Overview
- Affirm reported Thursday that revenue rose 33% to about $1.17 billion and gross merchandise volume climbed 36% to roughly $14.1 billion, beating analyst expectations.
- The company set fiscal‑2027 targets calling for GMV above $64 billion and an adjusted operating margin above 30%, signaling a push for much higher profitability.
- CEO Max Levchin told investors that higher gas prices and ongoing inflation could reduce consumer spending and threaten the durability of the demand lifting Affirm's business.
- Near‑term credit trends improved as the 30‑day delinquency rate on monthly installment loans fell to about 2.5% excluding certain loan products, while active consumers rose to 27.8 million and Affirm Card users jumped to 5.2 million.
- Investors pared gains after the report, sending the stock down roughly 4% as fast‑money positions unwound; modest hedge‑fund trimming, a near 5% short interest and a forward P/E near 40 underscore valuation and positioning risks that could amplify volatility.