Affirm Q3 2026 Earnings Report

Affirm EPS Results

• Actual EPS: $0.30
• Consensus EPS: $0.17
• Beat/Miss: Beat by +$0.13
• One Year Ago EPS: $0.01

Affirm Revenue Results

• Actual Revenue: $943.95 million
• Expected Revenue: $995.27 million
• Beat/Miss: Missed by -$51.32 million
• YoY Revenue Growth: +32.70%

Affirm Announcement Details

• Quarter: Q3 2026
• Date: 5/7/2026
• Time: After Market Closes
• Conference Call Date: Thursday, May 7, 2026
• Conference Call Time: 5:00PM ET

Affirm (NASDAQ:AFRM) is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout. The company emphasizes transparent pricing and underwriting that leverages transaction- and credit-related data to assess borrower creditworthiness.

Founded in 2012 and headquartered in San Francisco, California, Affirm has grown from a single-product startup into a broader payments and lending platform for consumers and retailers. The firm completed its initial public offering in January 2021 and has since pursued partnerships with large e-commerce platforms and retailers to expand the availability of its financing options. While Affirm’s primary market is the United States, it has worked to extend its services internationally through strategic partnerships and expansions with merchants that sell across borders.

Affirm’s management and technology focus on combining underwriting, payment processing and user experience to drive higher conversion and purchase sizes for merchants while offering consumers predictable repayment terms. The company is led by founder and chief executive Max Levchin, who has been a public face of the business since its founding. Affirm competes with traditional credit-card issuers, other BNPL providers and fintech lenders by positioning its products as a transparent, easy-to-use alternative to revolving credit and payday-style options.

Affirm Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Funding market remains very constructive with deep demand, oversubscribed ABS/forward-flow deals and tightening spreads, helping funding costs fall about 125 bps year‑over‑year.
• Positive Sentiment: Affirm reports stable credit metrics for the consumers it underwrites—delinquencies are not deteriorating and elevated prepayments (seasonal) raised the allowance rate but are viewed as a positive credit signal.
• Positive Sentiment: GMV growth accelerated alongside a 44% increase in active merchants, rising app engagement and 4.4 million cardholders, which together are lifting transactions per active and repeat usage.
• Neutral Sentiment: Pay‑in‑X / 0% volume is the fastest‑growing segment (including a large program moving to evergreen 0%), which boosts conversion but has lower RLTC margin per loan even as credit costs tend to be lower.
• Positive Sentiment: Investment in agentic AI has meaningfully increased development velocity with only low single‑digit‑million quarterly costs reported, and the company said it is not planning AI‑related layoffs.

Presentation

[Operator]

Good afternoon. Welcome to the Affirm Holdings, Inc third quarter fiscal 2026 earnings call. Following the speaker's remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded, and a replay of the call will be available on our Investor Relations website for a reasonable period of time after the call. I'd now like to turn the call over to Zane Keller, Head of Investor Relations. Thank you. You may begin.

[Zane Keller, Head of Investor Relations at Affirm Holdings, Inc]

Thank you, operator. Before we begin, I would like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our investor relations website. The actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP financial measures. These measures should be considered as a supplement to, and not a substitute for, GAAP financial measures. For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings supplement slide deck, which is available on our investor relations website.

[Zane Keller, Head of Investor Relations at Affirm Holdings, Inc]

Hosting today's call with me are Max Levchin, Affirm's Founder and Chief Executive Officer, Michael Linford, Affirm's Chief Operating Officer, and Rob O'Hare, Affirm's Chief Financial Officer. In line with our practice in prior quarters, we will begin with brief opening remarks from Max before proceeding immediately into questions and answers. Before we begin the call, as a reminder, we will be hosting our 2026 Affirm Investor Forum next week on Tuesday, May 12 from 2:00 P.M. until approximately 5:00 P.M. Eastern Time. The event will be available to the public via live cast on our Investor Relations website. We will also publish a replay on our website after the event ends. With that, I'll turn the call over to Max to begin.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Thank you, Zane. Fiscal Q3 was another one for the record books. Given this streak, one could be forgiven if one thought this is actually pretty easy. That's all because the fantastic Affirm team is starting to make it look that way. It is not, in fact, easy, and we're very proud of this particular quarter. As Zane said, I look forward to seeing many of you in person at the Investor Forum next week. On that note, back to you, Zane.

[Zane Keller, Head of Investor Relations at Affirm Holdings, Inc]

Thanks, Max. Okay, let's get to your questions. Operator, please begin the Q&A session.

[Operator]

Thank you. We will now be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Jason Kupferberg with Bank of America. Please proceed with your question.

[Cassie Chan, Analyst at Bank of America]

Hey, guys. This is Cassie Chan on for Jason. You know, great quarter. I just wanted to ask, I guess, you know, first on the private credit side and in general on credit. You know, it seems like the delinquencies were pretty stable this quarter. I guess, is there anything that you're seeing in terms of changes or slowdowns in credit? You know, obviously unease in private credit seems to be a theme, but are you guys seeing any issues or changes on the funding side of the business? Thank you.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I'll start with the credit side. Michael will pick up the funding side. No, we are not. At this point, I think we've earned the right to say the Affirm consumer, and so these are not comments on the universe or even North America or United States consumer, but people that we choose to underwrite and lend to, we are not seeing deterioration. We're not seeing any disturbances in the force, which naturally translated to a very stable and pleasant funding environment for us. Michael, can you tell me more?

[Michael Linford, COO at Affirm Holdings, Inc]

Yeah. The funding market broadly remains exceptionally constructive for us. We're kinda outta adjectives to describe just how great the execution has been. I know a lot of ink is being spilled elsewhere about what's going on in the capital markets. From our perspective, we see a market that's very deep. We see sustained and reducing spreads, we see deals with significant oversubscription along with forward flow partners who are, you know, if anything, still clamoring for a bigger allocation of our portfolio. We see the market as being very constructive to us and a key part of the reason why we feel there's so much tailwind in the business.

[Cassie Chan, Analyst at Bank of America]

Thank you.

