Affirm Holdings, Inc.

that at least you know it's a 0% loan. But for a large swath of consumers, actually 599 APR is extraordinarily compelling. It's way better than anything else they could get. And so when I say 0% in the letter, what we really mean here is consumers get the benefit of reduced APRs as merchants subsidize them. And doing that in real time price to perform on the credit side, on the capital market side, because these loans are purchased downstream by people who expect yields that are strong, whatever the deal the consumer got, and making sure that these are truly incredible for merchants. It's a massive multivariate problem, and we love math here more than just about anything else. I think most of our competitors just don't, and that's our strength. Our advantage is we live better through mathematics.

That's helpful. Thanks. And just quick on the guidance and the comment that the enterprise merchant will transition off in the fiscal second quarter. It's kind of an important time with the holiday season. It's a little in the weeds, but do you think that happens at the end or the beginning of that quarter? I guess I'm asking if you're going to get the holiday spend there or not.

The assumption in our outlook, Rob, is that that enterprise partner is wound down sort of going into the quarter. So by the end of this quarter, fiscal Q1.

Very helpful. Thank you. Thank you.

And our next question comes from the line of Kyle Peterson with Needham and Company. Please proceed with your question. Great.

Good afternoon, guys. Nice results. Thanks for taking the questions. I wanted to touch on the outlook and the take rate. It looks like it's going to be kind of fairly stable with at least the a run-rated 4Q level. I guess, does that imply that the product mix that we saw in the fourth quarter should be fairly steady, or are there any other take-rate impacts that we should be mindful of, like, for example, with the enterprise partner or anything that might influence some of these numbers as well?

Yeah, we've stopped short of guiding to mix specifically, but As you saw this quarter, monthly 0% loans were growing north of 90% year on year. So we would expect that that loan product in particular continues to take a bit of share within our mix. But otherwise, I think the most important thing for us is that the units we're creating are profitable and that we have funding plan and a mixed plan that allows us to sort of stay in that 3% to 4% RLTC range. And with the guide, we're expecting to be at the very, very high end of that range from a revenue-less transaction cost take rate perspective.

Okay. That's really helpful. And then I guess just a follow-up, following up on Will's question around funding, I want to ask, Are you guys seeing, just given that the funding environment is the best it's been in quite some time, have you guys seen any uptick in competition or irrational players that might be spoiling the water? If so, how are you guys dealing with that and continuing to grow while maintaining really solid credit?

For us, the quality of the credit isn't really a decision. It's something we constrain the business with and then we operate from that point. And that's not lost on our capital partners. Again, I think the reason why what I consider to be the best credit investors in the world want to partner with the firm and do is because of that commitment we've made to operate the business in a certain way. And we've done that not just when things are really good. We've done that back through all the turmoil you've seen over the past half decade. Our best investors see that. They recognize that, and they're attracted to it. Again, we think about these things as long-term partnerships. I think some of the behavior or concerns that you're alluding to would exist in people who are looking for just kind of more trade-y type relationships, one-time-y. And that's just not how we operate our business, so it's kind of far away from us. And again, when you think about choosing your partners, and we have the luxury of choice given our performance, Think about the partners we choose to do business with. Our team is really selective around partners who we know are going to be thoughtful and not get over their skis and chase anything away from them. I talk to partners and they share that they either were pursuing an opportunity and didn't get it because they weren't willing to pay up. Both of us are happy in those moments because I know that my partner is being disciplined and that discipline will benefit us in the long run. And I think there's just so much capital to go to work right now that it doesn't really give me any concern.

Great. Good to hear. Thank you, guys. Nice results. Thank you.

Our next question comes from the lineup, Andrew Jeffrey with William Blair. Please proceed with your question.

Hi, this is a deep chat around for Andrew. Thanks for taking our questions. We wanted to ask on the international strategy in the UK but also in other geos you might be looking at and kind of the opportunity for a firm to bring its underwriting product to the rest of the world. And then secondly, how the mix of GMB might look differently internationally kind of versus a firm's core domestic business.

