### Overall ConclusionThis quarter’s performance exceeded expectations, primarily driven by a comprehensive push across core businesses, resulting in the most profitable quarter in history (excluding tax releases).

### Key Data- Pay-in-X product grew 41% year-over-year- Service GMV doubled year-over-year- Revenue less transaction costs ratio stood at 4.16%, above the medium-term guidance range of 3.25%-4%

### Business ProgressCore highlights for the quarter: 1) Signed agreements with multiple large-scale service platforms, doubling GMV in the service vertical; 2) 30% of Affirm Card transactions came from offline channels, though optimizing the offline experience remains a key focus; 3) Positive feedback from both consumers and merchants in the UK market, with minimal competitive response; 4) The Edge banking cooperation platform is currently under technical construction, with a pilot expected in the second half of the year. These developments strengthen the network effect and lay the foundation for long-term growth.

### Guidance and OutlookManagement raised guidance for fiscal year 2027, expecting the revenue less transaction costs ratio to remain at the 4.16% level, primarily benefiting from capital cost optimization and a stable product mix. The GAAP tax rate is expected to be in the mid-to-high 20% range, though it may fluctuate due to factors such as equity-based compensation.

### Risk/Highlight SignalsPositive signals: Management’s tone was extremely confident, emphasizing the “network effect” and the ability to “control credit outcomes,” believing that growth will become easier as scale expands. Negative signals: No mention of macroeconomic risks, but a hint that credit tightening would be implemented immediately if necessary, reflecting vigilance toward potential risks.