Affirm Holdings, Inc. Q1 FY2025 earnings call

Max Levchin noted it was a strong quarter with good results and preparation for the holiday season. Michael Linford discussed strong unit economics, benefits from interest income, capital markets, and merchant fees. Max also mentioned active consumer growth acceleration and leveraging 0% promotions for holidays. Michael Linford talked about balance sheet management, strength in the forward flow market, and ABS execution.

Michael Linford mentioned Q2 is expected to be strong with a margin around 3.8%, and the full year is projected to be in the higher end of the 3% to 4% range. Max Levchin expressed confidence in holiday 0% promotions and reinvesting margins in growth initiatives.

Forward-looking statements are subject to numerous risks and uncertainties, including those outlined in the company's SEC filings.

Q: Andrew Bauch at Wells Fargo asked about revenue as a percentage of GMV and RLTC drivers.

A: Michael Linford discussed unit economics, interest income, capital markets benefits, and merchant fees.

Q: Jason Kupferberg at Bank of America asked about underwriting posture and RLTC margin trend.

A: Max Levchin and Michael Linford talked about unchanged underwriting posture, tuning settings, and optimism for back half margin.

Q: John Hecht at Jefferies asked about secondary market activity impact on balance sheet management.

A: Michael Linford discussed strong forward flow market position, stable funding channels, and balance between forward flow and ABS.

Q: James Faucette at Morgan Stanley asked about 0% promotions and holiday season.

A: Max Levchin talked about excitement from merchants, using 0% as a lever, and harmonizing financial programs.

Q: Dan Dolev at Mizuho asked about active consumer growth factors.

A: Max Levchin discussed margin-driven deeper approvals and reengaging consumers.

Q: Robert Wildhack at Autonomous Research asked about UK launch and competitive landscape.

A: Max Levchin and Michael Linford talked about UK launch progress, merchant excitement, and underwriting moat.

Q: Reginald Smith at JPMorgan asked about Affirm card and UK underwriting.

A: Max Levchin talked about no impact on Affirm card, UK underwriting preparedness.

Q: Jill Shea at UBS asked about funding costs and rate outlook.

A: Michael Linford talked about rate impact on P&L, 40 basis points per 100 basis points rate movement, and declining rates as tailwinds.