[Operator]

Our next question comes from Nate Svensson with Deutsche Bank. Please proceed with your question.

[Nate Svensson, Analyst at Deutsche Bank]

Hey, guys. Thanks for the question. Congrats on the record number of Lebowski references in the letter.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Thank you.

[Michael Linford, COO at Affirm Holdings, Inc]

Thank you.

[Nate Svensson, Analyst at Deutsche Bank]

Yeah. Yeah. Yeah. Anyway, sorry. I wanted to ask on the upcoming Big Nothing. Going through the transcript last quarter, Max, you were obviously pretty effusive about all the first order and derivative benefits from that event, things like cardholder sign-ups. I assume directionally you're expecting a lot of the same things. On the call last quarter, you also talked about getting better and smarter as you do more of these. I guess the question is around what ways you think you got better and smarter, and maybe what are some of the incremental changes or initiatives we should be on the lookout for the event next week?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I don't really wanna reveal all the surprises, to be completely honest, but I appreciate the kind words and we did get smarter. I think probably if you wanna sort of look for breadcrumbs, we got smarter about targeting. That certainly. It's less about sort of sitting down in a lab somewhere and trying to come up with ideas, much more about looking at the data we gathered in the last The Big Nothing and just using all the same ML AI techniques we have here to ask the question, what's the least costly, highest probability of conversion for any one SKU, any one consumer, any one merchant, et cetera. It'll get more efficient. That's certainly the case. We got smarter kind of qualitatively.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I think we really underplayed the event itself in the early hours and kind of had to play a little bit of a catch-up on the marketing side of things, and this won't happen this time. We will hit the ground running with just promoting it correctly to all the right people, again, maximizing the effective per dollar yield for our merchant partners. We expect to be even more satisfying to those who are paying for these deals.

[Nate Svensson, Analyst at Deutsche Bank]

Thanks. Excited to look out for it.

[Operator]

Our next question comes from Bryan Keane with Citi. Please proceed with your question.

[Bryan Keane, Analyst at Citi]

Yeah, guys, can you give us some insights on the ABS market, the deal in March, and then, the recent deal, what's going on with spreads and demand for you guys?

[Michael Linford, COO at Affirm Holdings, Inc]

Yes, thanks for the question. You know, I think we've executed three deals so far this year, two revolving deals in the quarter, and then we just priced a static deal we haven't yet closed on. The trend really across all three is incredible depth, you know, lots of oversubscription in these deals and continued and sustained tightening of spreads. To, you know, a key part of the reason why you see funding costs down on the order of 125 basis points year-on-year. Obviously, benchmark rates are down as part of that, but you're also seeing spreads coming in at the same time. It's just really a reflection of the capital markets demand for our asset and our team's ability to execute despite quite a bit of economic volatility and headlines out there.

[Michael Linford, COO at Affirm Holdings, Inc]

We feel like the market is just extremely constructive for our name.

[Bryan Keane, Analyst at Citi]

Yeah, it just feels like they're starting to recognize maybe the differences between your credit versus others and the short duration and obviously the quick turn. It looks like the market's starting to recognize that, so it's good to see.

[Michael Linford, COO at Affirm Holdings, Inc]

Yeah. The short duration of our asset is a huge advantage, and it's taken us a long time to earn that. We've also done a really good job, I think, in engaging the investor base and bringing on board over the years, a wider set of investors. That's really important for the depth of the market that we play in. It's a key channel for our long-term growth. Also the more broad of the investor base you bring on, the better you could get on pricing.

[Bryan Keane, Analyst at Citi]

Yeah. Okay, great. Congrats on the results.

[Michael Linford, COO at Affirm Holdings, Inc]

Thank you.

[Operator]

Our next question comes from Rob Wildhack with Autonomous Research. Please proceed with your question. Looks like we don't have him. Let's go to the next question. Our next question comes from Moshe Orenbuch with TD Cowen. Please proceed with your question.

[Moshe Orenbuch, Analyst at TD Cowen]

Great, thanks. I noticed that, growth in the Pay-in-X has, you know, is your fastest-growing segment now. Are there different either programs or, you know, kind of merchant partnerships or anything that, you know, is kinda driving that? Do we think that's gonna continue into, you know, fiscal Q4?

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Yep. Hi, Moshe, this is Rob. We do expect that trend to continue into fiscal Q4. I think the answer was largely in your question. We did have one very large program move to having an evergreen 0% via Pay-in-4 offer. That definitely drove a bit of the uptick. Then we also continue to see most of our Pay-in-4, Pay-in-X volume coming from the Shopify program, which continues to grow nicely. A bit of sort of business as usual there, then we did have one large program make a change to their financing program, which we think is a real positive.

[Moshe Orenbuch, Analyst at TD Cowen]

Thanks, Rob.

[Operator]

Our next question comes from Ramsey El-Assal with Cantor Fitzgerald. Please proceed with your question.

[Ryan Campbell, Analyst at Cantor Fitzgerald]

Hi, this is Ryan on for Ramsey. Thanks for taking our question today. I wanted to ask about the active merchant count, which went up by 44%, accelerating beyond a strong Q2. Where or what is the largest opportunity for to add more merchants? How penetrated is the market, not in terms of consumer usage, but in terms of merchant presentment for BNPL? Thank you.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I mean, I think in terms of merchant count, we're still looking at some of our largest platform partners as the biggest accelerant to growing our current merchant base. Some of the big PSPs where we have relationships as well as large merchant platforms like Shopify, those have been really additive to our merchant base overall. I think in terms of presentment, you know, we still feel like it's really, really early innings in terms of presentment. Obviously, we have a brand-new program with Intuit, and there's lots of optimizations to do within that merchant base. That's an enormous universe of merchants that we're just scratching the surface on, and it's very early days in that program.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

There's countless other examples across our portfolio, but I think in terms of the partnerships that drive some of these big merchant counts, I think we still have plenty of room to optimize how we show up on the end merchant site.

[Ryan Campbell, Analyst at Cantor Fitzgerald]

Great. Thank you. Looking forward to hearing more at the Investor Forum.

