Financial Data and Key Metrics Changes - The company reported a strong quarter with significant growth, maintaining a revenue-less transaction cost (RLTC) target of 4% for fiscal 2026, indicating a focus on maximizing growth and profitability [22][101] - The operating margin guidance has been raised to over 7.5%, up from the previous guidance of more than 6%, attributed to growth rather than cost-cutting measures [70][72] Business Line Data and Key Metrics Changes - The company highlighted that approximately half of the GMV growth came from direct point-of-sale merchant integrations, with a third from direct-to-consumer channels, indicating a balanced growth strategy [51] - The 0% APR loans have been a significant growth driver, with expectations for continued strong performance in this product category [75][61] Market Data and Key Metrics Changes - The company has seen healthy consumer spending trends, particularly in sectors like sporting goods and outdoor products, with 30-day delinquency rates remaining stable [26][27] - The company is expanding its partnerships with payment service providers (PSPs) to enhance integration speed and market reach, which is crucial for growth in various markets [15][33] Company Strategy and Development Direction - The company has extended its agreement with Amazon for an additional five years, reflecting a long-term commitment to serving customers and enhancing its market position [5][46] - The focus on cash flow underwriting is aimed at capturing younger consumers and those overlooked by traditional credit systems, which is expected to drive growth in the Affirm Card segment [38][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the consumer base, noting that even during economic uncertainties, repayment rates have remained stable [28][29] - The company is committed to maintaining a strong focus on direct-to-consumer products and enhancing consumer engagement through promotional events and new features [52][60] Other Important Information - The company is actively monitoring macroeconomic trends and adjusting its strategies accordingly to ensure resilience in its operations [29][92] - The management emphasized the importance of building honest financial products that improve lives, indicating a long-term vision for product development [80] Q&A Session Summary Question: Thoughts on funding market execution amidst challenges - Management highlighted their strong execution in the ABS market and capital markets, attributing it to the unique value of their products and strong investor relationships [10][11] Question: Insights on PSP relationships and strategy - Management discussed the importance of PSPs for integration speed and market access, emphasizing their role in expanding merchant partnerships [14][15] Question: Trends in RLTC and future guidance - Management maintained a focus on 4% as an upper bound for RLTC, indicating a long-term strategy to maximize growth and profitability [21][23] Question: Consumer spending environment and delinquency trends - Management confirmed that consumer spending remains healthy, with stable delinquency rates, indicating effective underwriting practices [26][27] Question: Economics of PSPs versus direct integrations - Management noted that PSP agreements are typically bespoke and vary significantly, impacting their international expansion strategy [32][33] Question: Factors driving Affirm Card member growth - Management indicated that cash flow underwriting is beneficial for younger consumers, which is expected to drive growth in card usage [37][40] Question: Insights on Amazon agreement extension - Management expressed satisfaction with the long-term commitment to Amazon, focusing on delivering value to consumers [46][47] Question: Operating margins and expense expectations - Management attributed improved operating margins to growth rather than cost-cutting, with a focus on revenue growth driving operating income [71][72] Question: Competitive environment and capital market conditions - Management noted that the capital markets remain constructive for their assets, with a focus on maintaining strong investor relationships [104][106]