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Core Insights - The company reported a consolidated GMV growth of 12.1% in 2025, driven by a significant increase in the Four Technologies platform, which grew approximately 144% [2][6] - Despite a decline in leasing GMV of 8.6% for the full year due to external pressures, underlying leasing GMV showed mid-single-digit growth when adjusted for specific factors [3][4] - The company successfully navigated a challenging retail environment and met or exceeded its 2025 guidance, with a focus on portfolio performance and strategic acquisitions [4][5] Financial Performance - The company ended 2025 with approximately $659 million in available liquidity and provided guidance for 2026, projecting revenues between $3.0 billion and $3.1 billion, adjusted EBITDA of $320 million to $350 million, and non-GAAP EPS of $4.00 to $4.45 [5][25] - Fourth-quarter consolidated revenue from continuing operations declined 5.2% year-over-year to $574.6 million, while consolidated gross margin improved by 284 basis points to 36.3% [13] - The fourth-quarter adjusted EBITDA was $61.5 million, exceeding prior outlooks, and the adjusted EBITDA margin for the year was 11.4%, within the company's target range [11][13] Business Segments - Within Progressive Leasing, GMV fell 10.6% year-over-year, primarily due to a large partner bankruptcy and tighter approval processes, but underlying GMV grew 1% when excluding specific impacts [9][12] - The Four Technologies platform achieved about 170% revenue growth in 2025, marking its ninth consecutive quarter of triple-digit growth [7] - The MoneyApp and Four platforms contributed approximately $45 million in incremental leasing GMV in 2025, reflecting successful cross-selling efforts [1][6] Strategic Actions - The company completed the acquisition of Purchasing Power in January 2026, which is expected to enhance its growth platform and diversify its offerings [5][14] - Management emphasized portfolio repositioning and capital allocation, including the sale of the Vive portfolio to focus on higher-return opportunities [14] - The company plans to reduce net leverage from approximately 2.5 times post-acquisition to a long-term target of 1.5 to 2 times [15][16] 2026 Outlook - The company anticipates a challenging consumer environment in 2026, with expectations for modest growth and further gross margin expansion [17][18] - For Purchasing Power, projected revenue for 2026 is between $680 million and $730 million, with an adjusted EBITDA expectation of $50 million to $60 million [19] - Management expects continued write-offs to remain within the 6% to 8% target range, with no significant changes in decision-making posture anticipated [20][21]

Group 1: Financial Insights - Financial statistics provide insights into personal finance strengths and areas for improvement, highlighting common financial mistakes and regrets [1] - Financial influencer Humphrey Yang shared significant money statistics related to car loans, bank deposits, stock market returns, and homeownership, along with tips for better financial decisions [2] Group 2: Underwater Car Loans - In Q2 2025, 26.6% of trade-in vehicles had underwater car loans, with the average borrower being $6,754 in debt, attributed to high car prices, longer loan terms, and depreciation [3] - Yang recommends purchasing used cars to avoid depreciation and suggests the 20/4/10 rule for car financing, which includes a 20% down payment, a four-year loan term, and limiting car payments to 10% of monthly pre-tax income [4] Group 3: Buy Now, Pay Later Plans - Morgan Stanley reported an average buy now, pay later balance of $760, with this payment method being particularly popular among six-figure earners [5] - While convenient, buy now, pay later services can lead to overspending and regrets, and Yang advises against purchasing unaffordable items, emphasizing that even interest-free plans constitute debt [6] Group 4: Bank Deposits and Savings - As of 2023, deposits at U.S. commercial banks totaled $18 trillion, with many individuals earning minimal interest on their savings [7] - Yang suggests using high-yield savings accounts for emergency funds, illustrating that $5,000 in a regular savings account at 0.40% yields only $20 in interest after one year, compared to $175 at a 3.50% APY [8] Group 5: Emergency Expense Affordability - Approximately 42% of Americans lack the cash to cover an unexpected $1,000 expense, increasing their risk of debt from emergencies such as medical bills or car repairs [8]

Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the stocks on Jim Cramer’s recent game plan. Cramer was bullish on the company’s upcoming quarter, as he remarked: And then there’s Affirm, which I think will put up a fantastic quarter, and once again, the bears will be put on the run by CEO Max Levchin. I think this buy now, pay later kingpin should be bought, yes, bought ahead of the quarter. Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels Affirm Holdings, Inc. (NA ...

Group 1 - Affirm is applying for a bank charter in Nevada to establish Affirm Bank, which will be a Nevada-chartered industrial loan company [9] - The establishment of a banking subsidiary is expected to strengthen and diversify Affirm's platform, allowing the company to introduce new financial products and services over time [4][3] - Affirm currently offers services like a debit card and buy now, pay later (BNPL) financing, and collaborates with banks such as Cross River Bank and Celtic Bank for its lending services [5] Group 2 - The move into banking is part of a broader trend among fintech companies, with competitors like Klarna and PayPal also seeking to enter the banking space [6][7] - Klarna has positioned itself as a "global digital bank" and has introduced deposit accounts and its own debit card [6] - The application for a bank charter by Affirm reflects a growing interest among BNPL firms to expand their service offerings beyond traditional lending [3][9]

