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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.
Affirm
Affirm
Affirm Revenue by Segment
Revenue by Segment
Merchant Network Revenue
CapyFin.comInterest Income Revenue
CapyFin.comLoan Sales Gain Revenue
CapyFin.comServicing Income Revenue
CapyFin.com 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 Less Transaction Costs for fiscal year 2025 is expected to be at least 20 basis points higher than FY'24 as a % of GMV.
- Weighted Average Shares Outstanding for fiscal Q2 2025 and fiscal year 2025 are expected to be 322 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income