Affirm (AFRM) 7 Nov 24 2025 Q1 Earnings call transcript

Affirm Fiscal Holdings, a leading financial technology company, recently held its Q1 2025 earnings call, highlighting robust performance and positive outlook for the future. The call, led by CEO Max Levchin, COO Michael Linford, and CFO Rob O'Hare, provided valuable insights into the company's current state and strategic plans for the year ahead.

Strong Business Performance

The call began with a positive tone, emphasizing Affirm's strong business performance. The company reported a killer quarter, with revenue growth and a healthy margin. The management's confidence was evident, with plans for a successful holiday season and a focus on expansion across the Atlantic.

Revenue and Margin Improvements

Michael Linford discussed the factors driving revenue improvements, including the company's strong economics, the benefits from pricing initiatives, and the impact of capital markets on on-sale transactions. These factors have significantly contributed to the company's healthy revenue growth and margin improvements.

Strategic Investments and Growth

Affirm's management plans to reinvest some of the excess RLTC back into the business for growth. This strategy includes foregone revenue, 0% or APR incentive offers, and operating expense investments. The company is optimistic about its ability to continue driving growth while maintaining a healthy margin.

Competitive Landscape and Market Expansion

Affirm's entry into the U.K. market was a key topic of discussion. The company is confident about its competitive edge, citing the demand for longer-term payment products and its focus on simplicity and transparency. The management also highlighted the importance of regulatory compliance and the company's familiarity with regulators in the U.S.

Regulatory Scrutiny and Underwriting

Max Levchin addressed concerns about regulatory scrutiny and its potential impact on Affirm's growth. He reassured investors that the company is well-prepared, with a long history of engagement with regulators and a robust compliance infrastructure. The company is also committed to building its underwriting knowledge in new markets, leveraging its decade-long experience in the U.S.

Looking Ahead

The management expressed optimism about the company's future, with a focus on profitability and continued growth. They also highlighted the importance of maintaining a disciplined approach to risk management and underwriting, ensuring that the company continues to deliver value to its customers and stakeholders.

In conclusion, Affirm Fiscal Holdings' Q1 2025 earnings call painted a positive picture of the company's financial health and strategic direction. With a strong focus on growth, operational efficiency, and regulatory compliance, Affirm is well-positioned to capitalize on opportunities in the financial technology sector and drive long-term value for its stakeholders.