Affirm Holdings, Inc. Q4 FY2025 earnings call

• Max noted the results were exceptionally strong, with Q4 setting new records in most metrics and growth accelerating. - Celebrated team milestones like Michael Linford's 7 years and Rob O'Hare's upcoming fifth anniversary. - Discussed 0% APRs for first-time users, repeat rates of these users, and how 0% users can convert to interest-bearing. - Highlighted credit performance remains strong with daily monitoring, and 95% of transactions came from repeat borrowers in the quarter. - Spoke about the Affirm Card, with $1.2 billion volume, 10% attach rate, and 0% volume tripling, with more developments coming. - Addressed international strategy, including friends-and-family testing in the U.K. with Shopify, and focus on Europe. - Talked about AI in commerce, with agentic commerce remixing e-commerce and Affirm being integrated into various environments. - Discussed PSP integration, particularly with Stripe Terminal, as an enabling technology for offline commerce.

No specific financial performance for product segments in absolute terms and revenue contribution % provided in the transcript.

• Assumed enterprise partner transition off in fiscal second quarter, winding down going into fiscal Q1. - Outlook includes assumptions about funding, card performance, and international expansion progress.

• Macro-economic shifts that are out of control. - Potential credit issues if consumer data worsens, like with resumption of student loans. - Competition in the funding environment with lower quality competitors potentially causing credit issues.

Q: Dan Dolev asked about the improvement in situation since last report and optimism.

A: Max said consumer performance continues well, with strong originations and credit performance.

Q: Daniel Rock Perlin asked about repeat rates of initial users from 0% APR.

A: Max said initial users do repeat, and 0% users can flip to interest-bearing.

Q: Adam B. Frisch asked about consumer FICO scores and impact of student loan resumption.

A: Max said credit performance is monitored daily, and they take measures to not overextend borrowers. Rob added 95% of transactions were from repeat borrowers.

Q: William Alfred Nance asked about funding environment and competition.

A: Michael said they partner with long-term capital partners and are mindful of capital market health.

Q: Moshe Ari Orenbuch asked about Affirm Card strategy.

A: Max said the card is growing well with more developments coming, and 0% volume on the card is a frequency driver.

Q: Robert Henry Wildhack asked why others haven't leaned into 0% APR like Affirm.

A: Max said underwriting is hard, and Affirm's strength is in math and handling the multivariate problem of 0% and other APRs.

Q: Kyle David Peterson asked about take rate and enterprise partner.

A: Max said they stopped short of guiding mix, but 0% loans were growing, and the enterprise partner is wound down going into fiscal Q1.

Q: Adib Hasan Choudhury asked about international strategy and Apple Pay.

A: Max said testing in U.K. with Shopify, and they don't talk about wallet partnerships in detail.

Q: John Douglas Hecht asked about customer engagement and impact of lower rates.

A: Max said increased frequency with gentle downtrend in average ticket, and lower rates would have similar funding cost impact with potential offsetting consumer stress.

Q: Matthew Robert Coad asked about 0% penetration and AI.

A: Max said 0% penetration will increase as merchants see marketing benefits, and AI in agentic commerce remixes e-commerce.

Q: James Eugene Faucette asked about PSP integration and offline channel.

A: Max said PSP integration is enabling for offline commerce, reducing IT integration work.

Q: Reginald Lawrence Smith asked about PSP channel and merchant leaving.

A: Max said PSP channel is early and accretive, and the merchant integration is assumed to go away at end of fiscal Q1.

Q: Harry Bartlett asked about international rollout and sales.

A: Max said platform is reusable, but local regulation and licensing are important, and they'll market with multinational partners.

Q: James Eric Friedman asked about AdaptAI and GMV increase.

A: Max said AdaptAI is AI-powered configuration of Adaptive Checkout, improving conversion with 5% GMV increase early on.

Q: Giuliano Jude Anderes Bologna asked about wallet partnerships and offline transactions.

A: Max said offline commerce is a big opportunity, with ideas on informing shoppers and integration, and greenfield size is 10x e-commerce.