Buy now, pay later provider Affirm has expanded its partnership with online travel firm Priceline.The new collaboration makes Affirm the buy now, pay later (BNPL) provider for Priceline Partner Solutions, the company’s B2B business, Affirm said in a Monday (Nov. 18) news release.This means that Priceline partner brands — spanning industries including hotels, airlines and car rental services — can begin offering travelers the ability to schedule trips and pay over time via their own websites, Affirm said in ...

This buy now, pay later company is growing nicely and could benefit from tailwinds that could make it profitable in the near future.As consumers grapple with rising credit card debt balances and elevated interest rates, recent interest rate cuts from the Federal Reserve offer hope for more affordable borrowing costs.Leading the charge in this space is Affirm (AFRM -4.81%), a standout in the buy now, pay later (BNPL) industry. With its expansion of partnerships and growing market presence, Affirm has grown n ...

Affirm Holdings, Inc. (AFRM) reported first-quarter fiscal 2025 results last week, wherein its earnings beat estimates. Results were aided by improved card network revenues and servicing income, along with growing repeat customers. However, the upside was partly offset by an escalating expense level from a significant increase in provision for credit losses.Now the question arises whether investors should consider buying the stake or hold tight to their current investments. Let us answer that question by as ...

Affirm Holdings (AFRM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this operator of digital commerce platform have returned -1.3%, compared to the Zacks S&P 500 composite's +4.4% change. During this period, the Zacks Financial Transaction Services industry, which Affirm Holdings falls in, has gained 10.6%. The key question now is: What could be the st ...

Robinhood, Upstart, and Affirm are positioned to head higher.Many fintech stocks stumbled in 2022 and 2023 as inflation and rising interest rates curbed consumer spending, cooled the stock and crypto markets, and drove investors toward more conservative investments. But the Federal Reserve finally cut its benchmark rates in September as inflation cooled off.As interest rates decline, it might be smart to buy a few out-of-favor fintech stocks that have resilient business models but are still trading far belo ...

Core Viewpoint - Affirm Holdings, Inc. (AFRM) reported better-than-expected first-quarter fiscal 2024 results, driven by increased card network revenues and servicing income, although rising expenses, particularly in credit loss provisions, partially offset these gains [1][6]. Financial Performance - The company incurred a fiscal first-quarter loss of 31 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 36 cents per share, remaining flat year over year [2]. - Total net revenues reached $698.5 million, exceeding management's expectations of $640-$670 million, and surged 40.7% year over year, surpassing the consensus mark by 5.6% [2]. - Active merchants increased by 21.4% year over year to 323,000, with GMV of $7.6 billion, a 35.7% increase year over year, exceeding management's expected range [3]. - Total transactions rose to 27.2 million, a 45% increase year over year, driven by a significant rise in repeat customer transactions [4]. Revenue Breakdown - Servicing income improved by 28.9% year over year to $26 million, although it missed the consensus mark of $29.3 million [4]. - Interest income surged 44% year over year to $377.1 million, exceeding the consensus estimate of $348 million [4]. - Merchant network revenues totaled $184.3 million, growing 26.3% year over year but missing the Zacks Consensus Estimate of $194 million [5]. - Card network revenues rose 41.8% year over year to $47.5 million, attributed to higher usage of Affirm and single-use virtual debit cards, beating the consensus mark of $42.9 million [5]. Expense Analysis - Total operating expenses increased by 17.7% year over year to $831.1 million, primarily due to higher losses on loan purchase commitments and processing expenses [6]. - Provision for credit losses escalated by 60.3% to $159.8 million [6]. - Sales and marketing expenses decreased by 1.1%, while general and administrative expenses fell by 1.3% year over year [6]. Adjusted Metrics - Affirm generated an adjusted operating income of $130 million, up from $60 million in the prior-year quarter, with an adjusted operating margin of 19%, exceeding management's estimated range of 14-16% [7]. - The net loss of $100.2 million was narrower than the prior-year quarter's loss of $171.8 million [7]. Financial Position - As of September 30, 2024, Affirm had cash and cash equivalents of $1 billion, a 3.3% increase from the fiscal 2023-end figure [8]. - Total assets rose to $10.1 billion, a 6.5% increase from the fiscal 2023-end [8]. - Funding debt amounted to $1.74 billion, up 5.1% from the previous year [8]. - Total stockholders' equity grew by 3.8% to $2.8 billion [8]. Cash Flow - Affirm generated $196.9 million of net cash from operations during the September quarter, compared to $98.9 million in the prior-year quarter [9]. Future Guidance - For the second quarter of fiscal 2025, Affirm forecasts GMV in the range of $9.35-$9.75 billion and revenues between $770-$810 million [10]. - Management anticipates a GMV of over $34 billion for fiscal 2025, with revenues projected to expand at least 20 basis points from fiscal 2024 [11]. - The adjusted operating margin is estimated to be at least 20% for fiscal 2025 [11].

