Core Viewpoint - Affirm Holdings, Inc. reported a fiscal third-quarter 2025 earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.09 per share and significantly improving from a loss of $0.43 per share in the prior-year quarter [1] Financial Performance - Total revenues increased by 36% year over year to $783.1 million, slightly missing the consensus mark by 0.1% but within management's expectations of $755-$785 million [1] - Gross Merchandise Value (GMV) reached $8.6 billion, climbing 36% year over year, exceeding both management's expectations of $8-$8.3 billion and the Zacks Consensus Estimate of $8.1 billion [3] - Total transactions surged by 45.6% year over year to 31.3 million, driven by a significant increase in repeat customer transactions [4] - Servicing income rose by 27% year over year to $32.1 million, beating the consensus mark of $31.3 million [4] - Interest income increased by 28% year over year to $402.7 million, although it fell short of the Zacks Consensus Estimate of $414.4 million [4] Revenue Breakdown - Merchant network revenues improved by 34.3% year over year to $214 million, surpassing the consensus mark of $199.5 million [5] - Card network revenues surged by 64.2% year over year to $58.6 million, attributed to higher usage of Affirm Card and virtual cards, exceeding the consensus estimate of $46.4 million [5] Expense and Losses - Total operating expenses rose by 7.4% year over year to $791.5 million, driven by increased costs in various areas including loan purchase commitments and technology expenses [6] - Provision for credit losses escalated by 20.3% year over year to $147.3 million [6] - Sales and marketing expenses decreased by 44.3% year over year [6] Profitability Metrics - Adjusted operating income totaled $173.7 million, more than doubling year over year, with an adjusted operating margin improving by 860 basis points to 22.2%, surpassing management's estimated range of 20-22% [7] - Affirm's net income was $2.8 million, a significant recovery from a net loss of $133.9 million in the prior-year quarter [7] Financial Position - As of March 31, 2025, Affirm had cash and cash equivalents of $1.4 billion, a 33.4% increase from the fiscal 2024-end figure [8] - Total assets rose by 9.6% year over year to $10.4 billion [8] - Funding debt amounted to $1.9 billion, up 3.9% from June 30, 2024 [8] - Total stockholders' equity increased by 5.2% to $2.9 billion [8] Cash Flow - Affirm generated $210.4 million of net cash from operations during the March quarter, reflecting a 1.1% year-over-year increase [9] Future Guidance - For the fourth quarter of fiscal 2025, Affirm forecasts GMV in the range of $9.4-$9.7 billion, up from the previous estimate of $9-$9.3 billion [10] - Revenues are anticipated to be between $815-$845 million, higher than the earlier guidance of $810-$840 million [10] - For fiscal 2025, management anticipates GMV to be in the range of $35.7-$36 billion, an increase from the earlier guidance of $34.74-$35.34 billion [12] - Revenues for fiscal 2025 are expected to be in the range of $3.163-$3.193 billion, up from the prior outlook of $3.13-$3.19 billion [12]

Core Insights - Affirm Holdings Inc experienced a significant decline in share price despite reporting fiscal third-quarter results that were broadly in line with expectations [1] - The company's gross merchandise value (GMV) reached $8.6 billion, representing a 36.5% increase, surpassing the consensus estimate of $8.2 billion [2] - Revenue for the quarter was reported at $783.1 million, up 35.9%, aligning with consensus expectations [3] Financial Performance - Affirm raised its fiscal fourth-quarter GMV outlook from a range of $9 billion to $9.3 billion to a new range of $9.4 billion to $9.7 billion, indicating strong execution and growth [4] - The revenue outlook for the fourth quarter was also increased from $810 million to $840 million to a new range of $815 million to $845 million [4] - Despite positive revenue and GMV growth, there were weaker-than-expected results in interest income and gain on sale revenue [3] Market Reaction - Following the earnings report, Affirm's shares fell by 13.71%, trading at $46.82 [4] - Analyst Kyle Peterson maintained a Hold rating on the stock, citing a lack of positive catalysts in the near term due to rising recessionary fears [4]

