Affirm Narrows 1Q Loss, Says It Could Manage a Recession

Dow Jones

May 09, 2025

By Katherine Hamilton

Affirm Holdings narrowed its loss in the fiscal third quarter and said it is prepared to manage a recession scenario.

The buy-now, pay-later platform on Thursday posted a profit of $2.8 million, or 1 cent a share, in the quarter ended March 31, compared with a loss of $133.9 million, or 43 cents a share, a year earlier.

Revenue rose 36%, to $783.1 million. Analysts surveyed by FactSet forecast revenue of $783 million.

Chief Executive Max Levchin said the company can adjust credit approvals to match applicants' ability to pay back if the economy takes a downward turn. The company has modeled that in a recession scenario where there is a 50% increase in credit stress, a reduction in approvals to maintain target credit results would cost Affirm about 10 percentage points of gross merchandise volume growth.

Affirm also said it is starting an online partnership with Costco. Affirm lost Walmart as a partner when the retailer said in March it was switching to rival Klarna as its buy-now, pay-later provider. Klarna has been looking to go public, but it put the IPO on pause in April in light of tariff turmoil.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 08, 2025 16:33 ET (20:33 GMT)

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