Great question. I'm happy to report that we are in friends and family testing in the UK with our Shopify friends. It's very exciting, so that's obviously an enormous potential that is not lost on anyone. Obviously, we have merchants that we've taken live there and are excited to bring on a few more of our own, but Shopify is just an incredible partner in our growth, and we think we have it for them as well. So that's coming quite soon. The mix is... A little hard to tell in the following sense. We know that the market has tremendous appetite for paying three and paying four, which are traditionally zeros, because that's what the majority of the competition does the totality of their business in. But we also know that all the major merchants we've spoken with or signed have said, what we really need from you guys is longer terms. 6 months, 12 months, which obviously to a large degree will be interest-bearing. So as of right now, I think the mix that we have in the UK skews more interest-bearing than not. As we scale Shopify, that is absolutely subject to change just based on what this will do relative to what's available. So it's a little too early to make claims. We are absolutely going to be as mindful and as attentive to credit in the UK as we have been in the US and Canada. That's not an optional thing. We're not going to play it fast and lose whatsoever. But we feel very good about our ability to get the data we need to underwrite and also just to achieve the scale we need to make sure that the levers of control are useful. In terms of other geographies, I think we've been pretty transparent that we're not going to show you a map, but if we drew one, it would look like Europe.

Got it. And if I could ask a quick follow-up, can we just get a high-level update on the Apple Pay partnership and if there's anything kind of incremental to share there? Thanks so much.

We, as is our custom, do not talk about, generally speaking, individual partners, but in particular, we do not talk about wallet partnerships in any detail.

Thanks.

And our next question comes from the line of John Hetch with Jefferies. Please receive your question.

Afternoon, guys. Good quarter. And I'm looking at a globe, and I can't find anything that looks like Europe other than Europe. So thank you for that. New Zealand kind of looks like Japan.

Sorry.

Yes. A question on, I guess, customer engagement, you know, higher frequency of engagements. I guess as a customer seasons on the platform, do the dynamics or characteristics of their typical transaction change as they kind of mature?

That is a really good question. I don't know if I have a really thoughtful answer for you right now. The theory behind the card and things like Affirm Anywhere and all the other products we've built to gain frequency was largely that we are already understood to be a considered purchase helper. So if you're buying a bicycle or a mattress that's a once every any year type purchase, you obviously should use Affirm because you will probably find a great brand-sponsored zero or subsidized APR, all that. And so as we added more products, they were always meant to take the AOV down as the average. So we would be useful in more situations, more frequent situations. And that's generally speaking been the case. I think if you track our average ticket, you can sort of see a gentle downtrend even as the frequency increased, faster than the downtrend for sure, as we sort of grabbed onto more purchases just somewhat more frequent ones. So that's sort of the best I got off the cuff. I am sure we can publish something off cycle explaining what really happens. But needless to say, we are very happy with the increased frequency. We are not super fussy about AOVs. We don't think it's our job to make you buy two mattresses. We are answering demand that you naturally have versus telling you in any sort of promotional way to buy a mattress, buy another one. And so that means whatever natural average ticket, average spend the user has on any unit time, that's what we should have. We're still ahead of the averages if you look at things like debit cards, which is kind of our primary, debit cards and credit cards are our primary replacement goods or services. You will see that we're still ahead of them, but we're coming closer and closer. And we won't rest until we are a proper replacement for credit cards, of course. At that point, our AOV should be roughly the match to them.

Okay, that's very helpful. And then you guys provided the general framework to think about the impact of rising rates. I mean, the futures curve or the forward curve looks like there's a high probability of lower rates, so maybe can you guys give us a framework to think about the impact of lower rates on the business?

Yeah, great question, John. It should be generally the same rough mechanics that we outlined during the rising rate environment where a one-point move in reference rates should translate to about a 40 bps change in our funding costs. So that should be true whether the rates are going up or down. The other part of the framework that we shared previously, just for everyone, is that there will take time for those mechanics to play out because A portion of our funding is variable in nature, but the majority of our funding actually is not truly variable and will adjust with a time lag. So it may take a year or two or even longer for those rate changes to fully show up in our funding costs and in our platform portfolio base. So there's nothing to believe. There's nothing in our agreements with merchants or otherwise that would lead us to believe that we wouldn't see the same impact of a declining rate environment as a rising rate environment if you're looking purely at funding costs. I think the question that we make sure we ask internally is if rates are declining, why is that happening, right? And there could be offsetting impacts elsewhere in the business, you know, if rates were to decline because unemployment was rising or there was stress on the consumer, obviously that could lead to costs elsewhere in our base.

Okay. Thank you very much.

Thank you. And our next question comes from the line of Matt Code with Truist Securities. Please proceed with your question.

Hey, guys. Thanks for taking the question here. Wanted to go back to the 0% topic, but wanted to address it from the merchant side. So you talked about the number of merchants funding this offering doubling year over year. and I believe that's up to 7% of your total merchant base now that's funding the 0% APRs. I'm curious, like, as we look forward, what you think that penetration rate can get to.

