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Peloton represents a huge part of Affirm’s revenue

Ines Ferré
·Senior Business Reporter
Updated ·2-min read

Payment platform Affirm (AFRM) relies on at-home fitness company Peloton (PTON) for a large part of its revenue with exercise at home a growing trend.

“Our top merchant partner, Peloton, represented approximately 28% of our total revenue for the fiscal year ended June 30, 2020 and 30% of our total revenue for the three months ended September 30, 2020,” states Affirm’s S-1 filing.

The reliance is listed as a risk should Peloton or any of Affirm’s top merchants see a decline in their performance.

The company’s filing states, “There can be no assurance that such trends will continue or that the levels of total revenue and merchant network revenue that we generate from Peloton will continue.”

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“The loss of Peloton as a merchant partner, or the loss of any other significant merchant relationships, would materially and adversely affect our business, results of operations, financial condition, and future prospects,” according to the filing.

Max Levchin, a Ukrainian computer scientist, poses for a portrait in San Francisco, Calif., on Friday, July 17, 2014. Levchin, who was the co-founder of PayPal and is the CEO of "Affirm", a financial services company offering consumer credit at the point of sale, and chairman of Glow, a women's reproductive health app. (John Green/Bay Area News Group) (Photo by MediaNews Group/Bay Area News via Getty Images)

Affirm went public on the Nasdaq on Wednesday. Shares soared 90% in the first minutes of trading.

The company reported revenue of $509.5 million for fiscal year ending June 30, 2020, compared to $264.4 million a year earlier, representing year-over-year growth of approximately 93%.

Affirm’s net loss shrank to $112.6 million for its latest fiscal year, compared to $120.5 million for fiscal year ending June 30, 2019.

The San Francisco–based payment company was started by PayPal (PYPL) co-founder Max Levchin in 2012.

In its filing the company said its payment platform allows “consumers to pay for purchases in fixed amounts without deferred interest, hidden fees, or penalties.”

“Since our founding in 2012, we have charged $0 in late fees for missed payments, we never profit from consumers’ mistakes, and we are transparent in our product offerings,” stated the filing.

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Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre

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