Affirm Holdings shares closed nearly unchanged on Friday after the buy now, pay later company reported better-than-expected fiscal fourth-quarter results, but CEO Max Levchin warned that persistently high gas prices remain a burden for U.S. shoppers.
“The U.S. consumer undoubtedly sees the higher gas prices, so can’t, can’t ignore that,” Levchin told CNBC’s “Squawk Box.” “They’re also coming to us to help manage those prices across all the various inflationary points.”
Gas prices still elevated
The national average price for a gallon of gas stood at $4.09 as of Friday, according to AAA data. While that is down from May, when prices climbed above $4.50, it remains well above pre-Iran war levels. The national average last dipped below $3 on March 2.
Levchin framed the situation as a double-edged sword for Affirm. On one hand, inflation tends to drive more demand for installment lending as consumers budget more carefully. On the other, sustained price pressure poses a long-term risk.
“In times of inflation, we see more demand because folks are budgeting,” Levchin told CNBC. “They’re more thoughtful about how they want to use the money, and we’re there to help.”
Still, he added, “I do think that sustained pressure on prices isn’t great in the long term, and so can’t ignore that either.”
Inflation backdrop
The annual inflation rate sat at 3.7% in July, according to the latest personal consumption expenditures price index figures. The PCE — the Federal Reserve’s preferred inflation gauge — rose a seasonally adjusted 0.2% in July.
Other data points showed some resilience in the consumer picture. Personal income rose 0.4% in July and spending increased 0.2%, with both figures coming in stronger than expected. The data lands ahead of the Fed’s September policy meeting, where Chairman Kevin Warsh and his colleagues will decide on their next move.
Quarterly results beat estimates
Affirm reported fiscal fourth-quarter revenue of $1.17 billion after the bell on Thursday, topping the $1.11 billion LSEG consensus estimate. The company guided to fiscal first-quarter revenue of $1.19 billion to $1.22 billion, also ahead of the $1.16 billion Street expectation.
Gross merchandise volume was a standout at $14.1 billion, easily beating the $13.39 billion StreetAccount forecast.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/28/affirm-stock-earnings-levchin-gas-prices.html
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