Affirm Holdings reported fiscal fourth-quarter results with stock closing nearly unchanged on Friday. The buy-now-pay-later company posted revenue of $1.17 billion, surpassing the consensus estimate of $1.11 billion from LSEG. For the upcoming fiscal first quarter, management provided guidance of $1.19 billion to $1.22 billion in revenue, exceeding Street expectations of $1.16 billion.
Gross merchandise volume reached $14.1 billion, significantly outperforming the StreetAccount expectation of $13.39 billion. CEO Max Levchin attributed part of the company’s performance to consumer demand for financial management tools amid inflationary pressures. He noted that shoppers are increasingly thoughtful about spending decisions when facing elevated costs across the economy.
The national average gas price stood at $4.09 per gallon as of Friday, according to AAA data. While this represented a decline from May when prices exceeded $4.50, it remained considerably higher than pre-conflict levels. The most recent inflation data showed an annual rate of 3.7% in July based on the personal consumption expenditures price index, the Federal Reserve’s preferred forecasting metric. The PCE increased 0.2% on a seasonally adjusted basis in July, though other indicators demonstrated consumer resilience, with personal income rising 0.4% and spending increasing 0.2%, both exceeding expectations.
Levchin acknowledged that despite general consumer health, sustained pricing pressures present long-term concerns. He characterized the inflationary environment as creating opportunities for buy-now-pay-later services, as consumers seek assistance managing costs across various sectors. Federal Reserve Chairman Kevin Warsh and the committee are scheduled to determine their next policy course at a meeting later this month.
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