Affirm Holdings (AFRM) Company Report

Affirm's CFO, Rob O'Hare, highlighted the Affirm Card as the fastest growing and most profitable part of the business, with internal goals to reach $7,500 in spend per active cardholder and 10 million cardholders.
The company renewed its partnership with Amazon for another five years, extending through January 2031, with terms largely consistent with the current program.
Affirm achieved incremental margins north of 75% over the past couple of years, attributed to its software-driven approach to credit problems and focus on operating leverage.
The current capital allocation strategy prioritizes buying back 2026 convertible bonds at a discount, with future consideration for a share buyback program.
International expansion, particularly scaling the Shopify program in the U.K. and exploring Continental Europe, is identified as the most tangible future investment.

Dec 16, 2025, 5:00 PM

Transcript

Affirm Discusses Competitive Advantages, Strategic Partnerships, and Capital Allocation

AFRM

New Projects/Investments

Share Buyback

Guidance Update

Affirm highlights its competitive moat through broad product offerings (loans from $35 to $35,000 with terms up to 60 months), a transaction-specific underwriting model enabling nimble adjustments, and a policy of never charging late fees.
Strategic partnerships are key to growth, including the renewal of its Amazon program through January 2031 , scaling with Shopify in the U.K. , and collaborations with Google and FIS to expand the Affirm Card's reach.
The company is committed to driving operating leverage and improving its margin profile, with a 2026 RLTC take rate guide of 4%. Capital allocation priorities include the opportunistic buyback of 2026 convertible bonds and potential future share buybacks, alongside continued international expansion.

Dec 16, 2025, 5:00 PM

Transcript

Affirm Provides Update on Business Performance, Strategic Partnerships, and Financial Outlook

AFRM

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Affirm's business is performing in line with expectations for the calendar year Q4, despite third-party estimates showing "significant tracking error" for Affirm. The company reports that consumers are "quite healthy," with 96% of transactions from repeat borrowers last quarter, leading to lower default rates on subsequent loans.
The Affirm Card is identified as the fastest-growing and most profitable part of the business, with 80% interest-bearing transactions and internal goals of $7,500 spend per active cardholder and 10 million cardholders. The company also renewed its partnership with Amazon for another five years, extending through January 2031, with terms largely consistent with the current program.
Affirm's funding costs were down 98 basis points year-over-year in the September quarter, now in the mid-sixes. The company's revenue less transaction costs (RLTC) take rates have been above 4% for five out of the last six quarters, exceeding its long-term goal. Affirm is committed to driving more operating leverage in FY26 and plans for continued international expansion beyond the UK.

Dec 16, 2025, 5:00 PM

Transcript

Affirm Discusses Strong Holiday Trends, Card Contribution, and Margin Outlook

AFRM

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Affirm reported a positive holiday season, with its 0% loan business growing 74% year-over-year in the most recent quarter and many categories posting over 100% growth in 0% loans. The Affirm Card significantly contributed to the company's growth, accounting for 15 points of total GMV growth in Q1 and proving accretive to margins due to healthy interchange and a mix skewed towards interest-bearing loans from repeat users.
The company has exceeded prior adjusted operating margin outlooks and plans to provide an updated framework next year, citing incredibly high incremental margins and a largely underpenetrated U.S. market.
Affirm's latest ABS deal priced at the lowest average yield since 2022, reflecting a robust capital markets environment and strong demand for its assets. The company manages credit outcomes, projecting that a 50% increase in credit stress would result in only a 10% reduction in GMV by adjusting credit levers.

Dec 2, 2025, 9:55 PM

Transcript

Affirm COO Discusses Strong Q1 Performance and Strategic Growth Drivers

AFRM

Revenue Acceleration/Inflection

Guidance Update

New Projects/Investments

Affirm's 0% loan business demonstrated robust performance during the holiday season, with many categories experiencing over 100% growth in 0% loans and the number of participating merchants tripling to 40,000.
The Affirm Card significantly contributed to Q1 growth, accounting for 15 points of total growth and proving "pretty accretive to margins" due to healthy interchange and a high proportion of repeat users and interest-bearing loans.
The company achieved a strong 4.2% RLTC margin in the most recent quarter, supported by a diversified funding strategy that leverages both ABS programs and Forward Flow Partnerships amidst robust capital markets demand.
Affirm's COO indicated that a 50% increase in credit stress during a recession would result in only a 10% reduction in GMV, highlighting the company's ability to manage credit outcomes through various levers.
Affirm has surpassed its prior adjusted operating margin outlooks, with incremental margins occasionally exceeding 100% of revenue less transaction costs, and plans to release an updated framework next year.

