A growing player in the buy now pay later (BNPL) space, Affirm Holdings, Inc. (AFRM) , recently teamed up with Cali Pass. This partnership aims to introduce flexible and customer-friendly payment options to the winter sports market, a high-spending, experience-driven consumer segment. Starting with the 2025-2026 ski season, Cali Pass customers can choose between interest-free biweekly payments or extended monthly terms while purchasing their passes or lift tickets.Cali Pass clients can avail this plan onlin ...

A leading player in the buy now, pay later (BNPL) space, Affirm Holdings, Inc. (AFRM) recently expanded its footprint through two major partnerships with Costco Wholesale Corporation and Mattress Firm. These strategic partnerships are designed to help consumers finance big purchases with confidence, especially during summer and Memorial Day sales.Costco.com customers can use Affirm to fund online transactions for $500 or more. They need to go through a real-time eligibility check, and approved customers can ...

Core Viewpoint - Affirm Holdings, Inc. has experienced significant stock volatility following its fiscal Q3 2025 earnings report, with a sharp decline in stock price due to disappointing fourth-quarter guidance, followed by a rebound after announcing a new partnership with World Market [1][2]. Financial Performance - Affirm reported fiscal Q3 2025 earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.09 and improving from a loss of $0.43 in the prior year [3]. - Revenue increased by 36% year-over-year to $783.1 million, aligning with the company's guidance range of $755–$785 million [3]. - Gross Merchandise Value (GMV) reached $8.6 billion, up 36% from the previous year, exceeding the Zacks Consensus Estimate of $8.1 billion [4]. - Transactions totaled 31.3 million, reflecting a 45.6% year-over-year increase, primarily driven by repeat customers [4]. Growth Prospects - The company anticipates Q4 revenue between $815-$845 million and GMV between $9.4-$9.7 billion, although this guidance fell short of Wall Street expectations [5]. - Repeat customer transactions accounted for 94% of total transactions in Q3, indicating strong brand loyalty and potential for more predictable revenue [6]. - Affirm is expanding internationally, with plans to enter Western Europe, starting with France, Germany, and the Netherlands, in partnership with Shopify [7]. Business Model and Innovations - Affirm's model benefits both merchants and consumers by reducing cart abandonment and offering flexible payment options, including 0% APR monthly installments, which rose 44% year-over-year and accounted for 13% of GMV [8]. - The company is investing in complementary financial products, such as debit solutions and business-to-business tools, to enhance customer relationships and usage frequency [9]. Earnings Estimates and Valuation - The Zacks Consensus Estimate suggests a 95.8% year-over-year improvement in fiscal 2025 earnings, with fiscal 2026 earnings expected to surge nearly 960% [10]. - Revenue projections for fiscal 2025 and 2026 are expected to grow by 36.9% and 23.3%, respectively [10]. - Affirm's stock has increased by 67% over the past year, outperforming the broader industry and the S&P 500 Index [11]. Competitive Landscape - Affirm is trading at a premium valuation of 4.47X forward 12-month sales, higher than its three-year median of 3.49X, while competitors PayPal and Block are trading at 2.09X and 1.39X, respectively [14]. - The BNPL market remains competitive, with traditional financial institutions and credit card companies entering the space, exemplified by Walmart's switch from Affirm to Klarna [18]. Conclusion - Affirm's fiscal Q3 performance showcased strong revenue growth and rising transaction volumes, particularly from loyal customers, alongside an expanding merchant network and international market push [19]. - However, challenges such as elevated debt levels, rising expenses, and intense competition may impact margin stability and market share expansion [19].

Group 1 - The article discusses the uncertainty surrounding the current bull market and its implications for Affirm (NASDAQ: AFRM), which has been a significant performer recently [1] - Affirm is highlighted as a company that may benefit from a continuation of the bull market, suggesting potential for further growth [1] - The analysis emphasizes the importance of identifying undervalued companies with strong growth potential, which is a key focus for the financial analyst mentioned [1] Group 2 - The financial analyst, Julian Lin, is noted for his strategy of combining growth-oriented principles with strict valuation criteria to enhance investment safety [1] - The analyst's approach includes looking for companies with robust balance sheets and effective management teams in sectors with long-term growth prospects [1]

Core Insights - Affirm Holdings reported strong growth in Gross Merchandise Volume (GMV) and revenue, marking the third consecutive quarter of acceleration in GMV growth [4] - The company achieved a GMV growth rate of 36% year-on-year, with revenue growth aligning with this performance [4] - Unit economics improved significantly, with a year-on-year growth of 53%, surpassing the previously discussed range of 3% to 4% [4] Financial Performance - The operating margin was consistent with the company's expectations, indicating effective cost management and operational efficiency [5] - Affirm reiterated its commitment to achieving profitability on a GAAP operating basis, signaling a focus on long-term financial health [5]