[Operator]

Our next question comes from Harry Bartlett with Rothschild & Co Redburn. Please proceed with your question.

[Harry Bartlett, Analyst at Rothschild & Co Redburn]

Hey, guys. Thanks for the question. I just wanted to touch on the kind of agentic codes development point in the shareholder letter. You know, you cited the kind of noticeable ramp in agentic written code, and it looks like you're kind of doing double the amount of requests that you were doing previously. Could you talk about this broadly in terms of, you know, how you're thinking maybe costs will develop versus how they developed historically, or whether you kind of see this more as a vehicle for more rapid product development? Thank you.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

This is very tempting to turn this into a 15-minute answer in the finer points of software development, which I am personally invested and involved in. The shorthand, first of all, and I will rely on Rob in a second to maybe try to even quantify it, but it's unequivocally accretive to the bottom line to use AI the way we are. This is a net strongly positive. The fact that we are increasing our development velocity is just incredibly strong for our bottom line and then some. The actual mechanics of development using agentic, the processes and et cetera, we're pretty unique, and we feel pretty great about where we are and where we're headed.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

If you ever read the fine print of, you know, the likes of ChatGPT or Gemini, there's a little thing at the bottom that says, "AI makes mistakes. Basically, you're on your own." We don't really have the luxury of putting that in our code. If we make an underwriting mistake, if our engine somehow treats some consumer unfairly, or if we're off by a penny here and there, like, none of that is okay. As much as we can and do use these tools, there are still many unique to Affirm checks and balances and processes that ensure that what we ship is of the same or higher quality than what we did before these tools came around. We spent quite a lot of time getting there, gaining the confidence, testing it.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

The reason we had this sort of a uncork it moment early in the year is because we felt that we were ready to mass deploy it internally and have so far been very pleased with what's transpired. We'll definitely do more. I'm sure our engineering leadership is listening/reading these letters, and I don't think anybody is begrudging me the right to say, we think we can connect this productivity further. You know, it's very early days. We're very excited about it. We have no shortage of things we want to build, and therefore, humans that are both the creators of ideas, the arbiters of good taste, and the ultimate responsibility carriers for this no errors, no fine print, no bugs, are still very necessary.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We don't anticipate any sort of a decimation of the engineering team, but we are certainly very excited to give each one of our engineers basically superpowers. I don't know if Rob has any additional cost points to make.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Yeah. In terms of the cost, I mean, they did obviously show up in the P&L this quarter. They'll continue into Q4 as well. Wouldn't say it's a material impact to the P&L overall. It's sort of very low single-digit millions per quarter in terms of spend. To Max's point, I mean, we're seeing a lot of efficiency. Spending money on developer tools is something we've always done. We're just thinking about ways to make sure that on a holistic basis, that all-in budget makes sense for us and that we're seeing efficiency and lift from the entire portfolio of tools that we're employing.

[Harry Bartlett, Analyst at Rothschild & Co Redburn]

Super helpful. Thank you.

[Operator]

Our next question comes from Rob Wildhack with Autonomous Research. Please proceed with your question.

[Rob Wildhack, Analyst at Autonomous Research]

Hey, can you guys hear me this time?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Yeah.

[Rob Wildhack, Analyst at Autonomous Research]

Great. Cool. I wanted to ask about the different Affirm surfaces, namely the app. You know, you've highlighted in the past the GMV lift there. That's intuitive. I'm curious, though, where consumer awareness is on that. Like, are consumers still opening up their Affirm app to make a payment then going, "Oh, lucky me, here's this great offer"? Have they become more attuned to the fact that this is a place where they can start looking for products and shopping via the app first?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

You're front-running like half of my speech next week. I'm not gonna answer. Not gonna gratify this one with No, I'm kidding. The short answer is it is trending in the very direction you described. Affirm app was deliberately designed to make sure that there is more value to be had there than just sort of a in passing setting up or checking up on your auto-pay. All the different components in the first three and the fifth tabs of the app are all designed to create engagement, to expose consumers to various merchant promotions. It is not an accident that the Big Nothing Days are basically organized around the app. We're trying to teach consumers that this is where you go. There's always 0% offers in the app.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

The BND is just Nexus of many of them concurrently, at any given time, there's a lot to begin with. We have a really nice number. I won't spoil the eventual report on that one. Number of searches that consumers run in our app, we're watching that grow. It's all in the service of teaching consumers that the best experience of Affirm is the app plus the card. I'm deliberately obscuring some of the maybe more interesting portions of it. You'll have to wait six more days before we start really doing some fun reveals. Directionally, you're exactly right.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Like, we are motivated to make the app experience excellent, both as a product and as a financial service to our consumers, and there's a bunch of things to show and many more that we're probably not gonna show off necessarily next week, but, you know, it shapes the roadmap for years in our minds.

[Rob Wildhack, Analyst at Autonomous Research]

Got it. A quick one for Rob, if I may. Was up quarter-over-quarter. Could you just call out the drivers there?

[Rob O'Hare, CFO at Affirm Holdings, Inc]

I'm sorry, could you repeat the question?

[Rob Wildhack, Analyst at Autonomous Research]

The allowance was up quarter-over-quarter. Just wondering the drivers there.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

It's of course, partly a function of just seasonality. The allowance rate typically is elevated in Q3, just given we have the sequential downtick from holiday volumes in Q2 down to a lower base in fiscal Q3. That's part of it. Another driver, which I think Max called out in his portion of the letter, which is that we did see elevated prepayments on the platform. It's a little bit of a counterintuitive point, but that's a really positive credit signal, and it has the effect of reducing the overall loan balance, which obviously the good loans are being paid off early, you're left with more delinquencies off of a lower base.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

That contributed to a higher allowance rate all in, but we think it's a really positive credit signal across our users at large. Those were sort of the two biggest drivers, seasonality and then a bit of favorable prepayments from tax season. This particular tax season was understandably refund maxed. Is that what the kids say?

[Operator]

Okay. Our next question comes from Dan Dolev with Mizuho. Please proceed with your question.

