Q3 2025 Affirm Holdings Inc Earnings Call Transcript
Key Points
- Affirm Holdings Inc (AFRM) reported strong growth in Gross Merchandise Volume (GMV), with March being the strongest month at 40% year-on-year growth.
- The company is seeing excellent traction with its 0% APR product, which is attracting high credit quality customers and boosting lifetime value.
- Affirm Holdings Inc (AFRM) has successfully renewed its partnership with Shopify through 2028 without any economic concessions.
- The company has expanded its international presence, particularly in the UK, through partnerships like the one with Adyen, which accelerates integration and implementation.
- Affirm Holdings Inc (AFRM) is at the forefront of the industry in integrating and reporting back to credit bureaus, enhancing consumer credit scores and transparency.
- The 0% APR product, while attracting high-quality customers, generates lower revenue compared to interest-bearing loans.
- Affirm Holdings Inc (AFRM) faces a highly competitive market, with pressure on merchant fee rates and competition from both pure players and incumbents in the consumer credit space.
- The company is cautious about potential economic downturns and has increased its reserve on loan losses, indicating a conservative approach to credit risk.
- Affirm Holdings Inc (AFRM) is mindful of potential implications from student loan enforcement actions, which could affect consumer repayment behavior.
- The company acknowledges that its app improvements are ongoing, with a focus on maintaining repayment rates, which may delay the rollout of new features.
Good afternoon. Welcome to the Affirm Holdings third quarter fiscal 2025 earnings call. Following the speakers' remarks, we will open the lines for your questions. As a reminder, the conference call 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 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. 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
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