The earnings call reflects a predominantly positive sentiment, with strong financial performance, consumer growth, and strategic expansion plans. While there are challenges related to regulatory scrutiny and interest rates, these are being managed effectively. The company's robust market position and favorable funding conditions further contribute to positive outlooks.

Company Guidance

During Affirm's Q1 2025 earnings call, the company provided guidance that indicated robust economic performance, with revenue as a percentage of GMV expected to increase by 10 to 20 basis points. This improvement is attributed to strong interest income and favorable capital market conditions. The company guided for a RLTC margin in the range of 3.8% for Q2 and expressed optimism about maintaining strong unit economics throughout the year, aiming for the higher end of the 3% to 4% RLTC margin range. Furthermore, Affirm is targeting an adjusted operating income margin above 20% for the fiscal year, with guidance of 21% to 23% for the second quarter. The company plans to reinvest excess RLTC into growth initiatives, including 0% or APR incentive offers and operating expense investments. Additionally, Affirm highlighted the positive impact of declining benchmark rates as a tailwind to RLTC, with a potential benefit of 40 basis points in cost reduction for every 100 basis point decrease in rates, although these benefits will be reinvested into consumer and merchant offers rather than directly boosting margins.

Strong Economic Performance and Revenue Growth

The company has shown robust economics with improvements in revenue, benefiting from interest income and pricing initiatives. The RLTC margin guidance for Q2 is at 3.8%, indicating strong unit economics and a favorable outlook for the upcoming quarters.

Positive Consumer Growth and Engagement

Active consumer growth has accelerated, with an increase in transaction frequency. The company has focused on engaging users more effectively, leading to higher active user rates and transactions.

Successful Market Positioning and Expansion Plans

Affirm has established a strong position in the U.S. market, holding over 1/3 of the volume and more than half of the revenue. The company is also expanding into the U.K. market, focusing on longer-term payment products and leveraging experience and infrastructure.

Favorable Funding Conditions

The market for forward flow whole loan purchasers is strong, benefiting from private credit trends. Affirm's ABS execution remains consistent, aiding in the stability of funding across channels.

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Affirm Holdings (AFRM) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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AFRM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 06, 2025	2025 (Q2)	-0.16 / -	-0.54	―	―	―
Nov 07, 2024	2025 (Q1)	-0.32 / -0.31	-0.57	45.61% (+0.26)
Aug 28, 2024	2024 (Q4)	-0.48 / -0.14	-0.69	79.71% (+0.55)
May 08, 2024	2024 (Q3)	-0.70 / -0.43	-0.69	37.68% (+0.26)
Feb 08, 2024	2024 (Q2)	-0.72 / -0.54	-1.1	50.91% (+0.56)
Nov 08, 2023	2024 (Q1)	-0.70 / -0.57	-0.86	33.72% (+0.29)
Aug 24, 2023	2023 (Q4)	-0.86 / -0.69	-0.65	-6.15% (-0.04)
May 09, 2023	2023 (Q3)	-0.92 / -0.69	-0.19	-263.16% (-0.50)
Feb 08, 2023	2023 (Q2)	-0.99 / -1.10	-0.57	-92.98% (-0.53)
Nov 08, 2022	2023 (Q1)	-0.86 / -0.86	-1.13	23.89% (+0.27)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AFRM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$48.79	$46.48	-4.73%
Aug 28, 2024	$31.58	$41.66	+31.92%
May 08, 2024	$34.90	$31.58	-9.51%
Feb 08, 2024	$49.22	$43.86	-10.89%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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