Core Insights - The CEO of Affirm, Max Levchin, indicated that while there is no significant credit stress among federally employed borrowers due to the government shutdown, there are emerging changes in shopping habits among this group [1][2] - The ongoing federal funding lapse, which started on October 1, is the longest in U.S. history and has affected not only government employees but also programs like SNAP, which serves 42 million Americans [2] Group 1 - Affirm is observing a subtle decline in shopping interest among federal employees, with a noted change of a couple of basis points [1] - Approximately 670,000 federal employees have been furloughed, and around 730,000 are working without pay due to the shutdown [1] - The company is monitoring employment data for potential disruptions but currently reports no major disturbances in its operations [2] Group 2 - Affirm has the capability to adjust its credit standards if necessary, indicating a proactive approach to potential economic changes [2] - The impact of the federal funding lapse extends beyond government employees, affecting various sectors and programs [2]

Core Insights - Affirm Holdings Inc's stock surged by 11.2% to $73.31 following better-than-expected fiscal Q1 earnings of 23 cents per share on revenue of $933.3 million, with full-year gross merchandise value (GMV) expectations of $47.50 billion exceeding estimates [1] Group 1: Stock Performance and Analyst Reactions - Morgan Stanley lowered its price target for Affirm to $83 from $90, while BofA Global Securities raised its target to $98 from $94, with a 12-month consensus price target of $94.26 representing a 29% premium to current levels [2] - Year-to-date, Affirm's equity has increased by 20.4%, although it has faced pressure below the $80 level after reaching a three-year high of $100 on August 29 [2] Group 2: Options Trading Activity - Options traders have shown significant activity with 26,000 calls and 14,000 puts exchanged, which is quadruple the typical volume, indicating strong interest in the stock [3] - The most popular options include the weekly 11/7 75-strike call and the 80-strike call, with new positions opening at the latter [3] Group 3: Short Interest Dynamics - Short interest in Affirm has decreased by 12.5% over the last two weeks, but it still represents 5% of the stock's available float, suggesting potential for a short squeeze to help the stock reclaim its previous trendline [4]

Group 1: Affirm Holdings (AFRM) - Affirm Holdings reported an EPS of 23 cents, beating estimates by 12 cents [1][7] - Revenue reached $933.34 million, a 33.6% year-over-year increase, surpassing estimates by $49.98 million [1][7] - The company raised its gross merchandise volume (GMV) guidance to $47.5 billion from $46 billion and increased the adjusted operating margin outlook to 27.1% from 26.1% [1][7] Group 2: Expedia Group (EXPE) - Expedia Group's shares rose by about 17%, or $37.47 per share, driven by strong earnings [2] - The company raised its 2025 revenue growth forecast to between 6% and 7%, up from earlier estimates of 3% to 5% [2] - Bookings in the B2B segment increased by 26% to $9.38 billion during the third quarter [2] Group 3: Globus Medical (GMED) - Globus Medical's shares increased by about 29%, or $18 per share, following strong earnings [3] - The company reported an EPS of $1.18, beating estimates by 41 cents [3] - Revenue was $769 million, a 23% increase year-over-year, exceeding estimates by $34.33 million [3][4] Group 4: Akamai Technologies (AKAM) - Akamai Technologies' shares rose by about 10%, or $7.26 per share, due to strong earnings [5] - The company reported an EPS of $1.86, beating estimates by 22 cents [5] - Revenue was $1.05 billion, a 5% year-over-year increase, surpassing estimates by $10 million [5][6]

Core Viewpoint - The company reported a strong earnings performance with a record of 20.41 million transactions last quarter, indicating robust consumer engagement despite broader economic concerns [1][3]. Company Performance - The company achieved a quarterly gross merchandise volume (GMV) of just under $11 billion, reflecting a growth rate of 42% [3]. - The company added 500,000 users to its debit card, bringing the total number of active consumers to over 24 million [1][15]. - The company remains profitable, with a target revenue-less transaction cost margin of 3% to 4%, achieving 4.2% in the latest quarter [8]. Consumer Behavior - There are no signs of degradation in consumer spending among the company's users, with significant growth in categories like ticketing and travel [3][11]. - The company is closely monitoring employment data, as it considers U.S. employment to be a critical metric for its operations [9][10]. Credit Underwriting Practices - The company underwrites each transaction individually, allowing for daily adjustments to credit standards based on current data [6][11]. - The average life of each transaction is approximately four and a half months, enabling the company to respond quickly to changes in consumer behavior [6][11]. - The company does not charge late fees or compounding interest, focusing instead on effective underwriting practices [7][8]. Future Outlook - The company is committed to expanding its merchant base and continues to promote the buy now, pay later model as a favorable purchasing option [14][15]. - The company is actively engaged in research and development in machine learning and AI, although it adheres strictly to legal regulations regarding credit underwriting [16][17].

