Affirm (AFRM) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool Sat, May 9, 2026 at 12:11 AM GMT+7 48 min read Image source: The Motley Fool. Founder and Chief Executive Officer — Max Levchin Chief Operating Officer — Michael Linford Need a quote from a Motley Fool analyst? Email pr@fool.com 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 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: Thank you, Zane. Fiscal Q3 was another one for the record books. Given this streak, one could be forgiven if one thought it 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 industry forum next week. On that note, back to you, Zane. Zane Keller: Thanks, Max. Okay. Let s get to your questions. Operator, please begin the Q&A session. Operator: [Operator Instructions] Our first question comes from Jason Kupferberg with Bank of America. Jinli Chan: This is Cassie Chan on for Jason. Great quarter. I just wanted to ask, I guess, first on the private credit side and in general on credit. 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? And 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? Max Levchin: I ll start with the credit side, Michael will pick up the funding side. No, we are not. At this point, I think we 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 course, which naturally translated to a very stable and pleasant funding environment for us. Michael, can you tell any more? Michael Linford: Yes. The funding market broadly remains exceptionally constructive for us. We re kind of out of 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. But from our perspective, we see a market that s very deep. We see it sustained and reducing spreads, and we see deals with significant oversubscription along with forward flow partners who are, if anything, still clamoring for a bigger allocation of our portfolio. So we see the market as being very constructive to us and a key part of the reason why our -- we feel there s so much tailwind in the business. Operator: Our next question comes from Nate Svensson with Deutsche Bank. Christopher Svensson: Congrats on the record number of Lebowski references in the letter. I just want to ask -- Sorry, I wanted to ask on the upcoming Big Nothing. But 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. But on the call last quarter, you also talked about getting better and smarter as you do more of these. So 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, for the event next week? Max Levchin: I don t really want to reveal all the surprises to be completely honest, but I appreciate the kind words, and we did get smarter. I think probably if you want to sort of look for bread crumbs, we got smarter about targeting, that s certainly -- and it s less about sort of sitting down in the lab somewhere and trying to come up with ideas, much more about looking at the data we gathered and the last 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. So it will get more efficient. That s certainly the case. We got smarter, kind of, qualitatively. 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. So we will

Affirm (AFRM) Q3 2026 Earnings Call Transcript

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Affirm (AFRM) Q3 2026 Earnings Call Transcript

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