Question-and-Answer SessionSo just to start out, maybe for those less familiar with you, do you want to just provide a brief introduction on yourselves and your responsibilities at Affirm?Brooke Major-ReidChief Capital Officer Sure. Good morning, everyone. It's great to be here. Thanks for hosting us, Allison. My name is Brooke Major-Reid. As Allison said, I'm Chief Capital Officer. I've been at Affirm just over 4 years. Capital at Affirm covers capital markets execution, all the things we do to fund the bu ...

Question-and-Answer SessionSo just to start out, maybe for those less familiar with you, do you want to just provide a brief introduction on yourselves and your responsibilities at Affirm?Brooke Major-ReidChief Capital Officer Sure. Good morning, everyone. It's great to be here. Thanks for hosting us, Allison. My name is Brooke Major-Reid. As Allison said, I'm Chief Capital Officer. I've been at Affirm just over 4 years. Capital at Affirm covers capital markets execution, all the things we do to fund the bu ...

Affirm (NasdaqGS:AFRM) FY Conference September 10, 2025 08:15 AM ET Company ParticipantsBrooke Major-Reid - CCOZane Keller - Head of Investor RelationsConference Call ParticipantsAllison Gelman - Research AnalystAllison GelmanAre we good to start? Great. Good morning, everyone. Thank you for joining us for our next Fireside Chat with Affirm here at the Barclays Global Financial Services Conference. My name is Allison Gelman, and I am a Research Analyst here at Barclays. Today, we have Brooke Major-Reid, Chi ...

BREAKING: Futures Mixed But Oracle Skyrockets On Blowout OutlookKlarna Group (KLAR), a rival of Affirm Holdings (AFRM) in the "buy now, pay later" market, priced its initial public offering above the expected range.The Klarna IPO sold 34.3 million shares at $40 a share vs. the targeted range of $35-$37. The Swedish payments company raised $1.37 billion, giving Klarna an initial valuation of $15.1 billion.KLAR stock will begin trading on the NYSE on Wednesday.Klarna argues that it's more of a digital bank th ...

Core Insights - Affirm has successfully scaled into a profitable U.S. consumer platform, achieving over 30% growth [1] - There is an increasing engagement rate from both merchants and consumers, indicated by higher transaction frequency and more merchant-sponsored offers [1] - The company has reached GAAP profitability, marking a significant milestone in its financial performance [1] Company Outlook - The future trajectory of Affirm is a key point of interest, with questions surrounding its end state and potential growth opportunities [1]

Core Insights - Affirm has successfully scaled into a profitable U.S. consumer platform, achieving over 30% growth [1] - There is increasing engagement from both merchants and consumers, indicated by higher transaction frequency and more merchant-sponsored offers [1] - The company has reached GAAP profitability, marking a significant milestone in its financial performance [1] Company Outlook - The future trajectory of Affirm is a key point of discussion, with questions surrounding its long-term vision and potential end state [1]

