Lower purchase minimums helped lift transactions as the average order fell to $258.

Shares fell more than 9% after hours as analysts questioned the rise in delinquencies.

Affirm CEO Max Levchin expects more purchases to be financed with interest-free installment loans as consumers delegate shopping to artificial intelligence agents. He said agents comparing payment options could steer shoppers toward loans that spread out the purchase price without adding interest. Those plans accounted for 28% of Affirm’s gross merchandise volume in the September quarter. Interest-bearing loans accounted for 72%.

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“I expect 0% volume to go up a lot in agentic,” Levchin told analysts Thursday (Nov. 5).

The fiscal first quarter earnings call also drew questions about borrowers falling behind. Affirm shares fell more than 9% in extended trading after losing nearly 8% during the regular session. Revenue rose 35% to $1.3 billion, above analyst estimates, while the share of U.S. loan balances at least 30 days past due rose to 2.9% in September. That was up 35 basis points from June and nine basis points from a year earlier, excluding short-term Pay in X and Peloton loans.

Levchin attributed much of the quarterly increase in delinquencies to seasonality and said short loan terms limit how long Affirm is exposed if it gets underwriting wrong. Chief Financial Officer Rob O’Hare said a September test of loan approvals and originations increased the company’s provision for credit losses.

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