Question-and-Answer SessionHarry BartlettRothschild & Co Redburn, Research Division Great. So look, it's kind of hard to avoid the current environment at the moment. So maybe I'll start there looking at the consumer. So I guess given we're seeing kind of increasing geopolitical risk and I guess, depending on how long this lasts and we could see some spillover effects. I mean, I guess in terms of what you're seeing from the consumer in terms of demand in the credit side, maybe you can talk us through there. ...

Affirm (NasdaqGS:AFRM) Fireside Chat Summary Company Overview - **Company**: Affirm - **Date of Call**: March 17, 2026 - **Context**: Discussion on current market conditions, consumer behavior, and Affirm's business strategies Key Points Industry and Market Conditions - **Geopolitical Risks**: Current geopolitical tensions are noted, but no immediate impact on consumer demand is observed despite elevated oil prices [6][7] - **Consumer Behavior**: Demand remains steady, with no discernible stress on consumers from rising fuel prices at present [6][7] Business Operations and Strategies - **Underwriting Practices**: Affirm underwrites every transaction, allowing for nimbleness in response to consumer stress [7] - **Loan Origination**: The company originates approximately $150 million in loans daily, using early repayment signals as leading indicators for underwriting posture [8][9] Credit Stress and GMV Growth - **Credit Stress Impact**: A potential 50% increase in credit stress could lead to a 10 percentage point reduction in GMV growth [10][11] - **Profitability Management**: Most profitability comes from the middle to upper credit spectrum, minimizing the impact of tightening underwriting standards [12][13] Funding and Securitization - **Recent Securitization**: Affirm's recent securitization deal was upsized from $500 million to $750 million due to strong demand, priced at 116 basis points [17][18] - **Funding Channels**: Affirm utilizes various funding channels, including ABS, forward flow loan buying relationships, and warehouse loans, with $4 billion of untapped warehouse capacity available [20][21] Product Development and Growth - **Affirm Card Growth**: The Affirm Card has grown to represent 16% of GMV, with a year-on-year growth rate of 150% [25] - **User Engagement**: The card is primarily a second-use product, with ongoing efforts to increase user penetration and overall spend [27][28] 0% APR Products - **0% APR Strategy**: The company aims to expand the number of merchants offering 0% APR loans, viewing it as a complement to interest-bearing products [35][36] - **Consumer Adoption**: There is a high propensity for consumers to utilize both 0% and interest-bearing loans throughout their lifecycle [36] Long-term Vision and Expansion - **International Expansion**: Affirm is working towards auto-enabling Shop Pay Installments for new merchants in the U.K. and plans to expand into continental Europe [61][64] - **Partnerships**: The partnership with QuickBooks aims to facilitate consumer payments for invoices, marking an expansion into the services vertical [65][68] Banking License and Future Opportunities - **Banking Subsidiary**: Affirm is pursuing a banking license to originate loans and issue cards, enhancing its position in the value chain [70][72] - **Future Product Offerings**: While currently focused on BNPL, there is potential for future offerings in secured lending, though this remains uncertain [75] Competitive Landscape - **Market Positioning**: Affirm differentiates itself by offering a broader range of loan products compared to competitors focused on Pay in 4 transactions [51][52] - **Technological Innovations**: Tools like AdaptAI and BoostAI are being utilized to optimize offers for consumers and enhance merchant partnerships [54][55] Financial Performance and Capital Allocation - **Revenue Goals**: Affirm aims to maintain a revenue less transaction cost percentage of GMV between 3%-4%, currently operating near the high end of this range [42][43] - **Capital Return Strategies**: The company has an existing buyback program for convertible bonds, with future capital allocation strategies to be considered as the business matures [80][81] Additional Insights - **Agentic Commerce**: Affirm is prepared to adapt to shifts in consumer demand towards agentic commerce, ensuring its financing options remain relevant [59][60] - **M&A Considerations**: The company is open to acquisitions as a means to accelerate growth and enhance product offerings [84][85]

I previously covered Affirm ( AFRM ) in November 2025, discussing why the fintech was an even better Buy after the prior correction nearer to my Buy Zones, thanks to the expanding fintech/BigTech/PSP partnerships andI am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking ...

