Nate Svensson

Nate Svensson asked about Affirm's Payment Service Provider (PSP) strategy, including the WorldPay platform signing, and future expansion plans.

Answer

Max Levchin emphasized PSPs as a crucial channel for faster merchant integration and broader reach. Michael Linford added that PSPs often serve as integration methods for top e-commerce sites, allowing Affirm to offer a wide range of products.

Nate Svensson asked about Affirm's PSP (Payment Service Provider) strategy, specifically regarding the WorldPay platform signing, and how it contributes to expanding relationships and future expectations.

Answer

Max Levchin, Founder and CEO, emphasized PSPs as a crucial channel for integration speed and merchant access. Michael Linford, COO, added that platforms often serve as integration points, allowing Affirm to offer a broad range of products and maintain involvement in sales and program configuration.

Nate Svensson, on for Jason Kupferberg, asked for more detail on Affirm's current underwriting posture and the expected trend for RLTC margins, noting the Q2 guidance implies a margin near the high end of the target range.

Answer

CEO Max Levchin stated that the underwriting posture is largely unchanged and that strong Q1 margins enabled reinvestment in consumer growth. COO Michael Linford added that the company is optimistic about margins for the back half of the year, supported by constructive capital markets, and aims for the higher end of the 3% to 4% RLTC range for the full year.

Nate Svensson asked about the drivers and sustainability of payout-to-account growth, referencing a previous comment about a slowdown (which was corrected by management).

Answer

Matt Cagwin (CFO) clarified that payout-to-account has seen consistent 30%+ growth for 2-3 years, with a modest acceleration in Q3 driven by new Middle East partnerships. Devin McGranahan (CEO) added that this represents a secular change in customer behavior, with receivers preferring digital forms, which could lead to future margin benefits and network efficiency.

Nate Svensson asked for clarification on payout-to-account trends, noting a previous comment about a slowdown but current strong growth (principal up 40%, 50% of digital business). He sought drivers for this improvement and its sustainability.

Answer

CFO Matt Cagwin corrected the premise, stating consistent 30%+ growth rates for account payout over the past two to three years, with a modest acceleration this quarter driven by new Middle East partnerships. CEO Devin McGranahan added that this is a secular shift in customer behavior towards digital receipt, offering implications for payout network efficiency and potential margin benefits due to different economic profiles compared to cash payouts.

Nate Svensson asked for the basis of confidence in the retail business improvement baked into guidance and inquired about the mechanics and costs of implementing the new 1% remittance tax.

Answer

CFO Matt Cagwin clarified the guidance assumes no further deterioration rather than a massive improvement, with some 'glimmers of hope' from potential partnership expansions. CEO Devin McGranahan explained the remittance tax implementation will have low technology costs due to their new POS system. He stated the tax itself will serve as the primary incentive for customers to adopt non-cash options like debit cards or the Vigo Wallet, potentially accelerating adoption without major marketing spend.

Nate Svensson inquired about pricing trends and revenue per head for the core business, excluding the new subscription model. He also asked for an update on the employee utilization rate and expectations for the remainder of the year following the business optimization.

Answer

CFO Juan Urthiague stated that Globant has successfully maintained or slightly increased its revenue per head by prioritizing profitability in a tough market. He also confirmed that utilization increased by 40 basis points in Q2 and that the company is working toward its 80-81% target, aided by the recent optimization plan.

Nate Svensson asked if trade tariffs impacted Q2 results and if the dynamic environment was helping the cross-border sales motion. He also inquired about the drivers of the strong growth in Brazil from ZAPE and Gringo and sought an update on the broader consumer vehicle payment initiatives in the UK and US.

Answer

President, Chairman & CEO Ronald Clarke described the tariff impact as a 'mixed bag,' softening North America but strengthening Europe and Asia. He attributed the 'crazy' growth in Brazil to a much larger addressable market for vehicle debt services versus tolls and very low digital penetration. On consumer vehicle payments, Clarke said the UK effort is a 'work in progress' and is on the clock to show results by year-end or face capital redeployment.

