Affirm Holdings, Inc. Q1 FY2026 earnings call

• Max Levchin announced extending the U.S. agreement with Amazon for an additional 5 years through January 2031.
• Discussed PSP relationships, noting they help with speed of integration and are important for getting on more merchants and platforms.
• Highlighted 0% APR initiatives, including the '0% Days' promotion, and the importance of custom direct deals with merchants.
• Mentioned Affirm Card growth, with plans to market it more broadly as underwriting confidence increases.
• Talked about underwriting processes being carefully constructed mathematically and the ability to quickly incorporate new data into models for entering new verticals.

No detailed breakdown of product segment financial performance with revenue contribution percentages provided in the transcript.

• Full-year guide for operating margins is more than 7.5%, up from over 6% last quarter.
• 0% monthly installment loans are identified as the fastest-growing loan product and expected to continue growing.
• Maintains a target of 4% for revenue less transaction cost take rates for fiscal '26.

No specific risks discussed in detail during the call; however, the opening note mentions forward-looking statements are subject to numerous risks and uncertainties set forth in SEC filings.

Q: Dan Dolev with Mizuho asked about funding markets and why Affirm is executing well despite market conditions.

A: Michael Linford responded about expanding relationships with blue-chip forward flow buyers, the performance of the asset being a driver, and the team's ability to educate investors on the product.

Q: Nate Svensson with Deutsche Bank asked about PSP relationships.

A: Max Levchin said PSP relationships help with speed of integration and getting on more merchants, while Michael Linford added platforms are a way to integrate more than acquire.

Q: Kathy Chen with Wells Fargo asked about RLTC trend.

A: Robert O'Hare said 4% is a philosophical target to maximize growth and profitability, with puts and takes due to idiosyncratic factors.

Q: Daniel Perlin with RBC Capital Markets asked about consumer spending health.

A: Max Levchin said consumer is borrowing and paying back healthily, and mentioned no loss of repayment in government employee data.

Q: Harry Bartlett with Rothschild & Co. asked about PSP economics and international expansion.

A: Robert O'Hare said PSP economics are bespoke, and Shopify is a key distribution partner for international expansion.

Q: Adam Frisch with Evercore ISI asked about GMV growth mix.

A: Max Levchin said they love all doors with Affirm logo, and are investing in direct-to-consumer products and events like '0% Days'.

Q: Zachary Gunn with FT Partners asked about earned wage access.

A: Max Levchin said they have a moat in data and lending process, but won't preannounce products.

Q: Reggie Smith with JPMorgan asked about underwriting in new verticals.

A: Max Levchin said they have a robust process to quickly incorporate new data into models for new verticals.

Q: James Friedman with Susquehanna International asked about 0% APR demographics.

A: Max Levchin said majority of participants in 0% Days were existing consumers and credit quality is higher due to self-selection.

Q: Kyle Joseph with Stephens asked about competitive environment and capital markets.

A: Michael Linford said capital markets are constructive for their asset and they have good engagement with blue-chip investors.