Despite a temporary revenue dip (–11.8% YoY) due to a travel client restructure, WEX is doubling down on AP automation and expanding embedded payments into new verticals — poising this segment for future growth.WEX is transforming from a legacy fuel card provider into a diversified FinTech infrastructure company, now operating in three segments: Mobility, Benefits, and Corporate Payments.When economic uncertainty reigns, handling surprises takes an agile business strategy. By completing this form, you agree ...

Core Viewpoint - Affirm Holdings, Inc. reported a fiscal third-quarter 2025 earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.09 per share and significantly improving from a loss of $0.43 per share in the prior-year quarter [1] Financial Performance - Total revenues increased by 36% year over year to $783.1 million, slightly missing the consensus mark by 0.1% but within management's expectations of $755-$785 million [1] - Gross Merchandise Value (GMV) reached $8.6 billion, climbing 36% year over year, exceeding both management's expectations of $8-$8.3 billion and the Zacks Consensus Estimate of $8.1 billion [3] - Total transactions surged by 45.6% year over year to 31.3 million, driven by a significant increase in repeat customer transactions [4] - Servicing income rose by 27% year over year to $32.1 million, beating the consensus mark of $31.3 million [4] - Interest income increased by 28% year over year to $402.7 million, although it fell short of the Zacks Consensus Estimate of $414.4 million [4] Revenue Breakdown - Merchant network revenues improved by 34.3% year over year to $214 million, surpassing the consensus mark of $199.5 million [5] - Card network revenues surged by 64.2% year over year to $58.6 million, attributed to higher usage of Affirm Card and virtual cards, exceeding the consensus estimate of $46.4 million [5] Expense and Losses - Total operating expenses rose by 7.4% year over year to $791.5 million, driven by increased costs in various areas including loan purchase commitments and technology expenses [6] - Provision for credit losses escalated by 20.3% year over year to $147.3 million [6] - Sales and marketing expenses decreased by 44.3% year over year [6] Profitability Metrics - Adjusted operating income totaled $173.7 million, more than doubling year over year, with an adjusted operating margin improving by 860 basis points to 22.2%, surpassing management's estimated range of 20-22% [7] - Affirm's net income was $2.8 million, a significant recovery from a net loss of $133.9 million in the prior-year quarter [7] Financial Position - As of March 31, 2025, Affirm had cash and cash equivalents of $1.4 billion, a 33.4% increase from the fiscal 2024-end figure [8] - Total assets rose by 9.6% year over year to $10.4 billion [8] - Funding debt amounted to $1.9 billion, up 3.9% from June 30, 2024 [8] - Total stockholders' equity increased by 5.2% to $2.9 billion [8] Cash Flow - Affirm generated $210.4 million of net cash from operations during the March quarter, reflecting a 1.1% year-over-year increase [9] Future Guidance - For the fourth quarter of fiscal 2025, Affirm forecasts GMV in the range of $9.4-$9.7 billion, up from the previous estimate of $9-$9.3 billion [10] - Revenues are anticipated to be between $815-$845 million, higher than the earlier guidance of $810-$840 million [10] - For fiscal 2025, management anticipates GMV to be in the range of $35.7-$36 billion, an increase from the earlier guidance of $34.74-$35.34 billion [12] - Revenues for fiscal 2025 are expected to be in the range of $3.163-$3.193 billion, up from the prior outlook of $3.13-$3.19 billion [12]

Core Viewpoint - Affirm Holdings, Inc. is expected to report its third-quarter fiscal 2025 results on May 8, 2025, with a projected loss of 8 cents per share on revenues of $783.1 million, indicating significant year-over-year improvements in both earnings and revenues [1][2]. Financial Performance - The fiscal third-quarter earnings estimate has improved by 2 cents over the past month, reflecting an 81.4% year-over-year improvement [1]. - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 35.9% [1]. - For the current fiscal year, the revenue estimate is pegged at $3.2 billion, implying a rise of 37.1% year over year, while the EPS consensus is a loss of 6 cents, indicating a 96.4% improvement year over year [2]. Earnings Expectations - Affirm is predicted to beat earnings estimates due to a positive Earnings ESP of +63.27% and a Zacks Rank of 1 (Strong Buy) [3]. - The company has consistently beaten consensus estimates for earnings in the last four quarters, with an average surprise of 84.1% [2]. Revenue Drivers - Merchant network revenues are expected to reach $199.5 million, indicating a 25.2% rise from the prior-year quarter [5]. - The Gross Merchandise Volume (GMV) is anticipated to grow by 29.2% year-over-year, with management estimating it to be in the range of $8-$8.3 billion [6]. - Active consumers are projected to grow by 17.4% year-over-year, and transactions per active consumer are expected to rise by 16.5% [7]. Card Network and Interest Income - Card network revenues are expected to improve by 30% year-over-year, while interest income is pegged at $414.4 million, indicating a 31.3% year-over-year rise [8]. - Servicing income is estimated to reach nearly $31.3 million, reflecting a 23.6% increase from the year-ago quarter [9]. Transaction Costs - The company anticipates higher transaction costs in the range of $415-$430 million for the quarter [9]. Stock Performance - Affirm's stock has increased by 38.6% over the past month, outperforming the industry growth of 19.4% and significantly surpassing the S&P 500's increase of 12.3% [10]. Valuation - Despite the recent stock price appreciation, Affirm's valuation remains relatively cheap at 4.34X forward 12-month sales, below the industry average of 5.12X [13]. Competitive Landscape - The delay of Klarna's IPO has reduced competitive pressure in the BNPL space, benefiting Affirm as one of the few publicly traded players [18]. - Concerns regarding Walmart's relationship with Affirm are considered overblown, as Walmart contributed only 5% to Affirm's GMV [18]. Long-term Outlook - Affirm is expanding internationally and diversifying its offerings, which positions it to compete with major players like Visa and PayPal [19]. - The company is focusing on profitability by tightening underwriting standards and improving margins, which is expected to bolster investor confidence [19].