[Dan Dolev, Analyst at Mizuho]

Hey, guys. As always, very impressive results. Just wanted to ask you, Max, can you hear me well?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Yeah, yeah. Sorry. We're silent waiting.

[Dan Dolev, Analyst at Mizuho]

Okay.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Thanks.

[Dan Dolev, Analyst at Mizuho]

Sorry. I just wanted to ask really quickly, some of your competitors have done some significant layoffs because of AI. I just wanted to know what, you know, the official Affirm stance is on this topic. Thank you so much.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We are not planning AI-related layoffs, full stop. I don't mean to belittle anyone out there making the right or what they believe to be the right decisions for their company. Strictly Affirm-centric view of the world from us. If you look at our revenue per employee, it is already hanging out in, like, NVIDIA territory. I don't remember the last time I looked at it, but it's very high number of dollars per employee. We today operate as a very lean machine. If you look at our overall headcount, it hasn't grown very much. If you look at the revenue per employee, you'll see that we're just highly efficient. If you look at overall operating leverage, it's done really well. Long before AI tools came along, we had tooled ourselves up to be very efficient.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

These tools are giving us rocket boosters, wings, you know, whatever metaphor you want, and we're very happy for it. At least for now, and as far as the eye can see, as far as I can see anyway, it is just a thing we're gonna keep using to ship more. The list of things we want to ship is very long. Until very recently, a lot of our conversations were, "Well, we don't know when we're going to prioritize this thing that you want back because we have so much more to build." Blissfully, these conversations are now like, "Well, we can just have a hackathon, and 48 hours later we'll have a working prototype." We just wrapped up one here where our product team literally delivered dozens of shippable features, which is just impossible to imagine 12 months ago.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We need all the people we got. We think we have fantastic people, and we like them all.

[Operator]

Our next question comes from Dan Perlin with RBC Capital Markets. Please proceed with your question.

[Dan Perlin, Analyst at RBC Capital Markets]

Thanks. Good evening. I'm wondering, can you just speak, I think maybe holistically to your expansion plans, you know, outside of North America? I know you talked about it a little bit embedded in the guidance here for the product and go-to-market initiatives and not being material in 2026, but I'm just trying to think, contemplating in terms of investments as we start to think about next year. Also, I guess in the context, although it's a little bit of a different driver, but the, you know, the RLTC margins continue to run, you know, above long-term targets. I'm just wondering as you go into the international markets, how that might impact it. Thank you.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Sure. I'll take them in order. You know, I think we're gonna spend a bit of time talking about our expansion plans with a bit more specificity in terms of markets. So I'll leave the deep dive on the international markets for next week's Affirm Investor Forum, if that's okay.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

You know, in terms of the investment portfolio for those launches, some of that work is already underway today. That's definitely been an area that we've been investing in ahead of those markets coming live. As you've seen from the results, we've been able to drive really nice operating leverage despite that investment. I think we would expect to do more of the same in fiscal 2027, but I'll stop short of giving any sort of outlook or guidance for 2027 today. In terms of unit-level economics, I mean, I think as we ramp in new countries, we would expect potentially that there is a bit of a investment period where we're meeting new consumers and coming down the curve in terms of underwriting prowess.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

There could be a small drag on revenue less transaction costs as we enter these new markets. Given the size of the U.S. and Canadian businesses today, we think any headwinds there would be, pretty minimal.

[Dan Perlin, Analyst at RBC Capital Markets]

That's great. Thank you so much.

[Operator]

Our next question comes from Andrew Bauch with BMO Capital Markets. Please proceed with your question.

[Andrew Bauch, Analyst at BMO Capital Markets]

Hey, thanks for taking the question. Wanted to talk about Affirm Card and the level of adds you continue to stack up here. You know, the 700,000 users is pretty impressive, especially coming off of the 900,000 last quarter. Is there anything that's working differently or stronger than it has been in the past as far as card customer acquisition goes? My follow-up would be, you know, now that we're doubled the base and at 4.4, you know, are you starting to see more and more benefits of scale coming through the pike?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I think to the first part, there's a long list of things we have done and continue to do to just increase adoption. We've said it before, and remains true that Card are by far fastest-growing and also our most profitable product, so there's absolutely no reason not to try to grow it. That said, we have not been in any way fuel juicing the growth. You know, it's natural. There's not a secret game somewhere being played or anything like that. It's growing about as fast as we can make it grow without tilting anything in a weird direction. Still primarily remains a repeat product. We've never tried to advertise it or promote it outside of existing Affirm user base. It's still roughly in the 20% of the actives, plus or minus.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

It's, you know, we have a lot of road to cover before we start asking where can we get more cardholders. They are our favorite users in a sense that they transact most frequently. They tend to be least lossy just because we get to know them a lot quicker, a lot more frequently. So it's all goodness, nothing sort of nothing hidden or regrettable there. Let's see. The economy to scale, you know, I haven't thought it through very carefully if we're finding benefits of scale that are truly unique. The one thing that is true in a software development context, which is a little sort of maybe a glimpse into the resource allocation, your fastest-growing product is typically your smallest product.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

No matter how much you love your youngest child, you can't really allocate the greatest number of resources towards it because it's just too small. The card is now in the billions of dollars of volume. It is no longer a small product, which means that it deserves and gets the software engineering attention and the risk attention is all the various pieces that we would perhaps wonder if they're worth allocating from other parts. You can expect it to get more features sooner, more, you know, maybe even more growth sooner, although that is not a forecast or forward-looking statement. It is just sort of hitting its stride in every dimension, including internal resource allocation.

[Andrew Bauch, Analyst at BMO Capital Markets]

Got it. Thank you.

[Operator]

Our next question comes from Matt O'Neill with Bank of America. Please proceed with your question.