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Core Insights - Affirm reported a solid fiscal first quarter, indicating strong performance in key financial metrics [1] Financial Performance - The company demonstrated significant growth in revenue, with a year-over-year increase of 40% [1] - Affirm's net loss for the quarter was reported at $50 million, which reflects a decrease compared to the previous year [1] - The adjusted EBITDA margin improved, showcasing operational efficiency [1] User Engagement - Active users on the platform increased by 25% year-over-year, highlighting growing consumer adoption [1] - The total number of transactions processed rose significantly, indicating robust demand for Affirm's services [1] Market Position - Affirm continues to strengthen its position in the buy now, pay later (BNPL) market, competing effectively against other players [1] - The company is focusing on expanding partnerships with various merchants to enhance its service offerings [1]

Core Insights - Affirm Holdings reported strong fiscal Q1 earnings, with a profit of 23 cents per share, compared to a loss of 31 cents per share a year earlier, and an adjusted operating margin of 28.3%, up from 19% [2][3] - Revenue increased by 34% to $933 million, surpassing estimates of $883 million, while gross merchandise volume rose 42% to $10.8 billion, driven by the new debit card [3][4] - The company has seen a significant increase in active customers, reaching 24.1 million, up from 19.5 million a year ago [4] Financial Performance - Affirm's revenue growth was bolstered by the adoption of the Affirm Card, which now has 2.8 million users, representing about 11.6% of active consumers [4] - The company predicts fiscal Q2 revenue of $1.045 billion, aligning with market expectations [7] - Affirm's revenue mix is shifting towards more Buy Now, Pay Later (BNPL) plans with no interest, which generally have lower margins but attract higher credit quality consumers [8] Market Position and Competition - Affirm is a leading provider in the BNPL sector, competing with companies like Klarna, Sezzle, and PayPal [5][9] - The company has established partnerships with major retailers, including Amazon and Shopify, and has extended its relationship with Amazon for five more years [11] - A new partnership with Apple could significantly impact Affirm's growth in 2026, as BNPL plans are now available for in-store purchases at Apple stores [10] Stock Performance - Following the earnings report, Affirm's stock surged over 10% to $72.60, despite previous declines due to broader economic concerns [6] - The stock has an IBD Composite Rating of 81, indicating strong growth potential, and an Accumulation/Distribution Rating of B-minus, suggesting more funds are buying than selling [12]

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Core Insights - Affirm experienced significant growth in 0% APR installment volumes, which increased by 74% as over 40,000 merchants offered interest-free options, enhancing value for both merchants and consumers [1][7] - The company reported a 42% growth in gross merchandise volume (GMV), reaching $10.8 billion, with nearly half of this growth attributed to direct merchant integrations and a third from direct-to-consumer channels [1][3] - Affirm's partnership with Amazon has been extended for an additional five years, solidifying a key relationship for future growth [2] Financial Performance - Gross merchandise volume rose 42% to $10.8 billion, while revenue increased by 34% to $933 million [3] - Direct-to-consumer GMV surged by 53% to $3.2 billion, driven by a 135% increase in Affirm Card volume to $1.4 billion [5] - Active consumers grew by 24% to 24.1 million, with transactions per active consumer rising from 5.1 to 6.1 [9] Market Expansion - The number of merchants increased by 30% to 419,000, indicating strong momentum in the market [8] - Wallet partners contributed over $7 billion in GMV, reflecting a nearly 70% increase [8] - Affirm's funding capacity rose to $26.6 billion, supporting over $60 billion in annual GMV, with projections for fiscal 2026 exceeding $47.5 billion [9] Consumer Insights - Affirm's consumer base is healthy, with low delinquency and default rates, tracking to less than 1% of GMV for recent Pay in 4 loans [8] - The company is focusing on expanding access to younger consumers and those typically overlooked by traditional credit systems [6]

Core Insights - Affirm Holdings reported a revenue of $933.34 million for the quarter ended September 2025, marking a 33.6% increase year-over-year and exceeding the Zacks Consensus Estimate of $885.01 million by 5.46% [1] - The company achieved an EPS of $0.23, a significant improvement from -$0.31 in the same quarter last year, resulting in an EPS surprise of 109.09% compared to the consensus estimate of $0.11 [1] Financial Performance Metrics - Gross Merchandise Volume (GMV) reached $10,800 billion, surpassing the average estimate of $10,384.1 billion [4] - Active Consumers remained stable at 24, matching the average estimate [4] - Transactions per Active Consumer were consistent at 6, aligning with the average estimate [4] - Total Transactions amounted to 41, exceeding the average estimate of 36 [4] - Revenue from the Merchant network was $251.15 million, up 36.2% year-over-year, and above the average estimate of $247.86 million [4] - Revenue from the Card network was $69.33 million, reflecting a 46% increase year-over-year, surpassing the average estimate of $65.66 million [4] - Revenue from Interest income was $454.12 million, a 20.4% year-over-year increase, exceeding the average estimate of $435.9 million [4] - Revenue from Servicing income was $39.69 million, up 52.8% year-over-year, and above the average estimate of $36.98 million [4] - Revenue from Gain on sales of loans was $119.05 million, representing an 87.2% year-over-year increase, exceeding the average estimate of $94.11 million [4] Stock Performance - Affirm Holdings' shares have returned -5% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]