On Wall Street, what goes up must go down, and vice versa.A momentous week with a seesaw of volatility in the markets could be rightly chalked up to the seismic shifts from elections Tuesday (Nov. 5). So-called “Trump trades,” assets tied to President-elect Donald Trump and those likely to benefit from his administration, surged after his win.Headed into November, the FinTech IPO Index was up nearly 15% year to date. That overall return was outpaced by individual names that were up by high-double-digit and ...

Affirm Holdings (AFRM) reported $698.48 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 40.7%. EPS of -$0.31 for the same period compares to $0.00 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $661.39 million, representing a surprise of +5.61%. The company delivered an EPS surprise of +13.89%, with the consensus EPS estimate being -$0.36.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Affirm Holdings (AFRM) came out with a quarterly loss of $0.31 per share versus the Zacks Consensus Estimate of a loss of $0.36. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.89%. A quarter ago, it was expected that this operator of digital commerce platform would post a loss of $0.45 per share when it actually produced a loss of $0.14, delivering a surprise of 68.89%.Over the last fou ...

Financial Data and Key Metrics Changes - The company reported strong unit economics with improvements in revenue as a percentage of GMV and RLTC margins increasing from 10 to 20 basis points, driven by interest income and capital market benefits [8][15][39] - Adjusted operating income margin guidance is now above 20%, with expectations for the fiscal second quarter to be between 21% to 23% [22][23] Business Line Data and Key Metrics Changes - The company is experiencing healthy consumer growth, with active consumer growth accelerating due to deeper approvals and more compelling new consumer deals [25] - The company is focused on increasing transaction frequency among existing users, achieving a new record of five transactions per user [25] Market Data and Key Metrics Changes - The company is entering the UK market, where there is strong demand for longer-term payment products, which are currently underserved [28] - The competitive landscape in the UK is noted to be challenging, but the company believes its unique business model and underwriting capabilities will provide a competitive advantage [30] Company Strategy and Development Direction - The company is preparing for a strong holiday season, leveraging 0% promotions to attract new consumers and drive sales [20] - The company aims to harmonize its financial programs across multiple channels, enhancing consistency and consumer engagement [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the margin performance in the second half of the year, with expectations for continued growth in margins and operating leverage [15][23] - The company is confident in its ability to navigate regulatory scrutiny and maintain growth, particularly with the Affirm card rollout [34] Other Important Information - The company is focused on maintaining a stable funding base while benefiting from favorable capital market conditions [17] - Management emphasized the importance of underwriting expertise and data utilization in sustaining competitive advantages [31][35] Q&A Session Summary Question: Can you unpack the uplift to revenue as a percentage of GMV for the full year? - The company highlighted strong unit economics and benefits from interest income and capital markets [8] Question: What is the current underwriting posture and expected RLTC margin trend? - Management indicated a stable underwriting posture with expectations for healthy margins in the upcoming quarters [12][15] Question: How does secondary market activity impact balance sheet management? - The company noted strong demand for whole loan purchasers and emphasized careful management of funding channels [17] Question: What is the outlook for 0% promotions during the holiday season? - Management expressed confidence in leveraging 0% promotions to drive consumer engagement and sales [20] Question: What are the expectations for long-term operating income margins? - The company reiterated its long-term margin framework while acknowledging current performance above expectations [22][23] Question: What are the early thoughts on the UK launch and competitive landscape? - Management reported strong initial reception in the UK and emphasized the unique value proposition of their offerings [28][30] Question: Will increased regulatory scrutiny impact the growth of the Affirm card? - Management assured that regulatory scrutiny would not hinder growth and emphasized their strong compliance framework [34] Question: Are there nuances in underwriting consumers in the UK versus the US? - Management indicated readiness to apply their underwriting expertise in the UK while monitoring early performance metrics [35][36]