You might also like
Affirm Holdings, Inc. is a financial technology company that provides transparent and flexible payment solutions to consumers and merchants. Founded in 2012 and headquartered in San Francisco, California, Affirm operates as a next-generation payment network, offering point-of-sale financing and other financial products. The company enables consumers to make purchases with flexible repayment options while helping merchants increase sales and customer satisfaction through its innovative payment platform.
- Interest Income - Earns revenue from interest on loans held for investment, leveraging proprietary risk models to underwrite consumer loans.
- Merchant Network Revenue - Charges fees to merchants for using Affirm's payment solutions, enhancing customer acquisition and conversion rates.
- Gain on Sales of Loans - Generates income by selling loans to third-party buyers or securitization trusts.
- Card Network Revenue - Provides revenue from Affirm's virtual card network, enabling flexible payment options for consumers.
- Servicing Income - Collects fees for servicing loans, ensuring smooth operations for loan management.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Libor Michalek ExecutiveBoard | President | Libor Michalek has been the President of Affirm Holdings, Inc. since December 2022. He previously served as President, Technology, Risk and Operations from May 2021 to December 2022, as President, Technology from 2018 to May 2021, and as Chief Technology Officer from 2015 to 2018. | ||
Max Levchin ExecutiveBoard | Chief Executive Officer (CEO) | Max Levchin has served as the CEO of Affirm Holdings, Inc. since 2012 while also holding the roles of Founder and Chairman of the Board. He previously co-founded PayPal where he served as Chief Technology Officer and played a significant role at Yelp Inc.. | View Report → | |
Katherine Adkins Executive | Chief Legal Officer and Chief Compliance Officer | Katherine Adkins is the Chief Legal Officer and Chief Compliance Officer at Affirm Holdings, Inc. since July 2021. Previously, she served as Vice President, Legal and Bank Strategy and Deputy General Counsel from 2019 to July 2021. | ||
Michael Linford Executive | Chief Operating Officer (COO) | Michael Linford is Affirm's Chief Operating Officer since September 2024 and has been serving as the Chief Financial Officer since August 2018. He has a robust background in financial leadership with previous roles at HPE Software, Micro Focus International plc, KKR & Co., and McKinsey & Company. | ||
Rob OHare Executive | Chief Financial Officer (CFO) | Rob O'Hare is the Chief Financial Officer (CFO) of Affirm Holdings, Inc. since November 8, 2024. He previously served as Senior Vice President, Finance from August 2020 and has held executive financial roles at other companies such as Tile and Spark Networks. | ||
Brian D. Hughes Board | Class III Director | Independent Consultant and Strategic Advisor to Boston Consulting Group | Brian D. Hughes is a Class III Director at Affirm Holdings, Inc., appointed on July 1, 2024 and serving on the Audit and Compensation Committees of the Board. He brings extensive experience from his previous senior roles at Discover Financial Services, HSBC, and Booz Allen Hamilton. | |
Christa S. Quarles Board | Lead Independent Director | CEO of Alludo | Christa S. Quarles has served on AFRM’s Board of Directors since 2018 and currently holds the role of Lead Independent Director since July 1, 2024. She brings extensive financial and leadership expertise from her active role as CEO of Alludo, as well as prior executive experiences at OpenTable and other companies. | |
Jacqueline D. Reses Board | Class I director | CEO of Lead Bank ; Board Member at Endeavor Group Holdings, Inc. ; Board Member at Nu Holdings Ltd. ; Board Member at TaskUS, Inc. | Jacqueline D. Reses has served on the Affirm board as a Class I director since January 2021 and brings extensive leadership experience across financial services and technology; she is also the CEO of Lead Bank since 2021. | |
Jeremy Liew Board | Member of Affirm's Board of Directors | Partner at Lightspeed Venture Partners | Jeremy Liew has served on Affirm’s Board of Directors since 2013, where he chairs the Compensation Committee and is a member of the Nominating and Governance Committee. He is also a Partner at Lightspeed Venture Partners since 2006 with extensive experience in technology investments and executive leadership. | |
Keith Rabois Board | Member of the Board of Directors | CEO of Miami Labs, Inc since 2021; Managing Partner at Khosla Ventures since January 2024 | Keith Rabois has served as a Member of the Board of Directors at AFRM since 2013. He is also the CEO of Miami Labs, Inc. since 2021 and the Managing Partner at Khosla Ventures since January 2024. | |
Manolo Sánchez Board | Class II Director, Board of Directors | Board Member at Fannie Mae; Board Member at Stewart Information Services Corporation; Adjunct Professor at Rice University's Jones Graduate School of Business | Manolo Sánchez serves as a Class II Director on the Affirm Holdings, Inc. Board effective November 1, 2023, and contributes his extensive experience in banking and finance. Previously, he was the president and CEO of Compass Bank, Inc. (2008–2017) and is an adjunct professor at the Jones Graduate School of Business at Rice University. | |
Noel Watson Board | Class I Director and Chair of the Audit Committee | Chief Financial Officer of LegalZoom.com, Inc. | Noel Watson has been serving as a Class I Director and Chair of the Audit Committee at AFRM since September 1, 2022. He brings a wealth of financial expertise from his current role as Chief Financial Officer of LegalZoom.com, Inc. since November 2020 and previous roles as CFO of TrueCar, Inc. and other leadership positions. |
- Given the noticeable increase in 0% APR loans, can you elaborate on how this strategy impacts your RLTC margin, and at what point might this margin dilution become unsustainable?
