Core Insights - Affirm Holdings Inc. reported fiscal Q2 2026 earnings with revenue of $1.12 billion, exceeding analyst expectations by approximately 5.7% [1] - The company experienced a significant year-over-year revenue increase, driven by consumer adoption of flexible payment options amid inflation [2] - Affirm's gross merchandise volume (GMV) surged 36% year-over-year, indicating growth in e-commerce and retail despite challenges [2] Financial Performance - The Affirm Card's GMV increased by 160% year-over-year, supported by a 121% rise in active cardholders [3] - Affirm's earnings per share (EPS) reached $0.37, surpassing consensus estimates of $0.27 by 37% [3] - The company continues to report net losses on a GAAP basis, typical for high-growth fintech firms, as it prioritizes investments in technology [4] Future Outlook - Affirm projects GMV growth of 30% for Q3 and 25% for Q4 [4] - Revenue-less-transaction-costs (RLTC) margins are expected to remain slightly above 4% for the second half of the fiscal year, indicating confidence in profitability [5] - CEO Max Levchin emphasized opportunities for integrating Affirm's payment solutions across various platforms [5] Market Reaction - Following the earnings report, Affirm's shares fell 4.41% in after-hours trading, closing at $59.50, reflecting broader market caution [6] - Analysts attributed the stock pullback to profit-taking rather than fundamental weaknesses, highlighting strong execution [7] - Goldman Sachs raised its price target to $95, citing the Affirm Card's momentum as a key driver for long-term revenue diversification [7] Analyst Sentiment - Wells Fargo noted the 36% GMV expansion as a sign of resilience in a softening retail environment, forecasting full-year fiscal 2026 revenues at $4.05 billion, a 25.7% increase [8] - Deutsche Bank highlighted potential upside from partnerships while acknowledging macroeconomic risks, maintaining a buy rating [9] - Wall Street's consensus remains bullish, with a median price target of $95 across 38 analysts, suggesting significant upside potential [9]

AI isn't just transforming tech. It's making its mark across industries. One industry already seeing change.Payments and retail. We've seen the likes of Walmart, Shopify, Etsy, and Lowe's partnering with OpenAI to integrate AI tools into the shopping experience. Let's bring in a key name in this sector, Max Lechin, the CEO and founder of a firm.He also co-founded PayPal and he is a prominent venture capitalist through his firm Sci-Fi VC. Max, so great to uh spend some time with you as always. Thank you for ...