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Sep 30, 2024
Affirm Q1 2025 Earnings Report
Affirm experienced accelerated growth and consistent credit outcomes, managing to a 3.8% RLTC as a percentage of GMV.
Key Takeaways
Affirm's FQ1 2025 demonstrated strong performance, with the company meeting or exceeding all metrics provided in the August outlook. GMV grew by 35% year-over-year, and active consumer growth accelerated for the third consecutive quarter. The company is on track to reach GAAP operating income profitability in FQ4 2025.
GMV grew 35% year-over-year to $7.6 billion.
Revenue increased 41% year-over-year to $698 million.
Active consumers increased 21% year-over-year to 19.5 million.
Active merchant count increased 21% year-over-year to 323,000.
Revenue by Segment
Forward Guidance
Affirm provided financial outlook for Fiscal Q2 2025 and Fiscal Year 2025. The company expects to achieve operating income profitability on a GAAP basis in FQ4'25 and plans to operate the business going forward in a manner designed to maintain profitability on this basis.
Positive Outlook
- GMV for fiscal Q2 2025 is expected to be $9.35 to $9.75 billion.
- Revenue for fiscal Q2 2025 is expected to be $770 to $810 million.
- Adjusted Operating Margin for fiscal Q2 2025 is expected to be 21 to 23 percent.
- GMV for fiscal year 2025 is expected to be more than $34 billion.
- Revenue for fiscal year 2025 is expected to be at least 20 basis points higher than FY'24 as a % of GMV.
Challenges Ahead
- Transaction Costs for fiscal Q2 2025 are expected to be $420 to $440 million.
- Transaction Costs for fiscal year 2025 are expected to be similar to FY'24 as a % of GMV.
- Revenue Less Transaction Costs for fiscal Q2 2025 is expected to be $350 to $370 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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