Core Insights - The article highlights five cloud computing-centric stocks that are expected to deliver strong returns in the short term, emphasizing their earnings and revenue growth potential for 2025 [3][4]. Group 1: Cloud Computing Overview - Cloud computing provides on-demand access to computing resources over the Internet, transitioning from traditional on-premises infrastructure to cloud-based solutions [1]. - Organizations can access shared resources from cloud service providers, which reduces operating costs and enhances productivity and scalability [2]. Group 2: Stock Picks and Performance - The selected stocks include Five9 Inc. (FIVN), Affirm Holdings Inc. (AFRM), Microsoft Corp. (MSFT), Juniper Networks Inc. (JNPR), and Tyler Technologies Inc. (TYL), all showing strong earnings growth potential [3][4]. - Each stock has received positive earnings estimate revisions in the last 60 days and carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4]. Group 3: Company-Specific Insights Five9 Inc. (FIVN) - Five9 provides intelligent cloud software for contact centers, offering a virtual platform for customer service and sales functions [8]. - The company is experiencing growth due to the adoption of AI tools, with an expected revenue growth rate of 9.6% and earnings growth of 10.9% for the current year [11][10]. Affirm Holdings Inc. (AFRM) - Affirm has diversified revenue streams and expects revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by partnerships and expanding into new markets [12][13]. - The expected revenue growth rate is 37.1%, with earnings growth projected at 96.4% for the current year [14]. Microsoft Corp. (MSFT) - Microsoft reported strong fiscal Q3 2025 results, driven by AI business growth and Azure cloud infrastructure [15][16]. - The expected revenue growth rate is 13.7%, with earnings growth of 12.7% for the current year [17]. Juniper Networks Inc. (JNPR) - Juniper Networks reported strong Q1 2025 results, benefiting from demand for AI-driven enterprise solutions and data center virtualization [18][19]. - The expected revenue growth rate is 7.3%, with earnings growth of 21.5% for the current year [20]. Tyler Technologies Inc. (TYL) - Tyler Technologies is capitalizing on the public sector's shift to cloud-based systems and the hybrid working trend, with an expected revenue growth rate of 8.9% and earnings growth of 15.6% for the current year [21][22].

Core Insights - Affirm experienced significant growth in its fiscal third quarter, with gross merchandise value (GMV) and revenues both increasing 36% year over year to $8.6 billion and $783 million, respectively, although guidance indicates a slight deceleration in growth rates ahead [1][3][5] Financial Performance - The Affirm Card's GMV surged 115% year over year to $807 million, with 2 million active cardholders, contributing to a total of 21.9 million active consumers, up 23% from a year ago [6][1] - Revenues rose 36% to $783 million, with 0% APR monthly installments growing by 44%, accounting for 13% of the company's GMV [4][5] - Merchant counts increased by 20% to 358,000, while charge-offs are trending toward 3.5% and loss rates for Pay in 4 loans are below 1% [6] Guidance and Future Outlook - Guidance for the current quarter anticipates revenues between $815 million and $845 million, with a midpoint of $830 million, slightly below the Street's consensus of $840 million [7] - The company expects year-on-year growth of 34%, down from the 36% growth seen in the last quarter, with elevated growth rates observed in April [9] Macroeconomic Considerations - Affirm expressed confidence in managing various macroeconomic environments, anticipating increased demand for payment flexibility during stress scenarios [2][9] - The company estimates that in a recession scenario with a ~50% increase in credit stress, a reduction in approvals could cost about 10 percentage points of GMV growth [9] Consumer Behavior and Credit Reporting - Affirm noted healthy repayment rates and a slight uptick in prepayments, indicating positive credit signals [7] - The company highlighted the importance of credit reporting, stating that timely repayments help consumers build their credit history and improve their credit scores [10]

Thursday, May 8, 2025Markets rose today on hopeful sentiment regarding trade deals with U.S. partners, after an agreement with the UK that kept the baseline +10% tariff in place. The UK is far from the U.S.’s top trading partner, but the hope is that other deals will be coming down the pike in the coming days and weeks. The 90-day tariff suspension ends (at this point) on July 10th of this year.Whether more deals do land or they don’t, the Dow gained +254 points today, +0.62% (although it had been up +655 p ...

For the quarter ended March 2025, Affirm Holdings (AFRM) reported revenue of $783.14 million, up 35.9% over the same period last year. EPS came in at $0.01, compared to -$0.43 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $783.85 million, representing a surprise of -0.09%. The company delivered an EPS surprise of +111.11%, with the consensus EPS estimate being -$0.09.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Affirm Holdings (AFRM) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.09 per share. This compares to loss of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 111.11%. A quarter ago, it was expected that this operator of digital commerce platform would post a loss of $0.20 per share when it actually produced earnings of $0.23, delivering a surprise of 215%.Over the ...

Affirm is partnering with Costco to offer online shoppers the option to pay over time for transactions.The financial services company announced the collaboration Thursday (May 8) in a shareholder letter. Customers, if approved, will be to able select monthly Affirm payment plans when shopping on Costco’s website.“[We] are proud to announce our online partnership with Costco — a brand and a retailer I have personally admired for a long time because of their unwavering commitment to customer experience and tr ...

Affirm (AFRM) Q3 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Zane Keller - Director, Investor RelationsMax Levchin - Founder and CEORob O’Hare - CFOAdam Frisch - Senior Managing Director - EquitiesRamsey El-Assal - Managing DirectorWill Nance - Vice PresidentJames Faucette - Managing DirectorMatthew O'Neill - Managing DirectorKyle Peterson - Managing Director, Equity ResearchMichael Linford - COOGiuliano Bologna - Managing DirectorReggie Smith - Executive Director - Equity Research Conf ...

Affirm (AFRM) Q3 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good afternoon. Welcome to the Affirm Holdings Third Quarter Fiscal twenty twenty five Earnings Call. Following the speakers' remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded. A replay of the call will be available on our Investor Relations website for a reasonable period of time after the call. I'd like to turn the call over to Zane Keller, Head of Investor Relations. Thank you. Yo ...