It should round up to almost 100. There are, and I'm prone to some hyperbole with numbers, and Rob is laughing at me, but the, here's what I really mean by this. So, Merchants are broadly divided into a handful of categories, but one way to do it is to think of the margin they spend on marketing. My contention is that marketing budget is at least as well spent at the bottom of the funnel as it is at the top. If you're broadcasting a story of why somebody should come shop with you, you're frequently doing it in terms of Going out of business sale, hopefully not, but more like 20% sale or a Christmas sale. So the sort of sales-driven consumer acquisition is a little bit of a hand grenade approach to trying to make sales. At the very bottom of the funnel or at the product exploration level of the funnel, you can be much more precise. And with our technology such as Adapt AI where we offer consumers the exact same or our estimation of exact financing offer that would compel them to buy is just much cheaper for the merchant. They would spend a lower percentage of their marketing budget, if they thought of it this way, at the bottom of the funnel. The adoption curve of these tools, the 0% APR contract, is entirely a function of these merchants realizing that the marketing money they're spending is better spent on such promotions at the bottom of the funnel versus the blanket coverage at the top of the funnel. And every year we're just doing slightly better, making sure this is convincing, everything from showing them results and or working with them to test this. publishing white papers, educating our salespeople, helping them educate their internal accounting people, etc. So at the limit, I think every single merchant will benefit from these programs. There are merchants whose margins are quite low naturally, and they spend very little of the overall GMV marketing themselves, maybe because they're already at scale, maybe because they just have an alternative distribution model. That will be the last holdout. But generally speaking, this is a more efficient way of driving sales it is apparent to a large enough body of GMV producers that it will eventually trickle down to the rest of the bunch. So that's my conviction, and I'm standing by it, and every year we have more and more zeros to show for it. It will keep happening until morale improves.

No, thanks, Max. If I could just sneak in a follow-up, Max, you would Address this in the shareholder letter. You touched a lot on AI. I was hoping you could just talk about it on the call here too, just kind of like how you're thinking about the future for agentic commerce and a firm's role in it.

It's in the letter. I tried to boil it down to be relatively pithy, so you're tempting me to give the longer form that Michael successfully talked me out of. putting in, but the letter speaks to it pretty well. We think that agentic commerce is going to be extremely successful for some categories of transactions. It may not be super successful for all of them. Many transactions require final human approval just because they have to do with taste, kind of the unstated Weakness of today's state of AI is it's fundamentally taste-free. It doesn't know what's beautiful. It certainly doesn't know what's beautiful to you. A lot of purchases are made with taste as the front and center of the why. But the need to finance beautiful things or things that you require isn't going away. So inherently, we will be in those transactions just like we have been able to find our way into all the other ones. The thing that's compelling for us about agentic commerce in particular is fundamentally a rehashing or remixing of e-commerce as it exists before AI. You can imagine, you know, the conversation about universal carts has been around forever and no one's ever really built the universal cart of any kind of scale. Universal Shopping Cart is very much what's going to happen inside these chatbots if you are to close these transactions from multiple brands, multiple stores, multiple warehouses in the same chat session. And so this idea of remixing e-commerce is what I think a successful, certainly successful first act, maybe all the acts of agenda e-commerce looks like. We are built to be mixed into all environments. You see us pop up in places like Shop Pay Installments, which is a really deep integration. We are a component of someone else's wallet. You see us inside Chrome Autofill, which is a completely different integration, but not actually very different from our point of view because our services work in that environment. Very different environment, very similar integration. almost identical consumer experience as far as Affirm is concerned. You will see versions of this in agenda commerce as that rolls out as well, and we're pretty excited about it. I'm generally a techno-optimist, so you should be careful what you believe with my rose-colored glasses on, but I don't think it's going to cannibalize commerce at a fundamental level. I think it's actually going to increase volume for a lot of merchants. I think we will find that some things are still going to be purchased the old way, and other things are just going to become naturally more obvious inside of an assisted or assistant-driven transactions, and we're going to be here for all of it.

Really helpful. Thank you.

Thank you. And our next question comes from the line of James Fawcett with Morgan Stanley Investment Management. Please proceed with your question.

