Affirm Holdings (AFRM) Chief Financial Officer Robert O’Hare said Tuesday that the “consumer today feels quite healthy,” with no signs of stress within the buy now, pay later financing platform’s repayment rates.
Some 96% of Affirm (AFRM) transactions came from repeat borrowers who tend to have lower default rates, O’Hare said during a fireside chat. “So we’re in the fortunate position where we’re growing at really, really healthy rates, and we’re also doing it with consumers that we know pretty well, but also have done a good job, I think, of growing the consumer base every quarter as well.”
He added that delinquencies and repayment rates are coming in as expected. “We’re always staring at the credit data, the delinquency data, and we want to make sure that we’re really nimble and quick to adjust if we do see signs of stress, but it’s just — it’s not what we’re seeing in our loan book today.
AFRM shares rose to their highest in a month after management said it renewed its partnership pact with Amazon (AMZN) for about five more years. The stock ended Tuesday’s session up 12%.