The Trust Layer for Market Analysts

Affirm's consumer health remains strong, with no observed change in demand or ability to repay. Delinquencies are in line with expectations, driven partly by a reduced tax refund seasonality. Strong unit economics are noted, with the company capturing demand that delivered great returns. Credit continues to be a focus. Zesty capital markets demand reflects confidence in their approach to credit. The company increased capacity despite lower seasonal volume, and priced its third consecutive revolving ABS transaction at a favorable yield. Average annualized cost of funds reached a three-and-a-half-year low. The company has seen significant growth in active consumers and active merchants, increasing by 44% to 515,000. Active consumers grew 22% to 26.8 million. The valuation appears attractive, with a forward price-to-earnings ratio of 16.34 and a forward price-to-free cash flow ratio of 12.25, suggesting a potentially undervalued stock for investors with a higher risk tolerance.