Latest news with #AffirmCard
Business Mayor
12-05-2025
- Business
- Business Mayor
Affirm drops 8% on weaker-than-expected guidance for current quarter
Affirm , the provider of buy now, pay later loans, gave a revenue forecast for the current quarter that trailed analysts' estimates even as profit for the prior quarter was better than expected. The stock fell 8% in extended trading on Thursday. Here's how the company did, compared to analysts' consensus estimates from LSEG: Earnings per share: 1 cent vs. an expected loss of 3 cents 1 cent vs. an expected loss of 3 cents Revenue: $783 million vs. $783 million expected Affirm reported gross merchandise volume, or GMV, of $8.6 billion, topping the average estimate of $8.2 billion, according to StreetAccount. GMV, a key metric that helps gauge the total value of transactions, increased 36% from a year earlier. Revenue in the quarter rose 36% from $576 million a year ago. The company's key margin metric — revenue less transaction costs, or RLTC —came in at 4.1%, slightly above its long-term target range of 3% to 4%. Adjusted operating margin was 22%, compared to StreetAccount's estimate of 21.6%. Affirm reported net income of $2.8 million, or a penny a share, compared to a loss a year earlier of $133.9 million, or 43 cents a share. For the current quarter, Affirm is guiding for revenue between $815 million and $845 million — with a midpoint of $830 million, below the average estimate of $841 million, according to LSEG. Affirm's business is closely tied to consumer spending, as its online loan offering has become popular with sellers of electronics, apparel and travel. The U.S. economy contracted in the first three months of 2025 on an import surge at the start of President Donald Trump's second term in office, as companies and consumers sought to get ahead of the Trump tariffs implemented in early April. As CNBC reported late last month, citing first-quarter results from credit card lenders, lower-income earners are reining in their transactions to focus on essentials, while the wealthy continue to spend on high-priced meals and and luxury travel. 'Right now, we're seeing credit outcomes that are very in line with expectations,' Chief Financial Officer Rob O'Hare said in an interview. 'We haven't seen any signs of stress on the consumer side.' Affirm is forecasting fourth-quarter GMV between $9.4 billion and $9.7 billion, with a midpoint of $9.55 billion, above StreetAccount's estimate of $9.2 billion. Adjusted operating margin is expected between 23% and 25%, compared to the 23.8% StreetAccount estimate. Affirm reiterated its commitment to achieving profitability on a GAAP basis by the end of its fiscal fourth quarter in 2025. Affirm's active consumer base increased to 22 million, including 2 million new to Affirm consumers. The Affirm Card, which is the company's big bet for driving greater usage overall, saw GMV rise 115% from a year earlier, and the number of active cardholders more than doubled. The company's partnerships with Apple , Amazon and Shopify continue to drive momentum. In June, Affirm and Apple announced plans for U.S. Apple Pay users on iPhones and iPads to be able to apply for loans directly through Affirm. Earlier this week, the Consumer Financial Protection Bureau said it will stop enforcing a Biden-era rule that complicated compliance for BNPL providers, in what was largely viewed as a win for lenders like Affirm. The quarter saw a notable rise in 0% interest loans, a strategy in which merchants — and sometimes manufacturers — subsidize borrowing costs to drive sales. That marked a 44% increase from a year earlier. O'Hare said that for merchants, 0% loans serve as an alternative to traditional discounts. 'It may be an expensive net discount rate, but it's better than 10% off,' he said. Affirm CEO Max Levchin said that 0% loans help build a pipeline of higher-value customers. 'Every time we sign someone new through a 0% promo, some number of months or quarters from now, that's a prime candidate for the Affirm Card, and that's a lifetime value booster,' Levchin said on the earnings call. Meanwhile, credit quality held steady, with losses below 1% in the company's core offering that allows users to repay loans in four installments. Affirm shares are down 11% for the year, excluding the after-hours move, while the Nasdaq has fallen abut 7%. WATCH: Affirm CEO on consumer behavior
CNBC
09-05-2025
- Business
- CNBC
Here are Friday's biggest analyst calls: Nvidia, Amazon, Microsoft, Coinbase, Lyft, Affirm, Boeing, Tapestry & more
Here Friday's the biggest calls on Wall Street: Bank of America reiterates DraftKings as buy The firm said it's sticking with shares of DraftKings following earnings on Thursday. "We rate DKNG a Buy given positive underlying fundamentals, above market revenue growth profile, and inflection to positive Adj. EBITDA." Goldman Sachs upgrades Lyft to buy from neutral Goldman said shares of the ride sharing company are undervalued. "While short-term debates will likely stay rooted in industry trends around rideshare pricing, market share fluctuations, positioning against the AV [autonomous vehicle] theme and/or any changes in consumer discretionary behavior, we believe that shares are dislocated from LYFT's earnings power in the next 2-3 years and upgrade the stock to Buy." Susquehanna upgrades Affirm to positive from neutral