Financial Data and Key Metrics Changes - The company reported a strong quarter with significant growth, maintaining a revenue-less transaction cost (RLTC) of 4.2% [22][105] - The updated fiscal year 2026 outlook indicates an increase in operating margins to more than 7.5%, up from the previous guidance of over 6% [73][74] Business Line Data and Key Metrics Changes - The company highlighted that approximately half of the GMV growth came from direct point-of-sale merchant integrations, while one-third came from direct-to-consumer channels [52] - The 0% APR loans are identified as the fastest-growing loan product, with expectations for continued growth in this area [78] Market Data and Key Metrics Changes - The company noted a healthy spending environment for consumers, particularly in sectors like sporting goods and outdoor products [27] - Delinquency trends remain low, indicating strong consumer repayment behavior [29] Company Strategy and Development Direction - The company extended its agreement with Amazon for an additional five years, indicating a commitment to long-term partnerships [4][47] - The strategy includes expanding relationships with payment service providers (PSPs) to enhance integration speed and market reach [15][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute in the ABS market despite broader market challenges, attributing success to strong asset performance and investor relationships [10][112] - The company is focused on maintaining a long-term perspective, with a target RLTC range of 3% to 4% for sustainable growth [23][107] Other Important Information - The company is actively exploring new verticals, including services and automotive repair, with a robust process for adapting underwriting models [96][97] - The recent promotional event, referred to as "Zero Days," was successful in driving consumer engagement and merchant awareness [61][104] Q&A Session Summary Question: Thoughts on funding market execution amidst challenges - Management highlighted their strong execution in the ABS market and the unique value of their products, which are well-received by investors [10] Question: Insights on PSP relationships and strategy - Management emphasized the importance of PSPs for integration speed and expanding market access, noting ongoing efforts to enhance these relationships [15][34] Question: Trends in consumer spending and delinquency rates - Management confirmed that consumer spending remains healthy, with low delinquency rates indicating effective underwriting practices [27][29] Question: Update on operating margins and expense expectations - Management attributed the increase in operating margins to growth rather than cost-cutting, with a focus on revenue growth driving operating leverage [74] Question: Competitive environment and capital market conditions - Management noted a constructive capital market environment for their assets, with a focus on maintaining strong relationships with investors [112]

Core Insights - The payments company reported a profit of $80.7 million, exceeding analysts' expectations [1] - The profit increase is attributed to higher merchant integration and a growing direct-to-consumer business [1] Financial Performance - The reported profit of $80.7 million indicates a strong financial performance for the company [1] - The results reflect a positive trend in the company's operational efficiency and market positioning [1] Business Drivers - Increased merchant integration has played a significant role in driving profitability [1] - The direct-to-consumer business segment has also contributed to the overall growth in profits [1]

