Affirm Holdings stock finished nearly flat on Friday following the release of the company’s fiscal fourth-quarter financial results. Chief Executive Officer Max Levchin discussed the impact of elevated energy costs on consumer spending patterns during a media appearance, noting that households are taking notice of fuel prices at the pump.
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 levels when prices exceeded $4.50, though it remained elevated relative to pre-conflict baseline levels. The most recent date when the national average fell below $3 per gallon was March 2.
Levchin indicated that periods of inflationary pressure typically correlate with increased demand for buy now, pay later services, as consumers become more deliberate with their spending decisions. He acknowledged that while the broader consumer appears to be in reasonable health, sustained price pressures present longer-term concerns.
Affirm’s fiscal fourth quarter saw revenue reach $1.17 billion, surpassing analyst expectations of $1.11 billion as compiled by LSEG. The company projected first-quarter revenue in the range of $1.19 billion to $1.22 billion, above Street consensus estimates of $1.16 billion. Gross merchandise volume totaled $14.1 billion, comfortably exceeding the StreetAccount projection of $13.39 billion.
Economic data showed the annual inflation rate at 3.7% in July based on the personal consumption expenditures price index. The monthly PCE increase of 0.2% on a seasonally adjusted basis was accompanied by stronger-than-expected personal income growth of 0.4% and spending increases of 0.2% in July. Federal Reserve Chair Kevin Warsh and the policy committee are scheduled to determine their next course of action at a September meeting.
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