Watch: Amid economic uncertainty, “buy now, pay later” has exploded among consumers. Affirm and Afterpay speak to WSJ about the industry’s growth, risks and new opportunities. https://t.co/NtfyHJYN08 ...

For some Americans, credit cards can be a trap. Those with low credit scores are more likely to hold revolving balances, carrying over debt rather than paying it off each month. But buy now, pay later is different https://t.co/cfyB23ZgcT ...

"Buy Now, Pay Later" loans are booming in Asia because of money from private credit investors. Some governments are warning consumers about high interest loans and the risks of excessive debt, while lenders say they're opening up underserved markets. https://t.co/KvfOAiBTxK ...

Banks hate “buy now, pay later” options and may penalize its users. 🔗 https://t.co/DwJyDKzfzU https://t.co/DB3fOaK3RL ...

Credit scores are supposed to start incorporating “buy now, pay later” loans this fall. The plans may already be hitting a speed bump. https://t.co/svwUuc2X0V ...

Banks don’t want you bingeing on “buy now, pay later” plans. Here's why it might actually hurt your chances of getting approved for a mortgage or credit card. https://t.co/zUm2VJS6gk ...

Core Viewpoint - Synchrony Financial is significantly enhancing its partnerships and expanding its Buy Now, Pay Later (BNPL) offerings, which is expected to drive revenue and attract new customers [1][3][4] Group 1: Partnerships and Product Offerings - Synchrony has renewed its partnership with Walmart, launching a new credit card program through collaboration with FinTech OnePay, which includes both general-purpose and private-label cards [3][4] - The company has introduced "Synchrony Pay Later" at Amazon, allowing customers to split purchases of $50 or more into installment payments, further extending its relationship with Amazon [4] - Synchrony’s alliance with PayPal now includes a physical PayPal Credit card, enabling BNPL options for everyday purchases and promotional financing [4][11] Group 2: Consumer Behavior and Market Insights - Synchrony’s CFO noted that consumers are becoming more discerning rather than pulling back on spending, particularly in big-ticket discretionary purchases [3][10] - The company tracks discretionary spending in real-time across 62 million active accounts, observing a positive trend in ticket sizes for clothing, cosmetics, and dining after three negative quarters [10] - There is a focus on attracting higher-income households, with Walmart targeting those earning $100,000 or more, which aligns with Synchrony’s new card offerings [8] Group 3: In-Store BNPL Adoption Challenges - Despite the growth in BNPL, in-store adoption remains a challenge, with BNPL purchases accounting for only 7.4% of in-store transactions during Black Friday [7] - Synchrony is confident that its retail expertise will enhance in-store adoption of BNPL options, especially with senior executives at Walmart and OnePay focused on this area [7] Group 4: CareCredit and Growth Segments - Synchrony’s CareCredit business is its fastest-growing vertical, providing promotional financing at 266,000 medical, dental, and veterinary locations, capitalizing on the emotional bond with consumers [12] - The company is expanding CareCredit into high-cost specialties, such as fertility and behavioral health, where traditional credit cards may be maxed out [12] Group 5: Investor Sentiment and Future Outlook - Investors are focused on themes related to consumer credit, growth recovery, and the significance of Synchrony’s partnerships with Amazon, Walmart, and PayPal [13] - The company aims to demonstrate that disciplined underwriting and deep merchant integrations can coexist, indicating a robust market for private-label and cobranded cards [13]

