Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Will Nance - Goldman Sachs Group Inc - Analyst : All right. So been a lot of talk about buy now, pay later recently. I wanted to kick it off with a bigger picture question on Affirm. You've scaled Affirm into a profitable US consumer platform. You're putting up north of 30% growth. Merchants and consumers alike seem to be engaging with the product at an increasing rate, so higher transaction frequency with consumers, more merchant-sponsored offers to your customers. And on top of that, the company is now GAAP profitable. So where does Affirm go from here? And what do you think the end state looks like.

Question: Will Nance - Goldman Sachs Group Inc - Analyst : That's great. And then I want -- let's broaden out the conversation to the entire market because BNPL is one of the first like major changes in consumer spending patterns that we have seen. I want to get -- I want to post two scenarios about how the industry will evolve and then would love to hear your reaction. So scenario 1, which I'll call kind of closed loop V2 or the second coming of American Express, in this scenario, BNPL providers have significant user bases independent of the card networks. They become a force to be reckon with in payments. You've got a premium price, premium margins, and you have a differentiated customer experience around responsible credit. And merchants are willing to pay that price because of the AOV and conversion benefits that it generates.

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Scenario 2, which I'll call the second coming of private label credit cards, right. So here, retailers pit BNPL providers against each other in order to maximize the amount of credit they're willing to provide. They negotiate larger profit-sharing arrangements with the lender such that you're basically seeding the economics and the customer relationships to the merchant. And the financing solutions are basically interchangeable between providers. So what do you think determines the way that BNPL breaks over time?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : And I think a lot of the times when people talked about why accept American Express, it was getting access to that customer base.

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Do you find that --

Question: Will Nance - Goldman Sachs Group Inc - Analyst : So do you find that merchants are giving you credit for the significant user base that you have built and the idea that you can get access to that?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Yeah. Great. Okay. I wanted to maybe pivot to talk about the long -- from a long-term view to maybe talk about competitive dynamics in the market. So we've increasingly received the question around competition in the US. There's the situation with Walmart earlier as well as just a broad-based acceleration across the consumer lending category. So curious what you're seeing on the ground from a competitive perspective and your view on whether or not the market is kind of heating up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 10:05PM, AFRM.OQ - Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Yeah. Great. So then one element of the story that's gained a lot of traction and momentum in 2025 is the increase in merchant-funded offers for 0% installment loans. Can you talk about why this is happening now? And how much of it is kind of push versus pull between you and your merchant partners?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Yeah. No, I think -- so the over 90% growth in 0s is really strong this quarter, and I think part of that conversation is just it seems like a very positive thing. Like you've seen acceleration of volume. You've seen accelerated conversations and engagement with the merchants. People focus on the fact that the incremental economics are lower than your standard product. And I think you did a good job of focusing on less credit density, higher-quality customers. But how do you think about 0s just kind of being additive to the growth algorithm versus like a substitute for the core product?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Perfect. And I guess we haven't been through a cycle with the 0% offer at this level of scale. I think we think about marketing spend as being a lot more cyclical, but maybe discount's being a little bit more procyclical. So how do you think merchant's engagement with things like 0% could fare if the economy is weakening? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 10:05PM, AFRM.OQ - Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Got it. Okay. Switching gears a little bit. You have been at the forefront of developing the credit reporting practices for BNPL with a lot of the credit bureaus. Can you talk about why you think this is important and how you think this will impact consumer credit scores and broader credit availability?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Yeah. No, that makes sense. Okay. I want to pivot a little bit. The Affirm card has continued to scale in terms of users and customer transaction frequency. This is another column A, column B question. So on one hand, you can have the Affirm card as an offline extension to the online origination engine. So you capture more in-store financing use cases in the offline world. It's a big expansion of the TAM, and it allows you to reach nonintegrated merchants. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 10:05PM, AFRM.OQ - Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference Or alternatively, you can go after kind of a neobank or a primacy or a top-of-wallet relationship where you've got 100% of the spending spread across debit and credit and funded out of the Affirm money account and so on and so on. So how do you think about crossing the line from BNPL lender to neobank? And do you want to do that? And what are you watching internally to measure this?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Got it. All right. So sticking with the banking theme. Neobank or not, a lot of the major credit issuers in the country have elected to become at least a regulated bank mostly for funding benefits, so Amex, Synchrony, Ally and then even some of the newer entrants in the space with Square and SoFi in recent years. There's been some headlines around Revolut as well, I think, in the US. Can -- why not pursue this now given the change in the regulatory environment and the current administration?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Got it. Understood. Okay. So bank or not, you do offer the Affirm Money Account. There are some strategic benefits like customer loyalty as well as the financial benefits around the potential for transaction funding out of that account. Can you just provide an update on kind of where you are on the Affirm Money Account in terms of customer adoption and then just how you think about strategy and attach rates longer term?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Yeah. Got it. Okay. So pivoting to international expansion. How are you thinking about the opportunity in Europe today? What do you think will stay the same relative to Affirm's US business versus what do you think could be different about your international footprint in the future? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 10:05PM, AFRM.OQ - Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Hopefully, you can do it at the Goldman conference.

Question: Will Nance - Goldman Sachs Group Inc - Analyst : All right. Let's talk agentic commerce. So we're imagining a world where AI agents are executing against a consumer shopping goal. Where does that journey start? And how do you know if it ends up driving more volume for Affirm or ends up commoditizing payment stacks kind of across the industry as more of a back-end component of those transactions?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Great. I guess, on a related note, your DTC volume, both Affirm card and the in-app volumes continue to grow very rapidly. What role do you see the in-app shopping journey playing in the company longer term?

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Great. Got about 1.5 minutes left. You've referenced the FIS partnership or alluded to it several times, so sticking with the theme of distribution, and you've talked about your coverage footprint in the e-com world. When you think about the distribution on the consumer side that the FIS partnership can give you, could you talk a little bit about how you see that partnership scaling? And just any receptivity to the partnership from your conversation so far? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 10:05PM, AFRM.OQ - Affirm Holdings Inc at Goldman Sachs Communacopia & Technology Conference

Question: Will Nance - Goldman Sachs Group Inc - Analyst : Awesome. I'll hold you to it. Well, thank you. That's about all the time we have. But I appreciate you joining us, and thank you for your continued sponsorship at the conference.