Susquehanna upgraded the fintech payment company following earnings on Thursday. "Key themes from the quarter include: the viral adoption of the Affirm Card (up 115% Y/Y) to reach 2 mln card holders; the popularity of its 0% APR product (up 44% Y/Y); and several forward flow deals, which drove a 89% increase in gain-on-sale revenue. Management raised guidance for the full year." Bernstein reiterates Coinbase as outperform Bernstein said it's sticking with the crypto company following earnings on Thursday. "We expect the crypto market bull cycle to remain strong and expect at least one blockbuster quarter (similar to Q4 last year) driven by breakout in crypto prices. We like COIN as a clear market leader in crypto financial services, gaining from the regulatory tailwinds, with U.S onshore TAM expansion relative to offshore crypto markets." Bank of America reiterates Pinterest as buy Bank of America said it's standing by the social media company following earnings on Thursday. "We remain positive on Pinterest given positive usage trends and still early-stage Al benefits across the platform." UBS reiterates Boeing as buy UBS raised its price target on the stock to $226 per share from $207. "While the tariff risk appears to be receding (for now) post the UK deal (which leaves 10% tariffs in place), we calculate the impact to Boeing's free cash flow based on an estimate of supply chain exposure by country - enabling a tariff sensitivity by country. We calculate a 2026 FCF impact of $453mn at full reciprocals and $275mn at current levels." Piper Sandler downgrades Expedia to underweight from neutral The firm downgraded the online travel website following earnings citing slowing inbound travel. "EXPE 1Q results were mixed with Bookings & Revenues missing expectations by 1%, offset by better EBITDA." Wells Fargo downgrades International Paper to equal weight from overweight Wells said in its downgrade of the paper company that pricing is turning negative. "We are d/g shares of IP t o UW from EW and reducing our PT to $40 from $45. We believe IP's '25 guidance is unreachable in an environment where both corroguated vols and pricing turn negative, with shares still pricing in its achievement." Morgan Stanley initiates Himax Technologies as overweight Morgan Stanley said the semiconductor company has "top-line growth and margin expansion." "We expect Himax to expand its non-driver IC [integrated circuits] businesses by tapping the cloud AI and edge AI (AI glasses and PC) markets, which bodes well for top-line growth and margin expansion." Morgan Stanley upgrades Haleon to overweight from equal weight Morgan Stanley said the British consumer healthcare company is defensive. "We appreciate Haleon's market-leading exposure in defensive categories." Morgan Stanley upgrades Tapestry to overweight from equal weight Morgan Stanley said it sees "tariff resilience" for the owner of brands like Kate Spade. "We upgrade TPR to Overweight, as 1) select drivers of our previously Equal-weight view have evolved positively, 2) we view positive NTM [next twelve months] EPS revisions as likely – which should enable further valuation re-rating..." Citi downgrades Wolfspeed to sell from neutral Citi said it sees too many negative catalysts for the radio frequency semis company. " Wolfspeed reported Mar-Q results with rev/EPS in-line/better than Street. However, the company did not provide guidance for Jun-Q and did not take questions during the earnings call or hosted callbacks." Bank of America upgrades Microchip to neutral from underperform Bank of America said it's getting more constructive on the stock after the return of its prior CEO. "The return of well-regarded prior CEO Steve Sanghi has greatly enhanced the level of restructuring urgency and customer/product focus at Microchip (MCHP), helped by recovery in key industrial (aerospace/defense) markets." UBS reiterates Nvidia as buy UBS said it's standing by the stock after the Taiwan Ministry of Finance released April export data. The firm added that it's cautious on the results of the export data despite April being another "strong month." "Although unclear to what extent this reflects tariff pull-ins rather than underlying strength, we express caution on the positive read-through for NVDA as the data has not been predictive over the past several Qs and continues to decouple by as much as mid-teens in either direction in recent years." Wedbush reiterates Amazon, Alphabet and Microsoft as outperform Wedbush said Amazon, Alphabet and Microsoft remain well positioned. "The stalwart cloud/hyper scale players have been another instrumental part of this first key phase of the AI Revolution being led by Microsoft and now also seeing Google (GCP) and Amazon (AWS) finding major cloud and AI momentum
CNBC
08-05-2025
- Business
- CNBC
Affirm drops 10% on weaker-than-expected guidance for current quarter