- Active customer growth has accelerated, but to what extent is this driven by promotional offers like 0% APR, and how sustainable is this growth without compromising your margins or credit standards?
- With your expansion into international markets such as the UK, how are you mitigating the significant upfront costs, and what specific metrics are you using to evaluate the success and profitability of these endeavors?
- Operating expenses have remained relatively flat, yet with ongoing investments in AI and technology, how do you plan to maintain operating leverage, and should we anticipate an increase in OpEx in the coming quarters?
- Considering the importance of credit quality to your capital partners, how are you balancing the need for growth with the necessity of maintaining low delinquency rates, especially as you consider taking on more risk?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Technology solutions provided by payment companies are primary competition. | |
Technology solutions provided by payment companies are primary competition. | |
Mobile wallets are primary competition. | |
Other pay-over-time solutions offered by companies are primary competition. | |
Klarna | Other pay-over-time solutions offered by companies are primary competition. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Butter Holdings Ltd. | 2023 | Affirm completed its acquisition on February 1, 2023, for a total consideration of $16.3 million, including $14.9 million in cash and a $1.5 million note settlement. The deal was accounted for as a business combination under ASC 805, acquiring key assets such as a £9.2 million lending license and generating $9.4 million in goodwill due to anticipated future synergies. |
Fast | 2022 | Affirm acquired Fast on April 19, 2022, for a purchase price of $25.4 million, which included $10.0 million in cash and forgiveness of a $15.0 million senior secured note. The acquisition was treated as an asset acquisition under ASC 805 with significant intangible assets acquired, including an assembled workforce and an option to purchase developed technology, both valued using the replacement cost method. |
Recent press releases and 8-K filings for AFRM.
- Affirm is enhancing investor transparency by ensuring clear communication and readily available support for both retail and institutional investors, emphasizing the clarity of its financial products (doc , doc ).
- The company sees substantial growth potential in the Buy Now, Pay Later market, currently capturing about 7.5% of U.S. e-commerce, compared to double-digit penetration in other regions, and has partnered with over 21 million Americans in the past year (doc ).
- Affirm is on track to achieve operating profitability by Q4 and sustain it, aiming to meet key criteria for potential S&P 500 inclusion (doc ).
- Affirm Holdings, Inc. filed an 8-K report on March 17, 2025, providing updates on recent events and relationship developments.
- The company noted that its integrated program with Walmart accounted for approximately 5% of its Gross Merchandise Volume and 2% of its Adjusted Operating Income for the six-month period ended December 31, 2024.
- Additionally, it was disclosed that OnePay, a fintech majority owned by Walmart, has selected competitor Klarna Group plc to offer installment loan financing to OnePay customers at Walmart later this year, while Affirm continues to serve Walmart customers through its integrated program and direct-to-consumer channels.
- Affirm reported $31B in GMV over 2024 with notable quarterly growth, including 35% GMV growth in Q2, showcasing a significant business transformation.
- The company aims to attain GAAP profitability on an operating income basis by the June quarter (Q4 fiscal), following its first positive GAAP net income in Q2.
- The Affirm Card, currently at 1.7 million cardholders, is a strategic focus with plans to expand to 20 million active users, supported by initiatives such as enhancing the app and partnering with FIS.
- Affirm secured a $4B capital commitment through a forward flow partnership with Sixth Street Partners, reinforcing its funding strategy and capacity.