Hey, good afternoon, everybody. I wanted to ask on the PSP integration, pretty interesting announcement of BNPL with Stripe Terminal. I think there's potential for that or similar type announcements to be made with other payment service providers. I'd be curious if there's any framing you would provide in terms of how important you think the PSP channel will be for your business Particularly when we think about the the business overall excluding Amazon and Shopify and as a way to add additional Merchants and how do you intend to lean into that channel etc?

Good question Generally speaking offline is still kind of the green field of buy now pay later the Fraction of online to offline is still whatever it is these days, 10 to 1, 8 to 1. So there's a lot more there than inside e-commerce, and yet Binoculator is a minute fraction of that world because the integrations are just difficult. And discovery is hard. Placement of you should think of this in more affordable terms, sort of messaging prompting at the product level is difficult. It's important. It's important insofar as when we go to talk to a merchant that has a large offline presence, talking to them about, let's promote something together, and let's integrate something together, are two conversations. Being able to say, actually, we don't have to worry about the latter. It's already built into your point of sale processor. Let's just talk about the promotional details and how we're going to advertise the opportunity to finance things without fees, frictionlessly, without gimmicks, makes the conversation easier because now you are talking about that marketing budget and discussing it with just one part of the retailer versus a whole separate IT environment that says, well, sure, we'd love to do it, but our roadmap is busy until 2030. So in that sense, it's a huge boost. It's an enabling technology, not a now that we have it, every offline partner is just going to fall into our lap.

So the work isn't eliminated, but it's meaningfully reduced.

Got it. That's really helpful.

And then just a quick clarification on 0%. I certainly understand and think that it's the push there and the benefits you get are pretty clear. But I'm wondering, in terms of the shorter duration of 0% that you called out and how that evolved during the course of the June quarter, is that a seasonal thing? Is that just an expansion of availability, a change in the type of

customers that are eligible and opting for 0% just trying to get a little bit of color how to think about that component on a go-forward basis thanks yeah thanks for the question James I think the answer really was in the question it was it was really a mix of both we do have seasonality in our business generally but certainly seasonality within our 0% programs and that showed up a bit as well especially when you're comparing maybe across q3 and q4 And then also, when we introduce zeros to a new merchant, one of the ways that we can do that is by making the shortest term that's presented in the financing program a 0% offer. And so that has the natural output of shortening term lengths for that merchant's program as well. So it really is a range of things that were at play in this quarter. And I think it speaks to the flexibility and just our ability to customize across multiple surfaces, term length, and APR to make sure that we're putting the best program together for our merchants and for consumers.

Great. Thanks so much, guys. Have a good day.

Thanks. Thank you. And our next question comes from the line of Reggie Smith with J.P. Morgan. Please receive your questions.

Good evening, guys. Thanks for taking the question. It's funny, I wanted to follow up on the question that James just asked, but take it in a slightly different direction. So I'm thinking about PSPs, you know, primarily online, so e-commerce, not named Shopify. Is there a way to kind of frame – how do you guys think about your penetration within that channel and, I guess, the maturity of that channel? So, like, if you were to look at the volumes in that segment – Are they growing faster than the line average, slower? Like help, you know, kind of frame that channel for us to the extent that you can. And then, you know, whether or not you guys often have default on status or how that works. And then my last question, just a follow-up to that, is just quickly on that merchant that's leaving in the into the first fiscal quarter, is the thinking that your logo will still be available on the website, or has that changed at all?

Thank you. I'll start and let Rob finish, just because I think you're asking about assumptions in the guide. On the PSB side of things, we're pretty early there. Obviously, default on is a really important, really powerful thing. We have multiple partnerships of this manner with PSPs not named Shopify, and we're working pretty hard on expanding the list and being default on. I don't have the growth rates off the top of my head, so I don't want to perjure myself here, but I think they are accretive to the growth rate of the business, not detracting. but I will let Zane or Rob look this up. And if I'm wrong, I'm sure they'll correct me soon enough. But I'm pretty sure I'm right on this one. So it's a really important channel. It's pretty early. If you just follow our announcements, you'll see that these are significantly more recent than, for example, the Shopify announcements. So just from the pure scale and time to penetrate, these are later comers, and there's more to be had there. All of that we think accretes to the future growth. The merchant sets are a little bit different sometimes. Obviously Shopify has an extremely broad appeal, but even they have some degree of this is the canonical Shopify merchant. The same is true for every other platform, or aggregator, or payment processor, etc., etc. So each one gives us access to something that we probably haven't seen before to at least some degree. I think that's all I want to say. Yeah, and in terms of the question around the merchant, I think the easiest way to talk about the relationship is just to outline what's in our outlook, and what we've assumed in the outlook is that the integration goes away at the end of this quarter, and so it's unclear exactly what the mechanics will be of how the relationship plays out, but that's what we've assumed, and we think we've taken a pretty conservative stance in terms of volume in fiscal 26 coming from this merchant.

