Affirm Q1 2026 Earnings Call - Buy Now, Sell Later?

Core Insights - The Buy Now, Pay Later (BNPL) industry is experiencing a pivotal moment, particularly for Affirm, as it prepares to report its fiscal Q1 2026 earnings, raising investor questions about the timing for buying or selling [2][3] Financial Performance - Affirm is set to report fiscal Q1 2026 results, covering the period from July to September 2025, with key metrics including revenue growth, earnings per share, gross merchandise volume (GMV), credit quality, and the performance of the Affirm Card, which saw a 97% increase in active users to 2.3 million in Q4 [3] - For the fiscal year ending June 30, 2025, Affirm achieved its first-ever full-year GAAP net income of $52.19 million, a significant turnaround from the previous year's net loss [8] - The company reported a 43% year-over-year increase in GMV during its strong fiscal fourth quarter, marking its first quarterly operating profit [9] Market Conditions - Recent Federal Reserve rate cuts have eased funding pressures for BNPL players, improving margins and funding flexibility for Affirm [4] - Regulatory risks have diminished, as the CFPB reversed its earlier decision to classify BNPL lenders as "credit card providers," leading to a more favorable operating environment for Affirm and its peers [5] Stock Performance - Affirm shares have increased by 67.1% year-to-date in 2025, with a 52-week trading range between a low of $30.90 and a high of $100.00 [8] - The stock opened at $71.14 but declined to a low of $66.24 during the session at the time of writing [9] Industry Comparables - Klarna (KLAR), a relevant comparable in the BNPL space, has seen its stock price decline to around $35.66, more than 10% below its $40 IPO price, despite analysts maintaining a "Buy" consensus [10][12] Future Outlook - With high interest rates and regulatory uncertainties largely resolved, the BNPL industry is shifting focus towards diversification, with major players exploring traditional banking services [13]