Core Viewpoint - Affirm and Virgin Media O2 have announced a partnership to provide transparent and flexible payment options for hardware financing to O2 customers, enhancing their purchasing experience [1] Group 1: Partnership Details - The partnership will allow both new and existing O2 customers to select payment options that best fit their needs when purchasing devices [1] - Affirm will specifically offer financing options for mobile phones and other hardware [1]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Affirm’s fiscal second quarter illustrated how buy now, pay later is becoming embedded in routine commerce, where paying over time was once reserved for occasional large purchases.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional lo ...

Affirm Holdings (AFRM) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +32.14%. A quarter ago, it was expected that this operator of digital commerce platform would post earnings of $0.11 per share when it actually produced earnings of $0.23, delivering a surprise of +109.09%.Over the ...

Affirm (NasdaqGS:AFRM) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAdam Frisch - Senior Managing DirectorBryan Keane - Head of North America Payments Processors & IT Services ResearchDan Perlin - Managing DirectorDarrin Peller - Managing DirectorJohn Hecht - Managing DirectorMatt Coad - Equity Research DirectorMax Levchin - Founder and CEOMichael Linford - COONate Svensson - Director in Equity ResearchRayna Kumar - Managing Director and Head of Fintech Equity ResearchReginald Smi ...

Financial Data and Key Metrics Changes - The company reported excellent results for Q2 of FY 2026, with significant growth in key metrics, although specific figures were not disclosed in the opening remarks [6][10]. - The company expects RLTC take rates to hover slightly above 4% for Q3 and Q4, maintaining a similar trajectory to Q2 [21][23]. Business Line Data and Key Metrics Changes - The Affirm Card saw GMV year-over-year growth of just under 160%, with active cardholders increasing by 121% and 0% deals on the card rising by 190% year-over-year [61]. - The "other" category, which includes various small merchants, has grown to represent 15% of total GMV and is experiencing triple-digit growth [30][33]. Market Data and Key Metrics Changes - The company is expanding its international presence, particularly in the U.K., with new partnerships and deals that are expected to scale up [62][63]. - The market for ABS deals remains constructive, with recent deals priced with spreads under 100 basis points, indicating strong confidence from investors [49]. Company Strategy and Development Direction - The company is focused on building a universal acceptance mark similar to Visa, aiming to be present in every retail environment, both online and offline [111]. - The decision to explore new categories such as home improvement and medical is driven by consumer demand and the desire to build a broader network [110]. Management's Comments on Operating Environment and Future Outlook - Management noted that the current consumer environment appears healthy, with consumers willing and able to repay loans [18]. - There are no significant deviations from previous quarters, and the company is not seeing disturbances in credit quality [97]. Other Important Information - The company has applied for a bank charter to gain regulatory certainty and potentially unlock new products and services in the future [38][39]. - The Boost AI product is still in early stages, with limited merchant adoption, but it is expected to enhance marketing effectiveness for merchants [48]. Q&A Session Summary Question: Dynamics of growth with top merchants - Management indicated that the top five merchants for Q2 FY 2026 are different from the previous year, and the business is diversifying well despite some concentration [10][14]. Question: Overview of consumer trends and economic health - Management stated that the current consumer is healthy and willing to repay loans, with no significant changes observed in the economic environment [17][18]. Question: RLTC margin trajectory - Management expects RLTC margins to remain around 4% for the remainder of the year, with benefits from lower transaction costs [21][24]. Question: Impact of competition on merchant pricing - Management noted that aggressive promotional strategies from competitors have not significantly affected Affirm's pricing or market position [27][29]. Question: Growth in the "other" category - Management explained that the "other" category includes a diverse range of small merchants, and growth in this area is driven by increased awareness of Affirm's offerings [30][33]. Question: Bank charter application - Management clarified that the bank charter application is primarily for regulatory certainty and not directly linked to short-term funding costs [38][110]. Question: ABS deal execution - Management highlighted strong execution in ABS deals, with favorable market conditions leading to lower financing costs [49]. Question: Fiserv partnership - Management discussed the partnership with Fiserv, aiming to provide Buy Now, Pay Later capabilities through existing debit card infrastructure [116].

Affirm (NasdaqGS:AFRM) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Speaker2Good afternoon. Welcome to the Affirm Holdings second quarter fiscal 2026 earnings call. Following the speaker's remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded, and a replay of the call will be available on our investor relations website for a reasonable period of time after the call. I'd now like to turn the call over to Zane Keller, Head of Investor Relations. You m ...

Affirm Holdings, Inc. (NASDAQ:AFRM) shares slipped in Thursday's extended trading after the company released its second-quarter earnings report Here's a look at the key figures from the quarter. AFRM stock is moving. Watch the price action here.The Details: Affirm reported quarterly earnings of 37 cents per share, which beat the consensus estimate of 30 cents.Quarterly revenue came in at $1.12 billion, which beat the Street estimate of $1.06 billion.GMV (gross merchandise value grew 36% to $13.8 billion. Ac ...