[Matt O'Neill, Analyst at Bank of America]

Yeah, hi. Thanks for the question. Being cognizant of the upcoming Affirm Investor Forum, I'll try not to get too long-term focused. Maybe we could talk a little bit about the Affirm Card and what that sort of portends to the longer-term, you know, banking idea. Obviously, there's application put in this past quarter. You know, respecting that I expect a lot more of this next week, are there any sort of points you can kinda hint at as far as the focus around things like, you know, sort of pay now, you know, direct deposit, the dynamics to contemplate as you guys proceed down that path?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

It's definitely worth separating the bank application and the product roadmap. Like, they move on completely different time horizons. We are excited to continue the conversation with our regulatory friends, and it may take a little time, it may take a long time. We don't know, and that's part of the process. We certainly have nothing to share on that front at the moment. On the feature set of where the product roadmap is headed. We'll cover some of that next week, so I definitely don't wanna take Vishal's talking points away from him. We definitely have aspirations in a variety of consumer financial services. For the longest time, we said we see ourselves. Our mission states it pretty clearly. We're trying to build honest financial products to improve lives.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We're not, you know, trying to build short-term loans at the point of sale to improve lives. There's plenty of opportunity, we think, to right the wrongs of some of the poorly made products in this industry and also just invent our owns and do interesting things there. I'm giving a little bit of a word salad here, but we have aspirations in just about everything that you can possibly imagine in consumer financial services. More to come. I'm also cognizant that sometimes we announce things and take three years to get them to the point where they're good enough to launch. I'm extra cautious not to say, "Oh, yeah, here's something we're going to do," and we'll definitely do it, but it may take us a year or two.

[Matt O'Neill, Analyst at Bank of America]

Thanks. I appreciate that and the delineation between the regulatory process and the business build-out. I'll hop back in.

[Operator]

Our next question comes from Darrin Peller with Wolfe Research. Please proceed with your question.

[Darrin Peller, Analyst at Wolfe Research]

Hey, guys. Thanks. Could we just touch base again on the strength of the GMV side for a moment and the sustainability? Number one is just making sure there was nothing unusual or unsustainable about the quarter. Which I'm sure you'll say probably not. I guess I'm trying to figure out what's to stop this type of growth rate from being sustainable from your perspective. More importantly, I mean, on that note, we've heard a lot from competitors about trying to do more in this space, it seems to have very little impact on your growth potential. I mean, anything you're seeing from the competitive landscape that's changed worth sharing over the past, you know, quarter or two would be great. Thanks, guys. Nice job.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Thank you. I'll start. I suspect Michael, who is doing a small victory dance right next to me, will have something to add. You're, you're totally right. We don't see a reason. Again, I don't wanna front run our promises and storytelling next week. No, there's nothing unnatural about this one. We move up and down with the economy. We are, you know, we've hit a product market fit quite some time ago. We're still tiny relative to the massive payment volume in the U.S. alone, on e-commerce alone. We're really, really small. Taking share, it's not that hard yet. In terms of competitive, I really will let my colleagues speak. It's hard to tell.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

One of our long-tenured executives here has this line: "They're never retreating, they're just reloading." You know, it's a fantastic space. The BNPL overall is just a very compelling product. We don't have a monopoly on the idea. It's always gonna be a competitive space. There are really no monopolies in payments to begin with. It's just not a thing we can expect to eventually own entirely to ourselves. We do, in our, or my, anyway, very biased view of the world, are the best at it. We do have some really great economies of scale. Capital markets are now very familiar with our product. They understand exactly what we manufacture. They understand that we are entirely non-compromising in our view of what is and isn't fit to sell into forward flow or securitizations.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We have a lot of trust with our counterparties, and we tend to take that very seriously. On a consumer side, you know, we're not a really heavy advertiser, certainly not heavy brand advertisers, and yet we do have a brand. We just ran a bunch of studies that show that we're really well-recognized. People trust us. They understand after 15 years that when we say no late fees, we mean it. Never charged a penny. Don't have a plan to ever charge a penny of late fees. That's been slowly but surely building up in our favor. Just in a pure sort of competitive front, I think the, you know, speaking of maybe the most important and least understood advantage that we have, we have been at it for a very long time.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We have built some very, very sophisticated underwriting capabilities. We'll definitely talk a lot about that next week, so I'm gonna bite my tongue right there. We have some very, very cool stuff that we've done, not just recently, but over the years in underwriting. A great percentage, maybe the totality of our competitors that have raised their hand and said, "Sure, underwriting is not that hard, we can do it," one by one found out that it is. It is actually very, very difficult.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

By showing our results, we may have fooled the world by, you know, just print a good result quarter after quarter after quarter, and we get yelled at, you know, "Gosh, why don't you guys already admit that, it's always gonna be over 4%?" It is a difficult balance to strike to print these unit economics day in, day out, and all of that or a lot of that comes from our AI team and the research that they do, and it's hard work. I think we make it very easy to believe that just isn't that hard, and it really is. The longer this show goes, the more it becomes obvious that we are pretty good at math and are very serious about it, and the rest of the competitors are not.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Darrin, just to your question on the growth rate, obviously, we're really happy with the growth rate that we posted in Q3, and we're incrementally more positive on the Q4 growth rate in the updated guide. I will just remind everyone that we did sunset a top three merchant in Q1 of this year, so we are comping against There is a difficult comp in the prior year period, and that comp did step up a little bit from Q3 to Q4. It's a little bit more of a headwind to growth. We're talking sort of a few points of growth in terms of headwind. As we get into fiscal 2027, the comps get a lot easier for us. It's more of a same store comp for us.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

We don't think that the Q4 growth rate will necessarily be a ceiling, as we look ahead into fiscal 2027.

[Darrin Peller, Analyst at Wolfe Research]

Okay. Very helpful, guys. Thank you.

[Operator]

Your next question comes from Connor Allen with JPMorgan. Please proceed with your question.

