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Affirm’s latest quarter earnings call landed at a moment of heightened uncertainty for consumer finance, where performance depends on both borrower behavior and investor willingness to fund loans. The company’s buy now, pay later model requires that loans approved at checkout be financed before consumers repay, making funding conditions a key factor alongside delinquency trends.
In the first analyst question, CEO Max Levchin addressed whether delinquency trends or concerns in private credit were showing up in Affirm’s results. He said Affirm was not seeing deterioration in the performance of the specific customer base the company underwrites.
“No, we are not,” Levchin said, adding that Affirm’s underwriting group is distinct from broader consumer conditions. He also said the company had seen a “very stable and pleasant funding environment.”
Affirm’s results suggested continued customer demand rather than a pullback. Gross merchandise volume (GMV) rose 35% year over year to $11.6 billion. Transactions increased 45%, and 96% of transactions came from repeat customers.
Delinquencies remained contained. For U.S. monthly installment loans excluding Pay in X, the 30-plus-day delinquency rate was 2.8% at March 31, compared with 2.7% at Dec. 31. The 60-plus-day rate held at 1.6%, and the 90-plus-day rate improved to 0.7% from 0.8%.
When asked later about the strength of GMV, Levchin said the quarter did not reflect unusual factors. He argued that Affirm’s performance moves with the economy and that the company is already established in its product-market fit.
“No, there’s nothing unnatural about this one,” he said, adding that Affirm is “really, really small” relative to the broader U.S. eCommerce payment volume.
Affirm’s funding model depends on investors and funding partners buying or financing loans. Levchin described capital markets as familiar with Affirm’s product and said counterparties understand the company’s approach to what is eligible for forward flow or securitizations.
He said the company has “a lot of trust with our counterparties” and emphasized that Affirm takes its standards for loan eligibility seriously.
COO Michael Linford said the funding market was “exceptionally constructive,” citing “sustained and reducing spreads.” He also said forward-flow partners were “still clamoring for a bigger allocation” of Affirm’s portfolio.
Linford added that forward-flow buyers are “heavily, heavily weighted away” from liquid vehicles exposed to volatility. He said those buyers include a joint venture with Sixth Street, pension funds, and large insurance complexes.
The company’s reported funding position supported its view of the market. Affirm reported $28.2 billion of funding capacity at quarter end, while its total platform portfolio was $18.4 billion—equal to 65% of that capacity.
Affirm reported strong top-line growth. Revenue rose 33% year over year to $1.04 billion. Revenue less transaction costs increased 41% to $498 million.
On profitability, Affirm posted GAAP operating income of $88 million, compared with an $8 million operating loss a year earlier. Adjusted operating income was $281 million.
Active consumers increased 22% to 26.8 million. Transactions per active consumer rose 20% to 6.7.
Affirm Card remained a key contributor, with $2.13 billion in GMV and 4.4 million active consumers.
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