Got it. Not to belabor it, when you say go away, does that mean zero volume from that merchant or that net will go away? What does that mean exactly?

What we've assumed in the outlook is that through the integration, there would be zero volume after. Got it.

Got it. Okay. Thank you. Thank you.

And our next question comes from the line of Harry Bartlett with Rothschilds and company Redburn. Please receive it, your question.

Hey, guys. Thanks for taking the question. I just wanted to touch on international again. So, I mean, I was just thinking about short payings. We talked about going to UK. But, you know, in terms of how quickly you can roll that out into other geographies. Is it now a case of you have a playbook and then you'll be able to kind of move a bit faster if you're looking to move in other areas of Europe? And also, I guess, just outside of shop, you know, do you have any, I guess, difference in your approach to how you're going to expand internationally? I guess I'm just coming from the point of, you know, brand awareness maybe isn't quite as strong as it is in the US and there are some incumbent players at checkout. So I just, you know, an approach here on maybe the sales, marketing, or consumer awareness. Thank you.

I'll try to touch on all these things as quickly as I can since there's a lot here. So the short answer to your first question is yes and no concurrently. So in terms of the platform build and a lot of the technology, it is certainly built to be reusable. We're not going to launch UK and go off and do build another completely different system to be live and fill in your favorite European country. That's all reusable and designed to be reusable, etc. We're also not too concerned about spinning up technological or data center presence in AWS. They exist in every market. The different things that are different about every market is access to data, some of the peculiarities of local regulation and then also local licensing is really important. So some things you can infer pretty easily about how might one approach to not having to do double and triple work on licensing or following regulatory regimes. So you can be assured that we're doing all those things as intelligently as we can. but there's some work involved even if you are as intelligent as you can possibly be with all those things. So that part, I think we're in really good shape. We don't expect to go off the radar for too, too long, and we'll have more to say about it in the coming quarters. Things like Apple markets is not a concern, just for the ones of doubt. In terms of sales and marketing, We've said it before, so this shouldn't be news to anybody, but we have a nice list of multinational partners, partners that are with us in the US or Canada or UK who are multinational and are, generally speaking, very pleased with our performance. We think we have a very good shot at talking those folks into being useful to them in more than one market. We've been successful at it between the US and Canada certainly, so I see no reason why with the appropriate level of attention and good hygiene we couldn't do this again. So that's the expansion plans for kind of these lighthouse brands. We don't anticipate a dramatic investment in our brand in the US or UK or beyond. mostly because we market very successfully with our partners and the majority of the marketing spend in our financials reflects the go-to-market efforts we share with our merchant partners where we come together in all sorts of interesting promotional ways. So we'll do that. We have some pretty exciting plans for that in our latest market. I don't want to spoil any surprises just yet, but that's certainly coming. It will not break our bank by any stretch, so it's all fully priced into the guide.

That's great. Thank you. Thank you.

And our next question comes from the line of Jamie Friedman with SIG. Please proceed with your question.

Hi. Back to the AI conversation. I know, Max, you want to keep it pithy, but I want to ask specifically about what you call it here in adaptive checkout and specifically the adapt AI deployments that show an average 5% increase in GMV. What is that about? Can you, like, unpack the business process of how that works?

