Affirm Adapts to Changing Consumer Habits During Unprecedented Government Shutdown

Federal Workers’ Spending Shows Minor Adjustments Amid Shutdown

Despite the longest government shutdown in U.S. history, Affirm’s CEO Max Levchin reports no significant rise in credit difficulties among federal employees using Affirm’s services.However, there has been a slight reduction in their purchasing activity.

“We’ve noticed only a marginal decline-just a few basis points-in buying interest from federal workers,” Levchin explained during an interview on CNBC’s “Squawk on the Street.”

The shutdown has impacted roughly 670,000 furloughed federal employees and about 730,000 working without paychecks. this disruption extends beyond government staff; for instance,the supplemental Nutrition Assistance Program (SNAP),which aids over 42 million americans monthly,has also faced funding delays.

Tracking Economic Signals and Maintaining Credit versatility

Levchin highlighted that Affirm is closely monitoring employment data for any signs of wider economic stress but remains confident in its ability to adjust credit offerings as needed.

“at present, our operations are stable with no major interruptions detected,” he stated firmly.

Strong Financial Results Exceed Market Expectations

The company recently announced first-quarter fiscal results that surpassed Wall Street estimates by a wide margin. Affirm reported earnings of $0.23 per share on revenues of $933 million-well above analysts’ forecasts of $0.11 per share and $883 million revenue.

This robust outcome was fueled by a 34% year-over-year revenue increase alongside an impressive 42% growth in gross merchandise volume (GMV), which climbed to $10.8 billion compared to $7.6 billion during the same quarter last year-outperforming market expectations near $10.38 billion.

Optimistic Forecast Reflects Strengthening Market Position

The fintech leader raised its full-year GMV projection from $46 billion to approximately $47.5 billion as it continues broadening its presence across various e-commerce channels.

Diverse Collaborations Bolster Competitive Edge

• Amazon: Affirm extended its partnership through 2031, solidifying ties with one of the largest global online retailers.
• Shopify & Apple: The company sustains strategic relationships with these technology giants amid intense competition within digital commerce financing solutions.
• A Shift at Walmart: Earlier this year Walmart switched from Affirm to swedish buy now, pay later provider Klarna-a move reflecting changing preferences within retail financing partnerships following Klarna’s recent public listing despite ongoing global trade tensions and tariff uncertainties.

Evolving Consumer Trends Highlighted by Sector Growth Patterns

An increase in spending has been particularly noticeable within ticketing and travel sectors as consumers resume discretionary purchases following worldwide easing of pandemic restrictions-a trend supported by data showing active users on Affirm’s platform rising from 19.5 million last year to over 24 million today.

“Our core mission remains promoting buy now, pay later as an enhanced payment option-and consumer adoption continues validating this strategy,”

Affirm Stock Gains Momentum Fueled by Expanding User Base and Transactions

The company’s shares surged more than 11% immediately after earnings were released, signaling strong investor confidence driven by growing transaction volumes and increased engagement across sectors such as travel and entertainment purchases-a pattern reminiscent of how digital payment platforms accelerated post-2008 financial crisis recovery but amplified further due to pandemic-driven e-commerce expansion worldwide today.