Affirm Holdings Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

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

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Good. I'll jump right in. You just reported results last week: another strong quarter of GMV growth, revenue growth. Maybe, talk about some of the highlights from the quarter; the things that stood out to you that may or may not be appreciated by the Street.

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : You gave me a lot to dig into there. The first thing you said that caught my ear was that things got stronger as the quarter went on; and even into April. Maybe, talk about that because the stock -- obviously, since you, guys, reported 4Q results or calendar 4Q results -- had sold off. There were concerns about consumer. What do you think is behind the strength?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Thinking about that, you, guys, sit in a very unique place in that you see a lot of consumer. You see demand on the purchase side, you see credit quality. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 8:30PM, AFRM.OQ - Affirm Holdings Inc at JPMorgan Global Technology, Media and Communications Conference As we roll through this year, what are some of the things you may look for that would give you a sign that, maybe, things are changing, credit-wise, or on the spending side? Like, what do you have to dispose of to think about and look at those things?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : That makes sense. You talked about both new account acquisition and engagement for existing accounts. I wanted to dig into that. Thinking about the existing accounts, would love to hear -- and this is a metric that has been increasing, like, almost every quarter -- how are people re-engaging with Affirm? Like, after they take out that first loan? Like, what does that look like? Maybe, talk about it, both off-Affirm card and on-Affirm card so we can see how people are interacting and whether there's a difference in the types of people that look at either.

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Speaking of card, we've talked about this in the past but, maybe, an update on how people are using it, whether it's pay now, pay later, financing? Are you seeing any patterns there? And then, maybe, talk about the economics of each to you? And how you, guys, think about it?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Got it. To this past quarter -- almost don't even ask you about it because we asked a hundred times on your earnings report -- There was a lot of concern, I'd say, about interest-free financing. It was a blurb in the shareholder letter and we, analysts, just attached to it. Tell me about that. Why have we overestimated the impact of that or overly concerned about that? Are you concerned about that, at all? Should we be concerned about that?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : When you said something -- at the beginning of that answer -- and it's a theme that you've talked about in the past, about reinvesting upside. I think your ROTC margin has been well above the long-term range for a while -- and you've always said -- hey, we're going to think about re-investing, never really happened. But this an example of that, taking some of that upside that you, guys, are earning right now and putting it back into --

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : You mentioned -- in the case with the 0% offer ,that it was something you did in the app. And that's something that I haven't talked about a lot. I know every now and then you get the question but there's a lot of latent potential, I think, in your app. Maybe, talk a little bit about what you guys can do, whether it's advertising, like what's the opportunity there within the app to get some merchant-funded type things or ways of monetizing that attention that you're getting from people?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Totally. That makes a lot of sense. I wanted to talk about two wins you announced this quarter. One was Costco. And that's very interesting. I didn't realize that non-members could buy stuff on costco.com but --

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Yes. It is cool. But I know that Costco -- they've got a really big co-brand program. And so, it's pretty interesting that they decided to bring you, guys, on. Maybe, talk a little bit about, like, how you convinced them that that made sense. And then, I don't know if you have competition at the point of sale with other BNPL providers, but, maybe, a little bit of insight on how that deal came together?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Is there anything to your knowledge that would preclude you from being used in the store?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : And to me, tell me if you disagree or not, I would think that that's a good brand, in terms of like getting the Affirm name out there; like, being on the Costco website means something, I would imagine.

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : I wanted to give you a chance to address questions about Walmart. I know earlier this year, one of your competitors announced a win with Walmart and there were a lot of confusion around what does it mean for Affirm? Is it exclusive? Is it not exclusive? As you understand it today and how things are playing out, what can you tell us about that relationship, that opportunity?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Thinking about the US landscape, obviously, a lot of attention feels like competition is heating up. I know you, guys, are unique in the sense that you provide both shorter duration financing and installment loans, as well. Maybe, talk about what you're seeing competitively and how your message is resonating with merchants today -- appreciate the fact that they can get everything done at Affirm. What's it like on the ground, competitively, right now?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : I lost my train of thought. I was going to ask you about. So we've talked a lot about the consumer side. Love to dig into the financing side. One of the things, I've covered you for a while and you know was initially skeptical of your underwriting. You weren't proven. But you, guys, have weathered the inflation storm, the rise in interest rate storm. Maybe, talk to us about how your funding partners responded to tariffs and their continued confidence in you, guys, like --

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Got you. We got 10 seconds left. I was going to try to squeeze one more in. How are you feeling?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Listen, real quick: I could have asked you questions for another 40 minutes or so, one or two things that we didn't talk about that you're super excited about?

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : We'll talk at dinner. And we'll write about it in the morning.

Question: Reginald Smith - JPMorgan Chase & Co. - Analyst : Good to see you, man.