Affirm Holdings Inc Q1 2026 Earnings Call Transcript

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

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Great results. You've forgot one Chief fan, which is me, that's on the call. So guys, great quarter as always. Some companies are pointing towards the tricolor situation and are blaming that for poor execution in the funding markets, yet Affirm seems to be executing so well including that ABS deal that you just priced. So maybe any thoughts on what's happening in the funding market, and why you're still able to execute so well in the face of all these news. And great stuff again.

Question: Nate Svensen - Deutsche Bank - Analyst : Nice results. I did want to ask about the PSP relationships. Obviously, you announced the Worldpay for platform signing. You had a nice little blurb in the letter on this. I think it would be helpful to hear a little bit more about how you're thinking about that PSP strategy holistically, what you're doing to expand those relationships, what we might expect to see in the future?

Question: Cassie Chan - Wells Fargo Securities LLC - Analyst : This is Cassie Chan on for Jason. I just wanted to ask or get a finer point on the RTC trend as a percentage of GMV. I mean First, can you just -- obviously, you guys had a really good quarter for that, around 4.2%. Can you just put a finer point in terms of why your full-year '26 guide is unchanged for that metric? And based on your second quarter guide, you're expecting that to be like near 4%. So is it fair to assume that's decelerating in the back half of the year? And are there any particular factors that we should be looking for just because of that, i.e., is there a Walmart, higher 0%? Like, are those the factors that are contributing to those trends?

Question: Daniel Perlin - RBC Capital Markets Inc - Analyst : I just wanted to ask, clearly, the data seems to be suggesting at least your data is that the spending environment for the consumer remains pretty da*n healthy. I know you called out sporting goods and outdoor and those kinds of things. But when you also look at the 30-day delinquency trends, it would just continue to suggest that they're relatively healthy. So the question really that I have is that a function more of natural selection for your underwriting and your technology that you're able to use per user? Or do you really think and see the overall health of kind of the less affluent consumer being as strong as what your data suggests.

Question: Harry Bartlett - Rothschild & Co. - Analyst : Nice quarter. I just want to touch on PSPs. I mean I just -- perhaps maybe you can talk about the economics here whether there's any difference between what you do with kind of direct merchant integrations when you're kind of enabled as default. And also, how are you thinking about PSP as part of your international expansion, whether this kind of accelerates that process.

Question: Moshe Orenbuch - TD Cowen - Analyst : Great. So very gratifying another 0.5 million Affirm card members in the quarter. Could you talk a little bit about what the factors are that drive how rapidly that can penetrate. And maybe since you did mention that you're testing cash flow underwriting, what kind of impact that could have on your ability to approve transactions and see growth in volume per card?

Question: Robert Wildhack - Autonomous Research. - Analyst : Nice to see the Amazon agreement extended, including HP, there's only a brief description in there. So I was just wondering if you could give us some more color on that extension broadly, how that conversation progressed. And anything new or interesting that might have come out of the new agreement?

Question: Robert Wildhack - Autonomous Research. - Analyst : Okay. And then the slide 16 with the merchant fee rates. It does look like that the core 0% longer-term rates or the yellow line the only one that's trending a little bit lower the last few quarters. Could you just give us some more color on what's going on there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, AFRM.OQ - Q1 2026 Affirm Holdings Inc Earnings Call

Question: Adam Frisch - Evercore Inc - Analyst : Okay. Great. Roughly half of the GMV growth this quarter came from direct point-of-sale merchant integrations and one-third from direct to consumer. So just wondering how you see that mix evolving through the next few quarters, particularly as wallet partners scale. Nice job on the quarter.

Question: James Faucette - Morgan Stanley - Analyst : I wanted to follow up just on that 0%. I mean, first, I guess, is -- but they were very interesting statistics in the release about the FICO uplift you see when new Affirm users that Affirm users that land initially with 0%. I'd love to hear how you think about how aggressively you intend to lean in there? And what you think the mix of 0% can be over a multiyear period? And also, just anything you can share from you're zero days learning and kind of what the -- we noticed that you'd held it, but kind of what was the intentions there? And what are we trying to drive, et cetera? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, AFRM.OQ - Q1 2026 Affirm Holdings Inc Earnings Call

Question: John Hecht - Jefferies LLC - Analyst : Good quarter. I don't think you guys disclosed as much on AOV as you used to, and maybe it's not as important of a factor. But I'm wondering -- I know the transaction count per customer is up pretty meaningfully year over year. I'm wondering if you can just talk about kind of the interaction types, our -- the characteristics of the transaction is changing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, AFRM.OQ - Q1 2026 Affirm Holdings Inc Earnings Call Have they been consistent? I remember a couple of years back, you were talking about how for instance, groceries was a growing element of what the customers are using. Any trends there that are worth just pointing out?

