Core Insights - Affirm reported a solid fiscal first quarter, indicating strong performance in key financial metrics [1] Financial Performance - The company demonstrated significant growth in revenue, with a year-over-year increase of 40% [1] - Affirm's net loss for the quarter was reported at $50 million, which reflects a decrease compared to the previous year [1] - The adjusted EBITDA margin improved, showcasing operational efficiency [1] User Engagement - Active users on the platform increased by 25% year-over-year, highlighting growing consumer adoption [1] - The total number of transactions processed rose significantly, indicating robust demand for Affirm's services [1] Market Position - Affirm continues to strengthen its position in the buy now, pay later (BNPL) market, competing effectively against other players [1] - The company is focusing on expanding partnerships with various merchants to enhance its service offerings [1]

Core Insights - Affirm Holdings reported strong fiscal Q1 earnings, with a profit of 23 cents per share, compared to a loss of 31 cents per share a year earlier, and an adjusted operating margin of 28.3%, up from 19% [2][3] - Revenue increased by 34% to $933 million, surpassing estimates of $883 million, while gross merchandise volume rose 42% to $10.8 billion, driven by the new debit card [3][4] - The company has seen a significant increase in active customers, reaching 24.1 million, up from 19.5 million a year ago [4] Financial Performance - Affirm's revenue growth was bolstered by the adoption of the Affirm Card, which now has 2.8 million users, representing about 11.6% of active consumers [4] - The company predicts fiscal Q2 revenue of $1.045 billion, aligning with market expectations [7] - Affirm's revenue mix is shifting towards more Buy Now, Pay Later (BNPL) plans with no interest, which generally have lower margins but attract higher credit quality consumers [8] Market Position and Competition - Affirm is a leading provider in the BNPL sector, competing with companies like Klarna, Sezzle, and PayPal [5][9] - The company has established partnerships with major retailers, including Amazon and Shopify, and has extended its relationship with Amazon for five more years [11] - A new partnership with Apple could significantly impact Affirm's growth in 2026, as BNPL plans are now available for in-store purchases at Apple stores [10] Stock Performance - Following the earnings report, Affirm's stock surged over 10% to $72.60, despite previous declines due to broader economic concerns [6] - The stock has an IBD Composite Rating of 81, indicating strong growth potential, and an Accumulation/Distribution Rating of B-minus, suggesting more funds are buying than selling [12]

Stock Performance - Take-Two Interactive shares are falling due to the delayed release of Grand Theft Auto 6 [1] - Airbnb shares are rising following mixed third-quarter results but positive revenue guidance [1] - Affirm shares are jumping after exceeding earnings and revenue expectations [1] - Block shares are significantly lower after missing earnings and revenue expectations for the fourth consecutive quarter [2] Industry Trends - The fintech sector is experiencing volatility, with some firms exceeding expectations while others are underperforming [1][2] - EV sales are expected to decline following the expiration of government tax credits [3] Company Strategy - Ford is reportedly considering discontinuing the electric version of its F-150 pickup truck [3]

Core Insights - Affirm experienced significant growth in 0% APR installment volumes, which increased by 74% as over 40,000 merchants offered interest-free options, enhancing value for both merchants and consumers [1][7] - The company reported a 42% growth in gross merchandise volume (GMV), reaching $10.8 billion, with nearly half of this growth attributed to direct merchant integrations and a third from direct-to-consumer channels [1][3] - Affirm's partnership with Amazon has been extended for an additional five years, solidifying a key relationship for future growth [2] Financial Performance - Gross merchandise volume rose 42% to $10.8 billion, while revenue increased by 34% to $933 million [3] - Direct-to-consumer GMV surged by 53% to $3.2 billion, driven by a 135% increase in Affirm Card volume to $1.4 billion [5] - Active consumers grew by 24% to 24.1 million, with transactions per active consumer rising from 5.1 to 6.1 [9] Market Expansion - The number of merchants increased by 30% to 419,000, indicating strong momentum in the market [8] - Wallet partners contributed over $7 billion in GMV, reflecting a nearly 70% increase [8] - Affirm's funding capacity rose to $26.6 billion, supporting over $60 billion in annual GMV, with projections for fiscal 2026 exceeding $47.5 billion [9] Consumer Insights - Affirm's consumer base is healthy, with low delinquency and default rates, tracking to less than 1% of GMV for recent Pay in 4 loans [8] - The company is focusing on expanding access to younger consumers and those typically overlooked by traditional credit systems [6]

