Shares of Affirm Holdings Inc AFRM spiked in early trading on Friday after the company reported upbeat fiscal second-quarter results.The company released its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.JMP Securities On Affirm HoldingsAnalyst David Scharf reiterated a Market Outperform rating, while raising the price target from $78 to $85.Affirm Holdings reported its fiscal second-quarter revenues and earnings significantly ahead of expectations, Scharf said in a ...

Max Levchin, co-founder of PayPal and chief executive officer of financial technology company Affirm, arrives at the Sun Valley Resort for the annual Allen & Company Sun Valley Conference, in Sun Valley, Idaho.Affirm shares jumped 16% Friday after the buy now, pay later company topped Wall Street's fiscal second-quarter revenue forecast and posted a surprise profit during a strong holiday shopping period.Earnings came in at 23 cents per share, ahead of the 15-cent per share loss expected by analysts polled ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - A strong holiday shopping season and the popularity of buy now, pay later (BNPL) options contributed to Affirm Holding's growth in gross merchandise volumes (GMV) and active consumer base [1] Financial Performance - Affirm's second quarter GMV increased by 35% to $10.1 billion, with 0% APR monthly installment GMV growing by 70% [2] - Revenues rose by 47% to $866 million, with the company nearing its target date for positive operating income [3] - GMV growth by product category included a 40% increase in general merchandise and a 36% increase in electronics [4] Consumer Engagement - Active consumers increased by 23% to 21 million, with transactions per active consumer rising 22% year over year to 5.3 [2] - The Affirm Card GMV reached $845 million, up 113% year over year, with active consumers increasing by 136% to 1.7 million [6] Promotional Strategies - The growth in 0% APR offerings was driven by merchants seeking promotional strategies during the holiday season, which included channeling promotional dollars into reduced APRs [5] - App-started 0% APR GMV grew by 260%, indicating significant potential for further engagement through the card [7] Credit Metrics - The 30-plus-day delinquency rate remained stable at 2.5%, consistent with pre-pandemic levels, showing improvement from the previous quarter [7] Integration and Growth - Wallet integrations are progressing well, contributing positively to transaction metrics and credit quality [8][9]

Financial Data and Key Metrics Changes - The company reported a strong quarter with active customers up 23% year-over-year, marking four consecutive quarters of accelerating growth [68] - The company achieved an RLTC margin above the previously guided range of 3% to 4%, indicating effective management of loan sales and securitization [20][38] Business Line Data and Key Metrics Changes - The increase in zero percent loans is part of a broader strategy to attract consumers by offering interest-free financing, which has been well-received by merchants and consumers alike [12][14] - The company is focusing on expanding its direct-to-consumer offerings, which has contributed significantly to the increase in active consumers [69] Market Data and Key Metrics Changes - The company is experiencing strong demand in the UK market, with significant interest from merchants for longer-term loans, indicating a potential for market share growth [50][51] - The integration of wallet partners is showing positive metrics, contributing to higher transaction rates and improved credit quality [43][45] Company Strategy and Development Direction - The company is committed to maintaining a long-term RLTC margin between 3% and 4%, while also investing in zero percent loan programs to enhance consumer reach [30][32] - The focus on AI and machine learning is aimed at improving underwriting processes and operational efficiency, allowing for better credit management without increasing headcount [81][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current economic environment, noting that consumers are healthy and actively shopping, which supports continued lending [130] - The company is prepared to adapt to changing macroeconomic conditions while maintaining its core values and commitment to consumer-friendly practices [134][135] Other Important Information - The company is actively working on enhancing its app to better showcase zero percent deals, which is expected to drive further consumer engagement [97][100] - The partnership with Sixth Street is expected to ramp up in the second half of 2025, indicating a strategic move to scale capital programs [58][65] Q&A Session Summary Question: About the increase in zero percent loans and strategy behind it - Management indicated that the increase in zero percent loans is a strategic initiative to attract more consumers and is being deployed across various merchant partnerships [12][14] Question: Regarding the RLTC margin and reinvestment strategy - Management confirmed that the excess RLTC will be reinvested into zero percent loans, which may slightly dilute margins but is expected to enhance overall network growth [20][22] Question: Update on UK launch and market share potential - Management noted that while it is early to predict market share in the UK, there is significant demand for their diverse loan offerings, which positions them well against incumbents [50][51] Question: Funding mix and future partnerships - Management expressed pride in their capital market progress and indicated that while they will continue to explore partnerships, they do not expect to replicate the scale of the Sixth Street partnership in the near term [58][60] Question: Customer growth and marketing expenses - Management highlighted that the increase in active customers is a result of focused efforts on direct-to-consumer strategies, and marketing expenses are expected to remain consistent moving forward [73][76] Question: AI utilization and impact on headcount - Management confirmed that AI has been integral to their operations since inception, enhancing productivity and allowing for a more specialized workforce without increasing overall headcount [81][84] Question: Durability of funding cost improvements - Management acknowledged that while current market conditions are favorable, their strong credit performance has established durable relationships with capital partners [157][158] Question: Insights on the Affirm card and customer relationships - Management noted that the Affirm card is attracting their best customers, and there is significant potential for expanding services to those who trust them with direct deposits [163][164]

For the quarter ended December 2024, Affirm Holdings (AFRM) reported revenue of $866.38 million, up 46.6% over the same period last year. EPS came in at $0.23, compared to $0.04 in the year-ago quarter.The reported revenue represents a surprise of +7.74% over the Zacks Consensus Estimate of $804.18 million. With the consensus EPS estimate being -$0.20, the EPS surprise was +215.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Affirm Holdings (AFRM) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of a loss of $0.20 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 215%. A quarter ago, it was expected that this operator of digital commerce platform would post a loss of $0.36 per share when it actually produced a loss of $0.31, delivering a surprise of 13.89%.Over th ...

