Affirm Holdings, Inc. Stock Price, News & Analysis

Affirm Holdings (NASDAQ: AFRM), a payment network focused on consumer empowerment and merchant growth, has announced its fiscal 2025 second quarter results for the period ending December 31, 2024. The company has made its detailed financial results and shareholder letter available through the SEC Form 8-K filing, which can be accessed in the 'Events and Presentations' section of Affirm's investor relations website.

The company will discuss these results during a conference call and webcast scheduled for 5:00pm ET, led by Founder and CEO Max Levchin, COO Michael Linford, and CFO Rob O'Hare. The webcast will be available live and as a replay on the company's investor relations website.

FICO and Affirm have released findings from a groundbreaking 12-month study analyzing the impact of including 'Buy Now, Pay Later' (BNPL) loans in FICO® Scores. The research, which examined over 500,000 consumers with Affirm BNPL loans, revealed that FICO's innovative treatment of BNPL data can lead to score improvements for some borrowers while enhancing model performance.

Key findings show that for over 85% of consumers, score impacts were within +/- 10 points. Notably, consumers with five or more Affirm BNPL loans experienced higher scores or no changes. FICO developed a proprietary approach that aggregates multiple BNPL loans when calculating certain variables, effectively capturing predictive signals while potentially increasing scores for some BNPL users.

Based on these results, FICO is developing a solution to implement its proprietary treatment of BNPL data in the credit-scoring marketplace.

Affirm Holdings (NASDAQ: AFRM) has announced its participation in two upcoming investor conferences. Libor Michalek (President) and Rob O'Hare (CFO) will attend the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 4, 2025. Michalek will participate in a fireside chat at 4:50pm PT.

Additionally, CFO Rob O'Hare will attend the Wolfe FinTech Forum in New York on March 11, 2025, where he will participate in a fireside chat (time to be announced). Both events will be webcast live on Affirm's investor relations website, with replays available for a time after each conference.

Affirm Holdings (NASDAQ: AFRM) and Liberty Mutual Investments (LMI) have expanded their forward flow loan purchase program through June 2027. Under the expanded agreement, LMI will purchase Affirm's installment loans up to $750 million outstanding, with expectations to invest up to $5 billion in the program over time.

The partnership, which began in 2019, strengthens Affirm's funding model, which includes warehouse facilities, forward flow agreements, and asset-backed securitizations. As of September 30, 2024, Affirm's total funding capacity reached $16.8 billion, growing over 50% in two years. The company serves more than 19 million active consumers and generated over $28 billion in gross merchandise volume for the twelve months ending September 30, 2024.

Affirm Holdings (NASDAQ: AFRM) has announced it will release its second quarter fiscal year 2025 shareholder letter and financial results on February 6, 2025, after market close. The company will host a conference call and webcast at 5:00pm ET the same day, featuring presentations from Founder and CEO Max Levchin, COO Michael Linford, and CFO Rob O'Hare. The results will be available on Affirm's investor relations website, with a replay accessible following the call.

WooCommerce has designated Affirm (AFRM) as a leading pay-over-time provider, expanding their decade-long partnership. The integration will make Affirm a default payment option for merchants using WooPayments across the U.S. and Canada. Merchants will soon be able to offer Affirm's customized pay-over-time plans, including the new Pay in 30 offering alongside existing biweekly and monthly installment options.

WooCommerce reported a 45% increase in merchants using Affirm this year, with higher average order values for merchants using Affirm compared to those who don't. The partnership aims to expand Affirm's reach particularly among small and midsized businesses, offering consumers flexible payment plans without late fees or compound interest.

Affirm (NASDAQ: AFRM) has expanded its partnership with Adyen, becoming the first Buy Now, Pay Later (BNPL) provider to support Adyen for Platforms. The expansion brings Affirm's monthly installments to Adyen merchants in Canada and extends BNPL services to platform businesses like peer-to-peer marketplaces and crowdfunding platforms.

The partnership, launched in November 2020, has seen average annual volume increase by more than seven times from 2021 to 2023. Affirm offers consumers flexible payment plans ranging from six weeks to 36 months with 0% APR options and no late or hidden fees. Notable success includes AffiniPay, which has processed over $125 million in payments through Affirm's Pay Later solution.

Affirm Holdings (NASDAQ: AFRM) has priced an upsized private offering of $800 million 0.75% Convertible Senior Notes due 2029. The notes will bear interest at 0.75% annually, payable semiannually, and mature on December 15, 2029. The initial conversion rate is 9.8992 shares per $1,000 principal amount, equivalent to approximately $101.02 per share, representing a 42.5% premium.

The company expects net proceeds of approximately $785.2 million, which will be used along with cash on hand to repurchase about $960 million of its 2026 notes for $892.8 million. Additionally, Affirm plans to repurchase 3,526,590 shares of Class A common stock for approximately $250 million at $70.89 per share.

Affirm Holdings (NASDAQ: AFRM) announced plans to offer $750 million in Convertible Senior Notes due 2029 through a private offering, with an option for initial purchasers to buy an additional $112.5 million. The company intends to use the proceeds to repurchase a portion of its 2026 notes and up to $300 million of its Class A common stock. The Notes will mature on December 15, 2029, and will be convertible under specified conditions. Upon conversion, Affirm will pay cash up to the principal amount and may deliver additional consideration in cash, stock, or a combination thereof.