[Connor Allen, Analyst at JPMorgan]

Hi. Thanks for taking my question. I wanted to ask about transactions per active. It's been growing above 20% for quite a while, I was curious, maybe this quarter or somewhat recently, you could just kind of decompose that a little bit for us. maybe it's a bit duplicative of some of your other comments about just broader engagement, but I don't know, anything you could share around cohorts and their behaviors around this engagement or how broad versus targeted the improving engagement is. maybe just a double click deeper dive on the engagement side. Thanks.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

All of the above. It's really good. There's definitely a few good lines on that one next week, I won't steal that thunder. This is actually a really good example of network effects. I'll give you, like, a super brief preview. Even if we did absolutely nothing to improve product usability and just converted more and more consumers to cardholders, you would see increase of transactions per user with absolutely no effort on our part beyond that. We don't just do that. We also sign new merchants, which means that we are visible with our logo, at the very least at checkout, but also in other forms of merchant communications, including, but not limited to their own advertising.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

That creates, you know, another push towards the flywheel, where more consumers are aware of us, more consumers know that we are in fact real, that our promises of no late fees, et cetera, are shown up in more and more places. That pushes consumer flywheel along. More consumers sign up, more consumer trust is available. Consumers get to their second or third loan quicker just because of more checkout counters available, which makes them eligible for the card, which we of course let them know as soon as they qualify, which drives the flywheel of cards.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

The acceleration across the usage, AKA transactions per user in the business, is a function of both the merchant side of the network increasing through sales and the consumer side of the network increasing through sign-ups because of the increased merchant reach, but also sign-ups from the occasional use to the card, which is much more frequent use. Those are just the two vectors. At Investor Forum, we'll really break it down into all the various drivers.

[Connor Allen, Analyst at JPMorgan]

Thanks, Max.

[Operator]

Your next question comes from James Faucette with Morgan Stanley. Please proceed with your question.

[James Faucette, Analyst at Morgan Stanley]

Hey, good afternoon, everybody. Just wanted to ask this goes back a little bit to RLTC, Max, I appreciate it's hard to may seem easy to stay above where your targets are, but it's really hard. Along those lines, just trying to think about how the 0% APR mix ceiling can affect that and just how you're thinking about how high that can go. You call out that typically has lower RLTC margin. Along those lines, I guess I wonder if as merchants become more informed and see the benefits of working with Affirm for 0%, if you can actually close that 0% RLTC margin gap with the rest of the business. Thanks.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

It's a great question, actually. In reverse order, I think it's another example of the network effects playing out. To answer it directly, I think yes. I think over time, more and more merchants, and part of why we stage these Big Nothing events, and we'll do more, is because they act as teaching aids, if you will. Sort of the white papers write themselves. If you fund these 0% deals, you will sell more, and you'll sell more predictably, and there will not be a pull forward. These are actual sales events that work.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

All of that adds up to a product that we think is increasing in value, in part because the size of our consumer audience is increasing as well, and we're able to sort of shine a concentrated spotlight onto a merchant that wants to fund these deals, et cetera. I've been monopolizing the airwaves, so I'll let Rob or Michael answer the economic breakdown. You know, it does remain true that zero percents are slightly lighter on the RLTC basis. We are not fussed by that.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Yeah, no, I mean, I think we love all our loan products equally. There's a lot to like about our interest-bearing loans, to your point, James, I mean, there is slightly less revenue content today, and I think as we look ahead as well within the 0% program. The good news is there's less in terms of credit costs typically as well. We really like that trade, and we think it's a really good complement to the strong and profitable and high-growth interest-bearing book that we have as well. Yeah, I mean, again, we're really here to drive conversion for merchants, and we think 0% should be an ingredient in every merchant financing program.

[Rob O'Hare, CFO at Affirm Holdings, Inc]

As we look at the portfolio today, our largest programs are all utilizing 0%, which we think is a really good sign. We're definitely leaning into it within the Affirm Card as well on our own surfaces. We're doing everything we can to get as much out there and to continue to push that product.

[Operator]

Our next question comes from David Scharf with Citizens Capital Markets. Please proceed with your question.

[Zach Oster, Analyst at Citizens Capital Markets]

Hey, good afternoon. This is Zach on for David. Congratulations on another great quarter. I wanted to dig in a little bit on the card side of stuff. Sorry, I don't know if you guys can hear me. There's a bit of an echo.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Sure.

[Zach Oster, Analyst at Citizens Capital Markets]

Yeah, wanted to kind of see what the profile of the average card user is. Obviously, you know, I think there was a kind of a medium-term target of $10 billion of GMV and about 7.5 million active card users. You know, we're kind of approaching that level at about 60% of the card user level. Yeah, kind of wondering if we can get an update on kind of what the profile is and kind of what the use cases are for those card customers.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Super general terms, it skews a little bit higher credit quality than the average Affirm consumer for no other reason than we make it that way. We're still, at the limit, slightly more conservative as to who gets the card offers and approvals. It's really converging towards this is just the average Affirm consumer. Right now, I think the credit quality is slightly better on the card or somewhat better on the card. The usage patterns are broader, more frequent, obviously, than sort of the more casual Affirm consumer that uses us 4x or 5x a year, 6x a year now. Card customers start out, I think it's like a 40% higher and goes up from there. The maybe most useful thing is the category usage is more even.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Like, typically it takes a little while for an Affirm consumer to realize that if they found us or got exposed to us in category X, it takes them some number of months to rediscover us again at another retailer and say, "Oh, wait a second, it also works for fashion, not just travel." When you get the card, you have a muscle memory for this is a general-purpose tool. It works everywhere. The category dispersion begins a little bit sooner and just stays fairly wide. It still skews more considered purchases than kind of your typical low AOV spend, which is fine with us. We're, you know, that is a much easier value point to drive to merchants.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

They understand that they wouldn't have sold a $700 thing or a $500 thing unless Affirm was involved for this particular consumer, given their preferences, and the card highlights that much better. Sort of a quick sketch. I think at the Affirm Investor Forum, we'll say a lot about the card as well. We have some nice little surprises there.

[Zach Oster, Analyst at Citizens Capital Markets]

Got it. Thank you very much.

[Operator]

Our next question comes from Jacob Haggarty with Baird. Please proceed with your question.

[Jacob Haggarty, Analyst at Baird]

Hey, guys. Thanks. I was just looking at the loan loss on purchase commitment, and it looks like that came down as a percentage of, like lower than it's been in the last few quarters. Is there anything to that, why you're getting maybe better economics from your purchasing partners or something along those lines?