Financial Performance - Total revenue for the three months ended December 31, 2025, was $1,123,019, representing a 30% increase from $866,381 in the same period of 2024[224] - Operating income for the same period was $117,626, compared to a loss of $4,322 in the prior year, indicating a significant turnaround[224] - Net income for the three months ended December 31, 2025, was $129,586, a 61% increase from $80,360 in the same period of 2024[224] - The total operating expenses for the three months ended December 31, 2025, were $1.01 billion, a 15% increase from $870.7 million in the same period of 2024[260] - Net income for the three months ended December 31, 2025, was $129.6 million, a 61% increase from $80.4 million in the same period in 2024[260] Gross Merchandise Volume (GMV) - The Gross Merchandise Volume (GMV) for the three months ended December 31, 2025, was $13.8 billion, representing a 36% increase from $10.1 billion in the same period in 2024[251] - For the three months ended December 31, 2025, Pay-in-X represented 17% of total GMV facilitated through the platform, up from 15% in the same period of 2024[226] - Interest-bearing loans accounted for 67% of total GMV facilitated through the platform for the three months ended December 31, 2025, down from 72% in the same period of 2024[227] - GMV from 0% APR monthly installment loans was $2.1 billion for the three months ended December 31, 2025, representing a 65% increase from $1.3 billion in the same period in 2024[252] Consumer Metrics - The number of active consumers reached approximately 25.8 million as of December 31, 2025, a 23% increase from 21.0 million in the same period in 2024[254] - Transactions per active consumer increased by 20% to 6.4 for the twelve months ended December 31, 2025, compared to 5.3 for the same period in 2024[259] - Active consumers grew to 25.8 million as of December 31, 2025, up from 21.0 million as of December 31, 2024, with transactions per active consumer increasing from 5.3 to 6.4[265] - The number of consumer transactions increased by 44% for the three months ended December 31, 2025, compared to the same period in 2024[283] Revenue Streams - Merchant network revenue grew by 34% to $328.4 million for the three months ended December 31, 2025, compared to $244.9 million in the same period in 2024[260] - Merchant network revenue increased by $83.5 million, or 34%, and $150.3 million, or 35%, for the three and six months ended December 31, 2025, respectively, compared to the same periods in 2024, driven by a GMV increase of $3.6 billion, or 36%, and $6.8 billion, or 38%[263] - Interest income increased by 21% to $493.6 million for the three months ended December 31, 2025, compared to $409.4 million in the same period in 2024[260] - Interest income increased by $84.3 million, or 21%, and $161.3 million, or 21%, for the three and six months ended December 31, 2025, respectively, correlated with a 22% increase in the average balance of loans held for investment to $8.0 billion[267] - Gain on sales of loans increased by $59.9 million, or 48%, and $115.4 million, or 61%, for the three and six months ended December 31, 2025, respectively, with loan sale volume increasing to $6.0 billion and $10.9 billion[268] - Servicing income increased by $14.1 million, or 49%, and $27.8 million, or 51%, for the three and six months ended December 31, 2025, respectively, due to a 50% increase in the average unpaid principal balance of loans held by third-party investors to $9.1 billion[272] Expenses and Costs - Loss on loan purchase commitment increased by $25.8 million, or 37%, and $43.1 million, or 35%, for the three and six months ended December 31, 2025, respectively, due to a 33% increase in total volume of loans purchased to $10.8 billion and $19.5 billion[274] - Provision for credit losses increased by $61.2 million, or 40%, and $64.1 million, or 20%, for the three and six months ended December 31, 2025, respectively, primarily related to loans held for investment[276] - Funding costs increased by $4.0 million, or 4%, and $9.8 million, or 5%, for the three and six months ended December 31, 2025, respectively, driven by a 22% increase in average total funding debt to $7.2 billion[279] - Processing and servicing expense increased by $42.6 million, or 37%, and $81.3 million, or 39%, for the three and six months ended December 31, 2025, respectively, driven by a 40% increase in payment volume to $3.1 billion and $6.0 billion[281] - Technology and data analytics expense increased by $36.7 million, or 25%, for the three months ended December 31, 2025, compared to the same period in 2024[283] - Sales and marketing expense decreased by $37.3 million, or 27%, during the three months ended December 31, 2025, compared to the same period in 2024[285] - General and administrative expense increased by $1.8 million, or 1%, during the three months ended December 31, 2025, compared to the same period in 2024[287] - Other income, net, decreased by $71.6 million, or 82%, during the three months ended December 31, 2025, compared to the same period in 2024[289] Cash Flow and Financing - Net cash provided by operating activities was $548.3 million for the six months ended December 31, 2025[308] - Net cash used in investing activities was $1.5 billion for the six months ended December 31, 2025, primarily driven by purchases and origination of loans held for investment of $22.5 billion[310] - Net cash provided by financing activities was $1.3 billion for the six months ended December 31, 2025, with cash inflows driven by $18.4 billion in proceeds from the issuance of secured debt[313] - Cash outflows related to principal repayments on secured debt were $17.0 billion for the six months ended December 31, 2025[313] - The company has drawn an aggregate of $1.9 billion on its warehouse credit facilities as of December 31, 2025[296] - The company intends to add necessary funding capacity to support growth objectives as it expands into new geographies[298] Risk and Economic Environment - The macroeconomic environment, including interest rate changes and economic uncertainty, continues to impact consumer demand and loan repayments[238] - Continued volatility in interest rates may adversely impact consumers' spending levels and willingness to pay outstanding amounts owed[327] - 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[329] - The company was exposed to credit risk on $8.8 billion of loans held within its interim condensed consolidated balance sheet as of December 31, 2025[332] - The fair value of notes receivable and residual trust certificate retained interests in unconsolidated securitization trusts was $80.1 million as of December 31, 2025[333] - The company has sold $10.2 billion in unpaid principal balance loans subject to risk sharing arrangements as of December 31, 2025, with a maximum exposure to losses of $75.9 million[333] Future Plans - The company submitted applications to establish Affirm Bank on January 23, 2026, which would operate as a wholly owned, Nevada-chartered, FDIC-insured bank subsidiary[244] - The company expects seasonal fluctuations in GMV, with the strongest performance typically occurring during the fiscal second quarter due to holiday spending[237] - The company leverages a diverse capital ecosystem to support resilience across various macroeconomic conditions and economic cycles[239]

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 statements regarding: the Company's strategy and future operations, including the Company's partnerships with certain key merchant partners and commerce platf ...