31, 2025, the company reported a net loss of $17.1 million. While profitability is improving on a quarterly basis, the company is not yet consistently profitable over the longer trailing periods presented.

Affirm has a substantial debt load, with total liabilities of $7.56 billion as of March 31, 2025. The company has been actively managing its debt, including repurchasing approximately $1.1 billion of its 2026 convertible senior notes for $1.0 billion during the nine months ended March 31, 2025. Affirm also issued $920 million in aggregate principal amount of 0.75% convertible senior notes due 2029 in December 2024. The company states it was in compliance with all applicable debt covenants as of March 31, 2025.

Affirm manages credit risk through its proprietary underwriting models and by closely monitoring credit quality. The allowance for credit losses increased to $375.0 million as of March 31, 2025, from $309.1 million as of June 30, 2024. The provision for credit losses for the nine months ended March 31, 2025, increased by 34% to $460.1 million, reflecting growth in the loan portfolio, partially offset by adjustments in credit criteria and loan mix. The allowance for credit losses as a percentage of loans held for investment was 5.7% as of March 31, 2025.