Affirm CFO Rob O'Hare on Consumer Strength and Business Growth

U.S. Consumer Health and Affirm's Performance

• 💡 The U.S. consumer is currently strong and healthy, as indicated by Affirm's daily loan origination and repayment data.
• 🎯 Affirm is originating over $100 million in loans daily, with repayment data consistently meeting expectations.
• 📈 Delinquency data is being closely managed and is showing outcomes exactly in line with expectations.

Interest Rates and Business Profitability

• 💰 While falling interest rates may offer a modest benefit to consumers by reducing credit costs, Affirm is profitable in the current rate environment.
• 📊 Loan profitability at a unit level is at or above Affirm's long-term ranges.
• ⚙️ Affirm's business model is adaptable and can excel in any macro environment, with potential lag effects for benefits from rate changes due to non-floating rate funding.

Growth Drivers and Projections

• 🚀 Bloomberg Intelligence projects Affirm to surpass 30% growth this year, exceeding consensus estimates.
• 🗓️ Affirm has established a minimum GMV for fiscal year 2026, indicating a floor for business growth.
• 📈 For Q1, Affirm is guiding for approximately 37% GMV growth, a healthy figure down from 43% in the previous quarter.

The Affirm Card and Competitive Landscape

• 💳 The Affirm Card offers slightly better profitability than the core business due to its repeat usage nature.
• 🛒 The card enables consumers to use Affirm's financing and flexibility at brick-and-mortar locations and merchants without existing Affirm integrations.
• 🤝 The competitive landscape, including players like Klarna, has been stable, and Affirm remains focused on driving its own objectives.