NEW YORK — Affirm Holdings shares gained 7 percent Friday following fiscal fourth-quarter results that topped estimates and first-quarter guidance that exceeded Wall Street expectations.
The buy-now-pay-later firm reported Q4 revenue of $1.17 billion versus the LSEG estimate of $1.11 billion. Gross merchandise volume reached $14.1 billion, beating the StreetAccount expectation of $13.39 billion.
For fiscal Q1, Affirm guided to revenue between $1.19 billion and $1.22 billion, above the Street's $1.16 billion estimate.
CEO Max Levchin attributed the strength to consumer demand for payment flexibility during elevated gas prices and broader inflation. "Consumers are being more thoughtful about their money, and Affirm provides a tool to manage those constraints," Levchin said on CNBC's Squawk Box.
Gas prices averaged $4.09 per gallon Friday according to AAA, down from May's $4.50 but elevated compared to pre-Iran-conflict levels. Prices last dipped below $3 on March 2.
Inflation, measured by the personal consumption expenditures index, stood at 3.7 percent annually in July, with a seasonally adjusted 0.2 percent monthly increase. Personal income rose 0.4 percent and spending increased 0.2 percent in July, both exceeding expectations.
Levchin noted that while the consumer remains healthy, sustained price pressure creates headwinds. The Federal Reserve's September meeting will shape policy direction.
Morgan Stanley analysts project gross merchandise volume growth near 27 percent for fiscal Q1 and fiscal 2027, versus consensus expectations of 28.5 percent and 29 percent.
