Financial Data and Key Metrics Changes - The company reported a strong quarter with significant growth, maintaining a revenue-less transaction cost target of 4% for fiscal 2026 [23][24] - The operating margin guidance for the fiscal year has been increased to over 7.5%, up from the previous guidance of over 6% [73][75] Business Line Data and Key Metrics Changes - The growth in GMV (Gross Merchandise Volume) was driven by direct point-of-sale merchant integrations and direct-to-consumer channels, with half of the growth coming from the former and one-third from the latter [52][78] - The 0% APR loans have been highlighted as the fastest-growing loan product, indicating a strong consumer preference for this offering [78] Market Data and Key Metrics Changes - The company has successfully extended its partnership with Amazon for an additional five years, indicating strong market positioning and consumer trust [5][47] - The company is experiencing healthy consumer spending trends, particularly in sectors like sporting goods and outdoor products [27][29] Company Strategy and Development Direction - The company is focusing on expanding its relationships with payment service providers (PSPs) to enhance integration speed and market reach [16][34] - There is a strategic emphasis on cash flow underwriting to better serve younger consumers and those with limited credit histories, which is expected to drive growth [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer market, noting that delinquencies remain low even among less affluent consumers [29][30] - The company is committed to maintaining a long-term focus on growth and profitability, with a target range of 3-4% for revenue-less transaction costs in the future [23][103] Other Important Information - The company is actively exploring new verticals, such as services and elective medical, with a robust process for adapting underwriting models to new data [92][94] - The recent promotional event, referred to as "Zero Days," was successful in driving consumer engagement and merchant participation [60][101] Q&A Session Summary Question: Thoughts on the funding market and execution - Management highlighted their strong execution in the ABS market and the importance of asset performance in driving investor appetite [10][11] Question: PSP strategy and future expectations - Management emphasized the importance of PSP relationships for integration speed and market access, with ongoing efforts to expand these partnerships [15][16] Question: Trends in consumer spending and delinquency rates - Management noted that consumer spending remains healthy, with low delinquency rates observed even among government employees during economic challenges [27][29] Question: Insights on the Amazon partnership - The extension of the Amazon agreement was seen as a significant long-term commitment, reflecting mutual satisfaction with the service provided [47][48] Question: Operating margins and expense expectations - Management attributed the increase in operating margins to growth rather than cost-cutting, with a focus on revenue growth driving operating leverage [75][76] Question: Competitive environment and market positioning - Management indicated that the competitive landscape remains dynamic, with a focus on product quality and execution as key differentiators [106][108]