Affirm Posts Flat Q4 Results as Gas Prices Pressure Shoppers

Affirm Holdings Inc. announced its fiscal fourth-quarter earnings on Friday, with the company’s shares ending the session virtually unchanged. The earnings release came as the buy-now-pay-later firm highlighted the impact of elevated fuel costs on consumer spending.

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Chief executive Max Levchin explained that the “higher gas prices” are a visible factor for U.S. shoppers and cannot be ignored. He added that, in an inflationary environment, consumers become more deliberate with their budgets, prompting increased demand for flexible financing options like those offered by Affirm. Levchin’s remarks were delivered during an interview on CNBC’s “Squawk Box.”

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According to the American Automobile Association, the national average price for regular gasoline stood at $4.09 per gallon on the day of the interview. This figure follows a peak above $4.50 in May and remains well above pre-Iran-war levels. The last time the average fell below $3 was on March 2. Levchin suggested that, despite these costs, shoppers are still seeking ways to manage expenses across “all the various inflationary points.”

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• “The U.S. consumer undoubtedly sees the higher gas prices, so can't, can't ignore that,” — Max Levchin, earnings and CEO

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• “In times of inflation, we see more demand because folks are budgeting,” — Max Levchin, earnings and CEO

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These statements encapsulate the company’s view that rising fuel prices are reshaping consumer budgeting habits and driving demand for its financing solutions.

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