Affirm Holdings, Inc. reported significant financial developments for the third quarter of fiscal 2024, ending September 30, 2024. The company achieved total revenue of $698.5 million, marking a 41% increase from $496.5 million in the same period of the previous year. This growth was driven by a 35% rise in Gross Merchandise Volume (GMV), which reached $7.6 billion, supported by higher transaction volumes and an expanded active merchant base.

Merchant network revenue rose to $184.3 million, up 26% from $146.0 million in Q3 2023, while card network revenue increased by 42% to $47.5 million. Interest income also saw a substantial increase of 44%, totaling $377.1 million, correlating with a 34% rise in average loans held for investment, which reached $6.3 billion. The gain on sales of loans surged by 86% to $63.6 million.

Despite the revenue growth, total operating expenses increased by 18% to $831.1 million, leading to an operating loss of $132.6 million, an improvement from the $209.4 million loss reported in Q3 2023. The net loss for the quarter was $100.2 million, down from $171.8 million a year earlier, resulting in a net loss per share of $(0.31), improved from $(0.57).

Affirm's balance sheet showed total assets of $10.1 billion as of September 30, 2024, up from $9.5 billion at the end of June 2024. Cash and cash equivalents increased to $1.0 billion, alongside a rise in loans held for investment, which grew to $6.3 billion from $5.7 billion. The company also reported a provision for credit losses of $154.8 million, a 60% increase from the previous year, reflecting the growing loan portfolio and associated risks.

Strategically, Affirm has been optimizing its underwriting and loan performance management, including offering loan modifications for borrowers facing financial difficulties. The company continues to leverage its technology and data analytics capabilities to enhance its competitive position in the market.

In terms of operational changes, Affirm initiated a restructuring plan in February 2023, which included workforce reductions and office space optimization, contributing to a decrease in general and administrative expenses. The company remains focused on maintaining compliance with its funding agreements and managing its capital efficiently through diverse funding sources.

Overall, Affirm's performance in Q3 2024 reflects a robust growth trajectory, despite ongoing macroeconomic challenges and increased operational costs.