Affirm (AFRM) Goldman Sachs Communacopia + Technology Conference summary

Strategic priorities and financial outlook

• Targeting around 30% GMV growth in fiscal 2025 and aiming for GAAP profitability by year-end, driven by consistent execution and no major operational changes.

• Focused on increasing consumer engagement, aiming to raise average transactions per user annually through new products and card offerings.

• Expanding merchant network beyond 300,000, with goals to be present at every merchant and in more geographies and digital wallets.

• Maintaining disciplined credit performance, targeting a 3%-4% loss rate to balance growth and risk.

• Leveraging efficient customer acquisition through partnerships, with merchants and platforms promoting the service.

Competitive positioning and product differentiation

• Recognized for pro-consumer, transparent practices and a tech-first approach, enabling partnerships with major retailers and wallets.

• Offers a broad suite of pay-over-time products, from short-term to multi-year loans, providing flexibility for merchants and consumers.

• Holds a large, trusted user base, which attracts mid-sized and smaller merchants seeking to tap into established consumer trust.

• Competitive advantage in transaction-level underwriting and data-driven risk management, supporting longer-dated loans and diverse product offerings.

• Differentiates from competitors by not charging late fees and focusing on honest, clear financial products.

Risk management and credit performance

• Demonstrated ability to quickly adjust underwriting in response to shifts in consumer credit quality, as seen during 2022.

• Maintains short average loan durations, allowing for rapid portfolio adjustments and risk mitigation.

• Recent performance has improved, with no need for significant credit tightening, and the U.S. consumer remains stable.

• Prepared for various macroeconomic scenarios, leveraging transaction-level underwriting for real-time risk assessment.