Affirm (AFRM) FY Conference Summary Company Overview - **Company**: Affirm (AFRM) - **Industry**: Fintech, specifically focused on Buy Now Pay Later (BNPL) services Key Highlights - **Strong GMV Growth**: Affirm reported a 36% year-on-year growth in Gross Merchandise Volume (GMV) for the quarter, marking the third consecutive quarter of acceleration in GMV growth [2][3] - **Revenue Growth**: Revenue growth was in line with GMV growth, indicating a healthy business model [2] - **Unit Economics**: Affirm's unit economics showed a 53% year-on-year growth, significantly above the expected range of 3% to 4% [3] - **Operating Margin**: The adjusted operating margin was consistent with expectations, with a commitment to achieving GAAP profitability by Q4 [3] User Engagement and Market Dynamics - **User Growth**: There was a 20% increase in users and transaction frequency, indicating robust network dynamics [4] - **Consumer Sentiment**: Despite low consumer sentiment reported in the market, Affirm observed strong demand and credit quality, suggesting a disconnect between sentiment and actual spending behavior [9][10] - **Monitoring Consumer Behavior**: Affirm actively monitors credit and volume data to assess consumer stress, ensuring readiness to react to market changes [10][11] Product Engagement - **User Journey**: The typical user journey begins at the point of sale, with a seamless application process leading to loan approval and servicing primarily through the Affirm app [15][16] - **Affirm Card Usage**: The Affirm card has become a significant part of the business, with most transactions being repeat users, leading to profitable outcomes [20][21] Competitive Landscape - **Market Position**: Affirm views the competitive landscape as consistently challenging but not uniquely heightened at this time. The company emphasizes its leadership in profitability and sustainable growth [52][56] - **Partnerships**: Affirm has secured partnerships with major retailers like Costco, enhancing brand visibility and consumer trust [40][42] Financial Strategy - **0% Financing Offers**: Affirm is successfully offering 0% financing options, which have proven to be effective in driving consumer engagement and conversion rates [23][24] - **Capital Market Conditions**: The company has maintained strong relationships with capital partners, resulting in oversubscribed ABS deals and favorable financing conditions [62][66] Future Opportunities - **Expansion Potential**: Affirm is exploring opportunities in new markets, including partnerships with airlines, indicating a strategy for diversification and growth [70] Conclusion - Affirm's recent performance reflects strong growth in GMV and user engagement, supported by effective product offerings and strategic partnerships. The company remains vigilant in monitoring market conditions and consumer behavior, positioning itself for continued success in the competitive fintech landscape.

Core Viewpoint - Affirm Holdings, Inc. has formed a new partnership with World Market, leading to a significant increase in its stock price by 15.8% following the announcement, reflecting positive market sentiment towards the company's growth prospects in the flexible payment solutions sector [1][3]. Group 1: Partnership Impact - The partnership allows customers to use Affirm's buy now, pay later (BNPL) options for purchases at 246 U.S. locations and online, enabling payment splits into biweekly or monthly installments with terms up to 36 months and no hidden fees [2]. - This collaboration expands Affirm's merchant network, which already includes over 358,000 merchants, and enhances its presence in the home goods and specialty retail sectors [2][5]. - The deal is expected to support Affirm's revenue growth by increasing transaction volume and merchant fees collected through World Market sales, with total transactions rising 45.6% year over year to 31.3 million in the fiscal third quarter [4]. Group 2: Financial Performance - Affirm reported a 36% year-over-year revenue growth in the third quarter of fiscal 2025, indicating strong performance and alignment with its strategy for sustainable long-term expansion [5]. - Despite a year-to-date decline of 11.8% in share price, the recent partnership announcement has helped the company recover some losses incurred after a less-than-expected fourth-quarter revenue guidance [6]. Group 3: Market Positioning - The partnership reflects a growing retailer demand for transparent and flexible financing options, reinforcing Affirm's brand and competitive edge in the market [3]. - Zacks has set a price target of $55 for Affirm's stock following the partnership announcement, indicating positive expectations for the company's future performance [3].