Financial Performance - Total revenue for the three months ended December 31, 2024, was $866.4 million, a 47% increase from $591.1 million in the same period of 2023[221]. - Operating loss decreased to $4.3 million for the three months ended December 31, 2024, compared to a loss of $172.2 million in the same period of 2023, representing a 97% improvement[221]. - Net income for the three months ended December 31, 2024, was $80.4 million, a significant turnaround from a net loss of $166.9 million in the same period of 2023[221]. - Merchant network revenue for the three months ended December 31, 2024, was $244.9 million, a 30% increase from $188.4 million in the same period of 2023[253]. - Interest income for the three months ended December 31, 2024, was $409.4 million, a 42% increase from $288.3 million in the same period of 2023[253]. - The company reported a net income of $80.4 million for the three months ended December 31, 2024, compared to a net loss of $166.9 million in the same period of 2023[253]. - Merchant network revenue increased by $56.5 million, or 30%, and $94.9 million, or 28%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. - GMV increased by $2.7 billion, or 35%, and $4.6 billion, or 35%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. Consumer Metrics - As of December 31, 2024, the company had approximately 21.0 million active consumers, a 19% increase from approximately 17.6 million active consumers as of December 31, 2023[249]. - The average number of transactions per active consumer increased by 22% to approximately 5.3 transactions as of December 31, 2024, compared to 4.4 transactions as of December 31, 2023[251]. - Active merchant base grew to approximately 337 thousand and active consumers reached 21.0 million as of December 31, 2024, up from approximately 279 thousand and 17.6 million, respectively, as of December 31, 2023[256]. Loan and Credit Metrics - For the three months ended December 31, 2024, interest-bearing loans represented 72% of total GMV facilitated through the platform, compared to 73% in the same period of 2023[223]. - The company directly originated approximately $1.7 billion in loans for the three months ended December 31, 2024, maintaining a consistent 17% of total loans originated compared to the same period in 2023[227]. - The volume of loan modifications during the fiscal quarter ended December 31, 2024, represented 0.15% of the outstanding principal balance of loans held on the balance sheet[239]. - Credit risk exposure related to loans held on the balance sheet was $6.8 billion as of December 31, 2024, compared to $5.7 billion as of June 30, 2024[324]. - The company sold $6.8 billion of unpaid principal balance of loans subject to risk sharing arrangements as of December 31, 2024, with a maximum exposure to losses of $85.1 million[324]. Economic and Market Conditions - The macroeconomic environment, including inflation and interest rate changes, continues to impact consumer spending and business operations[236]. - Seasonal fluctuations in GMV are expected, with the strongest performance typically during the fiscal second quarter due to holiday retail commerce[235]. - Continued volatility in interest rates may adversely impact consumer spending levels and willingness to pay outstanding amounts owed[319]. Technology and Competitive Advantage - The company’s proprietary technology platform and data analytics are key competitive advantages, enhancing risk pricing and consumer value[219]. - The company’s innovative approach and focus on technology position it to define the future of commerce and payments[218]. Financial Position and Cash Flow - As of December 31, 2024, the company had $1.9 billion in cash and cash equivalents and available for sale securities, $3.6 billion in available funding debt capacity, and $330.0 million in borrowing capacity under the revolving credit facility[286]. - Net cash provided by operating activities was $508.9 million for the six months ended December 31, 2024, compared to $173.2 million for the same period in 2023[300][304]. - Net cash used in investing activities was $664.1 million for the six months ended December 31, 2024, with outflows related to $15.1 billion of purchases and origination of loans held for investment[305]. - Net cash provided by financing activities was $609.7 million for the six months ended December 31, 2024, primarily from net cash inflows of $750.0 million from new issuance and repayment of notes[307]. Risk Management and Internal Controls - The company maintains an interest rate risk management program to mitigate potential volatility of earnings from changes in interest rates[321]. - The company utilizes proprietary underwriting models to manage credit risk associated with consumer loans[322]. - The company intends to continue monitoring and upgrading internal controls as necessary, acknowledging inherent limitations in their effectiveness[329]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended December 31, 2024[328]. - The company’s management evaluated the effectiveness of disclosure controls and concluded they were effective as of the end of the reporting period[327].

Affirm shares jumped more than 10% in extended trading on Thursday after the provider of buy now, pay later loans, reported better-than-expected fiscal second-quarter results.Here is how the company did, compared to analysts' consensus estimates from LSEG.Earnings per share: 23 cents adjusted. That's not comparable to an expected loss of 15 cents.Revenue: $866 million vs. $807 million expectedAffirm reported gross merchandise volume, or GMV, of $10.1 billion, topping the average estimate of $9.64 billion, a ...

affirm) Second Fiscal Quarter 2025 Shareholder Letter a · 1234 (0) Pay over time Pay in full a Purchasing power ( $1,200 Plan a purchase Exciting 0% APR deals for the golfer in your life > Fellow Affirm Shareholders, We exceeded the outlook established in our previous letter on all financial metrics in FQ2'25: Gross Merchandise Volume Revenue Less Transaction Revenue ("GMV") Costs ("RLTC")1 Adjusted Operating Income® Operating Income Net Income As a percentage of Revenue As a percentage of Revenue +12 pp $2 ...