8-KMaterial AgreementsRegulation FDExhibits & Filings

Affirm Holdings, Inc. 8-K Report, Material Agreement (Feb 20, 2025)

Filed February 20, 2025For Securities:AFRM

Summary

Affirm Holdings, Inc. (AFRM) announced a significant development in its partnership with Shopify Inc. (Shopify) through a new Global Customer Installment Program Agreement, effective February 14, 2025. This agreement replaces and supersedes previous arrangements, solidifying Affirm's role as Shopify's exclusive provider of substantially similar financial installment products in specified territories, initially including the United States and Canada. The new agreement has an initial term of three years, extending to June 8, 2028, with automatic one-year renewals thereafter, unless terminated with substantial prior notice. This strategic renewal provides Affirm with a predictable revenue stream and a strengthened relationship with a key e-commerce platform, which is crucial for its growth strategy. Investors should note that the specific financial terms involve fees paid by merchants to Affirm and a fee paid by Affirm to Shopify for each sale processed through the Shop Pay Installments feature.

Key Highlights

  • 1Affirm entered into a new Global Customer Installment Program Agreement with Shopify, effective February 14, 2025.
  • 2This agreement supersedes and replaces all prior installment program agreements between Affirm and Shopify.
  • 3Affirm will be Shopify's exclusive provider of substantially similar financial installment products in designated territories (initially US and Canada) for the duration of the agreement.
  • 4The agreement has an initial term of three years, expiring June 8, 2028, with automatic one-year renewals.
  • 5Affirm services will be available to eligible Shopify merchants via the Shop Pay Installments (SPI) feature.
  • 6Merchant fees to Affirm are generally a percentage of sales plus a fixed amount per sale, with Affirm also paying a fee to Shopify per SPI transaction.

Frequently Asked Questions

The new agreement solidifies Affirm's position as Shopify's exclusive provider for installment products similar to those Affirm offers. This provides long-term visibility and stability for Affirm's revenue through a key e-commerce partner, reinforcing its market presence.

The agreement has an initial term of three years, ending on June 8, 2028. It will automatically renew for successive one-year terms unless either party provides at least 180 days' written notice of their intent not to renew.

Affirm generates revenue from eligible Shopify merchants through fees that are typically a percentage of the sale amount processed via Shop Pay Installments, plus a fixed fee per transaction. Affirm also pays a fee to Shopify for each sale processed through this feature.

The agreement is effective immediately and replaces previous agreements. While the core functionality of Shop Pay Installments is expected to continue, the specific terms and conditions have been updated under this new global agreement. The filing indicates territory program agreements for the US and Canada were entered into concurrently.