Core Insights - Affirm has partnered with Esusu to allow renters to pay their rent in two installments, providing a flexible payment option for managing monthly expenses [1][2] - The program will feature 0% interest and no late fees, currently in a pilot phase without a confirmed launch date [2] - Esusu's platform utilizes rental data to build credit and enhance financial stability, covering 5 million units and reaching 12 million people, processing $100 billion in annual gross lease volume [3] Company Developments - Esusu recently raised $50 million in a Series C funding round, which will be used to scale its payment method, Esusu Pay [4] - BLDG Partners, a real estate operator collaborating with Esusu, noted that the offering provides flexibility to residents, reducing financial strain [5] - Esusu has also partnered with Zillow to launch CreditClimb, a tool that allows renters to build credit through rent payments [5] Market Trends - Affirm reported a 30% increase in its merchant count, reaching 419,000, indicating strong demand for 0% installment payment options among various vendors [6]

Core Insights - Afterpay positions its services as an alternative to credit cards, highlighting the growing credit card debt in the U.S., which surpassed $1.2 trillion in 2024, with an average balance of $5,300 per credit cardholder [3][4] Group 1: Afterpay's Positioning and Customer Behavior - Afterpay emphasizes its safeguards to prevent customers from falling into debt spirals associated with traditional credit card usage [4] - The company reported that 96% of U.S. customers who used its BNPL services for Black Friday and Cyber Monday purchases repaid their financing early or on time [7] - Additionally, 98% of customers had not incurred late fees through the third quarter of the previous year, indicating responsible spending behavior [7] Group 2: Market Trends and Consumer Data - The average annual dollar value of a BNPL loan increased from $745 to $848 between 2022 and 2023 [5] - BNPL spending rose by 9% year-over-year to $10.1 billion during the holiday season from November 1 to December 1, according to Adobe analysis [6] - Klarna Group reported a 45% increase in spending across its lending services during the same holiday period [6] Group 3: Consumer Credit Profiles - Nearly two-thirds of U.S. consumers using BNPL transactions borrow from multiple providers simultaneously, with 61% having subprime credit scores [5]

Core Insights - Affirm is piloting a program to help renters split their monthly rent into two equal payments every two weeks at 0% APR, in partnership with Esusu [1][3] - The program aims to provide a flexible option for managing housing expenses, aligning payments with biweekly paychecks [3] - Affirm underwrites each application individually, ensuring that only those who can responsibly afford repayments are approved [5] Group 1: Program Details - The pilot program allows renters to make payments without hidden fees, late fees, or compounding interest [1] - Esusu assists renters in building credit by reporting on-time rent payments to major credit bureaus [2] - The official rollout date of the pilot program has not been confirmed as it is still in early stages [8] Group 2: Industry Perspectives - Analysts suggest that this program could be beneficial for those on tight budgets, but caution that it is too early for a definitive assessment [8] - Concerns have been raised about the potential risks associated with "buy now, pay later" (BNPL) services, particularly if consumers manage multiple loans simultaneously [11] - The payment method is linked to a debit card or checking account, emphasizing the importance of having sufficient funds to cover payments [12]

Company Performance - Lemonade experienced a remarkable year with a 95% stock gain, attributed to strong growth and profitability [1] - The company's in-force premium grew by 30% year over year, accelerating from a previous growth rate of 24% [3] - Lemonade's gross loss ratio decreased from 77% to 67%, indicating a significant improvement and potential for long-term profitability [4] Financial Metrics - Lemonade's gross profit more than doubled year over year, and the company achieved positive adjusted free cash flow [5] - The current market capitalization of Lemonade is $6.1 billion, with a stock price range between $24.31 and $88.88 over the past year [5] Industry Trends - The appetite for speculative stocks increased in 2025, benefiting companies like Lemonade [2] - Klarna, another financial services company, is predicted to have significant growth in 2026, with a customer base expanding over 30% annually and a revenue increase of 51% year over year in the U.S. [6][7] - Klarna is targeting a large portion of commerce volume currently flowing through debit and credit cards, which presents a substantial opportunity for growth [9]

Core Viewpoint - Affirm Holdings Inc's stock is experiencing volatility in response to President Trump's proposal to cap credit card interest rates at 10%, which has implications for the consumer credit market [2][3]. Group 1: Market Reaction and Implications - The proposed cap on credit card rates could disrupt traditional credit issuers, potentially benefiting Affirm by positioning it as a consumer-friendly alternative to revolving credit [3]. - Following the initial rise in stock price due to the proposal, Affirm's shares have declined as the market assesses the long-term effects of the policy change [2][3]. Group 2: Technical Indicators - Affirm's stock is trading 0.2% above its 20-day simple moving average (SMA) and 0.3% above its 100-day SMA, indicating a stable short-term trend [4]. - Over the past year, shares have increased by 38.89%, reflecting strength in the longer-term trend [4]. Group 3: Analyst Predictions and Valuation - Analysts predict a significant earnings surge, with the next earnings report scheduled for February 5 [6]. - The stock carries a Buy Rating with a consensus price target of $84.56, supported by an expected earnings growth of 165% [7]. - Affirm's valuation shows a P/E ratio of 110.7x, indicating a premium valuation despite strong growth expectations [9]. Group 4: Benzinga Edge Rankings - Affirm is classified as a "High-Flyer" with strong momentum (score: 80) and exceptional growth potential (score: 98), but a low value score (17) suggests it is priced for perfection [8]. Group 5: Key Price Levels and Estimates - Key resistance for the stock is at $79, while key support is at $65.50 [9]. - EPS estimate is 61 cents, up from 23 cents year-over-year, and revenue estimate is $1.06 billion, up from $866.38 million year-over-year [9]. Group 6: ETF Exposure - Affirm has significant weight in various ETFs, meaning substantial inflows or outflows could lead to automatic buying or selling of the stock [11].