Nate Svensson asked if U.S. tariffs impacted Q2 cross-border volumes and whether the dynamic environment was helping sales. He also inquired about the drivers of the strong growth in the Brazil business (ZAPE and Gringo) and sought an update on the broader consumer vehicle payment initiatives in the UK and US.

Answer

President, Chairman & CEO, Ronald Clarke, described the tariff impact as a 'mixed bag,' softening North America but strengthening Europe and Asia, with currency volatility providing a slight benefit. He attributed the 'crazy' growth in Brazil to a much larger addressable market for vehicle debt services versus tolls and very low digital penetration. He noted the UK consumer vehicle effort is still a 'work in progress' and is being evaluated.

Nate Svensson asked for an update on TPV breakdown by discretionary spend and inquired about a new BNPL capability being tested for a broader 2026 launch, seeking details on the product and its benefits.

Answer

Interim CEO & CFO Mike Milotich reported no meaningful shifts in discretionary spending, with TPV growth being broad-based. He described the new BNPL product as a two-sided platform that embeds multiple BNPL offers within a consumer's existing debit card app at the point of purchase. This provides distribution for BNPL partners and enhances the value proposition for issuing partners.

Nate Svensson from Deutsche Bank asked about the confidence to reinstate higher guidance amid tariff headlines and inquired about the specific demand from merchants for stablecoin adoption.

Answer

CFO Bea Ordonez explained that guidance was reinstated due to greater visibility and a less severe tariff environment than initially feared, with assumptions of modest softening in marketplace volumes baked in. CEO John Caplan added that regarding stablecoins, it is still the 'earliest, earliest days' of understanding merchant demand, but Payoneer is well-positioned with its global distribution and last-mile infrastructure to support customers as they explore new currencies.

Nate Svensson questioned the U.S. education outlook, specifically how revenue could be flat when F-1 visa issuances are expected to decline significantly. He also asked how the uncertain university environment impacts Flywire's go-to-market strategy.

Answer

CFO Cosmin Pitigoi explained that strong growth in the domestic U.S. business, driven by momentum in Student Financial Services (SFS) deals, is expected to offset the softness on the international side. CEO Mike Massaro added that in the current environment, universities are prioritizing ROI and efficiency, which makes Flywire's value proposition of automation and problem-solving highly relevant and compelling.

Nate Svensson from Deutsche Bank questioned the potential for U.S. demand destruction due to immigration policies and asked for the company's view on a normalized Net Revenue Retention (NRR) rate post-headwinds.

Answer

President and COO Rob Orgel emphasized that the U.S. remains a top destination and that Flywire's strategy is diversified with domestic payments and new products. CFO Cosmin Pitigoi stated that in a normalized environment, excluding the current pressures in Canada and Australia, the company's NRR would be in its target 120%+ range, driven by its high-retention client base.

Nate Svensson asked about the drivers behind the accelerated U.S. consumer volume growth in July and sought color on spending trends between mass and affluent consumers.

Answer

CFO Sachin Mehra attributed some of the month-over-month volatility to the timing of social security payments and calendar day mix, but he confirmed there is clear underlying strength in the U.S. consumer. He also reiterated that, based on Mastercard's data, spending trends remain steady and healthy across both mass and affluent segments. CEO Michael Miebach added that providing such economic insights is a key part of their advisory business.

Nate Svensson from Deutsche Bank asked for more details on the active new business pipeline mentioned by management, questioning which areas are most exciting and if there has been any change in client conversations due to tariff discussions. He also inquired about the drivers behind the strong 17% revenue growth in ATH Mobile.

Answer

President & CEO Mac Schuessler confirmed a very active organic pipeline and stated that clients are not pulling back on long-term technology decisions due to tariff noise, with new wins expected to be announced this year. EVP & CFO Joaquin Castrillo-Salgado explained that ATH Mobile's strong growth is driven by a combination of factors, including displacing cash, the network effect of its large user base, and its expansion from small businesses to medium and even larger enterprises.