Affirm, the provider of buy now, pay later loans, gave a revenue forecast for the current quarter that trailed analysts' estimates even as profit for the prior quarter was better than expected. The stock fell 10% in extended trading on Thursday. Here's how the company did, compared to analysts' consensus estimates from LSEG: Affirm reported gross merchandise volume, or GMV, of $8.6 billion, topping the average estimate of $8.2 billion, according to StreetAccount. GMV, a key metric that helps gauge the total value of transactions, increased 36% from a year earlier. Revenue in the quarter rose 36% from $576 million a year ago. The company's key margin metric — revenue less transaction costs, or RLTC —came in at 4.1%, slightly above its long-term target range of 3% to 4%. Adjusted operating margin was 22%, compared to StreetAccount's estimate of 21.6%. Affirm reported net income of $2.8 million, or a penny a share, compared to a loss a year earlier of $133.9 million, or 43 cents a share. For the current quarter, Affirm is guiding for revenue between $815 million and $845 million — with a midpoint of $830 million, below the average estimate of $841 million, according to LSEG. Affirm's business is closely tied to consumer spending, as its online loan offering has become popular with sellers of electronics, apparel and travel. The U.S. economy contracted in the first three months of 2025 on an import surge at the start of President Donald Trump's second term in office, as companies and consumers sought to get ahead of the Trump tariffs implemented in early April. As CNBC reported late last month, citing first-quarter results from credit card lenders, lower-income earners are reining in their transactions to focus on essentials, while the wealthy continue to spend on high-priced meals and and luxury travel. Affirm is forecasting fourth-quarter GMV between $9.4 billion and $9.7 billion, with a midpoint of $9.55 billion, above StreetAccount's estimate of $9.2 billion. Adjusted operating margin is expected between 23% and 25%, compared to the 23.8% StreetAccount estimate. Affirm reiterated its commitment to achieving profitability on a GAAP basis by the end of its fiscal fourth quarter in 2025. Affirm's active consumer base increased to 22 million, including 2 million new to Affirm consumers. The Affirm Card, which is the company's big bet for driving greater usage overall, saw GMV rise 115% from a year earlier, and the number of active cardholders more than doubled. The company's partnerships with Apple, Amazon and Shopify continue to drive momentum. In June, Affirm and Apple announced plans for U.S. Apple Pay users on iPhones and iPads to be able to apply for loans directly through Affirm. Earlier this week, the Consumer Financial Protection Bureau said it will stop enforcing a Biden-era rule that complicated compliance for BNPL providers, in what was largely viewed as a win for lenders like Affirm. The quarter saw a notable rise in 0% interest loans, a strategy in which merchants — and sometimes manufacturers — subsidize borrowing costs to drive sales. That marked a 44% increase from a year earlier. Meanwhile, credit quality held steady, with losses below 1% in the company's core offering that allows users to repay loans in four installments. Affirm shares are down 11% for the year, excluding the after-hours move, while the Nasdaq has fallen abut 7%.
National Post
30-04-2025
- Business
- National Post
Affirm Launches "AdaptAI" – its AI-Powered Promotions Platform
Article content Article content SAN FRANCISCO — Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced it is introducing 'AdaptAI,' its AI-powered promotions platform, to its merchant partners. AdaptAI has enabled Affirm to deliver personalized financial benefits – such as exclusive APR rates, special repayment terms, and immediate cash savings – directly to consumers via the Affirm App and Affirm Card. Now, merchants can deliver these same targeted, real-time promotions and credit offers, which are optimized specifically for a customer's shopping preferences, spending habits, and purchase details, at the point of purchase. Article content 'Unlike conventional credit card rewards—which are opaque, static, and subsidized by the financially vulnerable—AdaptAI dynamically matches the right benefit to the right consumer at exactly the right moment,' said Vishal Kapoor, Affirm's SVP of Product. 'Consumers no longer need to spend more, keep track of, or wait months to recoup their rewards. Now, they can immediately receive tailored, transparent value at the time of purchase. This is only made possible with Affirm's AI-powered technology and real-time underwriting, and builds on what we do best: delivering customized payment options that help consumers take their money further.' Article content Today's consumers expect individualized experiences, especially when paying. Affirm has successfully met this need by offering payment solutions customized to each consumer's purchase and financial profile. Now, thanks to AdaptAI, Affirm's merchant partners can unlock additional value for shoppers right at checkout. Article content Each of these bespoke offers translates into tangible consumer value, such as significant savings or added flexibility. Consider a $500 purchase: A merchant using AdaptAI could offer a first-time shopper a 0% APR promotion over 12 months, potentially saving that customer about $120 in interest compared to typical revolving credit card costs. Alternatively, that same merchant could offer its most loyal customers–who Affirm knows value predictability and more time to pay–an interest-bearing offer with extended repayment terms, tied to an event such as a Memorial Day sale. For these customers, spreading a $500 purchase out over 24 months at 10% APR might better align with their budgeting preferences, despite the added cost of about $4 