Affirm Holdings stock concluded trading nearly flat following the release of fiscal fourth-quarter results and remarks from Chief Executive Max Levchin regarding macroeconomic pressures on consumers. Speaking to CNBC’s “Squawk Box,” Levchin acknowledged that elevated gasoline prices represent a significant headwind for American shoppers, prompting them to seek assistance from Affirm’s services to manage expenses across multiple spending categories.
The national average gasoline price stood at $4.09 per gallon as of Friday, according to data from AAA. This represented a decline from May, when prices exceeded $4.50 per gallon, though it remained substantially elevated compared to levels preceding geopolitical tensions. Levchin observed that during periods of elevated inflation, consumer demand for buy now, pay later services typically increases, as households become more deliberate in their purchasing decisions and budgeting practices.
The broader economic environment showed mixed signals heading into a Federal Reserve policy decision scheduled for September. The annual inflation rate measured 3.7% in July based on the personal consumption expenditures price index, the Fed’s preferred gauge. While the PCE increased a seasonally adjusted 0.2% in July, other indicators demonstrated resilience, with personal income rising 0.4% and consumer spending climbing 0.2%—both exceeding forecaster expectations. Levchin cautioned that sustained price pressures could pose longer-term concerns for the economy.
Affirm’s financial results exceeded analyst expectations across multiple metrics. The company reported fourth-quarter revenue of $1.17 billion, surpassing the LSEG consensus estimate of $1.11 billion. Gross merchandise volume reached $14.1 billion, comfortably exceeding the StreetAccount projection of $13.39 billion. Looking forward, Affirm issued first-quarter revenue guidance between $1.19 billion and $1.22 billion, positioned above Street expectations of $1.16 billion.
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