[Rob O'Hare, CFO at Affirm Holdings, Inc]

Yeah, that's really driven by the 0% volume in the business. It's not necessarily due to the economics with a single vendor or originating bank or anything in that ecosystem. It's just a function of the sort of discount rate that we apply to 0% loans. Yeah, no, no economic changes there. It's really a function of mix and term length.

[Jacob Haggarty, Analyst at Baird]

Gotcha. Thank you.

[Operator]

Our next question comes from Kyle Peterson with Needham & Company. Please proceed with your question.

[Kyle Peterson, Analyst at Needham & Company]

Great. Good afternoon, and thank you for taking my question. Wanted to go back on funding, specifically on the forward flow side, see if you guys could give us, you know, whether it's a rank order kind of relative sizing of some of these forward flow buyers, kinda as to what they look like under the hood. You know, I understand everyone could be a lot different here, but I think some of the stress seems to be worse in some of these kind of semi liquid retail vehicles versus, you know, kind of larger, more permanent forms of capital. I guess, like, if you could just give us any relative sizing or color on what the forward flow channel looks like, that would be extremely helpful.

[Michael Linford, COO at Affirm Holdings, Inc]

Without getting too specific, we're heavily, heavily weighted away from things that are very liquid and subject to those kind of the volatility that you're referring to. You know, our largest forward flow counterparties are joint venture with Sixth Street. We have large pension funds and large insurance complexes, which obviously don't fit that description. Even among the funds who do participate in our program, they tend to be, again, overwhelmingly not of the kind that I think people are talking about. That's why we see such a strong renewal and repeat rate while demand continues to be very high for the asset amongst whole loan buyers.

[Michael Linford, COO at Affirm Holdings, Inc]

You know, they really do like the ability for Affirm to generate consistent credit outcomes that they can underwrite to and generate returns for their, for their funds. We like the capital efficiency of those partnerships, we grow together and have done a really good job of that over the past three years.

[Kyle Peterson, Analyst at Needham & Company]

Great. Thank you very much.

[Operator]

Our next question comes from Jamie Friedman with Susquehanna. Please proceed with your question.

[Jamie Friedman, Analyst at Susquehanna]

Hi, thanks for taking my question. I wanted to ask about Adaptive Checkout. I don't mean to front run the conversation next week, but if you might have any perspective on how that's evolving. It seems, you know, like a real opportunity to serve merchants and consumers alike. Any perspective on Adaptive Checkout would be helpful. Thank you.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

It's doing really well. Definitely don't mistake my lack of name-checking it in this particular letter for any sort of backing away from the strategy. Quite the opposite. At this point, we're basically selling AdaptAI and BoostAI together as a single thing. One of the, we have a tendency to be overly literal. It's been a long day. We tend to be overly literal in our description of our products, we're trying to learn how to package and market better. Very soon, you'll just hear strictly about Affirm Checkouts, something like that. But it's doing really well. It's becoming more and more understood by our merchant base, and that is what you want.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I think hopefully very soon it'll just be the thing you turn on and, you know, you don't try to play with the knobs yourself. Our AI will find the optimal setting in real time for every new incremental consumer. It's doing well. I think we do have a bunch of content on it at the Investor Forum, so I'd rather not drop any stats on that here.

[Jamie Friedman, Analyst at Susquehanna]

Understood. Thanks, Max.

[Operator]

Our next question comes from John Hecht with Jefferies. Please proceed with your question.

[John Hecht, Analyst at Jefferies]

Afternoon, and thanks for taking the question. A lot of questions have been asked and answered. You know, I'm wondering, Max, like, what do you know, this is obviously a competitive industry, not only with other buy now, pay later companies, but the general consumer credit spectrum. Clearly, you guys are taking share in a competitive, maybe even increasingly competitive industry. I'm wondering, you know, obviously, size, scale, brand, all that stuff matters. That's stuff that's been around for a while for you guys. What do you think is there anything new or what do you think is changing in terms of competitive positioning, you know, as the industry, even though it's not mature, but as it generally matures?

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

I will invite Michael and Rob to comment in a second because I'm gonna scrape the bottom of my brain for something incrementally new. We're very focused internally. I guess the reason I'm struggling to come up with something particularly clever is I can tell you a lot about what's changing here. It's really hard to see what the outside world is doing when you're that focused on internal efforts. It's a little bit easier to do what we do, to be completely transparent. The consumer knows who we are. The one thing that is true, and we can see this when we do just consumer surveys as well as sort of more mechanical understanding of consumer preferences, there are people that have decided Affirm is their jam, and that's what they're going to use. It's really compelling.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

We can tell consumers, "Hey, you should go and get yourself an Affirm Card because brand X is not yet integrated with Affirm directly, but it's okay. It's accessible." At some point in the past, that felt like, you know, maybe they will, maybe they won't. We now have data that shows that they will. Consumers believe Some percentage of our consumers believe that Affirm is a general purpose tool that works anywhere. You just have to have the Affirm Card or the Affirm virtual card on your app screen. More and more of them understand how it's done, so long as we treat them right and we handle our post-transactional relationship as well as we do in the transaction, they come back. That just makes repeats a little bit easier.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

You know, we continue to maintain 90%+ of our transactions come from returning users to Affirm, which is great. It's a lot easier to get the second and third transaction than the first. All of that, it's a little bit easier to grow today than it was six months ago and 12 months ago. Every passing quarter or year makes our growth actually feel a little bit easier. There's a great cycling expression, "It doesn't get any easier, you just go faster." We still work just as hard as we've ever done, but the results are escalating, if you will.

[Michael Linford, COO at Affirm Holdings, Inc]

This is Michael. I think for a complicated business with a lot of moving parts, I think about our position in the market. It's actually quite simple. This is what you get when you compound results like this over the course of many years without pivots, without changing your identity. It's who you are. We show up to the capital market the same way we did when we first showed up. We show up to merchants the same way, offering to drive better conversion, better outcomes. The promises we make to consumers, we've kept over the years. When you compound all that and stay really focused on doing the thing that matters, you end up building a pretty big lead.

