Affirm Holdings, a buy now, pay later platform, released fiscal fourth-quarter results with revenue of $1.17 billion, exceeding analyst expectations of $1.11 billion. The company also provided first-quarter guidance of $1.19 billion to $1.22 billion, ahead of Street consensus forecasts of $1.16 billion. Gross merchandise volume reached $14.1 billion, surpassing StreetAccount projections of $13.39 billion. The company’s stock closed nearly unchanged on Friday following the earnings announcement.
During an interview, CEO Max Levchin highlighted the impact of elevated gasoline prices on consumer behavior and spending decisions. He noted that U.S. consumers were acutely aware of gas price levels and were turning to Affirm’s services to manage costs across various inflationary pressures. The national average gas price stood at $4.09 per gallon as of Friday, down from May when prices exceeded $4.50 but remaining significantly higher than levels prior to regional geopolitical tensions.
Levchin indicated that periods of elevated inflation generally drove increased demand for the company’s buy now, pay later services, as consumers became more deliberate in budgeting decisions. He acknowledged, however, that while the overall consumer remained relatively healthy, sustained pricing pressures posed longer-term concerns worth monitoring. The July annual inflation rate measured 3.7% according to personal consumption expenditures data, the Federal Reserve’s preferred inflation gauge. The seasonally adjusted PCE increased 0.2% in July, while personal income rose 0.4% and consumer spending increased 0.2%, both outpacing expectations.
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