Question: Jeffrey Cantwell - Seaport Research - Analyst : Most might have been asked. Wanted to ask you, can you maybe talk about your operating margins. The full-year guide now more than 7.5%. Last quarter, you guided the full year is more than 6%. So that's coming up. My question is, where is the additional operating leverage coming from? What are you leaning into there? And then just wanted to ask you one on the expenses. Do you mind giving us a feel for what to expect for G&A sales and marketing type of data analytics? And how does it look over the remainder of the year? I just want to make sure we have them right in our models.

Question: Jeffrey Cantwell - Seaport Research - Analyst : Got it. give a shot. The related one, on your GMV in Q2, the guidance range there, it's $13 billion to $13.3 billion. There's a lot of moving pieces to the business. So just a follow-up to Adam's question. Maybe talk a little bit more about the GMP guide and how that might break out in terms of contribution from interest-bearing versus Corex versus NX, et cetera. Where you're seeing growth the strongest right now as you think about the volumes this quarter? And any further thoughts on the remainder to would be great as well.

Question: Zachary Gunn - FT Partners - Analyst : So I just wanted to ask on the product side. So we've seen some earned wage access companies talk about pushing in the BNPL, and that it's a very logical area given the amount of overlap they see with customers using EWA and BNPL. And just given the focus and traction that you all have with the firm card and these kind of consumer products, was there a world where a firm could look at EWA as a potential product down the road? Or just curious if that's on the road map or something that's been thought about at all.

Question: Joel Rakers - William Blair - Analyst : Attach for the Affirm card seems to be kind of steadily marching higher. And I was just kind of curious if you could give us some insight around what you're observing in terms of top-of-wallet behavior on the Affirm card. And if there's any kind of like substitution dynamic that you're seeing versus traditional bank cards. That's my first question.

Question: Joel Rakers - William Blair - Analyst : Awesome. And then just as a last question, and just as it relates to the Amazon partnership, and I guess, the Shopify partnership, are you able to quantify like what share cart looks like today with those partners? Just so we kind of have an idea of like what the upward potential looks like for those opportunities going forward.

Question: Reginald Smith - JPMorgan Chase & Co - Analyst : Great quarter, guys. I'm multitasking tonight, so I apologize in advance, this question has been asked. But I was curious, as you guys move into, I guess, kind of different verticals and you highlighted service tightening and I guess, like automotive repair and things like that. As you move into like these services, how, if any way, does that change your underwriting? So obviously, you're underwriting the consumer, but I would imagine there's some risk related to the actual service provider as well. So I was curious how you guys think about that in my am I off-base with that? Or just if there's any changes that need to happen with the underwriting as you consider those factors.

Question: Reginald Smith - JPMorgan Chase & Co - Analyst : Now that's kind of what I expected. Listen, great quarter, and I appreciate the insights as always, guys.

Question: James Friedman - Susquehanna Financial Group LLLP - Analyst : I wanted to ask about the continued hyper growth that you're seeing in 0% APRs. And if there's any way to observe the -- not only the behavior of where those are going in terms of your travel or larger ticket items, but the profile of those cohorts, like were they on the platform previously and moving here? Are they new to the platform? And any demographic data that you might have about them? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, AFRM.OQ - Q1 2026 Affirm Holdings Inc Earnings Call

Question: James Friedman - Susquehanna Financial Group LLLP - Analyst : Okay. And then if I could just ask about the RLTC rising 48 basis points to 4.2%. And I know that this was asked earlier, but -- and I know your goal is to like reinvest that. But some of that actually according to the shareholder letter was related to provision -- better provision performance. So yes, so I guess my question is, if you have any perspective as to when you'll return to that targeted range of 3% to 4%, that would be helpful.