Affirm Holdings reported fourth-quarter fiscal 2024 net revenue of $659.2 million, a 48% increase year on year, as gross merchandise volume climbed 31% to $7.2 billion, the buy now, pay later lender said in results published on 28 August 2024. The figures capped a full fiscal year in which revenue reached $2.32 billion.

The company also disclosed that its active consumer base expanded 19% year on year to 18.6 million as of 30 June 2024. Active merchants also rose 19% year on year to 303,000.

QUARTERLY AND FULL-YEAR RESULTS

Management noted that transaction frequency among existing consumers had risen alongside the addition of new users, a combination that the company said reflected deepening engagement with the platform.

Affirm's revenue model, which blends merchant fees, interest income, and gain on sales of loans, performed across each of those streams during the period, the company indicated in its earnings materials.

Transactions per active consumer rose to 4.9 in the fourth quarter, from 3.9 a year earlier. Affirm said its underwriting approach and credit performance had supported continued expansion of its lending activity throughout the year, although 30-day-plus delinquencies, excluding Pay in 4 and Peloton loans, rose slightly both year on year and from the previous quarter.

PATH TO GAAP OPERATING PROFITABILITY

Alongside the quarterly results, Affirm set out profitability targets. The lender said it expected to achieve GAAP operating income profitability in the fourth quarter of fiscal 2025, which management said reflected confidence in the scalability of its revenue base relative to its cost structure.

Affirm said it expected continued volume growth to contribute to the improvement in its operating margin over the coming year, without specifying a precise dollar figure for the projected GAAP operating income.

The company's fiscal year runs to 30 June, meaning the target quarter, the fourth quarter of fiscal 2025, covers April to June 2025. Management said it planned to operate the business in a manner designed to maintain GAAP profitability thereafter.