Affirm Holdings Inc

11. Investments

Marketable Securities

Marketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands):

(1)As of June 30, 2023, these securities had been pledged as collateral in connection with sale and repurchase agreements. As of March 31, 2024, the obligation under the sales and repurchase agreements was fully paid down. As such, no securities were pledged as collateral as discussed within Note 9. Debt.

Securities Available for Sale, at Fair Value

The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2024 and June 30, 2023 were as follows (in thousands):

(1)Commercial paper and agency bonds include $38.6 million and $115.3 million as of March 31, 2024 and June 30, 2023, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets.

(2)As of June 30, 2023, these securities had been pledged as collateral in connection with sale and repurchase agreements. As of March 31, 2024, the obligation under the sales and repurchase agreements was fully paid down. As such, no securities were pledged as collateral as discussed within Note 9. Debt.

As of March 31, 2024 and June 30, 2023, there were no material reversals of prior period allowance for credit losses recognized for available for sale securities.

A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of March 31, 2024 and June 30, 2023, are as follows (in thousands):

(1)The number of positions with unrealized losses for which an allowance for credit losses has not been recorded totaled 102 and 142 as of March 31, 2024 and June 30, 2023, respectively.

The length of time to contractual maturities of securities available for sale as of March 31, 2024 and June 30, 2023 were as follows (in thousands):

(1)Commercial paper and agency bonds include $38.6 million and $115.3 million as of March 31, 2024 and June 30, 2023, respectively, classified as cash and cash equivalents within the interim condensed consolidated balance sheets.

(2)Based on weighted average life of expected cash flows as of March 31, 2024 and June 30, 2023.

Gross proceeds from matured or redeemed securities were $0.5 billion and $1.2 billion for the three and nine months ended March 31, 2024, respectively, and $0.7 billion and $2.9 billion for the three and nine months ended March 31, 2023, respectively.

For available for sale securities realized gains and losses from portfolio sales were not material for the three and nine months ended March 31, 2024 and 2023, respectively.

Non-marketable Equity Securities

Equity investments without a readily determinable fair value held at cost less impairment and observable price changes were $37.8 million and $43.2 million as of March 31, 2024 and June 30, 2023, respectively, and are included in other assets within the interim condensed consolidated balance sheets.

We didnot record any impairment during the three months ended March 31, 2024 and recognized an impairment of $14.1 million for the nine months ended March 31, 2024 within other income, net in the interim consolidated statements of operations in connection with one of our non-marketable equity security investments. We determined an impairment indicator existed upon receiving a tender offer to repurchase all outstanding equity securities at a substantial discount relative to the cost basis of our investment. We determined the tender offer price was a reasonable estimate of fair value and therefore we recognized an impairment equal to the difference between our costs basis and the implied fair value based on the tender offer price. We didnot record any impairment for the three and nine months ended March 31, 2023.

There have been no upward or downward adjustments due to observable changes in orderly transactions for the three and nine months ended March 31, 2024 and 2023.

Fixed Term Deposits

Fixed term deposits were $35.3 million as of March 31, 2024 and consist of interest bearing deposits held at financial institutions with an original maturities greater than three months but no more than twelve months. These deposits are carried at cost, which approximates fair value, and are included in other assets within the interim condensed consolidated balance sheets. We didnot have any fixed term deposits as of June 30, 2023.