Affirm Holdings (AFRM, Financials) delivered a strong fiscal second quarter, reporting accelerating customer growth, robust revenue performance, and strategic progress in its UK expansion.
Closing at $61.75, the stock dropped 1.7% on Thursday but rose 15% in after-hours trading to $70.99 as investors responded favorably to the company's expanding 0% APR loan offers and capital market execution.
Emphasizing Affirm's achievement in growing its 0% APR loan offers, CEO Max Levchin underlined their importance in raising consumer involvement and thereby boosting merchant sales. He also highlighted the Affirm Network Syndication approach of the business, which seamlessly lends using financing offers combined across the Affirm app, card, and wallets. Although 0% loans are somewhat margin-dilutive, CFO Rob O'Hare said that they remain a major factor influencing customer uptake and long-term company development.
Particularly in the UK, Affirm's global development gained steam in Q2. To assist Shopify grow its activities in the area, the firm declared it as a significant business partner. Levchin pointed out the great demand for longer-term financing choices, like 24-month installment loans. COO Michael Linford, meanwhile, emphasized the company's capital market performance and mentioned a significant alliance with Sixth Street likely to grow in the second half of fiscal 2025.
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