Core Insights - Affirm Holdings reported a revenue of $933.34 million for the quarter ended September 2025, marking a 33.6% increase year-over-year and exceeding the Zacks Consensus Estimate of $885.01 million by 5.46% [1] - The company achieved an EPS of $0.23, a significant improvement from -$0.31 in the same quarter last year, resulting in an EPS surprise of 109.09% compared to the consensus estimate of $0.11 [1] Financial Performance Metrics - Gross Merchandise Volume (GMV) reached $10,800 billion, surpassing the average estimate of $10,384.1 billion [4] - Active Consumers remained stable at 24, matching the average estimate [4] - Transactions per Active Consumer were consistent at 6, aligning with the average estimate [4] - Total Transactions amounted to 41, exceeding the average estimate of 36 [4] - Revenue from the Merchant network was $251.15 million, up 36.2% year-over-year, and above the average estimate of $247.86 million [4] - Revenue from the Card network was $69.33 million, reflecting a 46% increase year-over-year, surpassing the average estimate of $65.66 million [4] - Revenue from Interest income was $454.12 million, a 20.4% year-over-year increase, exceeding the average estimate of $435.9 million [4] - Revenue from Servicing income was $39.69 million, up 52.8% year-over-year, and above the average estimate of $36.98 million [4] - Revenue from Gain on sales of loans was $119.05 million, representing an 87.2% year-over-year increase, exceeding the average estimate of $94.11 million [4] Stock Performance - Affirm Holdings' shares have returned -5% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Affirm Holdings reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing a significant improvement from a loss of $0.31 per share a year ago, resulting in an earnings surprise of +109.09% [1] - The company achieved revenues of $933.34 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.46% and reflecting a year-over-year increase from $698.48 million [2] - Affirm Holdings has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $1.04 billion, while the estimate for the current fiscal year is $0.86 on revenues of $3.99 billion [7] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Industry Context - The Internet - Software industry, to which Affirm Holdings belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - The discussion included a positive sentiment towards the performance of Affirm, indicating a favorable quarterly result [1] - Philip, a company in the mid-stream refining space, was mentioned as a potential investment opportunity worth considering [1]

[music] Welcome back to fast money earnings alert on a firm shares of the buy now pay later uh company spiking 11% after hours the company delivering earnings and revenues that exceeded Wall Street estimates the conference call is underway CNBC's Mackenzie Sagalas got the latest Mac. >> Hey Mel so firm shares are rallying after hours as transaction volume jumped 42% in the quarter. CEO Max Lechin opened the earnings call though by pointing to their new 5-year deal with Amazon as a major win.Indeed, a key mo ...

Core Insights - A firm’s shares surged 11% after hours due to earnings and revenues surpassing Wall Street estimates [1] - The company reported a 42% increase in transaction volume for the quarter, indicating strong business performance [1][2] - A significant highlight was the new 5-year partnership with Amazon, which CEO Max Lechin emphasized as a major achievement [1] Financial Performance - Earnings more than doubled expectations, showcasing a strong revenue beat [3] - Transaction volume reached a new high despite limited seasonal lift, reflecting robust demand [3] - Card volume increased by 135% year-over-year, indicating effective growth strategies [3] User Engagement - Active users have now reached 2.8 million, demonstrating an expanding customer base [3] - The demand for 0% loans has become the fastest-growing product for the company, suggesting a shift in consumer preferences [2]

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]