The analyst asked about the drivers of the strong 12% growth in the acquiring segment, specifically regarding pricing power. They also inquired about volume trends in October compared to other industry players and sought more details on the Latin America outlook, including the Grandata acquisition and the confidence in Sinqia's reacceleration.

Answer

Executives explained that acquiring growth was driven by higher volumes and pricing initiatives, some of which will anniversary in Q4. They are not seeing the same volume acceleration in October that others have reported, with trends remaining consistent with Q3. The Grandata acquisition enhances their data analytics for credit decisions, complementing their issuing platform. Confidence in Sinqia's acceleration comes from specific initiatives like repricing contracts, modernizing platforms, and optimizing margins, which supports a low double-digit growth forecast for LatAm.

Nate Svensson of Deutsche Bank AG requested more detail on cross-border travel trends, including the impact of recent FX movements and any changing dynamics in specific corridors like Europe-to-U.S.

Answer

CFO Chris Suh confirmed that Q3 cross-border growth was 11%, with monthly variations due to holidays and currency fluctuations. He noted that July trends accelerated from June, helped by a strengthening U.S. dollar. He highlighted ongoing impacts from the Canada-to-U.S. corridor, U.S. outbound travel sensitivity to the dollar, and weak currencies in the Asia-Pacific region, but concluded that overall volume remains strong.

Nate Svensson of Deutsche Bank requested more detail on cross-border travel trends, citing recent softness in June and a recovery in July. He asked for an update on bookings, the impact of FX moves, and any changing dynamics in specific corridors.

Answer

CFO Chris Suh provided a detailed breakdown, confirming Q3 growth was in line with expectations despite monthly volatility from holiday timing and currency weakness. He noted July accelerated from June due to the dollar strengthening, strong retail e-commerce spend, and the reversal of minor negative factors. He highlighted continued weakness in the Canada-to-U.S. corridor and impacts on U.S. outbound and Asia Pacific travel due to currency movements, but reiterated that overall volume remains strong and above pre-COVID levels.

Nate Svensson from Deutsche Bank asked for a deeper update on cross-border travel trends, including the impact of recent FX moves and any changing dynamics in specific travel corridors.

Answer

CFO Chris Suh reported that Q3 cross-border growth was largely in line with expectations, despite monthly volatility. He noted that July trends accelerated from June. Key corridor dynamics include consistent trends from Canada to the U.S., U.S. outbound travel being impacted by a weaker dollar, and weakness in Asia-Pacific currencies affecting travel there. Overall, he stated that cross-border volume remains strong and above pre-COVID levels.

Nate Svensson of Deutsche Bank questioned the outlook for Corporate Payments, asking for color on key KPIs and the back-half growth run rate. He also asked about the drivers behind the 7% HSA account growth and its sustainability.

Answer

Chair, CEO & President Melissa Smith and CFO Jagtar Narula detailed the drivers for the Corporate Payments reacceleration, including lapping a major customer transition and new client wins. Mr. Narula projected purchase volume growth accelerating to ~20% in Q4. Ms. Smith attributed the strong HSA growth to new wins like the UAW Trust and WEX's platform expertise, noting sales and marketing investments will primarily benefit next year's enrollment.

Nate Svensson asked for more detail on the Corporate Payments outlook, including key KPIs for the second half, and whether the H2 run-rate is a good baseline for future growth. He also questioned the drivers behind the strong 7% HSA account growth.

Answer

CEO Melissa Smith and CFO Jagtar Narula detailed the positive drivers for Corporate Payments, including lapping a large customer migration and new client wins, projecting purchase volume to accelerate to ~20% in Q4. Regarding Benefits, CEO Melissa Smith attributed the strong HSA growth primarily to the implementation of the UAW Retiree Medical Benefits Trust and the platform's deep expertise, noting that recent sales and marketing investments are expected to impact next year's enrollment cycle more significantly.