Core Viewpoint - Affirm's shares declined following a weak revenue forecast, raising concerns about CEO Max Levchin's strategy to expand through 0% loans [1][2]. Revenue Forecast - Affirm projected revenue for the current quarter to be between $815 million and $845 million, with the midpoint falling short of the $841 million average analyst estimate [2]. Business Strategy - CEO Max Levchin is focusing on 0% loans to attract consumers and foster long-term customer loyalty, even at the cost of current profit margins [2]. - The strategy aims to educate consumers on the benefits of avoiding excessive revolving interest, positioning Affirm as a competitor to credit cards [3]. Market Position - Currently, 0% loans account for 13% of Affirm's total Gross Merchandise Volume (GMV), with 80% of these loans being issued to prime and super-prime customers [3]. - Affirm's primary business involves providing point-of-sale installment loans for consumer purchases in categories such as apparel, electronics, and sporting goods [3].

Core Viewpoint - Affirm Holdings, Inc. reported a fiscal third-quarter 2025 earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.09 per share and significantly improving from a loss of $0.43 per share in the prior-year quarter [1] Financial Performance - Total revenues increased by 36% year over year to $783.1 million, slightly missing the consensus mark by 0.1% but within management's expectations of $755-$785 million [1] - Gross Merchandise Value (GMV) reached $8.6 billion, climbing 36% year over year, exceeding both management's expectations of $8-$8.3 billion and the Zacks Consensus Estimate of $8.1 billion [3] - Total transactions surged by 45.6% year over year to 31.3 million, driven by a significant increase in repeat customer transactions [4] - Servicing income rose by 27% year over year to $32.1 million, beating the consensus mark of $31.3 million [4] - Interest income increased by 28% year over year to $402.7 million, although it fell short of the Zacks Consensus Estimate of $414.4 million [4] Revenue Breakdown - Merchant network revenues improved by 34.3% year over year to $214 million, surpassing the consensus mark of $199.5 million [5] - Card network revenues surged by 64.2% year over year to $58.6 million, attributed to higher usage of Affirm Card and virtual cards, exceeding the consensus estimate of $46.4 million [5] Expense and Losses - Total operating expenses rose by 7.4% year over year to $791.5 million, driven by increased costs in various areas including loan purchase commitments and technology expenses [6] - Provision for credit losses escalated by 20.3% year over year to $147.3 million [6] - Sales and marketing expenses decreased by 44.3% year over year [6] Profitability Metrics - Adjusted operating income totaled $173.7 million, more than doubling year over year, with an adjusted operating margin improving by 860 basis points to 22.2%, surpassing management's estimated range of 20-22% [7] - Affirm's net income was $2.8 million, a significant recovery from a net loss of $133.9 million in the prior-year quarter [7] Financial Position - As of March 31, 2025, Affirm had cash and cash equivalents of $1.4 billion, a 33.4% increase from the fiscal 2024-end figure [8] - Total assets rose by 9.6% year over year to $10.4 billion [8] - Funding debt amounted to $1.9 billion, up 3.9% from June 30, 2024 [8] - Total stockholders' equity increased by 5.2% to $2.9 billion [8] Cash Flow - Affirm generated $210.4 million of net cash from operations during the March quarter, reflecting a 1.1% year-over-year increase [9] Future Guidance - For the fourth quarter of fiscal 2025, Affirm forecasts GMV in the range of $9.4-$9.7 billion, up from the previous estimate of $9-$9.3 billion [10] - Revenues are anticipated to be between $815-$845 million, higher than the earlier guidance of $810-$840 million [10] - For fiscal 2025, management anticipates GMV to be in the range of $35.7-$36 billion, an increase from the earlier guidance of $34.74-$35.34 billion [12] - Revenues for fiscal 2025 are expected to be in the range of $3.163-$3.193 billion, up from the prior outlook of $3.13-$3.19 billion [12]

Core Insights - Affirm Holdings Inc experienced a significant decline in share price despite reporting fiscal third-quarter results that were broadly in line with expectations [1] - The company's gross merchandise value (GMV) reached $8.6 billion, representing a 36.5% increase, surpassing the consensus estimate of $8.2 billion [2] - Revenue for the quarter was reported at $783.1 million, up 35.9%, aligning with consensus expectations [3] Financial Performance - Affirm raised its fiscal fourth-quarter GMV outlook from a range of $9 billion to $9.3 billion to a new range of $9.4 billion to $9.7 billion, indicating strong execution and growth [4] - The revenue outlook for the fourth quarter was also increased from $810 million to $840 million to a new range of $815 million to $845 million [4] - Despite positive revenue and GMV growth, there were weaker-than-expected results in interest income and gain on sale revenue [3] Market Reaction - Following the earnings report, Affirm's shares fell by 13.71%, trading at $46.82 [4] - Analyst Kyle Peterson maintained a Hold rating on the stock, citing a lack of positive catalysts in the near term due to rising recessionary fears [4]