Affirm Holdings (AFRM) Company Report

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

Affirm Holdings, Inc. Reports Strong Q1 2026 Results and Extends Amazon Partnership

AFRM

Earnings

Guidance Update

New Projects/Investments

Affirm Holdings, Inc. reported strong financial results for the first fiscal quarter ended September 30, 2025, with total revenue increasing 34% year-over-year to $933 million and Gross Merchandise Volume (GMV) growing 42% to $10.8 billion. The company achieved a net income of $80.7 million and Adjusted Operating Income of $264 million, representing a 104% increase year-over-year.
The company extended its US agreement with Amazon for an additional five years, commencing on February 1, 2026, and running through January 2031. In connection with this, a second amendment to the warrant was made, setting an exercise price of $63.06 per share for Warrant Shares that vest on or after February 1, 2026.
For fiscal Q2 2026, Affirm projects GMV between $13.00 billion and $13.30 billion and revenue between $1,030 million and $1,060 million. The company also provided a full fiscal year 2026 outlook, expecting GMV of more than $47.5 billion and an Adjusted Operating Margin of more than 27.1%.

Nov 6, 2025, 9:07 PM

8-K

Affirm Expands Capital Partnership with New York Life

AFRM

New Projects/Investments

Affirm has expanded its long-term capital partnership with New York Life.
Under the expanded agreement, New York Life will purchase Affirm's installment loans on a forward-flow basis, with an amount outstanding of up to $750 million between now and December 2026.
This off-balance-sheet funding is expected to support approximately $1.75 billion in consumer loan volume per year.
Prior to this latest expansion, New York Life had invested nearly $2 billion in Affirm collateral.

Oct 31, 2025, 1:00 PM

Press Release

Affirm Partners with FreshBooks to Offer Buy Now, Pay Later Options

AFRM

Product Launch

New Projects/Investments

Affirm has partnered with FreshBooks, a financial operating software for service-based small businesses, to integrate its pay-over-time options directly into FreshBooks Payments invoices.
Starting today, FreshBooks Payments customers in the U.S. and Canada can offer Affirm's flexible payment plans to their clients, allowing them to split eligible purchases into biweekly or monthly payments with rates as low as 0% APR.
Affirm does not charge any late or hidden fees.
This partnership aims to help small businesses drive overall sales, increase average order values, and reach new customers by providing clients with a preferred payment method.

Oct 16, 2025, 11:30 AM

Press Release

Affirm Expands Google Partnership Supporting Agent Payments Protocol

AFRM

Product Launch

New Projects/Investments

Affirm has expanded its partnership with Google to support the Agent Payments Protocol (AP2), an open, payment-agnostic standard for secure, agent-led financial transactions across digital platforms.
This collaboration integrates Affirm's buy now, pay later (BNPL) service with AP2, enhancing its presence in agentic commerce and working seamlessly with platforms such as Google Pay and Chrome’s autofill feature.
Affirm's BNPL model offers personalized pay-over-time plans starting at 0% annual percentage rate and is characterized by no late or hidden fees, promoting responsible borrowing.
Financially, Affirm has shown strong revenue growth of 25.4% over three years and a high gross margin of 67.51%, though it maintains a modest net margin of 1.62% and a debt-to-equity ratio of 2.56.

Oct 9, 2025, 1:28 PM

Morningstar

Affirm extends collaboration with Google

AFRM

New Projects/Investments

Product Launch

Affirm announced its support for Google's Agent Payments Protocol (AP2), an open, payment-agnostic protocol developed to securely support agent-led payments across platforms.
This collaboration extends Affirm's existing partnership with Google, which includes integrations with Google Pay and Chrome's autofill feature.
Affirm's contribution to AP2 aims to embed its Buy Now, Pay Later (BNPL) capabilities directly into the architecture of agentic commerce, offering consumers flexible, transparent pay-over-time options.

Oct 9, 2025, 12:01 PM

Press Release

Affirm Holdings Discusses Q1 and FY2026 Outlook, Growth Drivers, and Strategy

AFRM

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Affirm provided FY2026 guidance, setting a GMV floor of $46 billion (implying 25.5% year-on-year growth) and targeting 26% adjusted operating margins. For Q1 FY2026, the high end of guidance calls for 37% GMV growth and 43% revenue less transaction cost growth.
The company's direct-to-consumer (DTC) channels are significant growth drivers, with Affirm Card GMV growing over 130% in Q4 and monthly 0% loans growing over 90% in Q4, expected to be the fastest-growing loan product in FY26.
Key competitive advantages include transaction-level underwriting for every purchase, a broad spectrum of loan products (from $35 to $35,000, and terms up to 60 months), and a policy of no late fees.
International expansion is focused on the UK and Canada, with a recent launch in the UK with Shopify to capitalize on the demand for longer-term monthly installment interest-bearing lending.

Sep 23, 2025, 4:00 PM

Transcript

Affirm Holdings Discusses FY2026 Outlook, Growth Drivers, and Competitive Advantages

AFRM

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Affirm provided Q1 2026 guidance for 37% GMV growth and 43% revenue less transaction cost (RLTC) growth at the high end, with adjusted operating income margins of 23% to 25% and GAAP operating income margins of 1% to 3%. For FY 2026, the company projects a GMV floor of $46 billion (approximately 25.5% year-on-year growth) and aims for just over 26% adjusted operating margins (a 2-point expansion) and 6% GAAP operating income margins.
Key growth drivers include direct-to-consumer (DTC) channels, with Affirm Card GMV growing over 130% and monthly 0% loans growing over 90% in Q4. The company is also focused on international expansion in the UK and Canada with Shopify, and sees the expansion of Apple Pay Later to offline checkout as a significant opportunity.
Affirm emphasizes its competitive advantages, including transaction-level underwriting for every purchase, a broad product offering (from $35 to $35,000 and 6 weeks to 60 months), and a policy of no late fees, which contribute to strong credit outcomes and funding relationships.
While not using AI for underwriting to maintain explainability, Affirm leverages it for engineer productivity, merchant onboarding, and optimizing consumer loan offers. The company also notes that a 100 basis point movement in interest rates typically results in a 40 basis point change in revenue less transaction costs.

Sep 23, 2025, 4:00 PM

Transcript

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