5 Insightful Analyst Questions From Affirm's Q2 Earnings Call

Affirm’s second quarter results were met with a significant positive market reaction, reflecting the company’s strong year-over-year revenue growth and improved profitability. Management attributed the performance to robust consumer demand for Affirm’s buy now, pay later services and the increasing adoption of 0% APR offerings by merchants. CEO Max Levchin highlighted that growth in gross merchandise volume was supported by both repeat usage and a broadening merchant base, noting, “We are firing on all pistons,” and pointing to the increased role of 0% APR loans in driving new customer acquisition and engagement.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Affirm’s Q2 Earnings Call

• Dan Dolev (Mizuho): asked about improvements in consumer credit trends and the sustainability of recent optimism. CEO Max Levchin responded that consumer repayment performance remains strong and Affirm’s credit metrics are “highly consistent.”
• Daniel Rock Perlin (RBC Capital Markets): questioned whether first-time 0% APR users become repeat customers. Levchin clarified that these users do return, often converting to more profitable interest-bearing products over time.
• Will Nance (Goldman Sachs): inquired about risks from increased funding and competition among lenders. COO Michael Linford explained that Affirm selects long-term capital partners and avoids chasing short-term gains, maintaining discipline even as funding conditions improve.
• Matt Coad (Truist Securities): sought clarity on merchant penetration for 0% APR financing. Levchin projected that most merchants could eventually adopt these programs, given their marketing efficiency and Affirm’s adaptable technology.
• Harry Bartlett (Rothschild & Co Redburn): asked about the pace and strategy of international expansion. Levchin described a scalable technology platform and partnership-led marketing approach, while acknowledging market-specific regulatory hurdles.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will track (1) the pace of Affirm Card adoption and its expansion into offline retail, (2) merchant uptake and measurable impact of AdaptAI and other AI-powered tools on conversion and volume, and (3) progress in international markets, especially the U.K., as Affirm seeks to diversify beyond its North American base. The company’s ability to sustain credit quality and manage competitive pressures will also be crucial markers of execution.

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