per month in simple interest. This AI-driven nuance can allow merchants to meaningfully reward customers based on their real-time needs, boosting customer satisfaction and loyalty, and ultimately driving greater engagement and conversion. Article content Affirm has leveraged AdaptAI across its own consumer products, including the Affirm App and Affirm Card, driving nearly 10% incremental improvements in conversion rates. Building on this proven success, Affirm is now making this powerful AI-powered promotions platform broadly available for its merchant partners. Article content Merchants interested in offering these tailored benefits to their customers can get in touch here. Article content About Affirm Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust, transparency, and putting people first — we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X. Article content Rates from 0–36% APR. For example, a $800 purchase might cost $72.21/mo over 12 months at 15% APR. Payment options through Affirm are subject to an eligibility check, may not be available everywhere, and are provided by these lending partners: Options depend on your purchase amount, and a down payment may be required. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to a California Financing Law license. For licenses and disclosures, see Article content Article content Article content Article content Article content Article content
Yahoo
30-04-2025
- Business
- Yahoo
Affirm Launches "AdaptAI" – its AI-Powered Promotions Platform
Retailers can now introduce personalized, real-time financial benefits, on top of Affirm's flexible pay-over-time plans, to customers at the point of purchase SAN FRANCISCO, April 30, 2025--(BUSINESS WIRE)--Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced it is introducing "AdaptAI," its AI-powered promotions platform, to its merchant partners. AdaptAI has enabled Affirm to deliver personalized financial benefits – such as exclusive APR rates, special repayment terms, and immediate cash savings – directly to consumers via the Affirm App and Affirm Card. Now, merchants can deliver these same targeted, real-time promotions and credit offers, which are optimized specifically for a customer's shopping preferences, spending habits, and purchase details, at the point of purchase. "Unlike conventional credit card rewards—which are opaque, static, and subsidized by the financially vulnerable—AdaptAI dynamically matches the right benefit to the right consumer at exactly the right moment," said Vishal Kapoor, Affirm's SVP of Product. "Consumers no longer need to spend more, keep track of, or wait months to recoup their rewards. Now, they can immediately receive tailored, transparent value at the time of purchase. This is only made possible with Affirm's AI-powered technology and real-time underwriting, and builds on what we do best: delivering customized payment options that help consumers take their money further." Today's consumers expect individualized experiences, especially when paying. Affirm has successfully met this need by offering payment solutions customized to each consumer's purchase and financial profile. Now, thanks to AdaptAI, Affirm's merchant partners can unlock additional value for shoppers right at checkout. Each of these bespoke offers translates into tangible consumer value, such as significant savings or added flexibility. Consider a $500 purchase: A merchant using AdaptAI could offer a first-time shopper a 0% APR promotion over 12 months, potentially saving that customer about $120 in interest compared to typical revolving credit card costs. Alternatively, that same merchant could offer its most loyal customers–who Affirm knows value predictability and more time to pay–an interest-bearing offer with extended repayment terms, tied to an event such as a Memorial Day sale. For these customers, spreading a $500 purchase out over 24 months at 10% APR might better align with their budgeting preferences, despite the added cost of about $4 per month in simple interest. This AI-driven nuance can allow merchants to meaningfully reward customers based on their real-time needs, boosting customer satisfaction and loyalty, and ultimately driving greater engagement and conversion. Affirm has leveraged AdaptAI across its own consumer products, including the Affirm App and Affirm Card, driving nearly 10% incremental improvements in conversion rates. Building on this proven success, Affirm is now making this powerful AI-powered promotions platform broadly available for its merchant partners. Merchants interested in offering these tailored benefits to their customers can get in touch here. About AffirmAffirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust, transparency, and putting people first — we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X. Rates from 0–36% APR. For example, a $800 purchase might cost $72.21/mo over 12 months at 15% APR. Payment options through Affirm are subject to an eligibility check, may not be available everywhere, and are provided by these lending partners: Options depend on your purchase amount, and a down payment may be required. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to a California Financing Law license. For licenses and disclosures, see AFRM-PR View source version on Contacts Press Contact: AffirmAndrea Hackettpress@ Sign in to access your portfolio