[Michael Linford, COO at Affirm Holdings, Inc]

I think some of the other players in the space have changed who they are or want to try to enter new spaces and become something that they're not, and it shows with their pitfalls and stumbling on results. Ours is just the benefit of compounding the same awesome thing over and over and over again.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

That is very well said.

[John Hecht, Analyst at Jefferies]

All right, guys, thank you for the perspective.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Thank you.

[Operator]

Our next question comes from Jeff Cantwell with Seaport Research. Please proceed with your question.

[Jeff Cantwell, Analyst at Seaport Research]

Thanks, guys. I wanted just to follow up on that earlier question on the Affirm Card. You said there's a long list of things you've done and continue to do to increase adoption. I was just hoping to better understand what exactly is on that list of things you're doing. Just driving that increase in cardholders to 4.4 million. Can you maybe help us understand the work you're putting in to increase the number of cards in your customers' hands? As you look ahead, what are gonna be some of the biggest drivers to increase that number by even more? I would imagine you would expect to see that 17% attach rate increase further over time, what would you say are gonna be the biggest drivers to increase the number of Affirm Cardholders?

[Jeff Cantwell, Analyst at Seaport Research]

Is it, you know, marketing of the product or opening new geographies or other new TAM opportunities? Just curious if you could help us understand the outlook for the Affirm Card better. Thanks.

[Michael Linford, COO at Affirm Holdings, Inc]

You know, we don't do performance marketing at Affirm. We don't have a business model to pay to acquire users. I think maybe that's a bit of a misconception that some people who are less excited about the card than we are have about it. We're not out buying ads. We're not mailing cards to mailing advertisements to people in the mail. That's not how the business works. The reason why the card is such a compelling business for us is it's the best way to re-engage consumers who we already know and have had successful transactions with. That's really the strategy.

[Michael Linford, COO at Affirm Holdings, Inc]

The strategy is to continue to scale the network and ensure that the consumers who know us and love us best get access to the card, and that we build a card that they can understand and they can use in as many transactions as possible to continue to take a big share of their spend from other payment devices. That's the focus, and it's really that simple.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

Just to give you some flavor of the things we do internally. Some of these will sound very unglamorous, but given our scale and our attention to numerical detail, I assure you these are very meaningful. Every pixel in the app is, at any given time, being A/B tested, by which I mean A, B, C, D, E, F, like multi-legged, extremely high density multivariate testing. The outcome of that is we just shave down the friction. If you I mean, it's not super easy to replicate because we're fairly good at keeping our cohort separate, but if you got enough people together and they all open their app and none of them had the card, they would see a slightly different experience in very subtle ways.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

In some number of weeks or days, we will know which one of them is most compelling when someone signs up for the Affirm Card. Not just signs up for the Affirm Card, actually uses the Affirm Card and sticks to it and becomes a no more compelling or no less compelling credit risk. There's a lot of downstream effects of any form of internal product change that we have to contend with. We can't just say, "Oh, go do this." It's not like you get a loan, everybody gets a loan. You get a loan, and then we have to make sure that the loan you got actually got paid off, and it was a good idea to give you the Affirm Card based on whatever you in this thought experiment is.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

There's an incredible number of just optimization that happens on our own surfaces, and every time we think we've hit a plateau, we find that there's another single or double-digit percentage gain to be had, and we're very far from running out of ideas. To give you a totally different flavor of what we might do at some point, there's painful little going on in store for any of the BNPL players, and we think we're the best. We think we're the farthest ahead in terms of how to use our product inside of a physical retail. But boy, we have some really interesting ideas, and we're getting on them as quickly as we can. That's another reason to use our card.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

As much as we love our online e-commerce domination, we definitely want the remaining 80% of commerce or 75% of commerce, whatever it is. There's just a lot to do with the product. You know, I'll end where Michael started. It is not a matter of external marketing. It's a matter of just making sure the product is as accessible, as easy to understand. We have a running tally of every possible declination when the card does not approve a transaction. Every day there's, you know, someone's job is to ask the question, was this decline intelligent, as in this was a bad credit decision, the consumer should not have been approved? Is it a mistake of the user, a mistake of Affirm, mistake of our underwriting engine, et cetera, et cetera.

[Max Levchin, Founder and CEO at Affirm Holdings, Inc]

All of that is an enormous volume of work. It can move as quickly as my agents can code it, but it still has to be tested in the real world and validated and made statistically significant. There's very little doubt in my mind that we will not run out of things to do there for years.

[Jeff Cantwell, Analyst at Seaport Research]

Great. Thanks very much.

[Operator]

There are no further questions at this time, so I'd like to turn the call back over to Zane Keller for closing comments.

[Zane Keller, Head of Investor Relations at Affirm Holdings, Inc]

Okay. Thank you for joining the call this afternoon. We appreciate your time. We look forward to seeing many of you at the Affirm Investor Forum next week. See you there.

Participants

Executives

• Max Levchin, Founder and CEO
• Michael Linford, COO
• Rob O'Hare, CFO
• Zane Keller, Head of Investor Relations

Analysts

• Andrew Bauch, Analyst at BMO Capital Markets
• Bryan Keane, Analyst at Citi
• Cassie Chan, Analyst at Bank of America
• Connor Allen, Analyst at JPMorgan
• Dan Dolev, Analyst at Mizuho
• Dan Perlin, Analyst at RBC Capital Markets
• Darrin Peller, Analyst at Wolfe Research
• Harry Bartlett, Analyst at Rothschild & Co Redburn
• Jacob Haggarty, Analyst at Baird
• James Faucette, Analyst at Morgan Stanley
• Jamie Friedman, Analyst at Susquehanna
• Jeff Cantwell, Analyst at Seaport Research
• John Hecht, Analyst at Jefferies
• Kyle Peterson, Analyst at Needham & Company
• Matt O'Neill, Analyst at Bank of America
• Moshe Orenbuch, Analyst at TD Cowen
• Nate Svensson, Analyst at Deutsche Bank
• Rob Wildhack, Analyst at Autonomous Research
• Ryan Campbell, Analyst at Cantor Fitzgerald
• Zach Oster, Analyst at Citizens Capital Markets