Affirm Holdings Inc. (NASDAQ:AFRM) ranks among the best growth stocks to buy and hold for the long term. Following the company’s conference presentation, Baird reaffirmed a Neutral rating on Affirm Holdings Inc. (NASDAQ:AFRM) with a $55 price target on March 5. Baird believes the company’s risk-reward profile is balanced to moderately favorable at 36x calendar 2026 projections. The firm recognized the company’s solid growth rate and potential for market dominance. However, these benefits are outweighed b ...

Affirm Holdings Inc. (NASDAQ:AFRM) is one of the 10 best financial stocks with highest upside potential. On February 17, Affirm Holdings Inc. (NASDAQ:AFRM) and Lowe’s (LOW) announced their new partnership, which will enable Affirm to provide payment plans for Lowe’s customers on Lowe’s website and Lowe’s mobile app. The companies indicated that Lowe’s will be featured on the Affirm marketplace, expanding their customer base to Affirm’s shopper network. Copyright: daviles / 123RF Stock Photo Affirm’s Ch ...

I sat down with Affirm COO @mlinford_ to understand the strength of the US consumer, along with details about $AFRM and how they see their future potential. https://t.co/rRPuUUxw8O ...

Core Insights - Affirm has demonstrated significant growth, with a 39% increase in Gross Merchandise Volume (GMV) over the past 12 months [2] - The company achieved a 30% adjusted operating income in its most recent quarter, highlighting its focus on both growth and profitability [2] - Affirm is enhancing its direct-to-consumer offerings, with the Affirm Card being a notable product contributing to its success [2]

Core Insights - The company reported a 39% year-over-year growth in gross merchandise volume (GMV) and achieved a 30% adjusted operating income in the most recent quarter, indicating strong momentum in both growth and profitability [6] - The Affirm Card has become a significant product in the company's direct-to-consumer strategy, representing approximately 16% of GMV in the latest quarter, with user adoption and GMV tied to the card more than doubling year-over-year [2][6] - The company is focusing on expanding its partnerships and consumer network, with nearly 26 million active consumers and new partnerships with major brands like Expedia, Intuit, Lowe's, and ServiceTitan [4][5] User Adoption and Product Performance - User adoption and GMV associated with the Affirm Card have more than doubled year-over-year, showcasing strong unit-level economics that support investment in user acquisition [1] - In-store usage of the Affirm Card is significantly higher compared to other business segments, indicating robust offline engagement [2] - The breadth of Affirm's loan products, with about two-thirds being monthly interest-bearing loans, provides flexibility in structuring merchant programs [3] Financial Performance and Guidance - The company expressed pride in its financial performance, highlighting a strong quarter with notable growth and profitability [5] - Credit trends are described as stable, with 96% of transactions coming from repeat borrowers, and repayment outcomes aligning with expectations [8] - The company may revisit its long-term target range for revenue less transaction costs (RLTC) as a percentage of GMV, which was historically set at 3%-4% [6][7] International Expansion and Partnerships - The company is in the early stages of international growth, particularly in the U.K., and is optimizing its product offerings with Shopify [12] - Affirm is also pursuing partnerships with Fiserv and FIS to enhance the distribution of Affirm Card functionality through bank debit cards [14] - A bank subsidiary application has been submitted, which could diversify loan origination and funding channels if approved [13] Product Offerings and Market Strategy - The 0% APR programs are profitable and attract higher-credit borrowers, complementing the existing mix of interest-bearing loans [10] - The company is testing a rent-related pilot to help consumers manage cash flows while avoiding stacked loans [15] - Affirm's value proposition for merchants is increasingly linked to its consumer network, enhancing the overall appeal of its offerings [4]