Dec 2, 2025, 9:55 PM

Transcript

Affirm Reports Strong Q1 GMV Growth and Holiday Performance, Exceeding Margin Outlooks

AFRM

Revenue Acceleration/Inflection

New Projects/Investments

Demand Weakening

Affirm reported 42% GMV growth in the last quarter (Q1), with the Affirm Card contributing a significant 15 points to this growth, accounting for about a third of the total growth rate and exceeding prior expectations. The card also achieved a 12% attach rate, marking its highest growth quarter.
The company experienced a strong holiday season, with its 0% business shining and many categories posting north of 100% growth in 0% loans. These 0% loans are highlighted as a powerful, cost-effective marketing tool for merchants, with Affirm's offerings being truly 0% (no late fees, no deferred interest).
The Affirm Card is accretive to margins due to healthy interchange, a high proportion of repeat users, and a mix skewed towards interest-bearing loans. Affirm also noted a robust capital market environment, with its latest ABS deal pricing at the lowest average yield since 2022.
Affirm has exceeded its previous adjusted operating margin outlooks and expects continued expansion due to inherently high incremental margins. Management stated that in a recession with a 50% increase in credit stress, the business would see only a 10% reduction in GMV while maintaining controlled loss rates.

Dec 2, 2025, 9:55 PM

Transcript

Affirm Highlights Strong Holiday Season and Card Contribution

AFRM

Revenue Acceleration/Inflection

Guidance Update

New Projects/Investments

Affirm reported a strong holiday season, with its 0% business growing over 100% in many categories and the number of merchants funding these loans tripling to 40,000.
The Affirm Card significantly contributed to growth, accounting for 15 points of Affirm's total GMV growth in Q1 and engaging 30% of active users. The card is also accretive to margins.
The company achieved a 4.2% RLTC in the most recent quarter and has exceeded its adjusted operating margin outlook, noting "incredibly high incremental margins".
Affirm projects that a 50% increase in credit stress would result in only a 10% reduction in GMV, highlighting its ability to manage credit outcomes.

Dec 2, 2025, 9:55 PM

Transcript

Affirm Reports Strong Q1 FY26 Results and Provides Positive Outlook

AFRM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Affirm reported Q1 FY26 revenue of $933 million, a 34% increase year-over-year, and Gross Merchandise Volume (GMV) of $10.8 billion, up 42% from the prior year.
The company achieved a GAAP operating income of $64 million with an operating margin of 7%, and an adjusted operating income of $264 million with an adjusted operating margin of 28% for Q1 FY26.
Active consumers grew by 24% year-over-year to 24.1 million, while total transactions increased by 52%.
For Q2 FY26, Affirm expects GMV to be between $13.00 billion and $13.30 billion and revenue between $1,030 million and $1,060 million. The company also provided full-year FY26 guidance, projecting GMV of more than $47.5 billion and an adjusted operating margin of more than 27.1%.

Nov 6, 2025, 10:00 PM

Presentation

Affirm Extends Amazon Agreement and Provides Q2 2026 GMV Guidance

AFRM

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Affirm extended its U.S. agreement with Amazon for an additional five years through January 2031.
The company anticipates 0% monthly installment loans will continue to be its fastest-growing loan product, supported by strategic promotional events.
Affirm provided Gross Merchandise Volume (GMV) guidance for Q2 2026 in the range of $13 billion to $13.3 billion.
Operating leverage is being driven by an increase in revenue-less transaction cost dollars in the updated FY26 outlook, indicating growth rather than cost-cutting.

Nov 6, 2025, 10:00 PM

Transcript

Affirm Holdings Extends Amazon Agreement and Raises FY26 Operating Margin Outlook

AFRM

Guidance Update

New Projects/Investments

Earnings

Affirm Holdings extended its U.S. agreement with Amazon for an additional five years through January 2031.
The company's updated FY26 operating margin outlook increased to more than 7.5% (from over 6% previously), primarily driven by growth in revenue-less transaction cost dollars.
Affirm added 500,000 Affirm Card members in Q1 2026 and is testing cash flow underwriting to expand the card's reach, especially for younger consumers.
Management highlighted strong execution in the ABS and broader capital markets, expanding relationships with Blue Chip CLO buyers.
Affirm continues to aggressively lean into 0% loan offerings, which are expected to remain the fastest-growing loan product, and successfully utilized "Zero Days" promotions to drive merchant sales.

Nov 6, 2025, 10:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Affirm Holdings.

Q1 2026

Nov 6, 2025

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Q4 2025

Aug 28, 2025

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Q3 2025

May 8, 2025

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View All Transcripts

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Affirm Holdings (AFRM)

Analyst Earnings Quarterly Reports

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Executives

Max Levchin

Katherine Adkins

Libor Michalek

Michael Linford

Rob O'Hare

Board Members

Brian D. Hughes

Christa S. Quarles

Jacqueline D. Reses

Jeremy Liew

Manolo Sánchez

Noel Watson

Richard Galanti

Analyst Coverage

Dan Dolev

James Faucette

Robert Wildhack

Adam Frisch

Andrew Bauch

John Hecht

Kyle Peterson

Moshe Orenbuch

Reginald Smith

Jeff Cantwell

Matthew O'Neill

Ramsey El-Assal

Vincent Caintic

William Nance

Andrew Jeffrey

Daniel Perlin

Harry Bartlett

Jamie Friedman

Nate Svensson

Reggie Smith

David Scharf

Giuliano Anderes-Bologna

Jason Kupferberg

Joel Rykers

Kathy Chan

Kyle Joseph

Timothy Chiodo

Zachary Gunn

Adib Choudhury

Giuliano Bologna

James Friedman

Jill Glaser Shea

Matt Coad

Will Nance

Latest news

Earnings Transcripts

Q1 2026

Q4 2025

Q3 2025

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