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Financial Performance - Total revenue for the three months ended September 30, 2025, was $933,337,000, representing a 34% increase from $698,479,000 in the same period of 2024[218] - Operating income improved to $63,661,000 compared to a loss of $132,623,000 in the prior year, marking a 148% increase[218] - Net income for the quarter was $80,694,000, a significant recovery from a net loss of $100,222,000 in the same quarter of 2024, reflecting an 181% improvement[218] - For the three months ended September 30, 2025, GMV was $10.8 billion, representing a 42% increase compared to $7.6 billion in the same period in 2024[241] - Merchant network revenue increased by $66.8 million, or 36%, for the three months ended September 30, 2025, compared to the same period in 2024[254] - Interest income rose by $77.1 million, or 20%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a 19% increase in the average balance of loans held for investment[258] - Gain on sales of loans increased by $55.4 million, or 87%, for the three months ended September 30, 2025, compared to the same period in 2024, with loan sales volume rising to $4.9 billion[259] - Servicing income increased by $13.7 million, or 53%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to a 57% increase in the average unpaid principal balance of off-balance sheet loans[262] - Loss on loan purchase commitment increased by $17.3 million, or 32%, for the three months ended September 30, 2025, compared to the same period in 2024, due to a 36% increase in total volume of loans purchased[264] Consumer Metrics - Active consumers reached approximately 24.1 million as of September 30, 2025, up 24% from approximately 19.5 million as of September 30, 2024[246] - Transactions per active consumer increased to 6.1 for the three months ended September 30, 2025, up 20% from 5.1 for the same period in 2024[250] Loan and Funding Information - Approximately $1.9 billion in loans were directly originated by the company, representing 18% of total GMV for the quarter[225] - For the three months ended September 30, 2025, Pay-in-X represented 15% of total GMV, while 0% APR installment loans accounted for 13%[220] - GMV from 0% APR monthly installment loans was $1.4 billion, representing a 74% increase from $826 million for the same period in 2024[244] - The company has drawn an aggregate of $1.2 billion on its warehouse credit facilities as of September 30, 2025, with a total borrowing capacity of $5.2 billion[286] - The company intends to add necessary funding capacity to support growth objectives as it expands into new geographies[288] - The company has a revolving credit facility with an aggregate commitment amount of $330.0 million, maturing on June 26, 2027, with no borrowings outstanding as of September 30, 2025[293] - The convertible senior notes have an aggregate principal balance of $1.1 billion, with the 2026 Notes maturing on November 15, 2026, and the 2029 Notes maturing on December 15, 2029[294] Cash Flow and Investments - Net cash provided by operating activities was $374.6 million for the three months ended September 30, 2025, compared to $196.9 million for the same period in 2024, reflecting a significant increase[296][298] - Net cash used in investing activities was $139.6 million for the three months ended September 30, 2025, with cash outflows primarily driven by purchases and origination of loans held for investment totaling $9.8 billion[300] - Net cash provided by financing activities was $110.1 million for the three months ended September 30, 2025, driven by $9.1 billion in proceeds from the issuance of secured debt[302] Risk Management - The company continues to monitor macroeconomic conditions, including elevated interest rates and consumer demand fluctuations, which may impact future performance[233] - The company maintains an interest rate risk management program, estimating that a hypothetical 100 basis point upward shock to interest rates would have a less than $70.0 million adverse impact on cash flows over the next 12 months[319] - The company is exposed to credit risk on $7.2 billion of loans held within its balance sheet as of September 30, 2025, with approximately 11% of loan receivables related to customers in California[322] - The company is exposed to credit risk due to nonperformance by financial institutions holding cash and cash equivalents[324] - The company manages credit risk by diversifying counterparties and adhering to guidelines regarding credit ratings and investment maturities[324] - A failure of multiple financing sources to fulfill funding obligations could materially adversely affect the company's financial condition and cash flows[324] Regulatory and Compliance - Regulatory oversight from the Consumer Financial Protection Bureau (CFPB) remains a factor, with ongoing requests for reports concerning the company's business conduct and activities[237] Expenses - Processing and servicing expenses increased by $38.7 million, or 41%, for the three months ended September 30, 2025, driven by a $2.9 billion, or 41%, increase in payment volume[269][270] - Technology and data analytics expenses increased by $33.8 million, or 25%, for the three months ended September 30, 2025, with a 43% rise in amortization of internally-developed software[273] - Sales and marketing expenses decreased by $66.7 million, or 46%, primarily due to a $66.3 million, or 62%, decrease in Amazon warrant expense[275] - General and administrative expenses increased by $6.5 million, or 5%, due to higher professional services costs, including consulting and legal fees[277] - Other income, net, decreased by $14.9 million, or 44%, primarily due to an $18.1 million, or 92%, reduction in gains from early extinguishment of convertible debt[280]

FY Q1 2026 Earnings Supplement November 6, 2025 Safe Harbor Statement/Use of Non-GAAP Financial Measures Cautionary Note About Forward-Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including stat ...

Okay, turning now to a firm. Those shares about four and a half% higher now. It is a beat on the top and bottom line.EPS coming in at 23 cents, which is ahead of the street estimate of 11 cents. Revenue is 933 million for the quarter versus 883 million expected. Gross merchandise volume, a key metric looking at the total value of transactions that hit 10.8% billion topping forecasts.And guidance for next quarter that actually came in a touch light at 1.03% 03 billion to 1.06% billion. But for the full year, ...

