Q2 2026 Affirm Holdings Inc Earnings Call Transcript
Key Points
- Affirm Holdings Inc (AFRM) reported strong growth in active merchant numbers, with a 42% increase, driven by wallet partnerships.
- The company is experiencing healthy consumer trends, with customers willing and able to repay loans, indicating strong demand and credit health.
- Affirm Holdings Inc (AFRM) has seen significant growth in its Affirm card, with GMV up nearly 160% year-over-year, indicating strong consumer adoption.
- The company is benefiting from favorable funding market conditions, particularly in the ABS market, which has helped reduce transaction costs.
- Affirm Holdings Inc (AFRM) is expanding into new verticals such as auto parts and services through partnerships, indicating diversification and growth potential.
- The company is facing increased competition in the BNPL space, with competitors offering aggressive promotions and cashback incentives.
- There is uncertainty regarding the regulatory environment, particularly concerning potential caps on BNPL rates, which could impact future operations.
- Affirm Holdings Inc (AFRM) is experiencing a slowdown in GMV growth projections for the third and fourth quarters, with expected growth rates of 30% and 25%, respectively.
- The company's expansion into new verticals like rent and B2B services is still in early stages, with uncertain outcomes and potential risks.
- Affirm Holdings Inc (AFRM) has not disclosed specific details on the mix between short-term and long-term 0% loans, which could impact financial transparency.
Good afternoon. Welcome to the Affirm Holdings second quarter fiscal 2026 earnings call.
Following the speaker's remarks, we will open the lines for your questions. As a reminder, this 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 now like to turn the call over to Zane Keller, head of investor relations. 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
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