Affirm (AFRM) 2026 Evercore Global TMT Conference summary

Strategic vision and growth

• Pursuing a subsidiary bank charter to diversify funding and lower costs, focusing initially on funding rather than direct consumer products.

• Plans to vertically integrate loan originations and reduce reliance on partner banks over time.

• Sees significant long-term growth potential in the $1.3 trillion U.S. revolving credit market, with geographic expansion as a future growth vector.

• Current focus is on executing existing growth initiatives, with diversification and new products as medium- to long-term goals.

• Medium-term GMV growth target is at least 25%, with upside potential from international expansion and new programs like Affirm Edge and Agentic.

Risk management and underwriting

• Underwriting models are designed to rank order risk and predict repayment rates, with first payment delinquency as a key metric.

• Short loan durations (average five months) and small loan sizes ($250–$275) allow for nimble risk management.

• Ability to quickly adjust underwriting criteria, down payments, and loan durations in response to changes in consumer health or macro conditions.

• Repeat borrowers make up over 95% of transactions, with risk decreasing as the relationship deepens.

• Cash flow underwriting is being developed to further improve approval rates and risk assessment, especially for new users and merchants.

Funding and capital allocation

• Funding ecosystem is healthy, with recent ABS deals showing all-time low spreads.

• Willing to forego growth to maintain strong creditor relationships and funding terms.

• Capital allocation prioritizes organic growth and balance sheet strength; buybacks and M&A are considered but held to a high bar.

• M&A focus is likely to be tangential, either by product or geography, with past success in acquiring PayBright in Canada.