Core Insights - Affirm Holdings, Inc. (AFRM) shares have decreased by 33.2% year-to-date, underperforming the S&P 500's 1.2% decline and the industry's 10.6% drop [1] - Major competitors in the buy now, pay later (BNPL) space, such as PayPal and Klarna, have also experienced significant losses of 22.9% and 47.1%, respectively [1] Market Performance - The fintech sector is facing pressure due to persistent inflation concerns, geopolitical turmoil, and worries about consumer debt repayment capabilities [4] - Increased competition in the BNPL market, particularly from Klarna, is impacting sentiment [4] - Affirm's stock is trading approximately 50.2% below its 52-week high of $100, indicating a significant pullback [5] Long-Term Growth Potential - Affirm is focusing on long-term growth through partnerships, product expansion, and a growing user base, with plans to expand its partnership with Shopify into Europe [6] - The company reported 25.8 million active consumers by the end of 2025, reflecting a 23% year-over-year increase [6] - Affirm is becoming more integrated into everyday spending categories, leading to a 44% increase in transactions to 54.9 million in the last reported quarter, with repeat activity making up about 96% of total transactions [8] Product Development - The Affirm Card is a key growth driver, with active cardholders increasing by 121% in the fiscal second quarter [9] - Gross Merchandise Volume rose 36% year-over-year to $13.8 billion in the fiscal second quarter [9] Earnings Estimates - The Zacks Consensus Estimate for fiscal 2026 earnings indicates a 640% year-over-year increase, with fiscal 2027 earnings expected to grow by 58.2% [10] - Revenue estimates for fiscal 2026 and 2027 suggest year-over-year growth of 28.5% and 24.9%, respectively [10] Valuation - Affirm is currently trading at a forward price-to-sales ratio of 3.41X, below its five-year median of 4.57X and the industry average of 3.98X, indicating potential for growth [11] - In comparison, PayPal and Klarna have forward price-to-sales ratios of 1.20X and 2.37X, respectively [11] Conclusion - Affirm's year-to-date decline is attributed to broader pressures in the fintech and BNPL sectors, including inflation concerns and competitive dynamics [12] - Despite these challenges, the company's long-term growth drivers, such as expanding merchant relationships and increasing consumer adoption, remain strong [12] - International expansion and product momentum are expected to enhance Affirm's ecosystem and drive higher Gross Merchandise Volume over time [13]

Affirm Conference Call Summary Company Overview - **Company**: Affirm (NasdaqGS:AFRM) - **Industry**: Buy Now, Pay Later (BNPL) and e-commerce financing Key Accomplishments and Financial Performance - **Growth Metrics**: - GMV (Gross Merchandise Volume) grew by **39%** over the last 12 months [3] - Recent quarter reported **30%** adjusted operating income [4] - Fiscal second quarter saw **36%** GMV growth, **23%** active consumer growth, and **29%** RLTC (Revenue per Loan Transaction) growth [20] - GAAP operating margins expanded to nearly **11%** [20] - **Affirm Card Performance**: - Affirm Card accounted for **16%** of GMV in the last quarter, with **14%** of users utilizing the card [5] - User adoption of Affirm Card doubled year-over-year [23] Merchant Partnerships - Renewed partnership with **Amazon** for five years and with **Expedia** [6][21] - New partnerships include **Intuit**, **Lowe's**, and **ServiceTitan** [6] Consumer Network and Value Proposition - Affirm has nearly **26 million** active consumers, enhancing its value proposition to merchants [7] - Two-thirds of volume comes from monthly interest-bearing loans, allowing flexibility in monetization [13] Guidance and Market Conditions - Fiscal year guidance projects **32.5%** GMV growth and RLTC just over **4%** [31] - Credit metrics remain stable, with **96%** of transactions from repeat borrowers [44] - No significant changes in competitive intensity noted [72] Profitability and Investment Strategy - Affirm views growth and profitability as complementary rather than trade-offs [55] - Plans for continued margin expansion and investment in AI tools to enhance efficiency [61][62] International Expansion - Ongoing optimization in the UK with Shopify and new merchant wins like **Virgin Media O2** and **Wayfair** [94][96] Regulatory Landscape - Proposed legislation in New York regarding BNPL is not seen as a headwind for Affirm [129] Future Opportunities - Exploring vertical diversification, particularly in services through partnerships with **ServiceTitan** and **Intuit** [102] - Submitted application for a bank subsidiary, expected to diversify loan origination and funding channels [107][110] Conclusion - Affirm is experiencing strong growth and profitability, with a solid operational plan and positive market conditions. The company is focused on expanding its consumer base, enhancing merchant partnerships, and exploring new verticals while maintaining a stable credit posture.