Q4 2026 Affirm Holdings, Inc. Earnings Call Transcript
Key Points
- Affirm Holdings Inc (AFRM) reported its most profitable quarter ever, even without the tax allowance release, indicating strong core business performance.
- The company is seeing strong growth in its services vertical, with volume nearly doubling year-over-year, driven by new large platform partnerships.
- Affirm Holdings Inc (AFRM) is expanding its Pay in X products, with a large merchant making Pay in 4 an evergreen part of its financing program, contributing to growth.
- The company's revenue less transaction costs guidance for fiscal 2027 is above its midterm target, supported by favorable funding costs and consistent capital markets execution.
- Affirm Holdings Inc (AFRM) is making progress on Affirm Edge, with pilots expected in the second half of the year, and is receiving positive reception from potential bank partners.
- The company's focus on building a network is creating virtuous cycles, with increasing transactions per user and improved merchant onboarding efficiency.
- Affirm Holdings Inc (AFRM) is only available at 80 of the top 250 e-commerce sites and 10% of e-commerce merchants, indicating significant untapped market but also slow sales cycles for large merchants.
- The in-store experience for Affirm card users still faces challenges, such as poor connectivity and integration issues with point-of-sale systems, which may hinder adoption.
- The company's GAAP EPS guidance is subject to volatility due to tax rate fluctuations, making it difficult for investors to model accurately.
- Affirm Holdings Inc (AFRM) is not seeing much competitive response in the UK, but the company acknowledges that banks move slowly, which could delay the rollout of Affirm Edge.
- The company's approval rates are not guaranteed to merchants, and it avoids competing on approval rates, which may limit its appeal to some merchants seeking higher conversion.
- There is uncertainty around the sustainability of the services vertical growth, as the company notes it is still early in the integration with these platforms.
Good afternoon. Welcome to the Affirm Holdings fourth-quarter fiscal 2026 earnings call. Following the speaker's remarks, we will open. As a reminder, this conference is being recorded and a replay of the call will be available on our investor relations website for a reasonable period of time after the call. I'd now like to turn the call over to Zane Keller, Head of Investor Relations.
Thank you. You may begin.
Thank you, operator. Before we begin, I would like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our Investor Relations website. Our actual results may differ materially from any forward-looking statements that we make today.
These forward-looking statements speak only as of today and the company does not assume any obligation or intent to update them except as required by law.
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