Affirm has entered a significant capital partnership with the investment firm Sixth Street, which is set to invest up to $4 billion in the buy-now, pay-later service provider's loans over the next three years. This agreement further encompasses additional off-balance sheet funding, allowing Affirm to extend more than $20 billion in loans during this period while scaling its payment network. This milestone marks the largest-ever capital commitment Affirm has secured.
"Sixth Street's expertise in asset-based finance, long-term capital and collaborative approach make them an ideal partner for Affirm," stated Affirm Chief Capital Officer Brooke Major-Reid. She elaborated on the strategic alignment, noting, "Over the last several years, we have been extremely thoughtful in working with a diverse mix of world-class investors as we empower more consumers and merchants with our honest financial products." As of the end of September, Affirm reported a total funding capacity of $16.8 billion and boasts over 19 million active consumers.
"Affirm's ability to provide flexible, scalable financing solutions is unparalleled, and we see tremendous opportunity in this partnership," commented Michael Dryden, a partner at Sixth Street. He expressed enthusiasm about being a key funding partner for Affirm and anticipates further growth in this relationship to bolster the company’s future. In its latest fiscal first-quarter results, Affirm reported a net loss of $0.31 per share, an improvement from a net loss of $0.57 a year earlier.
The company saw a 41% year-over-year revenue increase, totaling $698.5 million. Affirm Chief Operating Officer Michael Linford remarked, "This partnership represents a major step forward in how we support Affirm's future growth plans as we continue to generate quality assets at scale by underwriting every transaction." Price: 68.58, Change: -0.19, Percent Change: -0.28 $AFRM.