Affirm Holdings released fiscal fourth-quarter earnings results, with the company’s stock closing nearly unchanged on Friday following the announcement. Chief Executive Max Levchin discussed the impact of elevated energy costs on consumer behavior during a media appearance, stating that shoppers are acutely aware of higher gas prices and are increasingly turning to buy-now-pay-later solutions to manage their expenses across multiple inflationary pressures.
Gasoline prices remained elevated in the market, with the national average standing at $4.09 per gallon as of Friday according to AAA tracking data. While this represented a decline from May levels when prices had climbed above $4.50, it remained substantially higher than prices seen before the Iran conflict. The most recent time the national average dropped below $3 per gallon was March 2.
Levchin indicated that periods of inflation typically drive increased demand for Affirm’s services, as consumers become more deliberate in their financial planning and seek tools to better manage discretionary spending. The executive acknowledged that while the broader consumer appears generally healthy, sustained inflationary pressures warrant monitoring for potential longer-term effects. Economic data released during the period showed the annual inflation rate at 3.7% in July based on the personal consumption expenditures price index, the Federal Reserve’s preferred measurement. The PCE rose 0.2% on a seasonally adjusted basis in July, while personal income increased 0.4% and consumer spending rose 0.2%, both exceeding prior expectations.
Affirm’s financial results demonstrated strength across key metrics. The company reported fourth-quarter revenue of $1.17 billion, surpassing the $1.11 billion estimate from LSEG. Management provided forward guidance for fiscal first-quarter revenue between $1.19 billion and $1.22 billion, above the Street expectation of $1.16 billion. Gross merchandise volume reached $14.1 billion, significantly exceeding the $13.39 billion StreetAccount projection.
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