Core Insights - The Buy Now, Pay Later (BNPL) industry is experiencing a pivotal moment, particularly for Affirm, as it prepares to report its fiscal Q1 2026 earnings, raising investor questions about the timing for buying or selling [2][3] Financial Performance - Affirm is set to report fiscal Q1 2026 results, covering the period from July to September 2025, with key metrics including revenue growth, earnings per share, gross merchandise volume (GMV), credit quality, and the performance of the Affirm Card, which saw a 97% increase in active users to 2.3 million in Q4 [3] - For the fiscal year ending June 30, 2025, Affirm achieved its first-ever full-year GAAP net income of $52.19 million, a significant turnaround from the previous year's net loss [8] - The company reported a 43% year-over-year increase in GMV during its strong fiscal fourth quarter, marking its first quarterly operating profit [9] Market Conditions - Recent Federal Reserve rate cuts have eased funding pressures for BNPL players, improving margins and funding flexibility for Affirm [4] - Regulatory risks have diminished, as the CFPB reversed its earlier decision to classify BNPL lenders as "credit card providers," leading to a more favorable operating environment for Affirm and its peers [5] Stock Performance - Affirm shares have increased by 67.1% year-to-date in 2025, with a 52-week trading range between a low of $30.90 and a high of $100.00 [8] - The stock opened at $71.14 but declined to a low of $66.24 during the session at the time of writing [9] Industry Comparables - Klarna (KLAR), a relevant comparable in the BNPL space, has seen its stock price decline to around $35.66, more than 10% below its $40 IPO price, despite analysts maintaining a "Buy" consensus [10][12] Future Outlook - With high interest rates and regulatory uncertainties largely resolved, the BNPL industry is shifting focus towards diversification, with major players exploring traditional banking services [13]

Core Insights - Affirm Holdings, Inc. reported first-quarter earnings that exceeded analyst expectations, with a notable increase in both earnings per share and revenue [1][2]. Financial Performance - Quarterly earnings were reported at 23 cents per share, surpassing the consensus estimate of 11 cents [2]. - Revenue for the quarter reached $933.33 million, exceeding the Street estimate of $883.14 million and showing a significant increase from $698.47 million in the same period last year [2]. Management Commentary - CEO Max Levchin highlighted the achievement of setting a record for Gross Merchandise Volume (GMV) in a quarter with few shopping holidays, emphasizing the team's consistent performance and growth [3]. Future Outlook - The company anticipates second-quarter revenue to be between $1.03 billion and $1.06 billion, slightly below the analyst estimate of $1.05 billion [4]. - Following the earnings report, Affirm's stock price increased by 10.10%, reaching $72.62 in extended trading [4].

affirm) First Fiscal Quarter 2026 Shareholder Letter a) ·1234 (0) Pay over time Pay in full <> Purchasing power > Plan a purchase Get your vintage deep cuts for as a low as 0% APR. Shop now → Fellow Affirm Shareholders, We delivered another set of stellar results to get fiscal 2026 started, in both growth and profitability rubrics. Gross Merchandise Volume Revenue Less Transaction ("GMV") Revenue Costs ("RLTC")1 +42% +34% +60% Operating Income Adjusted Operating Income1 Net Income As a percent of Revenue As ...

Core Insights - Financial giants are showing a bearish sentiment towards Affirm Holdings, with 40% of traders indicating bearish tendencies compared to 32% bullish [1] - The unusual options activity includes 36 puts valued at $2,964,102 and 19 calls valued at $1,047,736, indicating a significant focus on downside protection [1] - Analysts have set an average price target of $93.25 for Affirm Holdings, with varying ratings from different firms [11][12] Options Activity - Over the last 3 months, whales have targeted a price range for Affirm Holdings between $40.0 and $150.0 [2] - The analysis of volume and open interest reveals key insights into liquidity and interest levels for Affirm Holdings' options [3] - The largest options trades include multiple puts with varying sentiments, indicating mixed expectations among traders [9] Company Overview - Affirm Holdings Inc provides a digital and mobile-first commerce platform, generating revenue primarily from merchant networks and virtual card networks [10] - The company derives most of its revenue from the United States, followed by Canada and other regions [10] Current Market Position - As of the latest data, Affirm Holdings' stock price is down 6.2% at $67.08, with a trading volume of 4,357,210 [14] - RSI indicators suggest that the stock may be approaching an oversold condition [14]