01—Abstract
Summary
Summary of the 8-K filed September 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Affirm Holdings, Inc. (AFRM) announced on September 22, 2025, through an 8-K filing, the Compensation Committee's approval of annual equity awards for its executive officers.
These awards, granted on September 18, 2025, under the company's 2012 Stock Plan, consist of both Restricted Stock Units (RSUs) and Performance Stock Units (PSUs). The total number of RSUs and PSUs granted varies among key executives, including the CFO, Chief Legal Officer, Chief Operating Officer, and President. The PSUs are contingent upon achieving specific financial performance metrics over a three-year period starting July 1, 2025, with revenue less transaction costs and adjusted operating income each weighted at 50%a.
The vesting of PSUs is tied to performance targets set for each of the three fiscal years within this period, with payout ranging from 50%b to 200% of the granted amount based on average performance. RSUs, on the other hand, vest quarterly over three years, commencing December 1, 2025, subject to continued service.
02—Key points
Key Highlights
- Affirm Holdings approved annual equity awards (RSUs and PSUs) for key executives on September 18, 2025.
- PSUs are tied to a three-year performance period (July 1, 2025 - June 30, 2028) based on company financial performance.
- Performance metrics for PSUs are 50% weighted revenue less transaction costs and 50% weighted adjusted operating income.
- PSU vesting ranges from 50% to 200% of the grant based on achieving average performance targets over the three-year period.
- RSUs vest quarterly over a three-year period, with the first vest scheduled for December 1, 2025.
- Equity awards are subject to continued service of the executive officers.
- Detailed PSU and RSU grant agreements will be filed in the upcoming Form 10-Q.
03—Questions
Frequently Asked Questions
What is the purpose of these equity awards?
The equity awards, consisting of RSUs and PSUs, are intended as annual compensation for Affirm's executive officers. They aim to incentivize and reward executives based on both continued service and the company's financial performance over a multi-year period.
How will the Performance Stock Units (PSUs) be earned?
PSUs are earned based on Affirm's financial performance over a three-year period, measured by the annual growth rate of revenue less transaction costs (50% weighting) and adjusted operating income (50% weighting). The final payout depends on the average performance against targets over these three years, with potential to earn between 50% and 200% of the granted PSUs.
When will the Restricted Stock Units (RSUs) vest?
The RSUs will vest quarterly over a three-year period, beginning on December 1, 2025. Vesting is contingent upon the executive officer remaining employed by Affirm through each respective vesting date.
Are there any specific performance targets disclosed for the PSUs?
The filing states that performance targets for each of the three fiscal years during the Performance Period were approved by the Compensation Committee. However, the specific numerical targets are not disclosed in this 8-K filing. They will be detailed in the PSU grant agreement to be filed with the Form 10-Q.
04—Continue