Summary of Affirm Conference Call Company Overview - **Company**: Affirm (NasdaqGS:AFRM) - **Industry**: Fintech, specifically focusing on Buy Now, Pay Later (BNPL) services Key Points and Arguments Growth and Market Position - Affirm has achieved over 30% growth and is now GAAP-profitable, indicating strong engagement from both merchants and consumers [4][6] - The company currently captures mid-single digits of the U.S. e-commerce market, suggesting significant room for growth against traditional credit cards [5] - Affirm aims to expand its user base, geographic reach, and improve its offerings, focusing on personalized offers for consumers [5][6] Competitive Landscape - The BNPL market is highly competitive, with Affirm choosing to compete on the quality of experience and offers rather than exclusivity [18] - There are two potential scenarios for the evolution of BNPL: one where providers become significant players in payments, and another where they are treated like private label credit cards [7][9] - Affirm believes the former scenario is more likely due to the power of consumer utility and the shift towards co-branded cards [9][10] Merchant Engagement and 0% Offers - The increase in merchant-funded 0% installment offers has been a significant trend, with Affirm emphasizing the long-term development of this offering [20][21] - Affirm has built a discipline around optimizing these offers, demonstrating their effectiveness to merchants [21][23] - The company has seen over 90% growth in 0% offers, indicating strong merchant engagement and a shift in how merchants view promotional strategies [26][30] Credit Reporting and Consumer Impact - Affirm is actively working with credit bureaus to report consumer repayment behavior, which is expected to enhance consumer credit scores and availability [31][32] - The company emphasizes the importance of reflecting good repayment behavior in credit scores, advocating for industry-wide participation in reporting [33][34] International Expansion - Affirm is expanding into Europe, starting with the UK, while maintaining its core value proposition of no fees and no revolving debt [47][48] - The company aims to adapt its offerings to local markets while keeping its fundamental principles intact [48] Future Directions and Technology - Affirm is not currently pursuing a neobank model but is focused on expanding its BNPL services and card offerings [36][40] - The partnership with FIS is expected to enhance distribution and consumer engagement, with future announcements anticipated regarding bank adoption of this technology [59][60] Consumer Experience and App Utilization - The Affirm app is evolving to serve as a central hub for managing transactions, with increased user engagement and transaction frequency [57][58] - The app is positioned to provide users with access to 0% offers and other promotional deals, enhancing the overall consumer experience [58] Additional Important Insights - Affirm's approach to underwriting and risk management is seen as a competitive advantage, allowing for better customer selection and retention [27][28] - The company is optimistic about the future of agented commerce and its potential to create new channels for growth [51][54] - Affirm's commitment to transparency and consumer trust is highlighted as a key differentiator in the BNPL space [6][34]

Core Insights - Three software stocks, Affirm Holdings Inc. (AFRM), AvePoint Inc. (AVPT), and Docebo Inc. (DCBO), are identified as being in the bottom 10% of value percentile rankings, indicating a potential misalignment between their valuations and underlying fundamentals, suggesting they may be poised for correction [1][2][7]. Company Summaries - **Affirm Holdings Inc. (AFRM)**: The company's value percentile dropped significantly from 23.03 to 4.14, a decline of 18.89 percentage points. Despite a year-to-date stock gain of 37.39% and a 124.99% increase over the past year, its valuation appears increasingly difficult to justify without improvements in fundamentals [9]. - **AvePoint Inc. (AVPT)**: This company saw a slight decrease in its value percentile from 10.10 to 5.95, a drop of 4.15 percentage points. The stock is down 0.30% year-to-date but has increased by 40.78% over the year. It maintains a stronger long-term price trend but shows weakness in the short and medium terms [9]. - **Docebo Inc. (DCBO)**: The value percentile for Docebo fell from 10.09 to 6.29, a decrease of 3.8 percentage points. The stock has declined 29.81% year-to-date and 22.05% over the year. It has a moderate growth ranking with a strong price trend in the short and medium terms but a weak long-term trend [9]. Value Percentile Explanation - The value percentile is a comparative ranking metric that ranges from 0 to 100, indicating how a stock's valuation compares to its peers based on financial ratios such as price-to-earnings (P/E) and price-to-book (P/B) [6].

Affirm (NASDAQ: AFRM ) is a fast-growing Fintech platform in the buy now, pay later market that has made massive progress in the last fiscal year in terms of growing key platform metrics such as gross merchandise volumeAnalyst’s Disclosure:I/we have a beneficial long position in the shares of AFRM, UPST, SOFI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I h ...

(Bloomberg) — Investors are snapping up orders for Klarna Group Plc shares ahead of its much-anticipated pricing debut late Tuesday. Part of the appeal: the buy-now-pay-later lender’s implied market valuation is currently about a 50% discount to rival Affirm Holdings Inc. The payments company from Sweden’s offering of 34.3 million shares — with more than 80% being sold by early backers — has drawn at least eight times the orders above what’s available, Bloomberg has reported. The robust demand has prompte ...