Shares of the buy now, pay later provider Affirm closed nearly flat on Friday following the release of its fiscal fourth-quarter earnings report. Chief Executive Officer Max Levchin highlighted that elevated fuel costs are placing significant strain on consumers.

“American consumers are undoubtedly feeling the impact of rising gasoline prices, and this cannot be overlooked,” Levchin said. “People are also turning to our services to manage the cost pressures stemming from various inflationary factors.”

Data from the American Automobile Association showed the national average price for regular gasoline stood at $4.09 per gallon on Friday. While that figure has eased from levels above $4.50 in May, it remains substantially higher than prices seen before the onset of the conflict in Iran. The last time the national average dipped below $3 per gallon was back on March 2.

Levchin noted, “In this inflationary environment, we’ve observed a rise in demand for our services, as consumers are becoming more budget-conscious. They are spending more carefully, and we are able to provide them with the support they need during these times.”

The latest Personal Consumption Expenditures price index revealed a 12-month U.S. inflation rate of 3.7% for July. This metric, a preferred indicator for the Federal Reserve, rose 0.2% on a seasonally adjusted basis from the prior month. However, other data points suggest some degree of consumer resilience. Personal income increased by 0.4% in July, while personal spending advanced by 0.2%, with both figures surpassing market expectations.

These developments are adding pressure on the Federal Reserve and its chair, Kevin Warsh, as they prepare to finalize their next policy moves during the September meeting. Levchin remarked that while the consumer is in a reasonably good position overall, caution remains essential.

“I believe that sustained price pressures are not a positive development in the long run, and this is something we also cannot afford to ignore,” he said.

The fintech company released its fiscal fourth-quarter results after the market close on Thursday, reporting revenue of $1.17 billion, exceeding the Refinitiv consensus estimate of $1.11 billion. Affirm guided first-quarter revenue to a range of $1.19 billion to $1.22 billion, which is above the $1.16 billion analysts had projected. Gross merchandise volume also delivered a robust performance, reaching $14.1 billion, comfortably surpassing the StreetAccount forecast of $13.39 billion.