Financial Data and Key Metrics Changes - Non-GAAP EPS for Q2 was $1.02, significantly exceeding the outlook range of $0.75 to $0.85 per share [5][20] - Consolidated revenue reached $604.7 million, reflecting low single-digit growth year-over-year [7][27] - Consolidated adjusted EBITDA was $73.5 million, slightly up from $72.3 million in Q2 of the previous year [8][27] Business Line Data and Key Metrics Changes - Progressive Leasing's GMV was $413.9 million, down 8.9% year-over-year, primarily due to the Big Lots bankruptcy and tightening of approval rates [21][22] - Four Technologies delivered over 200% revenue growth, contributing significantly to overall performance [8][27] - Write-offs for Q2 were 7.5%, which is 20 basis points better than the previous year, indicating effective portfolio management [9][25] Market Data and Key Metrics Changes - E-commerce represented approximately 21% of total leasing GMV, marking an all-time high for Progressive Leasing [10] - Millennials and Gen Z account for about 70% of GMV, highlighting a shift in customer demographics [24] Company Strategy and Development Direction - The company is focused on improving results through pipeline opportunities, online platform expansion, and enhancing customer experiences [5][11] - Strategic pillars include growth, enhancement of technology, and expansion of services, with a commitment to sustainable unit economics [11][13] - The company is exploring strategic M&A opportunities while maintaining a balanced approach to capital returns [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in demand for consumer durable goods but expressed confidence in the ability to gain market share and drive sustainable growth [18][30] - The outlook for 2025 includes consolidated revenues projected between $2.45 billion and $2.5 billion, with adjusted EBITDA between $255 million and $265 million [30][31] Other Important Information - The company ended Q2 with $222 million in cash and $600 million in gross debt, resulting in a net leverage ratio of 1.38x [27][28] - The recent legislative changes are expected to positively impact cash tax outlook by allowing immediate expensing of lease merchandise [28] Q&A Session Summary Question: What is the underlying growth considering the Big Lots bankruptcy and underwriting tightening? - Management indicated that excluding Big Lots, GMV would have been up approximately 1%, and the tightening actions contributed an additional 800 to 900 basis points drag on GMV [34][36] Question: What is the outlook for the pipeline with retailers? - Management noted increased engagement with retailers, including RFIs and RFPs, indicating a positive trend in considering leasing products [44] Question: What factors influenced the guidance update for the second half of the year? - Management highlighted that while write-offs were lower than anticipated, the impact of Big Lots and portfolio size would create headwinds in the back half of the year [60][62] Question: How is the company leveraging its customer database for growth? - Management stated that there are synergies between the leasing business and the four platform, with initiatives in place to drive customer acquisition and engagement [76][78] Question: What is the competitive landscape for the subscription product in the BNPL space? - Management acknowledged strong competition but expressed confidence in the value proposition of their four plus subscription service, which has seen robust adoption [94][95]

Core Insights - Affirm Holdings, Inc. (AFRM) has established a strong technology infrastructure that supports a significant increase in transaction volume, with approximately 358,000 active merchants as of March 31, 2025 [1] Company Performance - The company's revenue is closely linked to transaction volume, which saw a 46% year-over-year increase in Q3 of fiscal 2025 [2][8] - Affirm's 0% APR monthly installment GMV increased by 44% year-over-year in Q3 fiscal 2025, although this impacts interest margins negatively [3][8] - The company is focusing on attracting higher-quality borrowers through 0% APR plans, which can enhance conversion metrics and reduce risk [3] Competitive Landscape - Key competitors in the buy now, pay later (BNPL) market include PayPal Holdings, Inc. (PYPL) and Visa Inc. (V), both of which have a strong market presence [4] - PayPal processed 6 billion transactions in Q1 2025, with net revenues rising 1% year-over-year to $7.8 billion [5] - Visa's processed transactions increased by 9% year-over-year in Q2 fiscal 2025, with total revenues advancing 9% year-over-year [6] Valuation and Estimates - Affirm's shares have increased by 104.9% over the past year, outperforming the industry growth of 42.3% [7] - The forward price-to-sales ratio for AFRM is 5.38, which is below the industry average [10] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 101.8% improvement year-over-year, with revenue growth projected at 37% [12]

Core Insights - Sezzle Inc. has been recognized on CNBC's World's Top Fintech Companies 2025 list, highlighting its innovative and high-performing status in the fintech sector [1][4] - The company's stock has surged over 900% in the past year, making it one of the best-performing public companies of 2025, with Q1 results exceeding revenue and profit expectations [2] - Sezzle's CEO emphasized the company's ability to scale profitably while delivering value to consumers and shareholders, reflecting its commitment to a purpose-driven business model [3] Financial Performance - Sezzle's stock increased by over 900% in the past year, reaching record highs [2] - The company surpassed revenue and profit expectations in Q1, driven by high-retention subscription offerings and strong consumer engagement [2] - Full-year guidance has been raised, indicating confidence in continued growth [2] Recognition and Awards - Sezzle's inclusion in CNBC's global fintech list is a recognition of its mission and momentum [3] - The company has received accolades for its workplace culture and customer experience in 2025 [3] - Sezzle has achieved several milestones, including a partnership with the Minnesota Timberwolves and the expansion of its in-app Marketplace [5] Strategic Initiatives - Sezzle has formed a partnership with WebBank to broaden its reach and inclusivity [5] - The company focuses on building products that empower consumers and promote responsible spending [5] - Sezzle's payment platform enhances consumers' purchasing power through point-of-sale financing options [7]