Sure. And we are not the best at naming products here, as we were lamenting earlier today internally, so you'll have to forgive the repetitive sounding names. So Adaptive Checkout is the umbrella name of all the various manifestations of how checkout at Affirm works. So if you encounter an Affirm Power Checkout, Affirm Checkout inside a wallet, Affirm Checkout inside a websites directly integrated, so on and so forth, it's all powered by this thing called adaptive checkout. And it wasn't always this way. We had a bunch of different builds of a firm checkout flow. And over the years, we generally have a tendency to refactor and rewrite a bunch of our products because we think it's just good hygiene. So as we maintain good hygiene, we've over time consolidated into almost a single thing with lots and lots of very thoughtful configurability pieces. Until Adapt AI came along, most of this configurability was essentially manual in a sense that we would sign a contract with a merchant. The merchant would say, here are the terms I want. Here are the programs I'm willing to fund, and I would like a lot of control over when I turn them on and turn them off. And of course, we're very happy to oblige because a huge part of our moat is this configurability is very powerful for the merchant, but it's also not replicable with any of our competitors. Adapt AI was sort of the answer to the question of, all right, so we've now built this thing that's the ultimate mousetrap of optimization of checkout, but there's a lot of human effort involved in getting to the best results, and it's not really... There's not a book we've published on best practices of tuning adaptive checkout for merchants, and we should. And then we say, well, actually, we have this really great AI ML effort. Why don't we, instead of writing a book about it, build a model that automatically figures out the absolute best way of converting consumers at an Affirmed Power checkout? And while we're at it, let's try to transition a lot of our merchant relationships, or any or all of them if we could, to something that looks like we will take care of all the optimization. Let us figure out the best set of programs for any given consumer as they are staring at a cart or a product on your site or in your store, and we will take care of the rest. We will convert them to a buyer from a shopper, at the best possible terms for them that is compelling to them. Not everybody wants a 0% deal. Many people actually really care about the monthly cash flow impact, and they're far less APR sensitive or total interest sensitive. Many people are extremely headline APR sensitive, and you can sort of slice and dice it from there. Tuning that manually works beautifully. Tuning that automatically is an extraordinary improvement. And the 5% is a great early result. We expect more, and we'll certainly brag about it as we get there. But Adapt AI is AI-powered configuration of adaptive checkout, and that's what we... We talked about rolling it out last quarter. We've rolled it out with select merchants now. Obviously, we are asking for more control from the merchant. We're telling them, look, if you just give us... the ability to tune for each individual consumer what they see. It will cost you less, and it will convert into more volume. It will take a little while for everyone to sign up for that, but the ones that have are enjoying the benefits early, and we're tuning the models more and more as we go.

Fascinating.

Thank you. I'll jump back in the queue. Thank you.

And our next question comes from the line of Juliano Malona with Compass Point. Please proceed with your question.

Thanks for your questions and congratulations on another incredible quarter. As a question, and this is somewhat of a high-level concept, but I'm curious when you look at a lot of the wallet partnerships, if there's kind of a new frontier where you you know, some of the wallet partnerships to enable offline transactions in the future and, you know, how you would plan for that and how, you know, material that could be in terms of, you know, driving incremental GMV growth. And then maybe how you think about the underwriting because you have an interesting opportunity, you know, to continue to differentiate and, you know, increase your, your lead, you know, ahead of your competitors with a product like that.

Yeah. Um, I'm certainly very excited about offline commerce. I'm on the record talking about that every quarter I think. I think if you look back at some of the announcements made by some of the largest wallets out there, you will see that they too are excited about offline applicability of the products that Affirm offers. So some of that is in the near future. We try to be, as always, conservative in our sort of promises and degrees of excitement about things that aren't live yet. So I'll hang back on the sort of exactly what we expect from it. But I think the opportunity is enormous. I think, and sort of covered this in a little bit in an earlier question, but there are two very distinct puzzles. Number one is how do you inform someone that this thing, this thing being a firm, works in their favorite store? We have some We think really good ideas on how to do that. You'll see some of them actually quite soon on our own surfaces. But there's also the problem of integration and what in payments nerd slang is called tender delivery. Tender delivery is integration with point of sale systems, digital wallets, various forms of NFC. All of that's on our radar. All of that is really important to us and we're quite engaged in all those things. Greenfield size is roughly 10x of what we're chasing in e-commerce. If you believe we can solve the latter problem, which we're very confident in, it becomes a question of how well can you communicate it and how aggressive can you be in communicating it to shoppers from the brand point of view, which I think asked five years ago, some of them would have been wondering if someone might go first. I think at this point it's flipped to actually it should be promoted because it's so successful in driving conversion. One fun fact, we see increase in demand for Affirm any time anyone in the industry runs a large promotional campaign. Just the notion of, oh yeah, buy now, pay later is available, accretes to Affirm naturally, even if we're not the ones putting our name on the ad. So it's just a matter of awareness more than it is anything else in the offline world.

That is extremely helpful, and I really appreciate that. I'll jump back in, too. Thank you.

And with that, there are no further questions at this time. I'd like to turn the floor back to Zane Keller for closing remarks.

Thank you for the questions today, everybody. We'll see many of you on the conference circuit soon, I'm sure. Have a good Labor Day weekend, and talk to you soon.

Bye. Thank you. And with that, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.