Affirm CEO Warns of Inflationary Pressures Despite Strong Earnings
Affirm Holdings (AFRM) reported strong fiscal fourth-quarter earnings, with revenue reaching $1.17 billion—up 33% year-over-year and exceeding analyst estimates. Gross merchandise volume also rose to $14.1 billion, surpassing expectations by over $700 million. Despite the positive financial results, CEO Max Levchin warned that rising gas prices are straining U.S. consumers' budgets. Levchin noted that higher fuel costs force people to reallocate money from discretionary spending and savings toward essentials like transportation. This inflationary pressure is driving more demand for Affirm's buy-now-pay-later services as customers seek tools to manage their cash flow during economic uncertainty. The CEO emphasized the dual nature of this trend: it reflects both disciplined budgeting and financial stress. The broader economy shows mixed signals, with personal income rising faster than spending in July—suggesting a cautious consumer outlook. Affirm raised its revenue guidance for fiscal 2027 to $1.19 billion–$1.22 billion, above Wall Street expectations.
Tickers: $AFRM
Topics: buy-now-pay-later CEO commentary earnings gas prices inflation